Endeavour Silver Corp. (NYSE:EXK) Q2 2024 Earnings Conference Call August 1, 2024 1:00 PM ET

Company Participants

Allison Pettit - Director of Investor Relations
Dan Dickson - Chief Executive Officer
Elizabeth Senez - Chief Financial Officer
Don Gray - Chief Operating Officer

Conference Call Participants

Jake Sekelsky - Alliance Global Partners
Lucas Pipes - B. Riley
Craig Hutchison - TD Cowen

Operator

Thank you for standing by. This is the conference operator. Welcome to the Endeavour Silver Corp. Second Quarter 2024 Financial Results Conference Call. As a reminder, all participants are in a listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask question. [Operator Instructions]

I would now like to turn the conference over to Allison Pettit, Director of Investor Relations. Please go ahead.

Allison Pettit

Thank you, operator, and good morning, everyone. Before we get started, I ask that you view our MD&A precautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our MD&A and financial statements are available on our website at edrsilver.com.

On today's call, we have Dan Dickson, Endeavour Silver's CEO; Elizabeth Senez, our Chief Financial Officer; and Don Gray, Endeavour's COO.

Following Dan's formal remarks, we will open the call for questions. And now over to Dan.

Dan Dickson

Thank you, Allison, and welcome, everyone. It's been a productive second quarter at Endeavour Silver as gold reached new all-time highs and with silver starting to follow the company's cash flow and financial position should continue to benefit from these higher prices.

At Terronera, there was significant advance of the upper platform surface infrastructure and the overall project progress reached 65% at June 30. Terronera is on track for commissioning in Q4 2024, and we're excited for it to contribute to our production profile next year and become a cornerstone asset.

Q2's silver equivalent production totaled 2.2 million ounces or 1.3 million ounces of silver and 10,500 ounces of gold. We are in great position to meet the upper range of our 2024 production guidance.

Silver equivalent grades have been in line with expectations, with gold grades slightly higher and silver grades slightly lower. This is expected to be similar going forward, and therefore, we expect a similar production profile for the second half of the year.

We reported top line revenue of $58 million, up 17% year-over-year due to higher metal prices compared to Q2 2023. Cost of sales totaled $48 million, up 28% from Q2 2023 due to the strength in Mexican peso contributing to higher labor, power and consumable costs and continued inflationary effects from 2023 that flowed into 2024.