Endeavour Silver Corp. (NYSE:EXK) Q3 2024 Earnings Conference Call November 5, 2024 1:00 PM ET

Company Participants

Allison Pettit - Director, IR
Dan Dickson - CEO
Don Gray - COO
Elizabeth Senez - CFO

Conference Call Participants

Heiko Ihle - H.C. Wainwright
Nick Giles - B. Riley Securities
Nicholas Clarke - TD Cowen
Jake Sekelsky - Alliance Global Partners
Stephen Soock - Stifel

Operator

Thank you for standing by. This is the conference operator. Welcome to the Endeavour Silver Corp’s Third Quarter 2024 Results Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. [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 CFO, 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, Alison, and welcome, everyone. It's been a busy third quarter at Endeavour Silver. As gold reached new all-time highs, and with silver starting to fall, the company's cash flow and financial position should continue to benefit from these higher prices. From an operational standpoint, Q3 brought an unexpected challenge as the company operated at reduced capacity due to a trending failure of the primary ball mill at the Guana City mine.

Temporary modifications were completed in August, allowing processing to continue at roughly 50% of capacity. The estimated timeline back to full capacity remains at 15 weeks, with the mine being in full operation next month. I would like to extend my thanks to our operations team for their dedicated efforts in mitigating the issue.

Q3 silver equivalent production totaled 1.6 million ounces, or 875,000 ounces of silver and 9,300 ounces of gold, tracking well towards the updated 2024 production guidance of 7.3 million to 7.6 million silver equivalent ounces.

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 we expect the production profile in the fourth quarter to be similar to Q3. At Terronera, substantial progress was made during the third quarter. Surface construction reached 77% at September 30th, with more than $258 million spent to date. The finish line is in sight as Terronera continues to remain on track for commissioning near the end of the year, and we are excited to have this transformative project added to our production profile in 2025.