Why Precious Metals Mining Company Endeavour Silver Shares Are Higher Today

Endeavour Silver Corp. EXK shares are trading higher after the company reported fourth-quarter FY23 results.

Revenue declined 38% Y/Y to $50.5 million, beating the consensus of $49.47 million. Silver oz sold fell by 53% Y/Y, and Gold oz was down 20% Y/Y.

Adjusted EBITDA fell to $9.57 million from $23.4 million a year ago. Adjusted EPS was $0.02 (-50% Y/Y), above the consensus loss of $(0.02). 

Mine operating earnings were $5.4 million, down from $21.7 million in the fourth quarter of FY22.

Operating cash flow before working capital changes stood at $9.79 million in the quarter. Mine operating cash flow before taxes declined 59% Y/Y to $12.6 million.

Endeavour Silver’s cash position stood at $35.3 million, and working capital was $42.5 million as of December 31, 2023.

Dan Dickson, CEO of Endeavour Silver, said, “From a cost perspective, all Mexican miners faced overarching challenges, with persistent cost pressures across various channels. Our operations team demonstrated their resolve to overcome a significant challenge at Guanacevi, by elevating both mine and mill productivity levels above planned targets.” 

“With operating costs at their peak, we remain focused on cost discipline to offset inflationary and foreign exchange pressures while improving productivity. Bringing Terronera into production in late 2024 will provide the base we need for significant production growth and margin expansion as we move down the cost curve.”

Price Action: EXK shares are up 14% at $2.15 on the last check Monday.

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