🕐10.05.10 - 17:20 Uhr
Endeavour Silver Reports Higher Earnings, EBITDA, Revenues in Q1, 2010; Silver P
roduction Up 34%, Cash Costs Down 15% Compared to Q1, 2009
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Re: News - Monday, May 10, 2010
Endeavour Silver Reports Higher Earnings, EBITDA, Revenues in Q1,
2010; Silver Production Up 34%, Cash Costs Down 15% Compared to
Q1, 2009;
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Vancouver, Canada - May 10, 2010 - Endeavour Silver Corp.
(TSX: EDR,
NYSE-Amex: EXK, DB-Frankfurt: EJD) announced today its financial and
operating results and unaudited financial statements for the First
Quarter, 2010.
Endeavour owns and operates two high-grade,
underground, silver-gold mines in Mexico, the Guanacevi Mines in
Durango State and the Guanajuato Mines in Guanajuato State.
The financial results are expressed in US dollars ("US$") and are based
on Canadian generally accepted accounting practices (Canadian "GAAP").
Shareholders are referred to the Companys website for more details:
First Quarter, 2010 Financial Statements -
http://www.edrsilver.com/s/FinancialStatements.asp and Management
Discussion and Analysis ("MD&A") - http://www.edrsilver.com/s/MDA.asp.
First Quarter 2010 Highlights (Compared to Q1, 2009)
• Silver production climbed 34% to 766,210 ounces (oz)
• Gold production jumped 62% to 3,775 oz
• Silver equivalent production rose 31% to 1,011,569 oz
(65:1 silver: gold ratio, no base metals)
• Cash costs fell 18% to $6.39 per oz silver produced
(net of gold credits)
• Sales revenues increased 115% to $18.2 million
• Mine operating cash-flow escalated 249% to $9.1 million
• EBITDA was up 1192% to $7.1 million
• Net earnings improved from a loss of $1.7 million to earnings of
$1.7 million ($0.03 per share)
Bradford Cooke, Chairman and CEO, commented, "Endeavour posted yet
another strong quarter of rising silver and gold production and falling
cash costs in Q1, 2010.
Thanks to our increased production, lower
costs and higher metal prices, our revenues, cash-flow, EBITDA and
earnings were all up sharply, adding $3.4 million to our working
capital during the quarter.
From both the operating and financial
viewpoints, the Company has never been in better shape."
"We are now into the heart of our capital expansion and exploration
programs for the year so silver production will likely remain flat and
earnings should dip in the Second Quarter.
However, once the new
Porvenir Cuatro mine at Guanacevi and the Lucero South/Bolanitos South
mine expansions at Guanajuato come into production, silver production,
cash costs and earnings should once again resume their positive
trends."
"In addition to the organic growth of our two mining operations,
management has been focused this year on generating new opportunities
for growth through the acquisition of exciting new exploration
projects.
We are currently drilling the San Juanico property in
Parral, Chihuahua targeting a simple extension of the 1.5 million
tonnes of Ag-Au-Pb-Zn mineralization already drilled out on our Cometa
property next door."
"Mapping and sampling programs are now underway on the recently
acquired, district-scale San Sebastian project in Jalisco in order to
prioritize targets for drilling later this year.
Last but not least,
we are working on a number of prospective new property acquisitions,
some of which have substantial bulk tonnage open pit silver-gold
potential.
All in all, Endeavour is enjoying a very good start to the
year."
Financial Results (see Consolidated Statement of Operations)
Sales revenues increased 115% to $18.2 million in Q1, 2010 (Q1, 2009 -
$8.5 million) thanks to sharply higher mineral production and metal
prices.
The Company sold 787,651 silver oz and 4,454 gold oz at average
realized prices of $16.93 per oz and $1,105 per oz respectively.
Costs
of Sales were up 56% to $9.2 million (Q1, 2009 - $5.9 million)
primarily due to higher production.
Mine Operating Cash Flows increased 248% to $9.1 million (Q1, 2009 -
$2.6 million); and Mine Operating Earnings rose to $5.8 million (Q1,
2009 - $0.3 million).
The Company realized a positive Operating Income
of $2.7 million (Q1, 2009 - Loss of $1.2 million), primarily due to
higher Mine Operating Earnings.
Income Before Taxes was $3.3 million
(Q1, 2009 - Loss of $1.9 million).
The Company incurred an Income Tax
Expense of $1.6 million (Q1, 2009 - Recovery of $0.1 million) for Net
Earnings of $1.7 million ($0.03 per share) for the period.
Cash Operating Costs declined 15% to $6.39 per oz silver produced in
Q1, 2010 (Q1, 2009 - $7.56 per oz) thanks to higher plant throughputs
at Guanacevi, higher gold production and gold prices, partially offset
by lower gold recoveries at both Guanacevi and Guanajuato and the
appreciation of the Mexican peso.
Endeavour reports its cash operating
costs according to the Gold Institute cash cost reporting guidelines so
they include offsite costs such as transportation, smelting and
refining costs, net of by-product credits.
The Company made capital investments totalling $6.0 million in
property, plant and equipment during the First Quarter, 2010.
The main
focus of the capital programs was the continued development of the
Santa Cruz access ramp, the development of the Porvenir Cuatro access
ramp and the expansion of the crushing circuit at Guanacevi.
At
Guanajuato, mine development continued on the South extensions of the
Lucero and Bolanitos veins.
At March 31, 2010, the Company held cash and cash equivalents of $23.5
million and working capital totalled $42.2 million, up from $38.8
million at the end of 2009.
Operating Results (see Consolidated Table of Operations)
Silver production climbed 34% to 766,210 oz and gold production jumped
62% to 3,775 oz in Q1, 2010 compared to Q1, 2009 thanks to higher plant
throughput at both Guanacevi and Guanajuato, partially offset by
slightly lower gold recoveries.
As a result, silver and equivalent
production rose 31% to 1,011,569 oz (65:1 silver: gold ratio, no base
metals) compared to Q1, 2009.
Plant throughputs in Q1, 2010 totalled 112,963 tonnes, up 32% compared
to Q1, 2009 due to the benefits of the 2009 mine development program at
both operations and the 20% plant expansion at Guanajuato.
Guanacevi
averaged 772 tonnes per day (tpd) and Guanajuato averaged 557 tpd
(based on a 6 day work week).
Consolidated silver grades averaged 270
grams per tonne (gpt) silver (8.6 oz per ton), comparable to Q1, 2009
but gold grades averaged 1.34 gpt gold (0.04 oz per ton), some 31%
higher than Q1, 2009 as a result of higher gold grades at both
Guanacevi and Guanajuato and higher plant throughput at Guanajuato.
Second Quarter 2010 Outlook
Similar to our 2009 plan, management anticipates silver production in
Q2, 2010 will be comparable to Q1, 2010.
We expect cash costs to resume
their decline thanks to anticipated higher gold production and prices.
EBITDA and net earnings will also likely decline as exploration
spending escalates this quarter (Endeavour expenses its exploration
costs on exploration projects).
However, silver production is
scheduled to increase and cash costs are expected to decrease in Q3 and
Q4 as the new ore-bodies under development during the first half of the
year enter into production in the second half.
The 2010 Guanacevi plant upgrade and expansion program is well underway
with the installation of a new crushing circuit and the near completion
of the 5 year tailings expansion.
We are well into our final year of
major capital investments in order to unfold the full production
capacities at Guanacevi and Guanajuato and the capital expansion
programs are currently on time and within budget.
Some of the healthy cash-flow from operations will once again be put to
good use funding our aggressive 2010 exploration programs.
Endeavour
is focused on following up on our recent new discoveries in both
districts, testing several new prospective targets within these two
districts, and exploring newly acquired, district-scale silver-gold
properties elsewhere in Mexico.
Godfrey Walton, M.Sc., P.Geo., the President and COO, is the Qualified
Person who reviewed this news release and oversaw the mining
operations.
Barry Devlin, M.Sc., P.Geo., the Vice President of
Exploration, is the Qualified Person who reviewed this news release and
supervised the exploration programs.
Q1, 2010 Conference Call at 10:30 am PST, Wednesday, May 12, 2010
A conference call to discuss the results will be held at 1:30 PM
Eastern Standard Time (10:30 AM Pacific Standard Time) on Wednesday,
May 12, 2010.
To participate in the conference call, please dial the
following:
A replay of the conference call will be available by dialing
1-800-319-6413 in Canada & USA (Toll-free) or 1- 604-638-9010 outside
of Canada and USA.
The required pass code is 4890 followed by #.
Endeavour Silver Corp.
is a small-cap silver mining company focused on
the growth of its silver production, reserves and resources in Mexico.
Since start-up in 2004, Endeavour has posted five consecutive years of
aggressive silver production, reserve and resource growth.
The organic
expansion programs now underway at Endeavours two operating silver
mines in Mexico combined with its strategic acquisition and exploration
programs should help Endeavour achieve its goal to become the next
premier mid-tier silver mining company.
ENDEAVOUR SILVER CORP.
Per:
/s/ "Dan Dickson"
Dan Dickson
Chief Financial Officer
For more information, please contact Hugh Clarke at Toll free:
877-685-9775, tel: (604) 685-9775, fax: (604) 685-9744, email
or visit our website, www.edrsilver.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the
meaning of the United States private securities litigation reform act
of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation.
Such forward looking
statements and information herein include, but are not limited to,
statements regarding Endeavours anticipated performance in 2010,
including silver and gold production, timing and expenditures to
develop new silver mines and mineralized zones, silver and gold grades
and recoveries, cash costs per ounce, capital expenditures and
sustaining capital and the use of proceeds from the Companys recent
financing.
The Company does not intend to, and does not assume any
obligation to update such forward-looking statements or information,
other than as required by applicable law.
Forward-looking statements or
information involve known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity,
performance or achievements of Endeavour and its operations to be
materially different from those expressed or implied by such
statements.
Such factors include, among others: fluctuations in the
prices of silver and gold, fluctuations in the currency markets
(particularly the Mexican peso, Canadian dollar and U.S.
dollar);
changes in national and local governments, legislation, taxation,
controls, regulations and political or economic developments in Canada
and Mexico; operating or technical difficulties in mineral exploration,
development and mining activities; risks and hazards of mineral
exploration, development and mining (including environmental hazards,
industrial accidents, unusual or unexpected geological conditions,
pressures, cave-ins and flooding); inadequate insurance, or inability
to obtain insurance; availability of and costs associated with mining
inputs and labour; the speculative nature of mineral exploration and
development, diminishing quantities or grades of mineral reserves as
properties are mined; the ability to successfully integrate
acquisitions; risks in obtaining necessary licenses and permits, and
challenges to the companys title to properties; as well as those
factors described in the section "risk factors" contained in the
Companys most recent form 40F/Annual Information Form filed with the
S.E.C.
and Canadian securities regulatory authorities.
Although the
Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in
forward-looking statements or information, there may be other factors
that cause results to be materially different from those anticipated,
described, estimated, assessed or intended.
There can be no assurance
that any forward-looking statements or information will prove to be
accurate as actual results and future events could differ materially
from those anticipated in such statements or information.
Accordingly,
readers should not place undue reliance on forward-looking statements
or information.
ENDEAVOUR SILVER CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(Unaudited- Prepared by Management)
(expressed in thousands of U.S.
dollars, except for shares and per
share amounts)
http://www.edrsilver.com/i/pdf/2010-05-10_NR.pdf
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ENDEAVOUR SILVER CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited- Prepared by Management)
(expressed in thousands of U.S.
dollars)
http://www.edrsilver.com/i/pdf/2010-05-10_NR.pdf
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ENDEAVOUR SILVER CORP.
CONSOLIDATED BALANCE SHEETS
(Unaudited- Prepared by Management)
(expressed in thousands of U.S.
dollars)
http://www.edrsilver.com/i/pdf/2010-05-10_NR.pdf
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ENDEAVOUR SILVER CORP.
CONSOLIDATED MINE OPERATIONS
http://www.edrsilver.com/i/pdf/2010-05-10_NR.pdf
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View News Release in PDF Format:
http://www.edrsilver.com/i/pdf/2010-05-10_NR.pdf
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You can also view this News Release on our website at:
http://www.edrsilver.com/s/NewsReleases.asp?ReportID=398686
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Copyright (c) 2010 ENDEAVOUR SILVER CORP.
(EDR) All rights reserved.
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