Summary of Endeavour Silver's Q2 2026 Earnings Call

1Key Financial Results and Metrics

Production: Nearly 2 million ounces of silver and over 10,000 ounces of gold, totaling 3 million silver equivalent ounces, a 36% increase from Q2 2025.

Revenue: $212 million, up 150% year-over-year.

Mine Operating Earnings: $74 million, significantly higher than $7 million in Q2 2025.

Mine Operating Cash Flow: $100 million before taxes, a 300% increase from the previous year.

Adjusted Net Earnings: $45 million, or $0.15 per share.

All-In Sustaining Costs (AISC): $37, a 47% increase from Q2 2025, attributed to rising royalties, material costs, and mining taxes.

Cash Position: $236 million, with working capital of $214 million.

2Strategic Updates and Business Highlights

Terronera Mine: Successful ramp-up with consistent daily throughput; exploration drilling restarted to expand mineralization.

Kolpa Mine: Increased plant capacity to 2,500 tonnes per day; ongoing capital improvements including tailings storage and water treatment facilities.

Guanacevi Mine: Higher costs due to increased third-party ore purchases; ongoing exploration drilling to extend mine life.

Pitarrilla Feasibility Study: Expected completion by the end of Q3 2026, with positive economic indicators anticipated.

3Forward Guidance and Outlook

Management expects an incremental decrease in costs at Terronera in the second half of the year as higher-grade areas are accessed.

AISC guidance remains unchanged despite current higher costs, with expectations for improved efficiencies.

Plans to continue investing in growth initiatives, including the Pitarrilla project, which could require $500-$600 million in capital.

4Bad News, Challenges, or Points of Concern

Cost Pressures: AISC significantly higher than anticipated due to inflation, increased royalties, and higher costs of third-party ore.

Operational Challenges: Delays in permitting for the LNG plant and tailings storage facilities, impacting timelines.

Market Risks: Fluctuations in metal prices directly affect costs and profitability; potential for continued inflationary pressures.

5Notable Q&A Insights

LNG Plant Commissioning: Permitting delays were longer than expected, but commissioning proceeded smoothly.

Cash Utilization: Management indicated that current cash balances are not earmarked for sustaining capital at existing mines but will support Pitarrilla development.

Hedging Strategy: No current plans for further metal hedging; focus on managing foreign exchange risks related to operating costs.

Exploration Plans: Continued drilling at Terronera and Guanacevi with expectations for higher grades in the near future, although high-grade gold from Terronera is not expected until 2027. Overall, Endeavour Silver reported a strong Q2 2026 with significant production and revenue growth, despite facing cost pressures and operational challenges. The company is well-positioned for future growth with ongoing investments and strategic initiatives.