EXK — Endeavour Silver Corp.

Endeavour Silver (EXK) Q4 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Production: Endeavour produced 11 million ounces of silver equivalent in 2025, a 48% increase from 2024. Q4 production was 2 million ounces of silver and 14,000 ounces of gold, totaling nearly 4 million silver equivalent ounces, a 146% increase year-over-year.
• Revenue: Record revenue of $468 million, up 115% from 2024.
• Cost of Sales: $385 million, leading to mine operating earnings of $83 million and mine operating cash flow before taxes of $156 million.
• Adjusted Net Earnings: $4.8 million or $0.02 per share, impacted by derivative losses and higher financing costs.
• Cash Costs: Increased to $19 per ounce of payable silver due to production profile changes.
• Cash Position: As of December 31, 2025, cash reserves stood at $215 million.

2. Strategic Updates and Business Highlights

• Terronera Operations: Achieved commercial production in October 2025, but operations were temporarily paused due to security events in Mexico. Operations resumed after ensuring safety.
• Acquisitions and Sales: Acquired Kolpa in May 2025 and sold the Bolanitos Mine, which closed in January 2026.
• Expansion Initiatives: Plans to increase Kolpa's capacity from 2,000 to 2,500 tonnes per day, expected to be achieved soon.
• Pitarrilla Development: Planned investment of $68 million in 2026 for exploration and feasibility studies, with a targeted completion for the feasibility study in Q3 2026.

3. Forward Guidance and Outlook

• Cost Reduction: Anticipated decrease in direct operating costs as the company transitions from diesel to liquefied natural gas (LNG) in Q2 2026.
• Production Goals: Expecting to maintain throughput at 2,000 tonnes per day through 2026, with improvements in grades and recoveries as operations stabilize.
• Long-term Strategy: Focus on disciplined execution at Terronera and advancing Pitarrilla to secure organic growth.

4. Bad News, Challenges, or Points of Concern

• Security Risks: Operations at Terronera were impacted by security events in Mexico, leading to operational pauses and heightened safety protocols.
• Cost Pressures: Direct operating costs per ton increased due to elevated costs at Terronera and higher royalties and duties associated with rising metal prices.
• Hedging Losses: Realized losses from derivative contracts affected earnings, with ongoing hedges on gold impacting financials through 2026.
• Operational Challenges: Initial ramp-up at Terronera faced issues with electrical interruptions and lower-grade mining, although improvements were noted in early 2026.

5. Notable Q&A Insights

• Operational Improvements: Management reported significant improvements in throughput and stability at Terronera in early 2026, with expectations for better performance as they transition to LNG.
• Cost Management: Future costs are expected to decrease as initial high expenditures related to construction and ramp-up are reduced.
• Market Conditions: High silver prices (around $94) are expected to impact costs due to increased royalties and duties, although margins remain favorable.
• Permitting for Pitarrilla: The timeline for the tailings storage facility permit is projected for Q1 2027, with ongoing work to ensure all necessary permits are secured efficiently.

Overall, Endeavour Silver is positioned for growth in 2026, with strategic initiatives in place despite facing challenges related to security and operational ramp-up.