EXK — Endeavour Silver Corp.

Summary of Endeavour Silver (EXK) Q1 2026 Earnings Call

1. Key Financial Results and Metrics:

• Production: Nearly 2 million ounces of silver and 12,000 ounces of gold, totaling 3 million silver equivalent ounces, a 78% increase year-over-year.
• Revenue: $210 million, up 23% from Q1 2025.
• Cost of Sales: $160 million, leading to mine operating earnings of $94 million.
• Mine Operating Cash Flow: $115 million before taxes, a 400% increase from Q1 2025.
• All-in Sustaining Costs: $37 per ounce, a 51% increase year-over-year but 9% lower than Q4 2025.
• Adjusted Net Earnings: $59 million, or $0.21 per share.
• Cash Position: Over $232 million, with working capital exceeding $173 million.

2. Strategic Updates and Business Highlights:

• The Cubo plant expansion is nearly complete, and operations at Terronera are performing close to design expectations.
• Operational Efficiency: Improvements at Terronera are expected to reduce costs as operations stabilize.
• Exploration: Drilling has restarted at Terronera, with updates anticipated later this quarter.
• Pitarrilla Project: Ongoing investment in exploration and studies, with an economic evaluation expected in Q3 2026.

3. Forward Guidance and Outlook:

• Anticipation of further reductions in operating costs as operations normalize and efficiencies improve.
• Expected increase in grades at Terronera in the second half of 2026, with a focus on optimizing mining plans.
• The feasibility study for Pitarrilla is still targeted for completion in Q3 2026, though slight delays may occur.

4. Challenges and Points of Concern:

• Labor Costs: Increased pressures in Peru regarding skilled labor retention impacting costs and efficiencies.
• Cost Increases: Direct operating costs per tonne rose by 30% year-over-year due to the inclusion of higher-cost assets.
• Regulatory Risks: Delays in obtaining necessary permits for Pitarrilla, particularly for the tailings storage facility, could impact timelines.
• Market Conditions: Potential volatility in metal prices affecting cost structures and margins.

5. Notable Q&A Insights:

• Terronera Grades: Expected to improve slightly in Q2, with significant increases anticipated in Q3 and Q4.
• Operational Security: The company has faced challenges related to security in Mexico but maintains a strong safety record and proactive security measures.
• M&A Discussions: Interest in growth and potential M&A opportunities, with a focus on becoming a senior silver producer.
• Capital Allocation: Current cash generation is focused on growth initiatives, particularly Pitarrilla, with dividends or buybacks considered only after the project is operational.

Overall, Endeavour Silver reported strong financial results and is positioned for continued growth, despite facing operational challenges and regulatory hurdles. The management remains optimistic about improving production metrics and cost efficiencies in the coming quarters.