Endeavour Silver Corp. (EDR:CA) Q3 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call presents a mixed picture. Positive elements include steady performance at Terronera and Kolpa, expected free cash flow, and strategic expansion plans. However, lower grades, unclear guidance on Kolpa's expansion, and unresolved gold hedge issues create uncertainties. The lack of shareholder return plans and mixed financial results add to the neutral sentiment.
Key Financial Performance
Silver Production 1.8 million ounces of silver, representing an 88% increase compared to Q3 2024, primarily due to the addition of the Kolpa mine and full quarter production from Guanacevi.
Gold Production 7,300 ounces of gold, contributing to a total of approximately 3 million silver equivalent ounces, an 88% increase compared to Q3 2024, driven by the same factors as silver production.
Revenue $111 million, an increase of 109% compared to the prior year, benefiting from higher precious metal prices and increased production profile.
Mine Operating Cash Flow Increased by 102%, driven by higher production and revenue, though cash costs rose to $18 per payable silver ounce due to higher royalties, profit participation, and costs of third-party mineralized material, coupled with lower grades processed at Guanacevi and Bolañitos.
All-in Sustaining Costs Increased to $30.53 per ounce, net of byproduct credits, due to elevated exploration at Kolpa, initial capital investment to upgrade facilities, and increased treatment and refining charges. Includes a $2.3 million mark-to-market charge for deferred share units.
Mine Operating Earnings Increased to $15.6 million from $12.5 million in Q3 2024, driven by higher operating earnings from Bolañitos and Guanacevi, and $3.9 million from Kolpa, offset by a $3.6 million loss from Terronera during commissioning.
Net Loss $37.5 million, primarily due to a $39 million loss on derivative contracts.
Cash Position $57 million as of September 30, 2025.
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Operating Highlights
Terronera commercial production: Terronera mine reached commercial production, achieving 90% of its design capacity and projected metal recoveries during commissioning.
Kolpa mine production: Kolpa mine completed its first full quarter under production, contributing 1.3 million silver equivalent ounces in Q3 2025.
Revenue growth: Revenue increased by 109% year-over-year to $111 million, driven by higher precious metal prices and increased production.
Market positioning: The company strengthened its position as a leading mid-tier silver producer with the addition of Terronera and Kolpa mines.
Operational efficiencies at Terronera: The team is working to refine and optimize operating processes, aiming for incremental improvements in throughput and recoveries.
Kolpa mine upgrades: Investments are being made to modernize the plant and infrastructure, with permits received to increase throughput to 2,500 tonnes per day.
Exploration at Kolpa: $1.5 million spent in Q3 2025 on infill and step-out drilling as part of a $12 million exploration program to validate historical resources.
Pitarrilla project advancement: Focus on upgrading inferred resources and conducting studies for a tailings dam permit and feasibility study, expected by mid-2026.
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Risk or Challenges
Cash Costs and All-in Sustaining Costs: Cash costs increased to $18 per payable silver ounce due to higher royalties, profit participation, and costs of third-party mineralized material. All-in sustaining costs rose to $30.53 per ounce, driven by elevated exploration costs, initial capital investments, and increased treatment and refining charges.
Net Loss and Derivative Contracts: The company reported a net loss of $37.5 million, primarily due to a $39 million loss on derivative contracts related to gold sales agreements.
Terronera Mine Operating Loss: Terronera incurred a mine operating loss of $3.6 million during its commissioning period, despite achieving 90% of its design capacity and projected metal recoveries.
Kolpa Mine Performance: Kolpa mine experienced marginally lower grades than expected, leading to slightly higher cash costs per ounce. Investments are required to modernize the plant and infrastructure to support potential production increases.
Exploration and Validation Costs: The company is incurring significant exploration costs, including $12 million over 24 months to validate historical resources at Kolpa, with $1.5 million spent in Q3 2025.
Economic and Market Risks: The company is exposed to economic uncertainties, including fluctuating precious metal prices, which significantly impact revenue and profitability.
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Guidance & Outlook
Terronera Production Forecast: The company forecasts throughput of approximately 350,000 tonnes over the next 6 months, with average grades estimated to be about 120 grams per tonne silver and 2.5 grams per tonne gold. Higher grade zones are scheduled to be accessed in mid-2026. During this period, the operating team will refine and optimize operating processes, incrementally improving throughput, recoveries, and efficiencies.
2026 Production and Cost Guidance: In January 2026, the company will issue annualized 2026 production and cost guidance for Terronera along with consolidated guidance.
Kolpa Exploration and Production: The company plans to spend $12 million on exploration over 24 months to validate historical resources. In Q3 2025, Kolpa produced 1.3 million silver equivalent ounces and is on track to align with historical performance benchmarks of 5 million silver equivalent ounces. Investments are being made to modernize the plant and infrastructure to support a potential increase in production. Permits have been received to increase throughput to 2,500 tonnes per day, with an evaluation of expanded operations expected to be completed late this quarter.
Pitarrilla Project Development: The company is advancing the Pitarrilla project, focusing on upgrading inferred resources to indicated resources. Engineers are working on studies to support a tailings dam permit and a feasibility study, which is expected to be published mid-2026.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What has been the performance of Kolpa versus expectations, including grades, costs, labor relations, and community relations?
A:Kolpa's throughput was above 2,000 tonnes per day, slightly above its design capacity, but grades were slightly lower. Management is balancing extending mine life versus cash flow. Exploration has gone as expected or better, with results validating historical resources. Labor and community relations are aligned with expectations, and the operating team is focused on expanding to a 2,500-tonne per day plant. Cash flow from Kolpa is expected to improve by 2026.
Q:What caused the 8 days of downtime at Terronera in Q3, and has there been any downtime in Q4 so far?
A:The downtime in Q3 was due to an electrical issue requiring specific resistors that were not readily available. Since October, there have been no significant downtimes, with only intermittent half-day interruptions. The plant is running above 90% capacity, and management is focused on refining and optimizing operations over the next 6 months.
Q:How has Terronera performed in October, and what is the current stockpile and grade situation?
A:In October, Terronera performed steadily without major events. The stockpile capacity is about 60,000 to 80,000 tonnes. Current grades are lower, around 2.5 grams gold and 120 grams silver, as the focus is on optimizing recoveries. Higher-grade zones are expected to be accessed by mid-2026, with grades improving in Q2 and Q3 next year.
Q:What are the plans for refinancing the project finance facility now that Terronera is in commercial production?
A:The company is evaluating options to refinance the project finance facility within the next 6 months.
Q:Does the company have sufficient supplies and spares to mitigate potential hiccups?
A:Yes, the company believes it has sufficient inventory and warehouse supplies to handle potential issues, although management acknowledges the possibility of unforeseen challenges.
Q:Why has CapEx spending been lower than planned, and will there be a catch-up in Q4?
A:CapEx spending has been consistent at Bolañitos and Guanacevi, with no significant catch-up expected in Q4. At Kolpa, spending will likely remain similar as projects are completed. Terronera's sustaining capital needs are not expected to be outsized.
Q:What are the spending plans for Kolpa's underground expansion over the next 6 months?
A:The company is evaluating the capital requirements for Kolpa's expansion to 2,500 tonnes per day. A final decision is expected by December, with guidance to be provided in January.
Q:What is the expected G&A run rate going forward?
A:The G&A run rate will exclude the $2.7 million expense related to DSUs in Q3, which was a one-time item. The adjusted run rate will be consistent with prior quarters.
Q:How critical is mine development at Guanacevi and Bolañitos to maintaining production levels?
A:Mine development is critical but on track at both Guanacevi and Bolañitos. The company has achieved the necessary development meters and does not expect changes in operating profiles due to mine development.
Q:What are the economics of third-party ore purchases at Guanacevi?
A:Third-party ore accounts for about 15% of throughput at Guanacevi, with margins of 20-25%. The cost per tonne is higher due to higher silver and gold prices, but it extends mine life and complies with a requirement to process at least 10% local ore.
Q:When can the company expect to generate positive free cash flow?
A:Positive free cash flow is expected in Q4 and Q1, driven by Terronera's commercial production. Cost reductions at Terronera and improved operational efficiencies will further support cash flow.
Q:What are the plans for capital return to shareholders?
A:Capital return to shareholders, such as dividends or share buybacks, is not planned in the near term. Cash flow will be reinvested into the Pitarrilla project, which is expected to transform the company.
Q:What is the impact of gold hedges on financial results, and are there plans to buy them back?
A:Gold hedges at $2,325 per ounce have created mark-to-market losses due to rising gold prices. The company has no immediate plans to buy back the hedges but is evaluating options as part of refinancing discussions.
Q:What are the throughput and grade expectations for Guanacevi and Bolañitos in Q4?
A:Throughput is expected to remain steady at 1,100-1,200 tonnes per day for both operations. Grades have been slightly lower in October, and the company expects to trend towards the lower end of guidance for the year.
Q:Review of Unclear Management Responses
A:Management avoided providing specific details on Kolpa's underground expansion spending plans, citing ongoing evaluations and budget discussions. Additionally, they did not commit to a timeline for resolving the gold hedge issue or provide clarity on the potential impact of refinancing the project finance facility.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Chief Executive
Chief Financial
Chief Officer
Conference Instructions
Dickson Silver
Executive Officer
Financial Officer
Financial Results
Officer Chief
Officer remark
President Investor
Relations Vice
Results Conference
Silver Chief
Silver Financial
Vice President
conference Instructions
conference Silver
conference Vice
today Dickson
EXK Transcript
Endeavour Silver Corp. (EDR:CA) Q1 2026 Earnings Call Transcript
Positive5-7
The earnings call highlighted record production and revenue, along with strong cash flow, indicating solid financial performance. The Kolpa plant expansion and Terronera operations are progressing well, supporting growth. However, the lack of strategic initiatives discussion and cautionary language on forward-looking statements slightly temper the optimism. Overall, the positive operational updates and financial results are likely to drive a 2% to 8% stock price increase over the next two weeks.
Endeavour Silver Corp. (EDR:CA) Q4 2025 Earnings Call Transcript
Unknown2-27
The earnings call presents a mixed picture. Financial performance and business updates show improvements, especially with operational efficiencies and strategic investments. However, uncertainties in grade profiles, cost management challenges, and vague responses on key issues create concerns. The Q&A highlights potential risks but also optimism for future improvements. These factors balance out to a neutral sentiment.
Endeavour Silver Corp. (EDR:CA) Q3 2025 Earnings Call Transcript
Unknown11-7
The earnings call presents a mixed picture. Positive elements include steady performance at Terronera and Kolpa, expected free cash flow, and strategic expansion plans. However, lower grades, unclear guidance on Kolpa's expansion, and unresolved gold hedge issues create uncertainties. The lack of shareholder return plans and mixed financial results add to the neutral sentiment.
Endeavour Silver Corp. (EXK) Q2 2025 Earnings Call Transcript
Unknown8-13
The earnings call highlights mixed results: the Terronera project is nearing commercial production, but the company reported a net loss due to operating losses and increased expenses. The Q&A revealed concerns about integration and operating costs at Minera Kolpa, and management's unclear responses on some issues. While there is optimism about future production and cost alignment, current financials and uncertainties suggest a neutral sentiment for stock price movement.
EXK Report
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