Endeavour Silver reported today a 647 percent net earnings loss of US$5.5 million in 3Q18 compared to US$1 million earned in 3Q17. This setback was mainly attributed to higher depletion charges and depreciation. Lower realized metal prices and higher costs also decreased revenue by 6 percent to US$37.6 million in 3Q18 from US$39.8 million in 3Q17.
The net loss was offset by a higher silver production, ramping up 13 percent to 1.4 million ounces in 3Q18 from 1.3 million ounces in 3Q17. But gold production decreased by 5 percent to 12,968 ounces in 3Q18 compared to the 13,648 ounces produced in the same period in 2017.
“Our financial performance in Q3, 2018 was impacted by lower metal prices and higher depreciation and depletion charges, primarily at Guanacevi where production lagged behind plan. However, El Cubo production continued its strong performance during the quarter and Bolañitos gold grades are now improving after a slight drop in Q3, 2018,” said CEO Bradford Cooke in the company’s news release. “We completed a large part of our 2018 exploration and development spending during the third quarter and in late August launched a company-wide initiative to reduce exploration, capital, operating and G&A costs.”
But despite the discouraging results for the quarter, Endeavour’s CEO remains hopeful for strong close to 2018. “Looking ahead to Q4, 2018, management anticipates improved operating and financial performance due to higher throughput and grades at Guanaceví, stronger gold grades at Bolanitos and initial commercial production from El Compas,” he said. “We should also begin to realize the full benefit of the short-term cost reduction program in Q4, 2018.”
Endeavour Silver operates three silver-gold mines in Mexico, Guanaceví in Durango and Bolañitos and El Cubo in Guanajuato. The company is also currently commissioning its fourth mine in Zacatecas, El Compás.