UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2023

Commission File Number: 001-33153

Endeavour Silver Corp.
(Translation of registrant's name into English)

#1130-609 Granville Street
Vancouver, British Columbia, Canada V7Y 1G5

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [   ]      Form 40-F [ X ]


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

      Endeavour Silver Corp.    
  (Registrant)
   
  
Date: August 8, 2023     /s/ DAN DICKSON    
  Dan Dickson
  CEO
  


EXHIBIT INDEX

 

Exhibit Number Description
      
99.1 Press Release dated August 8, 2023

EXHIBIT 99.1

Endeavour Silver Announces Q2 2023 Financial Results; Earnings Call at 10AM PDT (1PM EDT) Today

VANCOUVER, British Columbia, Aug. 08, 2023 (GLOBE NEWSWIRE) --  Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) is pleased to announce its financial and operating results for the three and six months ended June 30, 2023. All dollar amounts are in US dollars (US$).  

“While we have been successful at managing the inflation trend over the last two years, costs are now outpacing our mitigation efforts. The Mexican Peso has strengthened to a seven year high against the US dollar, which is impacting costs across our operations,” stated Dan Dickson, Chief Executive Officer. “Originally, our 2023 guidance had assumed a 20:1 Mexican Peso per US dollar exchange rate; however the current rate is just under 17:1; representing a 14% increase. Our bottom line has been impacted two-fold, through both inflation and foreign exchange. Cost control will continue to be a key focus for the operations group as cost pressures are expected to continue for the remainder of the year.”  

Q2 2023 Highlights

  • Production Tracking In-Line with Guidance: 1,494,000 ounces (oz) of silver and 9,819 oz of gold for 2.3 million oz silver equivalent (AgEq)(1) totalling 4.7 million oz AgEq for the first half of the year.
  • Revenue: $50.0 million from the sale of 1,299,672 oz of silver and 9,883 oz of gold at average realized prices of $24.13 per oz silver and $1,976 per oz gold.
  • Cash Flow: $11.1 million in operating cash flow before working capital changes(2) and $18.8 million in Mine operating cash flow before taxes(2) .
  • Negative Earnings due to Non-Cash Item: Net loss of $1.1 million, or $0.01 per share. Adjusted earnings of $2.1 million(2) after adjusting for a $3.2 million change in the fair value of investments.
  • Higher Costs Due to Strengthened Peso and Industry-Wide Inflation: Cash costs(2) of $13.52 per oz payable silver and all-in sustaining costs(2) of $22.15 per oz payable silver, net of gold credits. Costs were impacted by both inflationary pressures and a strengthened Mexican Peso. During the year, the Mexican Peso has appreciated by 14%. Cash cost and all-in-sustaining costs metrics were also impacted by lower silver grades at Guanacevi due to changes in mine sequencing. It is expected that grades will return to plan in Q3.
  • Management Continues to Monitor Macroeconomic Conditions Closely: Management anticipates these macro trends will continue for the near term and therefore expects actual cost metrics to be higher than cost metrics previously provided in the Company’s 2023 guidance. Management anticipates costs to align to similar levels with H1 2023 actual cost metrics of $12.27 per oz for cash cost and $21.11 per oz for AISC.
  • Healthy Balance Sheet: Cash position of $43.5 million and working capital(2) of $78.2 million. Cash decreased as funds were spent on development activities at Terronera.
  • Metal Inventory: Finished goods totaled 637,439 oz silver and 1,519 oz gold bullion inventory.
  • Construction and Development Update at Terronera: The Company has made significant progress on development activities, with overall construction progress 30% complete. The project remains on schedule for initial production in Q4 2024. (see news release dated July 20, 2023)
  • Terronera Debt Financing: Completion of the definitive loan documentation for the $120 million senior secured debt facility remains on track for execution in Q3 (see news release dated April 18, 2023).
  • Filed At-The-Market Prospectus Supplement for up to US$60 million: Proceeds to be used for funding development of the Terronera mine, and other growth initiatives including the Pitarrilla and Parral properties as well as prospective acquisitions and general working capital purposes (see news release dated June 27, 2023)

Financial Overview (see appendix for consolidated financial statements)

Three Months Ended June 30Q2 2023 HighlightsSix Months Ended June 30
2023 2022 % Change20232022 % Change
   Production   
1,494,000 1,359,207 10%Silver ounces produced3,117,5452,674,162 17%
9,819 9,289 6%Gold ounces produced19,16117,984 7%
1,482,255 1,346,276 10%Payable silver ounces produced3,090,4672,649,816 17%
9,636 9,117 6%Payable gold ounces produced18,82017,666 7%
2,279,520 2,102,327 8%Silver equivalent ounces produced(1)4,650,4254,112,882 13%
13.52 10.08 34%Cash costs per silver ounce(2)(3)12.2710.14 21%
18.54 14.26 30%Total production costs per ounce(2)(4)16.9214.69 15%
22.15 19.56 13%All-in sustaining costs per ounce (2)(5)21.1120.22 4%
228,575 201,361 14%Processed tonnes439,648407,508 8%
138.16 132.63 4%Direct operating costs per tonne(2)(6)135.26127.69 6%
169.59 148.11 15%Direct costs per tonne(2)(6)169.54148.32 14%
16.96 14.12 20%Silver co-product cash costs(7)15.9014.74 8%
1,367 1,144 19%Gold co-product cash costs(7)1,3031,169 11%
   Financial   
50.0 30.8 62%Revenue ($ millions)105.588.5 19%
1,299,672 602,894 116%Silver ounces sold2,967,0802,320,662 28%
9,883 9,792 1%Gold ounces sold19,00918,173 5%
24.27 22.72 7%Realized silver price per ounce23.6523.95 (1%)
1,955 1,840 6%Realized gold price per ounce1,9371,900 2%
(1.1)(11.9)91%Net earnings (loss) ($ millions)5.4(0.3)2170%
2.1 (4.3)149%Adjusted net earnings (loss) (11) ($ millions)5.52.0 172%
12.5 4.5 180%Mine operating earnings ($ millions)28.624.7 15%
18.8 8.8 115%Mine operating cash flow before taxes ($ millions)(8)41.335.5 16%
11.5 3.6 207%Operating cash flow before working capital changes(9)23.624.2 (3%)
11.4 (4.3)365%EBITDA(10) ($ millions)30.821.3 45%
78.2 149.7 (48%) Working capital (12) ($ millions)78.2149.7 (48%)
   Shareholders   
(0.01)(0.07)86%Earnings (loss) per share – basic ($)0.030.00 100%
0.01 (0.02)146%Adjusted earnings (loss) per share – basic ($)(11)0.030.01 151%
0.06 0.02 190
%Operating cash flow before working capital changes per share(9)0.120.14 (10%)
191,446,597 180,974,609 6%Weighted average shares outstanding190,867,192176,291,929 8%
       

(1) Silver equivalent (AgEq) is calculated using an 80:1 silver:gold ratio.

(2) These are non-IFRS financial measures and ratios. Further details on these non-IFRS financial measures and ratios are provided at the end of this press release and in the MD&A accompanying the Company’s financial statements, which can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

For the three months ended June 30, 2023, revenue, increased by 62% to $50.0 million (Q2 2022: $30.8 million).

Gross sales of $50.9 million in Q2 2023 represented a 61% increase over the $31.7 million in Q2 2022. Silver oz sold increased 116% due to both increased production and the impact of withholding of a significant amount of silver finished goods inventory during Q2, 2022.   There was a 7% increase in the realized silver price resulting in a 131% increase in proceeds from silver sales. Gold oz sold increased 1% with a 6% increase in realized gold prices resulting in a 7% increase in proceeds from gold sales. During Q2, 2023 the Company sold 1,299,672 oz silver and 9,883 oz gold, for realized prices of $24.27 and $1,955 per oz, respectively, compared to sales of 602,894 oz silver and 9,792 oz gold, for realized prices of $22.72 and $1,840 per oz, respectively, in the same period of 2022. In Q2, 2023, London spot prices averaged $24.13 and $1,976, respectively

The Company increased its finished goods to 637,439 oz silver and slightly decreased its finished goods gold inventory to 1,519 oz gold at June 30, 2023 compared to 530,250 oz silver and 1,707 oz gold at December 31, 2022. The cost allocated to these finished goods was $13.8 million as at June 30, 2023, compared to $7.4 million at March 31, 2023. At June 30, 2023, the finished goods inventory fair market value was $17.6 million, compared to $14.7 million at March 31, 2023.

After cost of sales of $37.5 million (Q2 2022 - $26.3 million), an increase of 43%, mine operating earnings were $12.5 million (Q2 2022 - $4.5 million). The increase in the cost of sales compared to the prior period was driven by significantly higher silver ounces sold in the current period, a strengthened Mexican peso and higher labour, power and consumables costs as the Company, as well as the industry, has experienced significant inflationary pressures. Additionally, the Company incurred increased royalty costs during Q2, 2023 compared to the prior period,

The Company had operating earnings of $5.4 million (Q2 2022: operating loss of $1.3 million) after exploration and evaluation costs of $4.3 million (Q2 2022: $3.8 million), general and administrative costs of $2.4 million (Q2 2022: $1.3 million) and a write off of exploration properties of $0.4 million (Q2, 2022 - $0.5 million).

Earnings before income taxes was $4.2 million (Q2 2022: loss before taxes of $8.8 million) after finance costs of $0.4 million (Q2 2022: $0.3 million), a foreign exchange gain of $1.9 million (Q2 2022: loss of $0.3 million), and investment and other expense of $2.7 million (Q2 2022: $6.9 million). The investment and other expenses during Q2 2023 primarily resulted from an unrealized loss on marketable securities and warrants of $3.2 million (Q2 2022: $7.6 million).

The Company realized a net loss for the period of $1.1 million (Q2 2022: $11.9 million) after an income tax expense of $5.2 million (Q2 2022: $3.1 million).   Current income tax expense increased to $4.4 million (Q2 2022 - $1.3 million) due to increased profitability impacting the income tax and special mining duty, while deferred income tax expense of $0.8 million is derived from changes in temporary timing differences between deductions for accounting versus deductions for tax (Q2 2022 – $1.8 million).

Direct operating costs(2) on a per tonne basis increased to $138.16, up 4% compared with Q2 2022 due to both a strengthening of the Mexican peso and higher operating costs at both Guanacevi and Bolanitos from inflationary pressure during 2022 and the first half of 2023. As the Mexican peso strengthens, the Company’s Mexican peso denominated costs are increased in US dollar terms. Guanacevi and Bolanitos have seen increased labour, power and consumables costs.

Consolidated cash costs per oz(2), net of by-product credits, increased to $13.52 primarily driven by an increase in direct operating costs, an increase in royalties and special mining duties, partially offset by an increase in by-product gold sales and increased silver production.    AISC(2) decreased by 4% on a per oz basis compared to Q2 2022 due to the increase in cash costs and an increase in allocated corporate general and administrative expenses partially offset by increased silver production and slightly lower sustaining capital expenditures.

Management anticipates these macro trends will continue for the near term and therefore expects actual cost metrics to be higher than cost metrics previously provided in the Company’s 2023 guidance. Management anticipates costs to align to similar levels with H1 2023 actual cost metrics.

The complete financial statements and management’s discussion & analysis can be viewed on the Company’s website, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All shareholders can receive a hard copy of the Company’s complete audited financial statements free of charge upon request. To receive this material in hard copy, please contact Investor Relations at 604-640-4804, toll free at 1-877-685-9775 or by email at gmeleger@edrsilver.com.

Conference Call

A conference call to discuss the Company’s Q2 2023 financial results will be held today at 10:00 a.m. PT / 1:00 p.m. ET. To participate in the conference call, please dial the numbers below.

Date & Time:Tuesday, August 8, 2023 at 10:00 a.m. PT / 1:00 p.m. ET
  
Telephone:Toll-free in Canada and the US +1-800-319-4610
Local or International +1-604-638-5340
Please allow up to 10 minutes to be connected to the conference call.
  
Replay:A replay of the conference call will be available by dialing (toll-free) +1-800-319-6413 in Canada and the US (toll-free) or +1-604-638-9010 outside of Canada and the US. The replay passcode is 0279#. The replay will also be available on the Company’s website at www.edrsilver.com.
  

About Endeavour Silver – Endeavour is a mid-tier precious metals mining company that operates two high-grade underground silver-gold mines in Mexico. Endeavour is advancing construction of the Terronera Project and exploring its portfolio of exploration projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.  Our philosophy of corporate social integrity creates value for all stakeholders.

SOURCE Endeavour Silver Corp.

Contact Information
Galina Meleger,
Vice President of Investor Relations
Tel: (604)640-4804
Email: gmeleger@edrsilver.com
Website: www.edrsilver.com

Follow Endeavour Silver on Facebook, Twitter, Instagram and LinkedIn

Endnotes

1 Silver equivalent (AgEq)

AgEq is calculated using an 80:1 silver:gold ratio.

2 Non-IFRS and Other Financial Measures and Ratios

Certain non-IFRS and other non-financial measures and ratios are included in this press release, including cash costs per silver ounce, total production costs per ounce, all-in costs per ounce, all-in sustaining cost (“AISC”) per ounce, direct operating costs per tonne, direct costs per tonne, silver co-product cash costs, gold co-product cash costs, realized silver price per ounce, realized gold price per ounce, adjusted net earnings (loss) adjusted net earnings (loss) per share, mine operating cash flow before taxes, working capital, operating cash flow before working capital adjustments, operating cash flow before working capital changes per share, earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA per share and sustaining and growth capital.

Please see the June 30, 2023 MD&A for explanations and discussion of these non-IFRS and other non-financial measures and ratios. The Company believes that these measures and ratios, in addition to conventional measures and ratios prepared in accordance with International Financial Reporting Standards (“IFRS”), provide management and investors an improved ability to evaluate the underlying performance of the Company. The non-IFRS and other non-financial measures and ratios are intended to provide additional information and should not be considered in isolation or as a substitute for measures or ratios of performance prepared in accordance with IFRS. These measures and ratios do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Certain additional disclosures for these non-IFRS measures have been incorporated by reference and can be found in the section “Non-IFRS Measures” in the June 30, 2023 MD&A available on SEDAR at www.sedar.com.

Reconciliation of Working Capital   
Expressed in thousands US dollars As at June 30, 2023As at December 31, 2022 
      
Current assets $126,678  $146,333  
Current liabilities  48,439   52,749  
Working capital $78,239  $93,584  
      
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share 
Expressed in thousands US dollars Three Months Ended June 30Six Months Ended June 30 
(except for share numbers and per share amounts) 2023  2022  2023  2022  
Net earnings (loss) for the period per financial statements$(1,054)$(11,923)$5,402 $(261) 
Change in fair value of investments 3,150  7,626  53  2,269  
Adjusted net earnings (loss)$2,096 $(4,297)$5,455 $2,008  
Basic weighted average share outstanding 191,446,597  180,974,609  190,867,192  176,291,929  
Adjusted net earnings (loss) per share$0.01 $(0.02)$0.03 $0.01  
      
Reconciliation of Mine Operating Cash Flow Before Taxes   
Expressed in thousands US dollars Three Months Ended June 30Six Months Ended June 30 
  2023  2022  2023  2022  
Mine operating earnings per financial statements$12,542 $4,472 $28,567 $24,741  
Share-based compensation (294) 113  (162) 240  
Amortization and depletion 6,596  4,175  12,849  10,481  
Mine operating cash flow before taxes$18,844 $8,760 $41,254 $35,462  
              
Reconciliation of Operating Cash Flow Before Working Capital Changes and Operating Cash Flow Before Working Capital Changes Per Share     
Expressed in thousands US dollars Three Months Ended June 30Six Months Ended June 30 
(except for per share amounts) 2023  2022  2023  2022  
Cash from (used in) operating activities per financial statements$4,853 $(18,548)$4,452 $3,185  
Net changes in non-cash working capital per financial statements (6,606) (22,160) (19,508) (21,046) 
Operating cash flow before working capital changes$11,459 $3,612 $23,960 $24,231  
Basic weighted average shares outstanding 191,446,597  180,974,609  190,867,192  176,291,929  
Operating cash flow before working capital changes per share$0.06 $0.02 $0.13 $0.14  
      
Reconciliation of EBITDA and Adjusted EBITDA     
Expressed in thousands US dollars Three Months Ended June 30Six Months Ended June 30 
  2023  2022  2023  2022  
Net earnings (loss) for the period per financial statements$(1,054)$(11,923)$5,402 $(261) 
Depreciation and depletion – cost of sales 6,596  4,175  12,849  10,481  
Depreciation and depletion – exploration 317  98  595  205  
Depreciation and depletion – general & administration 54  51  116  99  
Depreciation and depletion – care & maintenance -  30  -  60  
Finance costs 229  212  488  389  
Current income tax expense 4,442  1,325  8,887  2,340  
Deferred income tax expense 766  1,752  2,442  7,974  
EBITDA$11,350 $(4,280)$30,779 $21,287  
Share based compensation 416  972  2,041  2,499  
Change in fair value of investments 3,150  7,626  53  2,269  
Adjusted EBITDA$14,916 $4,318 $32,873 $26,055  
Basic weighted average shares outstanding 191,446,597  180,974,609  190,867,192  176,291,929  
Adjusted EBITDA per share$0.08 $0.02 $0.17 $0.15  


Reconciliation of Cash Cost Per Silver Ounce, Total Production Costs Per Ounce, Direct Operating Costs Per Tonne, Direct Costs Per Tonne
Expressed in thousands US dollars Three Months Ended June 30, 2023Three Months Ended June 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Direct production costs per financial statements$14,878 $10,600 $25,478 $7,797 $12,031 $19,828 
Smelting and refining costs included in net revenue -  795  795  -  937  937 
Opening finished goods (4,848) (1,063) (5,911) (7,908) (2,995) (10,903)
Closing finished goods 10,257  962  11,219  16,164  681  16,845 
Direct operating costs 20,287  11,294  31,581  16,053  10,654  26,707 
Royalties 5,679  70  5,749  2,128  66  2,194 
Special mining duty (1) 1,224  209  1,433  795  127  922 
Direct costs 27,190  11,573  38,763  18,976  10,847  29,823 
By-product gold sales (8,469) (10,853) (19,322) (5,719) (12,302) (18,021)
Opening gold inventory fair market value 2,500  995  3,495  3,724  3,763  7,487 
Closing gold inventory fair market value (1,629) (1,268) (2,897) (4,662) (1,061) (5,723)
Cash costs net of by-product 19,592  447  20,039  12,319  1,247  13,566 
Amortization and depletion 3,381  3,215  6,596  940  3,235  4,175 
Share-based compensation (147) (147) (294) 57  56  113 
Opening finished goods depreciation and depletion (1,115) (355) (1,470) (1,689) (897) (2,586)
Closing finished goods depreciation and depletion 2,318  288  2,606  3,733  199  3,932 
Total production costs$24,029 $3,448 $27,477 $15,360 $3,840 $19,200 
       
 Three Months Ended June 30, 2023Three Months Ended June 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Throughput tonnes 116,908  111,667  228,575  94,017  107,344  201,361 
Payable silver ounces 1,348,366  133,889  1,482,255  1,190,568  155,708  1,346,276 
       
Cash costs per silver ounce$14.53 $3.34 $13.52 $10.35 $8.01 $10.08 
Total production costs per ounce$17.82 $25.75 $18.54 $12.90 $24.66 $14.26 
Direct operating costs per tonne$173.53 $101.14 $138.16 $170.75 $99.25 $132.63 
Direct costs per tonne$232.58 $103.64 $169.59 $201.84 $101.05 $148.11 
       
Expressed in thousands US dollars Six Months Ended June 30, 2023Six Months Ended June 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Direct production costs per financial statements$33,023 $18,971 $51,994 $25,681 $20,868 $46,549 
Smelting and refining costs included in net revenue -  1,451  1,451  -  1,591  1,591 
Opening finished goods (4,953) (245) (5,198) (10,093) (2,857) (12,950)
Closing finished goods 10,257  962  11,219  16,164  681  16,845 
Direct operating costs 38,327  21,139  59,466  31,752  20,283  52,035 
Royalties 12,150  134  12,284  6,362  149  6,511 
Special mining duty (1) 2,494  294  2,788  1,526  371  1,897 
Direct costs 52,971  21,567  74,538  39,640  20,803  60,443 
By-product gold sales (16,902) (19,917) (36,819) (10,741) (23,790) (34,531)
Opening gold inventory fair market value 2,740  354  3,094  1,900  4,784  6,684 
Closing gold inventory fair market value (1,629) (1,268) (2,897) (4,662) (1,061) (5,723)
Cash costs net of by-product 37,180  736  37,916  26,137  736  26,873 
Amortization and depletion 6,855  5,994  12,849  4,850  5,631  10,481 
Share-based compensation (81) (81) (162) 120  120  240 
Opening finished goods depreciation and depletion (862) (60) (922) (1,965) (635) (2,600)
Closing finished goods depreciation and depletion 2,318  288  2,606  3,733  199  3,932 
Total production costs$45,410 $6,877 $52,287 $32,875 $6,051 $38,926 
       
 Six Months Ended June 30, 2023Six Months Ended June 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Throughput tonnes 219,283  220,365  439,648  195,270  212,238  407,508 
Payable silver ounces 2,783,970  306,497  3,090,467  2,321,016  328,800  2,649,816 
       
Cash costs per silver ounce$13.36 $2.40 $12.27 $11.26 $2.24 $10.14 
Total production costs per ounce$16.31 $22.44 $16.92 $14.16 $18.40 $14.69 
Direct operating costs per tonne$174.78 $95.93 $135.26 $162.61 $95.57 $127.69 
Direct costs per tonne$241.56 $97.87 $169.54 $203.00 $98.02 $148.32 
       


Expressed in thousands US dollars June 30, 2023June 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Closing finished goods10,25796211,21916,16468116,845
Closing finished goods depletion2,3182882,6063,7331993,932
Finished goods inventory$12,575$1,250$13,825$19,897$880$20,777

 

Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars Three Months Ended June 30, 2023Three Months Ended June 30, 2022 
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal 
Cash costs net of by-product$19,592 $447 $20,039 $12,319$1,247$13,566 
Operations share-based compensation (147) (147) (294) 57 56 113 
Corporate general and administrative 1,228  477  1,705  401 155 556 
Corporate share-based compensation 430  169  599  527 214 741 
Reclamation - amortization/accretion 79  66  145  69 53 122 
Mine site expensed exploration 327  350  677  360 308 668 
Intangible payments -  -  -  - - - 
Equipment loan payments 245  489  734  246 488 734 
Capital expenditures sustaining 6,300  2,920  9,220  7,050 2,788 9,838 
All-In-Sustaining Costs$28,054 $4,771 $32,825 $21,028$5,310$26,338 
Growth exploration and evaluation   3,253    2,901 
Growth capital expenditures   14,644    5,613 
All-In-Costs  $50,722   $34,852 
        
 Three Months Ended June 30, 2023Three Months Ended June 30, 2022 
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal 
Throughput tonnes 116,908  111,667  228,575  94,017 107,344 201,361 
Payable silver ounces 1,348,366  133,889  1,482,255  1,190,568 155,708 1,346,276 
Silver equivalent production (ounces) 1,663,223  616,297  2,279,520  1,488,550 613,777 2,102,327 
        
Sustaining cost per ounce$20.81 $35.64 $22.15 $17.66$34.10$19.56 
All-In-costs per ounce  $34.22   $25.89 
        
Expressed in thousands US dollars Six Months Ended June 30, 2023Six Months Ended June 30, 2022 
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal 
Cash costs net of by-product$37,180 $736 $37,916 $26,137$736$26,873 
Operations share-based compensation (81) (81) (162) 120 120 240 
Corporate general and administrative 3,844  1,355  5,199  2,468 1,031 3,499 
Corporate share-based compensation 1,449  511  1,960  1,444 603 2,047 
Reclamation - amortization/accretion 158  128  286  134 106 240 
Mine site expensed exploration 706  663  1,369  712 558 1,270 
Intangible payments -  -  -  29 12 41 
Equipment loan payments 490  976  1,466  491 977 1,468 
Capital expenditures sustaining 11,990  5,221  17,211  12,696 5,214 17,910 
All-In-Sustaining Costs$55,736 $9,509 $65,245 $44,230$9,358$53,588 
Growth exploration and evaluation   6,316    5,314 
Growth capital expenditures   27,370    10,538 
All-In-Costs  $98,931   $69,440 
        
 Six Months Ended June 30, 2023Six Months Ended June 30, 2022 
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal 
Throughput tonnes 219,283  220,365  439,648  195,270 212,238 407,508 
Payable silver ounces 2,783,970  306,497  3,090,467  2,321,016 328,800 2,649,816 
Silver equivalent production (ounces) 3,438,187  1,212,238  4,650,425  2,900,560 1,212,322 4,112,882 
        
Sustaining cost per ounce$20.02 $31.03 $21.11 $19.06$28.46$20.22 
All-In-costs per ounce  $32.01   $26.21 
        


Reconciliation of Sustaining Capital and Growth Capital
Expressed in thousands US dollars Three Months Ended June 30Six Months Ended June 30 
 2023  2022  2023  2022  
Capital expenditures sustaining$9,220 $9,838 $17,211 $17,910  
Growth capital expenditures 14,644  5,613  27,370  10,538  
Property, plant and equipment expenditures per Consolidated Statement of Cash Flows$23,864 $15,451 $44,581 $28,448  
      


Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs
Expressed in thousands US dollars Three Months Ended June 30, 2023Three Months Ended June 30, 2022  
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal  
Direct production costs per financial statements$14,878 $10,600 $25,478 $7,797 $12,031 $19,828   
Smelting and refining costs included in net revenue -  795  795  -  937  937   
Royalties 5,679  70  5,749  2,128  66  2,194   
Special mining duty (1) 1,224  209  1,433  795  127  922   
Opening finished goods (4,848) (1,063) (5,911) (7,908) (2,995) (10,903)  
Closing finished goods 10,257  962  11,219  16,164  681  16,845   
Direct costs$27,190 $11,573 $38,763 $18,976 $10,847 $29,823   
         
 Three Months Ended June 30, 2023Three Months Ended June 30, 2022  
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal  
Silver production (ounces) 1,352,423.00  141,577  1,494,000  1,194,150  165,057  1,359,207   
Average realized silver price ($) 24.27  24.27  24.27  22.72  22.72  22.72   
Silver value ($) 32,823,265  3,436,069  36,259,335  27,131,088  3,750,095  30,881,183   
         
Gold production (ounces) 3,885  5,934  9,819  3,680  5,609  9,289   
Average realized gold price ($) 1,955  1,955  1,955  1,840  1,840  1,840   
Gold value ($) 7,595,464  11,601,411  19,196,875  6,771,200  10,320,560  17,091,760   
         
Total metal value ($) 40,418,729  15,037,481  55,456,210  33,902,288  14,070,655  47,972,943   
Pro-rated silver costs (%) 81% 23% 65% 80% 27% 64%  
Pro-rated gold costs (%) 19% 77% 35% 20% 73% 36%  
         
Pro-rated silver costs ($) 22,080  2,644  25,345  15,186  2,891  19,198   
Pro-rated gold costs ($) 5,110  8,929  13,418  3,790  7,956  10,625   
         
Silver co-product cash costs ($) 16.33  18.68  16.96  12.72  17.51  14.12   
Gold co-product cash costs ($) 1,315  1,505  1,367  1,030  1,418  1,144   
         
Expressed in thousands US dollars Six Months Ended June 30, 2023Six Months Ended June 30, 2022  
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal  
Direct production costs per financial statements$33,023 $18,971 $51,994 $25,681 $20,868 $46,549   
Smelting and refining costs included in net revenue - $1,451 $1,451  -  1,591  1,591   
Royalties 12,150  134  12,284  6,362  149  6,511   
Special mining duty (1) 2,494  294  2,788  1,526  371  1,897   
Opening finished goods (4,953) (245) (5,198) (10,093) (2,857) (12,950)  
Finished goods NRV adjustment -  -  -  -  -  0   
Closing finished goods 10,257  962  11,219  16,164  681  16,845   
Direct costs 52,971  21,567  74,538  39,640  20,803  60,443   
         
 Six Months Ended June 30, 2023Six Months Ended June 30, 2022  
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal  
Silver production (ounces) 2,792,347  325,198  3,117,545  2,328,000  346,162  2,674,162   
Average realized silver price ($) 23.65  23.65  23.65  23.95  23.95  23.95   
Silver value ($) 66,031,062  7,690,007  73,721,069  55,755,600  8,290,580  64,046,180   
         
Gold production (ounces) 8,073  11,088  19,161  7,157  10,827  17,984   
Average realized gold price ($) 1,937  1,937  1,937  1,900  1,900  1,900   
Gold value ($) 15,636,792  21,476,620  37,113,413  13,598,300  20,571,300  34,169,600   
         
Total metal value ($) 81,667,854  29,166,628  110,834,482  69,353,900  28,861,880  98,215,780   
Pro-rated silver costs (%) 81% 26% 67% 80% 29% 65%  
Pro-rated gold costs (%) 19% 74% 33% 20% 71% 35%  
         
Pro-rated silver costs ($) 42,829  5,686  49,579  31,868  5,976  39,415   
Pro-rated gold costs ($) 10,142  15,881  24,959  7,772  14,827  21,028   
         
Silver co-product cash costs ($) 15.34  17.49  15.90  13.69  17.26  14.74   
Gold co-product cash costs ($) 1,256  1,432  1,303  1,086  1,369  1,169   
         

 

Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce 
Expressed in thousands US dollars Three Months Ended June 30Six Months Ended June 30 
 2023  2022  2023  2022  
Gross silver sales$31,543 $13,698 $70,163 $55,582  
Silver ounces sold 1,299,672  602,894  2,967,080  2,320,662  
Realized silver price per ounces$24.27 $22.72 $23.65 $23.95  
      
Expressed in thousands US dollars Three Months Ended June 30Six Months Ended June 30 
 2023  2022  2023  2022  
Gross gold sales$19,322 $18,021 $36,819 $34,531  
Gold ounces sold 9,883  9,792  19,009  18,173  
Realized gold price per ounces$1,955 $1,840 $1,937 $1,900  
      

Cautionary Note Regarding Forward-Looking Statements

This news release contains “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and information herein include but are not limited to statements regarding the development and financing of the Terronera Project, including anticipated Project progress and timeline and the timing and results of various activities. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.

Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, production levels, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include but are not limited to the completion of Societe Generale’s and ING Bank N.V.’s due diligence requirements in connection with the Terronera Project financing; the final terms of the financing and the Company’s ability to successfully drawdown funds thereunder; the ongoing effects of inflation and supply chain issues on Project economics; national and local governments, legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; financial risks due to precious metals prices; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development; risks in obtaining necessary licenses and permits; and challenges to the Company’s title to properties; as well as those factors described in the section “risk factors” contained in the Company’s most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.

Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the ability of the Company to successfully secure a debt facility, the continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, the Project’s forecasted economics as of 2023, mining operations will operate and the mining products will be completed in accordance with management’s expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.

Appendix

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS
(unaudited – prepared by management)
(expressed in thousands of US dollars, except for shares and per share amounts)

            
    Three months ended Six months ended 
    June 30, June 30, June 30, June 30, 
     2023   2022   2023   2022  
            
Revenue   $ 50,071  $30,782  $ 105,532  $88,522  
            
Cost of sales:           
Direct production costs    25,478   19,828   51,994   46,549  
Royalties    5,749   2,194   12,284   6,511  
Share-based payments   (294)  113   (162)  240  
Depreciation, depletion and amortization    6,596   4,175   12,849   10,481  
     37,529   26,310   76,965   63,781  
            
Mine operating earnings    12,542   4,472   28,567   24,741  
            
Expenses:           
Exploration and evaluation    4,359   3,784   8,523   7,000  
General and administrative    2,358   1,348   7,275   5,645  
Care and maintenance costs    -   189   -   379  
Write off of mineral properties    435   500   435   500  
     7,152   5,821   16,233   13,524  
            
Operating earnings (loss)    5,390   (1,349)  12,334   11,217  
            
Finance costs    374   336   774   634  
            
Other income (expense):           
Foreign exchange gain (loss)    1,855   (289)  3,744   522  
Gain on asset disposal    5   -   67   -  
Investment and other    (2,722)  (6,872)  1,360   (1,052) 
     (862)  (7,161)  5,171   (530) 
            
Earnings (loss) before income taxes    4,154   (8,846)  16,731   10,053  
            
Income tax expense:           
Current income tax expense    4,442   1,325   8,887   2,340  
Deferred income tax expense    766   1,752   2,442   7,974  
     5,208   3,077   11,329   10,314  
            
Net earnings (loss) and comprehensive earnings for the period   $ (1,054) $(11,923) $ 5,402  $(261) 
            
            
Basic earnings (loss) per share based on net earnings $ (0.01) $(0.07) $ 0.03   (0.00) 
Diluted earnings (loss) per share based on net earnings $ (0.01) $(0.07) $ 0.03   (0.00) 
            
Basic weighted average number of shares outstanding191,446,597 180,974,609 190,867,192 176,291,929  
Diluted weighted average number of shares outstanding191,446,597 184,569,970 192,811,731 179,018,499  
            

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(unaudited – prepared by management)
(expressed in thousands of US dollars)

      
  June 30, December 31, 
   2023   2022  
      
ASSETS     
      
Current assets     
Cash and cash equivalents $ 43,504  $83,391  
Other investments  8,136   8,647  
Accounts and other receivables  17,567   13,136  
Income tax receivable  166   4,024  
Inventories  30,531   19,184  
Prepaid expenses  25,524   16,951  
Loans receivable  1,250   1,000  
Total current assets  126,678   146,333  
      
Non-current deposits  660   565  
Non-current income tax receivable  3,570   3,570  
Non-current other investments  -   1,388  
Non-current IVA receivable  14,695   10,154  
Non-current loans receivable  2,186   2,729  
Right-of-use leased assets  914   806  
Mineral properties, plant and equipment  256,307   233,892  
Total assets $ 405,010  $399,437  
      
LIABILITIES AND SHAREHOLDERS' EQUITY     
      
Current liabilities     
Accounts payable and accrued liabilities $ 35,719  $39,831  
Income taxes payable  7,289   6,616  
Loans payable  5,000   6,041  
Lease liabilities  431   261  
Total current liabilities  48,439   52,749  
      
Loans payable  6,361   8,469  
Lease liabilities  810   812  
Provision for reclamation and rehabilitation  9,574   7,601  
Deferred income tax liability  15,386   12,944  
Other non-current liabilities  1,063   968  
Total liabilities  81,633   83,543  
      
Shareholders' equity     
Common shares, unlimited shares authorized, no par value, issued, issuable    
and outstanding 191,505,299 shares (Dec 31, 2022 - 189,995,563 shares) 662,029   657,866  
Contributed surplus  3,793   6,115  
Retained earnings (deficit)  (342,445)  (348,087) 
Total shareholders' equity  323,377   315,894  
Total liabilities and shareholders' equity $ 405,010  $399,437  
      

ENDEAVOUR SILVER CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(unaudited – prepared by management)
(expressed in thousands of US dollars)

          
   Three months ended Six months ended
   June 30, June 30, June 30, June 30,
    2023   2022   2023   2022 
          
Operating activities         
Net earnings (loss) for the period  $ (1,054) $(11,923) $ 5,402  $(261)
          
Items not affecting cash:         
Share-based compensation   415   972   2,040   2,499 
Depreciation, depletion and amortization   6,973   4,324   13,592   10,786 
Writte off of exploration properties   435   500   435   500 
Deferred income tax expense   766   1,752   2,442   7,974 
Unrealized foreign exchange loss (gain)   519 - (84)  1,614 - (220)
Finance costs   374   336   774   634 
Accretion of loans receivable   (114)  -   (207)  - 
Loss (gain) on asset disposal   (5)  105   (67)  46 
Loss on other investments   3,150   7,626   53   2,269 
Performance and deferred share units settled in cash   -   -   (2,118)  - 
Net changes in non-cash working capital   (6,606)  (22,156)  (19,508)  (21,042)
Cash from (used in) operating activities   4,853   (18,548)  4,452   3,185 
          
Investing activities         
Proceeds on disposal of property, plant and equipment   -   48   -   82 
Mineral properties, plant and equipment   (23,864)  (15,451)  (44,581)  (28,448)
Purchase of other investments   -   (748)  -   (2,119)
Proceeds from disposal of other investments   1,846   -   1,846   - 
Redemption of (investment in) non-current deposits   (163)  2   (95)  4 
Cash used in investing activities   (22,181)  (16,149)  (42,830)  (30,481)
          
Financing activities         
Repayment of loans payable   (1,575)  (1,214)  (3,149)  (2,297)
Repayment of lease liabilities   (86)  (54)  (149)  (106)
Interest paid   (214)  (204)  (453)  (381)
Public equity offerings   -   -   -   46,001 
Exercise of options   641   1,448   2,453   1,578 
Proceeds from loans receivable   400   -   500   - 
Share issuance costs   -   (15)    (2,812)
Performance and deferred share units witholding tax settlement   -   (6)  (294)  (1,903)
Cash from (used in) financing activities   (834)  (45)  (1,092)  40,080 
          
Effect of exchange rate change on cash and cash equivalents  16   (46)  (417)  139 
          
Increase (decrease) in cash and cash equivalents   (18,162)  (34,742)  (39,470)  12,784 
Cash and cash equivalents, beginning of the period   61,650   151,014   83,391   103,303 
Cash and cash equivalents, end of the period  $ 43,504  $116,226  $ 43,504  $116,226 
          



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