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 offices)

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

[   ] Form 20-F   [ x ] Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): [   ]

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): [   ]


Incorporated by Reference

Exhibits 99.1 and 99.2 to this Form 6-K of Endeavour Silver Corp. (the “Company”) are hereby incorporated by reference as exhibits to the Registration Statement on Form F-10 (File No. 333-272755) of the Company, as amended or supplemented.

SUBMITTED HEREWITH

Exhibit   Description
     
99.1   Condensed Consolidated Interim Financial Statements for the period ended June 30, 2023
99.2   Management Discussion and Analysis for the period ended June 30, 2023
99.3   Form 52-109F2 Certification of Interim Filings Full Certificate - CEO
99.4   Form 52-109F2 Certification of Interim Filings Full Certificate - CFO


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 By: /s/ Daniel Dickson
    Daniel Dickson
  Title: CEO

 



 


ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(unaudited - prepared by management)

(expressed in thousands of US dollars)

                                       
          June 30,     December 31,                      
    Notes     2023     2022                      
                                       
ASSETS                                      
                                       
Current assets                                      
Cash and cash equivalents       $ 43,504   $ 83,391                      
Other investments   4     8,136     8,647                      
Accounts and other receivables   5     17,567     13,136                      
Income tax receivable         166     4,024                      
Inventories   6     30,531     19,184                      
Prepaid expenses         25,524     16,951                      
Loans receivable   8 (c)     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   4     -     1,388                      
Non-current IVA receivable   5     14,695     10,154                      
Non-current loans receivable   8 (c)     2,186     2,729                      
Right-of-use leased assets         914     806                      
Mineral properties, plant and equipment   8, 9     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   9     5,000     6,041                      
Lease liabilities         431     261                      
Total current liabilities         48,439     52,749                      
                                       
Loans payable   9     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)   Page 4     662,029     657,866                      
Contributed surplus   Page 4     3,793     6,115                      
Retained earnings (deficit)   Page 4     (342,445 )   (348,087 )                    
Total shareholders' equity         323,377     315,894                      
Total liabilities and shareholders' equity       $ 405,010   $ 399,437                      

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

Approved on behalf of the Board:

/s/    Margaret Beck   /s/    Daniel Dickson
Director   Director


ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)

(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,  
    Notes     2023     2022     2023     2022  
                               
Revenue   11   $ 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   10 (b)(c)     (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   12     4,359     3,784     8,523     7,000  
General and administrative   13     2,358     1,348     7,275     5,645  
Care and maintenance costs         -     189     -     379  
Write off of mineral properties   8 (e)     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   10(f)   $ (0.01 ) $ (0.07 ) $ 0.03     (0.00 )
                               
Basic weighted average number of shares outstanding         191,446,597     180,974,609     190,867,192     176,291,929  
Diluted weighted average number of shares outstanding   10(f)     191,446,597     184,569,970     192,811,731     179,018,499  

The accompanying notes are an integral part of these condensed consolidated interim financial statements.


ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(unaudited - prepared by management)

(expressed in thousands of US dollars, except share amounts)

    Notes     Number of shares     Share
Capital
    Contributed
Surplus
    Retained
Earnings (Deficit)
    Total   
Shareholders'
Equity
 
                                     
Balance at December 31, 2021         170,537,307   $ 585,406   $ 6,331   $ (354,330 ) $ 237,407  
                                     
Public equity offerings, net of issuance costs   10 (a)     9,293,150     43,189     -     -     43,189  
Exercise of options   10 (b)     553,200     2,333     (755 )   -     1,578  
Settlement of performance and deferred share units   10 (c)     664,170     806     (2,703 )   -     (1,897 )
Issued for deferred share units   10 (c)     3,527     17     (17 )   -     -  
Share-based compensation   10 (b)(c)     -     -     2,499     -     2,499  
Settlement of deferred share units   10 (c)     -     -     (6 )   -     (6 )
Loss  for the period         -     -     -     (261 )   (261 )
Balance at June 30, 2022         181,051,354   $ 631,751   $ 5,349   $ (354,591 ) $ 282,509  
                                     
Public equity offerings, net of issuance costs   10 (a)     -     (73 )   -     -     (73 )
Issued on acquisition of mineral properties   8 (b)     8,577,380     25,589     -     -     25,589  
Exercise of options   10 (b)     16,000     44     (15 )   -     29  
Issued and issuable for performance share units   10 (c)     350,829     555     (555 )   -     -  
Share-based compensation   10 (b)(c)     -     -     1,378     -     1,378  
Canceled options   10 (b)     -     -     (42 )   42     -  
Earnings for the period         -     -     -     6,462     6,462  
Balance at December 31, 2022         189,995,563   $ 657,866   $ 6,115   $ (348,087 ) $ 315,894  
                                     
Exercise of options   10 (b)     1,097,900     3,758     (1,305 )   -     2,453  
Settlement of performance and deferred share units   10 (c)     411,836     405     (2,817 )   -     (2,412 )
Share-based compensation   10 (b)(c)     -     -     2,040     -     2,040  
Canceled options   10 (b)     -     -     (240 )   240     -  
Earnings for the period         -     -     -     5,402     5,402  
Balance at June 30, 2023         191,505,299   $ 662,029   $ 3,793   $ (342,445 ) $ 323,377  

The accompanying notes are an integral part of these condensed consolidated interim financial statements.


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,  
  Notes   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 10 (b)(c)   415     972     2,040     2,499  
Depreciation, depletion and amortization 8   6,973     4,324     13,592     10,786  
Write off of exploration properties 8   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 4   3,150     7,626     53     2,269  
Performance and deferred share units settled in cash     -     -     (2,118 )   -  
Net changes in non-cash working capital 14   (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 8   (23,864 )   (15,451 )   (44,581 )   (28,448 )
Purchase of other investments     -     (748 )   -     (2,119 )
Proceeds from disposal of other investments 4   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 9   (1,575 )   (1,214 )   (3,149 )   (2,297 )
Repayment of lease liabilities     (86 )   (54 )   (149 )   (106 )
Interest paid 9   (214 )   (204 )   (453 )   (381 )
Public equity offerings 10 (a)   -     -     -     46,001  
Exercise of options 10 (b)   641     1,448     2,453     1,578  
Proceeds from loans receivable     400     -     500     -  
Share issuance costs 10 (a)   -     (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  
                           
Supplemental cash flow information (Note 14)                          

The accompanying notes are an integral part of these condensed consolidated interim financial statements.


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

1. CORPORATE INFORMATION

Endeavour Silver Corp. (the "Company" or "Endeavour Silver") is a corporation governed by the Business Corporations Act (British Columbia, Canada).  The Company is engaged in silver mining in Mexico and related activities including acquisition, exploration, development, extraction, processing, refining and reclamation.  The Company is also engaged in exploration activities in Chile and United States.  The address of the registered office is #1130 - 609 Granville Street, Vancouver, B.C., V7Y 1G5. 

2. BASIS OF PRESENTATION

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and do not include all of the information required for full annual financial statements and should be read in conjunction with the Company's consolidated financial statements as at and for the year ended December 31, 2022.   

The Board of Directors approved the consolidated financial statements for issue on August 3, 2023.

The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses.  Actual results may differ from these estimates.

These consolidated financial statements are presented in the Company's functional currency of US dollars and include the accounts of the Company and its wholly owned subsidiaries: Endeavour Management Corp., Endeavour Gold Corporation S.A. de C.V., EDR Silver de Mexico S.A. de C.V. SOFOM , Minera Santa Cruz Y Garibaldi S.A de C.V., Metalurgica Guanaceví S.A. de C.V., Minera Plata Adelante S.A. de C.V., Refinadora Plata Guanaceví S.A. de C. V., Minas Bolañitos S. A. de C.V., Guanaceví Mining Services S.A. de C.V., Recursos Humanos Guanaceví S.A. de C.V., Recursos Villalpando S.A. de C.V., Servicios Administrativos Varal S.A. de C.V., Minera Plata Carina SPA, MXRT Holding Ltd., Compania Minera del Cubo S.A. de C.V., Minas Lupycal S.A. de C.V., Metales Interamericanos S.A. de C.V., Oro Silver Resources Ltd., Minera Oro Silver de Mexico S.A. de C.V. disposed of on September 9, 2022 (Note 8 (c)), Terronera Precious Metals S.A. de C.V, Minera Pitarrilla S.A. de C.V. (formerly SSR Durango S.A de C.V.), Endeavour USA Holdings and Endeavour USA Corp. All intercompany transactions and balances have been eliminated upon consolidation of these subsidiaries.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in

the Company's annual audited consolidated financial statements as at and for the year ended December 31, 2022.

In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the annual audited consolidated financial statements for the year ended December 31, 2022 and should be read in conjunction with the Company's annual audited consolidated financial statements for the year ended December 31, 2022.


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

4. OTHER INVESTMENTS

      June 30,     December 31,  
  Note   2023     2022  
Balance at beginning of the period   $ 10,035   $ 11,200  
Investment in marketable securities, at cost     -     2,305  
Proceeds from disposals     (1,846 )   -  
Loss on marketable securities     (53 )   (3,470 )
Balance at end of the period     8,136     10,035  
Less: Non-Current portion     -     1,388  
Current other investments   $ 8,136   $ 8,647  

As at June 30, 2023 the Company held $8,114 in marketable securities that are classified as Level 1 and $22 in marketable securities that are classified as Level 3 in the fair value hierarchy (Note 17). Marketable securities classified as Level 3 in the fair value hierarchy are share purchase warrants and the fair value of the warrants at each period end has been estimated using the Black-Scholes Option Pricing Model.

During the year ended December 31, 2022, the Company acquired 6,600,000 units of Max Resource Corp ("Max") through a private placement with each unit consisting of one common share and ½ share purchase warrant. At the same time, the Company entered into a collaboration agreement with Max under which acquired shares and warrants of Max have certain transfer restrictions and cannot be liquidated before March 28, 2024. Accordingly, at inception these shares and warrants were classified as non-current and are classified as such in the comparative figures.

5. ACCOUNTS AND OTHER RECEIVABLES

      June 30,     December 31,  
  Note   2023     2022  
               
Trade receivables (1)   $ 4,008   $ 4,385  
IVA receivable (2) 16   12,679     8,062  
Other receivables     880     689  
    $ 17,567   $ 13,136  

(1) The trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos mine.  The fair value of receivables arising from concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate period end closing prices on the measurement date from the exchange that is the principal active market for the particular metal.  As such, these receivables, which meet the definition of an embedded derivative, are classified within Level 2 of the fair value hierarchy (Note 17).


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

(2) The Company's Mexican subsidiaries pay value added tax, Impuesto al Valor Agregado ("IVA"), on the purchase and sale of goods and services. The net amount paid is recoverable but is subject to review and assessment by the tax authorities. The Company regularly files the required IVA returns and all supporting documentation with the tax authorities, however, the Company has been advised that certain IVA amounts receivable from the tax authorities are being withheld pending completion of the authorities' audit of certain of the Company's third-party suppliers. Under Mexican law the Company has legal rights to those IVA refunds and the results of the third-party audits should have no impact on refunds. A smaller portion of IVA refund requests are from time to time improperly denied based on the alleged lack of compliance of certain formal requirements and information returns by the Company's third-party suppliers. The Company takes necessary legal action on the delayed refunds as well as any improperly denied refunds.

These delays and denials have occurred in Refinadora Plata Guanaceví S.A. de C.V. ("Guanaceví,").  At June 30, 2023, Guanaceví holds $11,360 in IVA receivables which the Company and its advisors have determined to be recoverable from tax authorities (December 31, 2022 $6,402 respectively).

As at June 30, 2023, the total IVA receivable of $27,374 (December 31, 2022 - $18,216) has been allocated between the current portion of $12,679, which is included in accounts receivable, and a non-current portion of $14,695 (December 31, 2022 - $8,062 and $10,154 respectively).  The non-current portion is composed of Guanacevi of $1,715, which is currently under appeal and are unlikely to be received in the next 12 months.  The remaining $12,980 is IVA receivable for Terronera, which may not become recoverable until Terronera recognizes revenue for tax purposes.

The Company is in regular contact with the tax authorities in respect of its IVA filings and believes the full amount of its IVA receivables will ultimately be received; however, the timing of recovery of these amounts and the nature and extent of any adjustments to the Company's IVA receivables remains uncertain. 

6. INVENTORIES

    June 30,     December 31,  
    2023     2022  
             
Warehouse inventory(1) $ 12,651   $ 9,682  
Stockpile inventory   2,993     2,389  
Finished goods inventory   13,825     6,138  
Work in process inventory   1,062     975  
  $ 30,531   $ 19,184  

(1) The warehouse inventory balances at June 30, 2023 and December 31, 2022 are net of a write down to net realizable value of $1,179 at the Guanacevi mine and $1,038 at the Bolañitos mine.


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

7. RELATED PARTY TRANSACTIONS

The Company previously shared common administrative services and office space with a company related by virtue of a former common director and from time to time incurred third party costs on behalf of related parties on a full cost recovery basis. The agreement for sharing office space and administrative services ended in May 2022. The charges for these costs totaled $nil for the three and six months ended June 30, 2023 (June 30, 2022 - $3 and $9 respectively). The Company has a $nil net receivable related to these costs as of June 30, 2023 (December 31, 2022 - $nil).

The Company was charged $218 and $286 for legal services for the three and six months ended June 30, 2023 by a legal firm in which the Company's corporate secretary is a partner (June 2022 - $72 and $342 respectively). The Company has $131 payable to the legal firm as at June 30, 2023 (December 31, 2022 - $10).

8. MINERAL PROPERTIES, PLANT AND EQUIPMENT

(a) Mineral properties, plant and equipment comprise:

    Mineral           Machinery &           Transport &        
    properties     Plant     equipment     Building     office equipment     Total  
Cost                                    
                                     
Balance at December 31, 2021 $ 511,399   $ 98,185   $ 87,140   $ 13,445   $ 12,045   $ 722,214  
                                     
Additions   103,635     5,217     19,877     7,573     1,978     138,280  
Disposals   (14,966 )   (6,542 )   (757 )   (662 )   (746 )   (23,673 )
Balance at December 31, 2022 $ 600,068   $ 96,860   $ 106,260   $ 20,356   $ 13,277   $ 836,821  
                                     
Additions   31,460     1,508     3,143     1,244     1,248     38,603  
Disposals   (435 )   -     (417 )   -     (176 )   (1,028 )
Balance at June 30, 2023 $ 631,093   $ 98,368   $ 108,986   $ 21,600   $ 14,349   $ 874,396  
                                     
Accumulated amortization and impairment                                
                                     
Balance at December 31, 2021 $ 444,769   $ 88,208   $ 49,445   $ 9,194   $ 8,401   $ 600,017  
                                     
Amortization   14,786     2,268     5,301     346     1,205     23,906  
Disposals   (13,574 )   (6,442 )   (326 )   (159 )   (493 )   (20,994 )
Balance at December 31, 2022 $ 445,981   $ 84,034   $ 54,420   $ 9,381   $ 9,113   $ 602,929  
                                     
Amortization   10,659     902     2,923     197     801     15,482  
Disposals   -     -     (177 )   -     (145 )   (322 )
Balance at June 30, 2023 $ 456,640   $ 84,936   $ 57,166   $ 9,578   $ 9,769   $ 618,089  
                                     
Net book value                                    
At December 31, 2022 $ 154,087   $ 12,826   $ 51,840   $ 10,975   $ 4,164   $ 233,892  
At June 30, 2023 $ 174,453   $ 13,432   $ 51,820   $ 12,022   $ 4,580   $ 256,307  

Included in mineral properties is $80,039 in acquisition costs for exploration properties and $44,839 for acquisition and development costs for development properties (December 31, 2022 - $80,155 and $26,669 respectively).

As of June 30, 2023, the Company has $24,275 committed for capital equipment purchases.


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

(b) Acquisition of the Pitarrilla Project

On January 17, 2022, the Company entered into a definitive agreement to purchase the Pitarrilla project in Durango State, Mexico, by acquiring all of the issued and outstanding shares of Minera Pitarrilla S.A. de C. V. (formerly SSR Durango, S.A. de C.V.) from SSR Mining Inc. ("SSR") for total consideration of $70 million (consisting of $35 million in Company's shares and a further $35 million in cash or in the Company's shares at the election of SSR and as agreed to by the Company) and a 1.25% net smelter returns royalty. SSR retains a 1.25% NSR Royalty in Pitarrilla. Endeavour will have matching rights to purchase the NSR Royalty in the event SSR proposes to sell it.

The acquisition was completed on July 6, 2022. Total consideration included 8,577,380 shares of the Company issued on July 6, 2022 and a $35.1 million cash payment. Fair value of the 8,577,380 common shares issued on July 6, 2022 was $25,589 at CAN$3.89 per share. The deemed value of the common shares issued, at the time of agreement, was $34.9 million.  The shares are subject to a hold period of four months and one day following the date of closing.

The 4,950-hectares Pitarrilla exploration project is located in northern Mexico, consists of five concessions, has significant infrastructure in place and has access to utilities. 

The acquisition is outside the scope of IFRS 3 Business Combinations, as the Pitarrilla project did not meet the definition of a business, and as such, the transaction was accounted for as an asset acquisition.  The purchase price is allocated to the underlying assets acquired and liabilities assumed, based upon their estimated fair values at the date of acquisition. 

Pitarilla Project purchase consideration:      
       
Common shares issued $ 25,589  
Consideration paid in cash   35,067  
Acquisition costs   881  
Total consideration $ 61,537  

Fair value summary of assets acquired and liabilities assumed:      
       
Assets:      
Current assets $ 288  
Buildings and equipment   652  
Mineral properties   60,811  
Total assets $ 61,751  
       
Liabilities:      
Accounts payable and accrued liabilities   170  
Reclamation liability   44  
Total liabilities $ 214  
       
Net identifiable assets acquired $ 61,537  

(c) El Compas, Mexico

On September 9, 2022, the Company entered into an agreement to sell its 100% interest in Minera Oro Silver de Mexico, S.A. de C.V. ("MOS") to Grupo ROSGO, S.A. de C.V., ("Grupo ROSGO"). Minera Oro Silver holds the El Compas property and the lease on the La Plata processing plant in Zacatecas, Mexico.

Pursuant to the agreement, Grupo ROSGO assumed the Minera Oro Silver loan payable to the Company, in the amount of $5,000 payable in cash payments over a five year period with an initial payment of $250 and subsequent Instalment payments of $500 every six months other than the third payment, which will be $750. The payments are secured by a pledge of the shares of MOS. As of June 30, 2023, the carrying value of the loan receivable is $3,436, consisting of the current portion of $1,250 and non-current portion of $2,186 (December 31, 2022 - $1,000 and $2,729 respectively). 


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

The carrying value of the net Minera Oro Silver's net assets at the date of the sale was $1,149 resulting in the Company recording a $2,733 gain on sale.

(d) Baxter Gold

On July 18, 2023 the Company entered into a definitive agreement with Bravada Gold Corporation which grants the Company an option to earn an 85% interest in the Baxter gold and silver property ("Baxter"), by incurring $4,000 in exploration and development expenditures and paying $500 in option payments over a five-year period from the date of the agreement. Baxter is located directly north of the Company’s Bruner project in Nevada's Walker Lane Gold trend. Baxter consists of 114 unpatented lode claims (approximately 920 hectares). Upon completion of the exploration and development expenditures and payment of the option payments, the Company can exercise the option and would have the right to form a joint venture with 85% of the interest belonging to the Company.

(e) Write-off of Paloma exploration property

In December 2018, the Company signed an option agreement to acquire up to a 70% interest in the Paloma project in Antofagasta Province, Chile.  Agreement granted the Company the right to acquire its initial 51% interest by paying $750 and spending $5,000 over five years with the final payment due in 2023, followed by a second option to acquire 70% by completing a Preliminary Economic Assessment and a Preliminary Feasibility Study. In June 2023, the Company elected to not proceed with the final payment and the carrying value of $435 has been written off during the six months period ended June 30, 2023.

(f) Sale of Cozamin Royalty

On July 31, 2023, Minera Plata Adelante SA de CV (“MPA”) entered into an agreement with Gold Royalty Corp. to sell all of MPA's interest in the 1% Cozamin royalty (“Royalty”) for total consideration of US$7,500,000, payable in cash. The Royalty applies to two concessions (Calicanto and Vicochea) on Capstone’s Cozamin copper-silver mine, located 3.6 kilometres north-northwest of Zacatecas City in state of Zacatecas, Mexico. The Company obtained the Royalty through a concession division agreement signed in 2017 on seven wholly owned concessions which were acquired for $445 The Cozamin Mine, a copper-silver mine owned and operated by Capstone Copper in Zacatecas, Mexico, is located on two of the seven Concessions. The sale agreement includes an option granted to Gold Royalty Corp to purchase any additional royalties which may be granted on the five remaining concessions under the 2017 concession division agreement. The definitive agreement is subject to standard closing conditions.

9. LOANS PAYABLE

    June 30,     December 31,  
    2023     2022  
             
Balance at the beginning of the period $ 14,510   $ 10,494  
Net proceeds from software and equipment financing   -     9,070  
Finance cost   406     726  
Repayments of principal   (3,149 )   (5,054 )
Repayments of finance costs   (406 )   (726 )
Balance at the end of the period $ 11,361   $ 14,510  
             
Statements of Financial Position presentation            
Current loans payable $ 5,000   $ 6,041  
Non-current loans payable   6,361     8,469  
Total $ 11,361   $ 14,510  

The Company currently has $26,612 in financing arrangements for equipment, with terms ranging from one to four years.  The agreements require either monthly or quarterly payments of principal and interest with a weighted-average interest rate of 6.0%.

The equipment financing is secured by the underlying equipment purchased and is subject to various non-financial covenants. As at June 30, 2023 the Company was in compliance with these covenants.  As at June 30, 2023, the net book value of equipment includes $22,534 (December 31, 2022 - $24,379) of equipment pledged as security for the equipment financing.

10. SHARE CAPITAL

(a) Public Offerings

On March 22, 2022, the Company completed a prospectus equity financing with the offering co-led by BMO Capital Markets and PI Financial Corp., together with a syndicate of underwriters consisting of CIBC World Markets Inc., B. Riley Securities Inc., and H.C. Wainwright & Co., LLC. The Company issued a total of 9,293,150 common shares at a price of $4.95 per share for aggregate gross proceeds of $46,001, less commission of $2,524 and recognized $361 of other transaction costs related to the financing as share issuance costs, which have been presented net within share capital.


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

In June 2023, the Company filed a short form base shelf prospectus that qualified for the distribution of up to $200 million of common shares, debt securities, warrants or units of the Company comprising any combination of common shares and warrants (the "Securities") over a 25 month period.  The Company filed a corresponding registration statement in the United States registering the Securities under United States federal securities laws.  The distribution of Securities could be effected from time to time in one or more transactions at a fixed price or prices, which could be changed, at market prices prevailing at the time of sale, or at prices related to such prevailing market prices to be negotiated with purchasers and as set forth in an accompanying prospectus supplement, including transactions that are "At-The-Market" ("ATM") distributions. 

On June 27, 2023, the Company entered into an ATM equity facility with BMO Capital Markets (the lead agent), CIBC World Markets Inc, TD Securities (USA) LLC, National Bank of Canada Financial Inc., Raymond James (USA) Inc., B. Riley Securities Inc. and H.C. Wainwright & Co. LLC. (collectively, the "Agents").  Under the terms of this ATM facility, the Company could, from time to time, sell common stock having an aggregate offering value of up to $60 million on the New York Stock Exchange.  The Company determined, at its sole discretion, the timing and number of shares to be sold under the ATM facility. 

(b) Stock Options

Options to purchase common shares have been granted to directors, officers, employees and consultants pursuant to the Company's current stock option plan, approved by the Company's shareholders in fiscal 2009 and amended and re-ratified in 2021, at exercise prices determined by reference to the market value on the date of grant.  The stock option plan allows for, with approval by the Board, granting of options to its directors, officers, employees and consultants to acquire up to 5.0% of the issued and outstanding shares at any time. Prior to the 2021 amendment, the plan allowed for the granting of up to 7.0% of the issued

The following table summarizes the status of the Company's stock option plan and changes during the period:

Expressed in Canadian dollars   Six months ended     Year ended   
    June 30,
2023
    December 31,
2022
 
    Number of
options
    Weighted
average
exercise price
    Number of options     Weighted
average 
exercise price
 
 
                         
Outstanding, beginning of the period   3,899,630   $ 4.09     3,848,200   $ 3.68  
Granted   1,079,000   $ 4.12     736,986   $ 6.24  
Exercised   (1,097,900 ) $ 3.05     (569,200 ) $ 3.57  
Expired and forfeited   (227,839 ) $ 5.54     (116,356 ) $ 6.63  
Outstanding, end of the period   3,652,891   $ 4.32     3,899,630   $ 4.09  
                         
Options exercisable at the end of the period   2,655,777   $ 4.21     3,374,459   $ 3.74  

During the six months ended June 30, 2023, the weighted-average share price at the date of exercise was CAN$4.49 (December 31, 2022 - CAN$6.77).

The following table summarizes the information about stock options outstanding at June 30, 2023:


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)


Expressed in Canadian dollars                    
    Options  Outstanding     Options Exercisable  
    Number     Weighted Average     Weighted
Average
    Number
Exercisable
    Weighted
Average
 
    Outstanding     Remaining  
Price   as at     Contractual Life     Exercise     as at     Exercise  
Intervals   June 30, 2023     (Number of Years)     Price     June 30, 2023     Price  
                               
$2.00 - $2.99   960,600     1.7   $ 2.14     960,600   $ 2.14  
$3.00 - $3.99   442,400     0.7   $ 3.23     442,400   $ 3.23  
$4.00 - $4.99   976,600     4.7   $ 4.12     213,400   $ 4.12  
$5.00 - $5.99   60,000     2.2   $ 5.60     60,000   $ 5.60  
$6.00 - $6.99   1,213,291     3.2   $ 6.55     979,377   $ 6.63  
    3,652,891     2.9   $ 4.32     2,655,777   $ 4.21  

During the three and six months ended June 30, 2023, the Company recognized share-based compensation expense of $331 and $946 respectively (June 30, 2022 - $495 and $1,105 respectively) based on the fair value of the vested portion of options granted in the current and prior years.

The weighted-average fair values of stock options granted and the assumptions used to calculate the related compensation expense have been estimated using the Black-Scholes Option Pricing Model with the following assumptions:

 

Six months ended

 

June 30,
2023

June 30,
2022

Weighted-average fair value of options in CAN$

$2.21

$3.17

Risk-free interest rate

3.84%

2.19%

Expected dividend yield

0%

0%

Expected stock price volatility

70%

67%

Expected options life in years

3.79

3.80

(c) Share Units Plan

On March 23, 2021 the Company adopted an equity-based Share Unit Plan ("SUP"), which was approved by the Company's shareholders on May 12, 2021. The SUP allows for, with approval by the Board, granting of Performance Share Units ("PSU"s) and Deferred Share Units ("DSU"s), to its directors, officers, employees to acquire up to 1.5% of the issued and outstanding shares. The SUP incorporates any new PSUs and DSUs granted and are to be subject to cash, share settlement or a combination of cash and share procedures at the discretion of the Board of Directors.

Performance Share Units

The PSUs granted are subject to a performance payout multiplier between 0% and 200% based on the Company's total shareholder return at the end of a three-year period, relative to the total shareholder return of the Company's peer group. 

    Six months ended     Year ended   
    June 30,
2023
    December 31,
2022
 
    Number of units     Number of units  
             
Outstanding, beginning of period   1,158,000     1,639,000  
Granted   471,000     316,000  
Cancelled   (140,000 )   -  
Settled   (611,000 )   (797,000 )
Outstanding, end of period   878,000     1,158,000  

There were 471,000 PSUs granted during the six months ended June 30, 2023 (June 30, 2022 - 316,000) under the SUP.  The PSUs vest at the end of a three-year period if certain pre-determined performance and vesting criteria are achieved. Performance criteria are based on the Company's share price performance relative to a representative group of other mining companies. 194,000 PSUs vest on March 4, 2024, 215,000 PSUs vest on March 24, 2025, 60,000 PSUs vest on or before June 30, 2024, and 409,000 PSUs vest on March 7, 2026.


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

On March 2, 2023, PSUs granted in 2020 vested with a payout multiplier of 200% based on the Company's shareholder return, relative to the total shareholder return of the Company's peer group over the three-year period and 205,918 PSUs were settled, through the issuance of 411,836 common shares and 405,082 PSUs were settled for $2,413 cash.

On August 16, 2022, vesting was accelerated on a pro-rata basis for 195,000 PSUs granted in 2020 and 67,000 PSUs granted in 2021. During the six months ended June 30, 2023, 350,829 shares were issued for the settlement of these PSUs.

During the three and six months ended June 30, 2023, the Company recognized share-based compensation expense of $67 and $462 respectively related to the PSUs (June 30, 2022 - $466 and 893 respectively).

Deferred Share Units

The DSUs granted are vested immediately and are redeemable for shares at the time of a director's retirement.

    Six months ended      Year ended  
    June 30, 2023     December 31, 2022  
    Number of units     Number of units  
             
Outstanding, beginning of period   104,596     -  
Granted   209,237     109,634  
Settled for shares   -     (5,038 )
Outstanding, end of period   313,833     104,596  

There were 209,237 DSUs granted during the six months ended June 30, 2023 (June 30, 2022 - 101,862) under the SUP. During the three and six months ended June 30, 2023, the Company recognized share-based compensation expense of $16 and $632 respectively related to the DSUs (June 30, 2022 - $488 and $12 respectively).

(d) Deferred Share Units - Cash Settled

The Company previously had a Deferred Share Unit ("DSU") plan whereby deferred share units were granted to independent directors of the Company in lieu of compensation in cash or share purchase options. These DSUs vested immediately and are redeemable for cash, based on the market value of the units at the time of a director's retirement. Upon adoption of the SUP plan in March 2021, no new DSUs will be granted under this cash settled plan.

Expressed in Canadian dollars   Six months ended      Year ended  
    June 30,
2023
    December 31,
2022
 
    Number
of Units
    Weighted Average
Grant Price
    Number
of Units
    Weighted Average
Grant Price
 
 
                         
Outstanding, beginning of period   1,044,204   $ 3.19     1,348,765   $ 3.24  
Redeemed   -   $ 0.00     (304,561 ) $ 3.41  
Outstanding, end of period   1,044,204   $ 3.19     1,044,204   $ 3.19  
                         
Fair value at period end   1,044,204   $ 3.85     1,044,204   $ 4.38  

During the three and six months ended June 30, 2023, the Company recognized a mark to market recovery on director's compensation related to these DSUs, which is included in general and administrative salaries, wages and benefits, of $994 and $341 respectively (June 30, 2022 - a mark to market recovery of $1,614 and $989 respectively) based on the fair value of new grants and the change in the fair value of the DSUs granted in the current and prior years.  As of June 30, 2023, there are 1,044,204 deferred share units outstanding (December 31, 2022 - 1,044,204) with a fair market value of $3,034 (December 31, 2022 - $3,375) recognized in accounts payable and accrued liabilities.


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

(e) Share Appreciation Rights

As part of the Company's bonus program, the Company may grant share appreciation rights ("SARs") to its employees in Mexico and Chile.  The SARs are subject to vesting conditions and, when exercised, constitute a cash bonus based on the value of the appreciation of the Company's common shares between the SARs grant date and the exercise date. 

    Six months ended     Year ended   
    June 30,
2023
    December 31,
2022
 
    Number
of Units
    Weighted Average
Grant Price
    Number
of Units
    Weighted Average
Grant Price
 
 
                         
Outstanding, beginning of period   181,739   $ 5.12     113,670   $ 5.40  
Granted   -   $ 0.00     148,030   $ 4.62  
Exercised   -   $ 0.00     (5,726 ) $ 3.17  
Cancelled   (51,405 ) $ 5.15     (74,235 ) $ 4.72  
Outstanding, end of period   130,334   $ 5.10     181,739   $ 5.12  
                         
Exercisable at the end of the period   96,823   $ 5.15     101,066   $ 5.18  

During the three and six months ended June 30, 2023, the Company recognized a recovery related to SARs, which is included in operation and exploration salaries, wages and benefits, of $15 and $10 respectively (June 30, 2022 -expense of $30 and $4 respectively) based on the change in the fair value of the SARs granted in prior years.  As of June 30, 2023, there are 130,334 SARs outstanding (December 31, 2022 - 181,739) with a fair market value of $97 (December 31, 2022 - $111) recognized in accounts payable and accrued liabilities.

(f) Diluted Earnings per Share

    Three months ended     Six months ended  
    June 30,
2023
    June 30,
2022
    June 30,
2023
    June 30,
2022
 
                         
Net earnings $ (1,634 ) $ (11,923 ) $ 4,822   $ (261 )
Basic weighted average number of shares outstanding   191,446,597     180,974,609     190,867,192     176,291,929  
Effect of dilutive securities:                        
  Stock options   -     -     752,706     -  
  Equity settled deferred share units   -     -     878,000     -  
  Performance share units   -     -     313,833     -  
Diluted weighted average number of share outstanding   191,446,597     180,974,609     192,811,732     176,291,929  
                         
Diluted earnings per share $ (0.01 ) $ (0.07 ) $ 0.03   $ (0.00 )

As of June 30, 2023, there are 2,900,185 anti-dilutive stock options (June 30, 2022 - 2,822,240). 


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

11. REVENUE

    Three months ended     Six months ended  
    June 30,     June 30,     June 30,     June 30,  
    2023     2022     2023     2022  
                         
Silver sales (1) $ 31,544   $ 13,698   $ 70,164   $ 55,582  
Gold sales (1)   19,322     18,021     36,819     34,531  
Less: smelting and refining costs   (795 )   (937 )   (1,451 )   (1,591 )
Revenue $ 50,071   $ 30,782   $ 105,532   $ 88,522  

(1) Changes in fair value from provisional pricing in the period are included in silver and gold sales.

      Three months ended     Six months ended  
      June 30,     June 30,     June 30,     June 30,  
      2023     2022     2023     2022  
Revenue by product                        
  Concentrate sales $ 13,960   $ 16,117   $ 25,745   $ 30,578  
  Provisional pricing adjustments   (342 )   (587 )   (589 )   43  
Total revenue from concentrate sales   13,618     15,530     25,156     30,621  
Refined metal sales   36,453     15,252     80,376     57,901  
Total revenue $ 50,071   $ 30,782   $ 105,532   $ 88,522  

Provisional pricing adjustments on sales of concentrate consist of provisional and final pricing adjustments made prior to the finalization of the sales contract.  The Company's sales contracts are provisionally priced with provisional pricing periods lasting typically one to three months with provisional pricing adjustments recorded to revenue as market prices vary.


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

12. EXPLORATION AND EVALUATION

    Three months ended     Six months ended  
    June 30,
2023
    June 30,
2022
    June 30,
2023
    June 30,
2022
 
                         
Depreciation and depletion $ 317   $ 98   $ 595   $ 205  
Share-based compensation   112     117     243     211  
Exploration salaries, wages and benefits   991     401     1,420     1,093  
Direct exploration expenditures   1,508     1,021     3,054     1,812  
Evaluation salaries, wages and benefits   561     524     1,006     1,145  
Direct evaluation expenditures   870     1,623     2,205     2,534  
  $ 4,359   $ 3,784   $ 8,523   $ 7,000  

13. GENERAL AND ADMINISTRATIVE

    Three months ended     Six months ended  
    June 30,     June 30,     June 30,     June 30,  
    2023     2022     2023     2022  
                         
Depreciation and depletion $ 54   $ 51   $ 116   $ 99  
Share-based compensation   599     741     1,960     2,047  
Salaries, wages and benefits   993     983     2,160     2,215  
Directors' DSU recovery   (994 )   (1,614 )   (341 )   (989 )
Direct general and administrative   1,706     1,187     3,380     2,273  
  $ 2,358   $ 1,348   $ 7,275   $ 5,645  

14. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

    Three months ended      Six months ended   
    June 30,     June 30,     June 30,     June 30,  
    2023     2022     2023     2022  
                         
Net changes in non-cash working capital:                        
Accounts and other receivables $ (4,597 ) $ 2,087   $ (8,972 ) $ 2,296  
Income tax receivable   1,695     1,042     3,858     1,042  
Inventories   (6,200 )   8,718     (9,293 )   6,424  
Prepaid expenses   (367 )   6,024     (1,749 )   6,431  
Accounts payable and accrued liabilities   251     6,379     (4,025 )   5,616  
Income taxes payable   2,612     (2,094 )   673     (767 )
  $ (6,606 ) $ 22,156   $ (19,508 ) $ 21,042  
                         
Non-cash financing and investing activities:                        
Reclamation included in mineral properties,
plant and equipment
$ (209 ) $ -   $ (645 ) $ -  
Fair value of exercised options allocated to share capital $ (359 ) $ (706 ) $ (1,305 ) $ (755 )
Fair value of performance share units allocated to
share capital
$ -   $ -   $ (405 ) $ (806 )
Fair value of capital assets acquired under finance leases $ -   $ 1,496   $ -   $ 4,374  
                         
Other cash disbursements:                        
    Income taxes paid $ 670   $ 98   $ 2,529   $ 451  
    Special mining duty paid $ 139   $ -   $ 2,654   $ 2,272  


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

15. SEGMENT DISCLOSURES

The Company's operating segments are based on internal management reports that are reviewed by the Company's executives (the chief operating decision makers) in assessing performance.  The Company has two operating mining segments which are located in Mexico, Guanaceví and Bolañitos, and the El Compas mine which was on care and maintenance until the sale of the mine on September 9, 2022. The Company has one development project in Mexico, Terronera, as well as Exploration and Corporate segments.  The Exploration segment consists of projects in the exploration and evaluation phases in Mexico, Chile and the USA.  Exploration projects that are in the local district surrounding a mine are included in the mine's segments.  Comparative period figures related to Terronera, previously reported as part of the exploration segment have been reclassified to conform with current period's presentation.

June 30, 2023
    Corporate     Exploration     Guanaceví     Bolanitos     Terronera     Total  
                                     
Cash and cash equivalents $ 21,148   $ 860   $ 13,944   $ 5,140   $ 2,412   $ 43,504  
Other investments   8,136     -     -     -     -     8,136  
Accounts and other receivables   1,029     646     10,859     5,022     11     17,567  
Loans receivable   3,436     -     -     -     -     3,436  
Income tax receivable   19     -     97     49     1     166  
Inventories   137           24,407     5,959     28     30,531  
Prepaid expenses   3,253     394     1,297     432     20,148     25,524  
Non-current deposits   231     2     334     93     -     660  
Non-current income tax receivable   3,570     -     -     -     -     3,570  
Non-current IVA receivable   -     -     1,715     -     12,980     14,695  
Right-of-use leased assets   461     -     -     220     233     914  
Mineral properties, plant and equipment   529     81,577     70,314     27,155     76,732     256,307  
Total assets $ 41,949   $ 83,479   $ 122,967   $ 44,070   $ 112,545   $ 405,010  
                                     
Accounts payable and accrued liabilities $ 6,689   $ 635   $ 15,886   $ 5,072   $ 7,437   $ 35,719  
Income taxes payable   -     -     6,246     1,043     -     7,289  
Loans payable   -     -     538     1,114     9,709     11,361  
Lease obligations   736     -     -     258     247     1,241  
Provision for reclamation and rehabilitation   -     44     4,847     3,787     896     9,574  
Deferred income tax liability   -     -     15,089     297     -     15,386  
Other non-current liabilities   -     10     526     514     13     1,063  
Total liabilities $ 7,425   $ 689   $ 43,132   $ 12,085   $ 18,302   $ 81,633  


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)


December 31, 2022  
    Corporate     Exploration     Guanaceví     Bolanitos     Terronera     Total  
Cash and cash equivalents $ 38,466   $ 1,935   $ 32,997   $ 7,371   $ 2,622   $ 83,391  
Other investments   10,035     -     -     -     -     10,035  
Accounts and other receivables   383     669     5,824     6,246     14     13,136  
Loans receivable   3,729     -     -     -     -     3,729  
Income tax receivable   17     -     3,934     73     -     4,024  
Inventories   120     -     14,094     4,942     28     19,184  
Prepaid expenses   1,685     144     1,155     536     13,431     16,951  
Non-current deposits   150     2     321     92     -     565  
Non-current IVA receivable   -     -     1,505     -     8,649     10,154  
Non-current income tax receivable   3,570     -     -     -     -     3,570  
Right-of-use leased assets   512     -     -     294     -     806  
Mineral properties, plant and equipment   616     81,660     67,261     28,106     56,249     233,892  
Total assets $ 59,283   $ 84,410   $ 127,091   $ 47,660   $ 80,993   $ 399,437  
                                     
Accounts payable and accrued liabilities $ 6,837   $ 743   $ 19,875   $ 5,327   $ 7,049   $ 39,831  
Income taxes payable   65     282     5,539     730     -     6,616  
Loans payable   -     -     1,025     2,092     11,393     14,510  
Lease obligations   780     -     293     -     -     1,073  
Provision for reclamation and rehabilitation   -     44     4,103     3,203     251     7,601  
Deferred income tax liability   -     -     12,647     297     -     12,944  
Other non-current liabilities   -     69     443     437     19     968  
Total liabilities $ 7,682   $ 1,138   $ 43,925   $ 12,086   $ 18,712   $ 83,543  


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and six months ended June 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)


Three months ended June 30, 2023  
    Corporate     Exploration     Guanaceví     Bolanitos     Terronera     Total  
Silver revenue $ -   $ -   $ 27,983   $ 3,560   $ -   $ 31,543  
Gold revenue   -     -     8,469     10,853     -     19,322  
Less: smelting and refining costs   -     -     -     794     -     (794 )
Total revenue $ -   $ -   $ 36,452   $ 13,619   $ -   $ 50,071  
                                     
  Salaries, wages and benefits:                                    
        mining $ -   $ -   $ 2,468   $ 2,554   $ -   $ 5,022  
        processing   -     -     1,090     691     -     1,781  
        administrative   -     -     1,879     846     -     2,725  
        share-based compensation   -     -     (147 )   (147 )   -     (294 )
        change in  inventory   -     -     (1,592 )   (21 )   -     (1,613 )
Total salaries, wages and benefits   -     -     3,698     3,923     -     7,621  
                                     
  Direct costs:                                    
        mining   -     -     7,288     3,364     -     10,652  
        processing   -     -     5,029     1,815     -     6,844  
        administrative   -     -     2,381     1,330     -     3,711  
        change in  inventory   -     -     (3,665 )   21     -     (3,644 )
Total direct production costs   -     -     11,033     6,530     -     17,563  
                                     
  Depreciation and depletion:                                    
        depreciation and depletion   -     -     4,436     3,186     -     7,622  
        change in inventory   -     -     (1,055 )   29     -     (1,026 )
Total depreciation and depletion   -     -     3,381     3,215     -     6,596  
                                     
  Royalties   -     -     5,679