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 November 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: November 7, 2023     /s/ DAN DICKSON    
  Dan Dickson
  CEO
  


EXHIBIT INDEX 

Exhibit Number Description
   
99.1 Press Release dated November 7, 2023

EXHIBIT 99.1

Endeavour Silver Announces Q3 Financial Results; Earnings Conference Call at 10am PST (1pm EST) Today

VANCOUVER, British Columbia, Nov. 07, 2023 (GLOBE NEWSWIRE) -- Endeavour Silver Corp. (“Endeavour” or the “Company”) (NYSE: EXK; TSX: EDR) announces its unaudited financial and operating results for the three and nine months ended September 30, 2023. All amounts reported are in United States (US) dollars.

“Our third quarter was challenging on a number of fronts, marking the lowest quarterly production for the Company in over two years. We were negatively impacted by several factors, however reduced productivity at Guanacevi is what led to a production shortfall. This reduced productivity was the result of mine sequencing changes that were initiated to improve access and ventilation, which have resulted in a significant reduction in ore grades. These lower silver and gold grades, combined with lower precious metals prices, a stronger Mexican Peso, and increased operating development and maintenance and repairs, have negatively impacted our financial performance this quarter.” stated Dan Dickson, Chief Executive Officer. “With mine sequencing back on track in Q4, we are now mining in wider, higher-grade areas of the orebody, which has significantly improved mine output and grades. While there is never a good time for these corrective measures to be taken, especially with additional macro pressures, they were necessary, and we have already seen the benefits from the actions implemented in the third quarter.”

Q3 2023 Highlights

  • Production Tracking In-Line with Guidance: 1,148,735 ounces (oz) of silver and 9,089 oz of gold for 1.9 million oz silver equivalent (AgEq) (1), totaling 6.5 million AgEq oz for the 9 months ended September 30, 2023.
  • Revenue: $49.4 million from the sale of 1,370,032 oz of silver and 8,760 oz of gold at average realized prices of $23.99 per oz silver and $1,948 per oz gold.
  • Cash Flow: $3.3 million in operating cash flow before working capital changes(2) and $10.6 million in Mine operating cash flow before taxes(2).
  • Negative Earnings: Net loss of $2.3 million, or $0.01 per share. Adjusted net loss of $7.4 million(2) after adjusting for a $7.0 million gain on disposal of the Cozamin royalty and a $1.9 million reduction in the fair value of investments.
  • Significant Production Shortfall at Guanacevi, Among Other Items, Resulted in Escalated Costs: Cash costs(2) of $17.94 per oz payable silver and all-in sustaining costs(2) of $29.64 per oz payable silver, net of gold credits.   Cost metrics were significantly impacted by lower production at the Guanacevi mine and increased operating development resulting from mine sequencing changes required to focus on improved access and ventilation as well as plant maintenance required during the last week of September. Macro pressures such as inflation, and a strengthened Mexican Peso also contributed to higher costs.
  • Management Continues to Monitor Costs: Additional repair work related to the plant shut down continued for the first week of Q4 and increased operating development continued into Q4 to access high grade ore and open more stopes. Although cost pressures will continue, management anticipates that cost metrics will improve as productivity and production will return to expected levels.
  • Healthy Balance Sheet: Cash position of $41.0 million and working capital(2) of $75.9 million. Cash decreased as funds were spent on development activities at Terronera. During Q3, 2023 the Company raised gross proceeds of $23.4 million through equity issuances, primarily to fund these activities.
  • Construction and Development Update at Terronera: The Company has made significant progress on development activities, with overall construction progress 38% complete. The project remains on schedule for initial production in Q4 2024. (see news release dated October 26, 2023)
  • Obtained US$120 Million Project Financing for Terronera: Societe Generale and ING Capital LLC (together with ING Bank N.V.) have signed a definitive credit agreement for a senior secured debt facility of US$120 million (see news release dated October 10, 2023).

Financial Overview (see appendix for consolidated financial statements)

Three Months Ended September 30Q3 2023 HighlightsNine Months Ended September 30
20232022% Change20232022% Change
   Production   
1,148,7351,458,448(21%)Silver ounces produced4,266,2804,132,6103%
9,0899,194(1%)Gold ounces produced28,25027,1784%
1,140,5971,445,880(21%)Payable silver ounces produced4,231,0644,095,6963%
8,9299,039(1%)Payable gold ounces produced27,74926,7054%
1,875,8552,193,968(14%)Silver equivalent ounces produced(1)6,526,2806,306,8503%
17.9410.3274%Cash costs per silver ounce(2)13.8010.2135%
24.1014.3168%Total production costs per ounce(2)18.8514.5630%
29.6420.2746%All-in sustaining costs per ounce (2)23.4120.2416%
214,270202,7456%Processed tonnes653,918610,2537%
152.04131.6116%Direct operating costs per tonne(2)140.76128.999%
176.37146.3021%Direct costs per tonne(2)171.78147.6516%
20.0313.1253%Silver co-product cash costs(2)17.0914.1521%
1,6261,14442%Gold co-product cash costs(2)1,3961,16320%
   Financial   
49.539.725%Revenue ($ millions)155.0128.221%
1,370,0321,327,3253%Silver ounces sold4,337,1123,647,98719%
8,7608,852(1%)Gold ounces sold27,76927,0253%
23.9919.2425%Realized silver price per ounce23.7522.247%
1,9481,67816%Realized gold price per ounce1,9401,8276%
(2.3)(1.5)(55%)Net earnings (loss) ($ millions)3.1(1.8)275%
(7.4)(3.1)(135)Adjusted net earnings (loss) (2) ($ millions)(1.9)(1.1)(70%)
2.75.1(48)Mine operating earnings ($ millions)31.329.95%
10.612.3(14%)Mine operating cash flow before taxes ($ millions)(2)51.847.89%
3.37.3(55%)Operating cash flow before working capital changes(2)27.231.6(14%)
8.87.911%EBITDA(2) ($ millions)39.529.235%
75.9101.6(25%)Working capital (2) ($ millions)75.9101.6(25%)
   Shareholders   
(0.01)(0.01)0%Earnings (loss) per share – basic ($)0.02(0.01)300%
(0.04)(0.02)(100%)Adjusted earnings (loss) per share – basic ($)(2)(0.01)(0.01)0%
0.020.04(50%)Operating cash flow before working capital changes per share(2)0.140.17(18%)
194,249,283189,241,3673%Weighted average shares outstanding192,003,752180,655,8426%
 
(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 September 30, 2023, revenue increased by 25% to $49.5 million (Q3 2022: $39.7 million).

Gross sales of $49.9 million in Q3 2023 represented a 24% increase over the $40.3 million in Q3 2022. Silver oz sold increased by 3%, primarily due to the timing of silver sales with less silver withheld during the current quarter offsetting the decrease in silver production.   Compared to Q3, 2022, there was a 25% increase in the realized silver price resulting in a 29% increase in silver sales. Gold oz sold decreased 1% with a 16% increase in realized gold prices resulting in a 15% increase in gold sales. The decrease in gold ounces sold is primarily driven by the 1% decrease in gold production as gold inventory levels are comparable. During the period, the Company sold 1,370,032 oz silver and 8,760 oz gold, for realized prices of $23.99 and $1,948 per oz, respectively, compared to sales of 1,327,325 oz silver and 8,852 oz gold, for realized prices of $19.24 and $1,678 per oz, respectively, in the same period of 2022. For the three months ended September 30, 2023, the realized prices of silver and gold were within 2% of the London spot prices. Silver and gold London spot prices averaged $23.57 and $1,928, respectively, during the three months ended September 30, 2023.

The Company decreased its finished goods to 424,217 oz silver and slightly increased its finished goods gold inventory to 1,689 oz gold at September 30, 2023 compared to 637,439 oz silver and 1,519 oz gold at June 30, 2023. The cost allocated to these finished goods was $11.0 million as at September 30, 2023, compared to $13.8 million at June 30, 2023.   At September 30, 2023, the finished goods inventory fair market value was $12.9 million, compared to $17.6 million at June 30, 2023.  

After cost of sales of $46.7 (Q3 2022: $34.5 million), an increase of 35%, mine operating earnings were $2.8 million (Q3 2022: $5.1 million). The increase in the cost of sales compared to the prior period was driven by a strengthened Mexican peso and higher labour, power and consumables costs as the Company, as well the industry, has experienced significant inflationary pressures. Additionally, the Company incurred increased royalty costs during Q3, 2023 compared to the prior period. At Guanacevi additional operating development, decreased mine productivity, an increase in the purchase of third-party ore and additional repair costs associated with the plant shutdown also negatively impacted costs. Including royalties and special mining duty, direct costs per tonne increased 21% to $176.37. Compared to Q3, 2022, royalties have increased 77% from $2.8 million to $4.8 million with the increase occurring at Guanaceví. At Guanaceví the increase in royalty expense recognized during Q3, 2023 is due to the increase in production coming from concessions subject to royalties and an increase in the realized silver price. The royalty increased to 13% from 9% when the realized silver price crossed a price threshold of $20 per oz.

The Company had an operating loss of $3.8 million (Q3 2022: $1.3 million) after exploration and evaluation costs of $4.2 million (Q3 2022: $4.0 million) and general and administrative expense of $2.4 million (Q3 2022: $2.2 million). In the three months ended September 30, 2022, the operating loss also included $0.2 million in care and maintenance costs related to the suspension of the operations at the El Compas mine.

Earnings before income taxes was $$0.8 million (Q3, 2022: $1.7 million) after a gain on the sale of the Cozamin Royalty of $7.0 million (Q3 2022: $2.8 million, finance costs of $0.3 million (Q3 2022: $0.3 million), a foreign exchange loss of $0.4 million (Q3 2022: foreign exchange gain of $0.8 million) and investment and other expenses of $1.6 million (Q3 2022: $0.3 million).

The Company realized a net loss for the period of $2.3 million (Q3 2022: $1.5 million) after an income tax expense of $3.1 million (Q3, 2022: $3.2 million). Current income tax expense decreased to $3.1 million (Q3 2022: $3.2 million) due to decreased profitability impacting the income tax and special mining duty, while deferred income tax expense of $0.9 million is derived from changes in temporary timing differences between deductions for accounting versus deductions for tax (Q3 2022: $2.0 million).

Direct operating costs(2) on a per tonne basis increased to $152.04, up 16% compared with Q3 2022 due to both a strengthening of the Mexican peso and higher operating costs at both Guanacevi and Bolanitos from inflationary pressure during the lasts half 2022 and into 2023. As the Mexican peso strengthens, the Company’s Mexican peso denominated costs are increased in US dollar terms. Guanacevi and Bolanitos have experienced increased labour, power and consumables costs. Additionally, the Company incurred increased royalty costs during Q3, 2023 compared to the prior period. At Guanacevi additional operating development, decreased mine productivity, an increase in the purchase of third-party ore and additional repair costs associated with the plant shutdown also negatively impacted costs

Consolidated cash costs per oz(2), net of by-product credits, increased to $17.94 primarily driven by a reduction in silver production, an increase in direct operating costs, an increase in royalties and special mining duties which are partially offset by an increase in by-product gold sales. AISC(2) increased by 46% on a per oz basis compared to Q2 2023 due to the increase in cash costs and decreased silver production.

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 Q3 2023 financial results will be held today at 10:00 a.m. PST / 1:00 p.m. EST. To participate in the conference call, please dial the numbers below.

Date & Time:Tuesday, November 7, 2023 at 10:00 a.m. PST / 1:00 p.m. EST
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 0484#. 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.

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 September 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 September 30, 2023 MD&A available on SEDAR at www.sedar.com.

Reconciliation of Working Capital
Expressed in thousands US dollars As at September 30, 2023As at December 31, 2022
Current assets $131,436  $146,333 
Current liabilities 55,487  52,749 
Working capital $75,949  $93,584 
     
Reconciliation of Adjusted Net Earnings (Loss) and Adjusted Net Earnings (Loss) Per Share
Expressed in thousands US dollars Three Months Ended September 30Nine Months Ended September 30
(except for share numbers and per share amounts)2023 2022 2023 2022 
Net earnings (loss) for the period per financial statements($2,328) ($1,499) $3,074 ($1,760) 
Gain on sale of Cozamin royalty(6,990) - (6,990) - 
Gain on disposal of El Compas mine and equipment, net of tax- (2,733) - (2,733) 
Change in fair value of investments1,944 1,097 1,997 3,366 
Adjusted net earnings (loss)($7,374) ($3,135) ($1,919) ($1,127) 
Basic weighted average share outstanding194,249,283 189,241,367 192,003,752 180,655,842 
Adjusted net earnings (loss) per share($0.04) ($0.02) ($0.01) ($0.01) 
     
Reconciliation of Mine Operating Cash Flow Before Taxes
Expressed in thousands US dollars Three Months Ended September 30Nine Months Ended September 30
 2023 2022 2023 2022 
Mine operating earnings per financial statements$2,692 $5,129 $31,259 $29,870 
Share-based compensation44 113 (118) 353 
Amortization and depletion7,855 5,753 20,704 16,234 
Write down of inventory to net realizable value- 1,323 - 1,323 
Mine operating cash flow before taxes$10,591 $12,318 $51,845 $47,780 
     
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 September 30Nine Months Ended September 30
(except for per share amounts)2023 2022 2023 2022 
Cash from (used in) operating activities per financial statements$613 $7,417 $5,065 $10,602 
Net changes in non-cash working capital per financial statements(2,650) 85 (22,158) (20,957) 
Operating cash flow before working capital changes$3,263 $7,332 $27,223 $31,559 
Basic weighted average shares outstanding194,249,283 189,241,367 192,003,752 180,655,842 
Operating cash flow before working capital changes per share$0.02 $0.04 $0.14 $0.17 
     
Reconciliation of EBITDA and Adjusted EBITDA
Expressed in thousands US dollars Three Months Ended September 30Nine Months Ended September 30
 2023 2022 2023 2022 
Net earnings (loss) for the period per financial statements($2,328) ($1,499) $3,074 ($1,760) 
Depreciation and depletion – cost of sales7,855 5,753 20,704 16,234 
Depreciation and depletion – exploration(147) 143 448 348 
Depreciation and depletion – general & administration63 57 179 156 
Depreciation and depletion – care & maintenance- 10 - 70 
Finance costs170 194 658 583 
Current income tax expense2,250 1,186 11,137 3,526 
Deferred income tax expense888 2,053 3,330 10,027 
EBITDA$8,751 $7,897 $39,530 $29,184 
Share based compensation863 760 2,904 3,259 
Gain on sale of Cozamin royalty(6,990) - (6,990) - 
Gain on disposal of El Compas mine and equipment, net of tax- (2,733) - (2,733) 
Change in fair value of investments1,944 1,097 1,997 3,366 
Adjusted EBITDA$4,568 $7,021 $37,441 $33,076 


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 September 30, 2023Three Months Ended September 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Direct production costs per financial statements$23,863$10,157$34,020$15,156$9,354$24,510
Smelting and refining costs included in net revenue-494494-744744
Opening finished goods(10,257)(962)(11,219)(16,164)(681)(16,845)
Closing finished goods8,6276569,28318,08019518,275
Direct operating costs22,23310,34532,57817,0729,61226,684
Royalties4,754674,8212,762592,821
Special mining duty30685391241(85)156
Direct costs27,29310,49737,79020,0759,58629,661
By-product gold sales(5,326)(11,737)(17,063)(5,237)(9,615)(14,852)
Opening gold inventory fair market value1,6291,2682,8974,6621,0615,723
Closing gold inventory fair market value(2,345)(815)(3,160)(5,368)(240)(5,608)
Cash costs net of by-product21,251(787)20,46414,13279214,924
Amortization and depletion4,6843,1717,8553,1192,6345,753
Share-based compensation3113445657113
Opening finished goods depreciation and depletion(2,318)(288)(2,606)(3,733)(199)(3,932)
Closing finished goods depreciation and depletion1,5092221,7313,776603,836
Total production costs$25,157$2,331$27,488$17,350$3,344$20,694
       
 Three Months Ended September 30, 2023Three Months Ended September 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Throughput tonnes103,345110,925214,27097,728105,017202,745
Payable silver ounces1,038,087102,5101,140,5971,328,193117,6871,445,880
Cash costs per silver ounce$20.47($7.68)$17.94$10.64$6.73$10.32
Total production costs per ounce$24.23$22.74$24.10$13.06$28.41$14.31
Direct operating costs per tonne$215.13$93.26$152.04$174.69$91.53$131.61
Direct costs per tonne$264.10$94.63$176.37$205.42$91.28$146.30
       
Expressed in thousands US dollars Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Direct production costs per financial statements$56,886$29,128$86,014$40,837$30,222$71,059
Smelting and refining costs included in net revenue-1,9451,945-2,3352,335
Opening finished goods(4,953)(245)(5,198)(10,093)(2,857)(12,950)
Closing finished goods8,6276569,28318,08019518,275
Direct operating costs60,56031,48492,04448,82429,89578,719
Royalties16,90420117,1059,1242089,332
Special mining duty2,8003793,1791,7672862,053
Direct costs80,26432,064112,32859,71530,38990,104
By-product gold sales(22,228)(31,654)(53,882)(15,978)(33,405)(49,383)
Opening gold inventory fair market value2,7403543,0941,9004,7846,684
Closing gold inventory fair market value(2,345)(815)(3,160)(5,368)(240)(5,608)
Cash costs net of by-product58,431(51)58,38040,2691,52841,797
Amortization and depletion11,5399,16520,7047,9698,26516,234
Share-based compensation(50)(68)(118)176177353
Opening finished goods depreciation and depletion(862)(60)(922)(1,965)(635)(2,600)
Closing finished goods depreciation and depletion1,5092221,7313,776603,836
Total production costs$70,567$9,208$79,775$50,225$9,395$59,620
       
 Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Throughput tonnes322,628331,290653,918292,998317,255610,253
Payable silver ounces3,822,057409,0074,231,0643,649,209446,4874,095,696
Cash costs per silver ounce$15.29($0.12)$13.80$11.03$3.42$10.21
Total production costs per ounce$18.46$22.51$18.85$13.76$21.04$14.56
Direct operating costs per tonne$187.71$95.03$140.76$166.64$94.23$128.99
Direct costs per tonne$248.78$96.79$171.78$203.81$95.79$147.65
       
Expressed in thousands US dollars September 30, 2023September 30, 2022
GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Closing finished goods8,6276569,28318,08019518,275
Closing finished goods depletion1,5092221,7313,776603,836
Finished goods inventory$10,136$878$11,014$21,856$255$22,111


Reconciliation of All-In Costs Per Ounce and AISC per ounce
Expressed in thousands US dollars Three Months Ended September 30, 2023Three Months Ended September 30, 2022
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Cash costs net of by-product$21,251($787)$20,464$14,132$792$14,924
Operations share-based compensation3113445657113
Corporate general and administrative1,0875141,6011,2004141,614
Corporate share-based compensation475219694405125530
Reclamation - amortization/accretion77691466452116
Mine site expensed exploration362339701316305621
Equipment loan payments189489678245489734
Capital expenditures sustaining6,6972,7879,4847,2123,43910,651
All-In-Sustaining Costs$30,169$3,643$33,812$23,629$5,674$29,303
Growth exploration and evaluation  3,476  3,142
Growth capital expenditures  22,252  6,240
All-In-Costs  $59,540  $38,685
       
 Three Months Ended September 30, 2023Three Months Ended September 30, 2022
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Throughput tonnes103,345110,925214,27097,728105,017202,745
Payable silver ounces1,038,087102,5101,140,5971,328,193117,6871,445,880
Silver equivalent production (ounces)1,294,091581,7641,875,8551,623,550570,4182,193,968
Sustaining cost per ounce$29.06$35.54$29.64$17.79$48.21$20.27
All-In-costs per ounce  $52.20  $26.76
       
Expressed in thousands US dollars Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Cash costs net of by-product$58,431($51)$58,380$40,269$1,528$41,797
Operations share-based compensation(50)(68)(118)176177353
Corporate general and administrative4,9311,8696,8003,6681,4455,113
Corporate share-based compensation1,9247302,6541,8497282,577
Reclamation - amortization/accretion235197432198158356
Mine site expensed exploration1,0681,0022,0701,0288631,891
Intangible payments---291241
Equipment loan payments6791,4652,1447361,4662,202
Capital expenditures sustaining18,6878,00826,69519,9088,65328,561
All-In-Sustaining Costs$85,905$13,152$99,057$67,861$15,030$82,891
Growth exploration and evaluation  9,792  8,456
Growth capital expenditures  49,622  16,778
All-In-Costs  $158,471  $108,125
       
 Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Throughput tonnes322,628331,290653,918292,998317,255610,253
Payable silver ounces3,822,057409,0074,231,0643,649,209446,4874,095,696
Silver equivalent production (ounces)4,732,2781,794,0026,526,2804,524,1101,782,7406,306,850
Sustaining cost per ounce$22.48$32.16$23.41$18.60$33.66$20.24
All-In-costs per ounce  $37.45  $26.40


Expressed in thousands US dollars Three Months Ended September 30Nine Months Ended September 300
2023202220232022
Mine site expensed exploration$701$621$2,070$1,891
Growth exploration and evaluation3,4763,1429,7928,456
Total exploration and evaluation4,1773,76311,86210,347
Exploration depreciation and depletion(147)143448348
Exploration share-based compensation125117368328
Exploration and evaluation expense$4,155$4,023$12,678$11,023


Reconciliation of Sustaining Capital and Growth Capital
Expressed in thousands US dollars Three Months Ended September 30Nine Months Ended September 300  
2023202220232022
Capital expenditures sustaining$9,484$10,651$26,695$28,561
Growth capital expenditures22,2526,24049,62216,778
Property, plant and equipment expenditures per Consolidated Statement of Cash Flows$31,736$16,891$76,317$45,339


Reconciliation of Silver Co-Product Cash Costs and Gold Co-Product Cash Costs
Expressed in thousands US dollars Three Months Ended September 30, 2023Three Months Ended September 30, 2022
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Direct production costs per financial statements$23,863 $10,157 $34,020 $15,156 $9,354 $24,510 
Smelting and refining costs included in net revenue -  494  494  -  744  744 
Royalties 4,754  67  4,821  2,762  59  2,821 
Special mining duty 306  85  391  241  (85)  156 
Opening finished goods (10,257)  (962)  (11,219)  (16,164)  (681)  (16,845) 
Closing finished goods 8,627  656  9,283  18,080  195  18,275 
Direct costs$27,293 $10,497 $37,790 $20,075 $9,586 $29,661 
       
 Three Months Ended September 30, 2023Three Months Ended September 30, 2022
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Silver production (ounces) 1,041,211.00  107,524  1,148,735  1,332,190  126,258  1,458,448 
Average realized silver price ($) 23.99  23.99  23.99  19.24  19.24  19.24 
Silver value ($) 24,976,320  2,579,260  27,555,580  25,634,615  2,429,515  28,064,130 
       
Gold production (ounces) 3,161  5,928  9,089  3,642  5,552  9,194 
Average realized gold price ($) 1,948  1,948  1,948  1,678  1,678  1,678 
Gold value ($) 6,157,094  11,546,742  17,703,836  6,110,595  9,315,217  15,425,812 
       
Total metal value ($) 31,133,414  14,126,002  45,259,417  31,745,210  11,744,732  43,489,942 
Pro-rated silver costs (%) 80%  18%  61%  81%  21%  65% 
Pro-rated gold costs (%) 20%  82%  39%  19%  79%  35% 
       
Pro-rated silver costs ($) 21,895  1,917  23,008  16,211  1,983  19,140 
Pro-rated gold costs ($) 5,398  8,580  14,782  3,864  7,603  10,521 
       
Silver co-product cash costs ($) 21.03  17.83  20.03  12.17  15.71  13.12 
Gold co-product cash costs ($) 1,708  1,447  1,626  1,061  1,369  1,144 
       
Expressed in thousands US dollars Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Direct production costs per financial statements$56,886 $29,128 $86,014 $40,837 $30,222 $71,059 
Smelting and refining costs included in net revenue - $1,945 $1,945  -  2,335  2,335 
Royalties 16,904  201  17,105  9,124  208  9,332 
Special mining duty 2,800  379  3,179  1,767  286  2,053 
Opening finished goods (4,953)  (245)  (5,198)  (10,093)  (2,857)  (12,950) 
Finished goods NRV adjustment -  -  -  -  -  0 
Closing finished goods 8,627  656  9,283  18,080  195  18,275 
Direct costs 80,264  32,064  112,328  59,715  30,389  90,104 
       
 Nine Months Ended September 30, 2023Nine Months Ended September 30, 2022
 GuanacevíBolañitosTotalGuanacevíBolañitosTotal
Silver production (ounces) 3,833,558  432,722  4,266,280  3,660,190  472,420  4,132,610 
Average realized silver price ($) 23.75  23.75  23.75  22.24  22.24  22.24 
Silver value ($) 91,065,202  10,279,202  101,344,404  81,394,368  10,505,555  91,899,922 
       
Gold production (ounces) 11,234  17,016  28,250  10,799  16,379  27,178 
Average realized gold price ($) 1,940  1,940  1,940  1,827  1,827  1,827 
Gold value ($) 21,798,062  33,017,253  54,815,316  19,733,100  29,929,479  49,662,579 
       
Total metal value ($) 112,863,264  43,296,455  156,159,719  101,127,468  40,435,034  141,562,501 
Pro-rated silver costs (%) 81%  24%  65%  80%  26%  65% 
Pro-rated gold costs (%) 19%  76%  35%  20%  74%  35% 
       
Pro-rated silver costs ($) 64,762  7,612  72,899  48,063  7,895  58,494 
Pro-rated gold costs ($) 15,502  24,452  39,429  11,652  22,494  31,610 
       
Silver co-product cash costs ($) 16.89  17.59  17.09  13.13  16.71  14.15 
Gold co-product cash costs ($) 1,380  1,437  1,396  1,079  1,373  1,163 


Reconciliation of Realized Silver Price Per Ounce and Realized Gold Price Per Ounce
Expressed in thousands US dollars Three Months Ended September 30Nine Months Ended September 30
2023202220232022
Gross silver sales$32,864$25,541$103,027$81,123
Silver ounces sold1,370,0321,327,3254,337,1123,647,987
Realized silver price per ounces$23.99$19.24$23.75$22.24
     
Expressed in thousands US dollars Three Months Ended September 30Nine Months Ended September 30
2023202220232022
Gross gold sales$17,063$14,852$53,882$49,383
Realized gold price per ounces$1,948$1,678$1,940$1,827
     

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 timing of the project; anticipated timing of completion of conditions precedent to drawdown under the Debt Facility, estimated project economics, Terronera’s forecasted operations, costs and expenditures, and the timing and results of various related activities, Endeavour’s anticipated performance in 2023 including changes in mining operations and forecasts of production levels, anticipated production costs and all-in sustaining costs 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 changes in production and costs guidance; the ongoing effects of inflation and supply chain issues on mine 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; satisfaction of conditions precedent to drawdown under the Debt Facility; the ongoing effects of inflation and supply chain issues on the Terronera Project economics; fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Chilean peso, Canadian dollar and U.S. dollar); 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 continued operation of the Company’s mining operations, no material adverse change in the market price of commodities, forecasted mine 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 OFCOMPREHENSIVE EARNINGS
(unaudited – prepared by management)
(expressed in thousands of US dollars, except for shares and per share amounts)

        
 Three months ended Nine months ended
 September 30,September 30,September 30,September 30,
  2023   2022   2023   2022 
        
Revenue$ 49,432  $39,649  $ 154,964  $128,171 
        
Cost of sales:       
Direct production costs 34,020   24,510   86,014   71,059 
Royalties 4,821   2,821   17,105   9,332 
Share-based payments 44   113   (118)  353 
Depreciation, depletion and amortization 7,855   5,753   20,704   16,234 
Write down of inventory to net realizable value -   1,323   -   1,323 
  46,740   34,520   123,705   98,301 
        
Mine operating earnings 2,692   5,129   31,259   29,870 
        
Expenses:       
Exploration and evaluation 4,155   4,023   12,678   11,023 
General and administrative 2,358   2,201   9,633   7,846 
Care and maintenance costs -   203   -   582 
Write off of mineral properties -   -   435   500 
  6,513   6,427   22,746   19,951 
        
Operating earnings (loss) (3,821)  (1,298)  8,513   9,919 
        
Finance costs 316   311   1,090   945 
        
Other income:       
Foreign exchange gain (loss) (418)  841   3,326   1,363 
Gain on asset disposal 6,992   2,780   7,059   2,780 
Investment and other (1,627)  (272)  (267)  (1,324)
  4,947   3,349   10,118   2,819 
        
Earnings before income taxes 810   1,740   17,541   11,793 
        
Income tax expense:       
Current income tax expense 2,250   1,186   11,137   3,526 
Deferred income tax expense 888   2,053   3,330   10,027 
  3,138   3,239   14,467   13,553 
        
Net earnings (loss) and comprehensive earnings$ (2,328) $(1,499) $ 3,074  $(1,760)
        
        
Basic earnings (loss) per share$ (0.01) $(0.01) $ 0.02  $(0.01)
Diluted earnings (loss) per share$ (0.01) $(0.01) $ 0.02  $(0.01)
        
Basic weighted average number of shares outstanding194,249,283 189,241,367 192,003,752 180,655,842 
Diluted weighted average number of shares outstanding194,249,283 189,241,367 193,875,315 180,655,842 
        

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

    
 September 30, December 31,
  2023   2022 
    
ASSETS   
    
Current assets   
Cash and cash equivalents$ 40,957  $83,391 
Other investments 6,192   8,647 
Accounts and other receivables 16,664   13,136 
Income tax receivable 1,264   4,024 
Inventories 27,601   19,184 
Prepaids 37,508   16,951 
Loans receivable 1,250   1,000 
Total current assets 131,436   146,333 
    
Non-current deposits 717   565 
Non-current income tax receivable 3,570   3,570 
Non-current other investments -   1,388 
Non-current IVA receivable 17,476   10,154 
Non-current loans receivable 2,273   2,729 
Right-of-use leased assets 819   806 
Mineral properties, plant and equipment 276,864   233,892 
Total assets$ 433,155  $399,437 
    
LIABILITIES AND SHAREHOLDERS' EQUITY   
    
Current liabilities   
Accounts payable and accrued liabilities$ 43,416  $39,831 
Income taxes payable 7,296   6,616 
Loans payable 4,339   6,041 
Lease liabilities 436   261 
Total current liabilities 55,487   52,749 
    
Loans payable 5,500   8,469 
Lease liabilities 678   812 
Provision for reclamation and rehabilitation 9,582   7,601 
Deferred income tax liability 16,273   12,944 
Other non-current liabilities 1,016   968 
Total liabilities 88,536   83,543 
    
Shareholders' equity   
Common shares, unlimited shares authorized, no par value, issued, issuable   
and outstanding 199,700,826 shares (Dec 31, 2022 - 189,995,563 shares) 684,736   657,866 
Contributed surplus 4,597   6,115 
Retained earnings (deficit) (344,714)  (348,087)
Total shareholders' equity 344,619   315,894 
Total liabilities and shareholders' equity$ 433,155  $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 Nine months ended
 September 30, September 30, September 30, September 30,
  2023   2022   2023   2022 
        
Operating activities       
Net earnings (loss) for the period$ (2,328) $(1,499) $ 3,074  $(1,760)
        
Items not affecting cash:       
Share-based compensation 864   760   2,904   3,259 
Depreciation, depletion and amortization 9,067   6,023   22,659   16,809 
Writte off of exploration properties -   -   435   500 
Deferred income tax expense 888   2,053   3,330   10,027 
Unrealized foreign exchange loss (gain) (409)- 89   1,205 - (131)
Finance costs 316   312   1,090   946 
Accretion of loans receivable (87)  -   (294)  - 
Write down of inventory to net realizable value -   1,323   -   1,323 
Gain on asset disposal (6,992)  (2,826)  (7,059)  (2,780)
Loss on other investments 1,944   1,097   1,997   3,366 
Performance and deferred share units settled in cash -   -   (2,118)  - 
Net changes in non-cash working capital (2,650)  85   (22,158)  (20,957)
Cash from operating activities 613   7,417   5,065   10,602 
        
Investing activities       
Proceeds on disposal of property, plant and equipment 7,567   250   7,567   332 
Mineral properties, plant and equipment (31,736)  (53,046)  (76,317)  (81,494)
Purchase of other investments -   -   -   (2,119)
Proceeds from disposal of other investments -   -   1,846   - 
Redemption of (investment in) non-current deposits (57)  30   (152)  34 
Cash used in investing activities (24,226)  (52,766)  (67,056)  (83,247)
        
Financing activities       
Repayment of loans payable (1,522)  (1,268)  (4,671)  (3,565)
Repayment of lease liabilities (126)  (55)  (275)  (161)
Interest paid (206)  (204)  (659)  (585)
Public equity offerings 23,390   -   23,390   46,001 
Exercise of options -   20   2,453   1,598 
Proceeds from loans receivable -   -   500   - 
Share issuance costs (683)  (93)  (683)  (2,905)
   Performance and deferred share units witholding tax settlement -   -   (294)  (1,903)
Cash from (used in) financing activities 20,853   (1,600)  19,761   38,480 
        
Effect of exchange rate change on cash and cash equivalents 213   (84)  (204)  55 
        
Increase (decrease) in cash and cash equivalents (2,760)  (46,949)  (42,230)  (34,165)
Cash and cash equivalents, beginning of the period 43,504   116,226   83,391   103,303 
Cash and cash equivalents, end of the period$ 40,957  $69,193  $ 40,957  $69,193 
        


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