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 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 September 30, 2023
99.2   Management Discussion and Analysis for the period ended September 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: November 7, 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)

               
      September 30,     December 31,  
  Notes   2023     2022  
               
ASSETS              
               
Current assets              
Cash and cash equivalents   $ 40,957   $ 83,391  
Other investments 4   6,192     8,647  
Accounts and other receivables 5   16,664     13,136  
Income tax receivable     1,264     4,024  
Inventories 6   27,601     19,184  
Prepaids     37,508     16,951  
Loans receivable 8 (c)   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 4   -     1,388  
Non-current IVA receivable 5   17,476     10,154  
Non-current loans receivable 8 (c)   2,273     2,729  
Right-of-use leased assets     819     806  
Mineral properties, plant and equipment 8, 9   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 9   4,339     6,041  
Lease liabilities     436     261  
Total current liabilities     55,487     52,749  
               
Loans payable 9   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) Page 4   684,736     657,866  
Contributed surplus Page 4   4,597     6,115  
Retained earnings (deficit) Page 4   (344,714 )   (348,087 )
Total shareholders' equity     344,619     315,894  
Total liabilities and shareholders' equity   $ 433,155   $ 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     Nine months ended  
      September 30,     September 30,     September 30,     September 30,  
  Notes   2023     2022     2023     2022  
                           
Revenue 11 $ 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 10 (b)(c)   44     113     (118 )   353  
Depreciation, depletion and amortization     7,855     5,753     20,704     16,234  
Write down of inventory to net realizable value 6   -     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 12   4,155     4,023     12,678     11,023  
General and administrative 13   2,358     2,201     9,633     7,846  
Care and maintenance costs     -     203     -     582  
Write off of mineral properties 8 (e)   -     -     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 8(f)   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 10(f) $ (0.01 ) $ (0.01 ) $ 0.02   $ (0.01 )
                           
Basic weighted average number of shares outstanding     194,249,283     189,241,367     192,003,752     180,655,842  
Diluted weighted average number of shares outstanding 10(f)   194,249,283     189,241,367     193,875,315     180,655,842  

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     43,096     -     -     43,096  
Exercise of options 10 (b)   563,200     2,364     (766 )   -     1,598  
Settlement of performance and deferred share units 10 (c)   1,014,999     1,361     (3,264 )   -     (1,903 )
Issued on acquisition of mineral properties 8 (c)   8,577,380     25,589     -     -     25,589  
Issued for deferred share units 10 (c)   3,527     17     (17 )   -     -  
Share-based compensation 10 (b)(c)   -     -     3,259     -     3,259  
Loss  for the period     -     -     -     (1,760 )   (1,760 )
Balance at September 30, 2022     189,989,563   $ 657,833   $ 5,543   $ (356,090 ) $ 307,286  
                                 
Public equity offerings, net of issuance costs 10 (a)   -     20     -     -     20  
Exercise of options 10 (b)   6,000     13     (4 )   -     9  
Share-based compensation 10 (b)(c)   -     -     618     -     618  
Canceled options 10 (b)   -     -     (42 )   42     -  
Earnings for the period     -     -     -     7,961     7,961  
Balance at December 31, 2022     189,995,563   $ 657,866   $ 6,115   $ (348,087 ) $ 315,894  
                                 
Public equity offerings, net of issuance costs 10 (a)   8,195,527     22,707     -     -     22,707  
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)   -     -     2,903     -     2,903  
Canceled options 10 (b)   -     -     (299 )   299     -  
Earnings for the period     -     -     -     3,074     3,074  
Balance at September 30, 2023     199,700,826   $ 684,736   $ 4,597   $ (344,714 ) $ 344,619  

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     Nine months ended  
      September 30,     September 30,     September 30,     September 30,  
  Notes   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 10 (b)(c)   864     760     2,904     3,259  
Depreciation, depletion and amortization 8   9,067     6,023     22,659     16,809  
Write off of exploration properties 8   -     -     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 4   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 14   (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 8(f)   7,567     250     7,567     332  
Mineral properties, plant and equipment 8   (31,736 )   (53,046 )   (76,317 )   (81,494 )
Purchase of other investments     -     -     -     (2,119 )
Proceeds from disposal of other investments 4   -     -     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 9   (1,522 )   (1,268 )   (4,671 )   (3,565 )
Repayment of lease liabilities     (126 )   (55 )   (275 )   (161 )
Interest paid 9   (206 )   (204 )   (659 )   (585 )
Public equity offerings 10 (a)   23,390     -     23,390     46,001  
Exercise of options 10 (b)   -     20     2,453     1,598  
Proceeds from loans receivable 8(c)   -     -     500     -  
Share issuance costs 10 (a)   (683 )   (93 )   (683 )   (2,905 )
  Performance and deferred share units withholding 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  

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 nine months ended September 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 November 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. 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 nine months ended September 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

4. OTHER INVESTMENTS

      September 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     (1,997 )   (3,470 )
Balance at end of the period     6,192     10,035  
Less: Non-Current portion     -     1,388  
Current other investments   $ 6,192   $ 8,647  

As at September 30, 2023 the Company held $6,143 in marketable securities that are classified as Level 1 and $49 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

      September 30,     December 31,  
  Note   2023     2022  
               
Trade receivables (1)   $ 6,918   $ 4,385  
IVA receivable (2) 16   8,741     8,062  
Other receivables     1,005     689  
    $ 16,664   $ 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 nine months ended September 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 September 30, 2023, Guanaceví holds $8,398 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 September 30, 2023, the total IVA receivable of $26,217 (December 31, 2022 - $18,216) has been allocated between the current portion of $8,741, which is included in accounts and other receivables, and a non-current portion of $17,476 (December 31, 2022 - $8,062 and $10,154 respectively).  The non-current portion is composed of Guanacevi of $2,293, which is currently under appeal and is unlikely to be received in the next 12 months.  The remaining $15,183 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

    September 30,     December 31,  
    2023     2022  
             
Warehouse inventory(1) $ 12,825   $ 9,682  
Stockpile inventory   3,085     2,389  
Finished goods inventory   11,014     6,138  
Work in process inventory   677     975  
  $ 27,601   $ 19,184  

(1) The warehouse inventory balances at September 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.

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 nine months ended September 30, 2023 (September 30, 2022 - $nil and $9 respectively). The Company has a $nil net receivable related to these costs as of September 30, 2023 (December 31, 2022 - $nil).

The Company was charged $204 and $490 for legal services for the three and nine months ended September 30, 2023 by a legal firm in which the Company's corporate secretary is a partner (September 2022 - $57 and $402 respectively). The Company has $72 payable to the legal firm as at September 30, 2023 (December 31, 2022 - $10).


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

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   50,251     5,660     7,748     1,715     1,834     67,208  
Disposals   (670 )   -     (417 )   -     (176 )   (1,263 )
                                     
Balance at September 30, 2023 $ 649,649   $ 102,520   $ 113,591   $ 22,071   $ 14,935   $ 902,766  
                                     
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   15,468     1,293     5,064     285     1,185     23,295  
Disposals   -     -     (177 )   -     (145 )   (322 )
                                     
Balance at September 30, 2023 $ 461,449   $ 85,327   $ 59,307   $ 9,666   $ 10,153   $ 625,902  
                                     
Net book value                                    
At December 31, 2022 $ 154,087   $ 12,826   $ 51,840   $ 10,975   $ 4,164   $ 233,892  
At September 30, 2023 $ 188,200   $ 17,193   $ 54,284   $ 12,405   $ 4,782   $ 276,864  

Included in mineral properties is $80,085 in acquisition costs for exploration properties and $57,792 for acquisition and development costs for development properties (December 31, 2022 - $80,155 and $26,669 respectively), which are not subject to amortization.

As of September 30, 2023, the Company has $35,704 committed for capital equipment purchases, predominantly related to the ongoing construction and development in the Terronera project.

(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. 


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

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(1) $ 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 September 30, 2023, the carrying value of the loan receivable is $3,523, consisting of the current portion of $1,250 and non-current portion of $2,273 (December 31, 2022 - $1,000 and $2,729 respectively). 

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.


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

(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 nine month period ended September 30, 2023.

(f) Sale of Cozamin Royalty

On August 31, 2023, Minera Plata Adelante SA de CV ("MPA") executed an agreement with Gold Royalty Corpand sold all of the MPA's interest in the 1% Cozamin royalty ("Royalty") for total consideration of $7,500 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.

9. LOANS PAYABLE

    September 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   599     726  
Repayments of principal   (4,671 )   (5,054 )
Repayments of finance costs   (599 )   (726 )
Balance at the end of the period $ 9,839   $ 14,510  
             
Statements of Financial Position presentation            
Current loans payable $ 4,339   $ 6,041  
Non-current loans payable   5,500     8,469  
Total $ 9,839   $ 14,510  

The Company currently has $23,313 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 5.7%.

The equipment financing is secured by the underlying equipment purchased and is subject to various non-financial covenants. As at September 30, 2023 the Company was in compliance with these covenants.  As at September 30, 2023, the net book value of equipment includes $21,799 (December 31, 2022 - $24,379) of equipment pledged as security for the equipment financing.


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

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.

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. 

During the nine-month period ended September 30, 2023, the Company issued 8,195,527 common shares under the ATM facility at an average price of $2.85 per share for gross proceeds of $23,390, less commission of $468 and recognized $215 of other transaction costs related to the ATM financing as share issuance costs, which have been presented net within share capital.

Subsequent to September 30, 2023 an additional 6,828,796 common shares were issued under the ATM facility at an average price of $2.44 per share for gross proceeds of $16,638 less commission of $332.

(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 and outstanding shares at any time.


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

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

Expressed in Canadian dollars   Nine months ended     Year ended   
    September 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   (251,839 ) $ 5.65     (116,356 ) $ 6.63  
Outstanding, end of the period   3,628,891   $ 4.31     3,899,630   $ 4.09  
                         
Options exercisable at the end of the period   2,921,934   $ 4.27     3,374,459   $ 3.74  

During the nine months ended September 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 September 30, 2023:

Expressed in Canadian dollars      
  Options  Outstanding Options Exercisable
  Number Weighted Average Weighted Number Weighted
  Outstanding Remaining Average Exercisable Average
Price as at Contractual Life Exercise as at Exercise
Intervals September 30, 2023 (Number of Years) Price September 30, 2023 Price
           
$2.00 - $2.99 960,600  1.4 $2.14 960,600  $1.42
$3.00 - $3.99 442,400  0.5 $3.23 442,400  $0.46
$4.00 - $4.99 976,600  4.5 $4.12 386,600  $4.45
$5.00 - $5.99  60,000 2.0 $5.60  60,000 $1.96
$6.00 - $6.99  1,189,291     3.0 $6.55 1,072,334     $2.93
  3,628,891     2.6 $4.31 2,921,934     $2.24

During the three and nine months ended September 30, 2023, the Company recognized share-based compensation expense of $370 and $1,316 respectively (September 30, 2022 - $320 and $1,425 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:

  Nine months ended
  September 30,
2023
September 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


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

(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. 

    Nine months ended     Year ended   
    September 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 nine months ended September 30, 2023 (September 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.

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 nine months ended September 30, 2023, 350,829 shares were issued for the settlement of these PSUs.

During the three and nine months ended September 30, 2023, the Company recognized share-based compensation expense of $476 and $938 respectively related to the PSUs (September 30, 2022 - $428 and $1,321 respectively).

Deferred Share Units

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

    Nine months ended      Year ended  
    September 30, 2023     December 31, 2022  
    Number of units     Number of units  
             
Outstanding, beginning of period   104,596     -  
Granted   216,520     109,634  
Settled for shares   -     (5,038 )
Outstanding, end of period   321,116     104,596  

There were 216,520 DSUs granted during the nine months ended September 30, 2023 (September 30, 2022 - 106,153) under the SUP. During the three and nine months ended September 30, 2023, the Company recognized share-based compensation expense of $18 and $650 respectively related to the DSUs (September 30, 2022 - $12 and $513 respectively).


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

(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   Nine months ended      Year ended  
    September 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   $ 3.32     1,044,204   $ 4.38  

During the three and nine months ended September 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 $482 and $823 respectively (September 30, 2022 - a mark to market recovery of $110 and $1,099 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 September 30, 2023, there are 1,044,204 deferred share units outstanding (December 31, 2022 - 1,044,204) with a fair market value of $2,552 (December 31, 2022 - $3,375) recognized in accounts payable and accrued liabilities.

(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. 

    Nine months ended     Year ended   
    September 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   (86,256 ) $ 5.13     (74,235 ) $ 4.72  
Outstanding, end of period   95,483   $ 5.10     181,739   $ 5.12  
                         
Exercisable at the end of the period   71,200   $ 5.15     101,066   $ 5.18  

During the three and nine months ended September 30, 2023, the Company recognized a recovery related to SARs, which is included in operation and exploration salaries, wages and benefits, of $22 and $32 respectively (September 30, 2022 -recovery of $nill and $4 respectively) based on the change in the fair value of the SARs granted in prior years.  As of September 30, 2023, there are 95,483 SARs outstanding (December 31, 2022 - 181,739) with a fair market value of $76 (December 31, 2022 - $111) recognized in accounts payable and accrued liabilities.


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

(f) Diluted Earnings per Share

    Three months ended     Nine months ended  
    September 30,
2023
    September 30,
2022
    September 30,
2023
    September 30,
2022
 
                         
Net earnings (loss) $ (2,328 ) $ (1,499 ) $ 3,074   $ (1,760 )
Basic weighted average number of shares outstanding   194,249,283     189,241,367     192,003,752     180,655,842  
Effect of dilutive securities:                        
  Stock options   -     -     672,447     -  
  Equity settled deferred share units   -     -     878,000     -  
  Performance share units   -     -     321,116     -  
Diluted weighted average number of share outstanding   194,249,283     189,241,367     193,875,315     180,655,842  
                         
Diluted earnings (loss) per share $ (0.01 ) $ (0.01 ) $ 0.02   $ (0.01 )

As of September 30, 2023, there 2,876,185 anti-dilutive stock options (September 30, 2022 - 2,833,740).

11. REVENUE

    Three months ended     Nine months ended  
    September 30,     September 30,     September 30,     September 30,  
    2023     2022     2023     2022  
                         
Silver sales (1) $ 32,863   $ 25,541   $ 103,027   $ 81,123  
Gold sales (1)   17,063     14,852     53,882     49,383  
Less: smelting and refining costs   (494 )   (744 )   (1,945 )   (2,335 )
Revenue $ 49,432   $ 39,649   $ 154,964   $ 128,171  

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

    Three months ended     Nine months ended  
    September 30,     September 30,     September 30,     September 30,  
    2023     2022     2023     2022  
Revenue by product                        
     Concentrate sales $ 13,528   $ 11,614   $ 39,273   $ 42,192  
     Provisional pricing adjustments   523     (443 )   (66 )   (400 )
Total revenue from concentrate sales   14,051     11,171     39,207     41,792  
Refined metal sales   35,381     28,478     115,757     86,379  
Total revenue $ 49,432   $ 39,649   $ 154,964   $ 128,171  

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 nine months ended September 30, 2023 and 2022
(unaudited – prepared by management)
(expressed in thousands of US dollars, unless otherwise stated)

12. EXPLORATION AND EVALUATION

    Three months ended     Nine months ended  
    September 30,
2023
    September 30,
2022
    September 30,
2023
    September 30,
2022
 
                         
Depreciation and depletion $ (147 ) $ 143   $ 448   $ 348  
Share-based compensation   125     117     368     328  
Exploration salaries, wages and benefits   791     330     2,211     1,423  
Direct exploration expenditures   1,599     1,541     4,653     3,353  
Evaluation salaries, wages and benefits   616     487     1,622     1,632  
Direct evaluation expenditures   1,171     1,405     3,376     3,939  
  $ 4,155   $ 4,023   $ 12,678   $ 11,023  

13. GENERAL AND ADMINISTRATIVE

    Three months ended     Nine months ended  
    September 30,     September 30,     September 30,     September 30,  
    2023     2022     2023     2022  
Depreciation and depletion $ 63   $ 57   $ 179   $ 156  
Share-based compensation   694     530     2,654     2,577  
Salaries, wages and benefits   971     852     3,131     3,067  
Directors’ DSU recovery   (482 )   (110 )   (823 )   (1,099 )
Direct general and administrative   1,112     872     4,492     3,145  
  $ 2,358   $ 2,201   $ 9,633   $ 7,846   

14. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

    Three months ended      Nine months ended   
    September 30,     September 30,     September 30,     September 30,  
    2023     2022     2023     2022  
                         
Net changes in non-cash working capital:                        
Accounts and other receivables $ (1,878 ) $ 2,205   $ (10,850 ) $ (91 )
Income tax receivable   (1,098 )   (1,255 )   2,760     (2,297 )
Inventories   1,798     (2,049 )   (7,495 )   (8,473 )
Prepaids   (3,149 )   197     (4,898 )   (6,234 )
Accounts payable and accrued liabilities   1,670     1,351     (2,355 )   (4,265 )
Income taxes payable   7     (364 )   680     403  
  $ (2,650 ) $ 85   $ (22,158 ) $ (20,957 )
                         
Non-cash financing and investing activities:                        
Reclamation included in mineral properties,
plant and equipment
$ (9 ) $ -   $ (654 ) $ -  
Fair value of exercised options allocated to share capital $ -   $ (11 ) $ (1,305 ) $ (766 )
Fair value of performance share units allocated to
share capital
$ -   $ (555 ) $ (405 ) $ (1,361 )
Fair value of capital assets acquired under finance leases $ -   $ (2,745 ) $ -   $ 7,119  
                         
Other cash disbursements:                        
    Income taxes paid $ 3,094   $ 2,733   $ 5,623   $ 3,184  
    Special mining duty paid $ -   $ -   $ 2,654   $ 2,272  


ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three and nine months ended September 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 formerly 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. Prepaids as well as the accounts payable and accrued liabilities in Terronera segment are predominantly related to the ongoing construction and development in the Terronera project.

September 30, 2023
    Corporate     Exploration     Guanaceví     Bolanitos     Terronera     Total  
                                     
Cash and cash equivalents $ 18,126   $ 7,166   $ 12,042   $ 1,756   $ 1,867   $ 40,957  
Other investments   6,192     -     -     -     -     6,192  
Accounts and other receivables   1,053     476     6,280     8,847     8     16,664  
Loans receivable   3,523     -     -     -     -     3,523  
Income tax receivable   19     1,124     72     48     1     1,264  
Inventories   139           21,810     5,625     27     27,601  
Prepaids   989     396     882     234     35,007     37,508  
Non-current deposits   251     2     332     93     39     717  
Non-current income tax receivable   3,570     -     -     -     -     3,570  
Non-current IVA receivable   -     -     2,293     -     15,183     17,476  
Right-of-use leased assets   435     -     -     183     201     819  
Mineral properties, plant and equipment   611     81,692     72,515     26,888     95,158     276,864  
Total assets $ 34,908   $ 90,856   $ 116,226   $ 43,674   $ 147,491   $ 433,155  
                                     
Accounts payable and accrued liabilities $ 4,978   $ 592   $ 16,211   $ 4,899   $ 16,736   $ 43,416  
Income taxes payable   -     -     6,258     1,038     -     7,296  
Loans payable   -     -     351     624     8,864     9,839  
Lease obligations   669     18     -     215     212     1,114  
Provision for reclamation and rehabilitation   -     44     4,847     3,787     904     9,582  
Deferred income tax liability   -     -     15,976     297     -     16,273  
Other non-current liabilities   -     8     508     488     12     1,016  
Total liabilities $ 5,647   $ 662   $ 44,151   $ 11,348   $ 26,728   $ 88,536  


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

Three months ended September 30, 2023  
    Corporate     Exploration     Guanaceví     Bolanitos       Terronera     Total  
Silver revenue $ -   $ -   $ 30,054   $ 2,810     $ -   $ 32,864  
Gold revenue   -     -     5,326     11,737       -     17,063  
Less: smelting and refining costs   -     -     -     (495 )     -     (495 )
Total revenue $ -   $ -   $ 35,380   $ 14,052     $ -   $ 49,432  
                                       
  Salaries, wages and benefits:                                      
        mining $ -   $ -   $ 2,592   $ 2,381     $ -   $ 4,973  
        processing   -     -     1,339     643       -     1,982  
        administrative   -     -     1,626     846       -     2,472  
        share-based compensation   -     -     31     13       -     44  
        change in  inventory   -     -     428     125       -     553  
Total salaries, wages and benefits   -     -     6,016     4,008       -     10,024  
                                       
  Direct costs:                                      
        mining   -     -     10,040     3,309       -     13,349  
        processing   -     -     4,674     1,659       -     6,333  
        administrative   -     -     1,990     950       -     2,940  
        change in  inventory   -     -     1,174     244       -     1,418  
Total direct production costs   -     -     17,878     6,162       -     24,040  
                                       
  Depreciation and depletion:                                      
        depreciation and depletion   -     -     3,633     3,090       -     6,723  
        change in inventory   -     -     1,051     81       -     1,132  
Total depreciation and depletion   -     -     4,684     3,171       -     7,855  
                                       
  Royalties   -     -     4,754     67       -     4,821  
                                       
Total cost of sales $ -   $ -   $ 33,332   $ 13,408     $ -   $ 46,740  
                                       
Write off of mineral properties   -     -     -     -       -     -  
                                       
Earnings (loss) before taxes $ 2,273   $ (2,368 ) $ 2,048   $ 644     $ (1,787 ) $ 810  
                                       
  Current income tax expense (recovery)   -     750     1,398     102       -     2,250  
  Deferred income tax expense (recovery)   -     -     888     -       -     888  
Total income tax expense (recovery)   -     750     2,286     102       -     3,138  
                                       
Net earnings (loss) $ 2,273   $ (3,118 ) $ (238 ) $ 542     $ (1,787 ) $ (2,328 )

The Exploration segment included $352 of costs incurred in Chile for the three months ended September 30, 2023 (September 30, 2022 - $347).


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

Three months ended September 30, 2022  
    Corporate     Exploration     Guanaceví     Bolanitos     El Compas     Terronera     Total  
Silver revenue $ -   $ -   $ 23,241   $ 2,300   $ -   $ -   $ 25,541  
Gold revenue   -     -     5,237     9,615     -     -     14,852  
Less: smelting and refining costs   -     -     -     (744 )   -     -     (744 )
Total revenue $ -   $ -   $ 28,478   $ 11,171   $ -   $ -   $ 39,649  
                                           
  Salaries, wages and benefits:                                          
        mining $ -   $ -   $ 2,052   $ 1,851   $ -   $ -   $ 3,903  
        processing   -     -     907     554     -     -     1,461  
        administrative   -     -     1,625     1,016     -     -     2,641  
        stock based compensation   -     -     56     57     -     -     113  
        change in  inventory   -     -     (736 )   134     -     -     (602 )
Total salaries, wages and benefits   -     -     3,904     3,612     -     -     7,516  
                                           
  Direct costs:                                          
        mining   -     -     7,298     3,018     -     -     10,316  
        processing   -     -     4,138     1,457     -     -     5,595  
        administrative   -     -     1,742     1,079     -     -