Costs drop but loss widens at Endeavour

Endeavour Silver's losses widened in Q3 despite a 25% drop in all-in sustaining costs (AISCs) at its three Mexican mines.

The Vancouver-based company posted a net loss of US$14.1mn, compared to a net loss of US$11.4mn a year before, partly due to falls in realized silver and gold prices of 22% and 16%, respectively.

The results were also impacted by the effect of the falling peso on current assets and deferred income taxes, and a write-down of marketable security investments.

Revenue was US$42.7mn, up 5% from US$40.5mn, despite a 50% rise in silver sold to 1.84Moz and 7% more gold sold at 14,599oz.

COSTS FALL

Endeavour reported 25% lower AISCs of US$15.05/oz silver. The El Cubo mine, where an expansion to 2,200t/d throughput was completed in July, saw AISCs fall to US$18.48/oz from US$47.46/oz, according to the management's discussion and analysis report.

AISCs also declined 23% to US$12.76/oz at the Guanaceví mine, while Bolañitos saw a 23% rise to US$14.40/oz.

Production at Bolañitos has been reduced to process additional ore from the El Cubo mine following the expansion.

OUTLOOK

Endeavour said it is on track to meet or beat its 2015 silver production guidance of 6.3-6.7Moz, to hit the lower end of gold guidance of 60,000-66,000oz and the higher end of silver equivalent output of 10.4-11.6Moz.

Pictured: Endeavour Silver CEO Brad Cooke.