Endeavour expects 2024 output similar to 2023 despite escalating costs in Mexico

Mexico-focused Canadian miner Endeavour Silver expects production levels in 2024 to be in line with output reported in 2023 despite rising costs, the company said in a statement. 

This year, the company forecasts that silver production will be between 5.3Moz and 5.8Moz, and gold output is expected to reach 34,000oz-38,000oz. Silver equivalent production is estimated at 8.1Moz-8.8Moz.

In a separate statement, Endeavour reported full-year 2023 production of 5,672,703oz silver and 37,858oz gold, or silver equivalent production of 8.7Moz. Output in 4Q23 was 1,396,315oz silver and 9,440oz gold, or 2.2Moz silver equivalent. 

The miner highlighted that it thus met or achieved its annual production guidance for three consecutive years.

“While we expect 2024 production levels aligning with those of 2023, ongoing challenges include escalating costs,” said Dan Dickson, Endeavour’s CEO. 

“The influence of a stronger local currency, coupled with inflationary pressures on essential inputs like labor, explosives, energy, and steel prices, continue to impact the bottom line," he added.

Consolidated cash costs and all-in sustaining costs (AISC) in 2024 are estimated to be US$14-US$15/oz silver, and US$22-US$23/oz silver, respectively, net of gold by-product credits, the miner said. 

“Consolidated cash costs on a per ounce basis are expected to be slightly higher than 2023, primarily due to a reduction in gold production and a lower estimated gold price, and AISC slightly lower as reduced sustaining capital and comparable exploration and general and administrative costs will be allocated over similar silver production,” it underscored.

Dickson said that 2024 will be “a very important year” for the miner as it completes construction of its US$230mn Terronera project in Jalisco state and transitions to become a premier senior silver producer. 

“We are laser-focused on completing construction at Terronera this year, which should result in a significant increase in production, a notable reduction in costs, and provide substantial free cash flow in future years,” he added.

Endeavour will provide 2024 guidance on activities at the Terronera project in a separate release.