Endeavour Silver Corp. Announces Audited Consolidated Earnings and Production Results for the Fourth Quarter and Year Ended December 31, 2013; Provides Production Guidance for the Year 2014
Mar 10 14
Endeavour Silver Corp. announced audited consolidated earnings and production results for the fourth quarter and year ended December 31, 2013. For the quarter, the company reported revenue of $67.9 million against $66.7 million a year ago. Net loss was $115.8 million or $1.16 per basic share against net earnings of $14.8 million or $0.15 per basic share a year ago. Adjusted net loss was $12.1 million or $0.12 per basic share against net earnings of $12.9 million or $0.13 per basic share a year ago. Mine operating earnings were $9.9 million against $17.9 million a year ago. Mine operating cash flow was $26.4 million against $34.8 million a year ago. EBITDA was $23.0 million against $28.2 million a year ago.
For the year, the company reported revenue of $276.8 million compared to $208.1 million a year ago. Net loss was $89.5 million or $0.90 per diluted share compared to net earnings of $42.1 million or $0.42 per diluted share in 2012. Excluding the net impairment charges and the mark-to market derivative liabilities gain, adjusted earnings were $11.1 million or $0.11 per basic share compared to $40.2 million or $0.43 per basic share in 2012. The drop in precious metal prices was the primary reason for the decrease in the company's earnings year over year. Mine operating earnings were $56.9 million against $78.0 million a year ago. Mine operating cash flow was $116.9 million against $114.4 million a year ago. EBITDA was $100.0 million against $90.5 million a year ago. Cash from operating activities was $76.544 million against $76.021 million a year ago. Property, plant and equipment expenditures were $88.518 million against $66.236 million a year ago. Operating loss was $102.918 million against operating earnings of $53.632 million a year ago, driven by impairment charges of $95.8 million on the Guanaceví and El Cubo mines and a $39.2 million impairment of El Cubo goodwill. Loss before income taxes was $95.959 million against earnings before income taxes of $60.086 million a year ago. The net loss is primarily due to an impairment of its assets due to the lower metal prices. Revenues were actually jumped 33% to $277 million, and that was primarily due to a significant spike in its silver and gold production last year.
For the quarter, the company reported silver production of 1,931,717 oz against 1,235,026 oz a year ago. Gold production was 17,686 oz against 12,917 oz a year ago. Silver equivalent production was 2,992,877 oz against 2,010,046 oz a year ago.
For the year, the company reported silver production of 6,813,069 oz against 4,485,476 oz a year ago. Gold production was 75,578 oz against 38,687 oz a year ago. Silver equivalent production was 11,347,749 oz against 6,806,696 oz a year ago.
The company plans to hold silver production relatively steady in the range of 6.5 million oz -6.9 million oz in 2014 compared to the 6.8 million oz silver produced in 2013. Gold production is expected to be in the 65,000 oz -69,000 oz range and silver equivalent production is anticipated to be 10.4-11.0 million oz. In 2014, Bolañitos production will pull back to the 1,600 tpd plant capacity as management has elected not to continue extra mine production for processing at the El Cubo plant as it did in 2013. At Bolañitos, production will continue primarily from the Daniela, Karina, Lana and Bolañitos veins and mine development will open up the La Luz- Asunción deposit. The company plans to invest $43.9 million on capital projects in 2014, including $34.6 million on mine development, infrastructure, equipment and exploration plus $9.3 million on plant upgrades, infrastructure, equipment and buildings. The Company has budgeted $20.9 million at El Cubo, $9.9 million at Bolañitos, $11.7 million at Guanaceví and $1.4 million for general capital, all of which should be funded by the Company's anticipated 2014 operating cash flow. In 2014, Endeavour plans to spend $10.7 million on exploration. A total of 54,000 metres of drilling in about 120 holes are budgeted to test multiple exploration targets in addition to the underground mine exploration drilling. As in previous years, management will look for opportunities to stretch and also augment this budget in order to fuel accelerated resource expansion.
Endeavour Silver Corp. Updates Reserve and Resource Estimates for Three Producing Silver Mines in Mexico
Feb 24 14
Endeavour Silver Corp. released updated NI 43-101 silver and gold reserve and resource estimates for its three producing silver mines in Mexico (the Guanaceví Mine in Durango State and the Bolañitos and El Cubo Mines in Guanajuato State) as well as one exploration project (San Sebastián Project in Jalisco State) as of December 31, 2013 using lower silver and gold prices compared to December 31, 2012. Proven and probable reserves were down year-on-year due mainly to the lower metal prices used for the estimates. In response to the lower metal prices last year, the mine plan was revised to enhance cash-flow by accelerating production and deferring some lower priority underground mine development primarily at Bolañitos and Guanaceví, which also reduced the conversion of resources into reserves. Measured and indicated resources were up in 2013 due to the company's brownfields exploration programs which discovered new resources primarily at El Cubo and upgraded some inferred resources but, again in response to the lower metal prices, the exploration budget was reduced last year which likely reduced the expansion of resources. Inferred resources were down last year as a result of the lower metal prices and reduced exploration budget. The December 31, 2013 reserve and resource highlights are 2013 Reserve/Resource Highlights compared to December 31, 2012. Silver proven and probable reserves reduced by 50% to 11.6 million ounces (oz), gold proven and probable reserves reduced by 37% to 139,400 oz; silver equivalent proven and probable reserves reduced by 41% to 25.9 million oz, silver measured and indicated resources up 4% to 60.7 million oz, gold measured and indicated resources up 6% to 556,300 oz, silver equivalent measured and indicated resources up 11% to 94.1 million oz, silver inferred resources reduced by 13% to 40.6 million oz, gold Inferred Resources reduced by 15% to 396,320 oz, silver equivalent inferred resources reduced by 9% to 64.4 million oz. Silver proven and probable reserves down 64% to 3.3 million ounces (oz), gold proven and probable reserves down 65% to 5,800 oz, silver equivalent proven and probable reserves down 64% to 3.7 million oz. Bolañitos silver proven and probable reserves down 69% to 2.3 million ounces (oz), gold proven and probable reserves down 64% to 37,300 oz, silver equivalent proven and probable reserves down 64% to 4.6 million oz, silver measured and indicated resources down 50% to 4.6 million oz. El Cubo silver proven and probable reserves down by 6% to 5.9 million ounces (oz), gold proven and probable reserves down by 5% to 96,300 oz, silver equivalent proven and probable reserves up by 6% to 17.6 million oz, silver measured and indicated resources up 139% to 10.6 million oz. San Sebastián silver indicated resources increased 60% to 18.2 million oz, gold indicated resources of increased 25% to 86,300 oz. Endeavour's other exploration projects in Mexico were not drilled in 2013 (Guadalupe y Calvo and Parral Projects in Chihuahua and Arroyo Seco Project in Michoacán) so their resource estimates remain unchanged. The Guadalupe y Calvo resources were estimated in 2012 and the Parral and Arroyo Seco resources were estimated at the end of 2010.
Endeavour Silver Corp., Q4 2013 Earnings Call, Mar 11, 2014
Feb 4 14
Endeavour Silver Corp., Q4 2013 Earnings Call, Mar 11, 2014