Endeavour Silver's 2025 Q1: Navigating Contradictions in Terronera's Ramp-Up and Cost Projections

Terronera ramp-up timeline, Terronera ramp-up timeline and production guidance, and Terronera ramp-up and cost estimates are the key contradictions discussed in Endeavour Silver's latest 2025Q1 earnings call.



Production and Revenue Performance:
- Endeavour Silver produced 1.2 million ounces of silver and 8,300 ounces of gold in Q1, totaling 1.9 million silver equivalent ounces, and reported $64 million in revenue, in line with the prior year.
- The performance was driven by higher precious metal prices and the addition of new assets like Terronera and Kolpa.

Terronera Construction and Commissioning:
- Terronera began producing concentrate at the end of Q1 and is in its final stages of construction, with commissioning underway.
- The plant is expected to significantly contribute to Endeavour's production profile and serve as a long-term cornerstone asset, supporting the company's growth strategy.

Kolpa Acquisition and Exploration Upside:
- Endeavour acquired the Kolpa mine in Peru, enhancing its production profile with significant exploration upside and existing infrastructure for a long mine life.
- The company plans to validate and update the historical resource estimate and has a $12 million exploration program for the next 24 months to identify additional resource potential.

Financial Stability and Cash Position:
- Endeavour reported a net loss of $32.9 million primarily due to unrealized non-cash impacts of gold hedging, but excluding these adjustments, the company reported a small adjusted loss of $200,000.
- The company had a cash position of $65 million and working capital of $15 million at the end of Q1, despite ongoing investments in development activities at Terronera.