Endeavour Silver's Q4 2024: Unpacking Contradictions in Cost Pressures, Construction Timelines, and Commercial Production

These are the key contradictions discussed in Endeavour Silver's latest 2024Q4 earnings call, specifically including: Cost pressures due to Mexican peso depreciation, Terronera construction timeline, labor costs and exchange rate impacts, CapEx budget for Pitarrilla, and Terronera's commercial production timeline:



Silver and Gold Production and Market Dynamics:
- Endeavour Silver reported a total of 7.6 million ounces of silver equivalent in 2024, achieving the higher end of its revised guidance range of 7.3 million to 7.6 million ounces.
- The increase in silver production was driven by rising industrial demand, supply constraints, and the company's strategic positioning to benefit from favorable market dynamics, including gold's significant rise in 2024.

Cost Management and Currency Impact:
- The company's direct operating cost per tonne increased by 8% in 2024, primarily due to lower throughput at the Guanacevi mine.
- Despite cost increases, Endeavour benefitted from a weakening Mexican peso in the second half of the year, which positively impacted its overall cost structure.

Terronera Project Progress and Ramp-Up:
- Construction at the Terronera project reached 89% completion as of December 31, 2024, with a total estimated project cost of $332 million.
- The project is on track to begin wet commissioning in late April 2025, with commercial production expected in Q3 2025. This will significantly contribute to Endeavour's revenue growth and operational efficiency.

Pitarrilla Project Advancement:
- A budget of $26 million was allocated for exploration and evaluation efforts at the Pitarrilla project in 2025.
- Drilling and technical studies are expected to support an economic assessment by Q1 2026, with Endeavour anticipating positive results that could position Pitarrilla as their next major growth asset.