Endeavour Silver's Terronera and Kolpa Projects Poised to Double Output

Endeavour Silver Corp. is poised to double its output with the commissioning of the Terronera project and the addition of Kolpa as a third producing asset. The company aims to transition into a larger intermediate producer, with these new assets expected to significantly increase its production capabilities.

Endeavour Silver Corp. (EXK) is positioned to significantly enhance its production capabilities with the commissioning of the Terronera project and the addition of Kolpa as a third producing asset. These strategic moves are expected to transition the company into a larger intermediate producer, with the new assets set to substantially increase its output.

The Terronera mine in Jalisco, Mexico, is central to Endeavour’s growth strategy. Scheduled for commercial production by late 2025 or early 2026, the mine is projected to more than double Endeavour’s silver-equivalent output and reduce all-in sustaining costs (AISC) by 20% [1]. The mine’s contribution will be crucial in achieving Endeavour’s 2026 target of 20 million silver-equivalent ounces annually, a 40% increase from 2024 levels [4].

Adding to the company’s portfolio is the acquisition of Minera Kolpa in Peru, which contributed 1.455 million silver ounces and 7,706 gold ounces in Q2 2025. This acquisition is expected to integrate smoothly into Endeavour’s operations, adding stable production and geographic diversification [3]. The Kolpa project will further enhance Endeavour’s production capabilities, aligning with the company’s long-term goal of reducing reliance on a single jurisdiction while capitalizing on Peru’s favorable mining environment.

The Pitarrilla project in Durango, Mexico, also presents a high-grade catalyst. Recent drilling at Pitarrilla intersected 4,630 grams per tonne (gpt) of silver, 2.26% lead, and 3.49% zinc over 0.20 meters, underscoring its potential for near-mine resource expansion [1]. This high-grade discovery is valuable in a sector where primary silver grades have declined by nearly 50% over two decades [5], positioning Endeavour as a rare growth story.

The silver sector is experiencing a perfect storm of demand drivers. Industrial consumption, particularly in solar and electric vehicles (EVs), is surging. Each solar panel requires 20 grams of silver, and global solar capacity additions are projected to reach 375 gigawatts in 2024 alone [5]. Meanwhile, EVs contain twice as much silver as conventional vehicles, and the transition to electrification is accelerating.

Simultaneously, BRICS nations are reshaping the global monetary system. The 2025 Rio de Janeiro summit emphasized de-dollarization, with over 65% of intra-BRICS trade now settled in local currencies [2]. Precious metals, especially silver and gold, are gaining traction as hedges against currency volatility and U.S. sanctions. Central banks added 1,136 tonnes of gold to reserves in 2022, and similar trends are expected to persist [5]. While Endeavour is not explicitly mentioned in BRICS-related strategies, its focus on silver—a metal increasingly used in trade settlements—positions it to benefit from this shift.

The company’s valuation metrics suggest it is trading at a discount relative to its peers and intrinsic value. As of September 2025, Endeavour has a forward price-to-earnings (P/E) ratio of 23.26 and a price-to-sales (P/S) ratio of 7.0x, significantly higher than the industry average of 2.6x [5]. However, this appears to reflect market skepticism about near-term production challenges rather than a fundamental mispricing. The company’s balance sheet is robust, with $52.5 million in cash and no debt, providing flexibility to fund operations during the Terronera ramp-up [3]. Analysts have set a fair value range of $15.39–$18.17 per share, implying the stock is undervalued by over 60% at current prices [5].

In conclusion, Endeavour Silver Corp. is poised to capitalize on the growing demand for silver driven by green energy transitions and geopolitical shifts. With its strategic acquisitions and operational momentum, Endeavour is well-positioned to transition into a larger intermediate producer. For investors seeking exposure to the silver bull market, Endeavour presents an attractive risk-reward profile.

References:
[1] Endeavour Silver's Terronera Mine Startup Advancing Well [https://edrsilver.com/news-media/news/endeavour-silvers-terronera-mine-startup-advancing-10665/]
[2] Earnings Call Transcript: Endeavour Silver Q2 2025 Results [https://www.investing.com/news/transcripts/earnings-call-transcript-endeavour-silver-q2-2025-results-miss-forecasts-93CH-4202630]
[3] Endeavour Silver Produces 1,483,736 Oz Silver and 7,755 Oz Gold [https://www.nasdaq.com/press-release/endeavour-silver-produces-1483736-oz-silver-and-7755-oz-gold-25-million-silver]
[4] Silver Supply and Demand Gap Widens [https://discoveryalert.com.au/news/silver-supply-demand-gap-widening-2025/]
[5] EXK Valuation Metrics [https://intellectia.ai/stock/EXK/valuation]