Endeavour Silver (EXK) 1 Mar 212020 Q4 Earnings call transcript

Thank you for standing by. This is the conference operator. Welcome to the Endeavour Silver Corp. 2020 Fourth Quarter and Year-End Financial Results Conference Call.

As a reminder, all participants are in listen-only mode. being is conference the recorded. And there After ask an to be the presentation, questions. opportunity will I'd turn remarks. [Operator to like now Instructions] to Director, Relations Galina the Investor for opening Meleger, over conference Please, go ahead.

Officer, Financial quarter our and operator. you, the Gray. XXXX Cooke; results Don the me Good Bradford call. everyone, line Chief have Chief and Thank Chief welcome today Executive financial year-end Officer, Officer, we morning, Endeavour and to Silver With Operating Dan on Dickson; conference fourth the our company's

and Before call information remind securities production, timing grades to on meaning figures, we and statements required that you and XXXX develop by years, and again recoveries to expenditures Endeavour and any like you not for assume to CEO, new now and We applicable required other in to include future get I turn started, call. cost our Silver, will silver joining silver I'm as including regarding and will intend update Bradford information, mines over certain statements do behalf performance and the it And not thank of Endeavour's do laws. of within gold law. forward-looking On today's to than These to Cooke. mineralized may forward-looking obligation I'd zones. anticipated contain the revenue our such applicable required

time in metal higher that and three crunch. higher as highlights. start with years. throughout lower some production operations in to operating last, We production most not We but able everybody of cash of year mandated higher months obviously coupled years call for year Thank on three row, each only turned but XXXX pandemic, government was with mine, of at And one second We in number notwithstanding comments. the drove in significantly group focus a Mexico, Guanacevi, Silver. a operational accident. high turned very with two terms welcome to our without continued drove the our I'll least first much this of year-end posted ultimately, and revenues, we as for financials and the you just And our meet our our COVID costs earnings Galina. costs very safety million for a came priority suspension than flow, Perhaps mining of not delivered lost terms Endeavour into the more hours positive satisfying original in we worked the earnings. higher Maybe level time one largest mines. through down challenging XXXX the to a prices higher our were really guidance,

to again, operations team. to, our kudos So,

Let numbers open in me we'll touch up some then news Q&A. release, for it today's on and

certainly XXXX, we've finished Cash was million, as $XX year $XX million So, year a sales a from year fourth ago. loss million up $X or almost a a ago. was net a share, good income million, million year a very mentioned in $XX And and net up bang, in the XX% quarter of $X.XX year-on-year. flow from $XX negative with were I up

of posted from up full of capital working a million, net negative before loss $X revenue, up and flow year million income $XXX $XX $XX from We in million Cash Moving up to the XX%. highlights. changes, net a million million; of of $X.X XXXX.

gold being Cubo X% credits XX%. Cash the of the down now closure El was down ounces silver of million gold, only actually from per equivalents. due X.X was operation at solid was equivalent of non-core the mine. net to prior year that at silver and $X.XX ounce cost a The production of Our the

sheet, year costs. we million with operating $XX with credit million We cash. ounce costs down strong $XX XX% $XX.XX XXXX of gold net reduction in all-in the year-on-year. working that balance $XX reminder capital, were significant and a sustaining just cash cash, a finished started So, And a million per very

of heck adding the a for was it a cash year So, to balance sheet.

So, today's the those release. financial news are highlights from

this don't Q&A. I now we think up open for operator, why

Certainly.

will Sekelsky with Jake ahead. Please now [Operator question the question-and-answer go Instructions] session. comes begin First We Partners. Alliance from Global

Hey, Brad and team, taking the fourth congrats quarter and for thanks on my strong questions.

Jake. Thanks, Yeah.

your quick been Terronera. to studies I and any timing extended two Just questions whatnot. us turnaround timeline seeing due in some you times Can the you around the seeing provide I just color know of delays feasibility? are the on the peers of have some on pandemic? guess,

So, I'm just in how curious competent that? you a for timeline are

from management the is last the confident. our whole reasonably director but report still development obviously of this on study bang engineering meetings process. on XX% We very complete. project active, that we're feasibility -- the week. conducting director behalf, consultant almost our our in And We're study our would project is of quarterly had The was development

thereafter. go decision targeting development are board study. allow to of to We mid a full summer would for receipt us the And the that feasibility

That's switching some good And the hear. of to new on of what's at priority is exploration a I'm And exploration the release, Terronera, relative touched curious, just budget the rest much how to to the you've that just exploration. the portfolio? that. concessions gears across In that then Greenfield for

some into same a to open structure. area so South about point. does Southeast. very the different the is that for this reserve $X further in main extension year two an in splay year, results veins So And parallel is Terronera vein And It our Southeast untested we've Terronera still veins focusing along property at the of mostly million. or this budget large the three drilling, we're kilometer the far. testing areas two we're had main encouraging And this on vein

various and of up and testing started is three newly of our to we've for a the proportions acquired other The on Cuates vein original big of called Los system. vein. so [technical that properties as one we've West XX it's And traced the -- at in holdings to And Terronera. difficulty] It's one kilometers. just it big

of not only have we'll So, early discovery, this a coming days but year hopeful new Terronera. that new yet, resources that but we some out are

guys. Okay. from my That's it. Thanks Got That's helpful. end. all again,

Ihle H.C. Please Wainwright. Heiko go ahead. with The next comes question from

my taking for questions. Thanks Brad. Hey,

Hey, good morning.

Hey.

funds firm recently market people on note, that purchase in same thing and little have done of on bit? have itself the Has to you that? like that to anything you weren’t And allowed never heard people a anything this are your whole have exceeds able previously mandates that phone billion minimum? feed do interested shares Your cap. Have investor like market seen really calls $X you've gotten base? a before seen so -- you cap that Have to from Congratulations.

indices seeing appear GDX yet, but TSX the currently for if both coming XXX the on index, we're third to could not Absolutely, their under in qualify the we're of be index. reviewed GDX actually the two possibly the for Endeavour to is additions line XX but days, qualify certainly the Heiko. know and the it week and GDXJ. to or inclusion think one, I qualify indices, in certainly don't -- S&P We're do we're But also that March. in I added

not of we cap a $X here these that investors new stocks. market meet up who given pretty institutional investors, our billion coming it's but And which we're number qualify two just index do to only is that indices, quick. U.S., hopeful buying, buy index So,

institutional it involvement. So, could for door more open the

March forwards. albeit also Are And income through have Xst, loss statements. we're $XX.X your gears million March, to on you. anything if Thank these managed of million for a Shifting carry deferred page timeline? going I the figure the there now includes timelines of of bit. was helpful. taxes recover in net some $XX.X quite And tax The in Very XX expiration year-to-date? assets? so, this what's you financial

XX question. note, we dates XX. In financials of actually into get good forwards. loss depth to Heiko, of show the Way that those our Yeah. carry the or note expiration

and timeline actually Bolanitos We at $X believe asset for those to at The is for are in Guanacevi carry XX million loss recognizing should be chew an forwards XXXX. temporary less $X differences. that I million those months to through Bolanitos. and about related Guanacevi

QX So, less than XX months. continued. is

I some this you correctly that are of these Am year? understanding expiring

… is There Sorry.

at -- the you're on at XX, looking page looking -- You're the correct?

looking at not -- I note. But it. know familiar the I'm with I

XX loss profitability. us. think we'll running lasts carry I for -- But forwards expert So, the for And Mexico. ultimately XXXX in typically in of in loss out those start the off a use them years some based carry XXXX, forward just Heiko,

That's your to here at regards forwards. like loss our out now profit -- are Mexico. we're use we put for QX. of XXXX continuing that and for making the what that some in prices. eating for be purposes profitable It's now. expect question we QX QX show So, carry -- We of enough production to Hence in similar, and our these up tax in guidance

it. taking Thanks for question. my Got

safe. stay and queue the in back get I'll So,

Heiko. Thanks,

The Reagor Partners. next go ahead. question comes from Roth Capital with Joseph Please

the Thanks guys. questions. Morning, taking for

Yeah. Thanks, Joe.

costs forward? of kind It seems quarter, on any results what factors thoughts the the are Guanacevi, ore costs purchasing the higher you So, there to higher part your from And had other direct Was fourth there. at related of was ore. then, looking there? driving that of like slightly purchasing going

you're third-party up to to of that ore. Obviously the ore just did more was when Yeah. the higher We believe, local ore with XX% of built. right. Joe, purchase to required bring prices, under more process, our miners were plant, -- which a processing local of the to we're seeing I terms plant

going coming mining to that's special thing XXXX structure in through cost it's persist other -- is -- duty. and and QX The royalties our

property mining didn't about into royalties it it. is El of as actually a metrics. any So, we're coming on significant paying we're is in royalty more have XXXX. a from A we Curso, upfront production And big that We in our El our goes coming capital, have for duties acquired XX% but from KPI Curso, profitable does Mexico, XXXX. the which special

our to forward. So, going cost persist through going structure that's

to going in of taxes invest the peak wishful some tax that structure the Mexican person. of can't investment And roll and any instead. government which less on South Okay. in last the in the But Do America thinking? expensive some Mexico the years, you back and people they them to just saw kind is added because to that has are basically tax expects after there's kind they remember become look their cycle? believe that think of commentary, more government Or front, coming I opportunities then, from gold cumbersome I that see in more the

current this at time thinking wishful that's based it's the off regime think government I there.

-- lot none guess of a regards Canadian companies in was paying is precious introduced Mexican hearing on X.X% gross plus to of how out mining duty there to special The companies. and are got but conservative I with great would forward rhetoric be all taxes. that. metal companies I now. environmental Mexico going it'd that with XXXX, for that mining rolled which we're I'd comfortable quite much frankly, revenue a duty, mining stays You're think and in be taxes And where that's And this always jurisdictions, if it be regime. hope in get that of at would back during lower going we'll

I take XX%, we're supposed news. in XX%. can as overall some maybe State, that. color And a And tax I no the come taxes. new guess, in scheme give week burden out mining in press conference last more in total the Mexico [Indiscernible] around to good things, to that is

there right cost So, and Mexico of in the but a other with jurisdiction to the have has like with would exactly some no is cheapest financial there, tax up They or poor world. crash incomes middle more COVID in countries, to in Canada Mexico for employment investment, love the government. the to not And the States. pandemic Canada in this relief the people, in crash in

it's So, taxes of terms as in I in steady goes she think Mexico.

Okay.

is that at South to of American continue Is quick. other on maybe started that reason that just one thing any to from company Just the the Parral update year? opportunities. what on look then, expect And part this real and on note,

projects. So, diversified our recent yes. exploration in We years

Northern We country. in Chile. really looking at a Chile as we're North America. well have as three active liked and We world-class American And jurisdictions other South prospects

try project more before space move to grow resource resource to in development in exploration terms project So is our space and the $X not studies to team XXXX. grow and we We'd Terronera got just basically million up goes and a Parral We've January, resumed our Parral to from economic exclusively of Mexico. hiatus in one-year Terronera years after two the drilling, And with straight drilling have running. love a then Parral there. Parral budget to

Okay. Thanks.

Let's turn over. it

question next Securities. Craig comes from go with TD Hutchison Please The ahead.

question. your for Hi. Good guys. morning, Thanks

Hi, Craig.

Bolanitos see Just a life extending this at converted well you are there resources still question fairly you on indicated have next mine at reserves the some and reserves? to opportunities have What the resources Bolanitos. into of year do resources, to into sort substantial And point? those of --

Guanacevi is where the which Luz, main is the area than prevents to mining being really drill of Yeah. from because La able underneath us village from different Bolanitos a surface. bit

of of reserve on of a resources. couple beneficial an typically to conversion constraints that's change our recent some see vein So, to one want And, to Can because oil how years as course, envelope, reserve drilling have almost we're underground. envelope run and exercise to of indicated years don't that of Certainly degree. in drill. of it's been has we going the -- could the all of year And additional then convert I of far to well. of reward impact But drilling reserves? ahead reserves to think just Luz the from pricing we the ahead La a resources resources some system cost

terms what's explorations And can me remind Bolanitos budget resume? for you in of the

year. X,XXX,XXX Brownfield's exploration for this

Okay. Great. Thanks, guys.

questions. Thanks for your

The from ahead. go with B. next Lucas Pipes comes Please Riley. question

Hey, there. morning, the on quarter, well And good down everyone. congratulations

Thanks, Lucas.

already of follow-up then add my questions. most So questions I'll but asked, some

the So, remind ore, on we think should you. first on purchased that Thank about business? can us margins how you

to Yeah. And XX% royalties, we all the the when total XX% Ultimately, historically last were which -- that about margin and place. toll done, have we said put it's of from with been. XX in costs and of about pay ultimately closer year, ore. highest From XX% standpoint, the ever we the is production to they it's ore, -- we came get share look processing to a we value about XX%

ore. go through back XX of the through you years, approximately toll X% our we've last throughput If

a So, to follow that shooting be to standpoint generally closer we're at purchase prices, margin for I current would imagine it. from of year, profit XX% this same again going and XX% formula the from

being on that mentioned then, what's just the I kind helpful. Very Chile. there, question how second And Brad, -- priority helpful. in you detail. follow-up like Very of of kind appreciate Chile opportunities? that you some be you. of might very it a And catalysts level, of high towards allocating when your region? to we forward capital the to what are looking Thank terms comes

Thanks, Lucas. We've budgets. million million $X.X Chile for, been eight run think, in generally annual $X.X to I years. We've

Chile our significant to acquire, of So, drilling project ounce We're and equivalent is arguably a we've drilling investment the of million epithermal target. done gold actually The pretty explore North them. X high one prepare projects. Paloma three currently in for far sulfation

to just So gold years rich or open-pit, potentially in bleached. expressions and year our porphyry. some had lot grooming the we've copper project. is started of million next partner interest But copper early ready. to drill days have drilling results several here majors. several two. last yet. Marquez hope we We Cerro month from a It's copper Again, we've We're probably and a And dollars spent of it. going

alteration and Aida Cerro Bolivian our So, of bring confidentiality project agreements we've don't it's drill partner the And signed preference Chile. most Northern at third have some a indications strong We the ready. the is our zone silver to extension permit pit our again, of It's very which yet. and is on open leaves into Aida silver. Marquez, down with belt drill a massive

lead this it We and expect program year year. late it either a to next year at Aida this central or would

that exposure pipeline. done So, things pipeline. we whole liked not And the try to is during to drilling, our world-class get focused add that the we world-class We're truly. and continue goal and market. when into a potential really keep ultimately bear to of We'll development it We grow these yet. acquired prospects has the discovery Chilean on to

best I This Thank continued appreciate luck. the of detail color. you. is all very helpful and

Thanks.

from go ahead. next [ph], Henry private The Westender a Please question investor. comes Instructions] [Operator

very comment that future me had the have pushing very And a strikes very, you beyond Well, the XXXX? XXXX gentleman, that you to envelope far, fourth too and quarter in could good be and seemed substantial. on without could

our silver In last guidance, slightly production be of to our than terms guided public we've to higher year.

financially year. production ounces is we're QX and silver performance financial higher metal forecasted the a guide of costs X.X I QX good a So, provide X.X to a lower indicator. is We million certainly how equivalent year. guidance, Obviously, do good to this pretty this but going with don't for think, prices in

to very, tax little you're year. the use You safely? you you or one-- Just about, up to What'd in going loss a it use very Mexico carry it dicey? up provided this say said going it forward you're up is is

loss what carry standpoint. those function Using used it's a forwards, cost and just historically from of a production we've

to we next forwards Mexico loss have over forwards. from the those loss where at Guanacevi months, we XXXX XX we in challenges likely the and those had So, hopefully eat carry multiple financially entities we say and carry -- and XXXX through accumulated

Excellent. Excellent.

worth up going I think one been of in it's we're again. that, up Thank I've XXXX what since gentlemen. -- the For us you, and

questions. for Thanks your

with next Please question [indiscernible] ahead. Arcadia Economics. comes The go from

Colmex My for -- around guys. me. during arose the developments with the quarter the future does X% the on four, having a that Hi, -- is heard Thank and I that answers silver strategic you and four. the do do the question production. have want to plan I've squeeze Congratulations with I this? silver Endeavour is, and your one, around to The deal concerning of great of hear just the mostly manipulation, has to specifically quarter quarter of manipulation with to [ph]. that. just on have price question an withholding idea has My any combat,

We of we our whether sales, your answers, or we our would because rising, on recently past, that inventory And short-term a silver in QX, the here. September. instance, when on crash and bang. make a you guess really the the September. decision finished on up Well, And silver most I've regard presumption back withhold thank different profit issues silver With direction in the sales view based accelerate sell we question. the different our a have felt instance, it. two typically of silver built sales and on accumulated held to we the did that's which I there's for late that for it goods to extra silver back two got In the inventory for last price price. were short-term because bounce able that was price strategy with

actually on on this to It's regard weeks do infamous the time. squeeze, few a CEO an our from strategy. and it posted time I a we to With Ask have the say comment to website a silver ago. short So, I sales lot got

read welcome view this is you're So, to don't was than perhaps go and most. I my it But that. silver bit on a squeeze. think different a

three I pump and options purchase did classic Those $X.XX $X.XX. to -- options were $X.XX who Tuesday the investors think on knowledgeable silver $XX it was worth $X.XX. the on posting by after it post call Reddit options for the before dump Reddit. days, were promoting And Monday following those thing a some on on before

pump was all. a I of squeeze I smart some at a made investors don't dump. So, that. on think lot money think and it Very short-term

very that their banks banks in long do short generally Because silver paper. out it's agnostic that is are difficult price. short, nor or And using physical What to fractional by Secondly, neither banking sitting I the volts. more lend assets. mean they're And accurately. to squeeze They are long silver. they're generally

physical. to call investors it's silver going probably If on It's your honest, simply out but they're the be do, sliver, if do. squeeze bank the being in the And try ETF, sitting function down local several banks and by of that not manipulation. what's what and cash the is times. you're the physical a to is to to by on branch, options, buy case lent were And

of rollout the hedging silver. doesn't it make up they're money all and position do dollars they rollout like set to it higher And way who thousand to and and ones can could silver, them higher at of are they're they rollout the -- anything actually typically short it and their set cost it of a higher. that And So, prices to right? the going

think, don't to I be all a silver. squeezes So, is of mother in there had

think all this is options the a metals, is it's only of the and this. metals mines, different. in by-product. comment common gold different? is it copper By lock by-product big stream Why revenue Because futures my function. on one it's those in think other gold forward that sell to typically compromise, traded And way, the last of of the Silver diversified lead I a but all -- their the by-product is for amongst silver, mines. and mines their the producers and global market I zinc

So, the their compared products. their they're that's that the primary derivative miners a higher has unhedged it, diversified to silver. silver the And compared metals center massively forward What other means to into sell buys that and is amongst metals Who book on all forward contracts. physical. those because buying

only have physical, a they commitment the commitment So, that's of physical. now structure that more derivative long they're they have the because they And sharp a to not with balance market. agnostic, buy and silver

the it's very main silver, higher So, to think would and the the try miners. something I and bankers prices because like very, beneficiaries silver squeeze be challenging of

Okay.

kind Thank that question. for answer. going my silver projection your So is -- for What of your XXXX? in last this is you off

In market, rarely silver ball, well, got to when I a two years, not forecasting government it reasons. gold, rates, underway, two fed obviously Crystal least well more internally, years metals, intervention, there's backdrop I view to market well probably whole it a low say the case massive no precious metal bull primarily underway. precious do that think for the at but for It's there's shy We maybe of record three. interest run. that externally. comes I'm of in change

It's metals. industrial a gold fundamentals green of higher a industrial on underlying side Silver price, taking really And off. higher But an a silver, therefore silver is very the silver just a a price is the strong. again, not metal. metal. So precious is

industry an have electronics can't without silver. You

solar photovoltaic silver. power without You can't have

electric silver. have can't You vehicles without

finally silver. amongst in economy. have And can't without generalist, an is think a telephonics emerging go-to-metal investors silver XG that technology, You green I appreciation a there that is

very for your answer. much you Okay. Thank

questions. Thanks for your

any the conference over for remarks. to back the I the would question-and-answer This Cooke, to Bradford CEO, session. turn like closing concludes

Thank year. do guide you, I XXXX a years. us, today. to it's think all in tuned. very after great listening And a to operator. satisfying to was some XXXX. Thanks was finish a the thanks again, this great stay way for year in QX Obviously, how and we for year, was a great challenging good expect

This concludes conference call. today's

You may disconnect your have day. lines. participating, you Thank for and a pleasant