Endeavour Silver Provides Update on Mining Operations
May 30 2019 - 6:50AM
Endeavour Silver Corp. (NYSE: EXK; TSX:
EDR) provides the following update on its silver-gold
mining operations in Mexico. In recent months, management
initiated a number of measures to improve its operating and
financial performance.
These include changes to mine-site management
and contractors, changes to employee and contractor supervision,
renting used mining equipment and leasing new mining equipment, and
revising the 2019 mine plans for all four mines, particularly
Guanacevi. The Company has cut operating and administrative
costs, reduced the employee and contractor workforce by 18% and
deferred all discretionary expenditures.
The immediate goal of these actions is to turn
the Company around from generating losses in the first half of 2019
to generating free cash flow at current metal prices in the
third quarter.
Management notes that these actions are starting
to have a positive impact on the daily operating performance of the
mining operations. However, the Company’s performance in Q2,
2019 will not likely differ from its Q1, 2019 performance as these
initiatives take time to gain full traction and the Company
incurred significant one-time expenses such as severance costs in
Q2, 2019.
The Company does anticipate that these measures
will allow it to generate free cash flow in the Third and Fourth
Quarters, 2019, with Second Half production expected to be higher
than First Half production and Second Half costs forecasted to be
substantially lower than First Half costs, based on a $15 per oz
silver price, $1,275 per oz gold price, and 19:1 Mexican peso per
US dollar exchange rate.
Bradford Cooke, CEO, stated, “Our goal in
implementing these actions is to make our mining operations more
efficient so they can return to profitability quickly and
permanently. Reducing the operating costs and work force
combined with investing in new mining equipment and retraining are
keys to making our mines more sustainable even at low metal
prices.”
“At Guanacevi, we stopped new mine development
at the lower grade Santa Cruz and Porvenir Norte mines to focus on
mining the remaining accessible reserves there. We also
re-allocated employee and contractor resources to accelerate the
development and production of the higher grade Milache and SCS
orebodies. This should have a big impact on our operating and
financial performance at Guanacevi.”
About Endeavour ‑ Endeavour
Silver Corp. is a mid-tier precious metals mining company that owns
and operates four high-grade, underground, silver-gold mines in
Mexico. Endeavour is currently advancing the Terronera mine project
towards a development decision and exploring its portfolio of
exploration and development projects in Mexico and Chile to
facilitate its goal to become a premier senior silver producer. Our
philosophy of corporate social integrity creates value for all
stakeholders.
SOURCE Endeavour Silver Corp.
Contact Information - For more
information, please contact: Galina Meleger, Director, Investor
RelationsToll free: (877) 685-9775Tel: (604) 640-4804Fax: (604)
685-9744Email: gmeleger@edrsilver.com Website:
www.edrsilver.com
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Cautionary Note Regarding
Forward-Looking Statements
This news release contains “forward-looking
statements” within the meaning of the United States private
securities litigation reform act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation. Such forward‑looking statements and information herein
include but are not limited to statements regarding Endeavour’s
anticipated performance in 2019 including changes in mining and
operations and the timing and results of various activities. The
Company does not intend to and does not assume any obligation to
update such forward-looking statements or information, other than
as required by applicable law.
Forward-looking statements or information
involve known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of Endeavour and its operations to be materially
different from those expressed or implied by such statements. Such
factors include but are not limited to changes in national and
local governments, legislation, taxation, controls, regulations and
political or economic developments in Canada and Mexico; financial
risks due to precious metals prices, operating or technical
difficulties in mineral exploration, development and mining
activities; risks and hazards of mineral exploration, development
and mining; the speculative nature of mineral exploration and
development, risks in obtaining necessary licenses and permits, and
challenges to the Company’s title to properties; as well as those
factors described in the section “risk factors” contained in the
Company’s most recent form 40F/Annual Information Form filed with
the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on
assumptions management believes to be reasonable, including but not
limited to: the continued operation of the Company’s mining
operations, no material adverse change in the market price of
commodities, mining operations and production will be completed in
accordance with management’s expectations and achieve their stated
production outcomes, and such other assumptions and factors as set
out herein. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking statements or
information, there may be other factors that cause results to be
materially different from those anticipated, described, estimated,
assessed or intended. There can be no assurance that any
forward-looking statements or information will prove to be accurate
as actual results and future events could differ materially from
those anticipated in such statements or information. Accordingly,
readers should not place undue reliance on forward-looking
statements or information.
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