• Central-South American focused miner Endeavour Silver (TSX:EDR) releases 2019 financial results
  • The company optimistic despite full year EBITDA of negative C$14.7 million (US$11.1 million)
  • Gross full year revenue recorded at C$ 161.4 million (US$121.7 million)
  • CEO Bradford Cooke described 2019 as ‘operationally challenging’
  • EDR shares were down 0.74 per cent and traded at C$2.68 per share.

Negative cash-flow and income loss has not put a damper on Endeavour Silver’s (TSX:EDR) outlook on its operations in 2020.

The company’s full year 2019 earnings before interest, tax, depreciation and amortization was negative C$14.7 million (US$11.1 million).

It also recorded a fourth quarter gross revenue of C$45.9 million (US$34.6 million), ending the year with C$161.4 million (US$121.7 million), which came from the sale of 4.1 million ounces of silver at C$21.60 (US$16.29) per oz and 39,151 oz of gold at C$1885.97 (US$1422) per oz.

In contrast, the company’s operational cash flow registered at negative C$10.5 million (US$7.9 million) in Q4 with the full year amount registering at negative C$19.8 million (US$14.9 million).

The company’s net income also had a downward trend, with Q4 recording a loss of C$23.7 million (US$17.9 million) and a full year net loss of $C63.8 million (US$48.1 million).

Endeavour Silver CEO Bradford Cooke described 2019 as an ‘operationally challenging year’ due to higher operating, administrative and exploration costs, but was confident in the company’s direction after changes were made in the previous two quarters. 

“The company’s financial performance last year was negatively impacted by significant operating issues and higher costs at each of our mines,” he said.

“We made sweeping changes to the mining operations in Q2 and Q3 and as a result, we are finally seeing production rising and costs falling,”

“Our headline net loss includes several extraordinary items in addition to underperformance of our mines, such as increased general administrative costs, higher exploration costs, significant depreciation and depletion due to short mine lives, elevated contractor mobilization costs, employee severance, expensing capital development due to exhaustion of remaining reserves, and the suspension of operations at El Cubo.”

Cooke also said there were silver linings despite the lacklustre results, particularly with commercial production at El Compas, Guanacevi showing improved productivity which returned the mine to a break even cash-flow and positive earnings, and receiving government permits for Terronera.

Positive exploration results for Guanacevi, Bolanitos and Parral and the commencement of drilling programs at two properties in Chile have further buoyed the company’s outlook.

Endeavour Silver shares were down 0.74 per cent and traded at C$2.68 per share.

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