Endeavour Silver (NYSE:EXK) reported higher production, record metal sales and a sharp increase in mine operating cash flow during the second quarter, as the Terronera mine continued ramping up and the Kolpa operation achieved higher throughput.
Chief Executive Officer Dan Dickson said the company produced nearly 2 million ounces of silver and more than 10,000 ounces of gold during the quarter, totaling 3 million silver-equivalent ounces. Production was 36% higher than in the second quarter of 2025.
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Revenue rose 150% year over year to $212 million. Mining operating earnings reached $74 million, compared with $7 million a year earlier, while mine operating cash flow before taxes increased 300% to $100 million. Endeavour recorded adjusted net earnings of $45 million, or $0.15 per share.
Costs Rose Alongside Metal Prices
All-in sustaining costs, net of by-product credits, were $37 per ounce in the quarter, up 47% from the prior-year period. Dickson said higher profitability also raised royalties, purchase-material costs, profit-sharing expenses and mining taxes.
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Direct operating costs per ton increased 14% from the prior-year quarter, partly reflecting the appreciation of the Mexican peso and its effect on inputs. The company also cited cost inflation in labor and supplies.
“With increased profitability, we continue to invest in sustaining capital costs,” Dickson said. He added that metal prices can directly affect costs through royalties, mining duties, third-party material purchases and profit-sharing requirements.
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At Guanaceví, all-in sustaining costs were also affected by lower grades and increased purchases of third-party ore. Dickson said purchased ore accounted for more than 25% of the operation’s direct costs during the quarter, but the company earns an estimated 30% to 33% margin on such material and views it as a way to extend mine life.
The higher metal-price environment has enabled Endeavour to mine lower-grade areas at Guanaceví, according to Dickson. The company expects higher-grade areas to come into production in the near future, while drilling continued in deeper portions of the mine and along the Cruz vein.
Terronera Ramp-Up Continues
Terronera’s daily throughput remained consistent during the quarter as the processing plant focused on recoveries. Silver grades were in line with the company’s plan and are expected to rise in the second half as mining moves into higher-grade areas.