Endeavour Silver Corp. (TSX: EDR, NYSE: EXK) has recorded its highest quarterly production over the last two years from its three underground mines in Mexico: Guanacevi in Durango state, Bolañitos in Guanajuato state and El Compas in Zacatecas state.
Production in Q4 2020 reached 1.11 million silver ounces and 12,568 gold ounces for 2.1 million ounces of silver equivalent. This was higher compared to Q4 2019 due to the continued operational improvements at the Guanacevi and Bolañitos mines.
At Guanacevi, throughput increased 15%, with a 31% increase in silver equivalent grades processed compared to Q4 2019. At Bolañitos, throughput increased 31%, with an 8% increase in silver equivalent grades compared to the prior-year quarter.
The company’s 2020 full year production has also met its original guidance, notwithstanding the government mandated two-month suspension of operations due to the pandemic. In fiscal 2020, silver and gold production totaled 3.51 million ounces and 37,139 ounces respectively for 6.5 million ounces of silver equivalent.
Endeavour withdrew its 2020 production guidance in early April due to the covid-19 related temporary shutdown mandated by the Mexican government, and chose not to issue revised guidance when production resumed at the end of May due to continued uncertainty caused by the ongoing pandemic.
However, annual silver production still exceeded the high range of original guidance by 1%, while gold production missed the low range by 2% and silver equivalent production achieved the mid-point of the original 2020 production guidance.
“Endeavour enjoyed its strongest operational performance in two years thanks to the measures we initiated in 2019 to return the Guanacevi and Bolañitos mines to profitability,” Endeavour CEO Bradford Cooke stated in a press release.
“Subject to our pending feasibility study, appropriate financing and board approval, we plan to turn our attention this year to developing our next core asset, the Terronera project in Jalisco state,” Cooke added.
Shares of Endeavour Silver were down 3.5% by noon EST on Thursday. The company has a market capitalization of C$1.08 billlion.