Endeavour Silver – Q4 Operations Review, Terronera Wet Commissioning In Q2, Acquisition Of Producing Kolpa Mine, and Pitarilla Development Project Update
Dan Dickson, CEO and Director of Endeavour Silver (TSX:EDR – NYSE:EXK), joins us to review the Q4 and full year operational metrics at the producing Guanacevi and Bolañitos silver mines, a construction update at the key Terronera Project in Mexico, the announcement of an acquisition of Minera Kolpa and their producing Kolpa Mine in Peru, and updates on the Pitarilla and Parral development projects.
Consolidated production last year from Guanacevi and Bolañitos met their updated 2024 guidance with 4,471,824 ounces (oz) of Silver (Ag) and 39,047 oz of gold (Au) for a total of 7.6 million silver equivalent oz. At Guanacevi in Q4 the operations team needed to replace and install a new ball mill trunnion, which was completed on November 30, 2024, and processing resumed in December to full capacity.
At the flagship Terronera Project, surface construction is nearing 90% complete. Dry commissioning is advancing on the Upper Platform, and the focus continues on the Lower Platform construction and filter press area, for full wet commissioning to begin here in Q2 2025. Dan anticipates commercial construction will commence in Q3 of this year. The Terronera Mine has the potential to double the production output, adding in around 7 million AgEq per year, with a very low All-In Sustaining Costs, projected to be down around $13 per AgEq oz.
Next we shifted over to the key news announced on April 1st, where that company announced a transaction to acquire all of the outstanding shares of Compañia Minera Kolpa S.A. (“ Minera Kolpa ”), and its main asset, the silver-focused polymetallic Huachocolpa Uno Mine (“ Kolpa ”); located in the districts of Huachocolpa and Santa Ana in the province and department of Huancavelica, approximately 490 km southeast of Lima, Peru. In 2024, the Kolpa mine produced approximately 2.0 million ounces of silver, 19,820 tonnes of lead, 12,554 tonnes of zinc and 518 tonnes of copper, for approximately 5.1 million silver equivalent ounces (“AgEq oz”). In 2024, the all-in sustaining costs of $22.80/oz Ag. The transaction is expected to close by June, and this will be a nice bolt-on producing mine for the company adding to the production profile in H2 and moving forward.
We wrap up discussing the further growth potential from the Pitarrilla and Parral Projects in Mexico. Both are key advanced exploration and development projects in the portfolio that will have ongoing exploration and derisking work programs in the second half of this year. Dan mentions they have an eye to moving many of the development team members from Terronera over to Pitarilla, once Terronera is up and producing; working on further development next year as the next project to move down the pathway towards construction.
If you have any follow up questions for Dan regarding any of the work going on at the Endeavour Silver, then please email us at either Fleck@kereport.com or Shad@kereport.com.
- In full disclosure, Shad is a shareholder of Endeavour Silver at the time of this recording, and may choose to buy or sell shares at any time.
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Wowzer, look at the gold pictures, DRYDEN GOLD REPORTS A NEW DISCOVERY 2 ELORA WITH SIGNIFICANT VISIBLE GOLD. DT
I just got off a call with the President of Dryden Gold, Maura Kolb, where we discussed that hole, so stay tuned for the interview coming out later today.
Will the retail shareholder who is below water on Endeavour ever see their screen turn green anytime soon? This new financing at $3.88 for $45M (28% below market value on April 1, the day the offering was announced) suggests they could be waiting a long time. Thoughts about the state of financing today and this new deal, which is not guaranteed, which the company said if it falls through they will use for other purposes, whatever that may be.
The financing will mainly be used for the acquisition of the Kolpa Mine as covered in the interview with Dan above. They’ve got all the development and exploration at Terronera and Pitarilla where those funds will go if not used for Kolpa.
As with all stocks it really depends on where someone bought as to whether they are above water or below water. I was buying Endeavour Silver (EXK) back in November of 2023 at $1.97, and both added and trimmed in the mid- $2’s and then mid-$3’s. I was buying again last Friday the 4th into the carnage, and added 2 more tranches to EXK today into the sector weakness (most PM stocks were selling off today not just Endeavour).
I see the recent weakness as a gift in this stock, and pared back some holdings in royalty companies just to add more here and in other solid PM companies that were selling off into the F.U.D. (Fear, Uncertainty, and Doubt). This kind of volatility can be an investors best friend as it allows for market dislocations in share prices and valuations that can be exploited.
Well, Put! I don’t know of any investment where “Buy and Hold” applies, all markets go up and all markets go down. The tide of prices is continually going in and out. DT
Thanks for your insights Excelsior.
Merger and Acquisition Opportunities In The Mining Stocks – Part 9
Excelsior Prosperity w/ Shad Marquitz (04-08-2025)
https://excelsiorprosperity.substack.com/p/merger-and-acquisition-opportunities-cc8