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VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 05/06/13 -- Endeavour Silver Corp. (TSX: EDR)(NYSE: EXK) announced today its financial results for the First Quarter, 2013. Endeavour owns and operates three underground silver-gold mines in Mexico: the Guanacevi mine in Durango state, and the Bolanitos and El Cubo mines in Guanajuato state.
Highlights of First Quarter 2013 (Compared to First Quarter 2012)
Financial
-- Net earnings decreased 27% to $14.4 million ($0.14 per share)-- Adjusted earnings(1) decreased 34% to $12.9 million ($0.13 per share)-- EBITDA(1) decreased 8% to $31.0 million-- Cash flow from operations, before working capital changes decreased 8% to $24.3 million-- Mine operating cash flow(1) increased 2% to $32.5 million-- Revenue increased 43% to $69.9 million on 1,515,077 silver oz sold and 15,724 gold oz sold-- Realized silver price fell 11% to $29.38 per oz sold-- Realized gold price fell 4% to $1,613 per oz sold-- Cash cost (2) increased 60% to $10.04 per oz silver payable (net of gold credits)-- Bullion inventory at quarter-end included 234,970 oz silver and 2,091 oz gold-- Concentrate inventory at quarter-end included 321,487 oz silver and 5,589 oz gold-- Cash and equivalents of $28.4 million and working capital of $42.0 million at quarter-end
Operations
-- Silver production up 39% to 1,489,746 oz-- Gold production up 138% to 15,032 oz-- Silver equivalent production up 63% to 2.32 million oz (at a 55:1 silver:gold ratio)-- Received two awards for Corporate Social Responsibility at Bolanitos and El Cubo-- Strengthened management team with appointments of new Vice President, Corporate Development, VP, Health, Safety and Sustainability and Director of Investor Relations-- Signed two concentrate sales contracts for Bolanitos concentrates to facilitate mine expansion-- Successfully re-negotiated the annual collective bargaining agreement with the miner's union at El Cubo(1) Adjusted earnings, mine operating cash flow, EBITDA and cash costs are non-IFRS measures. Please refer to the definitions in the Company's Management Discussion and Analysis.
Bradford Cooke, CEO of Endeavour Silver, stated, "Endeavour enjoyed a very good start to the year, setting new records for quarterly silver and gold production. As a result, the Company established new highs for quarterly revenue and mine operating cash flow, although operating cash flow and net earnings were both lower than last year due to a higher operating cost, increased exploration activity and larger depletion related to the El Cubo acquisition."
"Our cash cost of production increased in the 1st quarter due to the growing contribution of the high cost El Cubo mine but the El Cubo operating cost fell sharply compared to the fourth quarter 2012 thanks to higher production, throughput, grades and recoveries. While there is still much work to be done to reduce mine operating and sustaining capital costs further, we continue to make good progress at El Cubo."
To view a video of Chairman Bradford Cooke commenting on today's results, please visit our website or click here: http://youtu.be/yVekXin-pAQ.
