Full Year 2024 Endeavour Silver Corp Earnings Call

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Operator: Go to Beadaholique.com for all of your beading supply needs! Thank you for standing by. This is the conference operator.

Thank you for standing by this is the conference operator welcome to the Endeavour Silver 2024 at year end Conference call. As a reminder, all participants are in a listen only mode and the conference is being recorded after the presentation. There will be an opportunity to ask question joined the question queue you May Press star.

Operator: Welcome to the Endeavour Silver 2024 year-end conference call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star, then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star, then zero.

And then one on your telephone keypad.

Do you need assistance during the conference call you May signal, an operator by pressing Star then zero.

Allison Pettit: We'd now like to turn the conference over to Allison Pettit, Director of Investor Relations. Please go ahead.

Speaker Change: I would now like to turn the conference over to Alison Pettit Director of Investor Relations. Please go ahead.

Alison Pettit: Thank you operator, and good morning, everyone before we get started I ask that you view our M. D N. A the cautionary language regarding forward looking statements and the risk factors pertaining to these statements are.

Allison Pettit: Thank you, Operator, and good morning, everyone. Before we get started, I ask that you view our MD&A precautionary language regarding forward looking statements and the risk factors pertaining to these statements.

Allison Pettit: Our MD&A and financial statements are available on our website at edrsilver.com.

Alison Pettit: Our MD&A and financial statements are available on our website at Edr silver Dot com.

Allison Pettit: On today's call we have Dan Dickson, Endeavour Silver's Chief Executive Officer, Elizabeth Senez, our Chief Financial Officer, and Dawn Gray, Endeavour's Chief Operating Officer. Following Dan's formal remarks, we will open the call for questions.

Speaker Change: On today's call, we have Dan Dickson Endeavour, Silver's Chief Executive Officer.

Speaker Change: Elizabeth and as our Chief Financial Officer, and Don Gray endeavors, Chief operating officer.

Speaker Change: Following Dan's formal remarks, we will open the call for questions and now over to Dan.

Dan Dickson: And now over to Dan. Thank you, Allison, and welcome, everyone. As we commence this year's earnings call, it's important to acknowledge the dynamic landscape that shaped the mining sector in 2024. Gold prices surged 27%, closing the year at $2,624 per ounce, the largest annual rise since 2010. Gold hit a record of $2,786 per ounce in October and surpassed $2,900 earlier this year due to global tensions, economic slowdown fears, and concerns over US trade policies. Silver often mirrors gold's movement, and we expect this correlation to continue. Silver's rise has been driven by industrial demand and supply constraints.

Speaker Change: Thank you Allison and welcome everyone.

Dan Dickson: As we commence this year's earnings call. It is important to acknowledge the dynamic landscape that shape the mining sector in 2024.

Dan Dickson: Gold prices surged, 27% closing the year at 2000 and $624 per ounce the largest annual rise since 2010.

Dan Dickson: Gold hit a record of 2000 and 786.

Dan Dickson: Our dollars per ounce in October and surpassed 2900 earlier this year due to the global tensions economic slowdown slowdown pairs.

Dan Dickson: And concerns over U S trade policies.

Dan Dickson: Sulfur often mirrors schools movement, and we expect this correlation to continue silver.

Dan Dickson: Silver as rice has been driven by industrial demand and supply constraints, the global shift to electrification renewable energy and electric vehicles is driving demand for silver and solar panels batteries.

Dan Dickson: The global shift to electrification, renewable energy, and electric vehicles is driving demand for silver in solar panels, batteries, and key technologies. At the same time, supply deficits have emerged as new production struggles to keep pace with mine depletion. Rising industrial demand and supply changes continue to put upward pressure on silver prices. We also expect demand as a safe haven asset to have a greater impact on the silver market going forward. Endeavour Silver is well positioned to benefit from these favorable market dynamics.

Dan Dickson: All of these.

Dan Dickson: At the same time supply deficit have emerged as new production struggled to keep pace with mine depletion.

Dan Dickson: Rising industrial demand supply changes continues to put upward pressure on silver prices. We also expect demand as a safe haven asset to have a greater impact on the silver market going forward.

Dan Dickson: Endeavour silver is well positioned to benefit from these favorable market dynamics.

Dan Dickson: Now let's discuss production in more detail. In 2024, Endeavour Silver produced 7.6 million ounces of silver equivalent, achieving the higher end of the revised guidance range of 7.3 to 7.6 million ounces. Guidance was lowered in Q3 2024 due to a trunnion failure at the Gowanus Civi mine, which impacted throughput from August to December. The team worked tirelessly to resolve the issue, and by December, Gwanasee resumed operations at its usual rate of 1,200 tonnes per day. I'd like to extend my sincere gratitude to our operations team for their swift and effective actions in overcoming this challenge.

Dan Dickson: Discuss production in more detail.

Dan Dickson: In 2020 for Endeavour Silver produced seven 6 million ounces of silver equivalent achieving the higher end of the revised guidance range of seven three to seven 6 million ounces guide.

Dan Dickson: Guidance was lowered in Q3 2024 due to a trunnion failure at the warrants to be Martin, which impacted throughput from August to December.

Dan Dickson: The team worked tirelessly to resolve the issue and by December wanted to resume the operations she's already.

Dan Dickson: I'd like to extend my sincere gratitude to our operations team for their Swift and effective actions in overcoming this challenge.

Dan Dickson: While Guanesvi had its challenges, Polonidos continued to remain steady with increased gold production driven by higher gold grades, offset by the lower silver production due to the slightly lower silver grade. In 2024, the company reported total revenue of $218 million, up 6% compared to 2023, with cost of sales of $176 million, mine operating earnings of $42 million, and mine operating cash flow of $72 million. Endeavour recognized an adjusted net earnings of $8 million, or an adjusted earnings per share of three cents. After excluding loss on derivative contracts, mark to market deferred share unit canine on disposal and unrealized foreign exchange and investment loss.

Dan Dickson: Well want us to be had its challenges. Following you just continued to remain steady with increased gold production driven by higher gold grades.

Dan Dickson: Offset by the lower silver production due to slightly lower silver grades.

Dan Dickson: In 2024, the company reported total revenue of $218 million.

Dan Dickson: Up 6% compared to 2023 with cost of sales of $176 million mine operating earnings of $42 million and mine operating cash flow was $72 million.

Speaker Change: Do you ever recognized an adjusted net earnings of $8 million or an adjusted earnings per share of <unk>. After school in loss on derivative contracts mark to market deferred share units gain on disposal and unrealized foreign exchange and investments.

Dan Dickson: Losses.

Dan Dickson: Cost of sales increased approximately 4% compared to the previous year. While there are a number of drivers, including lower economies of scale from lower throughput, fixed costs incurred during the trend and failure at Guantanamera and inflationary pressures early in 2024. The company did benefit from the weakening of the Mexican peso in the second half of the year. Direct operating costs per ton were up 8% for the year, primarily due to the lower throughput at Kwanasabi. Consolidate cash costs per ounce net of byproduct credits decreased by 4% to $12.99 in 2024, predominantly driven by higher byproduct gold sales.

Dan Dickson: Cost of sales increased approximately 4% compared to the previous year.

Dan Dickson: There are a number of drivers, including lower economies of scale from lower throughput fixed costs incurred during the Chinese want to speed and inflationary pressures early in 2020 for.

Dan Dickson: The company did benefit from the weakening of the Mexican peso in the second half of the year.

Dan Dickson: Direct operating costs per ton were up 8% for the year, primarily due to the lower throughput at Qantas would be.

Dan Dickson: Consolidated cash cost per ounce net of byproduct credits decreased by 4% to $12.99 in 2024.

Dan Dickson: And really driven by higher byproduct gold sales.

Dan Dickson: All in sustaining costs increased by 4% to $23 88 per ounce compared to the prior year again due to lower production of silver ounces, partially partially offset by the lower cash costs.

Dan Dickson: All in sustaining costs increased by 4% to $23.88 per ounce compared to the prior year. Again, the lower production of silver ounces partially offset by the lower cash costs. As of December 31st, 2024, the company's cast position was $106 million, and we have working capital of $79 million. Cash and Working Capital saw an increase in Q4 following a $73 million deal of financing. aimed at advancing the Pizzeria project and strengthening general working capital. As a reminder, Pizzeria is the company's next major growth project. Located in Durango, Mexico, it's one of the largest undeveloped silver deposits globally with nearly 600 million ounces of silver.

Dan Dickson: As of December 31, 2024, the company's cash position was $106 million, we had working capital of $79 million.

Dan Dickson: Cash and working capital saw an increase in Q4, following a $73 million.

Dan Dickson: Financing.

Dan Dickson: Aimed at advancing the <unk> project and strengthening general working capital as a reminder, pitri as the company's next major growth project located in Durango, Mexico. It's one of the largest undeveloped silver deposits globally with nearly 600 million ounces of silver.

Dan Dickson: The company has allocated a $26 million budget to advance exploration, evaluation efforts, and underground development. This includes drilling and technical studies aimed at supporting an economic assessment by Q1 2026. While progress continues at Pizzeria, the company's primary focus remains on bringing Terranera online in Q2 2025. As of December 31st, 2024, overall construction at Terranera reached 89%, with $302 million allocated budget spent. The total estimated project cost is $332 million, as announced by the company earlier this year. During the fourth quarter, 1.7 kilometers of underground mine development was completed for a total project development of 7.2 kilometers.

Dan Dickson: The company has allocated $26 million budget to advance exploration evaluation efforts in underground development.

Dan Dickson: This includes drilling and technical studies aimed at supporting economic assessment by Q1 2026.

Dan Dickson: While progress continues.

Dan Dickson: <unk> primary focus remains on bringing turn your online in Q2 2025.

Dan Dickson: As of December 31, 2020 for overall construction of terror narrow reached 89% with $302 million allocated allocated budget spend the total estimated project cost is $332 million as announced by the company earlier this year.

Dan Dickson: During the fourth quarter 1.7 kilometers of underground mine development was completed for a total project.

Dan Dickson: Development of 7.2 kilometers the underground explosive magazine storage product was also approved improving development efficiencies.

Dan Dickson: The underground explosive magazine storage permit was also approved, improving development efficiency. Most of the upper platform construction was complete, with final punch list items to be addressed before being handed over to the Mission Operations Team. The main area of focus continues to be the lower platform area, which was 42% complete at the end of the fourth quarter. The tailing storage facility's main embankment reached 1,185 meters of elevation and the tailing filter swing plates were installed and the first floor concrete was poured. The structural steel installation advanced to the second floor, preparing to install the filter press again at the end of the fourth quarter.

Dan Dickson: Most of the upper platform construction is complete with final punchless items to be addressed before being handed over Michigan operations team. The main area of focus continues to be the lower platform area, which was 42% complete at the end of the fourth quarter.

Dan Dickson: The tailing storage facilities main embankments reached 1185 meters elevation.

Dan Dickson: Healing filter swing plates installed the first floor concrete was poured the structural steel installation and thats. The second floor preparing to install the filter press again.

Before end of the fourth quarter.

Dan Dickson: The event pond liner was installed and completed in January of this year, and the upper surface water diversion canal was nearly 90% complete. As we approach the wet commissioning phase at Terranera and prepare to bring Endeavour's next operating mine online, key critical path items include the tailing filter presses, which are on track for completion mid-April.

Dan Dickson: The event online or was installing completed in January of this year in the upper surface water diversion canal was nearly 90% complete.

Dan Dickson: As we approached the wet commissioning phase at Turner and prepare to bring in Denver's next operating mine online key critical path items include the tailing filter presses, which are on track.

Dan Dickson: For completion mid April.

Dan Dickson: 2024 marked a pivotal year for Endeavour, and 2025 promised to be a transformative milestone for the company. We extend our sincere gratitude to our shareholders and stakeholders for their steadfast support as we embark on this new era of growth and operational efficiency. As we advance, we remain committed to delivering sustained value, achieving operational excellence, and fostering a sustainable future for all our partners. For more wholesome construction updates at Terranera, I encourage you to visit our website where you'll find our quarterly photo gallery showcasing the latest developments, progress, and information.

Dan Dickson: 'twenty 'twenty four marked a pivotal year for endeavour in 2025 promise to be a transfer transformative milestone for the company.

Dan Dickson: We extend our sincere gratitude to our shareholders and stakeholders for their steadfast support as we embark on this new era of growth and operational efficiency as.

Dan Dickson: As we advance we remain committed to delivering sustained value achieving operational excellence and fostering a sustainable future for all our partners.

Dan Dickson: For more fulsome construction update at Turner I encourage you to visit our website, where you'll find our quarterly photo gallery showcases the latest developments progress and information.

Dan Dickson: With that I'm happy to open this up to questions.

Operator: With that, I'm happy to open this up to questions. Operator, please proceed to our Q&A session. Thank you. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two.

Dan Dickson: Operator, Please proceed to our Q&A session.

Speaker Change: Thank you to join the question queue. You May Press Star then one on your telephone keypad, you'll hear Joan Allergan your request.

Speaker Change: Using a speakerphone please pick up your handset before pressing any key the Jai a question. Please press Star then two.

Speaker Change: The first question comes from Mikhail <unk> with B Riley Securities. Please go ahead.

Nick Giles: The first question comes from Nick Giles with B-Rally Securities, please go ahead. Yeah, thank you very much, Operator. Good morning, everyone. Guys, congrats on all the progress.

Mikhail: Yeah. Thank you very much operator, good morning, everyone guys. Congrats on all the progress.

Dan Dickson: I guess my first question, I wanted to work backwards a little bit and start with Petraria. Can you remind us of CAPEX in 2025? And then how could we see that step up in 2026?

Mikhail: I guess my first question I wanted to work backwards, a little bit and start with Korea can you remind us of Capex in 2025, and then how could we see that step up in 2026, thanks very much.

Dan Dickson: Thanks very much. Yeah, good question, Nick. Thanks. Thanks for the positive comments. Pizzeria, as you likely know, we have a $26.6 million budget there in 2025. Ultimately, most of that budget regards $10 million allocated to drilling and $16 million allocated to various budget items or capital items like mobile equipment and mine development and further evaluation and studies for an economic assessment that we expect to deliver in Q1 of next year.

Speaker Change: Yeah. Good question Nick Thanks, Thanks for the positive comments pizzeria.

Mikhail: We know we have a $26 $6 million budget there.

Mikhail: In 2025, ultimately most of that budgets regards $10 million allocated to drilling and 16 millions allocated to various budget items or capital items like mobile equipment and mine development and further evaluation studies for an economic assessment that.

Mikhail: We expect delivery in Q1 of next year ultimately we're focused on 2025. So we don't have capital expenditure plans for 2026 until we see that the feasibility study completed.

Dan Dickson: Ultimately, we're focused on 2025, so we don't have capital expenditure plan for 2026 until we see that feasibility study completed. touched on and it is what we expect to be our next growth asset and fully expect a positive result from the economic assessment, but we can't really say much until we get there. Fair enough. I appreciate that, Dan.

Mikhail: But as always.

Don: Don and it is what we expect to be our next growth asset.

Don: While we expect a positive result from the economic assessment, but we can't really say much until we get there.

Don: Okay.

Don: Fair enough.

I appreciate that Dan and then maybe just on Terra naira apologies, if I missed it but should we still think about a commercial production in the third quarter and then are there any other puts and takes that you'd highlight just from a cost perspective for the balance of 2025.

Dan Dickson: And then maybe just on Terranera, apologies if I missed it, but, you know, should we still think about commercial production in the third quarter? And then, you know, are there any other puts and takes that you'd highlight just from a cost perspective for the balance of 2025? Yeah, we haven't come off our $332 million budget. Things have been tracking extremely well since our news release January 8, identifying timeline of early Q2. We are on track for that with expected to go to wet commission at the end of April.

Don: Yeah, we haven't come off our $332 million budget things have been tracking extremely well since our news release January eight identify and timeline of early Q2, we are on track for that with the expected to go to wet commissioning at the end of April so.

Don: Is is tracking well ramp up as expected in Q2, and ultimately commercial production for Q3.

Dan Dickson: So everything is tracking well, ramp ups expected in Q2 and ultimately commercial production for Q3.

Don: Okay.

Don: Yeah.

Dan Dickson: Dan, good to hear.

Don: Tim good to hear.

Nick Giles: I'll turn it over for now, but keep up the good work. Thanks, Nick.

Speaker Change: I'll turn it over for now, but keep up the good work.

Nick: Thanks, Nick.

Speaker Change: The next question comes from Wayne Lam with TD Securities. Please go ahead.

Rayne Lamb: The next question comes from Rayne Lamb with TD Securities. Please go ahead. Thanks guys.

Nick: Sure.

Speaker Change: Okay. Thanks, guys.

Dan Dickson: I'm just wondering if you could talk a bit about the cost pressures you're seeing in I'm just wondering how much exposure you have to the peso in general and how much of those pressures might be offset by the weakness. Yeah, that's a very good question. Obviously, there's a lot of concern around the world right now, especially in North America with what seems to be a tariff war that's been kicking off. We've taken a lot of questions with regards to the cost pressures that will put on our operations in Mexico. And then ultimately, what that means from a currency standpoint and probably expectations that you'll see more devaluation in the Canadian dollar and the tied to labor.

Speaker Change: Just wondering if you could talk a bit about the cost pressures that you're seeing in Mexico. Just wondering how much exposure you have to the peso in general and how much of those pressures might be offset by.

Speaker Change: The weakness seen in local currency.

Speaker Change: Yeah. That's a very good question, obviously, there's a lot of concern around the world right now.

Speaker Change: Actually in North America with.

Speaker Change: What seems to be a tariff war kicking off and we've taken a lot of questions with regards to the cost pressures that we put on our operations in Mexico, and then ultimately what that means from a currency standpoint, and probably expectation that youll see more devaluation in the Canadian dollar and the Mexican peso.

Speaker Change: In Mexican peso standpoint about 33% of our costs are tied to labor and that's been generally to keith's guanosine bond yields for the last 15 years, and we expect that similar ratio apps.

Dan Dickson: And that's been generally the case at Guanaci and Bolivia for the last 15 years. And we expect that similar ratio at Terranera. From the remaining cost, the 67%, historically, it's been about 50-50 between US dollars and pesos, and that moves back and forth. So roughly about 50 to 60% of our costs are tied to the Mexican peso. And if we see further devaluation of the peso, obviously, that benefits Endeavour from a cost standpoint. From a supply chain standpoint, we still don't know if there'd be reciprocal tariffs put in place and what that impact has on cost.

Speaker Change: From.

Speaker Change: From the remaining cost of 67% historically, it's been about 50 50 between U S dollars and pesos that moves back and forth. So roughly about 50% to 60% of our costs are tied to the Mexican peso and if we see further devaluation of the peso obviously that Vince.

Speaker Change: Endeavor from a cost standpoint.

Speaker Change: From a supply chain standpoint, we still don't know if there'd be reciprocal tariffs put in place and what that impact has on call.

Dan Dickson: We don't think it will have a significant impact because after labor, power costs, which are obviously incurred in country, is our second and our third highest cost is actually which we source out of Mexico as well. So again, it's all dynamic and things will change. But ultimately, we've seen overall cost pressures decrease primarily because of the devaluation of the Mexican peso over the last six months of 2024. And if that continues, I think that's a benefit for us on a cost per tonne basis.

Speaker Change: I don't think it will have a significant impact because after labor power costs, which are obviously incurred in country.

Speaker Change: <unk> is our second and our third highest cost is actually cyanide, which we source out of Mexico as well.

So again, it's all dynamic and things will change, but ultimately we've seen overall cost pressures decreased primarily because of the devaluation of the Mexican peso over the last six months of 2024, and if that continues I think that's a benefit for us on a cost per ton basis.

Speaker Change: Okay perfect. Thanks for the detail.

Rayne Lamb: Okay, perfect. Thanks for the detail.

Dan Dickson: And then maybe at Terranera, how have things progressed with the construction of the e-houses? And then with the tailings construction, are the filter presses the remaining ball neck here? And once that's complete in mid-April, you guys roll right into commissioning? Yeah, our e-houses are in place.

Speaker Change: And then maybe at current era, how things progressed with the construction of the E houses.

Speaker Change: With the tailings construction or the filter presses the remaining Paul that Karen once that's completed in mid April you guys roll rate to commissioning.

Speaker Change: Yeah R. E houses that are in place I don't think theres much more to add to that as you're probably aware Wayne LNG vaporization plant that we will be building and that will go into.

Dan Dickson: I don't think there's much more to add to that. As you're probably aware, Wayne, that we have an LNG vaporization plant that we will be building, and that will go into ultimately Q3. But again, we're on diesel gen sets as we start up and until the LNG vaporization plant's complete. You're correct in to say it's the filter presses that is the bottleneck. That's a critical path item. Our concentrate filters are coming to completion here in March. And ultimately, the filter presses, the steel structures have been in place. So it's really going to come down to electrical and piping, and then ultimately turning on both filter presses and start putting ore through from crusher all the way onto that tailings dam.

Speaker Change: Ultimately in Q3, but again, we're on diesel Gen sets as we start up and until the LNG vaporization plans complete.

Speaker Change: Correct and to say, it's the filter presses that is the bottleneck. That's the critical path item, our concentrate filters are coming to completion.

Speaker Change: Here in March and ultimately that filter presses the structured steel structures in place. So it's really going to come down to electrical and piping and then ultimately turning on both filter presses and start putting on.

Speaker Change: Or through from Crusher, all the way on to the tailings down so just as a reminder for those.

Dan Dickson: So just as a reminder for those, at December 31st, our upper platform was relatively complete, and we were doing a lot of dry commissioning and pre-commissioning. And it was the lower platform that ultimately was the delay and pushed us into effectively Q2 2025. Again, from January till today, March 10th, things have progressed right on plan. And the filter presses, which was the critical path then, still remains the critical path now. And those seem to be going in relatively smoothly. So hopefully in April, we can turn everything on and start putting ore, like I say, onto the tailings dam.

Speaker Change: At December 31st our upper platform was relatively complete we're doing a lot of dry commissioning and pre commissioning of lower platform. That's ultimately was the delay and pushed us into effectively Q2 2025 again from January till today March 10 things are progressing right on plan.

Speaker Change: Filter presses, which was the critical path and still remains the critical path now and those seem to be going in relatively smoothly. So hopefully in April we can turn everything on and start putting or like I say onto the tailings dam.

Speaker Change: Okay.

Speaker Change: Okay Perfect and then maybe just last one for me at quantity can you give us an idea of the difference in the royalty structure from the ore mined from the.

Rayne Lamb: Okay, perfect.

Rayne Lamb: And then maybe just last one for me at quanta.

Dan Dickson: Can you give us an idea of the difference in the royalty structure from the ore mine from the El Curso concessions and what percentage of feed to the mill is that expected? Yeah, that's a very good question. El Curso, for those that aren't familiar with Wayne's question, is ultimately lease land that we signed in October 2019 with Monera Frisco, which is a company owned by Carlos Slim. We pay a sliding scale royalty there. When silver was below $15, we paid 4% NSR, and it's scaled all the way up to over $25, which is obviously where we sit now, and we pay a 16% NSR, so it's a very significant royalty.

Speaker Change: Al Carso concessions.

What percentage of feed to the mill is that expected to be this year.

Speaker Change: Yeah.

Speaker Change: Very good question first so for those that are familiar with Wayne's question is ultimately leased land that we signed in October 2019, with Minera Frisco, which is a company owned by Carlos Slim, we pay a sliding scale royalty there when silver was below $15, we paid 4% N a S R.

Speaker Change: Yeah, and it's scaled all the way up to over $25, which is obviously or we sit now we pay a 16% MSR. So it's a very significant royalties north of $55 per ton.

Dan Dickson: It's north of $55 per ton, north of $5 per ounce of silver. and about 80% of our productions coming from El Curso. We still have our Malache area that we do source some ore from and then we always obviously have that purchase store. So it's a significant part of our cost structure and like I say, El Curso is over 80% of our actual production wind.

Speaker Change: North of $5 per ounce of silver.

Speaker Change: And about 80% of our productions coming from El Caruso.

Speaker Change: We still have our <unk> area that we do source some or permanent we always say, obviously, how about purchase store. So it's a significant part of our cost structure and like I say out parcels over 80% of our actual production rate.

Speaker Change: Yes.

Rayne Lamb: Okay, perfect.

Speaker Change: Okay perfect. Thanks for taking my questions and nice to see the share price performance today.

Rayne Lamb: Thanks for taking my questions and nice to see the share price performance. Yeah, thanks a lot for the questions, Wayne. Once again, if you have a question, please press star then 1.

Speaker Change: Yeah, Thanks, a lot for the questions.

Speaker Change: Once again, if you have a question. Please press Star then one our next question comes from Michael David.

Heiko Ihle: The next question comes from Eiko Ihle with AT Wainwright. Please go ahead. Hey Dan, hey team, thanks for taking my questions and congratulations on all the progress on Terranera. Thanks, Heiko.

Speaker Change: Please go ahead.

Michael David: Hey, Dan Hey team, Thanks for taking my questions and congratulations on all the progress Alterra on there.

Speaker Change: Thanks Heiko.

Dan Dickson: I'm going to do my follow-up first because it actually goes well with the last question that was asked here. Your progress at Terranera obviously was 89.4% as of December 31st. Is there anything that hasn't been physically received at the site? I mean, you discussed the filter press earlier, but that's presumably a component that's made specifically for you. I mean, I guess besides you, anything stuck with customs, anything stuck in the wrong village? You mentioned electrical and piping still needed, but I guess that's probably mostly just off-the-shelf stuff that's sitting in big boxes and just waiting, right?

Speaker Change: I'm going to do my follow up first because it actually goes well with the last question that was asked here your progress at Cerro <expletive>, Obviously was 89, 4% as of December 31st.

Speaker Change: Is there anything that hasnt been physically received at the site to be you discussed a filter press earlier, but that's presumably a component that's made specifically for you.

Speaker Change: So say if you have anything stuck with customs anything stuck in the wrong village.

Speaker Change: You mentioned electrical and piping still need it but I guess, that's probably mostly just off the shelf stuff that's sitting in big boxes, just waiting right.

Dan Dickson: Yeah, no, it's a very fair question. And as of January 8th, when we put out the news release with regards to our timing, and if you recall, there was a steel beam that wasn't on site that we just determined in December. And that got delivered early January, we went through that process of what else could be missing. At this point in time, we think everything's either on site or in our laydown yard. And that's, to be honest, what we thought back in December. So we've gone through did a double check on that. And as you say, the piping and electrical work, that's kind of off the shelf stuff and progressing.

Speaker Change: Yeah, No. It's a very fair question and as of January <unk> news release with regards to our timing. If you recall there is a still being that wasn't on site.

Speaker Change: Determined in December and that got delivered early January we went through that process and what else could be missing at.

At this point in time, we think everything's, either onsite or lay down yard and nuts.

Speaker Change: The honest what we thought back in December so we've gone through did a double check on that.

Speaker Change: As you say the piping electrical work.

Speaker Change: That's kind of off the shelf stuff and progressing so everything's there that we need to get done for the filter press and again targeting April for that to be.

Dan Dickson: So everything's there that we need to get done for that filter press. And again, targeting April for that to be turned on so we can start wet commissioning. Got it.

Speaker Change: Turned on so we can start wet commissioning.

Speaker Change: Got it.

Heiko Ihle: Um, I went through your release this morning and cash costs was all over the place. So, it's like all over the place. So I control F4. It was listed 21 times in the release. at the Gold Credits, and your figure used 2647 gold, we're at 2900 right now, but just maybe walk us through cash costs as Terranera comes online here in the very near future, and by quarter, maybe for the remainder of the year, as you see pricing from that site impact your company cash costs. I guess what I'm saying is, walk me through how we should model the ramp up without specifically making you say that.

I went through your release this morning, and cash costs was all over to price. So it's like all over the place.

Speaker Change: I control F. Four it was list of 21 times in the release.

Speaker Change: We see costs work quite good given the gold credits and your figure used $26 47 gold worth plenty 900 right now.

Speaker Change: Just maybe walk us through cash costs S. Here on the Euro comes online here in the very near future and by quarter. It maybe for the remainder of the year as you see pricing from that side impact your company cash costs I guess, what I'm, saying is walk me through how.

Speaker Change: We should model the ramp up without specifically, making you setup.

Speaker Change: Yeah, well, let me answer the first part of your second part of your question win companywide and we put out guidance in January on all in sustaining costs and cash costs.

Dan Dickson: Well, let me answer the first part or second part of your question when it's company-wide. We put out guidance in January on all-in sustaining costs and cash costs. We did use a $2,200 gold price in our assumptions. Obviously, if you take what we're at now, or even $2,800, $600 difference there times our 30,000oz of gold, that amounts to about $18M of credit. And if we produce 7Moz, you're looking at almost $2.50 to $3 less compared to our stated guidance. Now, we like to be conservative in our guidance, and maybe the $2,200 was overly conservative, but again, we started doing all that back in October and November of last year.

Speaker Change: We did use in 'twenty 200 dollar gold price in our assumptions obviously.

Speaker Change: If you take what we're at now or even 2800 $600 difference. There times are 30, 30000 ounces of gold that amounts to about $18 million of credit.

Speaker Change: And we produced 7 million ounces.

Speaker Change: Youre looking at almost $3 or two and a half to $3 less.

Speaker Change: Compared to our stated guidance now we'd like to be conservative in our guidance and maybe the 'twenty 200 was overly conservative but again, we started doing all of that back in October and November of last year.

Dan Dickson: So, I think Guanasmi and Bolaños can outperform, and the other side of that, Eiko, is the Mexican pesos. We, again, use an assumption of 18 to 1. We've been sitting north of 20 to 1, and it seems to be the peso will continue to devalue from there. So, for existing operations, we've been there 19 years, 18 years, respectively. I think we have a really good handle on that. In our guidance, we were quite conservative, so it'll allow us to probably perform better than that, and that's just math and pretty straightforward.

Speaker Change: So I think <unk>.

Speaker Change: Outperform the other side of that HEICO as the Mexican pesos, we again using the assumptions 18 to one we've been sitting north of 22 to one and seems to be the best we will continue to you from there so for existing operations. We've been there 819 years 18 years, respectively. I think we have a really good handle on that.

Speaker Change: In our in our guidance, we were quite conservative so allow us to probably perform better than that and that's just math and pretty straightforward with regards the ramp up of <unk>, we're trying to be tortious with that and as we come into ramp up we were going to put out more detail around a production totals for the year for.

Dan Dickson: With regards to the ramp-up of Terranera, we're trying to be cautious with that, and as we come into ramp-up, we were going to put out more detail around, A, production totals for the year, for 2025, because it really depends on when we actually hit commercial production, whether that's July or August, and then with that, that drives that cash cost and our cost per ton, how fast we can ramp up. So, we're holding that back until the end of Q2, would be the expectations that we put that out in the marketplace. So, I appreciate that you're asking the question of where we're going to be at right now, and I would still point to the feasibility study that showed that we had basically all the gold paced for the silver at Terranera.

Speaker Change: <unk> 2025.

Speaker Change: Because it really depends on when we actually hit commercial production, whether that's July or August and then with that that drives that cash costs in our cost per ton how fast we can ramp up so we're holding that back until the end of Q2 would be the expectations that we put that out in the marketplace. So I appreciate that you're asking the question of where we're going to be.

Speaker Change: Yeah.

Speaker Change: Right now and I would still point to the feasibility study that showed that we had basically all the gould pace for the silver at <unk>, our cost per ton will be obviously, a little bit higher in the first year as we work through things, but as we get to our 10 year mine life, we expect.

Heiko Ihle: Our cost per ton will be obviously a little bit higher in the first year as we work through As we get to our 10-year mine life, we expect costs to line up, but it's going to be one of the lowest operating mines in our space. lowest cost operating minds in our space. Cool. Very helpful, very comprehensive answer. Again, congratulations, and I'll get back in queue. Thanks. Thanks Heiko.

Speaker Change: Cost to line up, but it's going to be one of the lowest operating mines in our space.

Speaker Change: Post cost operating mines in our space.

Speaker Change: Very helpful very comprehensive answer again, congratulations and I'll get back in queue.

Speaker Change: Thanks, Kurt Thanks Heiko.

Craig Stanley: The next question comes from Craig Stanley with Raymond James. Please go ahead. Thank you, and thanks for taking my call here. Peteria, you're coming out with an economic assessment. What form will that take, like a PEA or PFS? And will the results be announced soon? Yeah, Craig, thanks for the question. We are trying to track towards a feasibility study. We just haven't come across that. There's a lot of information from the SSR days when they held it. As you probably know, the feasibility study they put out was on an open pit operation in 2012. We're looking at it from an underground standpoint, and in 2009, they put out a pre-feasibility study.

Speaker Change: The next question comes from Craig Stanley with Raymond James. Please go ahead.

Craig Stanley: Thank you.

Speaker Change: For taking my call here.

Speaker Change: With an economic assessment of what form will that take like a pea or PFS and will the results be announced in the market.

Speaker Change: Yeah, Greg Thanks for the question.

Speaker Change: We are trying to track towards a feasibility study we just haven't come across that there's a lot of information from the <unk> when they called it.

Speaker Change: Probably know that feasibly say they put out wasn't on an open pit operation in 2012.

Speaker Change: We're looking at it from an underground standpoint, and then 2009, they put out a pre feasibility study we're going through that assessment.

Dan Dickson: We're going through that assessment with some of the technical studies that we're doing right now, and then later in the year, we'll be able to really identify whether we have enough information to go right to a feasibility study, but it is kind of our expectation at this time. Awesome. Thank you. Thanks for the question, Craig.

Speaker Change: The technical studies that we're doing right now.

Speaker Change: Then later in the year, we'll be able to really identify whether we have enough information to go right to a feasibility study, but it is kind of our expectation at this time.

Awesome. Thank you.

Thanks for the question Craig.

Okay.

Operator: This concludes the question and answer session.

Speaker Change: This concludes the question and answer session I would like to turn the call back over to Dan Dickson for any closing remarks. Please go ahead.

Dan Dickson: I would like to turn the call back over to Dan Dickson for any closing remarks. Please go ahead. Thank you, operator. And thanks to all our investors that called in today. And 2024 was a very positive year for Endeavour. And ultimately, I think we've set up very well for 2025 to get Terranera into production and ultimately take advantage of what we see is coming down the line with the silver price. So have a good day.

Dan Dickson: Thank you operator, and thanks to all our investors that Colin.

Speaker Change: 24 was a very positive year for endeavour.

Speaker Change: I think we've set up very well for 2025 to get the iron ore production and ultimately take advantage of what we see is coming down the line with silver price.

Speaker Change: Have a good day.

Operator: This brings to an end today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. © BF-WATCH TV 2021 © BF-WATCH TV 2021

Speaker Change: Today's conference call you may disconnect. Your line. Thank you.

Speaker Change: Participating and have a pleasant goal.

Speaker Change: Okay.

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