Q1 2026 Endeavour Silver Corp Earnings Call

May 7, 2026

Speaker #1: Welcome to Chorus Call. Please hold for the Endeavour Silver conference. A conference specialist will be with you shortly.

Speaker #2: Chorus Call, can I have your name, please? Chorus Call, can I have your name, please?

Speaker #3: Here. These achievements reflect our unwavering focus on operational excellence and our ongoing dedication to delivering long-term value for our shareholders, I'd like to thank everyone for their continued support and engagement.

Operator: These achievements reflect our unwavering focus on operational excellence and our ongoing dedication to delivering long-term value for our shareholders. I'd like to thank everyone for their continued support and engagement. With that, I'm happy to open up to questions. Operator, let's proceed to the Q&A session.

Dan Dickson: These achievements reflect our unwavering focus on operational excellence and our ongoing dedication to delivering long-term value for our shareholders. I'd like to thank everyone for their continued support and engagement. With that, I'm happy to open up to questions. Operator, let's proceed to the Q&A session.

Speaker #3: And with that, I'm happy to open up to questions, operator. Let's proceed to the Q&A session.

Speaker #4: Thank you.

Operator: Thank you. The first question comes from Heiko Ihle with H.C. Wainwright & Co. Please go ahead.

Speaker #5: To join the question queue, you may press star, then 1, 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.

Speaker #5: To withdraw your question, please press star, then 2. The first question comes from Haiko Ile with HC Wainwright. Please go ahead.

Speaker #6: Hi team, this is Case Bonjourne filling in for Haiko. He's on a flight right now. Thank you for taking our call.

Kevin Fynn: Hi, team. This is Kevin Fynn filling in for Heiko Ihle. He's on a flight right now. Thank you for taking our call.

[Analyst] (H.C. Wainwright): Hi, team. This is [inaudible] filling in for Heiko Ihle. He's on a flight right now. Thank you for taking our call.

Speaker #7: Happy to take your call. Thank you.

Dan Dickson: Happy to take your call. Thank you.

Speaker #6: Absolutely. First question: the great step-up at Terra Nera—next week will be halfway through the second quarter. Any views of what you've seen with grades at site during this period so far?

Kevin Fynn: Absolutely. First question. The grade step up at Terronera, next week will be halfway through Q2. Any views of what you've seen with grades at site during this period so far?

[Analyst] (H.C. Wainwright): Absolutely. First question. The grade step up at Terronera, next week will be halfway through Q2. Any views of what you've seen with grades at site during this period so far?

Speaker #7: Yeah, we have a Q1 and Q2 grades a little bit similar. Q2 we expect to be slightly higher than at Q1. Ultimately, the real step up in grades is the back half of Q3 and into Q4.

Dan Dickson: Yeah. We have Q1 and Q2 grades a little bit similar. Q2 we expect to be slightly higher than at Q1. Ultimately, the real step up in grades is the H2 Q3 and into Q4.

Dan Dickson: Yeah. We have Q1 and Q2 grades a little bit similar. Q2 we expect to be slightly higher than at Q1. Ultimately, the real step up in grades is the [inaudible] Q3 and into Q4.

Speaker #6: Okay, great. Thank you. A-and a second question, maybe a bit of a philosophical one. the Terra Nera approach is nameplate capacity. could you maybe talk about what you saw and learned during the ramp-up phase that maybe will be useful as you move other assets into production?

Kevin Fynn: Okay. Great. Thank you. Then a second question, maybe a bit of a philosophical one. As Terronera approaches nameplate capacity, could you maybe talk about what you saw and learned during the ramp-up phase that maybe will be useful as you move other assets into production? I guess as a sweetener to that, anything you expect to add to the Pitarrilla feasibility study that you may not have expected a year ago?

[Analyst] (H.C. Wainwright): Okay. Great. Thank you. Then a second question, maybe a bit of a philosophical one. As Terronera approaches nameplate capacity, could you maybe talk about what you saw and learned during the ramp-up phase that maybe will be useful as you move other assets into production? I guess as a sweetener to that, anything you expect to add to the Pitarrilla feasibility study that you may not have expected a year ago?

Speaker #6: And I guess, as a sweetener to that, is there anything you expect to add to the Piterella feasibility study that you may not have expected a year ago?

Speaker #7: Yeah, I mean, how much time do you have of things that we learned during the Terra Nera build-out phase? I mean, I think as an organization, it's our first build from scratch.

Dan Dickson: Yeah. I mean, how much time do you have of things that we learned during the Terronera build-out phase? I mean, I think as an organization, it's our first build from scratch, and there's a lot of learning, and I think we can apply a lot of that. In fact, in Q4 into Q1, we did a postmortem or post-review of construction of things that we can improve, so we can take that over to Pitarrilla. Obviously, continuity is a very important part. This year Don Gray retired, and we replaced Don with Luis Castro, who's been with the company for 21 years. There are a lot of people that remain in the company that were involved with the construction at Terronera.

Speaker #7: And there’s a lot of learning, and I think we can apply a lot of that. In fact, in Q4 into Q1, we did a post-mortem, or post-review, of construction—of things that we can improve.

Speaker #7: So, we can take that over to PIT3. Obviously, continuity is a very important part, and this year Don Gray retired, and we replaced Don with Luis Castro, who's been with the company for 21 years.

Speaker #7: But there are a lot of people that remain in the company who were involved with the construction at Terra Nera. If we can move PIT3 along in accordance with what we think is our timeline—sometime in 2027, starting that construction—we can benefit from it.

Dan Dickson: If we can move Pitarrilla along in accordance with our, what we think is our timeline, sometime in 2027 starting that construction, we can benefit from it. From processes and protocols and procedures that would be put in place at Terronera, I think those will be stronger going forward. It's just a lot better position as a company to take on a second build, so to speak. We're, we're well-positioned. The biggest part of that is really understanding all the permits and permits that are required. I mean, as we went through, we originally got our MIA at Terronera about 2015, 2016. Pitarrilla already has its MIA. There are some other permits that are required around that MIA, specifically around the tailing storage facility, and we're going through that process to try to obtain that by Q1 of next year.

Speaker #7: from processes and protocols and procedures that would be put in place at Terra Nera, I think those will be stronger going forward. And it just a lot better position as a company to take on a, a second build, so to speak, and so we're, we're well positioned the biggest part of that is really understanding all the permits and permits that are required.

Speaker #7: I mean, as we went through, we originally got our MIA at Terra Nera about 2015, 2016. PIT3 already has its MIA. There are some other permits that are required around that MIA, specifically around the tailing storage facility.

Speaker #7: And we're going through that process to try to obtain that by Q1 of next year. But behind all that, there's about 100 other, 30-some-odd permits that you learn to go through, and how to navigate that through the government.

Dan Dickson: Behind all that, there's about 130 some odd permits that you learn to go through and how to navigate that through the government. I think we have the ability to do that a lot quicker than what we did at Terronera. We're excited about what we gained from a knowledge standpoint at Terronera, and we think we can apply it at Pitarrilla. Then for your second part of that question, at this point, there's nothing new that's surprising at Pitarrilla. There's a lot of work that was done. SSR had invested $145 million. They'd done a pre-feasibility study on underground operation in 2009. They did a lot of work on an open pit operation in their feasibility study that was 2012.

Speaker #7: And I think we have the ability to do that a lot quicker than what we did at Terra Nera. So we're excited about what we gained from a knowledge standpoint at PIT at Terra Nera, and we think we can apply it at PIT3.

Speaker #7: And then for your second part of that question, at this point, there's nothing new that's surprising at PIT3. there's a lot of work that was done SSR had invested $145 million.

Speaker #7: They'd done a pre-feasibility study of underground operation in '09. they did a lot of work on an open pit operation, and their feasibility study that was 2012.

Speaker #7: I mean, we've been looking at this now for three years, and, and so there hasn't been anything I'd say in the last six months to eight months of jumped out that's been surprising to us.

Dan Dickson: I mean, we've been looking at this now for 3 years, there hasn't been anything I'd say in the last 6 months to 8 months have jumped out that's been surprising to us. We have a good indication of what the plant's gonna look like and what the capacity of the mine is, and that'll come out in due course when we put out, effectively the feasibility study or 43-101 feasibility study later this year.

Dan Dickson: I mean, we've been looking at this now for three years, there hasn't been anything I'd say in the last 6 months to 8 months have jumped out that's been surprising to us. We have a good indication of what the plant's gonna look like and what the capacity of the mine is, and that'll come out in due course when we put out, effectively the feasibility study or 43-101 feasibility study later this year.

Speaker #7: We have a good indication of what the plant's gonna look like and what the capacity of the mine is, and that'll come out in due course when we put out, effectively the feasibility study or 43101 feasibility study later this year.

Speaker #6: Thank you so much. I'll hop back into queue.

Kevin Fynn: Thank you so much. I'll hop back in the queue.

[Analyst] (H.C. Wainwright): Thank you so much. I'll hop back in the queue.

Speaker #3: Thank you for your questions.

Dan Dickson: Thank you for your questions.

Speaker #4: Once again, if you have a question, please press star, then 1. The next question comes from John Tomazos with John Tomazos, very independent research.

Operator: The next question comes from John Tumazos with John Tumazos Very Independent Research. Please go ahead.

Speaker #4: Please go ahead.

Speaker #6: Congratulations on all the increased production and raining cash and all those good things. Some other companies in Mexico have had bumps in the road.

John Tumazos: Congratulations on all the increased production and raining cash and all the good things.

Dan Dickson: Thanks, John.

John Tumazos: Some other companies in Mexico have had bumps in the road. One company had their plane shot down a month ago. Another company had a very tragic incident in January. You've got at least four locations where you're operating. Is there any particular secret to your operational success and good security results?

Speaker #6: one company had their plane shot down a month ago. Another company had a very tragic incident in January. You've got at least four locations where you're operating.

Speaker #6: is there any particular secret to your operational success and good security results, I get confused by some parts of Mexico are so much better than others.

Dan Dickson: No, yeah.

John Tumazos: why some parts of Mexico are so much better than others.

Speaker #7: Yeah, but I think that's the specifics to it all is there are parts of Mexico that are more secure than others. And I mean, it's thought to say that we haven't had our issues, in February.

Dan Dickson: Yeah, I think that's the specifics to it all is there are parts of Mexico that are more secure than others. I mean, it's not to say that we haven't had our issues. In February, there was a code red in the state of Jalisco when one of the captains of the cartel was killed. On the Sunday following, they put blockades into 22 different states in Puerto Vallarta or the state of Jalisco, and around Puerto Vallarta was significantly impacted with blockades of the highways. Now, I don't think there was a lot of. There were some unfortunate incidents with citizens, but generally, citizens weren't targeted. It was just a target to the government to show power, I guess, of that cartel.

Speaker #7: There was a code red in, in the state of Jalisco when one of the captains of the cartel was, killed. and that on the Sunday following, they put a blockade into 22 different states.

Speaker #7: And part of our—or the state of Jalisco and around Puerto Vallarta—was significantly impacted with blockades of the highways. Now, I don't think there was a lot of—there were some unfortunate incidents with citizens, but generally, citizens weren't targeted.

Speaker #7: It was just the target to the government to show power, I guess, of that cartel. And for us, it impacted our supply chains, and we shut down operations for three days to make sure that if we had any safety incidents, we could get to a hospital.

Dan Dickson: For us, it impacted our supply chains and we shut down operations for 3 days to make sure that if we had any safety incidents, we could get to a hospital. Like I say, it's not to say that we've not been impacted, but I'd say generally our areas that we operate haven't had significant violence. We've got a team in place, a security team in place that provides us intelligence, and we make various decisions based on what's happening in Mexico and what's happening in various states. Again, we've been in Guanacevi for 20 years and very low impact to all that. We actually sold our Bolanitos operation in January, so we're no longer in Guanajuato.

Speaker #7: So so like I say, it's not to say that we have not been impacted, but I'd say generally, our areas that we operate haven't had significant violence.

Speaker #7: But we've got a team in place, a security team in place that provides us intelligence, and we make various decisions based on what's happening in Mexico and what's happened in various states.

Speaker #7: So again, we've been at Guanaceví for 20 years and very low impact to all that. And we actually sold our Bolanitos operation in January, so we're no longer in Guanajuato.

Speaker #7: And then in Jalisco, like I say, we're an hour and a half from Puerto Vallarta, which is considered a very safe area, other than that two-day event.

Dan Dickson: In Jalisco, like I say, we're an hour and a half from Puerto Vallarta, which is considered a very safe area other than that 2-day event. There's about 3 million Americans and Canadians that visit that area on an annualized basis, and we're very happy to operate there. We keep our eyes open and ears to the ground and try and understand what's all happening.

Speaker #7: And there are about 3 million Americans and Canadians that visit that area on an annualized basis. We're very happy to operate there, but we keep our eyes open and ears to the ground, and try to understand what's all happening.

Speaker #6: Are there any variations in cost between your locations due to logistical costs where you maybe avoid a bad neighborhood or anything like that?

John Tumazos: Are there any variations in cost between your locations due to logistical costs where you maybe avoid a bad neighborhood or anything like that?

Speaker #7: Nothing that, yeah, nothing that would be significant. I can recall back in '08 or '09, we made sure we didn't drive by a certain town, which added about 35–45 minutes of driving time up to Guanasabi.

Dan Dickson: Nothing that would be significant. I can recall back in 2008 or 2009, we made sure we didn't drive by a certain town, which added about 35, 45 minutes of driving time up to Guanacevi, which was about 4 hours away. Ultimately, the costs associated with our security between Terronera and between Guanacevi, and ultimately also now at Kolpa, are very similar. I mean, a lot of the same procedures and protocols are in place. From a significant standpoint, I would say no.

Speaker #7: Which was about four hours away. But ultimately, the cost of associated with our security between Puerto Vallarta or between Terra Nera and between Guanasabi and ultimately also now at Copa, are very similar.

Speaker #7: I mean, a lot of the same procedures and protocols are in place, so from a significant standpoint, I would say no.

Speaker #6: Thank you. And I apologize for even asking these questions, but.

John Tumazos: Thank you. I apologize for even asking these questions, but.

Speaker #7: No, those are fair questions.

Dan Dickson: No, those are fair questions.

John Tumazos: they're on investors' minds.

Speaker #6: There are other things investors' minds.

Speaker #7: Yeah. No, that's a very fair question. We get them often in our, our meetings with investors. So happy to answer them.

Dan Dickson: Yeah. No, that's a very fair question. We get them often in our meetings with investors, so, happy to answer them.

Speaker #6: Thank you.

John Tumazos: Thank you.

Speaker #4: The next question comes from Sandaria Ayer with B. Riley. Please go ahead.

Operator: The next question comes from Sandhya Iyer with B. Riley. Please go ahead.

Speaker #8: Hi, team. Congratulations on the quarter. I was on another call, so I don't know if this question has been answered, but on Guanaceví, I mean, the grades have come pretty low, year over year.

Sandhya Iyer: Hi, team. Congratulations on the quarter. I was on another call, so I don't know if this question has been answered. On Guanacevi, I mean, the grades have come pretty low year over year. And like third-party material purchases have also increased, like it's almost one-third. At what point does this ore economics change, you know, and start to dilute margins that we stop purchasing third-party ore or we continue doing that?

Soundarya Iyer: Hi, team. Congratulations on the quarter. I was on another call, so I don't know if this question has been answered. On Guanacevi, I mean, the grades have come pretty low year over year. And like third-party material purchases have also increased, like it's almost one-third. At what point does this ore economics change, you know, and start to dilute margins that we stop purchasing third-party ore or we continue doing that?

Speaker #8: So and like third-party material purchase have also increased. Like, it's almost one-third. at what point does this ore economics change? You know, and start to dilute margins that we stop purchasing third-party ore, or we continue doing that?

Speaker #7: Yeah. I mean, with the higher prices, obviously, it allows us to go after lower-grade material, and the great thing is, we've mined Guanaceví now for 20 years, and there's areas of the old parts of the mines—North Porvenir and what we call Santa Cruz, South, and Central Porvenir—that would have material left behind that would have been running 200, 225, maybe even 250 gram silver equivalent material that you can go back and mine.

Dan Dickson: I mean, with the higher prices, obviously allows us to go after lower grade material. I mean, the great thing is we mined Guanacevi now for 20 years, and there's areas of the old parts of the mines, North Porvenir, Santa Cruz South, and Central Porvenir, that would have material left behind that would have been running 200, 225, maybe even 250 gram silver equivalent material that you can go back in and mine. As prices go up, your cutoff grades come down. Some of the grades that we're pulling right now are we had 275 grams, more from the depth of El Corso, which is on the Frisco ground. We pay a significant royalty there too.

Speaker #7: And as prices go up, your cut-off grades come down. Some of the grades that we're pulling right now, where we had 275 grams, is more from the depth.

Speaker #7: depth of El Curso, which is on, the Frisco ground, and we pay a significant royalty there too. As we move through the year, we're gonna be going into an area called Malache, which is 100% controlled by us.

Dan Dickson: As we move through the year, we're gonna be going into an area called Milache, which is 100% controlled by us. We've got an area near Porvenir Dos, which we mined up at 2015. We've been working in there. Some of that's on Frisco's ground, some of it's on ours. Obviously, as a management team, we continually look at grades and cutoff grades and ultimately margins. As provided that Guanacevi is gonna still continue to be profitable, and as I say, we did north of $20 million of free cash flow there this quarter, we're gonna continue to operate it. Right now, we don't have a huge reserve base. We know we can get into 2027 and maybe into 2028, probably extend that. We're going through that work. We started some drilling in various areas.

Speaker #7: we've got an area near P Provenir Dulce, which we mined up at 2015. We've been working in there. Some of that's on Frisco's ground.

Speaker #7: Some of it's on ours. Obviously, as a management team, we continually look at grades and cutoff grades and ultimately margins. And it's provided that Guanaceví is gonna still continue to be profitable.

Speaker #7: And as I say, we did north of $20 million of free cash flow there this quarter we're gonna continue to operate it. So right now, we don't have a huge reserve base.

Speaker #7: We know we can get into 2020, 7, and maybe into 28—probably extend that. We're going through that work. We've started some drilling in various areas.

Speaker #7: We start to go back into other areas and build out our resources. And we'll, we'll have a plan in place for the end of the year of how much longer we'll be at Guanasabi.

Dan Dickson: We started to go back into other areas and build out our resources, and we'll have a plan in place for the end of the year of how long, much longer we'll be at Guanacevi. I suspect we can get there for quite a while, especially at these prices.

Speaker #7: And I suspect we can get there for quite a while, especially at these prices.

Speaker #8: Got it. That's very clear. And then just one more on Piteria FS. So is it still on—I mean, is it still targeted for Q3 2026?

Sandhya Iyer: Got it. That's very clear. Just one more on Pitarrilla FS. I mean, is it still targeted for Q3 2026? I mean, given that the spend, $1.8 million spend in Q1 was pretty low.

Soundarya Iyer: Got it. That's very clear. Just one more on Pitarrilla FS. I mean, is it still targeted for Q3 2026? I mean, given that the spend, $1.8 million spend in Q1 was pretty low.

Speaker #8: I mean, given that the spend 1.8 million spent in one Q was pretty low, so.

Speaker #7: Yeah.

Dan Dickson: Yeah

Sandhya Iyer: uh, how do we-

Soundarya Iyer: uh, how do we-

Speaker #8: how do we?

Dan Dickson: We've made a lot of commit-

Speaker #7: We've made a lot of commits, yeah, we've made a lot of commitments. Our spend's a little lower in Q1 than we expected, but we've started to push that work.

Sandhya Iyer: get to that?

Soundarya Iyer: get to that?

Dan Dickson: Yeah, we've made a lot of commitments. Our spend's a little lower in Q1 than we expected, but we've started to push that work. We would be probably a handful of weeks behind, but not a significant amount. We're still hoping Q3 of 2026. Maybe it ends up being more the back half of Q3 rather than the front half of Q3, but we'll see how all that progresses over the next couple months.

Speaker #7: We would be probably a handful of weeks amount. We're still hoping Q3 of 2026. maybe it ends up being more of the back half of Q3 rather than the front half of Q3, but we'll see how all that progresses over the next couple of months.

Speaker #8: That's good. Thank you. Thanks for taking my question.

Sandhya Iyer: That's good. Thank you. Thanks for taking my question.

Soundarya Iyer: That's good. Thank you. Thanks for taking my question.

Speaker #7: Thank you for the questions.

Dan Dickson: Thank you for the questions.

Speaker #4: The next question comes, comes from Craig Stanley with Raymond James. Please go ahead.

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

Speaker #9: Thanks. and thank you for taking my call, guys. y I think you indicated you expect grades to pick up a bit at Terra Nera in the second half of this year.

Craig Stanley: Thanks. Thank you for taking my call, guys. I think you indicated you expect grades to pick up a bit at Terronera in H2 of this year. Are you gonna be mining La Luz?

Speaker #9: Is that, are you going to be mining a little loose?

Speaker #7: Yeah, Craig. Good questions. We're actually drilling a lot of loose right now. As you probably know, it's about 150,000 to 250,000 tons in our mine plan, in our feasibility mine plan.

Dan Dickson: Yeah, Craig. Good questions. We're actually drilling La Luz right now. As you probably know, it's about 150,000 to 250,000 tons in our mine plan, in our feasibility mine plan. Right now we're actually drilling a little bit to depth so we can come up with a more efficient mine plan just 'cause of the scale and trying to figure that out. We took the rigs out, we were drilling Terronera this past quarter, and those rigs are going back to La Luz now that we have assays. We'll drill La Luz probably till midyear and then start building a mine plan for that.

Speaker #7: So right now, we're actually drilling a little bit to depth so we can come up with a more efficient mine plan just 'cause of the scale and trying to figure that out.

Speaker #7: So, we took the rigs out. We were drilling Terra Nera this past quarter, and those rigs are going back to La Luz now that we have assays.

Speaker #7: and that will co we'll drill La Luz probably till mid-year and then start building a mine plan for that. So I suspect because of how things are going in Terra Nera, that T La Luz will get pushed to Q1 or Q2 of next year.

Dan Dickson: I suspect, because of how things are going in Terronera, that La Luz will get pushed to Q1 or Q2 of next year. Again, we'll have drill results out before this quarter's out at Terronera and maybe some at La Luz as well.

Speaker #7: but again, we'll have drill results out before this quarter's out at Terra Nera and, and maybe some of La Luz as well.

Speaker #9: Okay, and then were you saying on Pitarilla you’re sort of hoping to get the final permits in the first half of next year, and then start construction later in 2027?

Craig Stanley: Okay. Were you saying on Pitarrilla you are sort of hoping to get the final permits in H1 2027 and then start construction later in 2027?

Speaker #7: Yeah. Ultimately, we have a very good idea because of what Piteria is and the resources that are there, and the underground sulfide resources—that we'd be mining it from an underground standpoint.

Dan Dickson: Yeah. Ultimately we have a very good idea because of what Pitarrilla is and the resources that's there and the underground sulfide resources that we'd be mining it from an underground standpoint. I don't necessarily think the economic evaluation is gonna be that far off than what we've historically known. Really the gating item is the permit to build the tailing storage facility, which is gonna be a dry stack facility. We've been going back and forth with the authorities on that, hoping we can get through it relatively quickly. Now, at the beginning of the year, we thought maybe Q1 2027 we could get that permit. Things have seemed to be still sticky when it comes to permits in Mexico. We've heard a lot of our peers expecting permits in Q1, and that never came to fruition.

Speaker #7: I don't necessarily think the economic evaluation is gonna be that far off from what we've historically known, but really, the gating item is the permit to build the tailings storage facility, which is gonna be a dry stack facility.

Speaker #7: We've been going back and forth with the authorities on that. hoping we can get through it relatively quickly. Now, at the beginning of the year, we thought maybe Q1 2027, we could get that permit.

Speaker #7: things have seemed to be still sticky when it comes to permits in Mexico. We've heard a lot of our peers expecting permits in Q1, and that never came to fruition.

Speaker #7: Then it was gonna be early Q2, and we're almost halfway through Q2. So I'm getting a bit nervous on timelines when it comes to permits.

Dan Dickson: Then it was gonna be early Q2, we're almost halfway through Q2. I'm getting a bit nervous on timelines when it comes to permits, just because we haven't seen a real, the floodgates open, so to speak. That's what we were targeting. If we could start building in next year, that would be great. Now, we are still continuing forward with our construction camp this year. We have, ultimately a plan of 800 beds. I think we're putting in maybe a little bit less than that to start, like 250 to 300 beds. We're still making our movements to purchase mobile equipment and plant equipment, so we can do the basic and detailed engineering properly when it comes to the plant.

Speaker #7: Just because it's still— we haven't seen, really, the floodgates opened, so to speak. But that's what we were targeting. And then if we could start building in next year, that would be great.

Speaker #7: Now, we are still continuing to forward with our construction camp this year. So we have ultimately, a plan of 800 beds. I don't I think we're putting in maybe a little bit less than that to start, like 250 to 300 beds.

Speaker #7: And we're still making our movements to purchase mobile equipment and plant equipment so we can do the basic and detailed engineering properly when it comes to the plant.

Speaker #7: So we're still pushing ahead, but the real kicker for construction decision is that tailing sound permit.

Dan Dickson: We're still pushing ahead, but the real kicker for construction decision is that tailing dam permit.

Speaker #9: Okay. And then just the last thing from me. When you're out talking to institutional investors, does M&A come up more in regards to Endeavour Silver, be it being a potential target?

Craig Stanley: Okay. Then just the last thing from me. When you're out talking to institutional investors, does M&A come up more in regards to Endeavour Silver being a potential target? Because when you look at the silver space, you have a lot of these companies with much larger market caps like Pan American, Coeur, Hecla, First Majestic, and then it sort of drops off and you're sort of in this sort of middle stage, you know, before you get down into the sort of the real smaller producers. Just curious, like, you know, Terronera is now ramped up. Is that something that's in discussions, again, more with clients?

Speaker #9: And because when you look at the silver space, you have a lot of these companies with much larger market caps, like Pan American, Coeur, Hecla, First Majestic, and then it sort of drops off.

Speaker #9: And you're sort of in this sort of middle stage B, you know, before you get down into the real smaller producers.

Speaker #9: Just curious, like, you know, Terra Nera's now ramped up. Is that something that's in discussions? Again, more with clients.

Speaker #7: Yeah, I mean, with the investors, people always ask, like, "How do we want to grow?" I mean, we say we want to be a senior silver producer.

Dan Dickson: I mean, with the investors, people always ask, like, how do we wanna grow? We say we want to be a senior silver producer. Yes, Terronera is ramped up, hitting criteria through the plant. I think once those grades really start coming through and we get our costs down to expectations, I think there's a lot more value in our shares there. We want to build that value in our shares. Ultimately, we're a pretty young management team. I think we're pretty still hungry, to grow and find things. Never say never, but it's such a small space that there's only a handful of people that can actually look at us, and there's only a handful of things that we can look at. We have a pretty good corporate development guy. Some days he works hard.

Speaker #7: And yes, Terra Nera's ramped up, hitting criteria through the plant. I think once those grades really start coming through and we get our costs down to expectations, I think there's a lot more value in our shares there.

Speaker #7: We wanna build that value in our shares. Ultimately, we're a pretty young management team. I think we're still pretty hungry to grow and, and find things.

Speaker #7: Never say never, but it's such a small space that there's only a handful of people that can actually look at us, and there's only a handful of things that we can look at.

Speaker #7: So we have a pretty good corporate development guy. some days he works hard. He's sitting right in front of me, so. He we are always looking at things and trying to figure out the right combination for Endeavor.

Dan Dickson: He's sitting right in front of me. We are always looking at things and trying to figure out the right combination for Endeavour.

Speaker #9: All right. Thank you.

Craig Stanley: All right. Thank you.

Speaker #7: No problem. Thanks for the questions, Craig.

Dan Dickson: No problem. Thanks for the questions, Craig.

Speaker #4: We have a follow-up question from Sandaya Iyer. It would be Riley. Please go ahead.

Operator: We have a follow-up question from Sandhya Iyer with B. Riley. Please go ahead.

Speaker #8: Thanks, Dan. S-sorry for, just about, you know, coming in with another question. Just curious on the capital allocation. Curious about the capital allocation part. Like, you have $200, $200, $250 million in cash, and then this has been a record, you know, operating cash flow.

Sandhya Iyer: Thanks, Dan. Sorry for just butting, you know, getting with another question.

Soundarya Iyer: Thanks, Dan. Sorry for just butting, you know, getting with another question.

Dan Dickson: No problem at all.

Sandhya Iyer: capital allocation. Curious on the capital allocation part. Like, you have $250 million in cash, and then this has been a record, you know, operating cash flow. How are you thinking about, like, some dividends or buybacks? Not this year maybe, but in the future.

Soundarya Iyer: capital allocation. Curious on the capital allocation part. Like, you have $250 million in cash, and then this has been a record, you know, operating cash flow. How are you thinking about, like, some dividends or buybacks? Not this year maybe, but in the future.

Speaker #8: is it how, how are you thinking about, like, some dividends or buybacks? Not this year, maybe, but in, in, in the future, like.

Speaker #7: Yeah. I think it's very clear yeah, that's a fair question. I mean, for us, we're still on a growth trajectory. We're really excited about what we have at Piteria.

Dan Dickson: Yeah, I think it's very clear.

Sandhya Iyer: The prices are.

Soundarya Iyer: The prices are.

Dan Dickson: Yeah, that's a fair question. I mean, for us, we're still on a growth trajectory. We're really excited about what we have at Pitarrilla. I think the market's gonna understand that when a feasibility study comes out in Q3. The expectations, the cost to build it's gonna be somewhere between $500 to 600 million. If we keep generating cash at this rate, we'll have a good chunk of that built into our balance sheet by the end of the year and then obviously cash flows into 2027. Until Pitarrilla is built and operating and providing its cash flow is probably the time we'd start looking at dividends or share buybacks.

Speaker #7: I think the market's going to understand that when a feasibility study comes out in Q3. The expectations, the cost to build, it's going to be somewhere between $500 million and $600 million.

Speaker #7: If we keep generating cash at this rate, we'll have a good chunk of that built into our balance sheet by the end of the year.

Speaker #7: And then, obviously, cash flows into 2027. Until Piteria is built and operating and providing its cash flow, that's probably the time we'd start looking at dividends or share buybacks.

Speaker #7: But at this point in time, we feel like the rate of return that we can get out of Piteria will be very valuable for our shareholders, and that's what the cash that we're generating is gonna be used for.

Dan Dickson: At this point in time, we feel like the rate of return that we can get out of Pitarrilla will be very valuable for our shareholders, and that's what the cash that we're generating is gonna be used for.

Speaker #8: That's helpful, Colin. Thank you. Thank you, Dante.

Sandhya Iyer: That's helpful, Colin. Thank you. Thank you, Dan. Thank you.

Soundarya Iyer: That's helpful, Colin. Thank you. Thank you, Dan. Thank you.

Speaker #4: This concludes the question and answer session. I would like to turn the conference back over to Dan Dickson for any closing remarks. Please go ahead.

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

Speaker #7: Well, thank you operator and, and thanks for all our listeners today. I think Q1 was a good quarter for Endeavor, but we still have more expectations going to the ba back to the year.

Dan Dickson: Well, thank you, operator, and thanks for all our listeners today. I think Q1 was a good quarter for Endeavour. We still have more expectations going to the back of the year. As we say, Terronera's grades should pick up in H2. Kolpa will be operating close to 2,500 tons per day. We'll get more rhythm at Guanacevi, Terronera, and Kolpa that ultimately we expect a very strong next three quarters and specifically H2. We're excited with what we have. We're excited where we're going, and look forward to getting a feasibility study out on Pit 3 in H2 as well. Thanks for joining today.

Speaker #7: As you say, Terra Nera's grades should pick up in the second half of the year. COLPA will be off training close to 2,500 tons per day.

Speaker #7: And we'll get more rhythm at going to be Terra Nera and COLPA. Ultimately, we expect a very strong next three quarters, and specifically the second half of the year.

Speaker #7: So we're excited with what we have. We're excited where we're going. And, look forward to getting a feasibility study out on Piteria in the second half of the year as well.

Speaker #7: So thanks for joining today.

Operator: This brings to an end today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.