Endeavour Silver Corp (EXK)

[Entendance]

Endeavour Silver (NYSE:EXK): Q2 EPS of -$0.01 beats by $0.03.
Revenue of $47.72M (-12.9% Y/Y)


Endeavour Silver Reports Financial Results for Second Quarter, 2015; LOC Debt Reduced by $4 Million, Cash Holdings Increased by $5.5 Million; Conference Call at 10am PDT (1pm EDT) on August 6, 2015
VANCOUVER, BC--(Marketwired - August 06, 2015)

- Endeavour Silver Corp. (NYSE: EXK) (TSX: EDR) released today its financial results for the second quarter ended June 30, 2015. Endeavour owns and operates three underground silver-gold mines in Mexico: the Guanaceví mine in Durango state, and the Bolañitos and El Cubo mines in Guanajuato state.

The Company's financial performance in the Second Quarter, 2015 was lower compared to both the First Quarter, 2015 and the Second Quarter, 2014 as a result of lower precious metal prices and lower gold production. Operating costs were slightly higher quarter-on-quarter compared to the First Quarter, 2015 but substantially lower year-on-year compared to the Second Quarter, 2014.

Highlights of Second Quarter 2015 (Compared to Second Quarter 2014)

Financial
•Net loss of $1.0 million(1) ($0.01 per share) compared to $0.3 million ($0.00 per share)
•EBITDA(2) decreased 19% to $10.9 million
•Cash flow from operations before working capital changes decreased 8% to $11.0 million
•Mine operating cash flow before taxes(1) decreased 17% to $16.4 million
•Revenue decreased 13% to $47.7 million
•Realized silver price decreased 19% to $16.34 per ounce (oz) sold
•Realized gold price decreased 9% to $1,191 per oz sold
•Cash costs(2) decreased 13% to $8.60 per oz silver payable (net of gold credits)
•All-in sustaining (AIS) costs decreased 18% to $16.86 per oz silver payable (net of gold credits)
•On track to beat cash cost and AIS cost guidance for 2015
•Working capital of $26.7 million after using free cash flow to reduce LOC debt by $4 million to $25 million and increase cash holdings by $5.5 million to $31.8 million

Operations
•Silver production increased 8% to 1,805,569 oz, 35,828 oz more than previously reported
•Gold production decreased 11% to 13,430 oz, 383 oz more than previously reported
•Silver equivalent production increased 1% to 2.7 million oz (at a 70:1 silver:gold ratio)
•On track to meet high end of silver production and low end of gold production guidance for 2015
•Bullion inventory at quarter-end included 187,954 oz silver and 399 oz gold
•Concentrate inventory at quarter-end included 76,099 oz silver and 926 oz gold
•El Cubo mine expansion to 2,200 tpd completed on time and budget by the end of Q2, 2015
•El Cubo production below plan at mid-year but expected to meet guidance by year-end
•Guanaceví production above plan at mid-year and expected to beat guidance
•Bolañitos production on plan at mid-year and expected to meet guidance
•Terronera positive PEA published in May, PFS postponed until January 2016
•El Cubo wins first place, Bolañitos wins second place in first aid and benchman mine rescue competitions out of 14 teams; El Cubo and Guanaceví move on to Mexican national competition
1.The Consolidated Interim Financial Statements and Management's Discussion & Analysis can be viewed on the Company's website at www.edrsilver.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov. All amounts are reported in US$.
2.Mine operating cash flow, EBITDA, cash costs and all-in sustaining costs are non-IFRS measures. Please refer to the definitions in the Company's Management Discussion & Analysis.

Endeavour CEO Bradford Cooke commented, "Our strong operational and financial performance in the Second Quarter, notwithstanding lower metal prices, allowed us to add $9.5 million in net cash to the balance sheet. We are also on track to meet our production guidance and beat cash cost and AIS cost guidance for 2015.

"Congratulations once again to our El Cubo management and workforce for delivering the 50% El Cubo mine expansion to 2,200 tpd in Q2, 2015 on time and budget! Q3, 2015 should see a decline in operating costs now that the mine expansion is complete. I would also like to recognize the stellar performances of all three of our mine rescue teams in the recent regional competitions in Mexico.

"We released a robust preliminary economic assessment in May for our new, high-grade Terronera mine project in Jalisco state. But with the metal prices still falling in July, management felt it prudent to slow our growth spending at Terronera so the pre-feasibility study has been postponed until January 2016."


Operating Results


Conference Call

A conference call to discuss the results will be held on Thursday, August 6 at 10am PDT (1pm EDT). To participate in the conference call, please dial the following:

Toll-free in Canada and the US: 1-800-319-4610 FREE
Local Vancouver: 604-638-5340
Outside of Canada and the US: 1-604-638-5340

No pass-code is necessary to participate in the conference call.

A replay of the conference call will be available by dialing 1-800-319-6413 FREE in Canada and the US (toll-free) or 1-604-638-9010 outside of Canada and the US. The required pass-code is 4890 followed by the # sign. The audio replay and a written transcript will also be made available on the Company's website at www.edrsilver.com


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