Interview with Dan Dickson, CEO of Endeavour Silver (TSX: EDR, NYSE: EXK)

Recording date: 12th September 2023

Endeavour Silver is a precious metals mining company focused on silver and gold production in Mexico. The company currently operates two higher-cost mines, Guanacevi and Bolañitos, but is advancing its transformational Terronera project.

Construction commenced on Terronera in Q2 2023, with first production expected by Q4 2024. The new mine is forecast to double Endeavour's production while cutting all-in-sustaining-costs per ounce by half. This should improve the company's cost profile and cash flow generation.

Endeavour has not needed to tap equity markets recently, funding Terronera construction from its balance sheet and debt facility. A $120 million debt commitment was secured earlier this year, providing capital to advance the project. The debt load is expected to peak by late 2024.

An ATM facility provides additional financing flexibility and insurance if further funding is required. Endeavour's strong cash position and operating cash flow have allowed it to self-fund growth initiatives.

Beyond Terronera, Endeavour acquired the Pitarrilla project last year from SSR Mining. Pitarrilla hosts over 600 million ounces of silver resources, representing further production growth potential. Underground exploration drilling is slated for 2023 to upgrade resources.

The Parral project offers another near-term development opportunity, with historic underground workings and infrastructure in place. However, the large scale Pitarrilla is the key growth focus given its potential to be a company-maker asset.

Endeavour will continue assessing distressed assets and creative M&A opportunities. The company takes a selective, methodical approach to acquisitions in order to systematically enhance its project pipeline over time.

In Mexico, some government rhetoric against mining has emerged ahead of 2024 elections. However, no major tax or regulatory changes have been enacted under the current administration. Endeavour has strong legal and government relations expertise to navigate Mexico's mining industry.

With improving operations, a strengthened balance sheet and clear growth runway from Terronera and Pitarrilla, Endeavour Silver appears well positioned to drive the next phase of production and cost profile gains.