Endeavour Silver reported that revenue for the quarter ended September 30 rose 66% year‑over‑year to $142.8 million, driven by higher silver and gold prices and a 23% increase in silver‑equivalent production from its Mexican and Peruvian mines. The jump in output, combined with a 12% rise in realized prices, offset the 8% increase in operating costs, leaving revenue growth largely attributable to commodity price gains and scale.
Mine operating earnings climbed to $15.6 million, up from $12.5 million in the same period last year. The newly commercialized Terronera mine posted an operating loss of $3.6 million, reflecting the commissioning costs of a new mine, while the Kolpa mine contributed $3.9 million in operating earnings, underscoring the continued strength of the company’s core assets.
Operating earnings after exploration, evaluation and development costs fell to $1.8 million, down from $3.8 million in Q3 2024. The decline is largely due to a $7.3 million increase in exploration and development expenses, which offset the higher mine operating earnings. Net loss widened to $42.0 million, a sharp increase from the $17.3 million loss in Q3 2024, driven by a $39.0 million derivative loss and partially offset by a $0.6 million foreign‑exchange gain.
The company’s adjusted earnings per share were a loss of $0.01, missing the consensus estimate of $0.05 by $0.04. The miss reflects the impact of the derivative loss and the lack of a significant operating profit cushion, despite the revenue growth. Investors reacted negatively, focusing on the widened loss and the EPS miss rather than the underlying revenue momentum.
Management did not provide forward guidance for the next quarter or the full year. CEO Dan Dickson highlighted the commercial production milestone at Terronera and the company’s confidence in sustaining production growth, but emphasized the need to manage operating costs and derivative exposure to improve profitability in the coming periods.
Management’s comments underscore a strategic focus on scaling production while controlling costs. The company’s ability to convert higher commodity prices into operating earnings will be critical to narrowing the net loss and achieving a positive adjusted EPS in future quarters.
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