EXK

Shares of Avino Silver & Gold Mines Ltd. ASM have dipped 5% since reporting second-quarter 2026 results on Aug.12 as revenues lag estimates and production falls year over year despite a higher average realized silver price.  The company reported adjusted earnings of 6 cents per share for the second quarter of 2026, unchanged year over year and in line with the Zacks Consensus Estimate. Including one-time items, the company registered earnings per share of 6 cents compared with earnings of 2 cents in the year-ago quarter. Avino Silver price-consensus-eps-surprise-chart | Avino Silver Quote Revenues rose 23% year over year to $26.8 million but missed the consensus estimate of $31 million by 14.4%. The top-line shortfall came as silver-equivalent payable ounces sold fell 43% to 387,142 ounces, even as the average realized silver price more than doubled to $68.90 per ounce. The company recorded cash costs of $28.62 per silver-equivalent payable ounce, an 89% rise from $15.11 in the year-ago quarter. Consolidated all-in sustaining costs were $38.75 per silver-equivalent payable ounce compared with $20.93 in the second quarter of 2025.Avino Silver reported mine-operating income of $13 million, up 27% from $10.2 million in the year-ago quarter. EBITDA was $12.6 million, which was 69% higher than $7.4 million in the prior-year quarter. The company’s silver-equivalent production was 534,945 ounces in the second quarter of 2026, which marked a 17% decrease from the second quarter of 2025. Silver feed grade rose 22% to 67 grams per ton, while gold feed grade increased 30% to 0.51 grams per ton. Silver recovery fell to 69% from 85%, and copper recovery declined to 72% from 83%.Coming to the second quarter’s metal-wise detailed figures, silver production fell 6% to 267,305 ounces and copper production dropped 50% to 729,929 pounds. Gold output, however, increased 23% to 2,178 ounces.La Preciosa development production increased 59% from the first quarter, contributing 100,658 silver-equivalent ounces. This included 84,806 silver ounces and 182 gold ounces. The company ended the second quarter with $144 million in cash in hand, higher than $101.7 million at the end of 2025. Cash provided by operating activities was $13.3 million compared with $8.4 million in the year-ago quarter. The company remained debt-free, excluding operating equipment leases. The company's 2026 production guidance is 2.4 million to 2.7 million silver-equivalent ounces, while it targets more than 3 million ounces in 2027. La Preciosa has a 2026 production goal of 500 tons per day. Two drills were operating there, with 6,591 meters completed by the end of the second quarter toward a 15,000-meter exploration program. Drilling has shifted from infill work to exploration and step-out holes at high-priority targets. Avino Silver also budgeted 15,000 meters of exploration at the Avino Mine for 2026. Shares of the company have skyrocketed 87.5% over the past year compared with the industry’s 77.5% surge. Image Source: Zacks Investment Research The company currently has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Endeavour Silver Corporation EXK reported adjusted earnings of 15 cents per share for the second quarter of 2026 against an adjusted loss of 3 cents incurred in the prior-year quarter. The bottom line met the Zacks Consensus Estimate.Endeavour Silver’s revenues skyrocketed 149.4% to $212 million from $85 million in the second quarter of 2025. The top line beat the Zacks Consensus Estimate of $201 million.First Majestic Silver Corp AG posted earnings per share of 21 cents for second-quarter 2026, which missed the Zacks Consensus Estimate of 25 cents. AG posted earnings of 4 cents per share in the year-ago quarter.First Majestic Silver’s revenues rose 57.2% year over year to $415 million in the quarter under review. Buenaventura Mining Company BVN reported second-quarter 2026 adjusted earnings per share of 94 cents, missing the Zacks Consensus Estimate of 98 cents. BVN posted earnings of 40 cents per share in the year-ago quarter.Buenaventura Mining’s revenues jumped 43.4% year over year to $529 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $596 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avino Silver (ASM) : Free Stock Analysis Report Buenaventura Mining Company Inc. (BVN) : Free Stock Analysis Report Endeavour Silver Corporation (EXK) : Free Stock Analysis Report First Majestic Silver Corp. (AG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pan American Silver Corp. PAAS reported adjusted earnings of 73 cents per share for the second quarter of 2026, surging 69.8% year over year but missing the Zacks Consensus Estimate of 84 cents by 13.1%. Including one-time items, Pan American Silver reported earnings of 72 cents in the quarter compared with the year-ago quarter’s earnings of 52 cents. Pan American Silver Corp. price-consensus-eps-surprise-chart | Pan American Silver Corp. Quote Pan American Silver’s revenues improved 38.4% year over year to $1.12 billion in the quarter under review. The top line missed the Zacks Consensus Estimate of $1.16 billion. The average realized silver price in the quarter skyrocketed 115.7% year over year to $70.97 per ounce. The average realized gold price increased 33.2% year over year to $4,402 per ounce. Attributable silver production reached 6.47 million ounces, at the high end of the company’s quarterly operating outlook. Production increased 27% year over year. The increase mainly reflected 1.74 million ounces from the acquired 44% interest in Juanicipio, while Cerro Moro benefited from higher grades due to mine sequencing.Attributable gold production fell 7.2% to 165.9 thousand ounces. The figure came below the company’s quarterly operating outlook. Lower output at Shahuindo, Jacobina and El Peñon more than offset gains at Cerro Moro and the contribution from Juanicipio. Gold production came in below the company’s quarterly operating outlook.Pan American Silver reported mine-operating earnings of $457 million in the quarter compared with $273 million in the prior-year quarter. The Silver segment’s cash costs were $13.21 per ounce in the second quarter, down 9.9% from the year-ago period. The segment’s all-in sustaining costs (AISC) declined 9.5% year over year to $17.80 per ounce in the quarter. Low-AISC ounces from Juanicipio and stronger gold by-product credits at Cerro Moro helped offset higher royalties and operating costs at La Colorada, San Vicente and Huaron.The Gold segment’s cash costs were $1,585 per ounce, reflecting a 20.8% increase from the year-ago quarter. The segment’s AISC costs amounted to $1,984 per ounce in the April-June period, representing a year-over-year increase of 23.2%. The increase reflected lower-grade mining and higher haulage, maintenance, labor, consumables and ground-support costs across operations including Jacobina, Minera Florida, Timmins and Shahuindo. Cash flow from operations increased to $320 million from $294 million despite $205 million of income taxes paid. The attributable free cash flow was $344 million compared with $234 million a year earlier, including Pan American’s 44% share of Juanicipio.Pan American returned a record $300 million to shareholders during the quarter, including $224 million in share repurchases and $76 million in dividends. Cash and short-term investments totaled $1.8 billion at the quarter-end, including $97 million attributable to Juanicipio. In July, the company doubled its revolving credit facility to $1.5 billion, with a $750-million accordion feature. Pan American Silver reaffirmed its 2026 operating outlook for silver and gold production, base-metal production, segment AISC and sustaining capital. Silver production is projected at 25-27 million ounces, with silver segment AISC of $15.75-$18.25 per ounce.The company expects gold production to finish at the low end of 700-750 thousand ounces and gold segment AISC at the high end of $1,700-$1,850 per ounce. Third-quarter gold production is expected to be 3-6 thousand ounces below the low end of 178.5 to 192.0 thousand ounces. At La Colorada Skarn, the company invested $20 million of project capital in the first half of 2026 and completed the first cut of the 588 Decline in early August. Engineering for the next phase, including material handling and ventilation infrastructure, is scheduled for board consideration in the second half.At Jacobina, first-half project capital totaled $22 million as Pan American advanced plant and infrastructure improvements. The company also moved ahead with the first phase of the Timmins Camp Project, wherein the board approved a $146-million investment to extend the Bell Creek shaft and build exploration drifts. Shares of Pan American Silver have gained 51.1% in the past year compared with the industry’s growth of 77.6%. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Endeavour Silver Corporation EXK reported adjusted earnings of 15 cents per share for the second quarter of 2026 against an adjusted loss of 3 cents incurred in the prior-year quarter. The bottom line met the Zacks Consensus Estimate.Endeavour Silver’s revenues skyrocketed 149.4% to $212 million from $85 million in the second quarter of 2025. The top line beat the Zacks Consensus Estimate of $201 million.First Majestic Silver Corp AG posted earnings per share of 21 cents for second-quarter 2026, which missed the Zacks Consensus Estimate of 25 cents. AG posted earnings of 4 cents per share in the year-ago quarter.First Majestic Silver’s revenues rose 57.2% year over year to $415 million in the quarter under review. Buenaventura Mining Company BVN reported second-quarter 2026 adjusted earnings per share of 94 cents, missing the Zacks Consensus Estimate of 98 cents. BVN posted earnings of 40 cents per share in the year-ago quarter.Buenaventura Mining’s revenues jumped 43.4% year over year to $529 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $596 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pan American Silver Corp. (PAAS) : Free Stock Analysis Report Buenaventura Mining Company Inc. (BVN) : Free Stock Analysis Report Endeavour Silver Corporation (EXK) : Free Stock Analysis Report First Majestic Silver Corp. (AG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Pan American Silver Corp. PAAS is scheduled to report second-quarter 2026 results on Aug. 12, after market close. The Zacks Consensus Estimate for Pan American Silver’s second-quarter total sales is pegged at $1.16 billion, indicating a 43.2% rise from the year-ago quarter’s actual.The consensus mark for earnings has been moved down 22.2% in the past 60 days to 84 cents per share. This, however, suggests a 93.4% year-over-year upsurge from earnings of 43 cents. Image Source: Zacks Investment Research Pan American Silver’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and came in line in one. The company has a trailing four-quarter earnings surprise of 7.9%, on average. The trend is shown in the chart below. Image Source: Zacks Investment Research Our proven model does not conclusively predict an earnings beat for Pan American Silver this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.Earnings ESP: PAAS has an Earnings ESP of 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.Zacks Rank: The company currently has a Zacks Rank of 4 (Sell). You can see the complete list of today’s Zacks #1 Rank stocks here. Pan American Silver maintained a strong operational footing in the first quarter of 2026, delivering a solid performance. This offers an insight into its second-quarter performance.  Pan American Silver produced 6.4 million ounces of silver in the first quarter of 2026, reflecting strong contributions from the Juanicipio mine. The company produced 5 million ounces of silver in the first quarter of 2025.  La Colorada and Cerro Moro reported higher output due to higher grades. However, Huaron reported lower numbers due to lower silver grades. Production at Dolores was down following the cessation of mining operations in July 2024 and the site transitioning into its residual leaching phase. The Zacks Consensus Estimate for PAAS’s second-quarter 2026 silver production is 6.5 million ounces, indicating a 27.1% year-over-year rise.It produced 169.2 thousand ounces of gold in the first quarter of 2026. The figure marks a decrease from the 182.2 thousand ounces produced in the prior-year quarter. The production was impacted by the loss of Dolores' contribution. Production at the El Peñon mine also fell due to mine sequencing into lower-grade ore zones and a higher proportion of low-grade stockpile ore processed. The Zacks Consensus Estimate for PAAS’s second-quarter gold production is 176 thousand ounces, indicating a 1.1% year-over-year decline.  The year-over-year increase in silver output, along with higher prices, will likely translate to higher revenues in the quarter. Even though gold and silver prices have dropped since peaking in January 2026, they have remained supportive. The combination of higher prices is expected to have enhanced Pan American Silver’s top-line performance in the quarter. In the past year, PAAS shares have surged 64.6% compared with the industry's 79.4% growth. Image Source: Zacks Investment Research Endeavour Silver Corporation EXK reported adjusted earnings of 15 cents per share for the second quarter of 2026 against an adjusted loss of 3 cents incurred in the prior-year quarter. The bottom line met the Zacks Consensus Estimate.Endeavour Silver’s revenues skyrocketed 149.4% to $212 million from $85 million in the second quarter of 2025. The top line beat the Zacks Consensus Estimate of $201 million.First Majestic Silver Corp AG posted earnings per share of 21 cents for second-quarter 2026, which missed the Zacks Consensus Estimate of 25 cents. AG posted earnings of 4 cents per share in the year-ago quarter.First Majestic Silver’s revenues rose 57.2% year over year to $415 million in the quarter under review. Buenaventura Mining Company BVN reported second-quarter 2026 adjusted earnings per share of 94 cents, missing the Zacks Consensus Estimate of 98 cents. BVN posted earnings of 40 cents per share in the year-ago quarter.Buenaventura Mining’s revenues jumped 43.4% year over year to $529 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $596 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pan American Silver Corp. (PAAS) : Free Stock Analysis Report Buenaventura Mining Company Inc. (BVN) : Free Stock Analysis Report Endeavour Silver Corporation (EXK) : Free Stock Analysis Report First Majestic Silver Corp. (AG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Thursday, July 30, 2026, at 1 p.m. ET Vice President, Investor Relations - Allison Pettit Chief Executive Officer - Dan Dickson Chief Financial Officer - Elizabeth Senez Operator: Thank you for standing by. This is the conference operator. Welcome to the Endeavour Silver's Second Quarter 2026 Financial Results Conference Call. [Operator Instructions] The conference is being recorded. [Operator Instructions] I would now like to turn the conference over to Allison Pettit, Vice President, Investor Relations. Please go ahead. Allison Pettit: Thank you, operator, and good morning, everyone. Before we get started, I ask that you view our MD&A for cautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our MD&A and financial statements are available on our website at edrsilver.com. On today's call, we have Dan Dickson, Endeavour Silver's CEO; and Elizabeth Senez, our CFO. Following Dan's formal remarks, we will open the call for questions. And now over to Dan. Dan Dickson: Thanks, Allison, and welcome, everyone. Endeavour Silver's second quarter performance reflects the strength of our operations with increased production, record metal sales and a meaningful improvement in mine operating cash flow. Terronera's ramp-up and the higher throughput achieved at Kolpa, together with our strong cash position gives us a solid base to continue advancing our growth plans throughout the remainder of the year. In Q2, Endeavour produced nearly 2 million ounces of silver and over 10,000 ounces of gold, totaling 3 million silver equivalent ounces. This represents a 36% increase compared to Q2 2025. We reported revenue of $212 million, an increase of 150% compared to prior year, with mine operating earnings of $74 million, again, higher than the $7 million in Q2 2025 and mine operating cash flow of $100 million before taxes, a 300% increase from Q2 2025. Our all-in sustaining costs net of by-product credits were $37 this quarter, representing a 47% increase from Q2 2025. Profitability has significantly increased our operating costs with increased royalties, purchased material, profit sharing and mining taxes. With increased profitability, we continue to invest in sustaining capital costs, especially compared to prior period. In Q2, Endeavour recognized an adjusted net earnings of $45 million or an adjusted net earnings per share of $0.15. Changes in the metal price have a meaningful impact on our direct cost per tonne. For example, for every $1 increase in silver ounce, cost per tonne rise by about $0.90 at Terronera, $3.80 at Guanacevi and $0.50 at Kolpa due to the higher royalties, mining duties, third-party purchased ore and fairly required profit sharing. Direct operating costs per tonne were 14% higher this quarter compared to Q2 last year as the Mexican peso has appreciated and put pressure on inputs impacting our costs. During the first quarter, Kolpa installed and commissioned a new 3-stage crusher and ball mill, increasing plant capacity to 2,500 tonnes per day. Additional expansion expenditures remain along with capital improvement initiatives, including the expansion of the tailings storage facility to accommodate the increased plant capacity, construction of a new water treatment plant, new power substations required to support current and future operating levels as well as upgrades to the camp combinations aimed at attracting and retaining skilled miners in Peru. Management continues to evaluate the long-term capital needs of Kolpa and has increased the 2026 budget by $18 million to bring projects forward and meet company and Peruvian recommendations. At Terronera, daily throughput remained consistent as the processing plant focused on metal recoveries. Silver grades were in line with plan for the quarter and are expected to increase during the second half of the year as mining operations access our higher-grade areas. Further progress is expected on recoveries as the grinding circuit continues to find efficiencies and to meet the design criteria. With higher-grade areas and other ramp-up efficiency initiatives such as the LNG plant commissioning and the waste dump 2 development, management expects an incremental decrease in Terronera's cost per tonne throughout the second half of the year. Exploration drilling also restarted Terronera, making it the first drill program at the mine since 2020 and aimed at expanding and better defining mineralization along strike and depth within the Terronera vein and defining the limits of mineralization near historical working to support mine design and long-term planning La Luz. For more details, we released initial results on June 18, and you can find them on our website. Guanacevi incurred higher direct cost per tonne this quarter, largely due to higher volume and cost of third-party material purchased, which has become more expensive on a per tonne basis due to the higher prices. The higher metal prices also drove higher royalties, special mining duty payable for the period. The higher prices have allowed the operating team to mine lower-grade zones, ultimately extending mine life, and we do expect higher-grade areas to come in line in the near future, increasing grades from current levels. Drilling continued throughout Q2 at Guanacevi as well, focusing on underground diamond drilling in deeper parts of the Alondra-Porvenir Dos and El Milache areas, and we continue to test Santa Cruz vein and look for additional extensions to the north. As of June 30, 2026, we had a cash position of $236 million, working capital of $214 million, providing a strong and stable foundation to advance our ongoing initiatives. We continue to advance the Pitarrilla feasibility study, which is expected at the end of Q3 with economic information being collected with drafts expected shortly for management. In closing, Endeavour delivered a strong second quarter, supported by higher production, record metal sales, improved mine operating cash flow and strengthened balance sheet. With the Kolpa expansion now achieving higher throughput, Terronera continue to advance through its ramp-up and the advancement of the Pitarrilla feasibility study underway, we are well positioned to build on this momentum through the second half of the year and into next year. Thank you for your continued support and engagement. And with that, I'm happy to open up for questions. Operator, let's please proceed to the Q&A session. Operator: [Operator Instructions] The first question comes from Heiko Ihle with H.C. Wainwright. Heiko Ihle: I went back on the Terronera environmental website this morning that you guys have set up terronera.com. Obviously, commissioning at the site began a month ago. And then you did mention an incremental decrease in costs during the second half. So just a couple of questions based on that. Were there any bottlenecks or costs that you didn't anticipate so far during the commissioning or anything else that didn't come in as anticipated? Dan Dickson: For our LNG plant, we commissioned it in June. I wouldn't say there was anything particularly unexpected. Just going through permitting, it took a longer time. And -- if you recall, we might have talked about this on past calls or past meetings, but there is an LNG spill in Mexico City in November, December of 2025. And that impacted us having to put together additional emergency response plans for LNG to be transported to our site, which actually right now is coming out of the state of Chihuahua and eventually will come from Guadalajara. We had to do that, and we actually had to increase our permit around storage, again, all related to some of the incidents that have happened around the country. But from a commissioning standpoint, our actual LNG plant went very smoothly, just took longer than expected just because of the permitting. Heiko Ihle: Yes. Okay. And then to be clear, the LNG plant obviously supplies the land and the buildings -- but then it also says that there is -- that it gives loads of 4 portals of the mine water management system. All those are now connected? Or what's the time line to actually finish this off? Dan Dickson: Yes. No, it's a very good question, actually. So our lower platform is what we connected first, and that happened early June. End of June, we connected the upper platform. So effectively, the whole plant was connected by the end of the quarter. And here in August, it's coming up. By August 15, we'll have the mine connected to LNG generation system. So right now, the mine remains on its diesel gensets, and we just had boreholes to go through, and we're actually running the line this week. So hopefully, we're connected before mid-month. But at this point, it's ongoing. Heiko Ihle: Fair enough. And then just conceptually, I mean, you guys got close to $0.25 billion in cash. I remember when this company didn't have a market cap of that size and probably aging myself here a little bit. Just thinking out loud, I mean, where do you think -- what's the limit or what's the necessary bottom right now in regards to your cash balance? And then building on that, at what point should we even maybe think out loud and maybe see like a special dividend, especially once you're done with all the capital expenditures that are coming towards you over the next couple of quarters? Dan Dickson: Yes. I mean we often get that question, Heiko, it's ultimately a resource allocation and what we do with that. And there will be a time that we return money to shareholders either through a dividend, share buyback. I think the growth plans that we have as a company over the next 5 years is still pretty substantial. We obviously have our convertible debt that's long term, and that's about $350 million. And one day will be paid back if our share price is at $12.45 and that gets converted, that gets converted. Ultimately, Pitarrilla and the feasibility study that we have coming out, hopefully here by the end of September and have information publicly for that dictates what we're going to do with that capital. And that feasibility study, we fully expect to be very positive, and we expect to build cost somewhere in $500 million, $600 million range. And we don't have that CapEx number yet. But just management's kind of expectation being around that, that cash flow that we're generating and the cash that we have on our balance sheet, it will ultimately be earmarked for Pitarrilla. Now Pitarrilla, we can have that built by 2030, ultimately now you're a company of scale that can look at dividends or share buybacks, and that's when we start talking about returning capital to shareholders. Operator: The next question comes from Wayne Lam with TD Securities. Wayne Lam: Maybe first question, just on the grades at Terronera. Just wanted to get a bit more detail. If we look back to the commercial production announcement last October, you guys had guided to a 6-month period where you're moving through the lower-grade development ore to get to the higher-grade zones. So I just wanted to know kind of what the expectation is now with the commentary that you're going to get into higher grades. Is that something that we should expect a step change immediately into Q3? Or is there still more of a ramp-up? And then just with the mine plan in year 1, having silver grades north of 200 grams per tonne and gold grades at almost 4 gram, should we kind of start to model that into the back half of the year? Or just wondering if there's any additional commentary you can provide us in terms of what we should expect going forward and what you've seen so far through the month of July? Dan Dickson: Yes. I'll answer your second question first. That's okay, Wayne. So as far as you're going back to the feasibility study when you have the 4-gram gold that's coming through, and that's related to La Luz in our feasibility study from an IRR standpoint and payback period, your highest grade material starts in day 1. From practicality standpoint, we obviously didn't go with that. Obviously, the price is completely different than what we did our feasibility study, which was at $17 silver. We didn't want to have grade end up in our -- ounces end up in our tailings storage facility and made the decision midyear last year that we'd go after lower-grade material, and that wouldn't happen until about midyear this year. La Luz came out of that plan last year, and now it's kind of earmarked for Q1, Q2 of next year. Ultimately, we spent time drilling that out. We've pushed that resource to depth a little bit. Our one rig that's been on site has been drilling Terronera, and it's going back to La Luz in August to see if we can continue to find the bottom of La Luz. And that's all designed around so we can properly mine design La Luz so we can be most efficient. And we've kind of gone back and forth between longwall and cut and fill. A long way to say that ultimately, that high-grade gold isn't in our plan for 2026. It's in our plan for 2027. So that's why you've seen that gold run around 2 compared to the feasibility study that's running 4. The 200-gram silver is really coming from that Terronera shoot. There's a shoot that goes from southeast to northwest plunging towards the northwest that is our high-grade material. We put out drill results, as I said, in June 18 to kind of push that plunging shoot towards the northwest, and we've actually come into that a little bit sooner. We are starting still development now. We've seen some of our grades come up already in July, but I think it's going to be incremental increases July, August to September. We still do have some grade in the low-grade zones. We have some mineral that we're mining that's outside of our resource that if we don't take it, we're not going to get it. So that's going to slightly impact it, but we should see an increase in silver grade in the second half of the year and ultimately in Q3. Specific timing on July, August, September, it's going to give or take 3, 4 weeks. It's a very small time period. But ultimately, I would expect to see higher-grade silver grades in Q3 than we saw in Q2, which has always been the plan. Wayne Lam: Okay. That's pretty good detail. Maybe just shifting to costs. Just wondering on the AISC performance through H1, which you had noted some of the pressures that you've been seeing. But just curious with the performance through the first half of the year and with the silver price kind of pushing some of those factors higher, how are you thinking about your AISC guidance? And how should we be thinking about the improved efficiencies and the decline in sustaining capital spend into H2? Like just wondering if that guidance is still realistic given the performance to date. Dan Dickson: Yes. It's a very difficult thing to the amount of variables that go into your all-in sustaining costs. When we put out our guidance, we used $38 silver price or $36 silver price and ultimately build everything off that. And that actually steps back to when we start our process for planning in basically Q3 of 2025 and silver is sitting around that. And obviously, a huge change that happened. We also provide all those sensitivities in that guidance. And so it's difficult for whatever price you guys are using or different analysts have different prices, obviously. Right now, with the increased sustaining CapEx that we have at Kolpa, it's offset by the by-product credits that we're getting from lead, zinc, silver, some of the efficiencies we're getting. So there's a lot going on. We haven't changed our guidance on that all-in sustaining cost. And clearly, where we're sitting is much higher than our guidance, and that's going to continue because of the higher prices. Wayne Lam: Okay. Great. And then maybe just lastly on the hedging strategy. Can you give us a bit of detail on the go-forward hedging program on the Mexican peso? And then just with the higher cost at Guanacevi, I know you have the hedging in place currently from the build. But is there any thought to hedging silver price a bit further out to protect the margins at Guanacevi? Elizabeth Senez: I'll take that one. So on the foreign exchange hedging, all of the foreign exchange hedges that we put in [indiscernible] have been unwound. But yes, we are doing foreign exchange hedging for the operating costs that are denominated in peso for Guanacevi, and that also reflects on Terronera as well. With the stronger peso, we've not put any in the last 3 months. But that book is sitting pretty healthy for us. And our plan generally is to hedge the peso a small amount to tolerate any significant shifts in the price of the peso as it moves around. On the metal hedging, as you know, all the silver collars unwound in June and were paid out July 2. And then the gold hedges stream out to the end of June of next year. So we've got another year of gold hedges to pay out. And at this time, we have no plans to do any further metal hedging. Operator: The next question comes from Cosmos Chiu with CIBC. Cosmos Chiu: Maybe again, a question on the all-in sustaining cost. Dan, as you said, it's quite complex in terms of forecasting and guiding to all-in sustaining costs. And we talked about the different variables in terms of commodity price assumptions. But how about inflation? Could you remind us what kind of inflationary assumptions you have made? Are they kind of -- the realized inflation is this kind of what you had expected? Or is it higher? And how should we factor that in as we look at all-in sustaining cost? Dan Dickson: Yes. Thanks, Cosmos. It's a good question. And ultimately, the inflation that we looked at obviously different to a lot of things. Our labor, we had a planned 5% increase in labor, and I think that was where we settled maybe a little bit higher by point. Our initial plan when we go through our budgeting process, I think last year, we had about 3% inflation. Obviously, everything is different with what's happened in the Strait of Hormuz and the impact on diesel prices and not necessarily specific to us because we're captured a little bit in Mexico, where PEMEX controls that a little bit. But obviously, those prices impact our supplies and that gets passed down the chain. We're seeing a little bit more of that in the second quarter than obviously we saw in the first quarter. How long that continues? Is that long-term inflation, short-term inflation? I don't think we need to get into that here. But ultimately, we expect it. Cosmos Chiu: Okay. As I look at the individual all-in sustaining costs and the one that's much higher than what you had expected is Guanacevi, I think in large part due to a higher cost of purchasing third-party ore. Is that -- could you maybe talk about that strategy? Like how much -- the third-party ore, how much is that actually adding to your all-in sustaining cost because your all-in sustaining cost is over $50 an ounce, and that's almost touching... Dan Dickson: Yes. There's 2 parts to that. Ultimately, our all-in sustaining costs at Guanacevi are higher because we're also seeing on a per tonne basis, and I'll come back to the per tonne basis based off it, but our grades have been lower than planned at Guanacevi. Grades lower than planned, mean on a per ounce basis, the cost goes up on a per ounce basis, right? We're getting 8 ounces instead of 10 ounces out of that tonne. And that's pretty straightforward. And ultimately, we're going into lower-grade areas anywhere in El Curso back into Porvenir Dos. And then ultimately, we're actually moving towards Malache where grades will come up. The idea of going after those lower-grade ounces is because we have a 2-year mine life right now at Guanacevi and obviously, that extends mine life. The idea of the purchased ore in that area, there's a number of different family run operations in Guanacevi. It's a quilt system. We control a large part of the claims at Guanacevi, but there's a lot of family claims and a couple of small miners and mills in that area as well. Around this is also Frisco, which we obviously have the NSR, that's 16% NSR. With higher prices, we pay higher royalties. That goes into our all-in sustaining costs. The special mining duty, the profits that we're making at Guanacevi go into our all-in sustaining costs, of course, all that. And so it's a little bit of everything at Guanacevi is why our all-in sustaining costs are higher than what we've guided, lower grades, higher prices that drive profit sharing purchased ore. The purchased ore in this quarter, I think it was 21%, maybe even a bit higher than that, but it has been increasing to about 11,000, 12,000 tonnes came through in the quarter. And that's just, again, a function of the higher prices, meaning more family operations can open up areas and they're making more profit and they're delivering more material. That material when you're buying it at $50 increases. So our cost per tonne on an all-in basis, so we call it our direct costs, which includes royalties and purchased ore is $400. $130 of that $400 is purchased ore, right? So over 25% of our cost is related to purchased ore. Now we make about a 30% to 33% margin on that purchased ore. So if we buy it for $100, we make $30, and it extends our mine life. One of the things like the Guanacevi plant was originally built by the Mexican government in 1981 or 1982. Under that plant when it got sold, 10% of that plant needs to be available for family operations to toll their ore. So some of it's in our control, some of it's out of our control, but ultimately, us taking more allows us to continue to extend mine life, gives Luis and his exploration team time to continue to find resources as we move along. And hopefully, we're at Guanacevi another 3, 5, 10 years. Cosmos Chiu: Okay. Yes, I wasn't aware of that -- or maybe I forgot about the 30% profitability. So you're actually making money off of it. And I wasn't -- I guess it's beyond profitability as well. It sounds like you need to -- it's part of the agreement that you might have in place in terms of giving access to some of these families. Dan Dickson: Yes. We have to give access, but it also has to be profitable. So there are gating items in that agreement that protect us as well. But ultimately -- and there's a number of things [indiscernible] relations, et cetera, et cetera. There's a lot of qualitative aspects of buying that purchased ore. And we do a lot of work around it to make sure those claims are legit claims, et cetera, et cetera. But it is a profitable segment for us and extends our mine life. Cosmos Chiu: Great. And then maybe one last question, Dan, talking about sort of an expected cost. I see that your CapEx has increased now from $157 million for the year to $181 million -- $181 million. At Kolpa, it's going to be $18 million additional CapEx. So would you categorize that as sort of unexpected cost? Or is there really a benefit to a -- future benefit to whereby it might equate to over 2,500 tonnes per day or lower cost later on in terms of per tonne. Could you maybe talk about that? Dan Dickson: Yes. No, that's very fair. So in that $18 million, there's about $5 million of overruns from putting that ball mill in place, recommendations from Peruvian authorities on what we have to increase for power consumption and substations and then lifts required on the current tailings facility. Similarly, we've been running certain days at 2,600 all the way up to 2,800 tonnes per day. But obviously, we don't have facility capabilities to continually run that for the next 2 or 3 years. By increasing the power substations, water -- putting in a water treatment plant and our tailings filter systems, we're going from conventional tailings to dry stack tailings. We're trying to push that forward. That $18 million that we've added in is project expenditures we expect to happen this year, but it could end up getting pushed into next year. We don't start that work now. We'll be racing come 2030 to get it all finished, so we can continue to fill our tailings dam with ore. So as far as your question of what's expected, what's unexpected, some of it was unexpected, as I say, overruns, which is about $5 million of the $18 million and then $13 million is us bringing things forward from 2027. There's another -- inside that, there's $3 million for accommodations, the new camp. And that's, again, we're losing or having high turnover in Peru because of all the informal miners have been popping up with high prices. So we're building that out sooner than what we had planned to attract and retain talent. So it's something that we took -- didn't take very lightly when we started looking at it, but also we see a lot of potential through our exploration programs that we've done there that, hey, this is a long-term investment. It's not something -- we're going to be there well past the 8 years that we thought we had in our effectively model when we purchased it. We're going to be there 15, 20, 25 years, and we're going to make these investments now. Operator: The next question comes from Alex Terentiew with National Bank. Alexander Terentiew: A lot of good questions asked already. Maybe just a few follow-ups to dig into some of those. So starting with Kolpa, the additional spending here, this mine, I guess, since you guys bought it, has been performing operationally, I think, pretty well. You got your expansion up and production has been looking pretty good. But I think the offset has been there's been a bit more spending, at least than I anticipated. So I'm just trying to get a sense of the spending this year, I mean, how does that -- should I -- how should I think about longer-term spending here? Is this kind of catch-up spending that maybe you kind of didn't anticipate? Or is sustaining going to be a little bit higher on this project or this mine forward? Just trying to get a sense of longer-term expectations here. Dan Dickson: Yes. No, that's a very fair question. I'd say it's more focused on onetime expenditures with regards to expansion going from effectively 2,000 tonnes per day to 2,500 tonnes per day. And when our management team that we inherited came through with the program, there's definitely things they miss from a conceptual standpoint that start peeling back the onion we'll hold on this. There's not enough capacity from a power standpoint here, "Hey, we're going to run out of tailings dam in 2029, 2030 if we don't start moving on this." So as we've taken control and now we've been in control for just over a year, there's things that we have recommendations on and things that they ultimately missed. But most of that is actually onetime expenditures for the long-term viability of Kolpa, effectively putting the tailings storage filter presses in, going from red stack to dry stack. That's a onetime thing, new accommodations, onetime item, new power substations, a new water treatment plant to bring their standards up. Some of these things that we -- from an acquisition standpoint, we felt like we could live with for a while, but at these prices with these cash flows, it gives us the ability to make that investment down. It's something we don't have to worry about in year 3, year 4, or year 5 to push that out. And again, I'd point back to a lot of the work that Luis' team is doing and ultimately our Kolpa exploration team and what we're seeing. And I think our enthusiasm to get these investment projects done points to what we think the resource is ultimately going to be. Alexander Terentiew: Okay. That makes sense. And do you have an estimate on when an updated resource and mine plan would be out for Kolpa? Dan Dickson: Yes, we expect it to be out by the end of the year. Alexander Terentiew: End of the year. Okay. Good. All right. And then just going back to Terronera. I know you talked about higher silver grades coming second half this year. Any higher gold grades coming with those as well? Or is it just... Dan Dickson: No, we're staying in Terronera. There are some pockets in Terronera, even like I say, the drill results that we put out at 3, 4 grams in some of that area. But ultimately, gold should hover around 2. It's the silver that will pick up. Alexander Terentiew: Okay. And then just sticking with this one, you've had some really nice exploration results that you touched on earlier in the call and you published, I guess, a couple of weeks ago. Are you still thinking of putting out a new updated plan here for Terronera? I mean, obviously, the mine plan has changed quite a bit with the silver prices and exploration and... Dan Dickson: No, it's a very fair question. I don't -- we're not doing a new technical study and new mine plan won't be in that. So when we come out in 2027, we'll have the guidance for the year with expected tonnes and ultimately grades that we just put out ounces expected to produce. But we'll have a new resource for Terronera coming out at the end of this year. Luis right now continues to drill Terronera. As I say, we finished that up. We're going back over to Luis and they'll bring that rig back to Terronera. It's just a question of when we cut off the Terronera drill results for the year-end resource. Operator: The next question comes from Soundarya Iyer with B. Riley Securities. Soundarya Iyer: So again, most of the questions have been answered, but just one on Kolpa. So throughput was higher quarter-over-quarter, but I think the grades were pretty slightly lower. Is that a sequencing as you ramp up to that 2,500 tonnes and achieve steady state? Or how should we think about the grade and unit cost trending from here? Dan Dickson: Yes, Soundarya, the grades actually quarter-over-quarter are relatively flat. Silver is down just a little bit, I would say, that's under 5%, maybe 2% or 3%. And ultimately, our grades going forward for Kolpa are pretty flat. There's times where we have we call it the Yen pit, it's an open pit where it allows us to ultimately feed some lower-grade material through or short on tonnes. But again, generally, I expect rates to be relatively flat for the next 6 months. Soundarya Iyer: That's helpful. And one on Pitarrilla spending. So $48 million budgeted and I think roughly $5 million spend. So what are the key areas that needs to be funded from here? And is it like back half catch-up or we can roll some of that into 2027 without affecting the... Dan Dickson: Yes. Some of it is going to roll into 2027. We had always had a plan of having that feasibility study done in Q3. Internally, that may mean the front end of Q3 and externally, that means the back end of Q3. So because we're not going to have that feasibility study done until the end of Q3, it pushes back some equipment purchase long lead items deposits that would be required. Again, the gating item for Pitarrilla isn't necessarily the feasibility study from our standpoint. It's a permitting of the tailings storage facility that we're going through that process. And obviously, Mexico has been very difficult to get things through permitting, but we're seeing that kind of unlock over the last 6, 7 months. And we hope that we can get the permitting of that TSF. Again, we already have EMEA that's in place, and we have our underground permitted plants permitted. So it's just our storage facility, which is a dry stack, which is easier to ultimately get approved. It's a timing on all that, and we're definitely behind on what we expect to spend at this point in time. Operator: [Operator Instructions] Our next question comes from John Tumazos with John Tumazos Independent Research. John Tumazos: Congratulations on all the progress. Should we think of $70 million of value-added tax refund like $70 million more cash as though your cash balances are $300 million? Dan Dickson: Yes. It's a very fair way to think about that. We expect to collect that in Q3, and it's on track. So we feel we've had a very good track record historically in Mexico and collecting our value-added tax back. We really haven't had any issues since 2010 or 2011 when we had to go through courts to receive it, but it's been pretty normal course over the last couple of years. There was a big buildup of value-added tax through the build of Terronera. But again, we expect to collect that in Q3. John Tumazos: How much of the cash balances are designated to finish Kolpa and finish Terronera? And so one significant digit, how much do you think Pitarrilla is going to take? Dan Dickson: Ultimately, the cash balance on our balance sheet is not needed for the capital -- sustaining capital program at Terronera or the expansion work at Kolpa. Kolpa is generating cash flow that covers off our capital expenditures. Similarly at Terronera, we're generating cash flow that covers off some of these commission items with LNG or waste development to a little jobs that need to get done effectively. Our warehouse is going to get completed here in the second half. So the cash balance should be growing, especially from this point forward and not earmarked for any of that. What's ultimately earmarked for and the capital that we're going to generate this year and next year and hopefully into next year is earmarked for the construction of Pitarrilla. John Tumazos: Do you know the rough magnitude of the capital Pitarrilla requires? Dan Dickson: We don't have that yet internally from our external advisers who are putting together the feasibility study on Pitarrilla. We've always said publicly that we expect it to be somewhere between 500 to 600, but that's just a management estimate at this point. At the end of the... John Tumazos: How many tonnes per day is the mine in mill? Dan Dickson: We expect the mill to be somewhere between 3,500 and 4,000 tonnes. But again, that will come out in our feasibility study. John Tumazos: Is it practical for me to route for you to buy in some stock at 7.5 to hold toward the conversion at $1,245 or to buy some of those bonds now when they might be depressed because your stock is depressed? Dan Dickson: Well, that's for you to determine. I mean, ultimately, I can just talk to you about our business. People's investment philosophies are different amongst everybody, and they have different wants and needs and criteria, and we'll let you make that assessment, John, as opposed to us giving you... John Tumazos: Do you -- I'm not asking you for investment advice. Do you want to buy in some of those bonds when your stock is down? Dan Dickson: I believe in our company wholeheartedly. So yes, I would always want to buy into our stock, especially with our price compared to our net asset value right now. There's a lot of things that factor into that. Mostly for me, it's my wife and how much she spends. But what I want to do is always different based on what's happened in my life. John Tumazos: Congratulations on your progress. Dan Dickson: Thank you for the question, John. I hope that was the last one though. 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. Dan Dickson: Thanks, operator, and thanks to our shareholders for listening in today. I think we have a lot to deliver in the second half of the year. We're well positioned to do that, and I look forward to the further growth that we have in Endeavour Silver for this year and next year. Have a good day. Operator: This brings to a close today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Endeavour Silver (EXK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Endeavour Silver stock has delivered a strong 144.4% return over the past three years, yet the valuation signals are split, with the Discounted Cash Flow (DCF) intrinsic value estimate pointing to upside while market based multiples suggest the shares are not cheap. Over three years, Endeavour Silver has returned 144.4%, which puts extra focus on whether that gain is supported by fundamentals or mainly by a higher market price tag. Future cash flow from its silver production and project pipeline can support the intrinsic value case. However, uncertainty around metal prices and capital needs for growth may constrain how much investors are willing to pay today. Endeavour Silver currently passes only 1 of 6 valuation checks, which leans more towards the stock not being a clear bargain on the broader assessment. The issue now is whether Endeavour Silver's current share price already reflects the optimistic intrinsic value estimate or still leaves a reasonable margin of safety for new investors. Find out why Endeavour Silver's 53.2% return over the last year is lagging behind its peers. The Discounted Cash Flow (DCF) model values Endeavour Silver based on projected cash that can be returned to shareholders. For Endeavour Silver, the latest twelve month free cash flow is a loss of $205.3 million, yet the model assumes that cash flows recover and turn positive over time. These projections translate into an estimated intrinsic value of about CA$13.07 per share. That estimate sits above the current share price and implies a discount of roughly 19.6%. In other words, the DCF suggests the market is not fully pricing in the cash flow improvement that analysts expect for Endeavour Silver, even after accounting for risk through discounting. On this cash flow view, Endeavour Silver stock currently screens as undervalued relative to its DCF based intrinsic value. Our Discounted Cash Flow (DCF) analysis suggests Endeavour Silver is undervalued by 19.6%. Track this in your watchlist or portfolio, or discover 7 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Endeavour Silver. P/E is a useful yardstick for Endeavour Silver because it ties the current share price directly to the earnings the business is already generating. Today the stock trades on a P/E of about 33.8x, which is well above the Metals and Mining industry average of roughly 14.3x and above the peer group average of about 19.5x. The fair P/E ratio for Endeavour Silver, based on its specific profile, is estimated at around 19.0x. This is below the current 33.8x multiple, which suggests investors are paying a sizeable premium relative to what this framework points to as reasonable. This premium indicates that the market is already factoring in a higher level of optimism compared with sector norms. On this earnings multiple, Endeavour Silver stock currently appears overvalued compared with both industry averages and its modelled fair P/E level. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Endeavour Silver pick up where this valuation split leaves you by spelling out which assumptions on growth, margins and earnings would need to hold for the stock to be worth materially more or less than its current price. Each narrative treats Endeavour Silver's fair value as a thesis about the business that can be tracked over time, rather than a one off snapshot, and they sit on Simply Wall St's Community page. One of the top community narratives on Endeavour Silver: 88% undervalued Read one of the top narratives on Endeavour Silver Do you think there's more to the story for Endeavour Silver? Head over to our Community to see what others are saying! For Endeavour Silver, the Discounted Cash Flow (DCF) estimate points to some upside, yet the P/E based view flags the stock as overvalued compared with peers and its own modelled fair multiple. That split largely reflects different assumptions about how future cash flows ramp up versus how much optimism is already embedded in the current earnings multiple. Broader valuation checks remain weak, so the DCF signal on its own does not make this a clear value idea. The key question from here is whether Endeavour Silver can deliver the cash flow profile that would justify both its intrinsic value estimate and the premium earnings multiple investors are currently paying. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EDR.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Track your investments for FREE with Simply Wall St, the portfolio command center trusted by over 7 million individual investors worldwide. Endeavour Silver (TSX:EDR) is back in focus after reporting second quarter 2026 results, with sales of US$212.1 million and net income of US$66.5 million from continuing operations. See our latest analysis for Endeavour Silver. Despite the strong Q2 earnings update, Endeavour Silver’s recent share price performance has cooled, with the stock down 10.71% over the past 30 days and 15.31% year to date based on share price return. However, the 1 year total shareholder return of 53.21% and 3 year total shareholder return of 144.42% still point to substantial gains over a longer horizon. If this earnings move has you thinking about where else capital could work in precious metals, it may be worth scanning 9 top silver producer stocks Endeavour Silver is coming off a strong earnings headline but a softer share price, which puts you in a familiar spot. Is it worth committing fresh capital now, or does it make more sense to wait for a cheaper entry before moving in? At a last close of CA$10.51 versus a narrative fair value of CA$20.30, the current pricing for Endeavour Silver sits well below that estimate, which is built on specific mine ramp up and cash flow expectations rather than short term share moves. Read the complete narrative. Read the complete narrative. Want to understand why this fair value almost doubles the current share price? The narrative leans heavily on higher earnings power, richer profit margins and a premium future earnings multiple. The full breakdown shows exactly how those pieces fit together into CA$20.30. Result: Fair Value of CA$20.30 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Endeavour Silver narrative still depends on smooth Terronera ramp up and disciplined Kolpa integration, where delays or higher costs could quickly erode the upside case. Find out about the key risks to this Endeavour Silver narrative. The earlier fair value for Endeavour Silver leans on future earnings power and analyst targets. Yet on simple P/E maths, the stock trades at 33.8x compared with a Canadian Metals and Mining average of 14.7x and a fair ratio of 19x, which points to a much richer pricing. Which signal do you trust more right now? That kind of gap suggests real valuation risk if expectations reset, so it helps to see exactly how those earnings assumptions stack up in numbers rather than headlines. See what the numbers say about this price — find out in our valuation breakdown. If this mix of upside potential and valuation concern around Endeavour Silver feels conflicting, move quickly and review the numbers yourself to decide where you stand. To see both sides of the story in one place, check the 3 key rewards and 2 important warning signs If Endeavour Silver has sharpened your focus on opportunity and risk, do not stop here. Other stocks on Simply Wall Street could fit your goals even better. Target potential mispricing by reviewing 7 high quality undervalued stocks that pair strong fundamentals with prices that may not fully reflect their financial profile. Strengthen your income stream by scanning 6 dividend fortresses that combine higher yields with a focus on payment resilience. Reduce portfolio stress by reviewing 10 resilient stocks with low risk scores that score well on balance sheet strength and overall risk metrics. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include EDR.TO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

This article first appeared on GuruFocus. Production: Produced nearly 2 million ounces of silver and over 10,000 ounces of gold, totaling 3 million silver equivalent ounces, a 36% increase compared to Q2 2025. Revenue: Reported revenue of $212 million, an increase of 150% compared to the prior year. Mine Operating Earnings: Reported $74 million, higher than the $7 million in Q2 2025. Mine Operating Cash Flow: $100 million before taxes, a 300% increase from Q2 2025. All-In Sustaining Costs (AISC): Net of byproduct credits were $37 this quarter, representing a 47% increase from Q2 2025. Adjusted Net Earnings: Recognized $45 million or $0.15 per share. Direct Offering Costs: 14% higher this quarter compared to Q2 last year due to the appreciation of the Mexican peso. Cash Position: $236 million as of June 30, 2026. Working Capital: $214 million as of June 30, 2026. Capital Budget: Increased the 2026 budget by $18 million for the Colpa expansion to bring projects forward. Warning! GuruFocus has detected 6 Warning Signs with EXK. Is EXK fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Endeavour Silver Corp (NYSE:EXK) reported a 36% increase in silver equivalent production in Q2 2026, totaling 3 million ounces. Revenue surged 150% year-over-year to $212 million, with mine operating cash flow up 300% to $100 million before taxes. The company holds a strong cash position of $236 million and working capital of $214 million, providing a solid foundation for growth. Terronera's ramp-up is progressing, with higher-grade silver zones expected to be accessed in the second half of the year, potentially lowering costs. Exploration drilling has restarted at Terronera and Guanacevi, with promising results that could extend mine life and expand resources. All-in sustaining costs (AISC) increased 47% year-over-year to $37 per ounce, driven by higher royalties, profit sharing, and input costs. Direct costs per ton rose 14% due to the appreciation of the Mexican peso, putting pressure on operational margins. Guanacevi's costs were higher than planned due to lower grades and increased reliance on more expensive third-party ore, which now accounts for over 25% of direct costs. The company increased its 2026 capital expenditure budget by $18 million at Colpa for expansion and infrastructure upgrades, including tailings and power systems. The Pitarrilla feasibility study has been delayed to the end of Q3, and the company faces permitting challenges in Mexico, particularly for the tailings storage facility. Q: Can you provide more detail on the expected grade profile at Terronera for the second half of the year, and should we expect a step-change in Q3 or a gradual ramp-up?A: Dan Dickson (CEO) explained that the high-grade gold from La Luz is not in the 2026 plan but is earmarked for 2027. The 200-gram silver grade is coming from the Terronera shoot, which they have encountered sooner than expected. Grades have already started to increase in July, but the improvement will be incremental through Q3. He expects higher silver grades in Q3 compared to Q2, though the timing is flexible by a few weeks. Q: Given the strong cash position of nearly $250 million, what is the company's strategy for capital allocation, and when might shareholders see returns like dividends or buybacks?A: Dan Dickson (CEO) stated that the company's growth plans over the next five years are substantial. The cash will be earmarked for the Pitarrilla project, with expected build costs in the $500-$600 million range. He indicated that returning capital to shareholders through dividends or buybacks would be considered once Pitarrilla is built, potentially by 2030, and after the $350 million convertible debt is addressed. Q: How should we think about the company's AISC guidance given the higher costs in H1, and is the guidance still realistic?A: Dan Dickson (CEO) acknowledged that AISC is difficult to forecast due to many variables. The guidance was based on a $36-$38 silver price, but the current higher prices have increased costs through royalties, profit sharing, and third-party ore purchases. He noted that while sustaining CapEx at Colpa has increased, it is offset by byproduct credits. The company has not changed its guidance, but costs will remain higher due to elevated metal prices. Q: Can you provide details on the hedging strategy for the Mexican peso and whether there are plans to hedge silver prices further out to protect margins at Guanacevi?A: Allison Pettit (VP, IR) clarified that all foreign exchange hedges for the build have been unwound, but they are actively hedging peso-denominated operating costs for Guanacevi and Terronera. No new peso hedges have been placed in the last three months due to the stronger peso. On metal hedging, all silver collars unwound in June, and gold hedges will stream out to the end of June next year. There are no plans for further metal hedging at this time. Q: What inflationary assumptions have you made, and how does realized inflation compare to expectations?A: Dan Dickson (CEO) stated that labor inflation was planned at 5%, which is where they settled. General inflation was planned at around 3%. However, events like the Strait of Hormuz situation have impacted diesel prices, which trickles down to supply costs. They are seeing more inflationary pressure in Q2 than Q1, but it is unclear if this is long-term or short-term inflation. Q: Can you explain the higher costs at Guanacevi, particularly regarding third-party ore purchases, and is this strategy profitable?A: Dan Dickson (CEO) explained that Guanacevi's higher AISC is due to lower grades and higher costs from royalties, special mining duty, and profit sharing driven by higher metal prices. Third-party ore purchases accounted for over 25% of direct costs, but the company maintains a 30-33% margin on this material. This strategy extends mine life and is profitable, while also fulfilling community relations obligations. Q: The CapEx budget has increased by $18 million at Colpa. Can you categorize this as expected or unexpected, and what are the future benefits?A: Dan Dickson (CEO) noted that $5 million of the increase is due to overruns from the ball mill installation and recommendations from permitting authorities. The remaining $13 million is for bringing forward projects from 2027, including power substations, a water treatment plant, dry-stack tailings, and new accommodations. These investments are aimed at long-term viability, as the company sees Colpa as a 15-25 year asset, not just the 8 years originally modeled. Q: With throughput higher at Colpa but grades slightly lower, how should we think about grade and unit cost trends going forward?A: Dan Dickson (CEO) stated that grades were relatively flat quarter-over-quarter, with silver down only 2-3%. He expects grades to remain relatively flat for the next six months, with some lower-grade material fed from the open pit when short on tons. The focus is on maintaining steady throughput at the expanded 2,500 tons per day capacity. Q: Should we think of the $70 million VAT refund as additional cash, bringing the balance to $300 million?A: Dan Dickson (CEO) confirmed that this is a fair way to think about it. The company expects to collect the VAT refund in Q3, and it is on track. They have a good track record of collecting VAT in Mexico, and this buildup was primarily due to the Terronera construction. Q: How much of the cash balance is designated for finishing Colpa and Terronera, and what is the rough capital requirement for Pitarrilla?A: Dan Dickson (CEO) stated that the cash balance is not needed for sustaining capital at Terronera or expansion at Colpa, as both operations generate sufficient cash flow. The cash is earmarked for Pitarrilla construction. While the exact capital figure is not yet available from external advisors, management estimates it will be between $500-$600 million, with a mill capacity of 3,500-4,000 tons per day. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Endeavour Silver Corporation? Here are five stocks we like better. Strong second-quarter growth: Endeavour Silver increased production 36% year over year to 3 million silver-equivalent ounces, while revenue rose 150% to $212 million and mine operating cash flow before taxes tripled to $100 million. Higher prices also drove higher costs: All-in sustaining costs increased 47% to $37 per ounce, reflecting greater royalties, mining taxes, profit sharing, labor and supply expenses, as well as Mexican peso appreciation and purchased ore at Guanaceví. Expansion and development remain priorities: Terronera is expected to benefit from higher grades and ramp-up efficiencies in the second half, while Kolpa’s 2026 capital budget rose by $18 million. Endeavour also plans to complete the Pitarrilla feasibility study by the end of the third quarter, with estimated construction costs of $500 million to $600 million. Silver Prices Up, But Endeavour’s Profit Still Elusive Endeavour Silver (NYSE:EXK) reported higher production, record metal sales and a sharp increase in mine operating cash flow during the second quarter, as the Terronera mine continued ramping up and the Kolpa operation achieved higher throughput. Chief Executive Officer Dan Dickson said the company produced nearly 2 million ounces of silver and more than 10,000 ounces of gold during the quarter, totaling 3 million silver-equivalent ounces. Production was 36% higher than in the second quarter of 2025. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Top 3 Silver Picks to Watch as Bull Market Gains Steam Revenue rose 150% year over year to $212 million. Mining operating earnings reached $74 million, compared with $7 million a year earlier, while mine operating cash flow before taxes increased 300% to $100 million. Endeavour recorded adjusted net earnings of $45 million, or $0.15 per share. All-in sustaining costs, net of by-product credits, were $37 per ounce in the quarter, up 47% from the prior-year period. Dickson said higher profitability also raised royalties, purchase-material costs, profit-sharing expenses and mining taxes. → Microsoft Just Flipped the AI Spending Narrative Overnight Direct operating costs per ton increased 14% from the prior-year quarter, partly reflecting the appreciation of the Mexican peso and its effect on inputs. The company also cited cost inflation in labor and supplies. “With increased profitability, we continue to invest in sustaining capital costs,” Dickson said. He added that metal prices can directly affect costs through royalties, mining duties, third-party material purchases and profit-sharing requirements. → Carrier Earnings Could Send the Stock to a New All-Time High At Guanaceví, all-in sustaining costs were also affected by lower grades and increased purchases of third-party ore. Dickson said purchased ore accounted for more than 25% of the operation’s direct costs during the quarter, but the company earns an estimated 30% to 33% margin on such material and views it as a way to extend mine life. The higher metal-price environment has enabled Endeavour to mine lower-grade areas at Guanaceví, according to Dickson. The company expects higher-grade areas to come into production in the near future, while drilling continued in deeper portions of the mine and along the Cruz vein. Terronera’s daily throughput remained consistent during the quarter as the processing plant focused on recoveries. Silver grades were in line with the company’s plan and are expected to rise in the second half as mining moves into higher-grade areas. Dickson said the increase in silver grades is expected to be incremental through July, August and September, though he expects third-quarter grades to exceed second-quarter levels. Gold grades are expected to remain around 2 grams per ton at Terronera, while higher-grade material from La Luz is currently planned for 2027 rather than 2026. The company expects Terronera’s cost per ton to decline during the second half through higher grades and ramp-up efficiencies, including commissioning of its liquefied natural gas plant and development work related to waste handling. The LNG plant was commissioned in June after permitting took longer than anticipated, Dickson said. The delay followed additional emergency-response and storage requirements related to an LNG spill in Mexico City in late 2025. The processing plant was connected to the LNG system by the end of June, while the mine was expected to be connected by mid-August. Exploration drilling restarted at Terronera during the quarter, marking the mine’s first drill program since 2020. The program is intended to better define and expand mineralization along strike and at depth. Endeavour expects to release an updated Terronera resource estimate by year-end but does not plan to issue a new technical study or mine plan. During the first quarter, Kolpa installed and commissioned a three-stage pressure ball mill that increased plant capacity to 2,500 tons per day. Dickson said the operation has run on certain days at between 2,600 and 2,800 tons per day, but further work is needed to support sustained higher throughput. Management increased its 2026 budget by $18 million to advance capital projects, including tailings-storage expansion, a water-treatment plant, power substations and camp upgrades. About $5 million of the increase relates to overruns associated with the ball mill installation and related requirements, while the balance largely reflects projects brought forward from future years, Dickson said. The company is also pursuing a shift from conventional wet tailings to dry-stack tailings at the operation. Dickson characterized most of the spending as one-time investment intended to support the mine’s longer-term viability. Endeavour expects an updated resource and mine plan for the operation by the end of the year. As of June 30, Endeavour held $236 million in cash and $214 million in working capital. Dickson said the company expects to collect approximately $70 million in value-added-tax refunds during the third quarter, primarily related to the Terronera build. The company said operating cash flow from Terronera and Kolpa is expected to cover their ongoing sustaining and expansion spending, leaving its balance-sheet cash and future cash generation primarily available for Pitarrilla. Endeavour expects to complete the Pitarrilla feasibility study by the end of the third quarter. Dickson said management estimates construction costs could fall in a range of $500 million to $600 million, although the final figure will be provided in the study. The contemplated mill capacity is expected to be between 3,500 and 4,000 tons per day. The key gating item for Pitarrilla is permitting for its dry-stack tailings storage facility, Dickson said. The underground mine and processing plant are already permitted. Some of the $48 million budgeted for Pitarrilla this year may shift into 2027 as the feasibility-study timing delays equipment deposits and other spending. Chief Financial Officer Elizabeth Senez said Endeavour has unwound its foreign-exchange hedges related to the construction period but continues to hedge a limited portion of peso-denominated operating costs. The company’s silver collars expired in June, while gold hedges remain in place through June of next year. Senez said Endeavour has no current plans for additional metal hedging. Endeavour Silver Corp. is a Vancouver-based precious metals mining company focused on the acquisition, development and operation of silver and gold properties in Mexico. Publicly listed on the New York Stock Exchange under the ticker EXK, the company has positioned itself as a mid-tier producer with a portfolio of high-grade, operating mines and exploration assets in key mineral belts. Endeavour Silver's core business activities revolve around four principal underground mines located in the states of Durango, Zacatecas, Guanajuato and Jalisco. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Endeavour Silver Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Second quarter performance was characterized by a 36% year-over-year increase in silver equivalent production, driven by the Terronera ramp-up and expanded throughput at Kolpa. Record metal sales and higher silver prices significantly boosted mine operating cash flow, though these same factors increased costs related to royalties, special mining duties, and profit sharing. At Guanacevi, management strategically opted to mine lower-grade zones to extend mine life, accepting higher per-ounce costs in exchange for long-term resource preservation. The appreciation of the Mexican peso exerted upward pressure on direct operating costs per tonne, which rose 14% compared to the prior year period. Terronera's processing plant focused on metal recovery efficiencies during the quarter, with silver grades expected to rise in the second half as mining moves into higher-grade zones. Kolpa's plant capacity reached 2,500 tonnes per day following the commissioning of a new crusher and ball mill, though labor turnover remains a challenge due to competition from informal miners. Management expects an incremental decrease in Terronera's cost per tonne throughout the second half of the year as higher-grade areas are accessed and the LNG plant reaches full connectivity. The 2026 capital budget for Kolpa was increased by $18 million, consisting of $13 million to accelerate infrastructure projects and $5 million to cover cost overruns., including a water treatment plant and power substations, to support long-term viability. The Pitarrilla feasibility study is slated for completion by the end of Q3 2026, with management estimating potential construction costs between $500 million and $600 million. Silver grades at Terronera are projected to increase in Q3 and Q4, while high-grade gold mineralization from the La Luz area is now deferred to the 2027 mine plan to optimize recovery. A $70 million value-added tax refund is expected to be collected in Q3, further strengthening a cash position intended to fund the eventual construction of Pitarrilla. LNG plant commissioning at Terronera was delayed due to stricter permitting requirements following a regional fuel spill, necessitating temporary reliance on diesel gensets for mine operations. All-in sustaining costs (AISC) remain significantly above original guidance due to the direct correlation between higher silver prices and increased third-party ore costs and royalties. The company has transitioned to dry stack tailings at Kolpa to meet Peruvian regulatory recommendations and ensure storage capacity through 2030. Gold price hedges remain in place through June 2027, while all silver collars were successfully unwound as of July 2, 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that while the current cash balance of $236 million is robust, it is primarily earmarked for the development of the Pitarrilla project. Dividends or share buybacks are unlikely to be considered until Pitarrilla is closer to completion, potentially around 2030, once the company achieves greater scale. Purchased ore accounts for over 25% of Guanacevi's costs, but management maintains a 30% to 33% margin on this material. Buying third-party ore is a strategic requirement to maintain community relations and fulfill historical agreements while extending the mine's operational life. Management intentionally delayed processing high-grade ore to avoid losing metal to tailings while the plant's recovery circuits were being fine-tuned. Silver grades are expected to show incremental increases throughout the second half of the year, specifically from July through September. as development reaches the northwest plunging high-grade shoot. The primary gating item for Pitarrilla is the permitting of the tailings storage facility, though the underground mine and plant are already permitted. Spending on the project is currently behind budget as management awaits the feasibility study results and permitting progress before committing to long-lead equipment deposits.

Endeavour Silver (EXK) came out with quarterly earnings of $0.15 per share, in line with the Zacks Consensus Estimate . This compares to a loss of $0.03 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this silver mining company would post earnings of $0.1 per share when it actually produced earnings of $0.21, delivering a surprise of +110%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Endeavour Silver, which belongs to the Zacks Mining - Silver industry, posted revenues of $212.1 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.33%. This compares to year-ago revenues of $85.3 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Endeavour Silver shares have lost about 17.6% since the beginning of the year versus the S&P 500's gain of 8.5%. While Endeavour Silver has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Endeavour Silver was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.17 on $217.38 million in revenues for the coming quarter and $0.64 on $807.32 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Mining - Silver is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Avino Silver (ASM), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.06 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 30% lower over the last 30 days to the current level. Avino Silver's revenues are expected to be $31.3 million, up 43.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Endeavour Silver Corporation (EXK) : Free Stock Analysis Report Avino Silver (ASM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research