Silver and gold mining company Endeavour Silver Corporation (TSX: EDR) (NYSE Amex: EXK) (DBFrankfurt: EJD) has released its second quarter financial results today, reporting an increase in revenues by 140% to $19.7 million from the same period last year as a result of sharply higher mineral production and metal prices, while EBITDA was up by a whopping 250% to $4.9 million. Mine operating cash flows also increased 263% to $9.4 million.
Endeavour owns and operates two high-grade, underground, silver-gold mines in Mexico: the Guanacevi Mines in Durango State and the Guanajuato Mines in Guanajuato State.
For the quarter, silver production climbed 41% to 826,439 ounces and gold jumped 61% to 4,460 ounces. Cash costs fell 15% to $5.94 per ounce of silver produced (net of gold credits) due to higher plant throughputs at Guanacevi, higher gold production and gold prices, which were partially offset by the appreciation of the Mexican peso.
The company sold 772,126 silver ounces and 4,389 gold ounces at average realized prices of $18.65 per ounce and $1,205 per ounce respectively.
"Endeavour Silver's financial and operating performance continued to shine in Q2, 2010 thanks to rising silver-gold production, falling cash costs and higher metal prices. As a result, Company revenues, cash-flow, EBITDA and earnings were all sharply higher in Q2, 2010 compared to Q2, 2009. Add to that our recent exploration success at Lucero South and the acquisition of the new Belen properties in Guanajuato and it is safe to say Endeavour enjoyed a good second quarter," said chairman and CEO Bradford Cooke.
The company made capital investments totalling $7.9 million in property, plant and equipment during Q2 to ensure the continued development of the Santa Cruz and Porvenir Cuatro access ramps, and the expansion of the crushing and other plant circuits at Guanacevi. At Guanajuato, mine development continued on the south extensions of the Lucero and Bolanitos veins, and work commenced on the new Lucero South access ramp.
At 30 June 2010, Endeavour held cash and cash equivalents of $21.4 million and working capital totalled $41.6 million, up from $38.8 million at the end of 2009. The mining company expects its financial performance in Q3 this year to reflect slightly lower anticipated silver and gold bullion prices, a modest increase in production and slightly lower cash costs.
Silver production is expected to rise in the last two quarter of this year, as the new ore-bodies under development during the first half of the year at Guanacevi and Guanajuato enter into production. Upon completion of the 2010 capital expansion projects, the Guanacevi mines production is scheduled to reach 1,000 tonnes per day and the Guanajuato mines production is scheduled to reach 600 tonnes per day.
"Management remains focused on both organic and acquisition growth in the third quarter. Our exploration programs are progressing well, on time and below budget. Drill results for the Guanajuato, Parral and Arroyo Seco projects should be released in Q3, 2010. Drilling will also get underway at Guanacevi and El Toro during the third quarter. We continue to evaluate a number of interesting acquisition opportunities," added Cooke.
Endeavour Silver Corp. is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted five consecutive years of aggressive silver production, reserve and resource growth.
The company`s stock went up almost 0.6% on the back of the news to $3.56.