🕐24.03.10 - 14:34 Uhr
Endeavour Silver Reports Record Financial and Operating Results in 2009
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Re: News - Wednesday, March 24, 2010
Endeavour Silver Reports Record Financial and Operating Results in 2009
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Vancouver, Canada - March 24, 2010 - Endeavour Silver Corp.
(EDR: TSX;
EXK: NYSE-Amex; EDR.WT; EJD: DB-Frankfurt) announced today record
financial and operating results for the fourth quarter and fiscal year
ended December 31, 2009.
For the fifth consecutive year, Endeavour set
new Company standards for silver and gold production, reserves and
resources.
The financial results are expressed in US dollars ("US$") and are based
on Canadian generally accepted accounting practices (Canadian "GAAP").
For a more detailed review, shareholders are referred to the 2009
Audited Financial Statements, Management Discussion and Analysis
("MD&A") and Annual Information Form ("AIF") at the Companys website,
www.edrsilver.com or on the SEDAR website, http://www.sedar.com/ and to
the SEC Form 40F filed on EDGAR at http://www.sec.gov/edgar.shtml.
Highlights Fiscal Year 2009 (Compared to Fiscal Year 2008)Highlights
Fourth Quarter 2009 (Compared to Fourth Quarter 2008)Bradford Cooke,
Chairman and CEO, commented, "We are gratified to report that Endeavour
delivered another year of record financial and operating performance in
2009.
Sales revenues were up for the fourth consecutive year thanks
not only to our rising silver and gold production and higher precious
metal prices, but also due to our metal sales strategy which beat the
market average by 5%.
Cash costs fell and profit margins rose for the
second year in a row with EBITDA turning positive for the first time in
Endeavours five year operating history.
Clearly, our capital
expansion programs continue to bear fruit."
"The Company successfully opened two new mines during the year, one in
each of our two operating districts, Guanacevi and Guanajuato, thereby
facilitating the next phase of growth at both operations.
New high
grade silver-gold discoveries were made in both Guanacevi and
Guanajuato, thereby confirming once again the prolific exploration
potential of these two historic mining districts.
New property
acquisitions helped Endeavours exploration performance in 2009 and
should do so again this year."
"In 2010, management is forecasting Endeavours sixth consecutive year
of growing silver production, up another 20% to the 3.1 million oz
range.
Cash costs are expected to drop into the US$5.50 per oz range.
Assuming a US$16 average silver price in 2009, Endeavour should
generate in the order of US$31 million in mine operating cash-flow this
year."
To view a video of Chairman Bradford Cooke and his commentary on these
results, click here:
http://www.edrsilver.com/i/video/pressreleases/2010-03-24.html.
Financial Results (Consolidated Statement of Operations appended below)
For the year ended December 31, 2009, the Company generated Sales
Revenues totalling $50.8 million (2008 - $39.3 million) at an average
sale price of $15.49 per oz (2008 - $14.51 per oz) on its silver
production.
After Costs of Sales of $29.5 million (2008 - $27.8
million), Mine Operating Cash-flows amounted to $21.3 million (2008 -
$11.5 million) from its mining and milling operations in Mexico.
After
Depreciation and Depletion of $11.3 million (2007 - $8.4 million), Mine
Operating Earnings were $10.0 million (2008 -- $3.1 million) in 2009.
Operating Earnings were break-even (2008 - $12.9 million loss) and the
Company incurred a Net Loss for the year ended December 31, 2009 of
$1.9 million (2008 - $18.0 million).
Cash costs were $6.04 per oz
silver produced (2008 - $9.03), net of gold by-product credits.
Endeavour invested US$18.0 million on capital projects in 2009,
including US$12.3 million on mine development, US$1.4 million on plant
improvements and US$4.3 million on equipment, vehicles and buildings.
The main focus was on Guanacevi ($12.4 million) where over 4 km of mine
development was completed, including the new Porvenir Dos mine, 50%
advancement of the Santa Cruz access ramp, and the North Porvenir pump
station, electrical substations and ventilation raise.
At Guanajuato,
capital expenditures ($4.7 million) focused on the development of the
Lucero and Bolanitos mines, including over 2.7 km of mine development
and installing a new cone crusher to increase by 20% the capacity of
the plant.
Endeavour is well-positioned for both organic and acquisition growth in
2010, with year-end working capital of $38.8 million, including $26.7
million in cash and cash equivalents.
Working capital and 2010 mine
operating cash flows will be used to complete an aggressive 2010
capital program to push mine development ($16.0 million), expand the
crushing circuit at Guanacevi to 1,200 tonne per day ($6.0 million) and
upgrade our fleet of mining equipment ($7.0 million).
The Company
expects that 2010 will be the last year of major capital investments
needed to run both operations at capacity.
Operating Results (Consolidated Table of Operations appended below)
In 2009, Endeavour achieved two important milestones in its silver
mining operations: the Company recorded its fifth consecutive year of
growing silver production, up 11% from 2008 to 2,572,534 payable ounces
(oz) silver; and cash costs declined for the second consecutive year,
down 33% to $6.04 in 2009.
Like 2008, silver production in 2009 was relatively flat in the first
two quarters, as management focused primarily on the capital investment
programs at the Guanacevi Mines in Durango State, and the Guanajuato
Mines in Guanajuato State.
As a result of completing the capital
projects, consolidated silver production rose from approximately
573,000 oz in Q1, 2009 to approximately 779,000 oz in Q4, 2009.
Consolidated cash operating costs of production fell from US$7.56 per
oz silver in Q1, 2009 to US$4.96 per oz silver in Q4, 2009.
At Guanacevi, plant throughput increased from 570 tpd in Q1, 2009 to
770 tpd in Q4, 2009.
Silver grades remained relatively constant in
2009, around 322 grams per tonne (gpt) silver, but gold grades
increased significantly to 0.80 gpt gold compared to previous years..
At Guanajuato, plant throughput rose 60% year over year to 492 tpd,
operating on a 6 day work week, with Q4 throughput achieving 565 tpd as
the plant benefitted from the new cone crusher.
Ore grades increased to
187 gpt silver and 2.13 gpt gold in 2009.
Exploration Results
In 2009, Endeavour drilled approximately 18,000 meters in 61 drill
holes, made two new high grade silver-gold discoveries and
substantially increased the Companys reserves and resources.
Please
visit Endeavours website or refer to the Companys March 3rd, 2010
press release for December 31, 2009 updated reserves and resources
table and for more information on the 2009 exploration program and 2010
exploration outlook refer to the Companys January 26, 2010 press
release.
2010 Outlook
In 2010, Endeavour expects to deliver its sixth consecutive year of
silver production growth, up by about 20% to the 3.1 million oz range
with approximately 15,000 oz gold as a by-product.
Similar to 2009, the
first two quarters of silver production are scheduled to be relatively
flat, as we focus on mine development and capital programs.
However,
silver production is scheduled to increase in Q3 and Q4 as the new
ore-bodies under development during the first half of the year enter
into production in the second half.
Cash costs should continue to
decline to the $5.50 per oz range.
Management has planned one more year of major capital investments
totalling $29 million in order to unfold the full production capacities
at Guanacevi and Guanajuato.
Thereafter, capital requirements at both
mining operations should decline to sustaining levels.
Upon completion
of the 2010 capital expansion projects, the Guanacevi mines production
is scheduled to reach 1,000 tonnes per day (tpd), and the Guanajuato
mines production is scheduled to reach 600 tonnes per day (tpd).
The
final phase of organic growth currently planned for Guanacevi and
Guanajuato should see the mine and plant capacities rise to 1,200
tonnes per day (tpd) at Guanacevi and 800 tonnes per day (tpd) at
Guanajuato in 2011-2012.
In 2010, the Company will strive once again to replace reserves and
expand resources at both mining operations.
An aggressive 36,000
meter, 125-hole exploration drill program will be focused on following
up on the new discoveries in both districts, testing several new
prospective targets within these two districts, and exploring
properties acquired in new districts.
A telephone conference call to discuss the results will be held at
11:00 AM PDT (2:00 PM EDT) on Thursday, March 25, 2010.
To participate
in the telephone conference call, please dial the following:
• 877-240-9772 Canada and USA (Toll-free)
• 416-340-8530 Toronto area callers
• No pass-code is necessary
A replay of the conference call will be available by dialing
1-800-408-3053 in Canada & USA (Toll-free) or 416-695-5800 in the
Toronto area.
The required pass-code is 6732642.
A podcast and
simultaneous webcast of the conference call will be available on the
home-page of the companys website, www.edrsilver.com.
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 and resource growth.
The organic
expansion programs now underway at Endeavours two silver mines in
Mexico combined with its strategic acquisition program should help
Endeavour achieve its goal to become the next premier mid-tier primary
silver producer.
ENDEAVOUR SILVER CORP.
Per:
/s/ "Bradford J.
Cooke"
BRADFORD COOKE
Chairman and CEO
For more information, please contact Hugh Clarke at Toll free:
877-685-9775, tel: (604) 685-9775, fax: (604) 685-9744, email
or visit our website, www.edrsilver.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the
meaning of the United States private securities litigation reform act
of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation.
Such forward looking
statements and information herein include, but are not limited to,
statements regarding Endeavours anticipated performance in 2009,
including silver and gold production, timing and expenditures to
develop new silver mines and mineralized zones, silver and gold grades
and recoveries, cash costs per ounce, capital expenditures and
sustaining capital and the use of proceeds from the Companys recent
financing.
The Company does not intend to, and does not assume any
obligation to update such forward-looking statements or information,
other than as required by applicable law.
Forward-looking statements or information involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, level of activity, performance or achievements of Endeavour
and its operations to be materially different from those expressed or
implied by such statements.
Such factors include, among others:
fluctuations in the prices of silver and gold, fluctuations in the
currency markets (particularly the Mexican peso, Canadian dollar and
U.S.
dollar); changes in national and local governments, legislation,
taxation, controls, regulations and political or economic developments
in Canada and Mexico; operating or technical difficulties in mineral
exploration, development and mining activities; risks and hazards of
mineral exploration, development and mining (including environmental
hazards, industrial accidents, unusual or unexpected geological
conditions, pressures, cave-ins and flooding); inadequate insurance, or
inability to obtain insurance; availability of and costs associated
with mining inputs and labour; the speculative nature of mineral
exploration and development, diminishing quantities or grades of
mineral reserves as properties are mined; the ability to successfully
integrate acquisitions; risks in obtaining necessary licenses and
permits, and challenges to the companys title to properties; as well
as those factors described in the section "risk factors" contained in
the Companys most recent form 40F/Annual Information Form filed with
the S.E.C.
and Canadian securities regulatory authorities.
Although the
Company has attempted to identify important factors that could cause
actual results to differ materially from those contained in
forward-looking statements or information, there may be other factors
that cause results to be materially different from those anticipated,
described, estimated, assessed or intended.
There can be no assurance
that any forward-looking statements or information will prove to be
accurate as actual results and future events could differ materially
from those anticipated in such statements or information.
Accordingly,
readers should not place undue reliance on forward-looking statements
or information.
VIEW FOUR (4) ENDEAVOUR SILVER CORP.
CONSOLIDATED STATEMENTS / TABLES:
http://www.edrsilver.com/i/pdf/2010-03-24_NR_RFOR.pdf
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View News Release in PDF Format:
http://www.edrsilver.com/i/pdf/2010-03-24_NR_RFOR.pdf
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13 seconds to download at 56.6Kbps
You can also view this News Release on our website at:
http://www.edrsilver.com/s/NewsReleases.asp?ReportID=390637
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Copyright (c) 2010 ENDEAVOUR SILVER CORP.
(EDR) All rights reserved.
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