VANCOUVER - Endeavour Silver (NYSE:EXK) Corp. (NYSE: EXK; TSX: EDR), a mid-tier precious metals mining company, has announced its consolidated production and cost guidance for 2024, along with its capital and exploration budgets. The company anticipates silver production to range from 5.3 to 5.8 million ounces and gold production to be between 34,000 to 38,000 ounces. Silver equivalent production is forecast to total between 8.1 million and 8.8 million ounces.
Consolidated cash costs and all-in sustaining costs (AISC) in 2024 are estimated to be $14.00-$15.00 per ounce of silver and $22.00-$23.00 per ounce of silver, respectively, net of gold by-product credits. These figures are slightly higher for cash costs and slightly lower for AISC compared to 2023, mainly due to a reduction in gold production and a lower estimated gold price.
Dan Dickson, CEO of Endeavour, cited escalating costs as an ongoing challenge, with the stronger local currency and inflationary pressures on essential inputs like labor and materials impacting the bottom line. Despite these challenges, the company remains committed to safety and shareholder value, with a focus on completing construction at the Terronera Project within the year.
In terms of sustaining capital investments, Endeavour plans to invest $30.0M at its two operating mines, which is expected to be funded by operating cash flow. The largest investment will be at the Guanaceví mine, with $21.2M allocated to various capital projects, including significant mine development. Bolañitos will see an investment of $8.8M, mainly for mine development to access resources.
The company also announced a 2024 exploration budget of $8.7M, drilling 18,000 meters across its properties, with a significant portion allocated to advancing the Pitarrilla project. Additionally, Endeavour has budgeted for economic studies and targeting programs in other locations, with some expenditures subject to Board approval later in the year.
Management's cost forecasts for 2024 are based on assumptions of a $23 per ounce silver price, a $1,840 per ounce gold price, a 17:1 Mexican peso per US dollar exchange rate, and a 5% Mexican annual inflation rate.
This news is based on a press release statement from Endeavour Silver Corp . and contains forward-looking statements regarding the company's anticipated performance in 2024, including production levels and costs. The company's actual results may differ due to various risks and uncertainties.
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