Endeavour Silver’s Q2 Revenue Jumps 149% on Higher Output and Prices
Endeavour Silver Corp. (NYSE: EXK; TSX: EDR) reported second-quarter revenue of US$212.1 million, a 149% surge from US$85.3 million a year earlier, as silver production rose 31% to 1.94 million ounces and gold output climbed 35% to 10,474 ounces. The company sold 2.05 million ounces of silver at an average realized price of US$70.16 per ounce, up sharply from US$32.95 in Q2 2025, and 10,823 ounces of gold at US$4,305 per ounce.
Mine operating cash flow before taxes skyrocketed 336% to US$99.9 million, while net earnings swung to US$66.5 million from a US$20.5 million loss. The strong performance was driven by higher throughput at the Kolpa mine in Peru and ongoing ramp-up at the new Terronera mine in Mexico.
Cash Costs Rise on Royalties and Stronger Peso, But Analysts See a Cleaner Picture
Consolidated cash costs rose to US$23.52 per silver ounce, net of by-product credits, from US$15.35 a year earlier, mainly due to higher metal prices boosting royalties and third-party material costs. All-in sustaining costs (AISC) increased to US$36.89 per ounce from US$25.16. However, H.C. Wainwright analysts Heiko Ihle and Case Bongirne argued that the consolidated AISC “significantly misrepresents” the company’s cost structure. Excluding the higher-cost Guanaceví mine, Terronera and Kolpa operated at a blended US$27.93 per ounce, nearly US$9 below the reported figure. They reiterated a Buy rating and US$17.00 price target, expecting AISC to decline as Terronera reaches full production.
Production Growth and Balance Sheet Strength Support Expansion Plans
Endeavour ended the quarter with US$236.6 million in cash and US$214.4 million in working capital, providing a solid foundation for growth. Growth capital spending fell to US$8.9 million in Q2 from US$45.4 million a year earlier, while sustaining capital rose to US$37.0 million as Terronera transitioned to operations. The company’s 2026 guidance calls for 8.3-8.9 million ounces of silver and 46,000-48,000 ounces of gold, with total silver-equivalent production of 14.6-15.6 million ounces. Key near-term catalysts include the Pitarrilla feasibility study expected in Q3 2026 and continued throughput increases at Kolpa.
Terronera processed 175,729 tonnes in Q2, producing 1.30 million silver-equivalent ounces, with the LNG plant commissioned in June and ramp-up continuing through Q3. Kolpa processed 233,408 tonnes, up 36% from Q1, producing 1.18 million silver-equivalent ounces. Silver prices have remained volatile, trading between US$56.62 and US$60.09 in early August, with analysts noting that higher real interest rates and Federal Reserve policy are key drivers.
Watch for Endeavour’s Q3 production results, due in late October, to confirm whether Terronera’s ramp-up delivers the expected cost decline and whether Kolpa sustains its higher throughput. A drop in consolidated AISC toward the US$27-28 guidance range would validate the analyst view and support the stock’s re-rating.
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