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2018 Outlook //

Resuming Production Growth & Lowering Costs

We expect 2018 will be the beginning of a new phase of growth for Endeavour Silver and are forecasting a 20% increase in silver equivalent production as compared to 2017. We are forecasting higher silver and gold production at all three existing mines as well as initial production from our new fourth mine at El Compas in Q2, with commercial production scheduled for the end of July.

With the higher forecast production, cash costs and all-in sustaining costs are expected to decline in 2018 compared to 2017. The 2018 capital budget will increase from 2017 due to the development of the new El Compas mine, and two new high grade orebodies at Guanacevi, whereas the exploration budget will decrease as the focus shifts towards more development activities this year.

Higher Production, Lower Costs in 2018

$ millions unless otherwise stated, Guanacevi Bolanitos El Cubo El Compas (1) Consolidated
Silver Production (M oz) 2.2 – 2.5 1.0 – 1.1 2.5 – 2.7 0.1 - 0.1 5.8 – 6.4
Gold Production (K oz) 5.0 – 5.5 23.5 – 25.5 22.5 – 24.5 7.0 – 8.5 58.0 – 64.0
Silver Eq Production (M oz) (2) 2.6 – 2.9 2.8 – 3.0 4.2 – 4.5 0.6 – 0.8 10.2 – 11.2
Cash Costs, net of gold by-product credits (US$/oz) (3), (4)



$6.00 - $7.00
AISC, net of gold by-product credits
(US$/ oz) (3), (4)




$15.00 - $16.00
Sustaining Capital



$41.1
Growth Capital



$7.3
Exploration Budget



$11.1
  1. El Compas is scheduled to achieve commercial production by the end of July 2018.
  2. Gold ounces converted to silver equivalent ounces on a 75:1 ratio in 2018.
  3. Cash costs per ounce and AISC per ounce are examples of Non-IFRS measures. See disclosure in quarterly MD&A for information on “Non-GAAP” measures found on the company website.
  4. See EDR News Release dated January 25, 2018 for full disclosure on 2018 Guidance; 2018 costs forecasts reflect an 19:1 Mexican Peso per US Dollar exchange rate, $17/ oz Ag & $1,275/ oz Au price assumption.