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Financial Performance //

Why It Matters

Maintaining and growing our profits is key to both generating shareholder returns and financing the long-term capital investments needed to sustain our mining operations. Our employees, shareholders, suppliers and host communities are all interested in and impacted by our profitability. For example, when our company performs well financially, we can offer more training, better security and better compensation to our employees and contractors. In some Mexican communities, this is especially important because mining is one of the few economic opportunities available for local people.

Management Approach

Financial health

We strive to foster the conditions requisite for a financially healthy business that is sustainable over the long term. To achieve that, our business strategy balances short-term profitability with long term investments in exploration and development programs, aimed at extending our existing mine lives and building new mines to fuel future growth.

Creating value

We believe that our financial success combined with our broader focus on economic, social and environmental sustainability reinforce one another. For this reason, we are committed to simultaneously creating value for shareholders, employees, contractors, communities and society as a whole. For more details about our management approach around economic parameters, please see the Governance and About Endeavour sections of this report.

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Our Performance In 2017

  • We reported strong growth in net earnings in 2017, up 148% to $9.7 million or $0.08 per share.
  • Mine operating earnings were $28.5 million on gross realized revenue of $150.5 million, a 4% decrease from $156.8 million the previous year.
  • EBITDA decreased 8% to $25.6 million, while cash costs increased 19% to $8.06 per oz silver payable (net of gold credits). There was no outstanding debt as of December 31, 2017.
  • All‑in sustaining costs increased 36% to $16.96 as a result of higher cash operating costs, and management significantly increasing sustaining capital investments for the long-term benefit of Guanaceví and El Cubo.
  • We reduced our operating costs during the year and expect to continue that trend into 2018.
  • We were successful in advancing our pipeline of exploration and development projects to fuel our next phase of organic growth. Exploration expenses grew in 2017 to $12.9 million from $10.4 million the previous year.
  • For our total economic value generated and distributed in 2017, please see the Local Economic Impacts section.

2018 Priorities

  • All-in sustaining costs (AISC), net of gold by-product credits, in the range of $15-16/oz
  • Consolidated direct operating costs in the range of $80-85/tonne
  • Cash costs, net of gold by-product credits, in the range of $6-7 per ounce
  • Finalize Terronera studies and obtain financing