Endeavour Silver Corp. Q2 2026 Earnings Recap

Shares fell 1.1% after the quarter despite solid production and revenue gains, reflecting investor concerns about significant cost pressures and cautious near-term margin outlook rather than operational execution.

Key Takeaways

• Production increased 36% year-over-year to nearly 2 million ounces of silver and over 10,000 ounces of gold, totaling 3 million silver equivalent ounces.
• Revenue rose 150% to $212 million, with mine operating earnings improving to $74 million and mine operating cash flow reaching $100 million before taxes—a 300% jump from the prior year.
• All-in sustaining costs increased 47% to $37 per ounce, driven by higher royalties, purchased materials, profit sharing, and mining taxes, as well as input cost inflation from Mexican peso appreciation.
• Capital expenditures accelerated, including an $18 million increase to the Kolpa 2026 budget to expedite expansion and infrastructure projects, pressuring near-term cash flow.
• Management anticipates incremental cost reductions at Terronera in H2 as higher-grade zones come online and operational efficiencies improve, but full benefits are still pending.