Endeavour Silver Corp.

Endeavour reported Q2 2026 revenue of $212 million, up 150% year over year, with mine operating earnings of $74 million versus $7 million in Q2 2025. Mine operating cash flow was $100 million before taxes, up 300% year over year, and adjusted net earnings were $45 million, or $0.15 per share. Production was nearly 2 million ounces of silver and over 10,000 ounces of gold, totaling 3 million silver equivalent ounces, which was 36% higher than Q2 2025. AISC net of by-product credits was $37 per ounce, up 47% year over year. For guidance, management said it has not changed AISC guidance despite higher realized prices and costs, and it expects Terronera silver grades to increase in Q3 and through the second half, while gold grades should hover around 2 grams and higher-grade gold is more of a 2027 plan. Kolpa’s 2026 budget was increased by $18 million, cash was $236 million and working capital was $214 million at June 30, and the company expects to collect about $70 million of VAT refunds in Q3. Pitarrilla’s feasibility study is expected by the end of Q3, with management’s current estimate of build capital around $500 million to $600 million and a mill size of 3,500 to 4,000 tonnes per day.

Dan Dickson framed the quarter as evidence that the company’s operating base is strengthening, highlighting record metal sales, better cash generation and a balance sheet that can support growth. He stressed that Terronera’s ramp-up, Kolpa’s higher throughput and Pitarrilla’s study are the main pillars of the next phase, and he repeatedly pointed to second-half improvement in grades and efficiency. His tone was upbeat and confident, but pragmatic about ongoing permitting, ramp-up timing and capital allocation.

Elizabeth Senez said the company is still hedging foreign exchange for peso-denominated operating costs, mainly at Guanacevi and Terronera, but has not added any peso hedges in the last 3 months because the book is already healthy. She noted that all silver collars were unwound in June and paid out on July 2, while gold hedges remain in place through the end of June next year, and said there are no plans for further metal hedging right now. On the balance-sheet side, management highlighted $236 million of cash, $214 million of working capital and an expected $70 million VAT recovery in Q3, with that cash intended to support Pitarrilla rather than Terronera or Kolpa maintenance needs.

Analysts focused on Terronera grades and whether higher-grade zones would drive an immediate step-up; Dan said the silver grade improvement should be incremental through July to September, while higher-grade gold from La Luz is not really in the 2026 plan. Questions also pressed on AISC pressure, where management pointed to higher silver prices, royalties, purchased ore, and inflation, and said guidance has not been changed even though current AISC is above plan. There were also questions about Kolpa spending and Pitarrilla timing, and management explained that much of the added Kolpa capex is one-time or pulled forward for long-term viability, while Pitarrilla’s key gating issue is permitting for the tailings storage facility and the feasibility study is expected at the end of Q3.