Endeavour Silver Corp. · TSX:EDR
Endeavour Silver — Investor Presentation (October 2022)
47 slides from Endeavour Silver's investor presentation, October 2022
Slide 1: Growth on the Horizon
Growth on the Horizon October 2022 TSE: EDR | NYSE: EXK TSX: EDR | NYSE: EXK www.edrsilver.com
Slide 2: Cautionary Note
Cautionary Note This presentation contains “forward-looking statements” within the meaning of the United States private securities litigation reform act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements and inf
Slide 3: Investor Highlights
Investor Highlights MID-TIER STRONG SIGNIFICANT DISCOVERING LEADING STRATEGICALLY SILVER FINANCIAL ORGANIC NEW SILVER ACQUIRING KEY PRODUCER POSITION GROWTH OREBODIES LEVERAGE ASSETS Two high grade, Clean balance Best organic Track record of Pure precious Opportunistic underground sheet, minimal gro
Slide 4: 2022 Outlook – Portfolio Focused in Mexico
2022 Outlook – Portfolio Focused in Mexico Bruner Project Nevada, USA Guanacevi Mine Paral Project Durango State, Mexico Chihuahua State, Mexico Bolañitos Mine Pitarrilla Project Guanajuato State, Mexico Durango State Mexico 2022 IMPROVED CONSOLIDATED OUTLOOK (3) Terronera Project Jalisco State, Mex
Slide 5: 2021 Sustainability Highlights
2021 Sustainability Highlights PEOPLE PLANET BUSINESS 44 50% 93% 54,750 100% 98.8% Average training of employees had access water recycling and trees planted in of our employees completed of our procurement was hours provided to to free mental health reuse rate in our reforestation projects, with tr
Slide 6: 3-Year Sustainability Strategy
3-Year Sustainability Strategy Our Sustainability Strategy 2022-2024 centers on three main pillars - people, planet and business - and sets out our priorities in these areas over the next three years. Increase positive social impacts for people: • Achieve zero fatalities and reduce accident rate 1 •
Slide 7: Recent Highlights
Recent Highlights STEADY FOCUS ON SAFETY IMPROVEMENT • Both LTI frequency & LTI severity rates continued to trend down since 2020 • Guanacevi surpassed 2.5 million hours without a single lost time injury Guanacevi 71% Bolanitos 29% YTD PRODUCTION AHEAD OF PLAN; IMPROVED GUIDANCE • Q3 2022: 1,458,448
Slide 8: Guanacevi Mine
Guanacevi Mine Durango 80% Ag 20% Au 2022 Mine Plan, Metals Mix • Production – 2005 - 2021: 42.5M oz Ag, 100.8k oz Au – Q2 2022: 1.2M oz Ag, 3.7k oz Au • Improved performance bolstered by higher grades and throughput • LOM + 7 years • Reserves(1) : 1.1 million tonnes at 475 g/t AgEq TSX: TSX: contai
Slide 9: Guanacevi - Strong Production in Q3 2022
Guanacevi - Strong Production in Q3 2022 Q3 2022 PRODUCTION AgEq Quarterly Production (oz)(1) Production on plan driven by high grades in the El Curso area. Throughput was slightly lower than plan due to rainfall in September. 1,612,741 1,623,550 1,462,568 1,412,010 1,488,550 IMPROVED MINE PLAN Mini
Slide 10: Guanacevi – Delivering Record High Grade Drill Results
Guanacevi – Delivering Record High Grade Drill Results PROLIFIC AREA CONTINUITY TO THE EAST POTENTIAL Situated along prolific Intersecting excellent Connecting El Curso to One continuous orebody Santa Cruz vein 15 km results with step holes Porvenir Dos - comparable to original long, producing in ar
Slide 11: Bolanitos Mine
Bolanitos Mine Guanajuato 80% Au 20% Ag 2022 Mine Plan, Metals Mix • Production – 2007 - 2021: 16.1M oz Ag, 317k oz Au – Q2 2022: 0.2M oz Ag, 5.6k oz Au • Improved operational and financial performance • Reserves(1) : 513k tonnes at 236 g/t AgEq containing 3.9 million AgEq oz TSX: • TSX: M&I Resourc
Slide 12: Bolanitos – Maintaining Steady Performance
Bolanitos – Maintaining Steady Performance DEVELOPING NEW ORE BODIES AgEq Quarterly Production (oz)(1) Focused on developing Belen vein and expanding production from Melladito vein; both new areas have multiple drill targets 621,083 581,418 598,545 613,777 570,418 Q3 2022 PRODUCTION Strong silver pr
Slide 13: Terronera Project
Terronera Project Jalisco 60% Ag 40% Au 2020 Reserve, Metals Mix • Endeavour’s next operating asset • Acquired option to purchase in 2010 • Invested $30+ million on project to complete: • 6 technical reports • 105,000+ meters in drilling • 2 defined ore bodies: • Terronera vein TSX: TSX: • La Luz ve
Slide 14: Terronera – A Unique Opportunity in the Silver Mining Industry
Terronera – A Unique Opportunity in the Silver Mining Industry LARGE, HIGH GRADE UG MINE POTENTIAL ~ 100% ORGANIC GROWTH IN 2 YEARS • Endeavour’s largest mine and next operating asset • Construction ready subject to financing, receipt of amended permits and board approval EXPECTED TO NEARLY DOUBLE P
Slide 15: Terronera – Robust Project Economics
Terronera – Robust Project Economics Royalty Operating & Financial Metrics(2) 2021 FS(1) $4.46 LOM tonnes processed (thousands) 7,380 TCRC Life of Mine (Years) 12 $15.25 Mining Costs Average silver grade (g/t) 197 $30.96 Total Cost Average gold grade (g/t) 2.25 G&A $87.05 Silver equivalent grade (g/
Slide 16: Terronera – 2021 FS Base & Spot Case Highlights
Terronera – 2021 FS Base & Spot Case Highlights FS BASE FS SPOT 3.3 million oz silver and 33,000 CASE CASE oz gold Silver price (oz) $20.00 $24.00 LOM Annual Production Gold price (oz) $1,574 $1,800 12-year mine life with 5.9 million Gold: silver ratio 79:1 75:1 oz Ag Eq at 374 gpt NPV (5% after-tax
Slide 17: Terronera - Doubles Production Profile
Terronera - Doubles Production Profile Exploration Opportunities Years 1 – 4 Along Strike and at Depth Average AgEq annual production of 7.5M oz Elevated grade of 456 g/t AgEq Terronera Vein La Luz is almost TSX: EDR | NYSE: EXK La Luz Vein entirely high grade and will be mined early Silver equivale
Slide 18: Terronera - Exploration Opportunities
Terronera - Exploration Opportunities TERRONERA PROJECT SURFACE VIEW WITHIN RESOURCE FOOTPRINT • Endeavour controls 25 concessions totaling 20k hectares • 2 defined ore bodies: Terronera & La Luz – open to • +50 mines on +50 known veins surface & at depth • Thick veins widths averaging 1-30 meters t
Slide 19: Terronera – Early Project Timeline
Terronera – Early Project Timeline PROJECT MANAGEMENT TEAM • Significant global construction & operating experience • Escobal Mine, Guatemala MILESTONES(1) H2 21 H1 22 H2 22 H1 23 H2 23 H1 24 • Buritica Mine, Colombia • Engaging with local government and state ministries to align sustainability obje
Slide 20: Terronera - Operating Cost Comparison
Terronera - Operating Cost Comparison $ TERRONERA EST. LOM CASH COSTS(1) VS. OPERATING PEER GROUP(2) 40.00 28.64 25.43 30.00 22.59 24.54 19.56 20.09 20.9 16.73 16.99 17.5 20.00 13.38 13.94 9.48 9.5 9.89 10.03 10.04 11.02 11.34 5.58 5.63 5.77 6.23 10.00 -58.23 -46.6 -24.83 -23.53 -22.59 -19.29 -7.23
Slide 21: Pitarrilla Project
Pitarrilla Project, Durango 60% Ag 40% Pb, Zn Resource metals mix • Acquired from SSR Mining in July 2022 • Silver dominant project with extensive historical database and comprehensive work completed to date : • SSR invested $140 million to advance the project since 2002 TSX: TSX: • +225,000 metres
Slide 22: Pitarrilla – One of the World’s Largest Undeveloped Silver Projects
Pitarrilla – One of the World’s Largest Undeveloped Silver Projects ENHANCES ORGANIC GROWTH PROFILE ORGANIC GROWTH POTENTIAL • • Complimentary to regional existing platform in Mexico Provides both open pit and underground optionality SUPPORTED BY LARGE RESOURCE • Maintains growth portfolio geared to
Slide 23: Pitarilla – Opportunity & History of the Project
Pitarilla – Opportunity & History of the Project Focus pivots to expanding resources with evaluation of open-pit SSR shifts focus of the project to reducing initial concepts following surge in silver price capex and maximizing returns Pre-feasibility study published, Feasibility study Scoping study
Slide 24: Parral Project
Parral Project, Chihuahua 10% 90% Ag other Resource metals mix • Acquired Parral from SSR Mining in 2016 • Located in prolific silver mining district • 4 distinct mineralized vein systems • Veta Colorado • San Patricio • Palmilla • Cometa TSX: TSX:EDR EDR| NYSE: | NYSE: EXK EXK 24
Slide 25: Parral – Potential Core Asset
Parral – Potential Core Asset SURFACE VIEW – 4 MINERALIZED AREAS HISTORIC SILVER PRODUCING DISTRICT • Existing development / access to ore from past producers • Historic annual production was 4 million Ag oz until 1990 from the Veta Colorada mine which closed due to love silver price • Palmilla – hi
Slide 26: Robust Organic Growth Pipeline
Robust Organic Growth Pipeline • Bruner Project: Nye County, Nevada High Impact Discovery Potential in Chile • Aida Project: Northern Chile, Region II • Paloma Project: Northern Chile, Region II TSX: TSX:EDR EDR| NYSE: | NYSE: EXK EXK 26
Slide 27: Bruner Project – Advanced Stage Exploration Project
Bruner Project – Advanced Stage Exploration Project FAVOURABLE GEOLOGY • Gold and silver occurring in low-sulphidation epithermal veins and in disseminations within sheeted and stockwork zones IDEALLY LOCATED • Situated within Nevada’s Walker Lane NW trending mineral belt, which currently hosts seve
Slide 28: Chile – High Impact Discovery Potential
Chile – High Impact Discovery Potential WORLD CLASS DEPOSITS • Aida (Low Sulfidation Epithermal Silver (Pb-Zn)) – Geologically similar to 2B oz Cerro Potosi mine in Bolivia – Massive epithermal alteration zone Miocene Volcanic rocks • Paloma (High Sulfidation Epithermal Gold (Ag)) – Geologically sim
Slide 29: Sector Leading Organic Growth Strategy
Sector Leading Organic Growth Strategy OPERATIONS Guanacevi Bolanitos 2022 production 4.3 – 4.5 Moz Ag, 13 – 14 koz Au 0.6 – 0.6 Moz Ag, 21 – 22 koz Au Terronera DEVELOPMENT Potential to add LOM production of 6.0 Next core asset in Jalisco, near Puerto million oz AgEq over the next few years Vallart
Slide 30: Shareholder Information
Shareholder Information CAPITAL STRUCTURE KEY DATA Issued/ outstanding 189.6 million Exchange listings NYSE:EXK, TSX:EDR, FSE:EJD Fully diluted 195.1 million Working capital US$150 million Recent closing price - NYSE US$3.34 Cash position US$116 million Market capitalization US$635 million Strategic
Slide 31: Focused on Becoming a Premier Senior Silver Producer
Focused on Becoming a Premier Senior Silver Producer Optimize Extend Mine Advance Make New Grow Through Terronera TSX: EDR | NYSE: EXK Operations Lives Discoveries M&A Focus on delivering mine Published FS with robust Drill world class Paloma Acquire new mines that Continue exploration free cash flo
Slide 32: Why Invest?
Why Invest? Our mission is to create value for our shareholders and become a premier silver producer in the silver mining industry. Mid-Tier Silver Compelling Experienced Strong Balance Pure Silver / TSX: EDR | NYSE: EXK Producer Organic Growth Management Sheet Gold Leverage Team Two high-grade silv
Slide 33: Appendix
Appendix Find us on social: @edrsilvercorp @EDRSilverCorp Endeavour Silver Corp. @EDRSilverCorp Endeavour Silver Corp. TSX: Contact: TSX: Galina Meleger, VP of Investor Relations EDR EDR | NYSE: | NYSE: EXK EXK 33
Slide 34: Mineral Reserves and Mineral Resources Estimates
Mineral Reserves and Mineral Resources Estimates Silver-Gold Proven and Probable Reserves (as of December 31, 2021) Reserves Tonnes Ag g/t Au g/t Ag Eq g/t Ag oz Au oz Ag Eq Oz Guanaceví 127,000 344 0.91 417 1,409,000 3,700 1,709,000 Bolanitos 119,000 33 2.74 252 125,000 10,500 964,000 Total Proven
Slide 35: Mineral Reserves and Mineral Resources Estimates (continued)
Mineral Reserves and Mineral Resources Estimates (continued) Silver-Lead-Zinc Resources (as of December 31, 2021) Resources Tonnes Ag g/t Au g/t Ag oz Au oz Ag Eq Oz Pb% Zn% Cu% Guanaceví 363,000 208 0.26 229 2,421,000 3,100 2,669,000 0.78 1.32 - Parral (Cometa) 180,000 55 1.17 149 320,000 6,800 864
Slide 36: Notes to Mineral Reserves and Mineral Resources Tables
Notes to Mineral Reserves and Mineral Resources Tables Notes to Mineral Reserve and Mineral Resource Tables (as of December 31, 2021) 1. Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that any or all of the mineral resources will be
Slide 37: Notes to Mineral Reserves and Mineral Resources Tables (continued)
Notes to Mineral Reserves and Mineral Resources Tables (continued) 6. Mineral resource and reserve cut-off grades – refer to note 5. 7. Metallurgical recoveries – refer to note 5. 8. Mining recoveries – refer to note 5. 9. Minimum mining widths were 0.8 m for mineral reserve estimate calculations. 1
Slide 38: Qualified Persons
Qualified Persons Guanacevi and Bolanitos Dale Mah, P.Geo., Vice President Corporate Development of Endeavour Silver, is the Qualified Person who reviewed and approved this document and the technical information contained in the Mineral Reserve and Resource Estimates for Guanacevi and Bolanitos. A Q
Slide 39: Historical Estimate & Third Party Information
Historical Estimate & Third Party Information HISTORICAL ESTIMATE – PITARRILLA PROJECT Pitarrilla is a large undeveloped silver, lead, and zinc project located 160 kilometres north of Durango City, in northern Mexico. The Pitarrilla property consists of 4,950 hectares across five concessions and has
Slide 40: Terronera Feasibility Study Summary
Terronera Feasibility Study Summary FS PFS % PROJECT SUMMARY 2021 2020 Change Tonnes Mined (Thousands) 7,380 5,563 33% Mined Gold (koz) 533.6 410.0 30% Mined Silver (koz) 46,707 36,013 30% Mined Silver Equivalent (koz) 88,838 67,988 31% Gold Recovery Rate (%) 76.3 82.3 (7%) Silver Recovery Rate (%)
Slide 41: 2021 Terronera Feasibility Study Compared to 2020 PFS
2021 Terronera Feasibility Study Compared to 2020 PFS TERRONERA PROJECT FS – PFS Change 2021 FS Compared to 2020 PFS 2021 2020 % Change Silver Price 20.00 15.97 25% Gold Price 1,575 1,419 11% Silver:Gold Ratio 79 89 (11%) Operating Statistics LOM Tonnes Processed LOM (thousands) 7,380 5,563 33% Life
Slide 42: 2021 Feasibility Study Compared to 2020 PFS
2021 Feasibility Study Compared to 2020 PFS TERRONERA PROJECT FS – PFS Change 2021 FS Compared to 2020 PFS 2021 2020 % Change Operating Cost Metrics LOM Gross Revenue (millions) 1,406.2 942.7 49% LOM Gross COS (millions) 640.6 466.3 37% LOM EDITBA (millions) 763.7 476.4 60% After Tax LOM Free Cash F
Slide 43: Feasibility Study Reserves and Resources
Feasibility Study Reserves and Resources Terronera and La Luz Probable Mineral Reserve (FS 2021) Terronera Tonnes Ag (g/t) Au g/t Ag Eq g/t Ag (000’s Au (000’s Ag Eq (kt) oz) oz) (000’s oz) Total 7,380 197 2.25 374 46,707 534 88,834 Probable Notes 1. Mineral Resource cut-off grades for Terronera was
Slide 44: Non-IFRS Measures
Non-IFRS Measures Endeavour Silver reports non-IFRS measures which include cash costs net of by-product revenue on a payable silver basis, total production costs per ounce, all-in sustaining costs per ounce, direct production costs per tonne, silver co-product cash costs and gold co-product cash cos
Slide 45: Management Team
Management Team Dan Dickson, CPA, CA, Don Gray, Ing., MBA, MSE, Christine West, CPA, CGA Nicholas Shakesby, BBA CEO COO CFO VP Operations TSX: EDR | NYSE: EXK Luis Castro, Ing., Geo. Dale Mah, B.Sc., P.Geo. Galina Meleger, VP Exploration VP Corporate Development VP Investor Relations 45
Slide 46: Board or Directors
Board or Directors Rex McLennan, B.Sc., Dan Dickson, CEO Margaret Beck Ricardo Campoy MBA, ICD.D Chairman CPA, CA B.Sc. Audit B.Sc. Corp. Gov. & Nom. Director Committee Chair Comp. Committee Chair Committee Chair TSX: EDR | NYSE: EXK Amy E. Jacobsen Ken Pickering Mario Szotlender, QP, P.E., MBA P. E
Slide 47: TSX: EDR | NYSE: EXK
47 TSX: EDR | NYSE: EXK
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