Endeavour Silver Corp. · TSX:EDR
Endeavour Silver — Investor Presentation (August 2024)
41 slides from Endeavour Silver's investor presentation, Aug 28, 2024
Slide 1: Growth on the Horizon
Growth on the Horizon August 28, 2024 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 in
Slide 3: Investor Highlights
Investor Highlights MID-TIER BUILDING SIGNIFICANT LEADING STRATEGICALLY SILVER MEXICO’S NEXT ORGANIC SILVER ACQUIRING KEY PRODUCER SILVER MINE GROWTH LEVERAGE ASSETS Two high grade, Terronera is Best organic Pure precious Opportunistic underground scheduled for growth profile in metals producer merg
Slide 4: 2024 Outlook – Core Assets Focused in Mexico
2024 Outlook – Core Assets Focused in Mexico Exploration Operation Development 2023 CONSOLIDATED OUTLOOK (3) Parral Project Guanacevi Mine Chihuahua State, Mexico 2024 CONSOLIDATED OUTLOOK (2) Durango State, Mexico 4.4 – 4.6 Moz $30M Pitarrilla Project Silver Production Sustaining Capital Durango St
Slide 5: 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 6: 2023 Sustainability Highlights
2023 Sustainability Highlights TSX: EDR | NYSE: EXK 6
Slide 7: Recent Developments
Recent Developments STRONG START TO 2024 H1 PRODUCTION • Consolidated production was 2,772,578 million oz Ag and 20,682 oz Au • Silver equivalent(1) production of 4.4 million oz Guanacevi 72% Bolanitos 28% H1 FINANCIAL HIGHLIGHTS • Revenue of $122 million, mine operating earnings (2) of $22 million
Slide 8: Guanacevi Mine
Guanacevi Mine Durango 80% Ag 20% Au 2023 Mine Plan, Metals Mix • Production – 2005 - 2022: 48.4M oz Ag, 120k oz Au – 2023: 5.1M oz Ag, 15.0k oz Au • Reserves(1) : 0.7 million tonnes at 476 g/t AgEq TSX: containing 11.2 million AgEq oz TSX: • EDR M&I Resources(1) : 570k tonnes at 523 g/t AgEq EDR| N
Slide 9: Guanacevi – Production Continues
Guanacevi – Production Continues PRIMARY BALL MILL TRUNNION FAILURE AgEq Quarterly Production (oz)(1) Cash shortfall to be limited during reduced production period (3) 1,663,223 1,665,662 1,569,359 1,535,148 1,294,091 OPERATIONS CONTINUE AT REDUCED RATE Temporary modifications have been completed wi
Slide 10: Guanacevi – Delivering High Grade Drill Results
Guanacevi – Delivering 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-out holes Porvenir Dos - comparable to original long, producing in area
Slide 11: Bolanitos Mine
Bolanitos Mine Guanajuato 80% Au 20% Ag 2023 Mine Plan, Metals Mix • Production – 2007 - 2022: 16.8M oz Ag, 339k oz Au – 2023: 0.6M oz Ag, 22.9k oz Au • Reserves(1) : 459k tonnes at 246 g/t AgEq containing 3.6 million AgEq oz • M&I Resources(1) : 789k tonnes at 327 g/t AgEq TSX: containing 8.3 milli
Slide 12: Bolanitos – Maintaining Steady Performance
Bolanitos – Maintaining Steady Performance H1 2024 PRODUCTION AgEq Quarterly Production (oz)(1) Increased gold production from higher grades with similar throughput, offset by lower silver production due to lower grades 616,297 581,764 605,704 605,063 621,257 EXPLORATION UPSIDE Completed surface dia
Slide 13: Terronera Project
Terronera Project Jalisco 60% Ag 40% Au Reserve, Metals Mix • Endeavour’s next core asset • Construction continues on track Achieved formal board approval in Q2-23 Closed $120 million debt facility in Q4-23 • 2 defined ore bodies: • Terronera vein TSX: • La Luz vein TSX:EDR • EDR| NYSE: Proposed
Slide 14: Terronera – Mexico’s Next Silver Mine in Construction
Terronera – Mexico’s Next Silver Mine in Construction CONSTRUCTION WELL UNDERWAY ALMOST 100% ORGANIC GROWTH • Endeavour’s largest mine and next operating mine • 10 years of technical work has prepared the project for construction including 6 technical reports (105,000 m of drilling) EXPECTED TO NEAR
Slide 15: Terronera - Operating Cost Comparison
Terronera - Operating Cost Comparison TERRONERA EST. CASH COSTS(1) VS. OPERATING PEER GROUP(2) $ 120.00 100.00 80.00 60.00 40.00 26.46 20.07 21.23 21.81 23.20 17.17 17.50 18.54 19.66 19.92 13.86 15.00 16.48 20.00 10.28 11.05 12.74 12.81 13.28 7.17 7.19 8.24 8.35 9.18 9.81 10.09 3.79 5.26 6.39 0.26 1
Slide 16: Terronera – Project Schedule
Terronera – Project Schedule COMISSIONING IN Q4 2024 • 21-month construction period, including 3-6 month 2023 2024 ramp up to full production MILESTONES(1) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 SENIOR SECURED DEBT FACILITY(1) Underground mine • Principal: $120 million development • Term: 8.5 years; grace period d
Slide 17: Terronera – Q2 2024 Construction Update
Terronera – Q2 2024 Construction Update CONSTRUCTION PROGRESS 65% COMPLETE • Terronera has been significantly de-risked with $204 (1) million spent to date; Project commitments total $225 million (1,2) UNDERGROUND MINE DEVELOPMENT • 4,500 metres of mine development completed to date • Portal 1,2 and
Slide 18: Construction Advances Through Q2 2024
Construction Advances Through Q2 2024 TSX: EDR | NYSE: EXK Excavation on the lower platform area was nearly 45% complete and the TSF embankment key trench was nearly 60% complete. 18
Slide 19: Construction Milestones Achieved in Q2 2024
Construction Milestones Achieved in Q2 2024 TSX: EDR | NYSE: EXK Upper platform surface construction is 88% complete. Ball mill Primary crusher liners installed. SAG Mill liners in progress 19
Slide 20: Terronera - Exploration Opportunities
Terronera - Exploration Opportunities TERRONERA PROJECT SURFACE VIEW TERRONERA VEIN • Endeavour controls 25 concessions totaling 20k hectares • The Terronera vein holds over 90% of the defined reserve • +50 mines on +50 known veins • Inferred envelope is open along strike and at depth • Thick veins
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: Pitarrilla – Opportunity & History of the Project
Pitarrilla – 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: Pitarrilla – Summary of Historically Contemplated Operations
Pitarrilla – Summary of Historically Contemplated Operations 2009 PFS(1,3) MODELLED ON AN UNDERGROUND MINE • 4,000 tpd mining operation over 12-year mine life ENDEAVOUR SILVER IS EVALUATING THE BUSINESS • Targets sulphides beyond the limits of conceptual OP mine CASE FOR AN UNDERGROUND MINE, FOCUSED
Slide 25: 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 25
Slide 26: 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 • Palmilla – highest grade silver mine in Mexico in 1
Slide 27: Sector Leading Organic Growth Strategy
Sector Leading Organic Growth Strategy OPERATIONS Guanacevi Bolanitos 2024E production 4.9 – 5.2 Moz Ag, 13 – 15 koz Au 0.5 – 0.6 Moz Ag, 21 – 23 koz Au Terronera DEVELOPMENT LOM production of 7.0 million oz AgEq Next core asset in Jalisco, near Puerto over the next few years (79:1 silver: gold Vall
Slide 28: Shareholder Information
Shareholder Information CAPITAL STRUCTURE KEY DATA Issued/ outstanding 245.9 million Exchange listings NYSE:EXK, TSX:EDR, FSE:EJD Potentially dilutive units 5.6 million Working capital US$65 million Total diluted shares 251.5 million Cash position US$68 million Recent closing price – NYSE (August 27
Slide 29: Focused on Becoming a Premier Senior Silver Producer
Focused on Becoming a Premier Senior Silver Producer Optimize Extend Mine Develop Advance Growth Grow Through Terronera TSX: EDR | NYSE: EXK Operations Lives Pipeline M&A Focus on delivering mine free Complete construction on Drill world class Pitarrilla Acquire new mines that Continue exploration c
Slide 30: Appendix
Appendix Find us on social: @edrsilvercorp @EDRSilverCorp Endeavour Silver Corp. @EDRSilverCorp Endeavour Silver Corp. TSX: TSX: Endeavour Silver Allison Pettit EDR Suite 1130-609 Granville Street Director, Investor Relations EDR Vancouver, BC apettit@edrsilver.com | NYSE: | NYSE: Canada V7Y 1G5 TF:
Slide 31: Mineral Reserves and Mineral Resources Estimates
Mineral Reserves and Mineral Resources Estimates Silver-Gold Proven and Probable Reserves (as of December 31, 2023) Tonnes (000s) Ag g/t Au g/t Ag Eq g/t Ag oz (000s) Au oz (000s) Ag Eq Oz (000s) Guanaceví 299 426 1.17 519 4,090 11.3 4,993 Bolanitos 99 74 2.48 273 235 7.9 865 Total Proven 398 338 1.
Slide 32: Mineral Reserves and Mineral Resources Estimates (continued)
Mineral Reserves and Mineral Resources Estimates (continued) Silver-Lead-Zinc Resources (as of December 31, 2023) Ag Eq Oz Tonnes (000s) Ag g/t Au g/t Ag Eq g/t Ag oz (000s) Au oz (000s) (000s) Pb% Zn% Guanaceví 363 208 0.26 229 2,421 3.1 2,670 0.78 1.32 Pitarrilla In Pit (Oxide & Transition) 133,90
Slide 33: Notes to Mineral Reserves and Mineral Resources Tables
Notes to Mineral Reserves and Mineral Resources Tables Notes 1 Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that any or all part of the Mineral Resources will be converted into Mineral Reserves. The estimate of Mineral Resources ma
Slide 34: Notes to Mineral Reserves and Mineral Resources Tables (continued)
Notes to Mineral Reserves and Mineral Resources Tables (continued) Notes on Pitarilla Resource Estimate: 18 The classification of the current Mineral Resource Estimate into Indicated and Inferred Mineral Resources is consistent with current 2014 CIM Definition Standards - For Mineral Resources and M
Slide 35: Qualified Persons
Qualified Persons Guanacevi and Bolanitos The Technical Reports are entitled “NI 43-101 Technical Report: Updated Mineral Resource and Reserve Estimates for the Guanaceví Project, Durango State, Mexico” (the “ 2022 Guanacevi Report ”) with an effective date of November 5, 2022, and “NI 43-101 Techni
Slide 36: 2023 Optimized Plan (2,000 tpd) Compared to 2021 FS
2023 Optimized Plan (2,000 tpd) Compared to 2021 FS Detailed View - 2,000 TPD Plant Compared to 2021 FS Updated Development Plans and Initial Capital Costs Summary 2023 2021 % Change Silver Price 20.00 20.00 0% Gold Price 1,575 1,575 0% Silver: Gold Ratio 79 79 0% Operating Statistics Life of % LOM
Slide 37: Terronera – Operational Metrics & Updated Initial Capex Scenario
Terronera – Operational Metrics & Updated Initial Capex Scenario Select Operating Metrics 2021 FS(1) Optimized(2) 2023 Optimized 2024 Updated LOM tonnes processed (thousands) 7,380 7,382 CAPEX Estimate (millions) Variance Scenario Scenario (4) Life of Mine (Years) 12 10 Mining $69.9 $83.8 $13.9 Aver
Slide 38: 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 39: Management Team
Management Team Dan Dickson, CPA, CA, Don Gray, Ing., MBA, MSE, Elizabeth Senez, FCA CEO COO (ICAEW) CFO TSE: EDR | NYSE: EXK Greg Blaylock, B.Sc, MSE, Luis Castro, Ing., Geo. Dale Mah, B.Sc., P.Geo. VP Operations VP Exploration VP Corporate Development 39
Slide 40: 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 TSE: EDR | NYSE: EXK Amy E. Jacobsen Ken Pickering Mario Szotlender, Angela Johnson QP,
Slide 41: TSX: EDR | NYSE: EXK
41 TSX: EDR | NYSE: EXK
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