World News: 11:50 GMT Thursday 30th May 2019. [Endeavour Silver Corporation via Globe Newswire via SPi World News]
VANCOUVER, British Columbia, May 30, 2019 (GLOBE NEWSWIRE) -- ) provides the following update on its silver-gold mining operations in Mexico. In recent months, management initiated a number of measures to improve its operating and financial performance.
These include changes to mine-site management and contractors, changes to employee and contractor supervision, renting used mining equipment and leasing new mining equipment, and revising the 2019 mine plans for all four mines, particularly Guanacevi. The Company has cut operating and administrative costs, reduced the employee and contractor workforce by 18% and deferred all discretionary expenditures.
The immediate goal of these actions is to turn the Company around from generating losses in the first half of 2019 to generating free cash flow at current metal prices in the third quarter.
Management notes that these actions are starting to have a positive impact on the daily operating performance of the mining operations. However, the Company’s performance in Q2, 2019 will not likely differ from its Q1, 2019 performance as these initiatives take time to gain full traction and the Company incurred significant one-time expenses such as severance costs in Q2, 2019.
The Company does anticipate that these measures will allow it to generate free cash flow in the Third and Fourth Quarters, 2019, with Second Half production expected to be higher than First Half production and Second Half costs forecasted to be substantially lower than First Half costs, based on a $15 per oz silver price, $1,275 per oz gold price, and 19:1 Mexican peso per US dollar exchange rate.
Bradford Cooke, CEO, stated, “Our goal in implementing these actions is to make our mining operations more efficient so they can return to profitability quickly and permanently. Reducing the operating costs and work force combined with investing in new mining equipment and retraining are keys to making our mines more sustainable even at low metal prices.”
“At Guanacevi, we stopped new mine development at the lower grade Santa Cruz and Porvenir Norte mines to focus on mining the remaining accessible reserves there. We also re-allocated employee and contractor resources to accelerate the development and production of the higher grade Milache and SCS orebodies. This should have a big impact on our operating and financial performance at Guanacevi.”
SOURCE Endeavour Silver Corp.
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Globe Newswire: 11:50 GMT Thursday 30th May 2019
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