Endeavour Silver Reports Financial and Operating Results for First Quarter, 2008;Revenues Up 48%, Production Up 3% Teleconference Scheduled for Thursday, May 15, 10 AM PDT
Vancouver, Canada -- May 14, 2008 - Endeavour Silver Corp. (EDR: TSX, EJD: DBFrankfurt and EXK: AMEX) announced today its financial and operating results for the First Quarter 2008. The financial results are expressed in US dollars (US$) and are based on Canadian generally accepted accounting practices. For a more detailed review, shareholders can view the complete financial statements and management discussion and analysis at the Company's website,www.edrsilver.com and on the SEDAR website, www.sedar.com .
Highlights Q1 2008
Mineral sales jumped by 48% to $10.7 million compared to Q1 2007.
Silver production rose by 3% to 505,000 oz compared to Q1 2007.
Mine operating earnings remained constant at $2.7 million compared to Q1 2007.
Cash costs were $10.01 per oz, sharply higher than Q1 2007, but 10% lower than Q4 2007.
Extended Porvenir Mine ore-body by drilling at Guanacevi Mines project in Durango.
Discovered new "3785" gold-silver mineralized zone by drilling at Guanajuato Mines project.
Acquired new "Navegantes" silver properties near the Parral project in Chihuahua.
Announced new appointments to management team.
Bradford Cooke, Chairman and CEO, commented, "Endeavour successfully reduced its cash costs and advanced its numerous capital expansion and upgrade projects in Q1 2008. Silver production and cash costs are expected to improve slightly in the 2nd quarter as various capital projects are completed. The Company's expansion and upgrade programs should significantly impact production output and costs in the second half of the year. Management also anticipates reporting on substantial progress from its exploration and acquisition programs in Mexico over the next two quarters. Endeavour currently has four drills working on three of its silver projects".
The Company realized mineral sales of $10.7 million and Mine operating earnings of $2.6 million from its mining and milling operations for the First Quarter ended March 31, 2008. Endeavour's average realized silver price was $18.12 per oz sold in Q1, 2008, 33% higher than Q1, 2007, which explains the jump in mineral sales. Cost of sales was $6.6 million and depreciation and depletion of $1.5 million.
The Operating Loss for the three months ended March 31, 2008 was $1.8 million after Exploration costs of $2.1 million, General and Administrative costs of $1.4 million and Stock Based Compensation costs of $1.0 million. The Loss Before Taxes for the three months ended March 31, 2008 was $1.4 million after Foreign Exchange Loss of $0.5 million, a realized gain on marketable securities of $0.7 million and Investment and Other Income of $0.1 million. The Company incurred a Net Loss for the three months ended March 31, 2008 of $2.0 million after Income Tax Provision of $0.6 million.
The cash cost of $10.01 per ounce produced for Q1, 2008 was substantially higher compared to $5.85 per oz in Q1, 2007. The unusually high costs associated with the Guanajuato project, as well as rising costs of labour, fuel, power, parts, equipment and various other supplies, were responsible for the jump in cash costs. The Q1, 2008 cash costs decreased 10% from Q4, 2007 of $11.09 due to a slightly downsized labour force, reduced operations activities and improved costs controls at the Guanajuato project. Guanacevi and Guanajuato are presently incurring additional operating costs as we implement our expansion and efficiency programs.
Silver production for Q1, 2008 was 504,669 ounces compared to 490,986 ounces in Q1, 2007, an increase of 3%. First Quarter plant throughput was 78,157 tonnes at an average grade of 304 gpt silver and 0.71 gpt gold compared to 47,781 tonnes at an average grade of 427 gpt silver and 0.88 gpt gold during Q1 2007. The plant throughput rate of 854 tonnes per day was 61% higher in Q1, 2008 compared to Q1, 2007 due the Guanacevi expansion program and the addition of the Guanajuato operation. At Guanajuato, all of the safety upgrades should be completed in Q2, 2008 so that the shafts can come back into operation. This should facilitate a tripling of mine output at Guanajuato in Q3 and Q4 2008.
Endeavour invested $3.9 million on capital projects during the quarter, including $1.3 million on plant projects, $0.5 million on mine equipment, $0.3 million on buildings and $1.8 million for underground mine development. Most of these investments were made at Guanacevi to facilitate expanded mine output, enhanced plant throughput and metal recoveries. The Company expects to complete the new silver refinery, tailings thickeners and agitation leach circuit expansion in Q2 2008.
Positive exploration drilling results were released for two projects during the 1st quarter, 2008. At the Porvenir Mine in Guanacevi, drilling successfully extended the known silver mineralization of the North Porvenir ore-body to depths exceeding 400 m. Highlights include 1.45 gpt gold and 531 gpt silver (17.8 oz per ton silver equivalents based on a 55:1 silver gold ratio) over 2.1 core length in hole NP 21-7. At the Cebada Mine in Guanajuato, drilling outlined the newly discovered "3785" mineralized zone to the North of the mined-out areas. Highlights include 4.54 gpt gold and 316 gpt silver (16.5 oz per ton silver equivalents) over a 1.7 m core length.
Endeavour also announced the acquisition of an option to purchase the Navegantes silver properties near the Parral project in Chihuahua, Navegantes covers a north-trending swarm of quartz-barite vein over a 1.5 km length that had a history of small scale but very high grade silver production but were never drilled. Management views the Navegantes properties as an attractive opportunity to explore for new high grade silver deposits as part of the Parral project.
In Q1, 2008, Endeavour welcomed three new members to its management team. Dan Dickson, C.A. was appointed interim CFO after joining Endeavour one year ago. Mr. Dickson was previously an assurance manager for a "big four" accounting firm. Christine West, CGA, replaced Dan Dickson as Controller, bringing to Endeavour some 25 years of experience in business, including CFO of a junior mining and exploration company. Richard Downes was appointed Mine Manager of the Guanacevi Mines Project in Durango. Mr. Downes is a career miner who has experience in both operations and management.
A conference call to discuss the Q1, 2008 financial results will be held on at 10:00 AM Pacific Time (1:00 PM Eastern Time) on Thursday, May 15, 2008.
To participate in the conference call, please dial the following:
1-800-396-7098 Canada & USA (Toll-Free)
416-620-3447 Toronto area callers
No pass code necessary
A replay of the conference call will be available until May 30, 2008 by dialing 1-800-408-3053 in Canada & USA (Toll-free) or 416-695-5800 in the Toronto area. The required pass code is 3260937 followed by the # key.
A simultaneous webcast of the conference call will be posted on the home page of the company's website, www.edrsilver.com.
Endeavour Silver Corp. (EDR: TSX, EXK: AMEX, EJD: DBFrankfurt) is a small-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. The expansion programs now underway at Endeavour's two operating mines, Guanacevi in Durango and Bolanitos in Guanajuato, coupled with the Company's aggressive acquisition and exploration programs in Mexico should enable Endeavour to join the ranks of top primary silver producers worldwide.
ENDEAVOUR SILVER CORP.
/s/ "Bradford J. Cooke"
Chairman and CEO
For more information, please contact Hugh Clarke Toll free: 877-685-9775, tel: (604) 685-9775, fax: (604) 685-9744, email firstname.lastname@example.org or visit our website,www.edrsilver.com. The TSX Exchange has neither approved nor disapproved the contents of this news release.
CAUTIONARY DISCLAIMER -- FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are "forward-looking statements". We caution you that such "forward looking statements" involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company's filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.