Endeavour Silver’s Production and Cost Guidance for 2024
Endeavour Silver Corp. has recently released its production and cost guidance for the year 2024. As a mid-tier precious metals mining company, Endeavour Silver is anticipating a range of 5.3 to 5.8 million ounces of silver production, as well as 34,000 to 38,000 ounces of gold production. In terms of silver equivalent production, the company is forecasting a total between 8.1 million and 8.8 million ounces.
Silver and Gold Projections for Endeavour Silver in 2024
Consolidated cash costs and all-in sustaining costs (AISC) for Endeavour Silver in 2024 are estimated to be $14.00 to $15.00 per ounce of silver and $22.00 to $23.00 per ounce of silver, respectively, net of gold by-product credits. It is worth noting that these figures are slightly higher for cash costs and slightly lower for AISC compared to 2023. This is mainly due to a reduction in gold production and a lower estimated gold price.
Challenges and Investments: Endeavour Silver’s Plans for 2024
According to Dan Dickson, CEO of Endeavour Silver, escalating costs have presented an ongoing challenge for the company. Factors such as a stronger local currency and inflationary pressures on essential inputs like labor and materials are impacting the bottom line. However, despite these challenges, Endeavour Silver remains committed to ensuring safety and delivering shareholder value. The company is particularly focused on completing construction at the Terronera Project within the year.
Endeavour Silver’s Exploration Budget and Focus for 2024
In addition to production and cost guidance, Endeavour Silver has also announced its exploration budget for 2024. The company plans to invest $8.7 million in exploration, with a particular focus on advancing the Pitarrilla project. This project holds significant potential for the company, and the allocation of resources reflects Endeavour’s commitment to unlocking its value.
Furthermore, the exploration budget will also support economic studies and targeting programs in other locations. Some of these expenditures are subject to Board approval later in the year, indicating that Endeavour Silver is actively pursuing opportunities for growth and expansion.
Management’s Cost Forecasts and Assumptions for Endeavour Silver in 2024
Endeavour Silver’s cost forecasts for 2024 are based on several key assumptions. These include a projected silver price of $23 per ounce, a gold price of $1,840 per ounce, a Mexican peso per US dollar exchange rate of 17:1, and a 5% Mexican annual inflation rate. It is crucial to note that actual results may vary due to various risks and uncertainties.
In conclusion, Endeavour Silver Corp. has outlined its production and cost guidance, as well as its capital and exploration budgets for 2024. Despite facing challenges associated with escalating costs, the company remains committed to ensuring safety and delivering value to its shareholders. The allocation of resources to key projects, such as the Terronera Project and the Pitarrilla project, demonstrates Endeavour Silver’s strategic focus on growth and expansion.
Analyst comment
Positive: Endeavour Silver Corp. has released its production and cost guidance for 2024, projecting significant silver and gold production. The company has also allocated resources to key projects and announced an exploration budget, displaying a focus on growth and expansion.
As an analyst, it is expected that the market will react positively to Endeavour Silver’s production and cost guidance for 2024. The projected increase in silver and gold production, along with the company’s focus on growth and expansion, indicates potential for increased revenue and shareholder value. Additionally, the allocation of resources to key projects shows a strategic approach to capturing value from promising opportunities.
