Endeavour Silver Reports 17% Decline in Q1 Silver Equivalent Production

Endeavour Silver Corporation experienced a 17% year-over-year drop in silver equivalent production for Q1 2025, producing 1.9 million silver equivalent ounces as reduced output at Guanaceví mine offset gains at Bolañitos.

Endeavour Silver's Q1 Production Details Show Mixed Performance Across Mines

Consolidated silver production fell 17% year over year to 1,205,793 ounces during the first quarter of 2025. This decline was primarily driven by reduced output at the Guanaceví mine, which saw silver production decrease by 24% year over year to 1,015,327 ounces.

The Bolañitos mine provided some positive news, with silver production improving 53% year over year to reach 190,466 ounces. Despite this improvement, it wasn't enough to offset the overall production decline across Endeavour Silver's operations.

Gold production also experienced a downturn during the quarter, falling 18% to 8,338 ounces. While the Guanaceví mine reported a modest 3% decline in gold production to 3,989 ounces, the Bolañitos mine saw a more significant drop of 28% year over year to 4,349 ounces.

Endeavour Silver's Sales and Inventory Position at Quarter End

The company's sales figures reflected the production decline, with silver ounces sold dropping 31% year over year to 1.22 million ounces. Gold sales followed a similar pattern, decreasing 21.5% to 8,538 ounces compared to the same period last year.

At the end of the first quarter, Endeavour Silver maintained inventory levels of 219,151 ounces of silver and 715 ounces of gold in bullion. Additionally, the company held 31,232 ounces of silver and 452 ounces of gold in concentrate inventory, positioning itself for future sales opportunities as market conditions evolve.

Endeavour Silver Expands Production Profile with Strategic Acquisition

In a significant development announced on April 1, 2025, Endeavour Silver entered an agreement to acquire Compañia Minera Kolpa S.A. for $145 million. This strategic move will add the promising Kolpa mine located in Huancavelica Province, Peru, increasing EXK's number of producing mines to three and marking its first entry into the Peruvian market.

The acquisition aligns with Endeavour Silver's ambitious plan to establish itself as a senior silver producer. Kolpa is expected to contribute approximately 5 million silver equivalent ounces to EXK's production profile, significantly enhancing the company's output capacity. The transaction is scheduled to close in the second quarter of 2025, pending regulatory approvals and customary closing conditions.

Peru represents a strategic choice for expansion as it ranks as the third-largest silver production country globally, behind only Mexico and China. The acquisition not only boosts immediate production capabilities but also establishes a foothold for potential future acquisitions in the resource-rich region.

Endeavour Silver's Growth Strategy Includes Terronera Project Development

Alongside its acquisition strategy, Endeavour Silver continues to advance the development of its Terronera project in Mexico. The project is on track for wet commissioning in the second quarter of 2025, representing another significant milestone in the company's growth trajectory.

Terronera is projected to deliver average annual production of 4 million ounces of silver and 38,000 ounces of gold, equivalent to approximately 7 million silver equivalent ounces. Once operational, this single project will nearly double Endeavour Silver's current production capacity, cementing its position as an emerging leader in the silver mining sector.

Despite the quarterly production decline, Endeavour Silver's stock has demonstrated strong performance over the past year, gaining 29.5% while the broader industry experienced an 11.8% decline. This suggests investor confidence in the company's long-term growth strategy despite short-term production challenges.

Industry Comparison and Endeavour Silver's Market Position

First Majestic Silver Corp. (AG), another key player in the silver mining sector, reported contrasting results for the same period. AG's total production reached 7.7 million silver equivalent ounces in the first quarter of 2025, including 3.7 million silver ounces and 36,469 gold ounces. This represented a substantial 49% year-over-year increase, driven primarily by an impressive 88% surge in silver production.

Endeavour Silver currently carries a Zacks Rank #3 (Hold), reflecting mixed short-term expectations. For investors looking at other opportunities in the basic materials space, Idaho Strategic Resources (IDR) and DRDGOLD Limited (DRD) both currently hold a Zacks Rank #2 (Buy).

Idaho Strategic Resources has demonstrated strong performance with an average trailing four-quarter earnings surprise of 77.5%. The Zacks Consensus Estimate for IDR's 2025 earnings stands at 78 cents per share, indicating year-over-year growth of 16.4%. Idaho Strategic's shares have appreciated by 66% over the past year.

Similarly, DRDGOLD has positive projections, with the Zacks Consensus Estimate for 2025 earnings at $1.06 per share, representing year-over-year growth of 29.8%. DRD shares have jumped 57.6% in the last year, outperforming many competitors in the mining sector.