Precious metals miner Endeavour Silver expects its consolidated silver and gold production for 2019 to be about 10% lower than in 2018.
This is according to the company’s 2019 production and cost guidance for its four silver/gold mines in Mexico; the Guanacevi mine in Durango state, the Bolanitos and El Cubo mines in Guanajuato state and the El Compas mine now being commissioned in Zacatecas state.
Silver production is expected to range from 4.4-million to 5.2-million ounces and gold production is anticipated be in the 46 200 oz to 52 200 oz range.
Silver-equivalent production is slated at about 8.1-million ounces to 9.4-million ounces, using a 80:1 silver:gold ratio.
Endeavour estimated that its consolidated cash cost will be slightly higher year-on-year at $8.50/oz to $9.50/oz silver and the all-in sustaining cost (AISC) will be equal to or slightly lower than 2018 at $15/oz to 16/oz silver, both net of the gold byproduct credit.
The company expects its cash costs to increase slightly in 2019 compared with 2018, primarily at El Cubo.
Further, reduced capital expenditures in 2019 is expected to result in lower AISC year-on-year, based on lower 2019 precious metal production and using lower estimated metal prices of $15.50/oz silver and $1 240/oz gold.
The company’s 2019 sustaining capital budget is lower than 2018 owing to lower sustaining capital expenditures at El Cubo.
The 2019 exploration budget for the operating mines is also lower as the focus shifts towards growth projects such as Parral.
“We expect to improve our operating performance this year, especially at Guanacevi where the development of two new high-grade orebodies should facilitate higher production and lower costs, and at El Compas, which should achieve commercial production this quarter,” Endeavour CEO Bradford Cooke commented.
However, he noted that El Cubo production will be scaled back to about half of 2018’s, to give the company’s exploration group more time to explore for new resources.
“We expect Guanacevi to return to full plant capacity in the second half of 2019, we have a substantial ore stockpile now at El Compas to fill that plant to capacity, and we are pursuing opportunities to fill the El Cubo plant with new sources of ore in 2019. Meanwhile, we await the final permit, debt financing and board decision so we can commence development of our Terronera project, which has the potential to become our largest and lowest cost mine.”