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Excellent production data let this silver producer return to its old strength!

Silver and gold clearly jumped again! A weak US dollar and the hope for economic stimulus allow the precious metals to take off!

There is still an upward trend for the Canadian silver producer Endeavor Silver Corp. (ISIN: CA29258Y1034 / TSX: EDR), the the operates three high-grade underground silver-gold mines in Mexico, Guanaceví in Durango State, Bolañitos in Guanajuato State and El Compás in Zacatecas State. In the third quarter of 2020, the consolidated silver equivalent production continued to improve and compared to the second quarter of 2020, even increased by an impressive 66%which is due to the renewed achievement of the regular throughput.

Despite a heavy rainy season, production in the third quarter was back on track, with an output of 942,274 ounces of silver and 10,260 ounces of gold. In the year as a whole, around 4.4 million ounces of silver equivalent were produced again despite the eight-week shutdowns caused by COVID-19!

Source: Endeavor Silver

A very satisfied Bradford Cooke, CEO of Endeavor Silver, looks relieved and much more optimistic about the future!

“After surviving a difficult second quarter with our mining operations disrupted for more than half the quarter due to the government’s COVID-19 regulation, our operations team was able to return to our production schedule in Q3 2020. Our mines are almost at full capacity, although we currently have fewer employees on site – proof of the positive response from our operations management and our employees. “

It does not matter that the consolidated silver production in the third quarter of 2020 was slightly lower than that in the same quarter of the previous year 2019, which is due to lower silver grades at the mines’ Bolañitos’ and ‘El Compás’ and the cessation of operations at’ El Cubo ‘in November 2019. This was offset by a significant increase in silver-bearing ore at the Guanaceví mine. Consolidated gold production is balanced again due to higher throughputs and more abundant gold-bearing ore (+ 6%) from the ‘Bolañitos’ and ‘Guanaceví’ mines.

Source: Endeavor Silver

A total of 741,263 ounces of silver and 8,998 ounces of gold were sold! Holdings of 412,913 ounces of silver and 1,963 ounces of gold in the form of bars as well as an inventory of 13,761 ounces of silver and 1,032 ounces of gold in concentrate form were accumulated!

Endeavor Silver – back to old strength!

Due to the significantly improved situation in overall operations, the company was even able to “sit out” the latest price correction for precious metals and held back with sales during this time in order to be able to buy more precious metals at higher prices !!! The company will now benefit in absolute terms in the fourth quarter of 2020 with the recovery in precious metal prices, so that a considerable part of the precious metal inventory can now be sold at significantly higher prices.

It is also very gratifying that the silver and gold grades in ‘Guanaceví’ were considerably higher than in the third quarter of 2019 and were even well above plan. Specifically, the mining of the new, higher-grade ore bodies ‘El Curso’, ‘Milache’ and ‘SCS’ led to these significantly higher ore grades. Mine production approached plan in the third quarter of 2020, however extremely humid August and September impacted plant throughput for that quarter. The mine added over 24,000 tons of ore to the heap in the third quarter of 2020 and as the rain subsides, management expects throughput to return to plant capacity of 1,200 tons per day. In order to be able to produce more even in such rainy phases, alternatives are being examined in order to reduce the effects of the rainfalls on the future plant throughput!

The performance on ‘Bolañitos’ is also getting better and better: the throughput recently reached the amount of 1,075 tons per day, while the gold grades fully met the target. However, the silver grades were lower than in the third quarter of 2019. Nevertheless, the company management assumes that the production on ‘San Miguel’ will continue to increase in the fourth quarter, as the mine development has been completed and the grades should rise again!

The ‘El Compás’ mine also showed steady performance, where throughput was above plan and remained stable at around 260 tons per day. So it does not matter that the salaries were slightly lower than in the third quarter of 2019 and thus below the planned salary. This fluctuation was due to dilution and normal fluctuations in the ore body.

Source: Endeavor Silver

A video webcast to discuss the results is scheduled for Tuesday, October 13, 2020 at 1 p.m. EST with Chief Financial Officer Dan Dickson and Director of IR Galina Meleger. A day later, the recording is due to be posted on the company’s website at www.edrsilver.com be available in the Investor Relations, Events, Webcast section.

Our conclusion:

Endeavor Silver has shown itself to be one of the most flexible companies in the raw materials sector over the past few years. The outstanding management responded promptly to all challenges and adapted the company extremely quickly to the respective situation! Now that a new bull market has established itself, the company is doing better than ever and should ‘outperform’ the silver price by a long way.

In addition, one should keep an eye on the projects in Chile, which are yet another absolute ‘game changer’ for the company! Thus not only the short-term prospects are correct, but also the long-term ones!

regards

you

Jörg Schulte

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