Endeavour Silver Corporation

Thank you for standing by. This is the conference operator. Welcome to the Endeavour Silver Corp 2020 fourth quarter and year end financial results conference call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star and zero. I would now like to turn the conference over to Galina Meliger, Director, Investor Relations, for opening remarks. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to the Endeavor Silver 2020 Fourth Quarter and Year-End Financial Results Conference Call. With me on the line today, we have the company's Chief Executive Officer, Bradford Cook. our Chief Financial Officer, Dan Dixon, and our Chief Operating Officer, Don Gray. Before we get started, I'm required to remind you that certain statements on today's call will contain forward-looking information within the meaning of applicable securities laws. These may include statements regarding endeavors anticipated performance in 20 and 21 and future years, including revenue and cost figures, silver and gold production, grades and recoveries, and the timing and expenditures required to develop new silver mines in mineralized zones. We do not intend to and do not assume any obligation to update such forward-looking information other than as required by applicable law. On behalf of Endeavor Silver, I'd like to thank you again for joining our call, and I will now turn it over to our CEO, Bradford Cook.

Thank you very much, Galina, and welcome everybody to this webinar. year-end financials call for Endeavor Silver. Maybe I'll just start with some highlights. 2020 turned into a very challenging year with the COVID pandemic, but ultimately was one of our most satisfying years as our operational group really came through in the crunch. We drove our costs down and coupled with higher metal prices that drove significantly higher revenues, higher cash flow, higher earnings. We turned positive in terms of earnings for the first time in three years. And notwithstanding the government mandated two-month suspension of mining operations throughout Mexico, we were not only able to meet our 2020 original production guidance, we delivered higher production and lower costs at each of the three operating mines. perhaps last but not least in terms of high-level comments, we obviously continue to focus on safety as our number one priority. And for the second year in a row, Guana Savi, our largest mine, posted more than a million hours worked without a lost time accident. So kudos again to our operations team. Let me touch on some numbers in today's news release, and then we'll open it up for Q&A. So As I mentioned, a very good year in 2020, and we've certainly finished the year with a bang. Fourth quarter sales were $61 million, up 81% year on year. Cash flow was $22 million, up from negative $8 million a year ago. And net income was almost $20 million, or 13 cents a share, up from a net loss of $18 million a year ago. Moving to the full year highlights, we posted $140 million of revenue, up 15%. Cash flow of $29 million before working capital changes up from negative $9 million and net income of $1.2 million up from a net loss of $48 million in 2019. Our production was solid at 6.5 million ounces of silver and equivalents, the only equivalent being gold. That was actually down 9% from the prior year due to the closure of a now non-core operation, the El Cubo mine. Cash costs at $5.55 per ounce of silver net of the gold credits was down 57%, so a significant reduction in cash operating costs. And the all-in sustaining costs were $17.59 per ounce net of gold credit, down 17% year-on-year. We finished the year with a very strong balance sheet, $61 million cash, $70 million working capital. And just a reminder that we started 2020 with $23 million cash, so it was a heck of a year for adding cash to the balance sheet. So those are the financial highlights from today's news release. I think, Operator, why don't we open this up now for Q&A?