Endeavour Silver Corporation

Thank you for standing by. This is the conference operator. Welcome to the Endeavor Silver Corp 2021 First Quarter 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 for you to ask questions. To join the question queue, you may press star then 1 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 of Investor Relations, for opening remarks. Please go ahead.

Thank you, operator. Good morning, everyone, and welcome to the Endeavor Silver 2021 First Quarter 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 Endeavor's anticipated performance in 2021 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 today's call, and I will now turn it over to our CEO, Bradford Cook.

Thanks very much, Galina, and welcome everybody to this Q1 financial results call. Endeavor had a very good start to the year, lots going on. We pre-released our metal production at 1.04 million ounces of silver, up 22% year-on-year, 10,900 ounces of gold, up 31% year-on-year for silver equivalents of $1.9 million at an 80-to-1 ratio of 26% compared to Q1 last year. Our costs were pretty much flat year-on-year. Cash, $186 per ounce, payable silver, net of the gold credit. All-in costs were up a little bit, 8% to 1994, again, net of the gold credit. And that led to revenues of $35.1 million. up 58%. That was partly due to obviously higher production, higher prices, but also we held back some metal for sale during the first quarter, partly due to the downturn in metal prices in late March. And we fully plan to have sold much of that inventory here into higher prices. That impacted our cash flow. We had $5.2 million of cash flow from operations, but that was up sharply last year. And, of course, $12.2 million per share, so up sharply compared to a loss of $16 million last year in Q1. A good chunk of that, though, is the reversal of the El Cubo asset, which we sold here just recently. offset partly by increased expiration activities, evaluation activities, and a higher tax expense. We would have taken an adjusted loss in the first quarter, but then that's offset by the rise in finished goods inventory. So, again, a busy quarter, a profitable quarter for us, and we're looking for another very good quarter here in Q2. So those are really the financial highlights from our release today. And I think rather than carry on, why don't we just open this up for Q&A, and we'd be happy to answer your questions.