Endeavour Silver Corporation

Standing by, this is the conference operator. Welcome to the Endeavor Silver first quarter 2025 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 then zero. I would now like to turn the conference over to Allison Pettit, Director of Investor Relations. Please go ahead.

Thank you, Operator, and good morning, everyone. Before we get started, I ask that you view our MD&A precautionary language regarding forward-looking statements and the risk factors pertaining to these statements. Our MD&A and financial statements are available on our website at EBRSilver.com. On today's call, we have Dan Dixon, Endeavor Silver's CEO, Elizabeth Seneff, our CFO, and Don Gray, Endeavor's COO. Following Dan's formal remarks, we will open the call for questions. And now, over to Dan.

Thank you, Allison, and welcome, everyone. Q1 marked a strong start to the year for Endeavor Silver, with solid production figures and continued progress on key developments. With Q1SB involving those performing in line with plan and Terran Air now producing concentrates as it approaches the final stages of construction, we're quickly approaching a major milestone. The addition of this transformational asset will soon become a key contributor to our production profile, marking significant steps forward in our growth strategy. In Q1, Endeavor produced 1.2 million ounces of silver and 8,300 ounces of gold, totaling 1.9 million silver equivalent ounces. We reported revenue of $64 million in line with the prior year, benefiting from the higher precious metal prices. Direct offering costs per ton increased by 6% compared to Q1 2024, caused by 6% lower throughput, while total direct offering costs remained relatively slack. The company reported a net loss of $32.9 million for the period, primarily due to the unrealized non-cash impact of gold hedging and four swap contracts entered into March 2024. These contracts, which relate to the portion of the forecasted gold production from the Terran Air project, were implemented as part of the senior debt facility used to finance its construction. As gold rose from $2,600 to $3,100 in the quarter, the loss reflects a mark-to-market accounting adjustment and does not represent cash overflows. Excluding mark-to-market adjustments, the company reported a small adjusted loss of $200,000 compared to incomes of $300,000 in Q1 2024. Cash costs were $15.89 per ounce of silver, and all entertaining costs were $24.48. Net of gold credits, both slightly below annual guidance, primarily driven by the higher byproduct gold credits. As of March 31, 2025, the company's cash position was $55 million, and working capital was $15 million. Cash and working capital decreased from September 31st, 2024, as the company continued investing in development activities at Terranera. Terranera is in its final phases of construction and started producing its first fast concrete at the end of Q1, and as of our latest news release on May 6th, commissioning is currently underway. Terranera represents a game-changing opportunity for Endeavor Silver. and is poised to redefine the trajectory of our company. As we move closer to commercial production, we remain excited about the transformational impact this asset will have on our business. With a projected mine life span of well over a decade, Terranero will serve as a long-term cornerstone asset in our portfolio, underpinning our growth strategy and reinforcing our position as a leading mid-tier silver producer. As the commissioning phase progresses, potential will be driven to increasing fees, and runtime, and ramping up to full throughput. The company will provide operational guidance as ramp-up advances. On April 1st, we announced the acquisition of the Colpa mine in Peru, and on May 1st, we closed that transaction. We're excited about the addition of Colpa to Endeavor's operating and growth pipeline as it significantly enhances our current production profile, with significant exploration upside and existing infrastructure for a long mine life. Coldwell represents a compelling opportunity where we can leverage our proven technical expertise and development capabilities. The project aligns with our existing operations and supports our strategy of building a scalable, silver-dominant asset base. The company is working towards validating and updating the historical resource estimates prepared for the previous honors. In the meantime, using CULPA's 2024 annual production of 5 million silver equivalent ounces as a guide, and with Terranair expected to come online in the near term, we are well positioned for a significant step change in production. When combined with our two producing assets, Squanus P and Volneos, Endeavor is on track to achieve annualized production of approaching 20 million silver equivalent ounces. With that, I'm happy to open up to questions.