Endeavour Silver Corporation

Thank you for standing by. This is the conference operator. Welcome to the Endeavor Silver third 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. If you do 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 Alison Perret, Vice President of Investor Relations. Go ahead.

Thank you, Operator, and good morning, everyone. Before we get started, I ask that you view our MD&A for cautionary 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 edrsilver.com. On today's call, we have Dan Dixon, Endeavour Silver's Chief Executive Officer, Elizabeth Senes, our Chief Financial Officer, and Don Gray, Endeavour's Chief Operating Officer. Following Dan's formal remarks, we will open the call for questions. And now, over to Dan.

Thank you, Alison, and welcome, everyone. Q3 has been a transformational quarter at Endeavour Silver. With Terranera now in commercial production and Colpa's first full quarter under our production profile, we have significantly expanded our operational capabilities and strengthened our position in the market. This progress sets the stage for continued growth and improved performance as we move forward. In Q3, Endeavor produced 1.8 million ounces of silver, 7,300 ounces of gold, totaling approximately 3 million silver equivalent ounces. This does not include Terranera and represents an 88% increase compared to Q3 2024, primarily due to the addition of the Culpa mine and full quarter production from Guanicevi. We reported revenue of $111 million, an increase of 109% compared to the prior year, benefiting from the higher precious metal prices and increased production profile. Mine operating cash flow before working capital changes rose by 102%. while cash costs increased to $18 of payable silver ounce. The increase is driven by the impact of higher royalties, higher profit participation, and higher costs of third-party mineralized material during the quarter, coupled with lower grades processed at Guaraná City and Balanitos. All-in sustaining costs increased from the same quarter in 2024 to $30.53 per ounce. Net of byproduct credits due to a number of factors, including elevated exploration at COLPA to validate historical resources, initial capital investment to upgrade facilities, and an increase in treatment and refining charges. All in sustaining costs include $2.3 million of mark-to-market charge in the quarter for deferred share units granted in previous periods within G&A. Mine operating earnings increased to $15.6 million from $12.5 million in Q3 2024 due to the higher operating earnings out of Bolognese and Guantanamo, as well as $3.9 million in operating earnings from Copa. Offset by Terranera's mine operating loss of $3.6 million during the commissioning period. The company reported a net loss of $37.5 million for the period after a loss on derivative contracts of $39 million. As previously reported, the company entered into four gold sales as part of the project loan facility in March 2024, and gold was trading at $2,325. As of September 30th, the company's cash position was $57 million. And on October 16th, the company announced that Terran Air was officially reached commercial production following a successful commissioning phase. During commissioning, the operation performed at an average of 90% of its design capacity of 2,000 tons per day, while also achieving at least 90% of its projected metal recoveries. This achievement not only underscores a transformational milestone for the company, but also represents a pivotal moment in our corporate strategy, further strengthening our position as a leading mid-tier silver producer. The company forecasts throughput of approximately 350,000 tons over the next six months, with average grades estimated to be about 120 grams per tonne silver and 2.5 grams per tonne gold. These higher-grade zones are scheduled to be accessed in mid-2026. During this period, the operating team will be working to refine and optimize the operating processes, incrementally improving throughput, recoveries, and our operating processes and efficiencies. In January of 2026, the company will issue annualized 2026 production and cost guidance for Terranera with our consolidated guidance. Since completing the Monero-Colpa acquisition on May 1st, the integration of the asset and the team has progressed smoothly. On September 25th, the company announced positive drill results from its ongoing exploration program at Colpa. demonstrating outstanding potential. The exploration program is designed to target potential while also completing work to validate historical resource estimates. Part of the acquisition agreement includes $12 million of exploration spend to validate the historical resources over 24 months. In Q3, we incurred $1.5 million, which is included for infill and step-out drilling. In Q3 2025, Colpa produced 1.3 million silver equivalent ounces, including its base metals, continuing to remain on track to align with Colpa's historical performance benchmarks of 5 million silver equivalent ounces. Grades were marginally lower than expected, however, throughput was slightly higher, resulting in slightly higher cash costs per ounce than the historical site trend and management's expectations. Additionally, investments are being made to modernize some parts of the plant and surrounding infrastructure to support a potential increase in production. The mine received permits to increase throughput to 2,500 tons per day, and the team is executing improvements in the mill and the mine to support an expansion. Management expects to complete its evaluation of an expanded operation late this quarter. Lastly, before we open the call to questions, we continue to advance PIT3F and are excited for the next chapter as we move this project forward. Focusing on the upgrading the inferred resources to indicate it while engineers are working on various studies to support a tailings dam permit and a feasibility study to be published mid-2026. With that operator, I'd like to open up to questions.