Endeavour Silver Corp (EXK) 2008 Q2 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the Endeavour Silver Corp. second-quarter financial statement review conference call. I would now like to turn the meeting over to Mr. Godfrey Walton, President and COO of Endeavour Silver Corp. Please go ahead, Mr. Walton.

Thank you very much, Michelle. Good morning and welcome. I have with me here in the office Hugh Clarke and Dan Dickson, and now on the line is also Bradford Cooke.

I just want to go over some of the highlights of the second quarter. And really it is -- a real summary of second quarter is that we stayed according to our plan. We developed a plan. We had mentioned that we would have two quarters that were a little lower than the rest of the year, and that is what we have done. We have managed to improve slightly with our production and we have done well with our revenues. That is really what the first highlight is, is our mineral sales jumped 58% to $10.1 million compared to second quarter 2007.

Our silver production is up as well; compared to 2007 second quarter, we are up 20%. Up slightly in first quarter 2008 by about 2%. Our mine earnings have increased 171% to $1.9 million compared to second quarter 2007.

And our cash costs are dropping. It is something that we had talked about in previous quarters. We are down 1% to $9.62 per ounce second quarter 2007, and we also fell 4% from first quarter 2008. So they are coming down and we are getting a better handle on our costs, and we are also increasing our production, which are two factors that play into reducing the cash costs.

The mine output, the planned throughput and silver production grades at Guanajuato have been increasing, and that is really a function of finishing the capital projects. Primarily the shafts -- bringing those back online in June really made a big difference to the second quarter and allowed us to start being able to produce at a reasonable rate. And we expect that to continue and to grow as the year goes on.

Our overhead costs have declined. G&A down by 22% and stock-based compensation is down as well. Working capital at the end of second quarter was $16.8 million, which include $10.7 million in cash and cash equivalents.

And exploration, we have announced a couple of new areas. One in Guanajuato, the 3785 area; we have managed to expand that and we are working at being able to bring that into production sometime later this year.

In San Pedro, we have been successful there and we have several areas where we have had some very encouraging drill results. We are now doing more work on those and I think you can expect to see some more drill results in the near future, based on that.

I would like now to turn it over to Dan, if Dan can just comment on some of the costs for the second quarter.

Sure, Godfrey. Thanks. I think the main highlight that Godfrey hit was that our cash costs are coming down -- $9.62 consolidated for the quarter. And the main driver of that was Guanajuato producing more ounces; that brought its cash costs down almost double, from the mid-20s down to $12 for the quarter. So that is very encouraging.

The other side is any of the profits that we have made through our operations, we are putting back into our exploration program, as Godfrey alluded to, with the San Pedro and Guanajuato exploration programs, which are coming along and being quite encouraging for management. So if we strive to stay to our plan, we should reach our goals for the year.

Okay. Thanks very much, Dan. Any other comments? Okay. I think at this point maybe we will turn it over to -- or open it up for questions.

(Operator Instructions). There are no further questions registered for the moment, sir.

Okay. Well, thank you very much. Thank you all for attending and we look forward to a good third quarter.

Thank you. The conference is now ended. Please disconnect your lines at this time. We thank you for your participation.