Endeavour Silver Corp (EXK) 2023 Q2 法說會逐字稿

Thank you for standing by. This is the conference operator. Welcome to the Endeavour Silver Corp. Second Quarter 2023 Financial Results Conference Call. (Operator Instructions) The conference is being recorded.

謝謝你的支持。這是會議操作員。歡迎參加 Endeavor Silver Corp. 2023 年第二季度財務業績電話會議。 （操作員指示）會議正在錄製。

(Operator Instructions) I would now like to turn the conference over to Galina Meleger, Vice President of Investor Relations. Please go ahead.

（操作員指示）我現在想將會議轉交給投資者關係副總裁 Galina Meleger。請繼續。

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.

謝謝接線員，大家早上好。在我們開始之前，我要求您查看我們的 MD&A，了解有關前瞻性陳述以及與這些陳述相關的風險因素的警示性語言。我們的 MD&A 和財務報表可在我們的網站 edrsilver.com 上獲取。

With us on today's call is Dan Dickson, Endeavour's CEO; Christine West, our Chief Financial Officer; and Don Gray, Endeavour's COO. Following Dan's formal remarks, we will open the call for questions. And now over to Dan.

參加今天電話會議的是 Endeavour 首席執行官丹·迪克森 (Dan Dickson)。 Christine West，我們的首席財務官；以及 Endeavour 的首席運營官 Don Gray。在丹正式發言後，我們將開始提問。現在輪到丹。

Thank you, Galina, and welcome, everyone. I would like to start by acknowledging the tremendous achievements we made at Terronera in Q2 which advances our strategy in pursuing high-margin production growth. During the quarter, we obtained formal Board approval, committed to project loan financing, established a seasoned team and now construction is well underway. Terronera is a unique opportunity that will reposition the company to generate significant free cash flow, bringing us one step closer to achieving our mission of becoming a premier senior silver producer.

謝謝你，加琳娜，歡迎大家。首先，我要感謝 Terronera 在第二季度取得的巨大成就，這推動了我們追求高利潤產量增長的戰略。本季度，我們獲得了董事會的正式批准，致力於項目貸款融資，建立了一支經驗豐富的團隊，目前建設工作正在順利進行。 Terronera 是一個獨特的機會，它將重新定位公司，以產生大量的自由現金流，使我們更接近實現成為一流高級白銀生產商的使命。

Nevertheless, despite continued positive production performance, the headline for this quarter continues to be pressure on costs. As a company with operations in Mexico, we are facing the challenge of rising costs, for which we remain vigilant to mitigate the impacts. Like all our peers, macroeconomic factors such as industry-wide inflation and a strengthening Mexican peso have continued to put pressure on consumables and labor costs across our operations. Unfortunately, we expect these trends to continue for the near term.

然而，儘管生產表現持續積極，但本季度的頭條新聞仍然是成本壓力。作為一家在墨西哥開展業務的公司，我們面臨著成本上升的挑戰，對此我們仍保持警惕，以減輕影響。與我們所有的同行一樣，全行業通脹和墨西哥比索走強等宏觀經濟因素繼續給我們整個業務的消耗品和勞動力成本帶來壓力。不幸的是，我們預計這些趨勢在短期內將持續下去。

In terms of production, consolidated Q2 silver equivalent production was up 8% year-over-year to 2.3 million silver equivalent ounces, bringing us to 4.7 million silver equivalent ounces for the first half of the year. This performance puts us well and in line to achieve this year's production guidance of 8.6 million to 9.5 million silver equivalent ounces. Compared to the same period prior year, both silver and gold production are up 10% and 6%, respectively.

在產量方面，第二季度白銀當量綜合產量同比增長 8%，達到 230 萬白銀當量盎司，上半年白銀當量達到 470 萬盎司。這一業績使我們能夠很好地實現今年 860 萬至 950 萬銀當量盎司的產量指導。與去年同期相比，白銀和黃金產量分別增長了10%和6%。

While our Guanaceví operation was generally in line, higher tonnes milled were offset by lower grades. Adjustments to the mine sequencing during the quarter resulted in lower grades compared to our planned and recent quarters. However, we expect to return to higher grades for both the third and fourth quarters. As compared to Q1, both silver and gold grades decreased by 20% in Q2.

雖然我們的Guanaceví 工廠總體正常，但較高的研磨噸數被較低的品位所抵消。本季度對礦山排序的調整導致品位低於我們的計劃和最近幾個季度。然而，我們預計第三季度和第四季度將恢復到更高的成績。與第一季度相比，第二季度白銀和黃金品位均下降了 20%。

Performance of our other operating mine, Bolañitos, remains steady. Increased gold production was offset by lower silver production in Q2. The Bolañitos operations team continued a strong effort to meet or beat their targets, including mined and processed tonnes.

我們的另一個運營礦山 Bolañitos 的業績保持穩定。第二季度黃金產量的增加被白銀產量的下降所抵消。 Bolañitos 運營團隊繼續努力實現或超越他們的目標，包括開采和加工的噸數。

Moving to our financials. We reported top line revenue of $50 million, with a cost of sales of $37.5 million for operating earnings of $12.5 million. After exploration, G&A and other expenses, we reported a net loss of $1.1 million or negative $0.01 per share. Excluding noncash mark-to-market adjustments on marketable securities, our adjusted earnings totaled $2.1 million or $0.01 per share this quarter.

轉向我們的財務狀況。我們公佈的營收為 5000 萬美元，銷售成本為 3750 萬美元，營業利潤為 1250 萬美元。扣除勘探、一般管理費用和其他費用後，我們報告淨虧損 110 萬美元，即每股負 0.01 美元。不包括有價證券的非現金按市價調整，本季度調整後收益總計 210 萬美元，即每股 0.01 美元。

At the site level, Guanaceví delivered mine free cash flow of $5 million and Bolañitos was pretty much breakeven. Regarding operating costs, we've seen pressures across several inputs. Our direct cost per tonne were up 15% this quarter. At the time of guidance, our inflation assumptions were 5%. However, year-to-date, we've seen those costs -- the costs of key inputs like steel used for ground support and consumables such as zinc and cyanide continue to increase well above our assumption.

在現場層面，Guanacevá 為礦山提供了 500 萬美元的自由現金流，而 Bolañitos 幾乎實現了盈虧平衡。關於運營成本，我們已經看到了多個投入方面的壓力。本季度我們每噸的直接成本上漲了 15%。在發布指導時，我們的通脹假設為 5%。然而，今年迄今為止，我們已經看到了這些成本——用於地面支撐的鋼材等關鍵投入的成本以及鋅和氰化物等消耗品的成本繼續增長，遠遠超出了我們的假設。

Additionally, labor costs are having a significant effect with the strengthening of the Mexican peso. The peso has strengthened to a 7-year high. Originally, our 2023 guidance had assumed a 21:1 Mexican peso to U.S. dollar exchange rate. However, we're currently looking at 17:1. This is up 14% year-to-date, which is increase in our local cost in U.S. dollar terms. All these factors manifest themselves into overall higher costs. Both quarterly cash costs and the all-in sustaining costs are above our upper bounds of our guidance at $13.52 per ounce for cash costs and $22.15 per ounce for silver all-in sustaining cost per ounce.

此外，隨著墨西哥比索的走強，勞動力成本也產生了重大影響。比索已升至七年來的新高。最初，我們的 2023 年指導假設墨西哥比索兌美元匯率為 21:1。然而，我們目前正在考慮 17:1。今年迄今為止，這一數字增長了 14%，這是我們以美元計算的當地成本的增長。所有這些因素都會導致總體成本上升。季度現金成本和總體維持成本均高於我們指導的上限，即現金成本為每盎司 13.52 美元，白銀總體維持成本為每盎司 22.15 美元。

As a result, management expects costs to be higher than cost metrics previously provided in our 2023 guidance. Inflation is an industry-wide issue that's expected to persist throughout the year. We're closely reviewing our purchasing practices to see where and how we can mitigate the impact. Containing costs will continue to be a key focus as we work to improve the efficiencies of our operations. Management anticipates cost metrics for the remainder of the year to align with H1 2023 actual costs.

因此，管理層預計成本將高於我們之前在 2023 年指南中提供的成本指標。通貨膨脹是一個全行業的問題，預計將持續一整年。我們正在仔細審查我們的採購實踐，看看我們可以在哪里以及如何減輕影響。在我們努力提高運營效率的過程中，控製成本將繼續成為重點關注的問題。管理層預計今年剩餘時間的成本指標將與 2023 年上半年的實際成本保持一致。

At June 30, we had cash on hand of $43 million and a working capital of $78 million. To maintain flexibility on project execution, we initiated a $60 million ATM filing in Q2. Completion of the definitive loan documentation for the $120 million senior secured debt facility is expected soon, with closing and drawdown expected in Q3. After the quarter, we further enhanced our liquidity by selling a 1% stake in Capstone's Cozamin Royalty to Gold Royalty Corp. This sale will bring in a cash injection of $7.5 million in Q3. We originally obtained that royalty through a concession division agreement back in 2017 for less than $500,000.

截至 6 月 30 日，我們手頭現金為 4300 萬美元，營運資金為 7800 萬美元。為了保持項目執行的靈活性，我們在第二季度啟動了 6000 萬美元的 ATM 備案。 1.2 億美元高級擔保債務融資的最終貸款文件預計很快就會完成，預計將在第三季度完成並提款。本季度後，我們將 Capstone 旗下 Cozamin Royal 的 1% 股份出售給 Gold Royal Corp，進一步增強了我們的流動性。此次出售將為第三季度帶來 750 萬美元的現金注入。我們最初是在 2017 年通過特許分割協議以不到 50 萬美元的價格獲得了該特許權使用費。

Let me give you a quick update on construction at Terronera. At the end of Q2, we reached 30% completion. We have spent $70 million to the end of Q2 on direct development. Project commitments totaled $144 million, and we are tracking in line with the optimized plan both on timing and on budget. During the quarter, we had steady momentum on engineering, surface construction at the plant site, mine development and establishing internal processes to best execute the project. If you're interested in seeing photos of the construction progress, I encourage you to visit our website under the Terronera page.

讓我向您簡要介紹一下 Terronera 的建設情況。第二季度末，我們完成了 30%。到第二季度末，我們已花費 7000 萬美元用於直接開發。項目承諾總額為 1.44 億美元，我們正在按照優化計劃的時間和預算進行跟踪。本季度，我們在工程、廠區地面施工、礦山開發和建立內部流程方面保持了穩定的勢頭，以最好地執行項目。如果您有興趣查看施工進度的照片，我鼓勵您訪問我們的 Terronera 頁面下的網站。

A quick recap. On-site personnel has increased to over 450 employees and contractors. Detailed mill and surface facilities engineering is over 70% complete. Engineering was finalized to request proposals for the mill construction contract, including structural steel, mechanical, piping, electrical and instrumentation. Access road construction is substantially complete. The focus on early road improvements have greatly facilitated construction ramp-up, especially prior to the rainy season.

快速回顧一下。現場人員已增至 450 多名員工和承包商。詳細的磨機和表面設施工程已完成 70% 以上。工程已最終確定，以徵求工廠建設合同的建議書，包括鋼結構、機械、管道、電氣和儀表。進場道路建設已基本完成。對早期道路改善的關注極大地促進了施工進度，特別是在雨季之前。

The camp to accommodate 550 personnel is substantially complete. Nearly all dormitory units have been installed. Several final living units remain pending. Mine development is advancing on 2 fronts, with over 600 meters completed as at June 30. In the meantime, a new portal is being prepped to access the lower part of the ore body. Bulk earthworks for the planter is nearing completion with nearly 300,000 cubic meters of material moved. Excavations were completed for the course or reclaim tunnel, grinding areas and now rebar installation has begun.

可容納550名人員的營地已基本完工。幾乎所有宿舍單位都已安裝完畢。幾個最終的居住單元仍有待確定。礦山開發正在兩條線上推進，截至 6 月 30 日已完成 600 多米。與此同時，正在準備一個新的入口以進入礦體下部。播種機的散裝土方工程已接近完成，已搬運近 300,000 立方米的材料。球場或回收隧道、研磨區域的挖掘工作已經完成，現在鋼筋安裝已經開始。

On the procurement side, deliveries are advancing on schedule with shipments arriving at the company's laydown warehouse. Major equipment deliveries in Q2 include jaw and pebble crushers, vibrating screens, flotation cells and the concentrate bag system. And lastly, on the community side, we continue to partner with local schools to support education campaigns and cultural celebrations.

在採購方面，交貨正在按計劃進行，貨物已抵達公司的儲備倉庫。第二季度交付的主要設備包括顎式破碎機和卵石破碎機、振動篩、浮選機和精礦袋系統。最後，在社區方面，我們繼續與當地學校合作，支持教育活動和文化慶祝活動。

Looking ahead, our main focus is now progressing mine development, advancing concrete work for the mill platform and awarding the mill construction contract which will kick off the next major phase of construction.

展望未來，我們現在的主要重點是推進礦山開發、推進磨機平台的具體工作以及授予磨機建設合同，這將啟動下一個主要建設階段。

I think that wraps up today's formal comments. Myself, Dan and Christine are happy to answer any questions that you may have. Operator, could you please open it up for Q&A?

我想今天的正式評論就到此結束了。我本人、丹和克里斯汀很樂意回答您的任何問題。接線員，您能打開它進行問答嗎？

(Operator Instructions) The first question comes from Heiko Ihle with H.C. Wainright.

（操作員說明）第一個問題來自 Heiko Ihle 和 H.C.溫賴特。

I assume you can hear me okay?

我想你能聽到我說話好嗎？

We can you hear you well, Heiko.

我們可以聽清楚你的聲音，Heiko。

Excellent. On Terronera, I went through your July press release again earlier today, and I compared it with your note today. I mean, Dan also, you obviously provided some more color earlier on this call as well, but I still got to ask, are there any factors that are giving you a bit of a headache both from an availability and pricing point of view?

出色的。關於 Terronera，我今天早些時候再次瀏覽了你們 7 月份的新聞稿，並將其與你們今天的說明進行了比較。我的意思是，丹，你顯然在這次電話會議的早些時候也提供了更多的信息，但我仍然要問，從可用性和定價的角度來看，是否有任何因素讓你有點頭疼？

It seems like the camp is mostly done and mine development continues at a good pace. But is there anything that we should maybe know about? I assume the answer is no, but I just want to double check.

營地似乎已基本完工，礦山開發仍在以良好的速度進行。但有什麼我們應該知道的嗎？我認為答案是否定的，但我只是想仔細檢查一下。

No, it's a fair question. I mean, like you say, we're seeing a lot of inflation across our operations. I think Dan and his team have done a really good job from a procurement standpoint and being ahead of the game, and locking a lot of our key components in. And I've mentioned this in the prior calls and prior press releases that our entire mobile fleet has already been on site. A lot of the key components of the plant have been procured quite early on and expect delivery here in -- well, we got some in Q2 and in back half of the year, the remaining will come. And a lot of that -- those components or key purchases have come in line with what our expectations were, come in line with what our optimized plan is and the feasibility study.

不，這是一個公平的問題。我的意思是，就像你說的，我們的業務中出現了嚴重的通貨膨脹。我認為丹和他的團隊從採購的角度來看做得非常好，並且處於領先地位，並鎖定了我們的許多關鍵組件。我在之前的電話會議和之前的新聞稿中提到了這一點，我們整個移動車隊已經到達現場。該工廠的許多關鍵部件已經很早就採購完畢，預計將在第二季度交付，剩下的將在今年下半年交付。其中很多 - 這些組件或關鍵採購符合我們的預期，符合我們的優化計劃和可行性研究。

So we did a really good job with that. Now there's always things that we get are concerned with, and that's our job as management and making sure that we hit our mine development headings and the rates and executing on that over the next 1 year, 1.5 years will help us be on time and on budget for Terronera.

所以我們在這方面做得非常好。現在總有一些事情是我們關心的，這就是我們作為管理層的工作，確保我們達到礦山開發目標和速度，並在未來 1 年、1.5 年執行這些任務將幫助我們按時按時完成任務。泰羅內拉的預算。

Of course, there are some things that we win on and hopefully, there are some things -- or things that we'll lose on and hopefully, there'll be things that we win on from a cost standpoint. But at this point in time, and it's early, like I say, we're only 30% complete at Terronera. We feel like we're tracking very well to what budgets have been.

當然，有些事情我們會贏，但希望有些事情我們會輸，但從成本的角度來看，希望有些事情我們會贏。但就目前而言，正如我所說，現在還為時過早，我們在 Terronera 只完成了 30%。我們覺得我們很好地跟踪了預算。

That was a very nice lead over to my next question. Obviously, the Mexican peso has increased quite a bit. You mentioned earlier in this call and also in your release, we were at 17.12 right now. What are you using in your model for the remainder of the year? And I don't know if you have a longer-term modeling number for the peso as well, please?

這很好地引導了我的下一個問題。顯然，墨西哥比索已經上漲了不少。您之前在本次電話會議以及您的新聞稿中提到，我們現在處於 17.12 點。今年剩下的時間裡，你的模型中會使用什麼？我不知道您是否也有比索的長期模型數字？

Yes. For the remainder of our year, we're generally putting our cost guidance right around what we did with H1. So we averaged just above $17 for H1, maybe it's closer to $18, so (inaudible) is probably be comfortable saying that. For long term, we'll look at that at the end of the year. We're kind of going through our budgets for 2024 at this point and just getting that kicked off. Through different discussions with various banks, we do expect the peso to continue that depreciation that we've seen for the last 20 years. But again, we don't have a crystal ball when does that turn around and we no longer see appreciation in the peso. It's hopefully in the next 6 months, but again, don't have a crystal ball on that. And when we come out with guidance for 2024, we typically state what we're using for an FX rate at that time.

是的。在今年剩下的時間裡，我們通常會根據上半年的情況制定成本指導。因此，我們上半年的平均價格略高於 17 美元，也許更接近 18 美元，所以（聽不清）這麼說可能很舒服。從長遠來看，我們將在今年年底考慮這一點。目前我們正在審查 2024 年的預算，並剛剛開始。通過與各銀行的不同討論，我們確實預計比索將繼續像過去 20 年那樣貶值。但同樣，我們沒有水晶球，這種情況什麼時候會扭轉，我們不再看到比索升值。希望在接下來的 6 個月內實現，但同樣，這也沒有水晶球。當我們發布 2024 年指導時，我們通常會說明當時使用的外匯匯率。

The next question comes from Craig Hutchison with TD Securities.

下一個問題來自道明證券的 Craig Hutchison。

Just on Terronera with regards to the Mexican peso, can you give us a sense of how much is exposed to, I guess, domestic currency, the peso, versus how much is exposed to the U.S. dollar?

就在 Terronera 上關於墨西哥比索的問題，您能否讓我們了解一下，我猜，本國貨幣比索的敞口有多少，而美元的敞口有多少？

Yes. I mean, obviously, labor costs are significantly exposed to the peso compared to the dollar. A lot of the items that we've procured have been in U.S. dollars, and we've committed $144 million of the $230 million. So for the $90 million left to be exposed, we're expecting somewhere between $30 million and $50 million to be tied to the Mexican peso. So not significant at this point in time in time.

是的。我的意思是，顯然，與美元相比，勞動力成本明顯受到比索的影響。我們採購的很多物品都是用美元購買的，我們已經承諾了 2.3 億美元中的 1.44 億美元。因此，對於剩下的 9000 萬美元，我們預計有 3000 萬至 5000 萬美元與墨西哥比索掛鉤。所以在這個時間點並不重要。

Okay. Great. And then in terms of your operations, is it -- what's the kind of rough breakdown at Guanacevi and Bolañitos in terms of the exposure?

好的。偉大的。然後就你們的運營而言，Guanacevi 和 Bolañitos 的暴露情況大致是怎樣的？

Yes. Yes. 30% to 35% of our -- I think Bolañitos around 32% and Guanacevi a little bit higher, around 34% or 35% of our costs are incurred in labor. Obviously, labor is completely exposed. So for the remaining 65%, about half is tied to the Mexican peso. So in total, you're looking at 55% to 65% of our costs are tied to the Mexican peso.

是的。是的。我們的 30% 到 35%——我認為 Bolañitos 大約為 32%，Guanacevi 更高一些，大約 34% 或 35% 的成本是由勞動力產生的。顯然，勞動是完全暴露的。因此，對於剩下的 65%，大約一半與墨西哥比索掛鉤。因此，總的來說，我們 55% 到 65% 的成本與墨西哥比索相關。

And just on the financing, and just you talked about the inflation and some pressures you've seen on FX. Is there a potential to upsize that from the $120 million that's sort of been agreed to at this point? Or has it sort of been finalized, and that's the number we can expect?

就融資而言，您剛剛談到了通貨膨脹以及您在外匯方面看到的一些壓力。是否有可能在目前已同意的 1.2 億美元基礎上增加資金規模？還是已經敲定了，這是我們可以期待的數字？

Yes. No, it's been finalized. And I think for us, as the management team, we think that's kind of the upper end that we want to take on from a debt standpoint. We did put in the $60 million ATM facility that we haven't drawn on to give ourselves protection. Ultimately, if we do end up above the $230 million, we prefer that to come from equity just because we don't want to get too levered to debt.

是的。不，已經確定了。我認為對於我們來說，作為管理團隊，我們認為從債務的角度來看，這是我們想要承擔的上限。我們確實投入了 6000 萬美元的 ATM 設施，但我們沒有動用這些設施來保護自己。最終，如果我們的收入確實超過了 2.3 億美元，我們更願意通過股權來籌集資金，因為我們不想負債過高。

The next question comes from Lucas Pipes with B. Riley Securities.

下一個問題來自 B. Riley Securities 的 Lucas Pipes。

I also wanted to start out on the cost side and maybe more broadly, kind of what sort of measures you're taking today to ring-fence cost inflation? Are there things you're looking at the operational level? I would appreciate any additional color you might be able to share.

我還想從成本方面開始，或許更廣泛地說，你們今天採取了什麼樣的措施來遏製成本通脹？您正在關注運營層面的一些事情嗎？如果您能分享任何其他顏色，我將不勝感激。

Yes. Thanks, Lucas. It's a difficult thing to ring-fence inflation and ultimately, the strengthening of the Mexican peso when it comes to labor. But from an efficiency standpoint and making sure we're operating as best we can, I think we've done that well at Bolañitos. At Guanaceví, we can be better at that. We're looking at improving our ventilation and our pumping, reducing our electricity usage with pumping and being more efficient in that standpoint. We're also looking to be more efficient on our advances underground, making sure that we have -- we're using the right amount of explosives, right amount of steel rather than potentially using more than what we should have been.

是的。謝謝，盧卡斯。遏制通貨膨脹並最終遏制墨西哥比索在勞動力方面的走強是一件困難的事情。但從效率的角度來看，並確保我們盡最大努力運營，我認為我們在 Bolañitos 做得很好。在瓜納塞維，我們可以在這方面做得更好。我們正在考慮改善通風和泵送，減少泵送用電量，並從這個角度提高效率。我們還希望提高地下開采的效率，確保我們使用適量的炸藥、適量的鋼材，而不是潛在地使用超出我們應有數量的東西。

And so I think it's really an efficiency standpoint from our operations team that we can find little wins here and there and whether it's about the inputs going into the number of units that we're using as opposed to those costs of those units. Because there's only so much you can do from a -- like, for example, the strengthening of the peso, our labor cost, we need those labors. The question is, do we need as much labor as what we have. That's where we can make those adjustments.

因此，我認為從我們的運營團隊的效率角度來看，我們到處都找不到什麼勝利，這是否與我們正在使用的單位數量的投入有關，而不是這些單位的成本有關。因為你能做的只有這麼多——比如，比索走強，我們的勞動力成本，我們需要這些勞動力。問題是，我們需要的勞動力是否與現有的一樣多？這就是我們可以進行調整的地方。

Of course, we've been kind of in a good fortune, like Guanacevi, the discoveries we've made in 2019 in the high grade. I think some of that grade is going to pick up in the back half of the year that will improve our cost on a per ounce basis. It's little things and being vigilant on those little things and making sure we're operating as best as we can.

當然，我們有點幸運，就像瓜納塞維一樣，我們在 2019 年做出了高等級的發現。我認為其中一些品位將在今年下半年回升，這將提高我們每盎司的成本。這是一些小事情，對這些小事情保持警惕，並確保我們盡可能地運作。

And a follow-up on Guanaceví. The higher grades with the El Curso ore body. How sustainable is that over the -- you mentioned the back half of the year, but as we look into 2024, should we continue to see those benefits improve or kind of stabilize the second half level?

還有瓜納塞維的後續行動。 El Curso 礦體品位較高。您提到了下半年，這種情況的可持續性如何，但當我們展望 2024 年時，我們是否應該繼續看到這些效益改善或在下半年穩定水平？

Yes, I think it would stabilize. We do have a good life with El Curso remaining. I mean, obviously, we have Milache, we have Santa Cruz Sur, other areas that we're able to mine, but Santa Cruz or El Curso is kind of the heart of where our production is coming from, and that will continue for the foreseeable future, especially into 2024 and 2025.

是的，我認為它會穩定下來。有了埃爾庫索，我們確實過著美好的生活。我的意思是，顯然，我們有 Milache，我們有 Santa Cruz Sur，以及我們能夠開采的其他地區，但 Santa Cruz 或 El Curso 是我們生產的核心，這將持續下去可預見的未來，特別是2024 年和2025 年。

I appreciate that. And then one quick last one from me. Just with Pitarrilla, what's the outlook there and major milestones for the market to look forward to?

我很感激。然後是我的最後一篇。就 Pitarrilla 而言，該市場的前景和值得期待的主要里程碑是什麼？

Yes. No, that's a very fair question. I'm glad you brought that up. Well, for us, Pitarrilla, as most of our listeners probably know, we purchased that in 2023 for $70 million, and we've really been pushing there. And to the end of 2023 and early 2024, we did a lot of relogging of the historical data. And for this year, we have $3.3 million budget, and most of that's to push the ramp to what we think is or what our predecessors thought were as a manto zone and it was about 300 meters away to get there.

是的。不，這是一個非常公平的問題。我很高興你提出這個問題。好吧，對我們來說，Pitarrilla，正如我們大多數聽眾可能知道的那樣，我們在 2023 年以 7000 萬美元的價格購買了它，並且我們一直在努力推動這一目標。到2023年底和2024年初，我們對歷史數據進行了大量的重新記錄。今年，我們有 330 萬美元的預算，其中大部分用於將坡道推至我們認為的或我們的前任認為的曼托區，距離大約 300 米。

We've had some delays. We've had some workarounds on the old historical ramp. It looks like we're going to have to push a parallel ramp, which means rather than being 300 meters, we'll have to be 500 to 600 meters ourselves, which will delay our drilling program and end up being either late Q4, more likely into 2024. So we're not going to have as much news on Pitarrilla this year, which was expected kind of the end of the year from a drilling standpoint and an economic analysis next year.

我們遇到了一些延誤。我們在舊的歷史坡道上有一些解決方法。看起來我們將不得不推動一個平行坡道，這意味著我們自己必須達到 500 到 600 米，而不是 300 米，這將推遲我們的鑽探計劃，最終要么在第四季度末，要么更晚。可能會持續到2024 年。因此，今年我們不會有太多有關Pitarrilla 的新聞，從鑽探的角度和明年的經濟分析來看，預計會在今年年底。

So I'll push into next year just because of this ramp. But we do have big expectations still with Pitarrilla. Obviously, we've defined a resource of over 600 million ounces, but we are looking at an expectation of seeing if we can make this an underground operation similar to what Silver Standard had looked at back in 2009. Obviously, I always wish things went faster than what sometimes they do. And hopefully, we can still get through that economic analysis in 2024.

所以我會因為這個斜坡而推遲到明年。但我們對 Pitarrilla 仍然抱有很大的期望。顯然，我們已經定義了超過 6 億盎司的資源，但我們正在期待是否可以將其變成類似於銀標在 2009 年所看到的那樣的地下作業。顯然，我總是希望事情進展順利比他們有時做的更快。希望我們仍能在 2024 年完成該經濟分析。

I really appreciate all the color and detail. To you and to team, best of luck.

我真的很欣賞所有的顏色和細節。祝你和團隊好運。

The next question comes from Justin Stevens with PI Financial.

下一個問題來自 PI Financial 的 Justin Stevens。

Most of my questions have been crossed off, but I got one last one. Obviously, the Guanacevi grades took a hit in Q2, but you're expecting an uptick in Q3 and beyond. Was the sequencing impact there mostly development related? And if so, do you think you'll be able to sort of stay ahead and keep enough stopes and high-grade sections to keep that grade pretty flat going forward?

我的大部分問題都被劃掉了，但我得到了最後一個。顯然，Guanacevi 的成績在第二季度受到了打擊，但您預計第三季度及以後會有所上升。測序影響主要與發展有關嗎？如果是這樣，您認為您是否能夠保持領先並保留足夠的採場和高品位部分以保持該品位在未來保持平穩？

Yes. A couple of factors went into that sequencing. We actually lost one of our high-grade stopes. And we've had spent a lot of Q2 cleaning that up and refixing up, so we can go back in here in Q3. Development has been a little bit behind, but not terribly behind, but we are -- we have a recovery plan to make sure our development stays ahead so we don't have these changes in our plans -- our mine plan sequencing and it's kind of the bugaboo of all underground operations and making sure that we have sufficient mine development and not getting ahead of ourselves and pulling out more ore because eventually that always catches up to you. But we do expect Q3 and Q4 to stabilize, and again, grades to be slightly below Q1. I thought Q1 was pretty high grade that we really significantly do plan, but it will somewhere be between Q2 and Q1.

是的。該排序涉及幾個因素。我們實際上失去了一個高級採場。我們在第二季度花了很多時間來清理和重新修復，所以我們可以在第三季度回到這裡。發展有點落後，但不是嚴重落後，但我們 - 我們有一個恢復計劃，以確保我們的發展保持領先，所以我們的計劃中沒有這些變化 - 我們的採礦計劃排序，它是友善的解決所有地下作業的難題，並確保我們有足夠的礦山開發，不要超前並開採更多礦石，因為最終總會趕上你。但我們確實預計第三季度和第四季度將趨於穩定，並且成績將再次略低於第一季度。我認為第一季度的成績相當高，我們確實做了重大計劃，但它會介於第二季度和第一季度之間。

Just on that, the high-grade stope, was that just like an isolated ground condition issue or...

就這一點而言，高品位採場，就像是一個孤立的地麵條件問題還是……

Yes, we believe it was isolated. I'm always looking at that, but we've had very good ground in El Curso and continue to expect to have good ground.

是的，我們相信它是孤立的。我一直在關注這一點，但我們在埃爾庫索已經取得了很好的基礎，並且繼續期望擁有良好的基礎。

Great. And I guess one other. Just maybe an idea of time essentially. I know you've been looking to twin some holes of Bruner and sort of re-up that resource. Is that just sort of -- should we expect that just by the end of the year?

偉大的。我猜還有另一個。也許本質上只是一個時間概念。我知道你一直在尋找彌補布魯納的一些漏洞並重新啟動該資源。我們是否應該期待在今年年底之前實現這一目標？

No, I think that's going to fall into 2024. We haven't really pushed on Bruner this year. We did get all our drilling permits. But again, there's no plans and we want to make sure that we keep that cash...

不，我認為這要到 2024 年。今年我們並沒有真正推動布魯納。我們確實獲得了所有的鑽探許可證。但同樣，沒有計劃，我們想確保保留這筆現金......

Priority is obviously on Terronera and everything?

優先考慮的顯然是 Terronera 和其他一切？

Yes, exactly. Exactly.

對，就是這樣。確切地。

The next question comes from Cosmos Chiu with CIBC.

下一個問題來自 CIBC 的 Cosmos Chiu。

Maybe my first question is on Bolañitos. I think in the MD&A, you mentioned that Q2 experienced higher gold grades, increased throughput offset by lower silver production and lower silver grades. I guess my question is that higher gold grade and lower silver grade, is that going to continue? And is that going to revert some time into the future?

也許我的第一個問題是關於博拉尼托斯的。我認為在 MD&A 中，您提到第二季度黃金品位較高，吞吐量增加被白銀產量下降和白銀品位下降所抵消。我想我的問題是更高的黃金等級和更低的白銀等級，這種情況會持續下去嗎？這會回到未來的某個時間嗎？

Yes. Thanks for the question, Cosmos. I mean, we actually get quite variations between Bolañitos between gold and silver. In general, I think our silver equivalent grades were in line with expectations with budget and Bolañitos is performing as expected. Q3, Q4, it would probably line up pretty good with H1's gold grades and silver ratio. And then going forward, similar at that point.

是的。謝謝你的提問，宇宙。我的意思是，我們實際上得到了黃金和白銀之間 Bolañitos 之間的很大差異。總的來說，我認為我們的白銀等值等級符合預算預期，並且 Bolañitos 的表現符合預期。 Q3、Q4，它可能與 H1 的黃金等級和白銀比例非常吻合。然後繼續前進，在這一點上類似。

Great. And then looking at your guidance, Dan, as you mentioned, production guidance has been maintained. Cost guidance has been maintained. But as we talked about on this call, there's a lot of questions about inflation, foreign exchange, FX rates. And you, I guess, in the MD&A, you even made the comment that some of these inflationary pressures are expected to continue in the near term, expect actual cost metrics to be higher than cost metrics previously provided by the company's 2023 guidance. So what does that mean? Are we potentially looking at for the full year cost to potentially come in higher? Or is that just looking out into Q3? I wasn't too sure what the wording around...

偉大的。然後看看你的指導，丹，正如你提到的，生產指導一直得到維持。維持成本指導。但正如我們在這次電話會議上談到的，存在很多有關通貨膨脹、外匯、匯率的問題。我想，您在 MD&A 中甚至評論說，部分通脹壓力預計將在短期內持續，預計實際成本指標將高於公司 2023 年指導之前提供的成本指標。那麼這意味著什麼呢？我們是否可能會考慮全年成本可能會更高？或者這只是展望第三季度？我不太確定周圍的措辭是什麼......

No. Yes, I can be more clear on that, Cosmos. Ultimately, as you said, from a production standpoint, we're at 4.7 million silver equivalent ounces produced. Our upper bound range is 9.5 million silver equivalent. So we're tracking really well from a production standpoint to the upper bound. Unfortunately, from a cost standpoint, all-in sustaining costs have been $22.15, cash costs have been near $12 or $12.21 for the first half of the year. We're expecting our costs to be above the upper bound range of our guidance. So we're not restating the number, but we do expect for the second half of the year, our cost metrics to be similar to H1, which, again, puts us above the upper bound range of our original guidance.

不，是的，我可以說得更清楚，Cosmos。最終，正如您所說，從產量的角度來看，我們的白銀產量為 470 萬盎司。我們的上限是 950 萬銀當量。因此，從生產的角度來看，我們對上限的跟踪非常好。不幸的是，從成本的角度來看，今年上半年的全部維持成本為 22.15 美元，現金成本接近 12 美元或 12.21 美元。我們預計我們的成本將高於我們指導的上限。因此，我們不會重述這個數字，但我們確實預計今年下半年的成本指標將與上半年相似，這再次使我們高於最初指導的上限。

Understood. And I guess, Dan -- sorry, you were saying...

明白了。我想，丹——抱歉，你是說……

No, no, it's good. I'm glad you understood, just wanted to make that clear.

不不不，這樣很好。我很高興你能理解，我只是想澄清這一點。

Okay. I guess, as we talked about what are the key components of the Mexican peso, I just looked at it again. I don't think right now you are hedged in any way in terms of Mexican peso. And then, as you mentioned, you don't have a crystal ball, I don't have a crystal ball either. So is there any thinking behind potentially hedging away that risk longer term, especially with some of the costs associated with Terronera?

好的。我想，當我們討論墨西哥比索的關鍵組成部分時，我只是又看了一遍。我認為現在您沒有以任何方式對墨西哥比索進行對沖。然後，正如你提到的，你沒有水晶球，我也沒有水晶球。那麼，從長遠來看，是否有任何潛在的對沖風險的想法，特別是與 Terronera 相關的一些成本？

Yes, it's a very good question. And there's 2 parts to that, almost. From an operating standpoint, we aren't going to enter into any FX hedges for Guanaceví or Bolañitos. I think a lot of the literature that we still get is we expect peso to stay relatively strong through 2023, but to reverse course and get back on historical trend of depreciation against the U.S. dollar. So that's part of the thought patterns on why nothing from an operating standpoint.

是的，這是一個非常好的問題。幾乎有兩個部分。從運營角度來看，我們不會為Guanaceví 或Bolañitos 進行任何外匯對沖。我認為我們仍然得到的很多文獻是，我們預計比索到 2023 年將保持相對強勢，但會扭轉趨勢，回到兌美元貶值的歷史趨勢。因此，這就是從運營角度來看為什麼不這樣做的思維模式的一部分。

From a Terronera standpoint, it's different, right? Because we have a big incurrence because of the debt that we're putting in place with (inaudible) it's $120 million, there is an FX component hedging with regards to Terronera. It's not significant. Craig had earlier asked the question about what remains from an FX standpoint. We've provided that detail to those banks, and we'll have to incur some FX hedging in place for the -- as a covenant for the loan facility.

從 Terronera 的角度來看，這是不同的，對嗎？由於我們所欠的債務（聽不清）高達 1.2 億美元，因此我們產生了大量債務，因此對 Terronera 進行了外匯成分對沖。這並不重要。克雷格早些時候曾問過從外匯角度來看還剩下什麼的問題。我們已經向這些銀行提供了這些細節，並且我們將不得不進行一些外匯對沖——作為貸款便利的契約。

Again, for everybody else on the call, with that loan facility, there's also a gold hedge requirement for the first 2 to 3 years, amounts to between 50,000 and 60,000 ounces of gold on that 3-year basis, so averaging 20,000 ounces of gold per year. And we'll get into that detail when that gets all finalized, hopefully, this quarter, Cosmos.

同樣，對於參加電話會議的其他人來說，有了貸款便利，前 2 到 3 年也有黃金對沖要求，在這 3 年的基礎上，黃金數量為 50,000 到 60,000 盎司，因此平均為 20,000 盎司黃金每年。當一切最終確定後，我們將詳細討論這個細節，希望是在本季度，Cosmos。

Great. And then one last question. As you mentioned, rainy season is coming out in Mexico. You've gone through many rainy seasons. And so -- but I just want you to kind of talk about how have you prepared for it at the operations and also at Terronera? I'm reading there's upcoming major milestones at Terronera, but it's a lot of delivery, some concrete work. I don't see a lot of major earthworks. So -- but again, how have you kind of thought about the risk around rainy season coming upon in Mexico?

偉大的。最後一個問題。正如你提到的，墨西哥的雨季即將到來。你經歷過很多個雨季。所以 - 但我只是想讓你談談你在運營和 Terronera 是如何準備的？我讀到 Terronera 即將迎來重大里程碑，但需要大量交付和一些具體工作。我沒有看到很多大型土方工程。那麼，您如何看待墨西哥即將到來的雨季的風險？

Yes. Obviously, as you stated, with our operations, we've dealt with rainy seasons for 17 years, 16 years at the operations. I think, we are pretty well averse to handling it, and you don't see big changes in our production profile because of the rainy season. We've had issues in the past various years, whether it's clay in the crushers that impacted, but only on a, I'd say, minute level. From a Terronera standpoint, I think we've done a very good job preparing for it. That's the reason we've put so much work into the roads and the drainage around the roads and requirements for drainage.

是的。顯然，正如您所說，在我們的運營中，我們已經應對雨季 17 年了，16 年了。我認為，我們非常不願意處理它，並且由於雨季，您不會看到我們的生產狀況發生重大變化。在過去的幾年裡，我們遇到了一些問題，無論是破碎機中的粘土是否產生了影響，但我想說，只是在微小的水平上。從 Terronera 的角度來看，我認為我們已經做好了很好的準備工作。這就是我們在道路和道路周圍的排水以及排水要求方面投入如此多的工作的原因。

But I'm probably going to pass this question off to Don, who's sitting in Mexico and is on the call. He knows this very well, and probably can give you a better answer than I can. Don, do you want to give Cosmos a little bit of color around the work we've done around rainy season for Terronera?

但我可能會把這個問題轉給唐，他坐在墨西哥，正在接聽電話。他非常了解這一點，並且可能比我能給你更好的答案。 Don，你想讓 Cosmos 為我們在雨季期間為 Terronera 所做的工作增添一點色彩嗎？

Sure. There's quite a few things that we've done and similar to what we've done on other projects previously and simple things, like we pour lean concrete down in the bottom of the excavation so that the contractor has something to work off of when it is raining, ready with pumps and things like that for excavations where they may accumulate rainfall, that kind of thing. The other thing is that we've done in some other places is put up some tents and overhead structures, real simple things. But if the contractor is prepared, which our contractor is, that we have the concrete contractor on site now, then we can get through it. So we've been prepared for it and are preparing for it and anticipate we can meet the challenge.

當然。我們已經做了很多事情，與我們之前在其他項目上所做的事情類似，也是一些簡單的事情，比如我們將貧混凝土澆注到挖掘底部，以便承包商在開挖時有東西可以處理。正在下雨，準備好水泵和類似的東西進行挖掘，在那裡它們可能會積聚降雨，諸如此類的東西。另一件事是我們在其他一些地方做了一些帳篷和高架結構，非常簡單的事情。但如果承包商準備好了，我們的承包商就是，我們現在有混凝土承包商在現場，那麼我們就可以渡過難關。因此，我們已經做好了準備，並且正在為此做好準備，並預計我們能夠應對挑戰。

Great. As you look out the window right now, is it raining?

偉大的。你現在看看窗外，下雨了嗎？

Out the window right now, it's -- I've got mostly blue sky and a little bit cloudy afternoon. The clouds come in and we get the afternoon rains, but it's kind of typical for right now in this part of the rainy season, so.

現在窗外，天空大部分是藍色的，下午有點多雲。烏云密布，下午會下雨，但這是目前雨季的典型現象，所以。

This concludes the question-and-answer session. I would like to turn the conference back over to Dan Dickson for any closing remarks.

問答環節到此結束。我想將會議轉回丹·迪克森（Dan Dickson）發表閉幕詞。

Well, thank you, operator, and thank you, everybody, listening to our Q2 financial results call. I can tell by the questions. I think everybody understands the importance of Terronera and executing on Terronera over the next 1.5 years for Endeavour. Of course, management is always eager to happy to answer calls from analysts. And hopefully, we expect good results here in Q3 from a production standpoint, and we maintain our eye on costs and try to drive that down as best we can. Thanks, everyone, and have a good day.

好吧，謝謝運營商，也謝謝大家收聽我們的第二季度財務業績電話會議。我可以通過問題來判斷。我認為每個人都了解 Terronera 以及在未來 1.5 年中執行 Terronera 對 Endeavour 的重要性。當然，管理層總是渴望樂意接聽分析師的電話。希望從生產的角度來看，我們預計第三季度會有好的結果，並且我們會密切關注成本並儘力降低成本。謝謝大家，祝你有美好的一天。

This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.

今天的電話會議到此結束。您可以斷開線路。感謝您的參與，祝您度過愉快的一天。