VANCOUVER – Endeavour Silver Corp. (TSX:EDR) cited lower metals prices as well as the effect of higher taxes and other costs at its operations in Mexico among reasons for swinging to a big loss in the fourth quarter.
The Vancouver-based miner says its net loss in the three months ended Dec. 31 was US$115.8 million or $1.16 per share compared with a net profit of US$14.8 million or 15 cents per share in the same 2012 period.
Revenue increased two per cent to US$67.9 million on higher volume sales of silver and gold as realized silver prices fell 38 per cent to US$20.52 while realized gold prices were down 28 per cent to US$1,246 per ounce sold.
“We delivered another record year of silver and gold production and revenue in 2013,” CEO Bradford Cooke said in the company’s earnings report, which was released after markets closed.
“In spite of achieving higher throughput, grades and recoveries at all three mines, our earnings were hit by lower metal prices and reduced carrying values at El Cubo and Guanacevi plus a deferred tax liability related to the new mining taxes in Mexico.”
“Nonetheless, significant progress was made in 2013, particularly in the El Cubo mine performance and operating costs. The single digit cash costs are what management originally modelled long-term for El Cubo when it acquired the mine in 2012. The operating turn-around at El Cubo still has two quarters to completion but the transformation thus far has been very satisfying.”
For the full year, Endeavour reported a net loss of US$89.5 million or 90 cents per share, compared with net earnings of US$42.1 million or 45 cents per share in 2012.
Endeavour shares closed down 12 cents of 2.07 per cent at C$5.68 Monday on the Toronto Stock Exchange.