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Endeavour Silver Corp (TSE:EDR)
TSX:EDR
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Endeavour Silver
(TSX:EDR)
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Rating:56Neutral
Price Target:
C$16.00
▲(1.52% Upside)
Action:ReiteratedDate:03/02/26
The score is held back primarily by weak current fundamentals—large losses and sustained negative free cash flow—despite strong revenue growth and manageable leverage. Technicals are supportive with the stock trading above major moving averages, while the earnings call adds a constructive outlook based on explicit 2026 cost and throughput improvement initiatives and solid liquidity. Valuation remains a concern because profitability is negative and no dividend yield is provided.
Positive Factors
Strong production and revenue growth
Substantial, multi-year volume expansion from Kolpa acquisition and Terronera ramp produced a step-change in scale and top line. Higher, sustained production increases operating leverage, supports fixed-cost absorption and long-term margin improvement if volumes and recoveries hold through 2026.
Improved liquidity and manageable leverage
A stronger cash cushion and only moderate leverage provide financial flexibility to fund Pitarrilla, Kolpa expansion and Terronera optimization without immediate equity dilution. This reduces near-term refinancing risk while the company executes multi-year development plans.
Clear cost reduction and development roadmap
Management has firm operational initiatives—LNG power conversion, Kolpa throughput lift and Pitarrilla feasibility—aimed at lowering energy and per‑ton costs. These structural moves, if executed, sustainably improve unit economics and AISC over 2026–2027 versus transitory ramp costs.
Negative Factors
Large losses and negative free cash flow
Despite top-line gains, persistent net losses and a deep free-cash-flow deficit indicate internal cash generation doesn't yet support reinvestment. Continued negative FCF raises reliance on financing, elevating execution and dilution risk while projects scale to break‑even economics.
Elevated AISC and ramp-up capex
High initial sustaining capex and ramp-related operating costs are depressing margins in the near term. If commissioning setbacks or higher-than-expected capex recur, targeted AISC reductions may be delayed, prolonging weak profitability and increasing the need for external funding.
Structural cost and operational exposures
Material tolling and a high royalty at a core asset structurally increase per‑ounce costs and weaken margin sensitivity to higher metal prices. Combined with regional security interruptions risk at Terronera, these exposures raise operating volatility and downside to long-term cash generation.
Endeavour Silver (EDR) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$4.66B
Dividend YieldN/A
Average Volume (3M)1.94M
Price to Earnings (P/E)―
Beta (1Y)3.53
Revenue Growth50.37%
EPS Growth-191.85%
CountryCA
Employees1,539
SectorBasic Materials
Sector Strength58
IndustryOther Precious Metals
Share Statistics
EPS (TTM)0.03
Shares Outstanding295,733,400
10 Day Avg. Volume1,878,242
30 Day Avg. Volume1,937,462
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)4.60
Price to Sales (P/S)5.68
P/FCF Ratio-22.82
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue7.40
Enterprise Value/Gross Profit55.03
Enterprise Value/Ebitda104.92
Forecast
1Y Price Target
$21.59Price Target Upside36.98% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
EPS Forecast (FY)0.68
Revenue Forecast (FY)$790.79M
Endeavour Silver Business Overview & Revenue Model
Company DescriptionEndeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Mexico and Chile. The company explores for gold and silver deposits, and precious metals. The company operates two producing silver-gold mines in Mexico, such as the Guanaceví mine in Durango; and the Bolañitos mine in Guanajuato. It is also advancing two exploration and development projects in Mexico, including the Terronera property in Jalisco; and the Parral properties in Chihuahua. In addition, the company holds interests in three exploration projects in northern Chile comprising the Aida silver project, the Paloma gold project, and the Cerro Marquez copper-molybdenum gold project. The company was formerly known as Endeavour Gold Corp. and changed its name to Endeavour Silver Corp. in September 2004. Endeavour Silver Corp. was incorporated in 1981 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyEndeavour Silver generates revenue primarily through the mining and sale of silver and gold. The company operates several mines in Mexico, where it extracts precious metals and sells them in the global market. Key revenue streams include the direct sale of mined silver and gold products, as well as potential by-products from its mining operations. Additionally, Endeavour Silver benefits from rising precious metal prices, which can significantly impact its earnings. The company may also engage in hedging strategies to manage price volatility. Partnerships with various suppliers and service providers in the mining industry contribute to its operational efficiency and cost management, further supporting its revenue generation.
Endeavour Silver Earnings Call Summary
Earnings Call Date:Feb 27, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive strategic and financial picture: record revenue, substantial production growth (driven by Kolpa acquisition and Terronera ramp-up), strengthened liquidity from a $350M convertible offering and $215M year-end cash, and active advancement of Pitarrilla and Kolpa expansions. Offsetting these positives were operational ramp-up costs at Terronera, temporary security-related shutdowns, elevated AISC and mark-to-market/financing impacts from legacy hedges. Management provided clear plans to reduce costs in 2026 (LNG transition, optimization, Kolpa throughput expansion) and expects improvements across the year, suggesting the issues are manageable and largely transitional.Q4-2025 Updates
Positive Updates
Strong Production Growth
2025 production of ~11 million ounces silver equivalent, a 48% increase vs. 2024; Q4 production ~2 million oz silver and 14,000 oz gold (just under 4 million silver equivalent oz), a ~146% increase year-over-year driven by addition of Kolpa and Terronera (excluding Kolpa and Terronera production, Q4 production rose ~27% vs. prior year).
Record Revenue and Improved Cash Flow
Record 2025 revenue of $468 million, up 115% vs. 2024; mine operating earnings of $83 million and mine operating cash flow before taxes of $156 million; mine operating cash flow before working capital changes increased ~116%.
Balance Sheet Strengthening Capital Raises & Cash Position
Raised $350 million via a December convertible debt offering; ended 2025 with cash of $215 million, providing liquidity to advance Pitarrilla and other initiatives.
Strategic M&A and Portfolio Optimization
Acquisition of Kolpa (May 2025) added base metal production and helped drive year-over-year growth; sale of Bolanitos closed in January (proceeds ~ $50 million), expected Q1 accounting gain and reduces legacy complexity.
Terronera Achieved Commercial Production
Terronera declared commercial production Oct 1, 2025 and is ramping toward steady-state throughput (target ~2,000 tpd through 2026) with anticipated grade increases into H2 2026 and further higher-grade mining in 2027.
Kolpa Expansion
Kolpa plant expansion to 2,500 tonnes per day is progressing and expected to be commissioned in Q1–Q2 2026 (current recent throughput ~2,300 tpd), supporting improved cost efficiency and planned resource estimate later in 2026.
Energy Cost Reduction Plan
Terronera transition from diesel gen-sets to an LNG vaporization power solution expected in Q2 2026; company cites a reduction in power cost from $0.33 to $0.17 per unit (per transcript) and an estimated benefit of roughly $8 per ton in costs, improving reliability and lowering operating costs.
Advancing Pitarrilla Development
Planned $68 million investment for Pitarrilla in 2026, NI 43-101 feasibility targeted for Q3 2026, long-lead procurement and early works underway with an informed construction decision targeted for early 2027—supports significant organic growth potential.
Clear Hedging Strategy on Gold Byproduct
Project loan facility required gold hedges were implemented historically; remaining notional gold hedge ~50,000 oz scheduled to unwind through 2026 into Q2 2027. Company policy is to remain largely unhedged on silver, preserving upside to higher silver prices.
Q4 Adjusted Earnings and Per-Share Result
Q4 adjusted net earnings of $4.8 million, or $0.02 per share (adjusted), after excluding certain derivative/financing impacts as noted in MD&A.
Negative Updates
Terronera Ramp-Up Costs and Operational Issues
Terronera experienced ramp-up challenges (electrical interruptions linked to diesel gen-sets, start-stop events impacting recoveries and throughput). Direct operating costs per ton increased, with Terronera incurring elevated sustaining capital (Q4 sustaining CapEx at ~$16.3 million) and higher per-ounce costs in initial quarters.
Elevated All-in Sustaining Costs (AISC)
AISC were elevated in the quarter driven by higher royalties and duties, third-party ore purchases, elevated corporate G&A and the addition of Terronera; company expects these will decline as one-time items are completed and operations normalize.
Derivative Losses and Higher Financing Costs
Realized and mark-to-market losses from derivative contracts (gold hedges tied to project loan facility) and higher financing costs related to early repayment of a debt facility reduced reported earnings, contributing to modest adjusted net earnings in Q4 despite strong revenue.
Security and Supply Chain Disruption
Temporary pause of Terronera operations due to regional security events and Jalisco Code Red (site paused Sunday night and resumed Feb 25). Limited on-site storage (roughly one week of food, limited water) and vulnerable supply lines required careful monitoring and could necessitate strengthened transport security protocols.
Cost Inflation & Labour Pressure
Direct operating cost per ton rose ~8% year-over-year; negotiated wage increases for Mexican unions around 6% (above the budgeted 5%) and Mexican peso appreciation were cited as cost pressures. Management is monitoring input cost pressure at higher metal prices.
Price-Linked Cost Sensitivity
Company noted direct cost per ton increases with higher metal prices: each $1/oz increase in silver raises cost/ton by ~$0.90 at Terronera, ~$0.50 at Kolpa and ~$3.80 at Guanaceví (reflecting higher royalties, duties and purchased ore exposure).
Guanaceví Tolling and Royalty Exposure
Significant tolling (approximately 20% of throughput in Q4) and a 16% royalty to Minera Frisco at Guanaceví lead to higher effective costs and greater sensitivity to elevated metal prices despite providing feed and margin benefits.
One-Time 2025 CapEx Impacting Early 2026 Costs
Onetime items from construction-to-commercial transition (LNG installation, waste dump permitting, backfill plant purchase, other construction-era CapEx) flowed through Q4 and into Q1–Q2 2026, pressuring near-term costs though management expects declines later in 2026.
Company Guidance
Guidance highlights: for 2026 Endeavour expects Terronera to operate at ~2,000 tpd through the year, transition into higher‑grade zones in H2, complete the diesel→LNG conversion in Q2 (reducing power cost from ~$0.33/MWh to ~$0.17/MWh and saving ~ $8/ton), and materially lower direct operating cost/ton and AISC from Q4 levels (Q4 Terronera sustaining capex $16.3M, ~ $48 AISC/oz; management expects AISC to normalize toward the low‑$20s–$30/oz range by year‑end); Kolpa’s plant expansion to 2,500 tpd is expected in Q1 (guidance average ~2,400 tpd) with a resource estimate later in 2026; Pitarrilla is budgeted for $68M of 2026 investment, an NI 43‑101 feasibility targeted for Q3 and long‑lead procurement to support a construction decision in early 2027; liquidity was $215M at Dec 31 after a $350M convertible debt raise, and 2025 operating metrics that underpin the plan include 11M oz Ag‑eq production, Q4 output of ~2M oz Ag and 14k oz Au (~4M Ag‑eq), $468M revenue, $385M cost of sales, $83M mine operating earnings, $156M mine operating cash flow before taxes, cash costs of $19/oz payable Ag, direct operating cost/ton up 8% YoY, metal‑price sensitivity of ~+$0.90/ton per $1/oz Ag at Terronera ($0.50 at Kolpa, $3.80 at Guanaceví), ~50k oz of gold hedge remaining (unwinding into mid‑2027), and peso hedges of roughly 19 MXN/USD remaining.Endeavour Silver Financial Statement Overview
Summary
Revenue growth is strong (TTM up ~40%), and leverage remains moderate (debt-to-equity ~0.25). However, profitability has deteriorated to a large net loss (net margin about -28%) and free cash flow is deeply negative in 2024 and TTM, increasing execution and funding risk until costs and margins recover.Income Statement
Revenue accelerated sharply in TTM (Trailing-Twelve-Months) (up ~40%), but profitability deteriorated meaningfully: the company reported a large net loss (net margin about -28%). Margins also compressed versus prior years, moving from modest profitability in 2021–2023 to losses in 2024 and a much deeper loss in TTM, indicating higher costs, weaker pricing, and/or significant non-operating charges. Top-line momentum is a clear positive, but the current earnings profile is the main weakness.34
Negative
Balance Sheet
The balance sheet remains relatively supportive, with moderate leverage (debt-to-equity ~0.25 in both 2024 and TTM) and equity still substantial. However, returns to shareholders have turned negative in 2024 and worsened in TTM (negative return on equity), consistent with the recent losses. Debt has also risen notably compared with 2022–2023 levels, which reduces flexibility if weak profitability persists.62
Positive
Cash Flow
Operating cash flow is positive in TTM (Trailing-Twelve-Months), improving versus 2024, but free cash flow is deeply negative in both 2024 and TTM, implying heavy spending and/or reinvestment needs that are not being funded by internal cash generation. Cash generation quality is mixed: operating cash flow is not keeping pace with the income statement losses, and the ongoing free-cash-flow deficit increases reliance on financing or cash reserves.41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 468.46M | 217.64M | 205.46M | 210.16M | 165.32M |
| Gross Profit | 51.59M | 42.08M | 36.61M | 51.52M | 36.37M |
| EBITDA | 104.70M | 10.03M | 47.86M | 51.83M | 31.55M |
| Net Income | -121.18M | -31.48M | 6.12M | 6.20M | 13.96M |
Balance Sheet | |||||
| Total Assets | 1.23B | 719.25M | 474.81M | 399.44M | 294.02M |
| Cash, Cash Equivalents and Short-Term Investments | 216.01M | 107.50M | 40.42M | 92.04M | 114.50M |
| Total Debt | 243.46M | 120.86M | 9.53M | 15.58M | 11.49M |
| Total Liabilities | 655.41M | 234.81M | 88.47M | 83.54M | 56.62M |
| Stockholders Equity | 578.05M | 484.44M | 386.34M | 315.89M | 237.41M |
Cash Flow | |||||
| Free Cash Flow | -116.61M | -176.27M | -106.02M | -54.72M | -30.63M |
| Operating Cash Flow | 55.56M | 19.11M | 11.77M | 54.99M | 23.46M |
| Investing Cash Flow | -244.51M | -183.46M | -108.00M | -111.45M | -38.01M |
| Financing Cash Flow | 308.00M | 236.00M | 48.92M | 36.76M | 56.65M |
Endeavour Silver Technical Analysis
Positive
15.76
Price Trends
15.98
Positive
13.83
Positive
10.73
Positive
Market Momentum
0.49
Positive
50.64
Neutral
41.69
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:EDR, the sentiment is Positive. The current price of 15.76 is below the 20-day moving average (MA) of 16.78, below the 50-day MA of 15.98, and above the 200-day MA of 10.73, indicating a bullish trend. The MACD of 0.49 indicates Positive momentum. The RSI at 50.64 is Neutral, neither overbought nor oversold. The STOCH value of 41.69 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:EDR.
Endeavour Silver Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.71B | 25.18 | 14.35% | ― | 65.77% | 458.38% | |
71 Outperform | $1.24B | 16.04 | 5.38% | ― | 104.08% | 832.86% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
56 Neutral | $4.66B | -21.96 | -22.40% | ― | 50.37% | -191.85% | |
53 Neutral | C$1.21B | ― | -2.78% | ― | ― | 40.00% | |
49 Neutral | C$474.38M | -55.40 | -4.86% | ― | ― | -14.43% | |
41 Neutral | C$2.28B | ― | -122.96% | ― | ― | -171.41% |
* Basic Materials Sector Average
TSE:EDR
Endeavour Silver
15.76
10.10
178.45%
TSE:ASM
Avino Silver & Gold
10.93
9.05
481.38%
TSE:SLVR
Silver Tiger Metals
0.85
0.52
157.58%
TSE:GGD
GoGold Resources
3.24
1.53
89.47%
TSE:ABRA
AbraSilver Resource
14.29
10.98
331.72%
TSE:NUAG
New Pacific Metals
6.57
4.97
310.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.