Endeavour Silver Provides 2026 Guidance
Endeavour enters the "Full-Scale" era with 15M oz guidance, but high AISC remains a tether on valuation.
The news release dated January 16, 2026, provides the company's full-year production and cost guidance for 2026. This follows the divestiture of the Bolañitos mine (completed January 15, 2026). Key projections include: - Consolidated silver equivalent (AgEq) production of 14.6 million to 15.6 million ounces. - Silver production of 8.3M–8.9M oz; Gold production of 46k–48k oz. - Consolidated Cash Costs (net of by-products) of $12.00–$13.00 per oz Ag. - All-In Sustaining Costs (AISC) (net of by-products) of $27.00–$28.00 per oz Ag. - Total Capital Budget of $157.8 million ($91M sustaining, $66.8M growth). - Exploration Budget of $25.9 million for 52,500 meters of drilling.
The 2026 guidance is Material - Neutral. While it confirms the company has successfully scaled following the Terronera ramp-up and Kolpa integration, the figures are largely in line with the Q4 2025 production run rate (3.8M AgEq oz). - Improvements: AISC is projected to drop from the Q3 2025 high of $30.53 to a range of $27.00–$28.00. However, this cost profile remains significantly higher than the industry average for primary silver producers, leaving the company highly sensitive to silver price volatility. - Portfolio Rationalization: The sale of Bolañitos for $40M upfront allows management to focus on the high-margin Terronera asset and the expansion of Kolpa. - Growth vs. Sustaining: The high sustaining capital ($91M) indicates that the older Guanaceví mine and the newly acquired Kolpa require significant ongoing investment to maintain throughput.
Endeavour Silver is a mid-tier silver producer with four operating mines (Terronera, Guanaceví, and Bolañitos in Mexico; Kolpa in Peru). Following the Jan 2026 sale of Bolañitos, focus shifts to: - Flagship: Terronera (Jalisco, Mexico). Achieved commercial production Oct 1, 2025. It is expected to produce 4M oz Ag and 38k oz Au annually. - Expansion Project: Kolpa (Peru). Acquired in May 2025; currently ramping to 2,500 tpd.