Endeavour Silver Announces Commercial Production at Terronera
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Endeavour Silver announced on October 16, 2025, that its flagship Terronera mine in Jalisco, Mexico, achieved commercial production effective October 1, 2025. This milestone was reached after the mine's commissioning phase, during which the plant consistently operated at over 90% of its 2,000 tonnes per day (tpd) nameplate capacity and achieved at least 90% of projected metal recoveries.
For the next six months, the company forecasts processing approximately 360,000 tonnes with average grades of 122 g/t silver and 2.52 g/t gold. Full annualized production and cost guidance for Terronera for 2026 is expected to be released in January 2026. The company also noted that higher-grade zones of the mine are scheduled to be accessed by mid-2026.
This announcement is materially positive and represents a major de-risking event for Endeavour Silver. The successful transition of the Terronera project from a capital-intensive construction project into a cash-flow-generating operation is the most significant catalyst the company has faced in years.
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De-risking and Transformation: The achievement of commercial production officially marks the end of the high-risk construction and commissioning phase. This event transforms Endeavour from a company reliant on its aging, higher-cost legacy mines into a larger, multi-asset producer with a modern, low-cost cornerstone asset. The market's perception of the company should now shift, removing the significant discount typically applied to developers.
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Confirmation of Operational Viability: The news confirms that the plant can operate at or above its designed capacity and achieve targeted recoveries. This is a significant improvement from the ramp-up figures reported on October 8, which showed September recoveries of 82.8% for silver and 72.3% for gold. The swift improvement to over 90% of projected recoveries demonstrates the operational team's competence and resolves a key uncertainty from the commissioning period. The minor electrical issue reported in September appears to have been a transient problem with no lasting impact.
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Financial Impact: Terronera will now become a significant contributor to the company's revenue and cash flow. Based on the six-month forecast, Terronera is expected to produce approximately 1.41 million ounces of silver and 29,170 ounces of gold in H1 2026, a substantial increase to the company's overall production profile. This new cash flow is critical for funding the development of the Pitarrilla project, servicing debt, and improving the company's balance sheet, which showed a negative working capital position as of Q2 2025.
While the news is highly positive, the stock has already experienced a significant run-up from below $5.00 to over $13.00 in 2025 in anticipation of this event. While the confirmation is crucial, much of the positive outcome may already be reflected in the current share price. The key remaining uncertainty is the mine's operating cost structure, which will be clarified with the full 2026 guidance in January.
Endeavour Silver Corp. is a mid-tier precious metals mining company. It has historically operated two high-grade, underground silver-gold mines in Mexico: Guanaceví and Bolañitos. In May 2025, the company expanded its portfolio by acquiring the producing Kolpa polymetallic mine in Peru.
The company's flagship asset is the newly constructed Terronera mine in Jalisco, Mexico. This high-grade, underground silver-gold project is the company's primary growth driver and is expected to be its largest and lowest-cost operation. The company is also advancing its large-scale Pitarrilla silver project in Durango, Mexico, towards a development decision.