Endeavour Silver Sees Strong Q2 2026 Performance: Record Metal Sales, Improved Mine Operating Cash Flow
Endeavour Silver's second quarter performance has demonstrated the strength of its operations, with increased production, record metal sales, and a significant improvement in mine operating cash flow. The company's CEO, Dan Dickson, highlighted this during his formal remarks at the Q2 2026 conference call.
In Q2, Endeavour produced nearly 2 million ounces of silver and over 10,000 ounces of gold, totaling 3 million silver equivalent ounces. This represents a 36% increase compared to Q2 2025. The company reported revenue of $212 million, an increase of 150% compared to the prior year, with mining operating earnings of $74 million, again higher than the $7 million in Q2 2025. Mine operating cash flow before taxes was $100 million, a 300% increase from Q2 2025.
The company's all-in sustaining costs net of by-product credits were $37 this quarter, representing a 47% increase from Q2 2025. This significant increase in profitability has allowed Endeavour to continue investing in sustaining capital costs. In Q2, the company recognized an adjusted net earnings of $45 million or an adjusted net earnings per share of $0.15.
Endeavour's CEO emphasized that changes in metal prices have a meaningful impact on direct cost per ton. For example, for every $1 increase in silver ounce, cost per ton rises by about $0.90 at Terronera, $3.80 at Guanaceví, and $0.50 at Kolpa.
The company's operations are divided into three main mines: Terronera, Guanaceví, and Kolpa. Terronera saw a consistent daily throughput as the processing plant focused on metal recoveries. Silver grades were in line with plan for the quarter and are expected to increase during the second half of the year as mining operations access higher-grade areas.
At Guanaceví, the company incurred higher direct cost per ton this quarter due to higher volume and cost of third-party material purchased. The higher metal prices also drove higher royalties and special mining duty payable for the period. However, these increased costs allowed the operating team to mine lower-grade zones, ultimately extending mine life.
At Kolpa, the company installed and commissioned a new 3-stage pressure ball mill, increasing plant capacity to 2,500 tons per day. Additional expansion expenditures remain, along with capital improvement initiatives such as upgrades to the camp accommodations aimed at attracting and retaining skilled miners in Peru.
The company's management continues to evaluate the long-term capital needs of Kolpa and has increased the 2026 budget by $18 million to bring projects forward and meet company and Peruvian recommendations. Exploration drilling also restarted at Terronera, making it the first drill program at the mine since 2020, aimed at expanding and better defining mineralization along strike and depth within the Terronera vein.
