TORONTO (miningweekly.com) – Precious-metals miner Endeavour Silver expects production to increase 20% in 2010, to some 3,1-million ounces of silver and 15 000 oz of gold, produced as a by-product.
Last year, the company produced 2,6-million payable ounces of silver and 13 298 gold ounces from its two Mexican mining operations, Guanacevi and Guanajuato.
Production this year will be relatively flat in the first half of the year, but will ramp up in the third and fourth quarters, as new orebodies that will be developed in the initial part of the year come into production in the second half, CEO Bradford Cooke said on a conference call.
Cash costs are expected to decline to an average of around $5,50/oz for the year, compared with $6,04/oz in 2009, he said.
Endeavour has budgeted $29-million of capital investment for this year, as it continues to expand production capacity at both mines.
When the 2010 projects are completed, Guanacevi should reach 1 000 t/d and Guanajuato is expected to achieve rates of 600 t/d, the company said.
The final phase of organic growth currently planned should see the mine and plant capacities rise to 1 200 t/d at Guanacevi and 800 t/d at Guanajuato in 2011-2012.
Endeavour reported net income of $3,1-million for the fourth quarter, compared with a $5,2-million loss a year earlier.
Sales revenues more than tripled, to $24,2-million, and cash costs declined 33%, to $4,96/oz of silver produced, net of by-product credits.