Endeavour Silver: CEO with Corporate Update - Pitarrilla PFS Coming by August 2026

Key Concepts

• Terronera Project: Endeavor Silver’s flagship asset currently in the ramp-up phase.
• Brownfields Exploration: Focused drilling near existing operations to extend mine life.
• Feasibility Study (FS): A comprehensive study to determine the economic viability of a mining project.
• Silver Conductivity: The primary industrial driver for silver demand due to its thermal and electrical properties.
• Right-sizing: The strategic process of divesting non-core assets (e.g., Bolanitos) to optimize the portfolio.

1. Q1 2026 Operational Performance

Dan Dixon, CEO of Endeavor Silver, characterized Q1 2026 as a "good" quarter, noting that performance was largely by design as the company focused on the ramp-up of the Terronera mine.

• Throughput: The plant is targeting 2,000 tons per day. Q1 achieved just over 1,900 tons per day, with April tracking toward the 2,000-ton target.
• Recoveries: Silver recoveries reached 89% and gold 78% by the end of the quarter, recovering from a 3–4% deficit at the start of the period.
• Grade Management: Q1 utilized lower-grade ore by design to stabilize plant operations. The company expects higher-grade ore to be processed in Q3 and Q4, which is anticipated to significantly boost production results.

2. Strategic Development: Pitarrilla Project

Endeavor Silver is heavily investing in the Pitarrilla project to establish it as a long-term asset.

• Budget: $68 million total investment for 2026.
• Feasibility Study: $15 million is allocated to complete the FS by July or August 2026, which will define mine life, cash flows, and construction costs.
• Infrastructure: $53 million is dedicated to advancing the project, including basic engineering, construction of a camp, and procurement of mobile fleets and plant equipment.
• Outlook: The company expects a mine life of 15–20 years at this site.

3. Exploration and Portfolio Management

The company is actively managing its portfolio to ensure efficiency and growth:

• Divestment: The Bolanitos mine was sold for $50 million as it was no longer considered a core asset, allowing the company to "right-size" its portfolio.
• Brownfields Exploration:
  • Guanacevi: Drilling to extend the current 2-year reserve life.
  • Cullpa: Aiming to confirm a historical resource of approximately 118 million ounces by the end of 2026.
  • Terronera: Drilling at depth and along strike to expand the current 10-year reserve life toward a 15–25 year potential.
• Acquisition Strategy: The company maintains a dedicated development team looking for scale-appropriate opportunities in Mexico and Peru, leveraging their existing 35-person office in Lima.

4. Management Changes

• Luis Castro (COO): A 20-year veteran of the company and discoverer of the Terronera and Guanacevi mines. His promotion is intended to leverage his deep institutional knowledge and government relations expertise.
• George Paspalas (Director): Former CEO of MAG Silver. His appointment is intended to bring capital market expertise and technical experience in Mexican operations to the board.

5. Industrial Demand for Silver

Dixon highlighted that silver’s role as the "best conductor of electricity" makes it indispensable for modern technology. Beyond the established growth in photovoltaics (solar) and the automotive sector, he identified two emerging demand drivers:

• AI Data Centers: Increased electricity requirements for AI infrastructure will necessitate more silver for electrical components.
• Robotics: The rise of robotics (e.g., Tesla’s robots) will require high-efficiency contact points to minimize thermal heat loss.

6. Synthesis and Conclusion

Endeavor Silver is currently in a transition phase, moving from the construction and ramp-up of the Terronera project toward full-scale production. By divesting non-core assets like Bolanitos and focusing capital on high-potential projects like Pitarrilla, the company is positioning itself for long-term growth. With operational metrics stabilizing and a strong focus on brownfields exploration, the company expects a stronger performance in the second half of 2026, supported by a favorable long-term outlook for industrial silver demand.