Endeavour Silver Corp.

Endeavour Silver Corp. is a mid-tier silver producer headquartered in Vancouver, Canada, operating primarily in Mexico. The company's portfolio consists of 7 projects, comprising 3 operating mines, 1 development, and 3 advanced exploration projects. Key assets include Guanaceví, Terronera, and Pitarrilla. The company's business model centers on the evaluation, acquisition, exploration, development, and exploitation of mineral properties. A key operational characteristic is the production of both doré, which is refined into bullion and sold via agents on commodity exchanges, and metal concentrates, which are sold to various traders for blending and global smelting. This dual-stream approach provides market flexibility. The enterprise has demonstrated a capacity for revitalizing assets by acquiring fully built and permitted mining and milling infrastructure, which significantly shortens the development cycle from discovery to production compared to traditional models. Operations are supported by specialized in-house skills in geology, exploration, mine development, processing technologies, and finance. The business produces from underground mines and sells its output through competitive bid processes and annual sales contracts with multiple customers, mitigating single-customer dependency. This integrated approach, from acquisition to production and sales, underpins its operational framework.

The business strategy focuses on acquiring advanced-stage mineral properties and advancing them toward production, with the stated goal of becoming a premier senior producer. This approach is demonstrated by the acquisition of permitted mines that were near closure, which are then expanded through targeted exploration and investment. A core component of the strategy involves advancing development-stage projects to construction, funded through a combination of debt and equity financing. The company utilizes various financing mechanisms, including at-the-market (ATM) equity facilities, bought deal offerings, and senior secured debt facilities, to fund capital expenditures for major projects. To manage financial risk associated with development and operations, the enterprise engages in hedging activities, including foreign exchange forward contracts to mitigate currency fluctuations and forward swap contracts to manage commodity price volatility. Exploration initiatives are focused on replenishing and expanding the resource base at existing operations and evaluating new projects.

Executive leadership is complemented by a board of 9 directors, who are elected annually. Board oversight is structured through 5 distinct committees: Audit, Compensation, Corporate Governance and Nominating, Sustainability, and a project-specific Special Committee. The Chief Executive Officer previously served as the company's Chief Financial Officer from 2009 to 2021, providing deep financial and strategic continuity. The Audit Committee is composed of 5 directors, all of whom are independent and financially literate. At least 1 member of the Audit Committee qualifies as an 'audit committee financial expert' under regulatory definitions, ensuring a high level of financial oversight. Governance practices include pre-approval of all audit and non-audit services provided by the external auditor and established procedures for handling complaints regarding accounting and auditing matters, including confidential submissions from employees. Directors and officers may serve on the boards of other resource companies, with established protocols for managing potential conflicts of interest.

The organization's sustainability strategy is structured around 3 pillars: people, planet, and business, and is overseen by a dedicated Sustainability Committee. Under the 'people' pillar, commitments include protecting workforce and community health and safety, providing a discrimination-free work environment, and promoting community development. The 'planet' pillar focuses on the efficient use of natural resources, the use of clean technologies, and the evaluation of environmental impacts at all operational stages, including consideration of climate-related risks in decision-making. The 'business' pillar emphasizes ethical conduct, prioritizing local recruitment, and maintaining a comprehensive risk management system. A separate Human Rights Policy reinforces commitments to respecting working conditions, engaging with indigenous peoples, and protecting against discrimination. The company publishes an annual sustainability report to provide transparency on its performance and initiatives in these areas. Reclamation and closure obligations are financially provisioned for all operations and projects.

The company conducts its primary business through wholly-owned subsidiaries. As of year-end 2024, its material operating subsidiaries included Refinadora Plata Guanaceví, S.A. de C.V., Mina Bolañitos S.A de C.V., Terronera Precious Metals S.A. de C.V., and Minera Pitarrilla S.A. de C.V. A significant acquisition was completed in 2022 with the purchase of the Pitarrilla project from SSR Mining Inc. for a total consideration of $70 million and a 1.25% net smelter returns royalty. In the same year, the company divested its interest in Minera Oro Silver de Mexico, S.A. de C.V., which held the El Compas property, to Grupo ROSGO, S.A. de C.V. for $5 million. In 2023, the enterprise completed the sale of its 1% Cozamin royalty to Gold Royalty Corp. for total consideration of $7.5 million in cash. The company's capital structure is composed of a single class of common shares with no constraints on ownership.