Endeavour Silver to slash 2016 output by over 25%
Canadian miner Endeavour Silver (TSE:EDR, NYSE:EXK) will cut back production for the year by more than 25% as it puts its currently unprofitable El Cubo mine, located in Mexico, in care and maintenance in light of soft silver prices.
The Vancouver-based company said the cut-backs should help the miner lower all-in sustaining costs of production and generate free cash flow. It added that El Cubo mine, located about 6 km southeast of the city of Guanajuato, Mexico, will be mothballed by the end of the year.
Endeavour Silver’s production is expected to be now in the range of 4.9-5.3 million ounces this year, while gold output will be in the 47,000-52,000 ounces range. Silver equivalent production is forecast to be 7.9-8.5 million ounces using a 75:1 silver:gold ratio, the company added.
The company operates three mines in Mexico, the world’s biggest silver producing country.
Shares in Endeavour Silver were down 2.$% in New York at 10:32 am ET.