Endeavour Silver Posts Record Revenue Despite Terronera Start-Up Hurdles; CEO Outlines Path to Higher Grades

VANCOUVER – February 27, 2026 – Endeavour Silver Corp (NYSE: EXK) capped off a transformative year with record fourth-quarter financial results, demonstrating resilience amid the complex ramp-up of its cornerstone Terronera project in Mexico. The silver-gold producer announced revenue skyrocketed 115% year-over-year, while silver production climbed 48%, signaling strong underlying demand and operational scale-up.

However, the earnings call revealed the journey hasn't been without its bumps. CEO Dan Dickson openly addressed operational "learning experiences" at Terronera, including mill availability issues and electrical interruptions in late 2025 that required running on diesel generators. "We've seen significant stabilization since December," Dickson assured analysts. A key fix is the planned transition to liquefied natural gas (LNG) power in the second quarter, which is expected to cut costs and boost reliability.

Looking ahead, Dickson provided a clear roadmap for 2026. Ore grades at Terronera, initially kept low by design to safeguard the mill during start-up, are projected to rise steadily through the year as mining accesses higher-grade zones. This shift is critical for margin expansion. Concurrently, the company's capital expenditure at Terronera is set to decline from its 2026 budget of $56 million, which includes one-time build-out costs, transitioning to lower, sustaining capital by 2027.

On the financial strategy, Dickson clarified the company's hedging position. Endeavour holds a hedge on 68,000 ounces of gold at $2,325 per ounce, with 50,000 ounces still to unwind through 2026-27. Notably, the firm remains unhedged on silver, a strategic bet to fully benefit from any rallies in its primary metal.

Analyst & Investor Commentary:

• Michael Thorne, Resource Sector Analyst at Clearwater Capital: "The revenue figures are undeniably impressive and show the fundamental leverage Endeavour has to production growth. The guided grade improvement is the next crucial catalyst. If they deliver on that while managing costs, the cash flow profile in H2 could be very compelling."
• Sarah Chen, Portfolio Manager: "It's a classic story of short-term pain for long-term gain. The Terronera issues were well-flagged, and the fixes seem pragmatic. The transition to LNG and higher grades are tangible, non-speculative drivers for 2026. The unhedged silver position is a vote of confidence in the market."
• Rick Dalton, Independent Mining Investor: "Enough with the 'learning experience' excuses. They burned diesel for months and mined low-grade ore—that hits the bottom line now. The 'promised' grade increase has been the mantra for a year. I'll believe the improved margins when I see them in the next quarterly report. The market is giving them a pass based on hope, not results."
• Elena Rodriguez, Latin America Mining Risk Consultant: "The adaptation to the challenging terrain at Terronera, which limits stockpiling, is an under-discussed operational success. It shows a capable on-site team. The decreasing capex guidance is also a key signal that the heavy lifting is mostly done, shifting the narrative to free cash flow generation."

This analysis is based on the company's Q4 2025 earnings call. For the complete transcript, please refer to the official corporate filings.