Management’s Discussion & Analysis

Extracted Document Text

This is a readable excerpt of the EGM normalized Markdown text. It helps search engines and researchers understand PDF, filing, or company-document content while the original source remains authoritative.

# Q2

Source: https://edrsilver.com/site/assets/files/15049/2026-q2-edr-mda.pdf
Fetched: 2026-09-23T00:49:49.869+00:00
Source artifact: dd767c11-9a43-4a3e-a6cf-6a7e37174336
Normalizer input: text

## Content

# Q2
Endeavour Silver Corp.
Management’s Discussion & Analysis
For the Three Months and Six Months Ended June 30, 2026 and 2025
ENDEAVOUR SILVER CORP. | MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 1
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE PERIOD ENDED JUNE 30, 2026
This Management Discussion and Analysis (“MD&A”) should be read in conjunction with the condensed consolidated interim financial
statements of Endeavour Silver Corp. (“Endeavour” or “the Company”) for the period ended June 30, 2026, and the related notes
contained therein, which were prepared in accordance with IAS 34 – Interim Financial Reporting of the International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).
The Company uses certain non-IFRS financial measures in this MD&A as described under “Non-IFRS Measures”. Additional
information relating to the Company, including the most recent Annual Information Form (the “Annual Information Form”), is available
on SEDAR+ at www.sedarplus.com, and the Company’s most recent annual report on Form 40-F which has been filed with the
U.S. Securities and Exchange Commission (the “SEC”) on EDGAR at www.sec.gov. This MD&A contains “forward-looking
statements” that are subject to the risk factors set out in a cautionary note contained herein. All dollar ($) amounts are expressed in
United States (“$”) dollars and tabular amounts are expressed in millions of U.S. dollars unless Canadian dollars (CAN$), Mexican
pesos (MXN) or Peruvian soles (PEN) are otherwise indicated. This MD&A is dated as of July 29, 2026, and all information contained
herein is current as of July 29, 2026, unless otherwise stated.
Cautionary Note to U.S. Investors Regarding Mineral Reserves and Resources
This MD&A has been prepared in accordance with the requirements of Canadian provincial securities laws, which differ from the
requirements of U.S. securities laws. As a result, the Company reports the mineral reserves and resources of the projects it has an
interest in according to Canadian standards. Canadian reporting requirements for disclosure of mineral properties are governed by
National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 is a rule developed by the Canadian
Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information
concerning mineral projects. These standards differ from the requirements of the SEC that are applicable to domestic United States
reporting companies under subpart 1300 of Regulation S-K (“S-K 1300”) under the Exchange Act. As an issuer that prepares and files
its reports with the SEC pursuant to the Multijurisdictional Disclosure System, the Company is not subject to the requirements of S-K
1300. Any mineral reserves and mineral resources reported by the Company in accordance with NI 43-101 may not qualify as such
under or differ from those prepared in accordance with S-K 1300. Accordingly, information included or incorporated by reference in
this MD&A concerning descriptions of mineralization and estimates of mineral reserves and resources under Canadian standards may
not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements
of S-K 1300.
ENDEAVOUR SILVER CORP. | MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 2
Forward-Looking Statements
This MD&A contains “forward-looking statements” within the meaning of the U.S. Securities Litigation Reform Act of 1995, as amended
and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward-looking statements
and information include, but are not limited to, management evaluation of capital improvement initiatives at the Kolpa mine;
management’s expectation that the costs at the Kolpa mine will moderate as operations stabilize; improvement of recoveries and
increase in metal production at the Terronera project; ramp-up of the LNG plant in Terronera and related timing; impact of the LNG
plant on costs; management’s expectations that costs will improve; management expectations that the pace of investment at Pitarrilla
will ramp up; the reliability of mineral resource estimates; the continuation of exploration and mining operations; the Company’s future
production and cost guidance announcements; the Company’s areas of focus at its properties; mineral resource estimations and life
of mine plans; planned expansions, exploration and drilling activities, and the Company’s areas of focus for each of these; the
Company’s plans for drilling and technical work; the Company’s annual outlook including anticipated performance in 2026, production
and cost guidance and financial results, silver and gold grades and recoveries, cash costs per ounce (“oz”), anticipated operating
costs, planned capital expenditures and sustaining capital, and the forecast price of gold and silver and the assumptions underlying
the forecasts; planned capital allocation; working capital; growth capital; the Company’s capital requirements and the adequacy of the
operating cash flow and existing working capital to meet capital requirements and the timing and results of various activities. Forward-
looking statements are frequently characterized by words such as “plan”, “expect”, “forecast”, “project”, “intend”, “believe”, “anticipate”,
“outlook” and other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements
are based on the opinions and estimates of management at the dates the statements are made and are subject to a variety of risks
and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-
looking statements.
The Company does not intend to, and does not assume any obligation to, update such forward-looking statements or information,
other than as required by applicable law. Forward-looking statements or information involve known and unknown risks, uncertainties
and other factors and are based on assumptions that may cause the actual results, level of activity, performance or achievements of
the Company and its operations and related timeframes to be materially different from those expressed or implied by such statements.
Such factors and assumptions include, among others: the ongoing effects of inflation and supply chain issues on project economics;
fluctuations in the prices of silver and gold; fluctuations in the currency markets (particularly the Mexican peso, Chilean peso, Canadian
dollar, Peruvian sol, and U.S. dollar); fluctuations in interest rates; effects of inflation and changes in national and local governments,
legislation, taxation, controls, regulations and political or economic developments in Canada, Peru and Mexico; operating or technical
difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining
(including, but not limited to environmental hazards, industrial accidents, unusual or unexpected geological conditions, pressures,
cave-ins and flooding); inadequate insurance, or inability to obtain insurance; availability of and costs associated with mining inputs
and labour; the speculative nature of mineral exploration and development; diminishing quantities or grades of mineral reserves as
properties are mined; risks in obtaining necessary licenses and permits; challenges to the Company’s title to properties; as well as
those factors described under “Risk Factors” in the Company’s most recent Annual Information Form. Although the Company has
attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking
statements or information, there may be other factors that cause results to be materially different from those anticipated, described,
estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be
accurate as actual results and future events could differ materially from those anticipated in such statements or information.
Accordingly, readers should not place undue reliance on forward-looking statements or information.
Certain forward-looking statements and information in this MD&A may be considered “financial outlook” within the meaning of
applicable Canadian securities legislation. Financial outlook is presented in this MD&A for the purpose of assisting investors and
others in understanding certain key elements of the Company’s financial results and business plan, as well as the objectives, strategic
priorities and business outlook of the Company, and in obtaining a better understanding of the Company’s anticipated operating
environment. Readers are cautioned that such financial outlook may not be appropriate for other purposes.
Qualified Person
The scientific and technical information contained in this MD&A relating to the Company’s mines and mineral projects has been
reviewed and approved by Dale Mah, B.Sc., P.Geo., Vice President Corporate Development of Endeavour, a Qualified Person within
the meaning of NI 43-101.
ENDEAVOUR SILVER CORP. | MANAGEMENT’S DISCUSSION & ANALYSIS PAGE 3
Table of Contents
OVERVIEW OF THE BUSINESS ................................................................................................................. 5
OPERATING HIGHLIGHTS .......................................................................................................................... 5
REVIEW OF OPERATING RESULTS .......................................................................................................... 6
GUANACEVÍ ................................................................................................................................................. 8
KOLPA ........................................................................................................................................................ 10
TERRONERA .............................................................................................................................................. 11
BOLAÑITOS ................................................................................................................................................ 12
EXPLORATION AND EVALUATION .......................................................................................................... 13
CONSOLIDATED FINANCIAL RESULTS .................................................................................................. 14
KEY ECONOMIC TRENDS ........................................................................................................................ 16
ANNUAL OUTLOOK ................................................................................................................................... 18
LIQUIDITY AND CAPITAL RESOURCES .................................................................................................. 20
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS ........................................................ 23
OUTSTANDING SHARE DATA .................................................................................................................. 26
CHANGES IN ACCOUNTING POLICIES AND CRITICAL ACCOUNTING ESTIMATES .......................... 27
CONTROLS AND PROCEDURES ............................................................................................................. 27
QUARTERLY RESULTS AND TRENDS .................................................................................................... 28
NON-IFRS MEASURES.......................................................................

[Excerpt trimmed for readability. Open the original source for the complete filing or document.]