EX-99.1 2 exhibit99-1.htm EXHIBIT 99.1 Endeavour Silver Corp.: Exhibit 99.1 - Filed by newsfilecorp.com

 

 

Endeavour Silver Corp.


Condensed Consolidated Interim Financial Statements

Unaudited

Three Months Ended March 31, 2025 and 2024

 

 

 

 

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  1

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION

(unaudited)

(expressed in thousands of US dollars)


      March 31,     December 31,  
  Notes   2025     2024  
               
ASSETS              
               
Current assets              
Cash and cash equivalents   $ 64,697   $ 106,434  
Other investments     1,213     1,070  
Accounts and other receivables 4   10,450     10,285  
Inventories 5   39,055     36,010  
Prepaids and other current assets     5,211     3,848  
Total current assets     120,626     157,647  
               
Non-current income tax receivable     3,564     3,572  
Non-current IVA receivable 4   37,643     31,301  
Non-current loan receivable     1,179     1,156  
Other non-current assets 6   13,838     19,368  
Mineral properties, plant and equipment 6   551,138     506,205  
Total assets   $ 727,988   $ 719,249  
               
LIABILITIES AND SHAREHOLDERS' EQUITY              
               
Current liabilities              
Accounts payable, accrued liabilities and other current liabilities   $ 59,552   $ 53,943  
Income taxes payable     10,720     9,457  
Loans payable 7   10,139     5,234  
Derivative liabilities     25,416     10,232  
Total current liabilities     105,827     78,866  
               
Non-current loans payable 7   112,301     115,002  
Provisions for reclamation and rehabilitation     12,135     11,635  
Deferred income tax liability     10,101     10,315  
Non-current derivative liabilities      33,298     16,627  
Other non-current liabilities     2,280     2,367  
Total liabilities     275,942     234,812  
               
Shareholders' equity              
Common shares     850,986     850,986  
Contributed surplus     6,122     5,606  
Retained deficit     (405,062 )   (372,155 )
Total shareholders' equity     452,046     484,437  
Total liabilities and shareholders' equity   $ 727,988   $ 719,249  

The accompanying notes are an integral part of these consolidated financial statements.

Approved on behalf of the Board:

/s/    Margaret Beck   /s/    Daniel Dickson
Director   Director

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  2

ENDEAVOUR SILVER CORP.

CONDENDSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE EARNINGS (LOSS)

(unaudited)

(expressed in thousands of US dollars, except for shares and per share amounts)


      Three months ended  
      March 31,     March 31,  
  Notes   2025     2024  
               
Revenue 9 $ 63,498   $ 63,725  
               
Cost of sales:              
Direct production costs     35,173     36,705  
Royalties     6,243     6,408  
Share-based payments 8   34     79  
Depreciation     9,206     8,877  
      50,656     52,069  
               
Mine operating earnings     12,842     11,656  
               
Expenses:              
Exploration, evaluation and development 10   4,538     4,270  
General and administrative 11   4,274     4,044  
      8,812     8,314  
               
Operating earnings     4,030     3,342  
               
Finance costs     417     314  
               
Other income (expense):              
Foreign exchange gain (loss)     (975 )   1,179  
Loss on derivative liabilities     (31,931 )   -  
Investment and other     1,451     33  
      (31,455 )   1,212  
               
Earnings (loss) before income taxes     (27,842 )   4,240  
               
Income tax expense:              
Current income tax expense     5,279     5,667  
Deferred income tax recovery     (214 )   (233 )
      5,065     5,434  
               
Net loss and comprehensive loss   $ (32,907 ) $ (1,194 )
               
               
Basic loss per share   $ (0.13 ) $ (0.01 )
Diluted loss per share 8 $ (0.13 ) $ (0.01 )
               
Basic weighted average number of shares outstanding     262,323,863     227,503,581  
Diluted weighted average number of shares outstanding 8   262,323,863     227,503,581  

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  3

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(unaudited)

(expressed in thousands of US dollars, except for shares and per share amounts)


  Notes   Number of
shares		     Share
Capital		     Contributed
Surplus		     Retained
Deficit		     Total
Shareholders'
Equity		  
Balance at December 31, 2023     217,245,492   $ 722,695   $ 4,556   $ (340,910 ) $ 386,341  
                                 
Public equity offerings, net of issuance costs     23,091,986     38,910     -     -     38,910  
Share-based compensation     -     -     1,170     -     1,170  
Loss for the period     -     -     -     (1,194 )   (1,194 )
Balance at March 31, 2024     240,337,478   $ 761,605   $ 5,726   $ (342,104 ) $ 425,227  
                                 
Public equity offerings, net of issuance costs     20,273,985     83,463     -     -     83,463  
Exercise of options     1,712,400     5,918     (1,961 )   -     3,957  
Canceled options and performance share units     -     -     (231 )   231     -  
Share-based compensation     -     -     2,072     -     2,072  
Loss for the period     -     -     -     (30,282 )   (30,282 )
Balance at December 31, 2024     262,323,863   $ 850,986   $ 5,606   $ (372,155 ) $ 484,437  
                                 
Share-based compensation     -     -     516     -     516  
Loss for the period     -     -     -     (32,907 )   (32,907 )
Balance at March 31, 2025     262,323,863   $ 850,986   $ 6,122     ($405,062 ) $ 452,046  

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  4

ENDEAVOUR SILVER CORP.

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(unaudited)

(expressed in thousands of US dollars)


      Periods ended  
      March 31,     March 31,  
  Notes   2025     2024  
               
Operating activities              
Net loss for the period   $ (32,907 ) $ (1,194 )
               
Items not affecting cash:              
Share-based compensation 8 (b)(c)   516     1,170  
Depreciation 6   9,561     9,135  
Deferred income tax expense (recovery)     (214 )   (131 )
Unrealized foreign exchange loss     275     136  
Finance costs     417     314  
Interest income     (990 )   -  
Accretion of loans receivable 4   (22 )   (75 )
Unrealized loss on derivative liabilities     31,855     -  
(Gain) loss on other investments     (143 )   879  
Net changes in non-cash working capital 12   (4,985 )   (5,651 )
Cash from operating activities     3,363     4,583  
               
Investing activities              
Payment for mineral properties, plant and equipment 6   (41,585 )   (44,869 )
Proceeds from disposal of other investments     -     2,643  
Proceeds from loan receivable 4   -     450  
Interest received     990     -  
Cash used in investing activities     (40,595 )   (41,776 )
               
Financing activities              
Repayment of loans payable 7   (1,209 )   (1,188 )
Repayment of lease liabilities     (115 )   (97 )
Interest paid 7   (3,162 )   (135 )
Net proceeds from public equity offerings     -     38,910  
Payment of deferred financing fees     -     (696 )
Cash from (used in) financing activities     (4,486 )   36,794  
               
Effect of exchange rate change on cash and cash equivalents     (19 )   (11 )
               
Decrease in cash and cash equivalents     (41,737 )   (410 )
Cash and cash equivalents, beginning of the period     106,434     32,286  
Cash and cash equivalents, end of the period   $ 64,697   $ 34,876  

Supplemental cash flow information (Note 12)

The accompanying notes are an integral part of these condensed consolidated interim financial statements.

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  5

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three months ended March 31, 2025 and 2024
(unaudited)
(expressed in thousands of US dollars, unless otherwise stated)

1. CORPORATE INFORMATION

Endeavour Silver Corp. (the "Company" or "Endeavour Silver") is a corporation governed by the Business Corporations Act (British Columbia, Canada). The Company is engaged in silver mining in Mexico and related activities including acquisition, exploration, development, extraction, processing, refining and reclamation. The Company is also engaged in exploration activities in Chile and United States, and on May 1, 2025, has acquired Compañia Minera Kolpa S.A. ("Minera Kolpa") in Peru (Note 16). The address of the registered office is #1130 - 609 Granville Street, Vancouver, B.C., V7Y 1G5.

2. BASIS OF PRESENTATION

These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting and do not include all of the information required for full annual financial statements and should be read in conjunction with the Company's annual audited consolidated financial statements as at and for the year ended December 31, 2024.

The Board of Directors approved these condensed consolidated interim financial statements for issue on May 12, 2025.

The preparation of consolidated financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

These consolidated financial statements are presented in the Company's functional currency of US dollars and include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation of these subsidiaries.

3. MATERIAL ACCOUNTING POLICIES

The material accounting policies have been applied consistently to all periods presented and by all subsidiaries in the group. The material accounting policies applied in these condensed consolidated interim financial statements are the same as those applied in the Company's annual audited consolidated financial statements as at and for the year ended December 31, 2024. The significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that were applied to the annual audited consolidated financial statements as at and for the year ended December 31, 2024.

4. ACCOUNTS AND OTHER RECEIVABLES

    March 31,     December 31,  
    2025     2024  
             
Trade receivables $ 3,338   $ 3,209  
IVA and GST receivable   5,368     5,220  
Other receivables   344     456  
Current portion of loan receivable   1,400     1,400  
  $ 10,450   $ 10,285  

The trade receivables consist of receivables from provisional silver and gold sales from the Bolañitos mine. The fair value of receivables arising from concentrate sales contracts that contain provisional pricing mechanisms is determined using the appropriate period end closing prices from the exchange that is the principal active market for the particular metal. As such, these receivables, which meet the definition of an embedded derivative, are classified within Level 2 of the fair value hierarchy (Note 15).

As at March 31, 2025, the total Mexican subsidiaries value added tax, Impuesto al Valor Agregado ("IVA"), receivable of $42,775 (December 31, 2024 - $36,420) has been allocated between the current portion of $5,132, which is included in accounts and other receivables, and the non-current portion of $37,643 (December 31, 2024 - $5,119 and $31,301, respectively). The non-current portion includes $36,444 for Terronera and $1,199 for Pitarrilla - these claims are eligible for submission upon generation of revenue (December 31, 2024 - $29,353 and $1,948, respectively).

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  6

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three months ended March 31, 2025 and 2024
(unaudited)
(expressed in thousands of US dollars, unless otherwise stated)

5. INVENTORIES

    March 31,     December 31,  
    2025     2024  
             
Warehouse inventory $ 21,070   $ 19,694  
Stockpile inventory   8,300     7,349  
Finished goods inventory   8,093     7,213  
Work in process inventory   1,592     1,754  
  $ 39,055   $ 36,010  

6. MINERAL PROPERTIES, PLANT AND EQUIPMENT AND OTHER NON-CURRENT ASSETS

    Exploration
& evaluation
assets		     Mineral
properties		     Plant     Machinery
&
equipment		     Building     Transport
& office
equipment		     Total  
Cost                                          
                                           
Balance at December 31, 2023 $ 80,231   $ 575,916   $ 133,614   $ 117,977   $ 25,550   $ 15,036   $ 948,324  
                                           
Additions   3,712     118,381     60,266     32,035     10,177     1,655     226,226  
Impairment of exploration properties   (181 )   -     -     -     -     -     (181 )
Disposals   -     -     (42 )   (299 )   -     (129 )   (470 )
Balance at December 31, 2024 $ 83,762   $ 694,297   $ 193,838   $ 149,713   $ 35,727   $ 16,562   $ 1,173,899  
                                           
Additions   795     34,555     10,356     9,844     366     605     56,521  
Balance at March 31, 2025 $ 84,557   $ 728,852   $ 204,194   $ 159,557   $ 36,093   $ 17,167   $ 1,230,420  
                                           
Accumulated depreciation                                          
                                           
Balance at December 31, 2023 $ -   $ 466,704   $ 85,632   $ 61,484   $ 9,746   $ 10,101   $ 633,667  
                                           
Depreciation   -     22,582     1,797     8,137     428     1,461     34,405  
Disposals   -     -     (42 )   (295 )   -     (41 )   (378 )
Balance at December 31, 2024 $ -   $ 489,286   $ 87,387   $ 69,326   $ 10,174   $ 11,521   $ 667,694  
                                           
Depreciation         7,741     577     2,580     315     375     11,588  
Balance at March 31, 2025 $ -   $ 497,027   $ 87,964   $ 71,906   $ 10,489   $ 11,896   $ 679,282  
                                           
Net book value                                          
At December 31, 2024 $ 83,762   $ 205,011   $ 106,451   $ 80,387   $ 25,553   $ 5,041   $ 506,205  
At March 31, 2025 $ 84,557   $ 231,825   $ 116,230   $ 87,651   $ 25,604   $ 5,271   $ 551,138  

Included in mineral properties is $182,532 for acquisition and development costs of development properties (December 31, 2024 - $157,146). During the period ended March 31, 2025 the Company capitalized borrowing costs related to the Terronera Debt Facility in the amount of $3,303 using a capitalization rate of 11.5%.

Other non-current assets include $12,846 (December 31, 2024 - $18,299) of deposits related to items of property, plant and equipment at Terronera.

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  7

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three months ended March 31, 2025 and 2024
(unaudited)
(expressed in thousands of US dollars, unless otherwise stated)

7. LOANS PAYABLE




   Debt Facility     Equipment
Financing		     Total  
Currency   USD     USD        
Year of maturity   2031     2026        
Balance at December 31, 2023 $ -   $ 8,519   $ 8,519  
                   
Loans drawdowns   120,000     3,470     123,470  
Applied deferred financing fees   (8,770 )   -     (8,770 )
Finance cost   7,200     441     7,641  
Repayments of principal   -     (4,081 )   (4,081 )
Payments of interest   (3,665 )   (438 )   (4,103 )
Balance at December 31, 2024 $ 114,765   $ 7,911   $ 122,676  
                   
Loans drawdowns   -     2,843     2,843  
Finance cost   3,303     187     3,490  
Repayments of principal   -     (1,209 )   (1,209 )
Payments of interest   (2,975 )   (187 )   (3,162 )
Balance at March 31, 2025 $ 115,093   $ 9,545   $ 124,638  
                   
Less: Current portion of loans payable   5,500     4,639     10,139  
Less: Accrued interest   2,198     -     2,198  
Balance: Non-current loans payable $ 107,395   $ 4,906   $ 112,301  

Debt Facility

The Debt Facility is secured through corporate guarantees from the Company, certain of the Company's subsidiaries and a first

ranking security interest over the Terronera project. The Debt Facility is subject to certain customary covenants and, as at March 31, 2025, the Company was in compliance with these covenants.

Equipment Financing

The equipment financing is secured by the underlying equipment purchased and is subject to various non-financial covenants and as at March 31, 2025, the Company is in compliance with these covenants. As at March 31, 2025, the net book value of equipment includes $18,425 (December 31, 2024 - $15,661) of equipment pledged as security for the equipment financing.

8. SHARE CAPITAL

Diluted Earnings per Share   Periods ended  
    March 31,     March 31,  
  2025     2024  
             
Net loss $ (32,907 ) $ (1,194 )
Basic weighted average number of shares outstanding   262,323,863     227,503,581  
Effect of dilutive securities:            
Stock options   -     -  
Equity settled deferred share units   -     -  
Performance share units   -     -  
Diluted weighted average number of share outstanding   262,323,863     227,503,581  
             
Diluted loss per share $ (0.13 ) $ (0.01 )

As of March 31, 2025, there are 925,291 anti-dilutive stock options (March 31, 2024 - 4,895,734).

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  8

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three months ended March 31, 2025 and 2024
(unaudited)
(expressed in thousands of US dollars, unless otherwise stated)

9. REVENUE

    Periods ended  
    March 31,     March 31,  
    2025     2024  
             
Silver sales $ 39,151   $ 41,222  
Gold sales   24,783     22,996  
Less: smelting and refining costs   (436 )   (493 )
Revenue $ 63,498   $ 63,725  

Changes in fair value from provisional pricing are included in silver and gold sales. During the period revenue by product was:

    Periods ended  
    March 31,     March 31,  
    2025     2024  
             
Concentrate sales $ 16,966   $ 15,355  
Provisional pricing adjustments   117     (711 )
Total revenue from concentrate sales   17,083     14,644  
Refined metal sales   46,415     49,081  
Total revenue $ 63,498   $ 63,725  

Provisional pricing adjustments on sales of concentrate are final pricing adjustments made upon finalization of the sales contract. The Company's sales contracts are initially priced with provisional pricing periods lasting typically one to three months with provisional pricing adjustments recorded to revenue as market prices vary.

10. EXPLORATION, EVALUATION AND DEVELOPMENT

    Periods ended  
    March 31,
2025		     March 31,
2024		  
             
Depreciation $ 250   $ 159  
Share-based compensation   69     151  
Exploration salaries, wages and benefits   836     660  
Direct exploration expenditures   2,073     1,630  
Evaluation and development salaries, wages and benefits   733     754  
Direct evaluation and development expenditures   577     916  
  $ 4,538   $ 4,270  

11. GENERAL AND ADMINISTRATIVE

    Periods ended  
    March 31,     March 31,  
    2025     2024  
             
Depreciation $ 105   $ 99  
Share-based compensation   413     940  
Salaries, wages and benefits   1,019     1,182  
Directors' DSU expense (recovery)   638     465  
Direct general and administrative   2,099     1,358  
  $ 4,274   $ 4,044  

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  9

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three months ended March 31, 2025 and 2024
(unaudited)
(expressed in thousands of US dollars, unless otherwise stated)

12. SUPPLEMENTAL DISCLOSURE WITH RESPECT TO CASH FLOWS

    Periods ended  
    March 31,     March 31,  
    2025     2024  
             
Net changes in non-cash working capital:            
Accounts and other receivables $ (6,265 ) $ (9,374 )
Income tax receivable   (126 )   296  
Inventories   (2,233 )   5,407  
Prepaids   (1,229 )   754  
Accounts payable and accrued liabilities   3,605     (2,863 )
Income taxes payable   1,263     129  
  $ (4,985 ) $ (5,651 )
             
Non-cash financing and investing activities:            
Reclamation included in mineral properties, plant and equipment $ -   $ (102 )
Fair value of capital assets acquired under finance leases $ -   $ -  
             
Other cash disbursements:            
Income taxes paid $ 2,412   $ 2,534  
Special mining duty paid $ 3,913   $ 2,574  

13. SEGMENT DISCLOSURES

The Company's operating segments are based on internal management reports that are reviewed by the Company's executives (the chief operating decision makers) in assessing performance. The Company has two operating mining segments which are located in Mexico, Guanaceví and Bolañitos. The Company has one development project in Mexico, Terronera, as well as Exploration and Corporate segments. The Exploration segment consists of projects in the exploration and evaluation phases in Mexico, Chile and the USA. Exploration projects that are in the local district surrounding a mine are included in the mine's segments.

For three months ended
March 31 		    Revenue     Cost of sales
excluding
depreciation		     Depreciation     Mine
operating
earnings		     Net earnings and
comprehensive
earnings		  
                                 
Guanaceví 2025   46,851     31,530     6,569     8,752     5,461  
  2024   49,082     33,280     5,815     9,987     4,283  
Bolañitos 2025   16,647     9,920     2,637     4,090     2,345  
  2024   14,643     9,912     3,062     1,669     1,327  
Terronera 2025   -     -     -     -     (33,646 )
  2024   -     -     -     -     (1,670 )
Exploration 2025   -     -     -     -     (3,228 )
  2024   -     -     -     -     (2,600 )
Corporate 2025   -     -     -     -     (3,839 )
  2024   -     -     -     -     (2,534 )
Consolidated 2025   63,498     41,450     9,206     12,842     (32,907 )
  2024   63,725     43,192     8,877     11,656     (1,194 )

The Exploration segment included $308 of costs incurred in Chile for the three months ended March 31, 2025 (March 31, 2024 - $428) and $14 of costs incurred in USA (March 31, 2024 - $5).

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  10

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three months ended March 31, 2025 and 2024
(unaudited)
(expressed in thousands of US dollars, unless otherwise stated)


 
 		     Total Assets     Total Liabilities     Additions to fixed
assets		  
                     
Guanaceví March 31, 2025 $ 114,672   $ 42,242   $  3,445  
  December 31, 2024   114,745     43,896     22,876  
Bolañitos March 31, 2025   47,858     13,548     1,925  
  December 31, 2024   53,176     7,886     7,893  
Terronera March 31, 2025   429,762     209,321     50,174  
  December 31, 2024   373,531     173,376     189,912  
Exploration March 31, 2025   87,363     1,124     968  
  December 31, 2024   86,579     1,326     1,571  
Corporate March 31, 2025   48,333     9,707     9  
  December 31, 2024   91,218     8,328     3  
Consolidated March 31, 2025 $ 727,988   $ 275,942   $ 56,521  
  December 31, 2024   719,249     234,812     222,255  

14. COMMITMENTS & CONTINGENCIES

Commitments

As of March 31, 2025, the Company had 6,918 committed for capital equipment purchases.

Contingencies

Due to the nature of the Company's activities, various legal and tax matters are outstanding from time to time. The Company is routinely subject to audit by tax authorities in the countries in which it operates and has received a number of tax assessments in various locations, which are currently at various stages of progress with the relevant authorities. The outcomes of these audits and assessments are uncertain however, the Company is confident of its position on the various matters under review.

15. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

In connection with the Debt Facility (Note 7), on March 28, 2024, the Company entered into gold forward swap contracts to hedge against the fluctuation in gold prices. Company had forward swap contracts settlements that have been amended during the three months ended March 31, 2025 and will settle with updated settlements from June 2025 to October 2027 and a revised forward price for those settlements of $2,329 per ounce of gold.

The Company also hedged a portion of the estimated remaining capital and operating expenditures incurred in Mexican Pesos. For the three months ended March 31, 2025, the Company settled $3,600 Mexican Peso forward purchase contracts and on settlement recorded a loss of $75. As of March 31, 2025, a further $45,000 contracts remain outstanding to be settled over the period from April 2025 to December 2026. The remaining contracts have a weighted average base price of 20.95 pesos per US dollar.

As at March 31, 2025, the Company has revalued the forward contracts to their respective fair values and as a result recorded a loss of $33,731 on the gold swap contracts and a gain of $1,876 on the Mexican Peso contracts in the condensed consolidated interim statement of earnings and loss for the period. As of March 31, 2025, the Company carries the combined derivative liability of $58,714 in the statement of financial position, comprised of $25,416 current liability (December 31, 2024 - $10,232) and $33,298 non-current liability (December 31, 2024 - $16,627).

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  11

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three months ended March 31, 2025 and 2024
(unaudited)
(expressed in thousands of US dollars, unless otherwise stated)

(a) Financial assets and liabilities

As at March 31, 2025, the carrying and fair values of the Company's financial instruments by category are as follows:

    Fair value through
profit or loss		     Amortized cost     Carrying value     Fair value  
                         
Financial assets:                        
Cash and cash equivalents $ -   $ 64,697   $ 64,697   $ 64,697  
Other investments   1,213     -     1,213     1,213  
Trade and other receivables   3,338     344     3,682     3,682  
Loans receivable   -     2,579     2,579     2,579  
Total financial assets $ 4,551   $ 67,620   $ 72,171   $ 72,171  
                         
Financial liabilities:                        
Accounts payable, accrued liabilities and other current liabilities $ 4,478   $ 55,074   $ 59,552   $ 59,552  
Derivative liabilities   58,714     -     58,714     58,714  
Loans payable   -     122,440     122,440     122,440  
Total financial liabilities $ 63,192   $ 177,514   $ 240,706   $ 240,706  

As at December 31, 2024, the carrying and fair values of the Company's financial instruments by category are as follows:

    Fair value through
profit or loss		     Amortized cost     Carrying value     Fair value  
                         
Financial assets:                        
Cash and cash equivalents $ -   $ 106,434   $ 106,434   $ 106,434  
Other investments   1,070     -     1,070     1,070  
Trade and other receivables   3,310     355     3,665     3,665  
Loans receivable   -     2,556     2,556     2,556  
Total financial assets $ 4,380   $ 109,345   $ 113,725   $ 113,725  
                         
Financial liabilities:                        
Accounts payable, accrued liabilities and other current liabilities $ 3,853   $ 50,090   $ 53,943   $ 53,943  
Derivative liabilities   26,859     -     26,859     26,859  
Loans payable   -     120,236     120,236     120,236  
Total financial liabilities $ 30,712   $ 170,326   $ 201,038   $ 201,038  

(b) Fair value hierarchy

Assets and liabilities as at March 31, 2025 measured at fair value on a recurring basis include:

      Level 1     Level 2     Level 3     Total  
Financial assets:                        
Other investments $ 1,153   $ -   $ 60   $ 1,213  
Trade receivables   -     3,338     -     3,338  
Total financial assets $ 1,153   $ 3,338   $ 60   $ 4,551  
                      -  
Financial liabilities:                        
Cash settled deferred share units $ 4,467   $ -   $ -   $ 4,467  
Share appreciation rights   -     11     -     11  
Derivative liability   -     58,714     -     58,714  
Total financial liabilities $ 4,467   $ 58,725   $ -   $ 63,192  

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  12

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three months ended March 31, 2025 and 2024
(unaudited)
(expressed in thousands of US dollars, unless otherwise stated)

Assets and liabilities as at December 31, 2024 measured at fair value on a recurring basis include:

      Level 1     Level 2     Level 3     Total  
Financial assets:                        
Other investments $ 1,050   $ -   $ 20   $ 1,070  
Trade receivables   -     3,310     -     3,310  
Total financial assets $ 1,050   $ 3,310   $ 20   $ 4,380  
                         
Financial liabilities:                        
Cash settled deferred share units $ 3,829   $ -   $ -   $ 3,829  
Share appreciation rights   -     24     -     24  
Derivative liability   -     26,859     -     26,859  
Total financial liabilities $ 3,829   $ 26,883   $ -   $ 30,712  

16. SUBSEQUENT EVENTS

(a) Acquisition of Minera Kolpa

On April 1, 2025, the Company announced it had entered into a definitive agreement to acquire all outstanding shares of Minera Kolpa, a privately held silver-focused polymetallic mining company located in Huancavelica, Peru. Acquisition closed on May 1, 2025. The total consideration is approximately $145,000, comprising of $80,000 in cash, $65,000 in Endeavour common shares, and up to $10,000 in contingent payments based on mineral resource expansion targets.

As part of the transaction, Endeavour will also assume approximately $20,000 in net debt.

Concurrently with the acquisition, Endeavour entered into a $35,000 copper stream agreement with Versamet Royalties Corporation that was used to fund the portion of the cash consideration of the Minera Kolpa acquisition. This agreement includes security over the acquired entity and provides Versamet the right of first refusal on future streaming arrangements. Under the terms of the stream:

  • Versamet will receive refined copper via LME Warrants, initially representing 95.8% of the copper produced.
  • Once 6,000 tonnes are delivered, the stream reduces to 71.85%, and after 10,500 tonnes, to 47.9%.
  • Versamet will pay 10% of the spot price per tonne, with the remaining 90% reducing the prepaid deposit.

On April 8, 2025, the Company closed a $45,000 bought deal equity financing, consisting of the issuance of 11,600,000 common shares at a price of US$3.88 per share.  On April 16, 2025 the underwriters exercised their over-allotment option with additional issuance of 1,285,000 Common Shares at a price of $3.88 per share. The net proceeds were used to fund a portion of the cash consideration for the Minera Kolpa acquisition.

(b) Grants of equity instruments

On April 2, 2025, the Company granted, 733,530 stock options with an exercise price of CAN$5.39. 119,475 DSUs issued to the directors of the Company, 299,900 PSUs which subject to performance criteria vest on April 2, 2028 and 269,490 restricted share units.

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  13

ENDEAVOUR SILVER CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Three months ended March 31, 2025 and 2024
(unaudited)
(expressed in thousands of US dollars, unless otherwise stated)


HEAD OFFICE Suite #1130, 609 Granville Street
Vancouver, BC, Canada  V7Y 1G5
Telephone: (604) 685-9775
 1-877-685-9775
Website: www.edrsilver.com
   
DIRECTORS Margaret Beck
Ricardo Campoy
Daniel Dickson
Amy Jacobsen
Angela Johnson
Rex McLennan
Kenneth Pickering
Mario Szotlender
   
OFFICERS Daniel Dickson - Chief Executive Officer
Donald Gray - Chief Operating Officer
Elizabeth Senez - Chief Financial Officer
Greg Baylock - Vice President, Operations
Luis Castro - Senior Vice President, Exploration
Dale Mah - Vice President, Corporate Development
Alejandra Hincapie - Corporate Secretary
   
REGISTRAR AND
TRANSFER AGENT
 Computershare Trust Company of Canada
3rd Floor - 510 Burrard Street
Vancouver, BC, Canada  V6C 3B9
   
AUDITORS KPMG LLP
777 Dunsmuir Street
Vancouver, BC, Canada  V7Y 1K3
   
SOLICITORS Blake, Cassels & Graydon LLP
Suite #3500, 1133 Melville Street
Vancouver, BC, Canada  V6E 4E5
   
SHARES LISTED Toronto Stock Exchange
Trading Symbol - EDR

New York Stock Exchange
Trading Symbol - EXK

ENDEAVOUR SILVER CORP.   |   CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS PAGE  14