Vancouver’s Endeavour Silver (TSX:EDR) is slashing its production for 2016 by more than 25% as it idles its currently unprofitable El Cubo mine, located in Mexico, in light of soft silver prices.
The Vancouver-based company said the cutbacks 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.
As of press time, shares of Endeavour Silver were trading on the TSX at $1.76 – an increase of 1.15%.
