(Reuters) - Canada’s Endeavour Silver Corp’s EDR.TO second-quarter profit fell 56 percent on lower prices for the metal and an increase in foreign exchange losses.
Silver prices fell 24 percent to an average of $29.4 per ounce during the April-June quarter, compared with last year.
Net profit fell to $7.5 million, or 6 cents per share, from $17 million, or 12 cents per share, a year earlier.
On an adjusted basis, the company earned $5.9 million, or 6 cents per share.
The Mexico-focused company said revenue rose 11 percent to $40.4 million on higher gold and silver production. It incurred foreign exchange losses of $3.4 million during the quarter.
The company’s silver production rose 22 percent to about 1 million ounces in the second quarter, while gold production rose 59 percent to 7,695 ounces.
Endeavour Silver, which has three silver producing mines and two exploration projects in Mexico, said it secured a $75 million secured credit facility with Scotiabank.
The company is on track to meet its 2012 silver production of between 4.9 million and 5.0 million ounces and gold production of between 33,500 and 35,000 ounces.
Cash costs fell 22 percent to $5.46 in the quarter.
However, Endeavour Silver expects cash costs to rise in the third quarter as work gains traction at its underground, silver-gold El Cubo mine in Mexico, which was acquired in the second quarter.
Shares of the company, which has a market value of C$776.12 million, closed at C$7.88 on Friday on the Toronto Stock Exchange.
Reporting by Krithika Krishnamurthy in Bangalore