Market Reaction and Stock Performance

Endeavour Silver Corp (EXK), listed on the New York Stock Exchange, recorded double-digit losses over two consecutive trading days, triggering a sharp drop in investor sentiment. As of the close on January 6 (local time), the share price hovered around US$10, down roughly 5% from the previous session after falling more than 10% the day before. This correction, coming amid a 13% year-to-date rally in silver prices, suggests that the market is reacting more sensitively to company-specific developments.

Endeavour Silver | Careers ## Issuance of US$350 Million Unsecured Convertible Bonds The immediate catalyst for the sell-off was the announcement of a large convertible bond offering. In December, Endeavour Silver completed an issuance of US$350 million (maturing in 2031) in unsecured convertible senior notes. Proceeds are earmarked for: - Repayment of the existing ING Capital loan - Development of the Pitarrilla project in Mexico - General corporate purposes Stock Performance Although the company characterized the debt refinancing and investment in key growth projects as a balance-sheet improvement, concerns over potential share dilution and increased leverage prompted stock declines of 2–5% immediately following the disclosure.

Strategic Portfolio Adjustment

Simultaneously, the company agreed to sell the Bolañitos gold-silver mine in Mexico for up to US$50 million, of which US$40 million will be received in a mix of cash and stock at closing. The deal is expected to close by January 2026. This move aims to monetize non-core assets for cash and focus capital on larger, infrastructure-advantaged projects. However, investors are wary of near-term production declines and uncertainty in the company’s future production profile.

Balancing Growth Investment vs. Shareholder Dilution

Ultimately, the share-price correction centers on the tug-of-war between growth funding and shareholder dilution. Despite reaching 12-month highs driven by strong silver prices, Endeavour Silver posted a net loss last year, highlighting earnings volatility. The potential conversion of US$350 million in bonds into new shares stands as a key overhang. Looking ahead, quarterly development updates and production guidance—particularly on long-lead projects like Pitarrilla and Terronera—will be critical checkpoints for the stock’s direction.