Endeavour Silver's second quarter of 2026, reported on July 29, is best understood as the first clean period in which the company's acquisition-led growth strategy is actually showing through the accounting noise. The acquisition of the Kolpa mine in Peru closed in May 2025, and the Terronera project began commissioning in late 2025; by Q2 2026 both assets are contributing to consolidated results. Silver production reached 1.94 million ounces and gold production hit 10,474 ounces, producing 3.4 million silver equivalent ounces in total. More importantly, throughput at Kolpa rose 36% from the previous quarter after the plant expansion commissioned at the end of Q1, while the Terronera liquefied natural gas power plant entered operation in June. The operational story is therefore one of successfully bringing new capacity online, supported by record realized metal prices.
Revenue from operations was $212.1 million, up 149% from the same period last year, driven by a realized silver price of $70.16 per ounce and a realized gold price of $4,305 per ounce. Mine operating earnings increased to $74.0 million from $7.7 million in Q2 2025, and operating earnings swung to $64.7 million from a $4.8 million loss. Adjusted net earnings, which strip out derivative gains, foreign exchange items, and the Bolañitos sale, came in at $44.8 million, or $0.15 per share. Cash and working capital both improved materially, ending June at $236.6 million and $214.4 million respectively.
Our central read is that Endeavour has executed on the operational front, but a large portion of the current investment case is actually a call on silver prices and on management's ability to convert exploration momentum into the next producing mine. The stock now trades around $11.07, near the middle of a 52-week range of $5.63 to $15.15, implying a market capitalization of approximately $3.28 billion on average volume of 7.16 million shares. A trailing price-to-earnings ratio of 55.3 is being carried by a forward P/E of 9.38, which tells us the market expects the recent earnings jump to persist. The question is whether the improvement is durable enough to justify that compression.
The most important risk is the same one that giveth: metal prices. Silver and gold prices are volatile, and the company's all-in sustaining costs, net of by-product credits, rose to $36.89 per silver ounce from $25.16 in Q2 2025. Terronera is accretive to volume but is still in ramp-up, and any production shortfall against current spot prices would compress margins quickly. We would watch the next set of throughput figures from Kolpa and Terronera, along with cost guidance updates, as the near-term tests of the thesis.