Endeavour Silver (TSX: EDR; NYSE: EXK) operations at its Terronera silver-gold mine in Mexico remained suspended Thursday as a local community blockade over infrastructure, services and financial support continued in its second week.
The Canadian miner said an ejido community — a rural group that holds communal land used for agriculture — forced the company to halt operations at the Jalisco state mine on Aug. 12. Endeavour described the blockade as illegal and said it could take legal action, though it said the protest has remained peaceful, orderly and respectful.
Residents are demanding improved road maintenance, support for medical and communications services, greater control and access to the water supply and more financial assistance, according to Endeavour.
The dispute threatens to disrupt the ramp-up of Terronera less than a year after it reached commercial production, adding uncertainty at a new operation that recorded the lowest cash costs among Endeavour’s mines during the second quarter.
Talks continue
Endeavour is keeping a small team at Terronera to maintain security protocols, while the site remains accessible for maintenance work. The company said it continues to negotiate with ejido leaders in an effort to resolve the dispute and resume operations as soon as possible.
Despite the closure, shares in Endeavour Silver have gained 45% since the end of July when the company reported gold and silver output about a third higher in second quarter earnings than the same period last year. They were at $15.23 apiece in Toronto on Thursday morning.
Terronera makes up 49% of the company’s net asset value, according to BMO Capital Markets.
“Stronger production has been expected in this year’s second half, driven by the mining sequence at Terronera which sees higher grades,” BMO mining analyst Kevin O’Halloran said in a note on Monday. “At this stage, we have not adjusted our Terronera production estimates of 1.23 million oz. silver-equivalent in the third quarter and 1.42 million oz. in the fourth quarter. We forecast consolidated production of 8.6 million oz. silver and 46,100 oz. gold in 2026.”
Ramp up
The company had planned to ramp up the mining complex during the third quarter. Its liquefied natural gas plant began commissioning in June as part of that process, before the blockade interrupted operations.
Terronera processed 175,729 tonnes and produced 582,043 payable oz. silver during the second quarter of 2026 at a cash cost of $5.07 per oz., according to Endeavour’s second quarter report.
The duration of the shutdown now depends on whether Endeavour and the community can resolve demands involving local infrastructure and services. The company has not provided a timeline for restarting production.
Endeavour has three operating mines in Mexico and Peru and a portfolio of exploration projects in Mexico, Chile and the U.S.
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