Movers and SHAKERS
Endeavour Silver (EXK)(EDR:CA)
Strong 2Q Production Results; On Track to Meet or Exceed Guidance
Endeavour Silver Corp is a precious metal mining company. The company is primarily engaged in silver mining and owns three high-grade, underground, silver-gold mines in Mexico. Its other business activities include acquisition, exploration, development, extraction, processing, refining and reclamation. The company is organized into four operating mining segments, Guanacevi, Bolanitos, El Cubo, and El Compas, which are located in Mexico as well as Exploration and Corporate segments. Its Exploration segment consists of projects in the exploration and evaluation phases in Mexico and Chile.
Mark Reichman, Senior Research Analyst of Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Production surpasses our estimates. Compared to the prior year period, second quarter silver and gold production increased 80% and 92%, respectively, to 1,073,724 ounces and 11,166 ounces, versus our estimates of 1,054,376 ounces and 7,943 ounces. Year-over-year comparisons reflect 2020 COVID-related production impacts. During the quarter, Endeavour sold 1,120,266 ounces of silver and 9,810 ounces of gold. Payable silver and gold ounces produced during the quarter amounted to 1,062,267 and 10,955 ounces, respectively. Gold production exceeded our estimates at all three mines due to higher throughput, grades, and recoveries. Silver production also surpassed our estimate driven by strong performance at Guanacevi. Compared to the first quarter of 2021, second quarter silver and gold production increased 2.4% and 0.5%, respectively.
Full year 2021 and 2022 estimates. We forecast 2021 EPS of $0.06 and EBITDA of $52.5 million, largely unchanged from our prior forecast. The wildcard for the second half is El Compas where reserves are only sufficient to...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.