Tuesday, February 26, 2019
Endeavour Silver (EXK)
Narrower loss than expected; development projects underpin long-term growth potential.
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.
Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.
RATING: OUTPERFORM
- EXK
reports fourth quarter and full year earnings. EXK reported a full year net loss of $12.4 million, or ($0.10) per share, compared to our forecast of a loss of $15.9 million, or ($0.12) per share. The company reported a fourth quarter loss of $3.7 million, or ($0.03) per share, which was better than our estimate of a loss of $7.2 million, or ($0.06) per share. The variance to our estimate was due to lower than expected cost of sales. Fourth quarter and full year adjusted EBITDA amounted to $2.2 million and $21.9 million, respectively. - Near-term
catalysts. In our view, improving performance at the Guanacevi mine as a result of developing the higher-grade Milache and Santa Cruz Sur ore bodies, achieving commercial production at the El Compas mine during the first quarter of 2018 and making a production decision with respect to the Terronera Mine project could provide greater visibility with respect to near-term and long-term earnings growth. Longer-term growth should…
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