Tuesday, May 7, 2019
Endeavour Silver Corporation (EXK)
Challenging Times; Investment Rating Lowered to Market Perform.
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.
Refer to full report for price target, fundamental analysis and rating.
- Weaker than expected first quarter. Endeavour reported a first quarter loss of $13.3 million, or ($0.10) per share, compared to earnings of $2.3 million, or $0.02 per share, during the prior year period. We had forecasted a loss of $780 thousand, or ($0.01) per share. The variance to our estimate is attributed to increased costs associated with continued challenges at the Guanacevi mine and underperformance at the Bolanitos and El Compas mines. All-in sustaining costs increased 36.6% due to lower production and higher cash operating costs, inventory write-downs, employee severance payments, exploration and general and administrative expenses.
- Lowering estimates. We now forecast a 2019 loss of ($0.18) per share and EBITDA of $8.6 million, compared to our prior estimates of $0.04 per share and EBITDA of $36.6 million, respectively. Additionally, we have low…
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