Thursday, August 11, 2022
Endeavour Silver (EXK)
Withholding Sales for Inventory Impacts Quarterly Results
Endeavour Silver is a mid-tier precious metals mining company that operates two high-grade, underground, silver-gold mines in Mexico. Endeavour is currently advancing the Terronera mine project towards a development decision, pending financing and final permits and exploring its portfolio of exploration and development projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer. Our philosophy of corporate social integrity creates value for all stakeholders.
Mark Reichman, Senior Research Analyst, Natural Resources, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Second quarter 2022 results. Endeavour generated a second quarter adjusted net loss of $4.3 million, or $(0.02) per share, compared to adjusted net income of $2.4 million, or $0.01 per share, during the prior year period. We had projected a loss of $5.6 million, or $(0.03) per share. Including changes in the fair value of investments, the company reported a loss of $(0.07) per share. Endeavour retained inventory for future sale at higher prices. At quarter end, Endeavour held 1,399,356 ounces of silver and 2,580 ounces of gold in bullion inventory and 12,408 ounces of silver and 587 ounces of gold in concentrate inventory.
Updating estimates. Endeavour increased its production forecast to a range of 7.6 million to 8.0 million from 6.7 million to 7.6 million silver equivalent ounces to reflect higher than planned ore-grades along the El Curso ore body at Guanacevi. While the company is experiencing cost inflation, cash and all-in sustaining costs expectations remain $9.00 to $10.00 per ounce and $20.00 to $21.00 per ounce, respectively. We increased our 2022 EPS estimate to $0.11 from $0.10 and reduced our 2023 estimate to $0.13 from $0.15 to reflect modestly lower commodity prices and margin….
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.
