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Wednesday, April 15, 2020
Endeavour Silver Corp (EXK)
Lowering 2020 Estimates to Reflect Second Quarter Suspension of Operations in Mexico
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.
First quarter production results are a mixed bag. Compared to the prior year period, first quarter silver and gold production declined 19.9% and 15.7% to 857,659 ounces and 8,476 ounces, respectively. The decline was due to the suspension of mining at the El Cubo mine on November 30, 2019 and lower production at both Bolanitos and El Compas. Guanacevi production results outperformed our expectations, while Bolanitos and El Compas underperformed. Silver production exceeded our estimates, while gold production was below our estimate. Compared to the fourth quarter of 2019, first quarter silver and gold production declined 8.7% and 11.5%, respectively.
Updating estimates. We forecast a 2020 loss of ($0.06) per share and EBITDA of $22.5 million compared to our prior estimates of $0.01 and $34.1 million. Our revised estimates reflect, in part, lower production in the second quarter due to the suspension of mine activities in Mexico from April 1 through April 30 due to government-mandated work restrictions to curb COV-19 infections. We forecast 2021 EPS and EBITDA of $0.07 and $44.9 million, respectively. Our 2021 estimates reflect continued improvement in mine throughput and grades and the benefit of higher average gold and...
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.