Thursday, August 12, 2021
Endeavour Silver (EXK)(EDR:CA)
Operating Cost Profile Expected to Improve in the Second Half
As of April 24, 2020, Noble Capital Markets research on Endeavour Silver is published under ticker symbols (EXK and EDR:CA). The price target is in USD and based on ticker symbol EXK. Research reports dated prior to April 24, 2020 may not follow these guidelines and could account for a variance in the price target.
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.
Second quarter 2021 results. Endeavour reported second quarter 2021 net income of $6.7 million, or $0.04 per share, compared to a loss of $3.3 million, or $(0.02) per share during the prior year period. Excluding a gain on the sale of the El Cubo mine, the company generated net income of $0.8 million, or $0.01 per share. We had projected net income of $6.9 million or $0.04 per share. Revenue was in line with our estimates although operating costs were higher than expected due to inflationary pressures, including increased labor costs. Cash costs per silver ounce and all-in sustaining costs per ounce increased to $13.03 and $25.30, respectively, compared to $7.86 and $19.94 in the first quarter of 2021.
Updating estimates. We have trimmed our 2021 EPS and EBITDA estimates to $0.03 and $47.5 million from $0.06 and $52.5 million, respectively. Our 2022 EPS and EBITDA estimates are $0.18 and $75.5 million, respectively. While our 2022 estimates are largely unchanged, our 2021 estimates reflect second quarter results although we anticipate some margin improvement in the second half of the year. There …
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.
