| Endeavour Silver Anticipates Increased Production in 2018 | |
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- By Alberto Abaterusso
On Thursday, the market reacted coldly to guidance for production and costs for Endeavour Silver Corp (EXK). As a result, the stock went unexplainably down 2% and closed at $2.49 per share on the New York Stock Exchange. Endeavour Silver Corp. has some catalysts in store for 2018 but evidently the market needs more time to process them. I expect an upside in the market value of this miner over the next days of trading.
The company expects increases in the production of silver and gold. The yellow metal is anticipated at a volume of 58,000 to 64,000 ounces, which represents a growth of 9.4% to 21% from 2017. The production of silver will range between 5.8 million and 6.4 million ounces. This is a 39% to 53.4% growth from last year. According to the company, 2018 production will be boosted by more silver and gold production than the company will make at all three of its existing mines. Also, the additional contribution from El Compas mine, where commercial production is expected to occur in late July, will support production in 2018. The production levels for 2018 will lead to a volume of 10.2 million to 11.2 million ounces of silver equivalent. The silver equivalent has been calculated based on a silver to gold ratio of 75:1. The chart below illustrates the trend in the company's production of silver equivalent from 2013 to 2018 (estimated average output): Some other indicators on Endeavour Silver Corp: - The price-book (P/B) ratio is 2.24 versus an industry median of 2.01
- The EV-to-EBITDA ratio is 17.44 versus an industry median of 10.14
- The EBITDA margin is 11.5% versus an industry median of 22.8%.
- The RSI (14 days) is 53.74.
(Disclosure:I have no positions in any security mentioned in this article.) This article first appeared on GuruFocus.
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Endeavour Silver Corp.
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PRODUCER |
CODE : EDR.TO |
ISIN : CA29258Y1034 |
CUSIP : 29258Y 10 3 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Endeavour Silver is a gold and silver producing company based in Canada. Endeavour Silver holds various exploration projects in Chile and in Mexico. Its main assets in production are GUANAJUATO (BOLANITOS) and GUANACEVI in Mexico and its main exploration properties are ARROYO SECO and PARRAL in Mexico and LA PRESIDENTA CHILE in Chile. Endeavour Silver is listed in Canada, in Germany and in United States of America. Its market capitalisation is CA$ 443.0 millions as of today (US$ 321.9 millions, € 302.0 millions). Its stock quote reached its lowest recent point on January 25, 2002 at CA$ 0.01, and its highest recent level on September 14, 2012 at CA$ 9.99. Endeavour Silver has 127 300 000 shares outstanding. |