Endeavour Silver Corp. (TSX:EDR - News; NYSE
Amex:EXK)(DBFrankfurt:EJD) announced today that it is forecasting its seventh
consecutive year of production growth and lower cash costs in 2011. The
Company owns and operates two high grade, underground, silver-gold mines in
Mexico, the Guanacevi Mine in Durango State and the Guanajuato Mine in
Silver production is forecast to exceed
3.7 million ounces (oz) in 2011, with gold production in excess of 19,000 oz
(4.7 million oz of silver equivalent production at the current silver:gold
ratio of 50:1). Cash costs are expected to continue to decline from US$5.93
per oz range reported in Q3, 2010. Assuming US$24 silver and US$1320 gold,
Endeavour anticipates its operating profit margin will exceed US$18 per oz in
Endeavour carried a healthy financial
position through the 2010 year-end, with US$105 million in working capital of
which US$87 million was cash or cash equivalents, up sharply from US$39
million in working capital and US$27 million in cash at the end of 2009.
As a result of recent exploration
successes in the Guanajuato district, Endeavour's Board of Directors has
approved plans for a major expansion of the Guanajuato plant in 2011, from
the current 600 tonnes per day (tpd) up to 1000 tpd, at an estimated cost of
US$4.3 million. This expenditure is part of the Company's US$33 million
budget for capital investments in 2011, which should readily be covered by
the Company's anticipated 2011 cash-flow.
Similar to recent years, the first two
quarters of silver production in 2011 are scheduled to be relatively flat, as
management focuses on the plant expansion, mine development, and other
capital programs. However, silver production is expected to increase in Q3
and Q4 as the expanded Guanajuato plant comes online and new ore-bodies under
development during the first half of the year enter into production.
Bradford Cooke, Chairman and CEO, is
also pleased to announce the appointment of Ria Fitzgerald, B. Com., CFA, as
Endeavour's Corporate Finance Consultant. Ria started her career as an
Analyst in Corporate Finance for RBC in 2001, then moved to Salman Partners
where she worked her way up from Analyst to Associate to Vice President,
Investment Banking until she left Salman in 2010.
Ms. Fitzgerald helped to place over 100
financings at Salman Partners, participating in more than $7 billion in
equity offerings for private and public companies in a variety of industries,
with a focus on the mining sector. She also provided Financial Advisory
Services for mergers & acquisitions of companies and target assets
including Valuations & Fairness Opinions.
Ria will consult part time with
Endeavour management on corporate development, in order to identify and
evaluate potential mergers and acquisition opportunities to facilitate
Endeavour's future growth.
Endeavour Silver Corp. is a mid-cap
silver mining company focused on the growth of its silver production,
reserves and resources in Mexico. Since start-up in 2004, Endeavour has
posted six consecutive years of growing silver production, reserves and
resources. The organic expansion programs now underway at Endeavour's two
operating silver mines in Mexico combined with its strategic acquisition and
exploration programs should help Endeavour achieve its goal to become the
next premier mid-tier silver mining company.
ENDEAVOUR SILVER CORP.
Bradford Cooke, Chairman and CEO
CAUTIONARY DISCLAIMER - FORWARD LOOKING
This news release contains
"forward-looking statements" within the meaning of the United
States private securities litigation reform act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian securities legislation. Such forward-looking statements and
information herein include, but are not limited to, statements regarding
Endeavour's anticipated performance in 2010, including silver and gold
production, timing and expenditures to develop new silver mines and
mineralized zones, silver and gold grades and recoveries, cash costs per
ounce, capital expenditures and sustaining capital and the use of proceeds
from the Company's recent financing. The Company does not intend to, and does
not assume any obligation to update such forward-looking statements or
information, other than as required by applicable law.
Forward-looking statements or
information involve known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance or
achievements of Endeavour and its operations to be materially different from
those expressed or implied by such statements. Such factors include, among
others: fluctuations in the prices of silver and gold, fluctuations in the
currency markets (particularly the Mexican peso, Canadian dollar and U.S.
dollar); changes in national and local governments, legislation, taxation,
controls, regulations and political or economic developments in Canada and
Mexico; operating or technical difficulties in mineral exploration,
development and mining activities; risks and hazards of mineral exploration,
development and mining (including environmental hazards, industrial
accidents, unusual or unexpected geological conditions, pressures, cave-ins
and flooding); inadequate insurance, or inability to obtain insurance;
availability of and costs associated with mining inputs and labour; the
speculative nature of mineral exploration and development, diminishing
quantities or grades of mineral reserves as properties are mined; the ability
to successfully integrate acquisitions; risks in obtaining necessary licenses
and permits, and challenges to the company's title to properties; as well as
those factors described in the section "risk factors" contained in
the Company's most recent form 40F/Annual Information Form filed with the
S.E.C. and Canadian securities regulatory authorities. Although the Company
has attempted to identify important factors that could cause actual results
to differ materially from those contained in forward-looking statements or
information, there may be other factors that cause results to be materially
different from those anticipated, described, estimated, assessed or intended.
There can be no assurance that any forward-looking statements or information
will prove to be accurate as actual results and future events could differ
materially from those anticipated in such statements or information.
Accordingly, readers should not place undue reliance on forward-looking
statements or information.
The TSX Exchange has neither approved
nor disapproved the contents of this news release.