Tuesday, February 26, 2019

Endeavour Silver (EXK)

Narrower loss than expected; development projects underpin long-term growth potential.

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. 

Mark Reichman, Senior Research Analyst, Noble Capital Markets, Inc.

RATING: OUTPERFORM

• EXK
  reports fourth quarter and full year earnings.  EXK reported a full year net loss of $12.4 million, or ($0.10) per share, compared to our forecast of a loss of $15.9 million, or ($0.12) per share.  The company reported a fourth quarter loss of $3.7 million, or ($0.03) per share, which was better than our estimate of a loss of $7.2 million, or ($0.06) per share.  The variance to our estimate was due to lower than expected cost of sales.  Fourth quarter and full year adjusted EBITDA amounted to $2.2 million and $21.9 million, respectively. 
• Near-term
  catalysts.  In our view, improving performance at the Guanacevi mine as a result of developing the higher-grade Milache and Santa Cruz Sur ore bodies, achieving commercial production at the El Compas mine during the first quarter of 2018 and making a production decision with respect to the Terronera Mine project could provide greater visibility with respect to near-term and long-term earnings growth.  Longer-term growth should… 
  
  
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*Analyst
certification and important disclosures included in 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.