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Updating estimates. While our EPS estimates are unchanged, we have trimmed our 2021 EBITDA forecast to $45.4 million from $47.5 million based on modestly lower silver and gold prices. For 2022, we have increased our EPS and EBITDA estimate to $0.20 and $79.2 million from $0.18 and $75.5 million, respectively, based on an improved operating cost structure. Terronera feasibility study. Endeavour recently reported the results of a feasibility study for Terronera which is expected to become Endeavour's largest and lowest cost mine. Over a 12-year mine life, Terronera is expected to produce an average of 3.3 million and 33 thousand ounces of silver and gold per year, respectively. Initial capital expenditures are expected to be $175 million. For perspective, the company expects to produce between 3.6 million and 4.3 million ounces of silver and between 31.0 and 35.5 thousand ounces of gold in 2021. Board approval is expected upon receipt of amended permits and completion of project financing in the fourth quarter of 2021. We anticipate commercial production in early 2024. Future growth opportunities. Endeavour has several promising opportunities on the horizon, including the Parral project in Mexico and the Aida, Paloma, and Cerro Marquez exploration targets in Chile. Management views Parral as the company's next core asset following Terronera. Acquired in 2016, Parral is a district scale opportunity in Chihuahua, Mexico containing four distinct mineralized vein systems. The company will commission a preliminary economic assessment once it defines a minimum resource of 60 million ounces of silver equivalent. Rating is Market Perform. While the company continues to reduce the operating cost profile of existing mines, results of the Terronera feasibility study are very encouraging, including a highly competitive cost structure. The feasibility study improved on the 2020 preliminary feasibility study with greater mineral reserves, higher production, and a longer mine life. We will update our longer-term estimates following the release of the full Terronera feasibility study which is expected shortly. Read More >>
