Endeavour Silver - Operating Cost Profile Expected to Improve in the Second Half

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 were some costs in the second quarter that won't repeat in the second half, and management is confident they will be able to achieve tonnage and grade targets for Guanacevi and Bolanitos. Terronera feasibility study. Endeavour ended the quarter with cash of $125.2 million. The company expects to complete a feasibility study for the Terronera project during the third quarter and believes the equity portion of the project's funding is secure with $60 million to $100 million expected to be project financed. Rating is Market Perform. While the company continues to work on reducing its operating cost profile, we think it is making the right moves to position the company for growth. In addition to the Terronera mine project, Endeavour recently agreed to acquire the Bruner gold exploration project in Nevada from Canamex Gold Corp. for $10 million. The transaction requires the approval of Canamex shareholders. Senior Analyst: Mark Reichman Contact at: mreichman@noblecapitalmarkets.com REPORT ATTACHED if you experience difficulties obtaining the report, please, contact Director of Research at: mkupinski@noblecapitalmarkets.com Read More >>

News Provided by Channelchek via QuoteMedia

The Conversation (0)
Silver bar surrounded by shiny silver nuggets on a black background.

Top 5 Canadian Silver Stocks of 2025

Silver prices surged during the second quarter of 2025, surpassing the US$37 per ounce mark and reaching their highest levels in 14 years.

The price movements stem from a tightening supply and demand situation, which has seen above-ground inventories squeezed due to an increasing need from industrial sectors, particularly the growing photovoltaics industry.

However, demand has also increased due to heightened investor interest in alternative safe-haven assets, as gold prices reached record highs. The shifting sentiment comes amid uncertainty over a US trade policy that could reduce the world's gross domestic product by 1 percent.

Keep reading...Show less
Silver bar chart going up.

5 Silver Stocks With Dividends

Silver is a notoriously volatile metal capable of wide price swings in either direction. However, the metal is also seen by many as a safe-haven investment and a hedge against inflation.

While investing in silver bullion is one popular method for gaining exposure, silver-mining companies offer another route.

Silver-mining companies with strong balance sheets and experienced management teams are able to capitalize on high silver prices and weather the storm of low silver prices. Some of the most profitable silver-mining companies are even able to offer investors dividends, which may be appealing for those who are in it for the long haul.

Keep reading...Show less
Rapid Successfully Undertakes $10.5M Capital Raising to Fund Acquisition of the Webbs and Conrads NSW Silver Projects

Rapid Successfully Undertakes $10.5M Capital Raising to Fund Acquisition of the Webbs and Conrads NSW Silver Projects

Rapid Critical Metals Limited (‘Rapid,’ ‘RCM’ or ‘Company’) is pleased to announce that the Company has received firm commitments from institutional, sophisticated and professional investors for the placement of 437,500,000New Fully Paid Ordinary Shares (New Shares) at an issue price of A$0.024 per new share (post 12-for-1 consolidation) to raise gross proceeds of A$10.5 million (Placement). The Placement comprises two tranches:

Keep reading...Show less
Silver bars with rising chart, "Weekly Editor's Picks" text overlay.

Editor's Picks: Silver Price Hits 13 Year High, Gold Takes a Breather

Gold was on the decline this week, closing just below US$3,370 per ounce, after tensions in the Middle East pushed it past the US$3,430 level toward the end of last week.

All eyes were on the US Federal Reserve, which in a widely expected move left interest rates unchanged on Wednesday (June 18) following its two day meeting. The central bank cut rates in December 2024, but has kept them steady for its last four gatherings.

US President Donald Trump wasn't pleased, calling Powell "too late" in a Thursday (June 19) post on Truth Social. While speculation that Trump will fire Powell has died down, the president did recently say he intends to announce his next pick for the Fed leader position "very soon."

Keep reading...Show less

Latest Press Releases

Related News

×