EXK - Endeavour Silver: A Mixed Reserve Update In FY2020

• Endeavour Silver released its Q4 and FY2020 reserve and resource update earlier this month, reporting an 11% increase in mineral reserves to 48.6~ million ounces.
• This increase in the mineral reserve mostly came from Guanacevi, where silver reserves doubled year over year to 12~ million ounces, with gold reserves also up substantially.
• However, while Endeavour's total reserves increased, most of the silver reserves are at Terronera, and the Bolanitos and El Compas reserves suggest a short mine life at these two assets.
• Given that Endeavour has a much smaller reserve base compared to its peers, and a short mine life at two of its assets, I do not see a margin of safety, especially considering the current valuation of over 20x earnings.

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