EXK - Endeavour Silver: An Inferior Buy-The-Dip Candidate

• Endeavour Silver is one of the worst-performing precious metals stocks the past few months, down more than 45% from its June highs.
• The poor performance can be attributed to Endeavour's razor-thin all-in sustaining cost margins, which will remain below 20% if the silver price remains below $23.00/oz.
• This weakness in the silver price could weigh on Endeavour's ability to generate free cash flow to help fund Terronera, suggesting share dilution could be back on the table.
• After a precipitous decline, Endeavour Silver is short-term oversold, but at a valuation of ~1.50x NPV (5%), I see much better value elsewhere in the sector.

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