EXK - Endeavour Silver (EXK)(EDR:CA) - Endeavour Builds Metals Inventory For Sale At Higher Prices

First quarter production results not far off the mark. Compared to the prior year period, first quarter silver and gold production increased 22.2% and 31.1% to 1,048,100 ounces and 11,109 ounces, respectively, compared to our estimates of 1,106,764 ounces and 9,495 ounces. During the quarter, the company sold 623,379 ounces of silver and 10,663 ounces of gold. Payable silver and gold ounces produced during the quarter amounted to 1,036,710 and 10,894 ounces, respectively. Most of the variance in gold production was due to higher gold production from El Compas due to higher processed tonnes and gold grades. Compared to the fourth quarter of 2020, first quarter silver and gold production declined 6.2% and 11.7%, respectively.Updating 2021 estimates. The company withheld metal from sale due to pricing and ended the quarter with 523,235 ounces of silver and 1,123 ounces of gold in bullion inventory and 6,582 ounces of silver and 566 ounces of gold in concentrate inventory. Based on lower first quarter sales and modestly lower commodity price assumptions, we have lowered our 2021 EPS and EBITDA estimates to $0.13 and $67.9 million from $0.17 and $75.7 million. Our 2022 EPS and EBITDA estimates remain unchanged at $0.22 and $80.7 million, respectively.First quarter earnings date. EXK will release first quarter 2021 financial results before the market open on May 11, 2021 and management will host a conference call for investors on the same day at 12:00 pm ET.Rating remains Market Perform. In our view, risk/reward for the stock appears balanced. Upside to our estimates is contingent on higher gold and silver prices, along with the company's efforts to extend the life of the El Compas mine. Other significant catalysts include advancing the Terronera mine development project, along with positive outcomes related to its exploration projects, including Parral where the company resumed drilling in 2021.Read More >>