EXK - Endeavour Silver (EXK)(EDR:CA) - Standing on the Bridge to a More Exciting Outlook
Full year production results and 2022 guidance. Compared to 2020, silver, and gold production in 2021 increased 38.6% and 13.8% to 4,870,787 ounces and 42,262 ounces, respectively. Strong full year operational performance was due, in part, to higher throughput and grades at the Guanacevi mine. At year-end, Endeavour held 1,028,340 ounces of silver and 1,044 ounces of gold bullion and 54,270 ounces of silver and 2,630 ounces of gold in concentrate inventory. In 2022, silver production is expected to range from 4.2 million to 4.8 million ounces, while gold production is expected to range from 31,000 to 35,000 ounces.Updating production and earnings estimates. We are updating our 2021 and 2022 EPS estimates to $(0.01) and $0.14 from $0.02 and $0.15, respectively. Our 2021 EBITDA estimates are $37.9 million and $65.9 million compared to our prior estimates of $44.8 million and $67.2 million, respectively. Our 2022 estimates reflect lower production, partially offset by sales from inventory, and a higher share count to reflect equity issuance related to the recently announced Pitarrilla acquisition.Fourth quarter earnings date. EXK will release fourth quarter 2021 financial results before the market open on March 10, 2022, and management will host a conference call for investors on the same day at 1:00 pm ET. We anticipate discussion to center on sources of future growth, including Terronera, Pitarrilla, and Parral. With respect to Terronera, once financing is in place, the board will approve construction which is expected to take 24 months with commercial production expected in the first half of 2024.Rating is Market Perform. We remain impressed with how the company’s intermediate and long-term growth pipeline is developing. We think near-term risk and reward is balanced given steady production levels in 2022 and 2023 and a relatively high operating cost profile which could improve when Terronera goes into commercial production. Read More >>