EXK - Endeavour Silver (EXK)(EDR:CA) - Updating Estimates Ahead of Upcoming Earnings Release
Updating production forecast. Compared to the prior year period, third quarter silver and gold production increased 38.5% and 2.7%, respectively, to 1,305,399 ounces and 10,541 ounces. During the quarter, Endeavour sold 699,539 ounces of silver and 9,925 ounces of gold. Payable silver and gold ounces produced during the quarter amounted to 1,295,126 and 10,328 ounces, respectively. Sequentially, silver production increased 21.6%, while gold production decreased 5.6%. Endeavour raised 2021 silver and gold production guidance to a range of 4.5 to 4.8 million ounces and 40.1 to 42.1 thousand ounces, respectively, from 3.6 to 4.3 million ounces and 31 to 35.5 thousand ounces. We currently forecast production of 4.7 million ounces of silver and 41.5 thousand ounces of gold.Updating estimates. We have lowered our 2021 EPS and EBITDA estimates to $0.01 and $42.9 million, respectively, from $0.03 and $45.4 million. Our revised estimates reflect, in part, lower sales as a percent of production and a lower margin. However, we expect stronger fourth quarter sales due to sales from inventory. We have lowered our 2022 EPS and EBITDA estimates to $0.15 and 67.0 million from $0.20 and $79.2 million to reflect lower margin on sales. Third quarter earnings date. EXK will release third quarter 2021 financial results before the market open on November 9, 2021, and management will host a conference call for investors on the same day at 1:00 pm ET. We anticipate commentary about opportunities to expand the El Curso ore body at Guanacevi, along with potential sources of growth in the years prior to commencing production at the Terronera mine which we anticipate will occur in early 2024.Rating is Market Perform. Management has successfully improved performance at the Guanacevi and Bolanitos mines, and positioned the company for long-term growth with several promising development and exploration projects in Mexico, the United States, and Chile. Results of the recently filed Terronera feasibility study are encouraging, including a highly competitive cost structure. Board approval is expected upon receipt of amended permits and completion of project financing in the fourth quarter of 2021. Read More >>