EXK - Endeavour Silver (EXK) - Solid 2Q Production; Holding Out for Higher Prices

Second quarter production ahead of our estimates. Compared to the prior year period, second quarter silver production increased 26.6% to 1,359,207 ounces, while gold production declined 16.8% to 9,289 ounces. Payable silver and gold ounces produced amounted to 1,346,276 and 9,117 ounces, respectively. Production was ahead of our expectations due to higher grades at both mines. Compared to the first quarter of 2022, silver and gold production increased 3.4% and 6.8%, respectively. Endeavour retained inventory for sale at higher prices. Second quarter silver and gold sales amounted to 602,894 ounces and 9,792 ounces, respectively. At quarter end, Endeavour held 1,399,355 ounces of silver and 2,580 ounces of gold in bullion inventory and 12,408 ounces of silver and 588 ounces of gold in concentrate inventory.Updating estimates. Due to lower silver sales in the second quarter, we now forecast a second quarter loss of $5.5 million, or $(0.03) per share. While we expect sales from inventory to benefit the third and fourth quarters, we have lowered our full year EBITDA and EPS estimates to $60.0 million and $0.10, respectively, from $67.8 million and $0.15. Due to lower 2023 silver and gold pricing expectations, we have lowered our 2023 EBITDA and EPS estimates to $70.9 million and $0.15, respectively, from $75.6 million and $0.17. Read More >>