EXK - Endeavour Silver: FY2021 Guidance Disappoints

• Endeavour Silver released its Q4 and FY2020 results earlier this month, and reported quarterly production of 2.1~ million SEOs, helping the company to meet guidance despite COVID-19 related shutdowns.
• However, the FY2021 guidance released last week was underwhelming, with production flat year-over-year at costs well above the industry average.
• While Guanacevi has continued to deliver and has been a star performer, production will be heavily reliant on El Curso, translating to much higher royalty costs.
• A rising silver price will lift all boats, but I would view any rallies above $6.10 as a selling opportunity, where Endeavour would trade at over 25x FY2021 annual EPS estimates.

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