EXK - Endeavour Silver: Industry-Leading Growth But At A Price

• Endeavour Silver released its Q4 and FY2021 results last week, reporting quarterly production of ~1.44 million ounces of silver and ~9,500 ounces of gold, translating to a slight increase year-over-year.
• Despite the decision to withhold some sales, revenue was up 19% year-over-year to a new multi-year high of $165.3 million, while mine operating earnings increased 33%.
• Unfortunately, the company has guided for a softer year ahead, and inflationary pressures have put pressure on margins, with FY2021 AISC up 16% year-over-year.
• With one of the best growth profiles sector-wide, Endeavour is a name to keep an eye on, but at ~1.90x P/NAV, I see better bets elsewhere currently from a relative value standpoint.

For further details see: