EDR:CC - Endeavour Silver: Valuation Finally Starting To Improve

• Endeavour Silver released its Q1 results last month, reporting quarterly production of ~1.31 million ounces of silver and ~8,700 ounces of gold.
• While this translated to a sharp decline in gold production, silver output was higher on the back of solid grade performance at Guanacevi, translating to 4% higher SEO production.
• Unfortunately, this higher revenue was offset by much weaker margins in the period, and we should see further margin compression on a sequential basis in Q2.
• The silver lining is that some of this negativity looks priced into the stock, and at ~1.13x P/NAV, further weakness below US$3.20 should set up a buying opportunity from a swing-trading standpoint.

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