- Endeavour Silver is one of the worst-performing precious metals stocks the past few months, down more than 45% from its June highs.
- The poor performance can be attributed to Endeavour's razor-thin all-in sustaining cost margins, which will remain below 20% if the silver price remains below $23.00/oz.
- This weakness in the silver price could weigh on Endeavour's ability to generate free cash flow to help fund Terronera, suggesting share dilution could be back on the table.
- After a precipitous decline, Endeavour Silver is short-term oversold, but at a valuation of ~1.50x NPV (5%), I see much better value elsewhere in the sector.
For further details see:
Endeavour Silver: An Inferior Buy-The-Dip Candidate