Excellent production data let this silver producer return to its old strength!

Silver and gold clearly jumped again! A weak US dollar and the hope for economic stimulus allow the precious metals to take off!

There is still an upward trend for the Canadian silver producer Endeavor Silver Corp. (ISIN: CA29258Y1034 / TSX: EDR), the the operates three high-grade underground silver-gold mines in Mexico, Guanaceví in Durango State, Bolañitos in Guanajuato State and El Compás in Zacatecas State. In the third quarter of 2020, the consolidated silver equivalent production continued to improve and compared to the second quarter of 2020, even increased by an impressive 66%which is due to the renewed achievement of the regular throughput.

Despite a heavy rainy season, production in the third quarter was back on track, with an output of 942,274 ounces of silver and 10,260 ounces of gold. In the year as a whole, around 4.4 million ounces of silver equivalent were produced again despite the eight-week shutdowns caused by COVID-19!

Source: Endeavor Silver

A very satisfied Bradford Cooke, CEO of Endeavor Silver, looks relieved and much more optimistic about the future!

“After surviving a difficult second quarter with our mining operations disrupted for more than half the quarter due to the government’s COVID-19 regulation, our operations team was able to return to our production schedule in Q3 2020. Our mines are almost at full capacity, although we currently have fewer employees on site – proof of the positive response from our operations management and our employees. “

It does not matter that the consolidated silver production in the third quarter of 2020 was slightly lower than that in the same quarter of the previous year 2019, which is due to lower silver grades at the mines’ Bolañitos’ and ‘El Compás’ and the cessation of operations at’ El Cubo ‘in November 2019. This was offset by a significant increase in silver-bearing ore at the Guanaceví mine. Consolidated gold production is balanced again due to higher throughputs and more abundant gold-bearing ore (+ 6%) from the ‘Bolañitos’ and ‘Guanaceví’ mines.

Source: Endeavor Silver

A total of 741,263 ounces of silver and 8,998 ounces of gold were sold! Holdings of 412,913 ounces of silver and 1,963 ounces of gold in the form of bars as well as an inventory of 13,761 ounces of silver and 1,032 ounces of gold in concentrate form were accumulated!

Endeavor Silver – back to old strength!

Due to the significantly improved situation in overall operations, the company was even able to “sit out” the latest price correction for precious metals and held back with sales during this time in order to be able to buy more precious metals at higher prices !!! The company will now benefit in absolute terms in the fourth quarter of 2020 with the recovery in precious metal prices, so that a considerable part of the precious metal inventory can now be sold at significantly higher prices.

It is also very gratifying that the silver and gold grades in ‘Guanaceví’ were considerably higher than in the third quarter of 2019 and were even well above plan. Specifically, the mining of the new, higher-grade ore bodies ‘El Curso’, ‘Milache’ and ‘SCS’ led to these significantly higher ore grades. Mine production approached plan in the third quarter of 2020, however extremely humid August and September impacted plant throughput for that quarter. The mine added over 24,000 tons of ore to the heap in the third quarter of 2020 and as the rain subsides, management expects throughput to return to plant capacity of 1,200 tons per day. In order to be able to produce more even in such rainy phases, alternatives are being examined in order to reduce the effects of the rainfalls on the future plant throughput!

The performance on ‘Bolañitos’ is also getting better and better: the throughput recently reached the amount of 1,075 tons per day, while the gold grades fully met the target. However, the silver grades were lower than in the third quarter of 2019. Nevertheless, the company management assumes that the production on ‘San Miguel’ will continue to increase in the fourth quarter, as the mine development has been completed and the grades should rise again!

The ‘El Compás’ mine also showed steady performance, where throughput was above plan and remained stable at around 260 tons per day. So it does not matter that the salaries were slightly lower than in the third quarter of 2019 and thus below the planned salary. This fluctuation was due to dilution and normal fluctuations in the ore body.

Source: Endeavor Silver

A video webcast to discuss the results is scheduled for Tuesday, October 13, 2020 at 1 p.m. EST with Chief Financial Officer Dan Dickson and Director of IR Galina Meleger. A day later, the recording is due to be posted on the company’s website at be available in the Investor Relations, Events, Webcast section.

Our conclusion:

Endeavor Silver has shown itself to be one of the most flexible companies in the raw materials sector over the past few years. The outstanding management responded promptly to all challenges and adapted the company extremely quickly to the respective situation! Now that a new bull market has established itself, the company is doing better than ever and should ‘outperform’ the silver price by a long way.

In addition, one should keep an eye on the projects in Chile, which are yet another absolute ‘game changer’ for the company! Thus not only the short-term prospects are correct, but also the long-term ones!



Jörg Schulte

Risk information and disclaimer: We expressly point out that we do not accept any liability for the content of external links. Every investment in securities is fraught with risks. Due to political, economic or other changes, there can be considerable price losses. This applies in particular to investments in (foreign) small caps as well as in small and microcap companies; Due to the low market capitalization, investments in such securities are highly speculative and involve an extremely high risk up to the total loss of the invested capital. In addition, the shares presented at JS Research UG (limited liability) are partially subject to currency risks. The background information, market assessments and securities analyzes published by JS Research UG (limited liability) for the German-speaking area were prepared in compliance with the Austrian and German capital market regulations and are therefore intended exclusively for capital market participants in the Republic of Austria and the Federal Republic of Germany; other foreign capital market regulations were not taken into account and do not apply in any way. The publications of JS Research UG (limited liability) are for informational purposes only and expressly do not represent a financial analysis, but are promotional texts of a purely advertising nature to the companies discussed in each case, which pay a fee for this. There is no consulting contract between the reader and the authors or the publisher through the purchase of the JS Research UG (limited liability) publications. All information and analyzes do not constitute a solicitation, an offer or a recommendation to buy or sell investment instruments or for other transactions. Every investment in stocks, bonds, options or other financial products is subject to – in some cases considerable – risks. The editors and authors of JS Research UG (limited liability) publications are not professional investment advisors !!! Therefore, it is essential that you always seek advice from a qualified specialist (e.g. your house bank or a qualified advisor you trust) when making investment decisions. All information and data published by JS Research UG (limited liability) come from sources that we consider to be reliable and trustworthy at the time of preparation. However, no guarantee can be given with regard to the correctness and completeness of this information and data. The same applies to the evaluations and statements contained in the analyzes and market assessments by JS Research UG (limited liability). These were created with the necessary care. Any responsibility or liability for the correctness and completeness of the information contained in this publication is excluded. All statements of opinion made reflect the current assessment of the author, which can change at any time without prior notice. No guarantee or liability is expressly assumed that the price or profit developments forecast by JS Research UG (limited liability) will occur.

Information on conflicts of interest: The editors and responsible authors hereby declare that the following conflicts of interest exist at the time of publication with regard to the Endeavor Silver company discussed in this publication: I. Authors and the publisher as well as consultants and clients related to them do not hold any shares at the time of publication in Endeavor Silver, but reserve the right to buy or sell shares at any time and without notice. II. At the time of publication, the authors and the publisher and client as well as consultants close to them have a consulting mandate with Endeavor Silver and receive a fee for this. The authors and the editor know that other stock letters, media, or research firms are reviewing Endeavor Silver stock over the same period. Therefore, symmetrical generation of information and opinions occurs during this period. This publication by JS Research UG (limited liability) is expressly not a financial analysis, but a publication of a very clear and clearly promotional character on behalf of the company under discussion and thus to be understood as an advertising / marketing message.

According to §34 WpHG, I would like to point out that Jörg Schulte, JS Research UG (limited liability) or employees of the company do not hold any shares in Endeavor Silver but can do their own business in the shares at any time. We then expressly point out a conflict of interest. This also applies to options and derivatives based on these securities. Any resulting transactions may, under certain circumstances, affect the company’s share price. The information, recommendations, interviews and company presentations published on the “websites”, the newsletter or the research reports are paid for by the respective companies or third parties (so-called “third parties”). The “third parties” include e.g. Investor relations and public relations companies, brokers or investors. JS Research UG (limited liability) or its employees can partly be rewarded directly or indirectly for the preparation, electronic distribution and other services by the discussed companies or so-called “third parties” with an expense allowance. Even if we prepare each report to the best of our knowledge, we advise you to use other external sources with regard to your investment decisions, such as Consult your house bank or a trusted advisor. For this reason, liability for financial losses that may result from using the information discussed here for your own investment decisions is categorically excluded. Particularly in the case of raw material and exploration stocks and low capitalized stocks, the depot proportions of individual shares should only be so much that even in the event of a total loss, the total depot can only lose marginal value. In particular, stocks with a low market capitalization (so-called “small caps”) and especially exploration stocks, as well as all listed securities in general, are sometimes subject to considerable fluctuations. The liquidity in the securities can be correspondingly low. When investing in the raw materials sector (exploration companies, raw material producers, companies developing raw material projects), additional risks must be taken into account. Below are some examples of specific risks in the raw materials sector: Country risks, currency fluctuations, natural disasters and storms (e.g. floods, storms), changes in the legal situation (e.g. export and import bans, punitive tariffs, prohibition of raw material extraction or raw material exploration, nationalization of projects), environmental requirements (e.g. higher costs for environmental protection, designation of new environmental protection areas, prohibition of various mining methods), fluctuations in raw material prices and considerable exploration risks.

Disclaimer: All information published in the report is based on careful research. The information does not represent an offer to sell the shares discussed, nor an invitation to buy or sell securities. This report only reflects the personal opinion of Jörg Schulte and is in no way to be equated with a financial analysis. Before making any investments, professional advice from your bank is essential. The statements are based on sources that the publisher and his staff consider to be trustworthy. Nevertheless, no liability can be assumed for the correctness of the content. No guarantee is given for the accuracy of the charts and data on the commodity, currency and stock markets shown. The source language (usually English) in which the original text is published is the official, authorized and legally valid version. This translation is included for better understanding. The German version can be shortened or summarized. No responsibility or liability is assumed for the content, correctness, appropriateness or accuracy of this translation. From the perspective of the translator, the message does not constitute a buy or sell recommendation! Read here – -. Please also note the original English message, if available.

Note: PERSONAL-FINANCIAL.COM publishes analyzes, columns and news from various sources in this section. PERSONAL-FINANCIAL.COM AG is not responsible for content that has been recognized by third parties in the “News” area of ​​this website and does not adopt it as its own. This content can be identified in particular by a corresponding “from” mark below the article heading and / or by the link “To read the full article, please click here.”; The named third party is solely responsible for this content.

Related Articles

Back to top button