Pink Sheet Mining Stock: Silver Falcon soars on Incredible Gold News
  • Penny Stock on Watch: North Springs Resources Corp. (NSRS)
  • Stock Alert for Searchlight Minerals Corp. (SRCH)
  • " />

    Stock Alert for Endeavour Silver Corp. (EXK)

    Endeavour Silver Corp. (EXK) is a mid-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. It owns and operates two high-grade, underground, silver-gold mines: the Guanacevi Mines in Durango State and the Guanajuato Mines in Guanajuato State.  Since its start-up in 2004, EXK has posted six consecutive years of growing silver production, reserves and resources.

    Share Statistics (22-Aug-11) FY2009 FY2010 % Chg Q12010 Q12011 % Chg
    Symbol EXK Revenue, $Mn 50.77 86.51 70.4% 18.25 35.35 93.7%
    Current price $11.39 Gross marg. 16.2% 34.0% 109.9% 32.3% 58.2% 80.2%
    52wk Range: $3.10-$12.75 Oper. margin 18.0% 48.6%
    Avg Vol (3m): 2,939,110 Net margin 57.2% 24.0% -58.0% 36.8% 1.4% -96.2%
    Market Cap. 968.34M
    Shares Outstanding 85.02M EPS, $ -0.55 -0.32 -41.8% 0.04 0.01 -75.0%

    Source:, SEC Filings.

    Investment Highlights

    Shares of EXK have gained 4.50% in the last five days; 4.30% in the last month; and 246.20% year-to-date.

    Shares of the small-cap silver miner jumped 9.84% Monday to close the session at $11.39.  More than 4.80 million shares traded hands during the session, versus the 10-day average of 3.39 million.  The stock has a 52-week range of $3.10 – $12.75.

    The Company earlier this month announced its earnings for the second quarter of 2011, posting a 657% to $10.6 million jump in adjusted earnings.  EXK attributed the sharp increase to rising silver-gold production and precious metal prices.

    Revenues increased 85% to $36.4 million during the quarter, thanks to sharply higher silver-gold production and precious metal prices. The Company sold 804,881 silver oz and 3,980 gold oz at average realized prices of $37.65 per oz and $1,523 per oz, respectively. Costs of Sales were up 27% to $17.1 million, primarily due to higher output and cost factors.

    Net earnings were $17.0 million, or $0.20 per share, for the period after deducting an Income Tax Expense of $5.8 million. Net earnings includes a mark to market derivative liability gain related to share purchase warrants issued in 2009 denominated in Canadian dollars, while the Company’s functional currency is the U.S. dollar. Under IFRS, these warrants are classified and accounted for as financial liability at fair market value with adjustments recognized through net earnings. The depreciation of these warrants resulted in a derivative liability gain of $6.3 million compared to a $1.8 million loss in 2010.

    Adjusted earnings are 10.6 million, or $0.12 per share, compared to a $1.4 million loss in 2010, or negative $(0.05) per share, excluding the derivative liability adjustments related to the warrants.

    EXK’s consolidated silver production rose 3% to 850,476 oz and gold production climbed 8% to 4,831 oz in the second quarter, attributable to higher plant throughput at both Guanacevi and Guanajuato, partially offset by slightly lower silver grades and recoveries and enhanced by slightly higher gold grades and recoveries. As a result, consolidated silver and equivalent production rose 4% to 1.04 million oz (40:1 silver: gold ratio, no base metals) compared to the second quarter of last year.

    Looking forward, the Company expects its financial performance will continue to improve, reflecting still rising silver and gold prices, a modest increase in precious metal production once the new expanded mill and flotation circuits at the Guanajuato plant are commissioned during the quarter, and falling cash costs related to the new economies of scale at Guanajuato. However, industry-wide cost pressures such as rising labour, power, fuel and consumables costs will likely continue to partially offset the Company’s progress towards cost reductions at its two mining operations.


    Financial Strength (22-Aug-2011)




    S&P 500

    Quick Ratio (MRQ) 8.73 1.70 0.77 0.75
    Current Ratio (MRQ) 9.90 3.02 1.13 1.10
    LT Debt to Equity (MRQ) 0.00 23.66 13.32 111.90
    Total Debt to Equity (MRQ) 0.00 25.91 30.61 151.41
    Interest Coverage (TTM) 10.98 0.18 23.17

    Source:, SEC Filings.

    Analyst Consensus

    This is the consensus forecast among four polled investment analysts. Against the Endeavour Silver Corp company.

    Analyst Detail






    No Opinion

    Latest 1 0 1 1 1 0
    4 weeks ago 0 0 2 1 1 0
    2 months ago 0 0 2 1 1 0
    3 months ago 0 0 2 1 1 0
    Last year 1 0 3 0 0 0


    Consensus Estimates Analysis

    # of Estimates




    1 Year Ago

    SALES (in millions)
    Year Ending Dec-11 3 167.60 179.00 149.30 90.17
    Year Ending Dec-12 3 212.93 265.00 152.30 92.03
    EARNINGS (per share)
    Quarter Ending Sep-11 2 0.19 0.22 0.15
    Quarter Ending Dec-11 2 0.28 0.37 0.19
    Year Ending Dec-11 4 0.67 0.84 0.51 0.28
    Year Ending Dec-12 4 0.97 1.58 0.48 0.32

    Technical Analysis


    EXK is trading above its 20-day moving average. While this is normally considered to be a bullish sign, the moving average is downward sloping which means that investors have been liquidating shares during this time period and tempers the bullishness of the signal.

    EXK is within its Bollinger Bands. This is a normal condition suggesting that it is neither overbought nor oversold relative to the recent levels.

    The MACD for EXK currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0 which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Aug22-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Rio Tinto plc RIO 55.69 107.33B 6.16 5.42 1.64 1.51
    Grupo Mexico SA de CV GMBXF 3.09 24.04B n/a n/a n/a n/a
    BHP Billiton Ltd. BHP 77.76 216.29B 13.11 9.81 3.01 2.70
    Silver Median       27.38 n/a 8.19 n/a
    Endeavour Silver Corp. EXK 11.39 968.34M 18.08 12.66 n/a n/a

    Source: Thomson Financial

    DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority.  We are neither licensed nor qualified to provide investment advice.

    The information contained in our report should be viewed as commercial advertisement and is not intended to be investment advice.  The report is not provided to any particular individual with a view toward their individual circumstances. The information contained in our report is not an offer to buy or sell securities.  We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.

    Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company.  An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report.  Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

    Any individual who chooses to invest in any securities should do so with caution.  Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested.  Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

    Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934.  Subscribers are cautioned not to place undue reliance upon these forward looking statements.  These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated.  Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC.  You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

    We are committed to providing factual information on the companies that are profiled.  However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions.  We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so.  Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

    To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

    We encourage you to invest carefully and read investment information available at the websites of the SEC at and FINRA at

    Leave a Reply

    Your email address will not be published. Required fields are marked *