Silver Producer Focused on Growth - Mexico

Three producing silver mines/mills in Mexico, the Guanacevi Mine in Durango State and the Bolanitos and El Cubo in Guanajuato. Production forcast for 2013: 8M Oz Eq @ 8-9$/Oz

Endeavour Silver Corp. Profile

Endeavour Silver Corp. (EDR:TSX, EJD:DBFrankfurt, EXK:AMEX) is a Canadian based silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Expansion programs are now underway at the high grade Guanacevi Mines Project in the state of Durango and the Guanajuato Project in the state of Guanajuato. In addition, Endeavour is actively exploring projects in Chihuahua and Michoacan states. The Company's acquisition and expansion programs now underway should enable Endeavour Silver to join the ranks of the top primary silver producers worldwide.

One of North America’s fastest growing silver mining companies

Core Assets:

  • Guanacevi Silver Mine in Durango State, Mexico
  • Guanajuato Silver Mine in Guanajuato\State, Mexico

Financials: At A Glance

  • Working Capital: (Sep 30/08) US$10.9 Million
  • Cash: (Sep 30/08) US$5.6 Million
  • Debt: Nil
  • 2008 Reserves/Resources: 42 Million Oz Ag
  • 2008 Production Forecast: 2.3 Million Oz Ag
  • Book Value: (Sep 30/08) US$1.21 Per Share
  • Market Cap Per Oz Produced: US$25 Per Oz Silver

2008 Third Quarter: Accomplishments

  • Production up 9% to 627,000 oz
  • Cash Costs: Targeting Below $7 Per Oz
  • Revenues up 38% to $10.6 million
  • Mine Operating Earnings up $1.2 million
  • Cash Costs down 11% to $9.52 per oz
  • Expanded leach circuit capacity at Guanacevi to 1200 tpd
  • Ramped up mine output from 100 tpd to 400 tpd at Guanajuato
  • Extended new “3785”, “Lucero”, “Bolanitos” discoveries at Cebada, Guanajuato
  • Discovered new high grade veins at San Pedro, Guanacevi

Growth Plans - Endeavour is investing US$30+ million over 3 years at Guanacevi and Guanajuato to expand resources to 60 million oz silver and production to 4.5 million oz silver per year, just to fill the existing capacity of the plants. The Company plans additional growth by acquiring and exploring additional properties such as the Parral and Arroyo Seco projects and further silver mine acquisitions in Mexico.

Investment Potential - The top four primary silver mining companies each produce between 6.8 and 14.8 million oz silver per year, have market capitalizations of US$0.8 billion to US$2 billion and are valued at around US$65 to US$200 per oz of annual silver production, or 10 to 30 times forward cashflow multiples. If Endeavour grows to 5 million oz per year by 2008 and captures similar market valuations, the investment potential should be a multiple of the current market cap.

Last changed at 12-Jul-2014 01:28PM by mike97