ENDEAVOUR SILVER $7.86 (Toronto symbol EDR: TSINetwork Rating: Speculative) (1-877-685-9775; www.edrsilver.com; Shares outstanding: 99.5 million; Market cap: $782.1 million; No dividends paid) operates the Guanacevi and Bolanitos silver/gold mines in Mexico, as well as the recently acquired El Cubo project.
In the three months ended December 31, 2012, Endeavour’s revenue jumped 281% from a year earlier, to $66.7 million (all amounts except share prices in U.S. dollars). The company hasn’t yet released its earnings or cash flow for the latest quarter.
The revenue gain was partly due to higher production and an increase in silver and gold prices. The company also held back on selling silver and gold a year ago in response to lower prices at that time.
In the latest quarter, Endeavour’s gold production jumped 83%, to 12,917 ounces. Silver output increased 10%, to 1.2 million ounces. Gold prices rose 4%, while silver prices gained 21%.
The company has finished expanding the Guanacevi and Bolanitos mines. It’s now upgrading the El Cubo project, which it acquired in July 2012. That will push up its silver production by at least 2.2% this year, to 4.6 million ounces from 4.5 million ounces in 2012.
Endeavour’s outlook is positive, although to a large extent the shares will continue to rise and fall with the price of silver.
Endeavour is a buy for aggressive investors.
