Endeavour Silver Corp. (EXK, Financial) soared nearly 4% to $2.69Â on the heels of results on first- quarter production.
The announcement was made on Tuesday on its website. The miner provided shareholders with an update of the project it is advancing at El Compas mine in Mexico.
In the first three months of 2018, Endeavour produced 1,350,840 ounces of silver, an increase of 25.4% year over year and 13,208 ounces of gold, an increase of 13% compared to the prior-year quarter.
According to a silver-to-gold ratio of 75:1, the volume of equivalent silver totaled 2.3 million ounces during the quarter. Thanks to higher silver grades of ore processed at Bolañitos and El Cubo, Endeavour beat the first quarter of 2017 equivalent production of silver by 23%. El Cubo and Guanacevi, which are performing well in terms of gold production, were also of help.
Endeavour Silver is still recovering from some issues its miners faced at Guanacevi in 2017. However, the resulting decreased silver output didn’t affect the consolidated production of the company.
While at Bolañitos, the production of the yellow metal was affected by fluctuations in gold grades, the development of the El Compas is on track for commercial production, which is expected to be reached before the end of July.
The stock in Endeavour Silver is still trading below the 200-SMA line.
The stock has a market capitalization of $342.94 million and its price per share of $2.69 is still below the midst of a $1.94 to $3.53 52-week range.
The recommendation rating is 2.4 out of a total of 5. The average target price is $4.47 per share. That is a mean value of four $2.51 to $6.00 ranging estimates on the price target and represents a 66% increase from the current share price.
For 2018, investors should keep an eye on Endeavour Silver’s quarterly production profile, which is expected to improve further.
Other indicators on Endeavour Silver:
- The price-book ratio is 2.34 times versus an industry median of 2.06.
- The EV-to-Ebitda is 12.23 times versus an industry average of 9.90.
- The Ebitda margin is 16.6% versus an industry median of 25%.
(Disclosure: I have no positions in Endeavour Silver Corp.)
