Endeavour Silver Corp (EXK, Financial) announced its first-quarter revenue of $63.5 million, which fell short of the market anticipation of $85.94 million. During this period, the company produced 1,205,793 ounces of silver and 8,338 ounces of gold, amounting to 1.9 million ounces in silver equivalent.
The CEO, Dan Dickson, expressed satisfaction with the robust quarter, highlighting that production met the company's projections. The financial performance benefited from elevated market prices, showcasing the portfolio's strength. Furthermore, Endeavour Silver has maintained strong mine operating cash flow through stringent cost management and a dedication to operational excellence.
Looking forward, the company is optimistic about sustainable growth, supported by its solid liquidity position, the integration of the Kolpa project, and the upcoming launch of the Terronera project. These factors contribute to its strategy of delivering enduring value to shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Endeavour Silver Corp (EXK, Financial) is $5.82 with a high estimate of $7.25 and a low estimate of $5.00. The average target implies an upside of 73.68% from the current price of $3.35. More detailed estimate data can be found on the Endeavour Silver Corp (EXK) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Endeavour Silver Corp's (EXK, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Endeavour Silver Corp (EXK, Financial) in one year is $6.17, suggesting a upside of 84.18% from the current price of $3.35. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Endeavour Silver Corp (EXK) Summary page.
EXK Key Business Developments
Release Date: March 11, 2025
- Total Revenue: $218 million, up 6% compared to 2023.
- Cost of Sales: $176 million, increased approximately 4% from the previous year.
- Mine Operating Earnings: $42 million.
- Mine Operating Cash Flow: $72 million.
- Adjusted Net Earnings: $8 million or $0.03 per share.
- Consolidated Cash Cost per Ounce: Decreased by 4% to $12.99.
- All-in Sustaining Costs: Increased by 4% to $23.88 per ounce.
- Cash Position: $106 million as of December 31, 2024.
- Working Capital: $79 million as of December 31, 2024.
- Silver Equivalent Production: 7.6 million ounces, at the higher end of guidance.
- Terronera Project Construction: 89% complete with $302 million spent out of a $332 million budget.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Endeavour Silver Corp (EXK, Financial) achieved the higher end of its revised production guidance, producing 7.6 million ounces of silver equivalent in 2024.
- The company reported a 6% increase in total revenue, reaching $218 million compared to 2023.
- Endeavour Silver Corp (EXK) has a strong cash position of $106 million and working capital of $79 million as of December 31, 2024.
- The company is well-positioned to benefit from rising silver prices driven by industrial demand and supply constraints.
- Construction at the Terronera project is 89% complete, with commercial production expected in Q3 2025, marking a significant growth milestone.
Negative Points
- A trunnion failure at the Guanacevi mine led to reduced throughput from August to December 2024, impacting production.
- Cost of sales increased by approximately 4% due to lower economies of scale, fixed costs during the Guanacevi issue, and inflationary pressures.
- All-in sustaining costs rose by 4% to $23.88 per ounce, partially due to lower silver production.
- The company faces significant royalty costs at the El Curso concessions, with a sliding scale royalty reaching 16% at current silver prices.
- Endeavour Silver Corp (EXK) is exposed to currency fluctuations, with about 50-60% of costs tied to the Mexican peso, which could impact cost management.
