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« Silver and the 200-Day Moving Average. | Main | Portfolio Update: 08 April 2008 »

Endeavour: Operating Results for 2007!

Endeavour logo 11oct07

Endeavour Silver Corporation operating results for 2007 show that Revenues were Up 106%, Production Up 58%, Reserves Up 50%. The highlights are as follows:

Increased annual sales by 106% to $32.3 million.

Increased silver production by 58% to 2.1 million oz.

Increased proven and probable reserves by 50% to 14.9 million oz.

Increased silver equivalent reserves and resources by 11% to 50.0 million oz.

Acquired remaining 49% of Guanacevi Mines project in Durango for $6.8 million in shares.

Acquired 100% of Guanajuato Mines project in Guanajuato for $7.7 million in cash, shares and warrants.

Discovered new polymetallic mineralized zone in Cometa vein at Parral project in Chihuahua

Common shares listed for trading on American Stock Exchange (symbol EXK)

Chairman and CEO, Bradford Cooke, commented as follows:

"Endeavour enjoyed its best year yet in 2007, setting records for the fourth consecutive year in annual sales, silver production and mine reserves. The Company's consistent growth year on year can be attributed in part to our business strategy of acquiring prospective silver properties within mature mining districts that have existing mine and plant infrastructure so that new discoveries can be fast-tracked to production."

"Last year, our aggressive production growth pushed cash costs higher so management turned its focus in the fourth quarter to strengthening our operating team and improving our operating performance. As a result, we are already starting to see cash costs decline at Guanacevi and a similar trend is anticipated at Guanajuato this year. Shareholders can look forward to another banner year of growth for Endeavour in 2008, fuelled by new mineral discoveries, expanded mine output and upgraded plant facilities."

Cash costs have been high for all of the mining industry with fuel, labour and equipment all costing more as the rival in precious metals continues to gather pace. For Endeavour these issues had to be addressed along with clean up and environmental issues. However, buried deep in this report they do say that:

“Management addressed many of these issues in Q4, 2007 and as a result, we are now starting to see improvements in productivity and dilution, as shown by the reduction of cash costs at Guanacevi in Q4 compared to Q3, 2007, down 28% to $7.45 per oz.”

It’s a case of having to spend money in order to put things right with the view to maximising profits at a later date. Endeavour has invested $15.2 million on capital projects in 2007, including $9.6 million on plant and equipment and $2.1 million for underground mine development.

Looking a little further down the line Endeavour expects to deliver its fifth consecutive year of growth by expanding silver production 22% to 2.6 million oz or higher, where cash costs are forecast to average $8 per oz or lower in 2008. So, if silver can hold above $15/oz then Endeavour should do very well. If as we expect, within the year, silver is trading at $25/oz plus then the stock price will move up accordingly with today’s price levels never to be seen again.

If you wish to read the article in full then please click this link, its well worth the effort.

If you are not into the silver market yet, please feel free to enrol for our free sparkling silver-prices newsletter for more adventures in the world of precious metals investments.

Endeavour pouring silver

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