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« Silver Wheaton Corporation: Acquire! | Main | Silver and its 200-day moving average! »
Wednesday
Jul092008

Endeavour Silver Production to Double and Triple!

Endeavour logo 11oct07

Endeavour Silver Corporation have just announced that silver production will double to 98,285 oz in Q2, 2008 and is on schedule to triple to approximately 140,000 oz in Q3, 2008, compared to the 46,419 oz silver produced in Q1, 2008.

This is great news and reflects the efforts the company has made by implementing a Capital Expenditure Programme to revamp their two mines in Mexico, the Guanacevi Mines in Durango State and the Guanajuato Mines in Guanajuato State.


Silver production in Q3 and Q4, 2008 is expected to climb substantially as the current capital programs of mine and plant upgrades near completion at Endeavour's two operating silver mines in Mexico, the Guanacevi Mines in Durango State and the Guanajuato Mines in Guanajuato State. Having made a strategic decision to close some of their producing mine shafts in order to carry out a major rehabilitation programme bringing the mines up to North American safety standards, they are all set to reap the benefits. The timing is almost perfect in our view as the results of the higher production figures will be hitting the wires at a time when we believe silver will be challenging and surpassing its old highs.

The cash cost of $24.38 per oz of silver reported for Q1, 2008 again reflects the investment costs that Endeavour has had to carry. However going forward these are expected to drop to the $12 per oz level in the near term and even further in Q3 and Q4, 2008 as silver production ramps up.

The Chairman and CEO, Bradford Cooke, stated that:

"It is gratifying to see our initiatives to reduce cash costs at both mine operations, and the hard work of our dedicated employees on the many capital projects, starting to pay off with positive results. Guanajuato is now taking a giant leap forward, as planned, in its mine output and silver production, and Guanacevi is also starting to step up its operating performance. The next two quarters should be quite rewarding for shareholders."

We draw your attention to rewarding shareholders – that’s us by the way. Endeavours shares closed up today at $3.18 having put on $0.11 for a gain of 3.58%.

The news flow from Endeavour has been good with no less than ten news releases since March 2008. As investors this is very important to us to know where the company is in terms of development, capital expenditure, construction schedule progress and production forecasts. As we see it the scene is now set for Endeavour to ‘outperform’ in this tiny but explosive market sector.

Have a good one.

Endeavour Silver Corporation trades as: EDR: TSX, EJD: DBFrankfurt, EXK: AMEX)

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Hugh Clark of Endeavour and Bob Kirtley of silver-prices.net

Hugh Clark of Endeavour Silver Corporation and Bob Kirtley of www.silver-prices.net at the Silver Summit in London.

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Reader Comments (3)

I enjoy your commentaries & updates. Very worthwhile service. Am wondering if you have any insights on Coeur d'Alene, (CDE).
Price has been falling out of bed lately and yet no real negative news that I can find.

Thanks.

July 10, 2008 | Unregistered CommenterLes Trelenberg

Question: Would not the increase in production lower the price of silver (already expected), and therefore lower share prices?!?

July 10, 2008 | Unregistered CommenterXord

Les,

We were in CDE some years ago as it had promise, but somehow did not deliver, in our very humble opinion there is better value elsewhere.

Xlord,

Yes, any additional product coming to the market will have an adverse effect on the price by adding more supply. However there isn’t a day that goes by without a new use being found for silver and so the industrial demand increases. Silver is also money in the same way that gold is and will be sought after as a safe store of wealth.

July 10, 2008 | Unregistered CommenterSilver Prices

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