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« Hecla Mining Company: MACD Makes a Crossover | Main | Silver Standard Resources Incorporated: Take a Breather! »
Monday
Jan262009

Endeavour Silver Corporation: Hitting Targets!

EXK Chart 27 Jan 09

Chart courtesy of StockCharts.com

We will start with a quick look at the chart where we can see that EXK has gained 17.4% in a single day on volume of over 1.0 million shares traded. We can also see that the stock price has been steadily rising over the last three months. The technical indicators are now on the high side, but we are not too worried about this as we expect EXK to make considerable progress this year.

Mining is an extraordinarily difficult business to run and as we have seen a number of precious metals producers have failed to meet their production figures for a variety of reasons. It would appear to us that the key to this is to slightly underestimate your future productive output and then achieve it rather than commit figures to paper only to miss them. Endeavour Silver hit its target when just recently it announced its fourth year of record silver production in 2008. This raises our comfort level with Endeavour as they have hit or bettered targets for four years on the bounce so what they now predict for the future carries some weight. And the future looks very bright when the company says the following:

Endeavour's two operating silver mines should be able to more than double their silver production over the next two and a half years in order to fill the two process plants to their operating capacities.

If we then throw in one or two good acquisitions then the excitement builds.

Silver production in Q4, 2008 from the Company's two operating silver mines in Mexico, Guanacevi and Guanajuato, was a record 691,347 oz silver, up 10% over the Third Quarter, 2008 and up 8% over Q4, 2007. And this was when production had been slowed as the price of silver was at a low point!

For disclosure purposes Endeavour forms a large part of our core holdings and we intend to hold on to them. Back in September 2008 we posted an article about Endeavour being at ‘stink bid’ price levels but considered our holding to be large enough at the time not to make purchases, but it sure looks like a bargain now. If you bagged a few, then please write and let us know as news of any good trade always gives the team here a boost.

Endeavour Silver Corporation has a Market Capitalisation of $76.01 million with 49.04 million shares outstanding, a 52 week high of $4.60 and 52 week low of $0.71, closed yesterday at $1.55 and trades as: EDR: TSX, EJD: DBFrankfurt, EXK: AMEX.

Have a sparkling week.

Stay tuned for updates in this fast moving market…

If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stocks, silver stocks and uranium stocks, just click on the links.



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Reader Comments (2)

This is some good news in the short term.
A nice up tick! I am impressed with management's handling of production levels given the current economic outlook.
As a trader of EDR-T, I unfortunately got caught wading in at $3/share, but ever the optimist, look forward to further gains in the stock price - sometime this year.
As recently as a few weeks ago, there was a guest portfolio manager receommending Endeavour Silver as a buy on Canada's BNN (Business News Network)...how many small cap mining companies have you heard of lately being recommended as a buy??

January 27, 2009 | Unregistered CommenterMark

Mark, Thanks for this - we expect EDR to make excellent progress once silver starts to shine.

January 29, 2009 | Unregistered CommenterSilver Prices

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