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« Crisis Investing: Tactics for Today | Main | Federal Reserve to Buy Treasuries fires Gold Prices! »
Tuesday
Mar242009

Endeavour Silver Corporation: Update

Endeavour Chart 25 mar 09

Chart courtesy of Stockcharts.com


As we can see from the above chart this month has been extraordinary for Endeavour Silver Corporation (EXK: AMEX) as it rocketed to higher ground in response to the rise in silver prices with a magnificent performance over the last two weeks.

Its comforting to see a silver producer making such good gains during this period of financial turmoil. Stronger silver prices have helped of course, however Endeavour are making all the right moves.


The Equivalent Reserves/Resources have increased 24% over the last year as mentioned in their recent news release, a few snippets are listed below:

Highlights of the new estimates include sharp increases in both indicated and inferred silver resources at all three properties as a result of the successful exploration drilling programs conducted in 2008. Total silver-equivalent reserves and resources rose 24% compared to one year ago, after consideration for replacing the reserves depleted by mining in 2008 (assuming a 75:1 silver:gold ratio for the silver equivalents based on gold/silver prices in December 2008, not including any base metals as equivalents).

Proven and probable reserves now total 7.8 million ounces (oz) silver (9.6 million oz silver-equivalents), indicated resources increased to 19.5 million oz silver (26.1 million oz silver-equivalents) and inferred resources climbed to 19.5 million oz silver (26.6 million oz silver-equivalents) as shown in the table below.

Godfrey Walton, President and COO, commented, "Last year, we put additional focus on exploration and successfully met our goal of substantially increasing the indicated and inferred silver resources at both Guanacevi and Guanajuato. We also made several new discoveries in both the San Pedro area of Guanacevi and the Bolanitos area of Guanajuato. This year, we have turned our attention back to boosting the reserves and production at our two operating silver mines in Mexico as part of our plan to grow the production at both operations by almost double over the next two to three years."



The plan to almost double production over the next two to three years from their two operating mines sounds ambitious but they usually achieve their objectives so we are looking forward to a good news stream in the coming months.

For disclosure purposes Endeavour does form part of our core investment holdings in our silver portfolio. If you don't own any of this stock then please put it on your watch list, we think that you will be pleasantly surprised by its future performance.

Also look out for the Year End and Fourth Quarter Financial Results to be Released on 1st April 2009, no joke!


Endeavour Silver Corporation has a Market Capitalisation of $87.87 million with 49.04 million shares outstanding, a 52 week high of $3.85 and 52 week low of $0.71, closed today at $1.79 and trades as:

EDR: TSX,
EJD: DB Frankfurt,
EXK: AMEX,

which gives this stock plenty of exposure.

Have a good one.



Got a comment – then let us have it!

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Reader Comments (4)

Does Endeavour Silver Corporation sell forward?

Thank you,
Peter B.

March 25, 2009 | Unregistered CommenterPeter Barker

Correction: the shares issued as at March 15th totals 51.5 million.

March 25, 2009 | Unregistered CommenterSilver Prices

Peter B,

As far as we know Endeavour do not hedge their production, however to make sure we put your question to Hugh Clarke, a VP with Endeavour and he replied as follows:

"No, we don’t engage in forward sales."

So there you have it.

March 25, 2009 | Unregistered CommenterSilver Prices

To clarify with some info about the recent stock move: Endeavour was recommended as a new "buy" by one of the large newsletter writers. It's upward swing is in response to the buying of the long-term followers of the newsletter, as the day the recommendation came out, the stock took a large upward leap. Once the buying fervour dies down, it should drop back below $1.90. Not that there is anything wrong with the company, obviously it's a good one, or it wouldn't have been recommended.
Thanks

March 26, 2009 | Unregistered CommenterBob G.

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