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« iShares Silver Trust (SLV) Growing at a Blistering Pace | Main | Silver Wheaton Corporation: Stirred But Not Shaken »

Endeavour Silver Corporation Up 16.75% Today

EXK Chart 11 Nov 2010.JPG

We kick off with a quick look at the above chart and what a super chart it is. A rapid climb by Endeavour Silver Corporation (EXK) has seen the stock price double since September on steadily increasing volume, the ability to deliver as planned and expansion through the acquisition process. The indicators are on the high side, however, they could stay there for some time in this environment where the silver bull is in an aggressive mood.

Also hot off the press we have their latest results which follow below:

Third Quarter 2010 Highlights (Compared to Q3, 2009)

Net Earnings climbed from $1.5 million loss to $0.1 million gain
EBITDA rose 826% to $6.5 million

Mine operating cash-flow escalated 181% to $10.9 million

Sales revenues increased 105% to $20.1 million

Cash costs increased 14% to $5.93 per oz silver produced (net of gold credits)

Silver production climbed 20% to 797,054 ounces (oz)

Gold production jumped 28% to 4,607 oz

Silver equivalent production rose 22% to 1,096,509 oz (65:1 silver: gold ratio, no base metals)

Plant expansion to 1,000 tonnes per day at Guanacevi now substantially complete

Acquired three new properties and identified three new silver-gold veins at Guanacevi

Discovered two new silver-gold veins at Guanajuato

Commenced new Lucero South access ramp to accelerate development and production of Lucero vein

Became debt-free with conversion of $10.1 million debentures into 5.3 million units

Launched all-cash bid to acquire Cream Minerals (since amended)

Bradford Cooke, Chairman and CEO, said that the performance in Q3, 2010 can be attributed to our growing silver-gold production, improving cash costs and higher metal prices. Once again, our operating team did an excellent job, as Endeavour remains ahead of schedule on our 2010 production targets and our capital expansion projects for 2010 are now substantially complete."

Note those three words: 'ahead of schedule' and this is not for the first time, they have delivered on their stated plans consistantly.

Endeavour has amended its offer to acquire Cream Minerals with the support and recommendation of the Cream Board. If successful, the bid to acquire control of Cream will become an integral part of EXK's acquisition growth strategy. Management will remain focused on both organic growth and acquisition opportunities in the Fourth Quarter.

Its also good to see that their Cash operating costs are trending downward toward the $5.00-$5.50 per oz range, which in turn will add to the profit margin.

The company has a good cash position at the moment with working capital standing at $42.4 million, up from $38.8 million at the end of 2009.

To read their results in full please go to there site via this link.

Endeavour Silver Corporation is set up well to benefit from the silver bull market which has in our very humble opinion a long way to run, so keep an eye on them as this company offers good exposure to silver prices.

Endeavour Silver Corporation is appearing on a screen near you as the company trades on three stock exchanges as follows:

(DB-Frankfurt: EJD)

On the skoptionstrading front some of our 'stops' were triggered yesterday sending us back into cash with some good profits, we will update the chart on the skoptionstrading site this weekend.

SK Chart 23 Oct 2010.JPG

The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today?

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

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Table of silver cos 11 Nov 2010.JPG

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Reader Comments (4)

When I saw the headline was about EXK, I figured this would be about the bought deal financing they announced yesterday...some $50 mill of new stock out there....that knocked the stuffing out of the stock price.

As I said to their PR flak, thanks for nuthin'. As John Doody says, they can't resist the "crack cocaine" of the bought deal. No muss. No fuss. No real work involved. The brokers reap the spoils and we're diluted. And there go all the nice gains referenced here. And I would expect the market to be weak for a while now.

Wouldn't it have been nice had they offered those shares directly to existing shareholders? I would have gladly increased my stake. How about you guys?

Or with a gem of an operation like this, why wouldn't you borrow money at the super low rates that currently prevail tp prevent dilution? This is one case where leveregae seems appropriate. I'm no project financier, but I can't believe EXK can't find willing lenders. The collateral is in the ground and its value is rising fast!


It seems to me that shareholders get treated like dirt. But maybe I'm being too harsh and am missing something as I watch from afar.

November 12, 2010 | Unregistered Commenterfallingman

As I said earlier maybe EXK has more upside than SLW

November 12, 2010 | Unregistered Commentersilver bug


We put this out before we knew about the bought finance deal, sorry about that.

November 12, 2010 | Unregistered CommenterSilver Prices

No problemo. It blindsided everybody.

November 12, 2010 | Unregistered Commenterfallingman

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