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« The Accumulator Trade 1 Update 24 January 2011 | Main | As Gold Falters, SK OptionTrader Banks Profits of 13%, 17% and 13% »

Endeavour Silver Corporation: Lucky 7

EXK Logo

Endeavour Silver Corporation (EXK) have announced that it is expecting its seventh consecutive year of production growth along with lower cash costs in 2011 which should put a smile on the stock holders faces. This small-cap silver mining company is focused on the growth of its silver production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has managed six consecutive years of aggressive silver production and resource growth and this is what they had to say about the year ahead:

Silver production is forecast to exceed 3.7 million ounces (oz) in 2011, with gold production in excess of 19,000 oz (4.7 million oz of silver equivalent production at the current silver:gold ratio of 50:1). Cash costs are expected to continue to decline from US$5.93 per oz range reported in Q3, 2010. Assuming US$24 silver and US$1320 gold, Endeavour anticipates its operating profit margin will exceed US$18 per oz in 2011.

Endeavour carried a healthy financial position through the 2010 year-end, with US$105 million in working capital of which US$87 million was cash or cash equivalents, up sharply from US$39 million in working capital and US$27 million in cash at the end of 2009.

As a result of recent exploration successes in the Guanajuato district, Endeavour's Board of Directors has approved plans for a major expansion of the Guanajuato plant in 2011, from the current 600 tonnes per day (tpd) up to 1000 tpd, at an estimated cost of US$4.3 million. This expenditure is part of the Company's US$33 million budget for capital investments in 2011, which should readily be covered by the Company's anticipated 2011 cash-flow.

Similar to recent years, the first two quarters of silver production in 2011 are scheduled to be relatively flat, as management focuses on the plant expansion, mine development, and other capital programs. However, silver production is expected to increase in Q3 and Q4 as the expanded Guanajuato plant comes online and new ore-bodies under development during the first half of the year enter into production.
So a little patience is requiered on the part of the investors but all bodes well for 2011.

Endeavour Silver Corporation has a market capitalization of around $400 million and well positioned 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 traded in Canada, USA and Europe on the following three stock exchanges:

(DB-Frankfurt: EJD)

So they are appearing on a screen near you.


Over in the options trading pit we have just closed 3 more winning trades, so we now have 62 winners out of 64 trades, or a 96.87% success rate.

If you have any questions regarding these trades please address them through their site where they will be handled quickly and I hope efficiently.

sk chart Jan 2011.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, before we decide to cap membership.

Stay on your toes and have a good one.

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