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« The Accumulator Trade 2 Update 24 March 2011 | Main | First Majestic Silver Corp Up 41% since recommendation on the 09 Feb 2011 »
Tuesday
Mar222011

Endeavour Silver Corp looking for an operating profit of $24/oz

EXK Logo 16 Mar 2011.JPG

Hot off the press we have this news release from Endeavour Silver Corporations (EXK) outlining their sixth consecutive year of growing silver and gold production, so we kick off with this comment from Bradford Cooke, Chairman and CEO:

"In 2011, management is forecasting Endeavour's seventh consecutive year of organic silver production growth by expanding the Guanajuato plant from 600 up to 1000 tonnes per day. Cash costs are expected to continue declining into the mid-$5 per oz range and if we assume a US$30 average silver price in 2010, our mine operating profit margin will be around $24 per oz -- remarkable by any standards."

Guidance for 2011

Silver production forecast of 3.7 million oz
Gold production forecast of 19,000 oz
Silver and equivalents production forecast of 4.7 million oz 
Cash cost forecast of less than $5.70 per oz of silver produced, net of by-product gold credits
Capital cost forecast of $36.7 million and exploration budget of $9.2 million
Revenue forecast of $113.9 million assuming $24 silver and $1,320 gold
Highlights of Fiscal Year 2010 (Compared to Fiscal Year 2009)
Net Earnings improved to $7.1 million ($0.11 per share) from a loss of $1.9 million
Operating cash-flow jumped 167% to $32.7 million
Revenues increased 70% to $86.5 million
Realized silver price rose 27% to $19.62 per oz sold
Cash operating costs fell 5% to $5.71 per oz silver produced, net of by-product gold credits
Year-end working capital of $102 million, with cash and short-term investments of $88 million 
Silver production increased 26% to 3.3 million oz
Gold production rose 33% to 17,713 oz
Silver and equivalents production escalated 20% to 4.2 million oz (at a 50:1 silver:gold ratio) 
Silver proven and probable reserves decreased 19% to 13.4 million oz
Silver indicated resources up 16% to 27.4 million oz
Silver inferred resource up 62% to 29.7 million oz

Highlights of Fourth Quarter 2010 (Compared to Fourth Quarter 2009)

Net Earnings increased 81% to $5.6 million ($0.09 per share)
Operating cash-flow jumped 107% to $21.5 million
Revenues climbed 18% to $28.5 million
Realized silver price averaged $24.16 per oz sold
Cash operating costs fell 5% to $4.72 per oz silver produced, net of by-product gold credits 
Silver production increased 15% to 895,931 oz
Gold production rose 6% to 4,871 oz
Silver and equivalents production escalated 13% to 1.14 million oz

Highlights of Fourth Quarter 2010 (Compared to Fourth Quarter 2009)

Net Earnings increased 81% to $5.6 million ($0.09 per share)
Operating cash-flow jumped 107% to $21.5 million
Revenues climbed 18% to $28.5 million
Realized silver price averaged $24.16 per oz sold
Cash operating costs fell 5% to $4.72 per oz silver produced, net of by-product gold credits 
Silver production increased 15% to 895,931 oz
Gold production rose 6% to 4,871 oz
Silver and equivalents production escalated 13% to 1.14 million oz

Endeavour Silver Corporation has a market capitalization of $767.83 million, a 52 week price range from $3.07 - $10.33 and is 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 and no doubt is a candidate for acquisition for the bigger players in the silver space seeking to boost their own dwindling reserves.

Endeavour Silver Corporation is traded in Canada, USA and Europe on the following three stock exchanges:

(TSX: EDR)
(NYSE-AMEX: EXK)
(DB-Frankfurt: EJD)

So they are appearing on a screen near you.


Many thanks to those of you who have recently signed up for our options trading service, its very much appreciated, a gentle reminder for those of you who are still thinking about it, the new pricing structure will apply as of 2nd April 2011.

Our model portfolio is up 138.05% since inception, Average return of 41.27% per trade, 67 closed trades, 65 closed at a profit or a 97% success rate. Average trade open for 43.21 days.


SK model portfolio 14 March 2011.JPG



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Stay on your toes and have a good one.

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Reader Comments (4)

I put another short on gold today. Looks like another top. Stop at 1438. By end month it should be at 1320-1340.

March 23, 2011 | Unregistered CommenterDi

Di, don't hold your breath on that one, your shorts will expire worthless. But don't kill the messenger. Screw the shorting of silver, instead add to your physical position. Then either "dollar-cost-average" newer purchases, or not. It doesn't matter too much on smaller physical purchases., 1-2 YEARS IT WON'T MATTER when spot price is $45/oz...
I can't fathom shorting of silver in the face of incredible price strength month's running. Me, I continue to accumaulate physical metal in the face of the strength of the physical market..maybe only 10-15 silver ounces a month, mostly "reptile bullion' items...it's all about accumulating ounces. But shorting silver spot, I just don't see the risk/reward anything near to being a positive move...
Snakeman

March 23, 2011 | Unregistered Commentersnakeman

They say when all you have is a hammer, the whole world looks like a nail.

I guess when all you know how to do is short, every price surge looks like a top.

I WISH we'd see 1320-1340 again. Losing hope.

March 23, 2011 | Unregistered Commenterfallingman

Snakeman, no I won't. I am timing a decade top here. And I guess it is right now, on silver specially, because on gold it has happened already.
I promised gold in three hundreds range, I will deliver, i know. This is not the time precious metals are going to 10 thousands and more. This is just a "horny show", if I can call it that way. All the bulls will be killed.
I am holding on my silver shorts. Expecting the fall any time.

March 23, 2011 | Unregistered CommenterDi

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