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Endeavour Silver Corporation Looking to 8 Consecutive Years of Growth

Endeavour Silver Corporation (EXK) have announced today that it is forecasting its eighth consecutive year of production growth for 2012. The Company owns and operates two high grade, underground, silver-gold mines in Mexico, the Guanacevi Mine in Durango State and the Guanajuato Mine in Guanajuato State.

Endeavour's silver production is forecast to rise 16% in 2012 to 4.3 million ounces (oz) and gold production is anticipated to increase 24% to 26,000 oz (5.6 million oz of silver equivalent production at the current silver:gold ratio of approximately 50:1) as shown in the table below.


Silver (M oz)

Gold (K oz)

Ore Tonnes per Day








increase from 1000 tpd to 1200 tpd




increase from 1000 tpd to 1600 tpd








increase from 2000 tpd to 2800 tpd

Cash costs of production are expected to remain in the US$5.50 to US$6.00 per oz range, but will continue to be subject to industry-wide rising cost pressures, partly offset by rising gold credits at both mines. Assuming US$30 silver and US$1500 gold, Endeavour anticipates its mine operating profit margin will exceed US$24 per oz in 2012. The chart below depicts the cash cost component being managed downwards over recent years. It also shows the divergence between the costs and the realized silver price, which is very impressive for 2011. Now can you imagine what this chart will look like should we get the boost in silver prices that many of our peers are predicting, simply awesome! 

Courtesy of virtual silver conference

As a result of recent exploration successes at Guanajuato and Guanacevi, Endeavour's Board of Directors has approved plans for a 60% ramp up of mine production at Guanajuato from the current 1000 tonnes per day (tpd) output to the 1600 tpd plant capacity, and a 20% mine and plant expansion at Guanacevi from the current 1000 tpd to 1200 tpd, both to be completed by the end of 2012. 

Capital investments include mine and plant infrastructure upgrades, new mine equipment and accelerated mine development. These expansion programs are both part of the Company's US$42.5 million capital budget for 2012, including US$21.3 million for Guanacevi and US$20.6 million for Guanajuato, which should readily be covered by the Company's anticipated 2012 cash-flow. 

Modest quarterly increases in silver and gold production are anticipated in the first half of 2012 as management focuses on mine development, plant optimization, and other capital programs. However, metal production is expected to accelerate in the second half of 2012 as the capital programs gain traction.

Bradford Cooke, Chairman and CEO, commented, "Endeavour is on track to deliver its eight consecutive year of production growth in 2012 thanks to our philosophy of continuous improvement. Every year we acquire prospective new exploration properties. Every year, we make new discoveries to boost our resources and reserves. This allows Endeavour to expand production and cash flow each year, which provides the fuel for our future growth. In addition to delivering annual organic growth, this winning formula also allows Endeavour to grow through strategic acquisitions as well. With over US$155 million in working capital and substantial silver and gold inventories, the Company is well positioned to execute its business plan in 2012." 

Endeavour Silver Corporation is a mid-cap silver mining company focused on the growth of its silver production, reserves and resources in Mexico. Since start-up in 2004, Endeavour has posted seven consecutive years of aggressive silver production and resource growth. The organic expansion programs now underway at Endeavour's two operating silver mines in Mexico combined with its strategic acquisition program should help Endeavour achieve its goal to become a premier, mid-tier silver mining company.

The companies market capitalization is $988.44 million with 93.1 million shares (fully diluted) outstanding. The 52 week trading range is $6.06 to $13.10 and the stock price closed at $11.32 on the NYSE yesterday.

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 silver screen near you.

For disclosure purposes Endeavour Silver Corporation is our second largest stock holding and we will look to increase our holdings going forward.

Regarding We are off to a good start closing two trades, the first gave us a profit of 71.58% and the second gave us a profit of 33.97%.

Its nice to bag a couple of winners before January came to a cloes and hopefully 2012 will continue in a successful manner. We do have a number of ideas on the drawing board which we are looking to execute shortly, but only when the risk/reward environment is firmly in our favour.

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Our performance stats have now been updated as follows:

Our model portfolio is up 446.55% since inception

An annualized return of 98.38%

Average return per trade of 36.68%

96 completed trades, 88 closed at a profit

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Average trade open for 50.48 days



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Reader Comments (4)

Dear Editors
I realize that Endeavour is an success story going from a junior to a full production emerging marketer.
But Why is it you guys are always plugging into this one and no others. There are other juniors that have alreading gone into production
and are no longer just hole drillers. One of them for example is Santa Gold-- sfeg. Now Im not trying to plug this as one of my own but
it seems to me you have alot capacity to write about other growth wonders that are now in the industry
is it your just biased and only like this company? Why not write about others?

February 5, 2012 | Unregistered CommenterDoug

Dear Sir/Madam,

If I subscribe to your paid service, I want to learn how I can make benefit from your service?

I mean will you mail commentaries as regular or as in the case of alerts so that I will read them and decide what to do my self (then I will buy or sell gold or its derivatives etc) in other words shall I make investments on gold (and its derivatives) through your directions? Or will you use my money to invest your account and I will get profit (or loss) ? How am I going to be able to share your profit? Please give me your way of work for your paid subscribers.

I am from Turkey, east of europe. I can buy or sell gold freely but I do not have enough time to do this as I am a full time employe. I prefer to make electronic trading through my computer. In adition to this gold is traded with domestic currency rate (Turkish Lira) in my country. Therefore its value might or might not move with the US$ value of the gold. I mean when price of gold decrease or increase in US$ its value increase or decrease inversely because of the effect of the $/TL parity. In this case for example if you advise to buy (or sell) gold, it might not be the case here, in my country. For example when the gold price was cheaper than todays value two moths ago, its TL value was %4 more expensive than todays value. That was due to a more valued US$ against other currencies.

I hope I could tell you what I wanted to learn from you so if you can make clear the above concepts I will or will not decide to subscribe to your service accordingly.


February 5, 2012 | Unregistered CommenterCuneyt


Thank you for your inquiry - the team will send you a reply shortly.

All the best,


February 5, 2012 | Registered CommenterSilver Prices


Yes you are correct we do write about Endeavour Silver a fair bit, however, it is our second largest holding so we do have a vested interest in this company. We also look at many other companies but for various reasons they do not fit the bill, so we put them on the back burner. We could publish this data but we don't want to be overly negative about any particular company.

Taking a very quick glance at the charts SFEG has done very little over the last two years were as EXK appears to have outperformed, please correct us if we are missing something.

February 5, 2012 | Registered CommenterSilver Prices

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