Endeavour Silver Corporation
EXK
produced 8.3 million silver equivalent ounces in 2021, which was 22% higher year on year and surpassed the company’s expectation of 7.7-8.0 million silver equivalents. This was courtesy of steady performance at Bolanitos and record mill throughput, grade and production at Guanacevi. Annual silver production exceeded guidance by 3%, while gold production was in line with the upper range of outlook. The company’s shares gained 8.7% to close at $4.26 on Jan 11 on the upbeat news.
The figure of 8.3 million ounces for the year consisted of 4,870,787 ounces of silver and 42,262 gold ounces. At year-end, the company held 1,028,340 ounces of silver and 1,044 ounces gold in bullion inventory, and 54,270 ounces silver and 2,630 ounces gold in concentrate inventory. Management continued to be bullish on precious metal prices and withheld a portion of metal sales in the fourth quarter, consistent with the levels held as of Sep 30, 2021.
Q4 Production Rises 29% Y/Y
Consolidated silver production was 1,443,564 ounces in the fourth quarter of 2021, up 29% year over year. This improvement was aided by a 31% increase in silver production at the Guanacevi mine and a 42% rise in silver production at the Bolanitos mine. This was offset by the suspension of operations at the El Compas mine.
Gold production slumped 25% to 9,446 ounces in the quarter. A 21% increase in gold production at the Guanacevi mine was offset by a 19% decrease in gold production at Bolanitos mine and the suspension of operations at the El Compas mine. Endeavour Silver sold 1,413,699 ounces of silver and 8,715 ounces of gold in the quarter.
Developments in 2021
During the year, Endeavor Silver sold its El Cubo assets in Guanajuato, Mexico to Guanajuato Silver Co for $15 million-plus contingent payments up to $3 million.
The company suspended operations at El Compas in mid-August due to exhaustion of reserves. It is currently evaluating its alternatives for the asset.
Endeavour Silver closed the acquisition of BrunerProperty, located in Nye County, NV for $10 million in cash on Sep 1, 2021. With this deal, the company added an advanced stage gold exploration project in a favorable jurisdiction to its portfolio.
The company is currently advancing the Terronera mine project toward a development decision.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have fallen 5.1% over the past year compared with the
industry
’s decline of 29.8%.
Zacks Rank & Stocks to Consider
Endeavour Silver currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks worth considering in the basic materials space include
Commercial Metals Company
CMC
,
Albemarle Corporation
ALB
and
AdvanSix Inc.
ASIX
.
Commercial Metals has a projected earnings growth rate of 10.5% for the current fiscal year. The Zacks Consensus Estimate for CMC’s current fiscal year earnings has been revised upward by 6.6% over the past 60 days. CMC sports a Zacks Rank #1 (Strong Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 7.4%. CMC has rallied around 63% in a year.
AdvanSix, sporting a Zacks Rank #1, has an expected earnings growth rate of 3.9% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised upward by 1.6% in the past 60 days.
AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 46.9%. ASIX has soared 100% in a year.
Albemarle, carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 49.8% for the current year. ALB’s consensus estimate for the current year has been revised upward by 4% over the past 60 days.
Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the average being 22.1%. ALB shares have appreciated 33.5% in a year.
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