Endeavour Silver's (NYSE:EXK) Q2FY13 quarter left a lot to be desired from investors from a true all-in costs basis, with their costs rising from previous quarters even after the major decline in precious metals prices. Liquidity remains sufficient and production numbers were pretty good, but investors should expect much more from management in terms of lowering costs of production.
Management does forecast production cost decreases in H2 and that is what investors will need to see in Q3FY13. Unfortunately, precious metals mining companies have a bad track record at significantly cutting costs and that is what EXK will have to do in Q3 to justify the current share price at the current silver price. We think...
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