We kick off with a quick look at the above chart, and what a super chart it is. A rapid climb by Endeavour Silver Corporation (EXK) has seen the stock price double since September on steadily increasing volume, the ability to deliver as planned and expansion through the acquisition process. The indicators are on the high side, however, they could stay there for some time in this environment where the silver bull is in an aggressive mood.
Also hot off the press we have their latest results which follow below:
Third Quarter 2010 Highlights (Compared to Q3, 2009)
Net Earnings climbed from $1.5 million loss to $0.1 million gain
EBITDA rose 826% to $6.5 million
Mine operating cash-flow escalated 181% to $10.9 million
Sales revenues increased 105% to $20.1 million
Cash costs increased 14% to $5.93 per oz silver produced (net of gold credits)
Silver production climbed 20% to 797,054 ounces (oz)
Gold production jumped 28% to 4,607 oz
Silver equivalent production rose 22% to 1,096,509 oz (65:1 silver: gold ratio, no base metals)
Plant expansion to 1,000 tonnes per day at Guanacevi now substantially complete
Acquired three new properties and identified three new silver-gold veins at Guanacevi
Discovered two new silver-gold veins at Guanajuato
Commenced new Lucero South access ramp to accelerate development and production of Lucero vein
Became debt-free with conversion of $10.1 million debentures into 5.3 million units
Launched all-cash bid to acquire Cream Minerals (since amended)
Bradford Cooke, Chairman and CEO, said that the performance in Q3, 2010 can be attributed to our growing silver-gold production, improving cash costs and higher metal prices. Once again, our operating team did an excellent job, as Endeavour remains ahead of schedule on our 2010 production targets and our capital expansion projects for 2010 are now substantially complete.”
Note those three words: ‘ahead of schedule‘ and this is not for the first time, they have delivered on their stated plans consistantly.
Endeavour has amended its offer to acquire Cream Minerals with the support and recommendation of the Cream Board. If successful, the bid to acquire control of Cream will become an integral part of EXK’s acquisition growth strategy. Management will remain focused on both organic growth and acquisition opportunities in the Fourth Quarter.
Its also good to see that their Cash operating costs are trending downward toward the $5.00-$5.50 per oz range, which in turn will add to the profit margin.
The company has a good cash position at the moment with working capital standing at $42.4 million, up from $38.8 million at the end of 2009.
To read their results in full please go to there site via this link.
Endeavour Silver Corporation is set up well 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 appearing on a screen near you as the company trades on three stock exchanges as follows:
On the skoptionstrading front some of our ’stops’ were triggered, sending us back into cash with some good profits, we will update the chart on the skoptionstrading site this weekend.
The above progress chart is being updated constantly. However, to see exactly how it is going, please click this link.
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Disclosure: EXK, SLW,SSRI,PAAS,HL