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Endeavour Silver's (EXK -2.1%) Q2 silver output +22% to 1M ounces, gold production +59% to 7,695...

Endeavour Silver's (EXK -2.1%) Q2 silver output +22% to 1M ounces, gold production +59% to 7,695 ounces. Revenue +11% to $40.4M due to the increased output and despite falling silver prices. Endeavour says it's on track to meet its full-year production targets of 4.3M ounces of silver and 26K ounces of gold.
Comments (1)
  • The AuRico deal has been approved by the Mexican anti-trust department. EXK has advised not to rely on the AuRico historical assessment of reserves and has been doing their due diligence partly by drilling the properties and forming their own assessment. This revised assessment will be made public on Aug 7th.

     

    This is likely to produce a substantially more conservative view of the purchase if for no other reason than AuRico was trying to sell the property and EXK was buying.

     

    Additionally, AuRico had a 5 month strike by the mining union. EXK has been non-union up to this purchase and it is unknown how influential the union will become.

     

    EXK management is sharp and there is a high degree of trust in their decisions but short term the market appears to discount the stock. The potential is that the market will not receive the Aug 7th press release favorably.

     

    Does anybody have additional information or perspective concerning this purchase?
    10 Jul 2012, 02:19 PM Reply Like
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