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Endeavour Silver: An Inferior Buy-The-Dip Candidate

Oct. 04, 2021 3:38 PM ETEndeavour Silver Corp. (EXK), EDR:CA14 Comments
Taylor Dart profile picture
Taylor Dart


  • Endeavour Silver is one of the worst-performing precious metals stocks the past few months, down more than 45% from its June highs.
  • The poor performance can be attributed to Endeavour's razor-thin all-in sustaining cost margins, which will remain below 20% if the silver price remains below $23.00/oz.
  • This weakness in the silver price could weigh on Endeavour's ability to generate free cash flow to help fund Terronera, suggesting share dilution could be back on the table.
  • After a precipitous decline, Endeavour Silver is short-term oversold, but at a valuation of ~1.50x NPV (5%), I see much better value elsewhere in the sector.
Miners in the Potosi Silver Mine

SL_Photography/iStock Editorial via Getty Images

While the Silver Miners Index (SIL) started the year strong by massively outperforming the Gold Miners Index (GDX), we've seen a reversal of fortune since. This is evidenced by the Silver Miners Index now down 19% year-to-date vs. a 17% decline

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Taylor Dart profile picture
"A bull market is when you check your stocks every day to see how much they went up. A bear market is when you don't bother to look anymore."- John Hammerslough - Disclosure: I am not a financial advisor. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading or investing.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AGI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Disclaimer: Taylor Dart is not a Registered Investment Advisor or Financial Planner. This writing is for informational purposes only. It does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Taylor Dart expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing.

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