Endeavour Silver (EXK +0.1%) is upgraded to Neutral from Sell at Euro Pacific Capital, which raises its net asset value estimate for EXK to $247M, or $2.32/share, from $170M, or $1.61/share, following an increase in long-term metal prices.
The firm notes that the model assumes the El Cubo mine will continue to operate under maintenance and care subject to change should management decide to increase production (Briefing.com).
However, given the 22.9M silver equiv. oz. at El Cubo and infrastructure that supports a mining operation of ~2,200 metric tons/day, the firm places a flat value of $30M and believes the project holds strong potential as the silver price moves above $20/oz.
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