Stock Guru Profile – Endeavour Silver Corp. Home Page
Endeavour stated in December of 2006 that management planned to release its 2007 production forecast and updated NI 43-101 reserve-resource estimate for the Guanacevi Mines Project in February 2007. We are getting very close to the end of February.
Endeavour revised its production guidance for 2006 in December of 2006. At that time Endeavor had a forecast for their silver production of 1.3 to 1.35 million oz silver which is up 40% over 2005, and silver stockpiles totaling 0.6 million oz to year-end. Endeavour stated their cash operating costs were expected to average between US$4.75 and US$5.25 per oz silver produced in 2006 which is down slightly from 2005.
If production forecasts are good and those forecasts are coupled with the outlook for silver in 2007 it is time to take a very close look at Endeavour.
Silver Outlook: Reasonable demand growth, limited supply growth and, importantly, ongoing investor interest combine to make a move towards $15 an ounce achievable, according to Natexis. It has forecast an average annual price of $13.75 an ounce in 2007 followed by $14.25 an ounce in 2008 compared with last year’s average of $11.55 an ounce. Silver fundamentals are still supportive of the market. The potential for a further slide in dollar and shift in investment away from mainstream markets (equities and bonds) towards precious metals can have a disproportionately larger impact on markets such as silver.
Silver prices have extracted themselves from a 20-year slump and mining stocks offer a time proven way to play the rally. The estimated amount of silver in the world-20 billion ounces-is tiny relative to the size of the gold market and financial markets.
“There are only a small number of silver mines that are not in unstable parts of the world,” says Fred Mickey, editor of the High-Tech Strategist and a member of the Barron’s Roundtable.
Several large silver-focused producers are politically risky because of operations in Bolivia and Peru both of which have a history of nationalizing industries.
There are three sizable silver producers: Coeur d’Alene Mines, Hecla Mining and Pan American Silver. The largest, Pan American , has a market value of just $2.26 billion; the three combined have a market capitalization of under $5 billion. Because they are scarce, silver shares command some of the highest valuations in the mining sector. Pan American Silver, for instance, trades for more than 30 times this year’s projected profits, a big premium to most big mining companies, which fetch 5-to-15 tunes earnings.
Because they are scarce, silver shares command some of the highest valuations in the mining sector. Pan American Silver, for instance, trades for more than 30 times this year’s projected profits, a big premium to most big mining companies, which fetch 5-to-15 tunes earnings.
Endeavour offers a pure play in silver which is appealing. If silver forecasts exceed expectations then Endeavour is ONCE AGAIN a very, very, very appealing company for the short term and the long.
Last year Endeavor released these results on March 28, 2006. (Link here for release.)
Source: ENDEAVOUR SILVER CORP. , Netaxis, National Post, World Silver Survey, Barron’s Roundtable
Contacts:
Endeavour Silver Corp.
Email: Hugh Clarke Hugh@edrsilver.com
(604) 685-9775 or Toll Free: 1-877-685-9775
(604) 685-9744 (FAX)
Email: investorrelations@edrsilver.com
Website: http://www.stockguru.com/blog/www.edrsilver.com
About Endeavour Silver, Corp.: Endeavour Silver Corp. EXK – Amex is a small-cap silver mining company focused on the growth of its silver production, resources and reserves in Mexico. The expansion plan now underway at the high grade, Guanacevi mines project in Durango should propel Endeavour into the ranks of the top 5 primary silver producers in the world. Endeavour stands out from other primary silver companies for its high silver grades (+15 oz. per ton), its high silver leverage (+90%), the substantial exploration upside of the Guanacevi mines project (+30 million oz), the potential capacity of the Guanacevi plant and the organic growth potential of these core assets.
CAUTIONARY DISCLAIMER – FORWARD-LOOKING STATEMENTS: Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are “forward-looking statements”. We caution you that such “forward-looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company’s filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. Godfrey Walton, P.Geo. and/or Bradford Cooke, P.Geo. are the Qualified Persons for the Company as required by NI 43-101. The Company expressly disclaims any obligation to update any forward-looking statements.
Disclosure: Pentony Enterprises LLC was compensated $10,000.00 for profile coverage. Pentony Enterprises LLC is not a registered investment advisers or broker/dealers. Pentony Enterprises LLC makes no recommendation that the purchase of securities of companies profiled in this web site is suitable or advisable for any person or that an investment such securities will be profitable. In general, given the nature of the companies profiled and the lack of an active trading market for their securities, investing in such securities is highly speculative and carries a high degree of risk.
Safe Harbor Statement: All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company’s behalf, that are not statements of historical fact, constitute “forward-looking statements” and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in the Company’s Annual Report on Form 10-K as filed with the Securities and Exchange Commission. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
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