On Tuesday, Endeavour Silver (TSX:EDR) Corp (NYSE:EXK) maintained its Buy rating and a $6.25 price target from H.C. Wainwright. The endorsement follows the mining company's announcement of its latest quarterly production figures.
Endeavour Silver reported production of 2.2 million silver equivalent ounces (SEOs), marking a 5% year-over-year decrease. This was attributed to a 12% drop in silver output, producing 1.3 million ounces, and a 7% increase in gold production, yielding 10,549 ounces.
The slight decline in overall silver production was primarily due to lower silver grades extracted from the Guanaceví mine. On the other hand, the uptick in gold output was the result of higher gold grades at Guanaceví and Bolañitos mines, alongside a richer gold content from third-party feed processed at Guanaceví.
Despite the fluctuations in production, Endeavour Silver's management remains focused on the development of the Terronera project. The company is on track to commission the site in the fourth quarter of 2024, with production anticipated to commence in early 2025.
The first half of 2024 saw Endeavour Silver's production reach 4.4 million SEOs, hitting the upper end of the management's projected production guidance for the year, which ranges between 8.1 million and 8.8 million SEOs. This performance aligns with the firm's operational targets and supports the continued positive outlook from analysts.
In other recent news, Endeavour Silver Corp has been making significant strides in its operations. BMO (TSX:BMO) Capital recently reinstated coverage on the company, assigning an Outperform rating. The firm highlighted Endeavour Silver's operations, including the Guanaceví and Bolañitos mines in Mexico, and the development of the Terronera project in Jalisco, Mexico.
The Terronera project, which is on schedule and fully funded, is anticipated to commence production by the end of 2024, nearly doubling Endeavour Silver's production profile in 2025.
In terms of financials, Endeavour Silver reported a solid first quarter in 2024, with revenues rising 15% year-over-year to $64 million, despite a net loss of $1.2 million. The company's Q1 silver equivalent production totaled 2.3 million ounces, and it is on track to meet its 2024 production guidance of 8.1 to 8.8 million ounces. The construction of the Terronera mine is over half complete, with full completion expected in Q4 2024.
These recent developments reflect Endeavour Silver's strategic focus on its operations and financial health. The company's progress on its flagship Terronera project and strong performance in the first quarter of 2024 have positioned it favorably in the eyes of BMO Capital. As Endeavour Silver continues to advance its key project in Terronera, investors can anticipate a potential uplift in the company's performance.
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