BMO raises Endeavor Silver price target after better-than-expected first-quarter results

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On April 11, Endeavor Silver Corp. (TSX: EDR) announced its production results for the first quarter of 2021. The company announced production of 1,314,955 ounces of silver and 8,695 ounces of gold, which equates to a total of 2.0 million equivalent ounces. money.

Silver production increased 25% year over year, while gold production fell 22%, leading to a 4% growth in its silver equivalent ounces. one year to the next. The company reported that its throughput fell 2% to 206,147 tonnes for the quarter.

Additionally, the company said it sold 1,717,768 ounces of silver and 8,381 ounces of gold this quarter and had 608,788 ounces of silver and 1,911 ounces of gold in inventory, in addition to 59,594 ounces of gold. silver and 1,931 ounces in concentrate stock.

Endeavor Silver currently has 7 analysts covering the stock with a 12-month average price target of C$7.58, up 10% from the current stock price. Of the 7 analysts, 2 have buy ratings while the other 5 have hold ratings on the name. The high of the street sits at C$11.05, which is a 60% upside from the current stock price.

In BMO’s memo on production results, they reiterate their market performance rating and raise their 12-month price target from $5.75 to $6.00, saying the company is starting the year strong.

Regarding silver production results, BMO reports that Endeavor exceeded its estimates by 17%, with Bolañitos production reaching 181.1,000 ounces versus 127.5,000 ounces. They say the rate of production was mainly due to “higher silver content and increased milling throughput.” Endeavor’s Guanacevi mine produced 1,134,000 ounces of silver, beating BMO’s estimate by 14%.

In terms of gold production, Endeavor slightly exceeded BMO’s estimate of 8,300 ounces, or 5% higher. Once again, Guanacevi was the main mine that exceeded expectations as it produced 3,500 ounces against 2,800 ounces estimated by BMO.

Finally, BMO discusses Endeavor selling its silver inventory, commenting that the company sold about 400,000 ounces more than in previous quarters. For this reason, they have increased their cash flow estimates for the next twelve months.

Below, you can see BMO’s updated estimates.


Information for this briefing was found via Sedar and Refinitiv. The author has no security or affiliation related to this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author holds no license.


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