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Endeavour Silver's (EXK) Silver Production Up 25% in Q1

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Endeavour Silver Corporation (EXK - Free Report) produced 2 million silver equivalent ounces in the first quarter of 2022, which was 4% higher year on year. Consolidated silver production was 1,314,955 ounces in the quarter, up 25% year over year. This improvement can primarily be attributed to a 23% increase in silver production at the Guanacevi mine and a 70% rise in silver production at the Bolanitos mine.

The Guanacevi mine continues to exceed expectations for both silver and gold, driven by higher grades. At Bolanitos, strong silver production, higher silver grades and increased throughput were offset by the impact of lower-than-anticipated gold production and lower gold grades.

Gold production slumped 22% to 8,695 ounces in the quarter. A 27% increase in gold production at the Guanacevi mine was offset by a 16% decrease in gold production at the Bolanitos mine and the suspension of operations at the El Compas mine.

Endeavour Silver sold 1,717,768 ounces of silver and 8,381 ounces of gold in the quarter. At the quarter-end, the company held 608,788 ounces of silver and 1,911 ounces of gold in bullion inventory and 59,594 ounces of silver and 1,931 ounces of gold in concentrate inventory.

Other Key Developments in the Quarter

In January, Endeavour Silver announced that it has entered into an agreement with SSR Mining Inc. (SSRM - Free Report) to acquire the Pitarrilla project. Pitarrilla is located in Durango State, Mexico, and is one of the world's largest undeveloped silver projects. The deal is expected to be completed in the ongoing quarter.

The buyout will augment the company's pipeline of growth projects, which includes Terronera and Parral. Regarding Terronera, the company stated that it plans to make a formal construction decision, subject to completion of a financing package and receipt of additional amended permits in the coming months.

Recently, Endeavour Silver completed a prospectus offering for the issuance of 9,293,150 common shares at a price of $4.95 per share for gross proceeds of $46.0 million, including the exercise of an over-allotment option. The net proceeds will be utilized to pay the $35 million cash consideration to SSRM on completion of the Pitarrilla acquisition of the Pitarrilla project and for general corporate purposes and working capital.

Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Shares of the company have gained 24.1% over the past year compared with the industry's growth of 18%.

Zacks Rank & Stocks to Consider

Endeavour Silver currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the basic materials space include Nutrien Ltd. (NTR - Free Report) and Commercial Metals Company (CMC - Free Report) . Both flaunt a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Nutrien has an expected earnings growth rate of 108.7% for the current year. The Zacks Consensus Estimate for NTR's current-year earnings has been revised 37.4% upward over the last 60 days.

Nutrien has a trailing four-quarter earnings surprise of roughly 60.3%, on average. NTR has rallied around 45% year to date.

Commercial Metals has a projected earnings growth rate of 114.7% for the current fiscal year. The Zacks Consensus Estimate for CMC's current fiscal year earnings has moved up 35.1% over the past 60 days.

Commercial Metals has a trailing four-quarter earnings surprise of roughly 15.9%, on average. CMC has gained around 17% so far this year.


 

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