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Endeavour Silver's (EXK) Q4 Silver Production Up 27% in Q4
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Endeavour Silver Corporation (EXK - Free Report) produced 2.7 million silver equivalent ounces in the fourth quarter of 2022, which was 21% higher year on year. Silver and gold production at each mine met or exceeded EXK’s expected levels. Silver production was up 27% year over year to 1,830,835 ounces.
Total silver equivalent production for 2022 came in at 9 million, ahead of the anticipated range of 7.6 million to 8 million. The figure marked a 9% increase year over year, which was mainly attributed to a solid performance at Guanacevi.
At Guanacevi, throughput was 10% higher than last year’s quarter and also exceeded plans as plant modifications and refurbishment completed last year led to an increase in plant capacity. Throughput averaged 1,297 tons per day during the fourth quarter of 2022. Meanwhile, at Bolanitos, strong silver production from higher silver grades and increased throughput was offset by the impact of lower-than-anticipated gold production and gold grades.
Overall gold production in the fourth quarter was up 20% year-over-year to 10,370 ounces, as higher output at the Guanacevi mine offset the lower performance at the Bolanitos mine.
Endeavour Silver sold 2,816,881 ounces of silver and 11,843 ounces of gold in the fourth quarter, taking advantage of the pickup in silver prices. At the quarter-end, the company held 525,485 ounces of silver and 1,512 ounces of gold in bullion inventory and 4,766 ounces of silver and 195 ounces of gold in concentrate inventory.
Last year, Endeavour Silver completed the acquisition of SSR Mining Inc.’s (SSRM - Free Report) Pitarrilla Project. Located in Durango, Mexico, it is one of the largest undeveloped silver deposits in the world and adds to EXK’s growth pipeline in a mining-friendly jurisdiction, where the company already has extensive experience and expertise. This move marks a step forward in Endeavour Silver’s goal of becoming a premier senior silver producer. The buyout will add to the company's pipeline of growth projects, which includes Terronera and Parral. The indicated mineral resources total 158.6 million tons at the Pitarrila project. EXK stated that construction preparation is underway at the Terronera Project.
Guidance for 2023
For 2023, EXK projects silver production in the range of 5.7 to 6.3 million ounces and gold production to be between 36,000 ounces and 40,000 ounces. Silver equivalent production is likely to be between 8.6 million and 9.5 million ounces. The midpoint of the guidance projects a 1% increase from the production of 9 million ounces in 2022. This marks EXK’s fourth consecutive year of production growth.
At Guanaceví, plant throughput will range from 1,150 to 1,250 tons per day in 2023. Mine grades are expected to remain elevated and recoveries are anticipated to be similar in 2023. Plant throughput at Bolañitos is expected to range from 1,150 tons per day to 1,250 tons per day. Mine grades and recoveries are expected to be similar to 2022.
Consolidated cash costs and all-in sustaining costs for the year are estimated to be $10.00-$11.00 per ounce of silver and $19.00-20.00 per ounce of silver, respectively, net of gold by-product credits.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have fallen 12.0% over the past year compared with the industry's 9.1% decline.
Zacks Rank & Stocks to Consider
Endeavour Silver currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $14.08, suggesting 417.7% growth from the year-ago reported figure. Earnings estimates have moved 73.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 31.6% in the past year.
The Zacks Consensus Estimate for Franco-Nevada’s 2022 earnings per share is pegged at $3.67, suggesting 4.3% growth from the year-ago reported figure. Earnings estimates have moved 4.2% north in the past 60 days. FNV has a trailing four-quarter earnings surprise of 1.3%, on average. Its shares have gained 12.8% in the past year.
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Endeavour Silver's (EXK) Q4 Silver Production Up 27% in Q4
Endeavour Silver Corporation (EXK - Free Report) produced 2.7 million silver equivalent ounces in the fourth quarter of 2022, which was 21% higher year on year. Silver and gold production at each mine met or exceeded EXK’s expected levels. Silver production was up 27% year over year to 1,830,835 ounces.
Total silver equivalent production for 2022 came in at 9 million, ahead of the anticipated range of 7.6 million to 8 million. The figure marked a 9% increase year over year, which was mainly attributed to a solid performance at Guanacevi.
At Guanacevi, throughput was 10% higher than last year’s quarter and also exceeded plans as plant modifications and refurbishment completed last year led to an increase in plant capacity. Throughput averaged 1,297 tons per day during the fourth quarter of 2022. Meanwhile, at Bolanitos, strong silver production from higher silver grades and increased throughput was offset by the impact of lower-than-anticipated gold production and gold grades.
Overall gold production in the fourth quarter was up 20% year-over-year to 10,370 ounces, as higher output at the Guanacevi mine offset the lower performance at the Bolanitos mine.
Endeavour Silver sold 2,816,881 ounces of silver and 11,843 ounces of gold in the fourth quarter, taking advantage of the pickup in silver prices. At the quarter-end, the company held 525,485 ounces of silver and 1,512 ounces of gold in bullion inventory and 4,766 ounces of silver and 195 ounces of gold in concentrate inventory.
Last year, Endeavour Silver completed the acquisition of SSR Mining Inc.’s (SSRM - Free Report) Pitarrilla Project. Located in Durango, Mexico, it is one of the largest undeveloped silver deposits in the world and adds to EXK’s growth pipeline in a mining-friendly jurisdiction, where the company already has extensive experience and expertise. This move marks a step forward in Endeavour Silver’s goal of becoming a premier senior silver producer. The buyout will add to the company's pipeline of growth projects, which includes Terronera and Parral. The indicated mineral resources total 158.6 million tons at the Pitarrila project. EXK stated that construction preparation is underway at the Terronera Project.
Guidance for 2023
For 2023, EXK projects silver production in the range of 5.7 to 6.3 million ounces and gold production to be between 36,000 ounces and 40,000 ounces. Silver equivalent production is likely to be between 8.6 million and 9.5 million ounces. The midpoint of the guidance projects a 1% increase from the production of 9 million ounces in 2022. This marks EXK’s fourth consecutive year of production growth.
At Guanaceví, plant throughput will range from 1,150 to 1,250 tons per day in 2023. Mine grades are expected to remain elevated and recoveries are anticipated to be similar in 2023. Plant throughput at Bolañitos is expected to range from 1,150 tons per day to 1,250 tons per day. Mine grades and recoveries are expected to be similar to 2022.
Consolidated cash costs and all-in sustaining costs for the year are estimated to be $10.00-$11.00 per ounce of silver and $19.00-20.00 per ounce of silver, respectively, net of gold by-product credits.
Price Performance
Image Source: Zacks Investment Research
Shares of the company have fallen 12.0% over the past year compared with the industry's 9.1% decline.
Zacks Rank & Stocks to Consider
Endeavour Silver currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are CalMaine Foods, Inc. (CALM - Free Report) and Franco-Nevada Corporation (FNV - Free Report) . CALM currently sports a Zacks Rank #1 (Strong Buy) and FNV carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CalMaine Foods’ fiscal 2023 earnings per share is pegged at $14.08, suggesting 417.7% growth from the year-ago reported figure. Earnings estimates have moved 73.8% north in the past 60 days. CALM has a trailing four-quarter earnings surprise of 15.3%, on average. Its shares have gained 31.6% in the past year.
The Zacks Consensus Estimate for Franco-Nevada’s 2022 earnings per share is pegged at $3.67, suggesting 4.3% growth from the year-ago reported figure. Earnings estimates have moved 4.2% north in the past 60 days. FNV has a trailing four-quarter earnings surprise of 1.3%, on average. Its shares have gained 12.8% in the past year.