Endeavour Silver Corp (EXK)

[Entendance]

The Investment Doctor: "... the Mexican Peso depreciated really fast at the end of 2014 resulting in an average USD/MXN exchange rate of around 15 in the first quarter of this year. The Mexican Peso continued to weaken in the second quarter and it looks like the average USD/MXN exchange rate will be 2-3% more advantageous to Endeavour Silver compared to the first quarter.

This will obviously have a positive impact on the company's financials as a weaker Peso should increase the company's operating margins. It's definitely something to keep an eye on, and I will be looking forward to the next quarterly update to hear if Endeavour Silver has any plans at all to start hedging its currency.


Investment thesis

Despite the lower silver-equivalent production rate, Endeavour Silver seems to be performing better than I expected at the beginning of this year. The lower production rate was mainly due to a lower gold production as the production of pure silver actually increased.

I'm impressed by the production rate at the Guanacevi mine, as the mine already produced 57% of its expected full year production in just six months time. The discovery of the new high-grade zone is very positive and I hope this will contribute to increasing the reserve-based mine life at Guanacevi."

Greetings from Fred & EntendanceInvestors Beach!
Fred & EntendanceInvestors Beach advice to buyers of physical precious metals is the same as always: if you purchased it and you can't hold it in your hand, it isn't yours.