Replies to post #691 on Endeavour Silver Corp (EXK)

[JohnCM]

Hard Asset Investments
Long only, gold & precious metals, oil & gas, alternative energy

Update: Endeavor Silver Reports Q3 Production Totals

Oct. 12, 2014 7:17 AM ET

Endeavor Silver has announced production totals for Q3 2014; the company produced 1.63 million silver ounces and 14,118 gold ounces.
Silver production fell 12% and gold production fell 38% compared to a year ago; silver equivalent production declined 23%.
However, silver and gold production remains on target to meet the company's consolidated guidance for the year and production is expected to improve in the fourth quarter.

Endeavor Silver (NYSE:EXK) recently announced third quarter 2014 production totals at its three silver-gold mines in Mexico: the Guanacevi mine in Durango State, and the Bolanitos and El Cubo mines in Guanajuato State. Silver production came in at 1.63 million ounces and gold production was 14,118 ounces, for a total of 2.5 million silver equivalent ounces, which is down slightly from last quarter's total of 2.6 million ounces.

"In a previous article on Endeavor, I argued that the stock is a buy despite higher than expected cash costs recently at its mines. My reason is because management had previously warned costs were expected to rise in the second and third quarters, so the higher costs should not come as a surprise to investors. In addition, I argued that Endeavor's long-term growth potential remains intact, putting the company on track to increase production to 16+ million silver ounces in just a few years.

While the production totals for Q3 represent a 23% decrease in total production year-over-year, this does not change my investment thesis as the company is on track to meet or exceed guidance for 2014. In addition, production should improve in the fourth quarter as the company's annual capital programs near completion, according to CEO Bradford Cooke.

With silver under $18 and gold near $1,200, Endeavor's margins will no doubt suffer in the short term. However, I urge investors to take a longer investing time frame when putting funds into a company like Endeavor. If you're bullish on silver in the long term like I am, and feel prices could eventually get back to 2011 levels of $30+ ounce, then the stock remains a compelling buy."