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Jbay76 (< 20)

Endeavor's 4th quarter 2010 results are out

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March 24, 2011 – Comments (7) | RELATED TICKERS: EXK , SIL , SVL

Endeavor released their 4th quarter earnings from 2010 yeasterday and it looks great.  So great, Mr. Market is trying to ground and pound our respective silver miner down 4.7%...no love I see.  And Endeavor is killing it!!!

Here are some highlights for those who don't want to click on the link above...

 Highlights of fiscal year 2010 compared to 2009

Net Earnings improved to $7.1 million ($0.11 per share) from a loss of $1.9 million Operating cash-flow jumped 167% to $32.7 million Revenues increased 70% to $86.5 million Realized silver price rose 27% to $19.62 per oz sold Cash operating costs fell 5% to $5.71 per oz silver produced, net of by-product gold credits Year-end working capital of $102 million, with cash and short-term investments of $88 million Silver production increased 26% to 3.3 million oz Gold production rose 33% to 17,713 oz Silver and equivalents production escalated 20% to 4.2 million oz (at a 50:1 silver:gold ratio) Silver proven and probable reserves decreased 19% to 13.4 million oz Silver indicated resources up 16% to 27.4 million oz Silver inferred resource up 62% to 29.7 million oz

Highlights of Fourth Quarter 2010 (Compared to Fourth Quarter 2009)

Net Earnings increased 81% to $5.6 million ($0.09 per share) Operating cash-flow jumped 107% to $21.5 million Revenues climbed 18% to $28.5 million Realized silver price averaged $24.16 per oz sold Cash operating costs fell 5% to $4.72 per oz silver produced, net of by-product gold credits Silver production increased 15% to 895,931 oz Gold production rose 6% to 4,871 oz Silver and equivalents production escalated 13% to 1.14 million oz

Guidance for 2011

Silver production forecast of 3.7 million oz Gold production forecast of 19,000 oz Silver and equivalents production forecast of 4.7 million oz Cash cost forecast of less than $5.70 per oz of silver produced, net of by-product gold credits Capital cost forecast of $36.7 million and exploration budget of $9.2 million Revenue forecast of $113.9 million assuming $24 silver and $1,320 gold

 

7 Comments – Post Your Own

#1) On March 24, 2011 at 1:59 PM, Jbay76 (< 20) wrote:

Straight from the CEO's mouth...

Bradford Cooke, Chairman and CEO, commented, "Endeavour delivered yet another year of record financial and operating performance in 2010 and as a result, the Company has never been in a better financial position. We finished last year with robust earnings, more than $100 million in working capital, no debt, falling cash costs, rising silver production and higher precious metals prices."

"In 2011, management is forecasting Endeavour's seventh consecutive year of organic silver production growth by expanding the Guanajuato plant from 600 up to 1000 tonnes per day. Cash costs are expected to continue declining into the mid-$5 per oz range and if we assume a US$30 average silver price in 2010, our mine operating profit margin will be around $24 per oz – remarkable by any standards."

"We remain focused on the continuous expansion and improvement of our two operating mines, the organic growth of our reserves and resources, and last but not least, we continue to seek opportunities to grow through mergers and acquisitions that are accretive to our shareholders. 2011 promises to be another great year for Endeavour Silver."

 

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#2) On March 24, 2011 at 2:32 PM, XMFSinchiruna (28.49) wrote:

Thanks fror posting, Jbay!

http://www.fool.com/investing/general/2011/03/24/how-silver-is-profitably-mined.aspx

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#3) On March 24, 2011 at 2:44 PM, kdakota630 (31.64) wrote:

Thanks for the link (and video) TMFSinchiruna. 

It reminded me of how messy a mine can be.  I was told that the one that I worked at (albeit on the surface crew) was a very "clean" mine, in that there was never water around because it was always at sub-zero temperatures.

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#4) On March 24, 2011 at 3:26 PM, Jbay76 (< 20) wrote:

Anytime Sinchi!  In fact, I'm patting myself on the back just becuase of your post :-)

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#5) On March 27, 2011 at 5:12 AM, Murphster36 (87.91) wrote:

 "forecast of $113.9 million assuming $24 silver and $1,320 gold."    If they're using $24/ounce for the forecast this company is going to crush estimates this year!!!

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#6) On March 28, 2011 at 2:08 PM, Jbay76 (< 20) wrote:

@Murphster36...

They've been beating estimates 7 years in a row :-)

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#7) On April 11, 2011 at 3:59 PM, Jbay76 (< 20) wrote:

EXK's video's of how they mine were linked here and have garned many viewers...incredible how popular it has become!!!

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