Endeavour Silver and the Art of Perfection
Hope you all enjoy my write-up on Endeavour Silver, which recounts my observations during a recent tour of their Guanajuato operations.
Please let me know of you have any questions about the company or its growth prospects, and I look forward as always to receiving your feedback on this latest piece.
If anyone has asked you lately whether you know of a good silver stock, consider sending them a link... I think Endeavour makes a phenomenal long-term selection for silver exposure, and don't forget that the company's exit strategy is to build a company that a consolidator will be unable to resist.
Exiting the discussion with an exit strategy
Barker: What are your views on consolidation within the industry?
Cooke: We've talked about consolidation in the junior producers' sector for several years, and the main reason that hasn't happened is that most of the companies, including Endeavour, were just too small. They weren't material enough for senior silvers to care about, and there is no mid-tier in the silver mining sector. That's why Endeavour is so keen to grow into that space. We then fall into the rearview mirror of the senior silvers, and the senior gold/silvers. So yeah, I think there will be a consolidation of the silver sector. Endeavour is trying to be the first, and if we are successful, then I wouldn't be surprised if we see a couple more deals on the heels of ours.
Barker: Is being taken out by a senior silver producer desirable from Endeavour's standpoint?
Cooke: I think there's no question that if you can get all of your shareholders out at the tip of a friendly deal, that's the best way to maximize value for stockholders. That's part of our exit strategy -- to build a company that somebody else will totally want to own.