Endeavour Silver......A Big 2012???

8 posts / 0 new
Last post
PaPaSpeed
PaPaSpeed's picture
Offline
Joined: 06/14/2011
Hat Tips: 1610
Posts: 95
Endeavour Silver......A Big 2012???

Endeavour Silver sets new production records in 4th quarter, 2011; silver production up 25% to 1,120,780 oz, gold output up 45% to 7,045 oz (EXK) 10.39 : In Q4, 2011, silver production was up 25% to 1,120,780 ounces (oz) and gold production was up 45% to 7,045 oz compared to the Fourth Quarter, 2010. Due to the correction in metal prices in the 4th quarter 2011, Endeavour management elected to hold a significant portion of the Q4 silver and gold production in inventory rather than sell at the lower prices. Management plans to monitor the metal prices closely and sell some or all of the silver and gold in inventory at appropriately higher metal prices, or if the need arises for more cash. As a result, the Company sold only 400,000 oz silver and 4,000 oz gold in Q4, 2011 and metal inventories rose to 812,000 silver oz and 3,000 gold oz in bullion and another 168,000 oz silver and 2,400 oz gold recoverable from concentrate as of December 31, 2011. Therefore, revenues dipped 39% in the 4th quarter to US$17.5 million and Endeavour's 4th quarter and 2011 annual earnings will not reflect the ounces withheld from sale and currently in inventory. Endeavour delivered its seventh consecutive year of production growth and exceeded its production guidance of 3.7 million oz silver and 19,000 oz gold for the year. Silver production rose 14% to 3,730,127 oz silver and gold output escalated 23% to 21,810 oz compared to 2010.

http://finance.yahoo.com/marketupdate/inplay

Looks like a good start to the year for Endeavour. Seem like they may have taken some advice form Eric Sprott and hold some inventory until prices escalate. I'm looking for a big year from Endeavour, I've been building a nice position for awhile now. So goes Endeavour, so goes my account.

The thing I love about miners is that they have the physical, they just have to get it out of the ground, hold it, and sell at the right time.

Good Luck!

Edited by admin on 11/08/2014 - 06:08
Eric Original
Eric Original's picture
Offline
Joined: 06/14/2011
Posts: 4235
I'm loving EXK on today's

I'm loving EXK on today's news!

__________________

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

lakemike49
lakemike49's picture
Offline
Joined: 06/14/2011
Hat Tips: 1744
Posts: 142
have never bought a mining stock

TRX  I was listening to jim sinclair, and I have a great deal of respect for the man. trying to do my own DD on this, but you guys are much more the experts on miners. does anyone else think this is a good buy and hold for the long run?

thanks in advance for any help here.

lakemike

Eric Original
Eric Original's picture
Offline
Joined: 06/14/2011
Posts: 4235
wrong thread, friend

There is an entire thread devoted to TRX, and this ain't it.

http://www.tfmetalsreport.com/forum/tanzanian-royalty-exploration-trx/133?page=4

Personally, I love Jim Sinclair to death, he's one of my guiding lights on physical, but that stock has been a disaster, and one that I wouldn't touch with a ten foot pole to begin with.  Tanzania???  For cryin out loud, there is so much gold and silver still in Canada and Mexico that I see no reason to go to Tanzania.

Sorry to be so blunt, but there it is.....

lakemike, please stop by my miner thread for ongoing chit chat about the miners.  BOG's thread is also great for the pennies. 

http://www.tfmetalsreport.com/forum/672/eric-os-favorite-gold-miners?page=40

http://www.tfmetalsreport.com/forum/1932/bag-golds-penny-stock-arcade-emporium?page=26

__________________

This isn't a metals blog anymore. It's a right wing circle jerk, masquerading as a metals blog.

Sterling
Sterling's picture
Offline
Joined: 06/14/2011
Hat Tips: 2826
Posts: 266
I'm looking at selling some

I'm looking at selling some EXK puts soon.

__________________

Can I offer you a drink? How about this expensive prostitute?

PaPaSpeed
PaPaSpeed's picture
Offline
Joined: 06/14/2011
Hat Tips: 1610
Posts: 95
Hopefully, Endeavour becomes

Hopefully, Endeavour becomes a money making machine. Following Sprott's advice of building inventory should pay off handsomely.

http://seekingalpha.com/article/322423-why-silver-miners-are-hoarding-silver?source=yahoo

A miner's best interest, and that of its shareholders, is served by getting the best return on capital. A 20% higher selling price will go a long way to fund future projects.

Provided the company has cash available to cover mid-term operating expenses, it really doesn't need loads of cash on the balance sheet. Holding physical silver inventory is far better.

In the fourth quarter, Endeavour made a sizeable bet on higher future silver prices by holding onto millions of dollars worth of silver and gold. From their fourth quarter production press release:

...As a result, the Company sold only 400,000 oz silver and 4,000 oz gold in Q4, 2011 and metal inventories rose to 812,000 silver oz and 3,000 gold oz in bullion and another 168,000 oz silver and 2,400 oz gold recoverable from concentrate..

This was a huge jump in inventory for Endeavour, up from 270,536 silver ounces and 2,420 gold ounces at the end of the third quarter.

The company now sits on more than $40 million of precious metals inventory.

Good luck!!!

Sterling
Sterling's picture
Offline
Joined: 06/14/2011
Hat Tips: 2826
Posts: 266
Monday, March 19,

Monday, March 19, 2012
Endeavour Silver Expands Its Reserves/Resources for 8th Consecutive Year


Vancouver, Canada - March 19, 2012 - Endeavour Silver Corp. (NYSE: EXK, TSX: EDR, Frankfurt: EJD) announced today that for the eighth consecutive year, the Company has grown its consolidated silver and gold reserves and resources.

Endeavour released today its updated NI 43-101 reserve and resource estimates to December 31, 2011 (see table below) for its two producing silver mines (the Guanacevi Mine in Durango State and the Guanajuato Mine in Guanajuato State) and three exploration projects (the San Sebastian Project in Jalisco, Parral Project in Chihuahua and Arroyo Seco Project in Michoacán) in Mexico.

Endeavour more than replaced the Proven and Probable Reserves it depleted in 2011 and the Resources in all categories also increased as a result of our successful exploration and development programs. Gold reserves and resources increased more than silver reserves and resources because much of our exploration success last year was at Guanajuato where the gold grades are much higher than at Guanacevi.

The 2011 year-end reserve and resource highlights are as follows:

2011 Reserve/Resource Highlights

  • Silver Proven and Probable Reserves up 25% to 16.8 million ounces (oz);
    Guanacevi 13.5 million oz and Guanajuato 3.3 million oz
  • Gold Proven and Probable Reserves up 69% to 67,500 oz;
    Guanacevi 26,300 oz and Guanajuato 41,200 oz
  • Silver Equivalent Proven and Probable Reserves up 29% to 20.5 million oz;
    Guanacevi 14.9 million oz and Guanajuato 5.6 million oz
  • Silver Measured and Indicated Resources up 32% to 36.1 million oz;
    Guanacevi 19.9 million oz, Guanajuato 11.6 million oz, Parral 2.6 million oz, San Sebastian 2.0 million oz
  • Gold Measured and Indicated Resources up 47% to 267,600 oz;
    Guanacevi 38,800 oz, Guanajuato 176,200 oz, Parral 47,200 oz, San Sebastian 5,400 oz
  • Silver Equivalent Measured and Indicated Resources up 36% to 50.8 million oz;
    Guanacevi 22.1 million oz, Guanajuato 21.3 million oz, Parral 5.2 million oz, San Sebastian 2.2 million oz
  • Silver Inferred Resources up 18% to 35.1 million oz;
    Guanacevi 15.0 million oz, Guanajuato 9.8 million oz, Parral 2.7 million oz, Arroyo Seco 5.2 million oz, San Sebastian 2.4 million oz
  • Gold Inferred Resources up 9% to 184,800 oz;
    Guanacevi 27,200 oz, Guanajuato 114,100 oz, Parral 37,000 oz, Arroyo Seco 2,000 oz, San Sebastian 6,000 oz
  • Silver Equivalent Inferred Resources up 16% to 45.3 million oz;
    Guanacevi 16.4 million oz, Guanajuato 16.1 million oz, Parral 4.5 million oz, Arroyo Seco 5.3 million oz, San Sebastian 2.7 million oz
    • Mineral resources are calculated exclusive of the mineral reserves
    • Proven Reserves are determined as being within 10 meters of underground development while Probable Reserves are a further 15 meters from underground development.
    • Mine plans are developed for the Proven and Probable Reserves and Measured and Indicated Resources but the Inferred Resources are discounted in the mine plans.
    • Mineral reserves have demonstrated economic viability whereas mineral resources do not
    • 2010 silver equivalents based on 65:1 silver:gold ratio, base metals not included
    • 2011 silver equivalents based on 55:1 silver:gold ratio, base metals not included
    • All assumptions used are listed at the bottom of the reserve and resource summary
    • table

Bradford Cooke, Chairman and CEO, commented, "Endeavour enjoyed another strong year of organic growth of our consolidated silver and gold reserves and resources thanks to the success of our exploration and development programs. Our talented exploration team continues to discover new, high grade silver-gold deposits year after year within historic Mexican silver districts."

"Last year, it was the Daniela/La Joya/Belen discoveries in Guanajuato, the Milache discovery along the Santa Cruz vein north of the Porvenir Cuatro mine in Guanacevi, and several finds at San Sebastian that fueled our resource growth. In 2012, Endeavour will focus on the organic growth of its reserves and resources through its ongoing strategic acquisition and exploration programs within the Guanacevi and Guanajuato districts. We will also continue to seek exciting new district scale exploration opportunities (such as San Sebastian in 2010) in order to facilitate our future growth."

Reserves and Resources (as of December 31, 2011)
Reserves Proven & Probable
Description 
Tonnes
Ag g/t
Au g/t
Ag oz
Au oz
Proven
Guanacevi
773,000
304
0.65
7,555,500
16,200
 Guanajuato
337,000
189
2.41
2,045,400
26,100
Total Proven
1,110,000
268
1.18
9,575,200
42,200
Probable
 Guanacevi
799,000
231
0.39
5,935,400
10,100
 Guanajuato
179,000
225
2.63
1,297,200
15,200
Total Probable
978,000
285
0.38
7,232,600
25,300
Total Proven & Probable
2,088,000
250
1.01
16,807,800
67,500

Resources Measured & Indicated  
Description
Tonnes
Ag g/t
Au g/t
Ag oz
Au oz
Measured
 Guanajuato
258,000
177
2.51
1,470,900
20,800
Total Measured
258,000
177
2.51
1,470,900
20,800
Indicated
 Guanacevi
2,849,000
217
0.42
19,922,300
38,800
 Guanajuato
2,539,000
161
2.20
10,128,300
155,400
San Sebastian
307,000
199
0.55
1,968,000
5,400
Total Indicated
5,695,000
175
1.09
32,018,600
199,600
Total Measured & Indicated
5,953,000
175
1.15
33,489,500
220,400

Resources Inferred
Description
Tonnes
Ag g/t
Au g/t
Ag oz
Au oz
Guanacevi
2,013,000
217
0.40
14,050,900
26,200
Guanajuato
1,783,600
167
1.92
9,586,700
110,200
San Sebastian
354,000
211
0.52
2,404,100
5,900
Total Inferred
4,150,600
195
1.07
26,041,700
142,300

Silver-Gold-Lead-Zinc Resources (as of December 31, 2010)
Description
Tonnes
Ag g/t
Au g/t
Ag oz
Au oz
Pb %
Zn%
Resources Indicated
Parral
1,631,000
49
0.90
2,589,900
47,200
2.87
2.86
Total Indicated
1,631,000
49
0.90
2,589,900
47,200
2.87
2.86

Description Tonnes Ag g/t Au g/t Ag oz Au oz Pb % Zn%
Resources Inferred
Guanacevi
307,000
98
0.10
962,900
1,000
1.73
3.32
Parral
1,303,000
63
0.88
2,658,900
36,900
2.55
2.28
Arroyo Seco
738,000
220
0.07
5,220,000
1,700
0.65
0.18
Total Indicated
2,348,000
117
0.52
8,841,800
39,600
1.85
1.76
  1. Notes:
  2. Reserve cut-off at Guanacevi is 158 g/t Ag
  3. Reserve cut-off at Guanajuato is 111 g/t Ag
  4. Mining width is 2.0 meters
  5. Dilution is 15% after it has been diluted to a minimum mining width if required
  6. Resource cut-off for the Guanacevi and Guanajuato projects is 100 Ag eq
  7. Reserve and Resource Silver equivalent is 55:1 for Silver to Gold
  8. At the Parral project a cut-off using NSR of $40 is used with the prices listed below
  9. The cut-off used for Arroyo Seco was 100 g/t Ag
Net Smelter Return (NSR) Cut-off Parameters for the Parral Project
Description
Parameter
Gold Price US $1,000 per oz
Silver Price US $16 per oz
Lead Price US $0.65 per lb
Zinc Price US $0.65 per lb
Gold Recovery (Overall) 75%
Silver Recovery (Overall) 71%
Lead Recovery (Overall) 80%
Zinc Recovery (Overall) 74%
Smelter Terms Based on generic contract

Endeavour exploration personnel prepared the updated resources to December 31, 2011 for the exploration projects at Guanacevi and Guanajuato mines and San Sebastian. The Parral and Arroy Seco resources were estimated at the end of 2010 and remain unchanged from that time.

Endeavour retained Micon International Limited (Micon) to update the reserves and resources for the Guanacevi and Guanajuato mines and to audit resources generated from exploration projects around the mines (i.e. Guanacevi and Guanajuato) and also for the San Sebastián project. The Qualified Persons for Micon are William J. Lewis, B.Sc., P.Geo., Charley Murahwi, M.Sc., P.Geo, FAusIMM, and Ing. Alan J. San Martin MAusIMM(CP). Micon's report for the Guanacevi and Guanajuato mines and the San Sebastián project will be completed and filed on SEDAR before the end of March. The Arroyo Seco report was authored by David St. Clair Dunn B.Sc.,P.Geo and Barry Devlin M.Sc., P. Geo, both of whom are Qualified Persons, and the report was previously filed on SEDAR.

These reserve and resource statements were classified following the definitions and guidelines of the Canadian Institute of Mining, Metallurgy and Petroleum CIM standards and definitions on Mineral Resources and Reserves and the guidelines of NI 43-101.

__________________

Can I offer you a drink? How about this expensive prostitute?

rock collector
rock collector's picture
Offline
Joined: 06/14/2011
Hat Tips: 2216
Posts: 178
1st Qtr - Endeavour Silver produces 1,072,491 oz Silver Up 19%

Note the metal held in inventory. 
April 11, 2012 Endeavour Silver Reports Record Production in First Quarter, 2012; Produces 1,072,491 oz Silver (Up 19%) and 6,321 oz Gold (Up 26%). 
Production Highlights of First Quarter 2012 (Compared to First Quarter 2011) 
•Silver production increased 19% to 1,072,491 oz 
•Gold production rose 26% to 6,321 oz 
•Silver and equivalents production escalated 21% to 1.39 million oz (at a 50:1 silver: gold ratio)
•Revenues jumped 39% to $49.0 million on 1,100,000 silver oz sold and 7,496 gold oz sold 
•Realized silver price fell less than 1% to $33.10 per oz sold (1.4% above average price for Q1/12)
•Realized gold price rose 20% to $1,686 per oz sold (equal to average spot price for Q1/12)
•Metal held in inventory at quarter-end included 925,100 oz silver and 3,927 oz gold 

Complete article at http://www.edrsilver.com/s/newsreleases.asp?ReportID=518025

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Topic locked
Syndicate contentComments for "Endeavour Silver......A Big 2012???"