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.
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.