In a report released today, Heiko Ihle from H.C. Wainwright reiterated a Buy rating on Endeavour Silver (EXK – Research Report), with a price target of $6.25.
Heiko Ihle has given his Buy rating due to a combination of factors including Endeavour Silver’s significant year-over-year revenue growth and cost management. In the first quarter of 2024, the company saw a 15% increase in revenue, largely driven by a boost in both silver and gold sales volumes. Additionally, the achievement of higher realized prices for gold provided a substantial revenue enhancement. Despite facing increased production costs, the company managed to keep its cash costs below the projected guidance, which is a positive sign of efficient operational control.
Furthermore, the endorsement for a Buy rating is supported by the financial modeling Ihle conducted, taking into account the development of the Terronera project and the application of slightly adjusted net asset value (NAV) multiples. The analysis remains grounded in discounted cash flow (DCF) estimates for Endeavour’s key mining projects with discount rates that reflect comparable assets and jurisdictional risks. The addition of the company’s liquid assets to the valuation, minus its debt, results in a considerable NAV per share, which underpins the rating and a price target of $6.25 per share.
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Endeavour Silver (EXK) Company Description:
Endeavour Silver Corp. operates as a mineral company. It engages in the evaluation, acquisition, exploration, development and exploitation of precious metal properties in Mexico and Chile. The firm’s projects include Terronera property in Jalisco, El Compas property and La Plata plant in Zacatecas, and Parral property in Chihuahua. The company was founded by Bradford James Cooke on March 11, 1981 and is headquartered in Vancouver, Canada.
