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Endeavour Silver (EXK) Shares Up Since Q4 Earnings Miss
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Endeavour Silver Corporation (EXK - Free Report) shares have gained 2.7% since the release of its fourth-quarter 2023 earnings on Mar 11, 2024. The company reported adjusted earnings per share of 2 cents for the quarter, which marked a 50% year-over-year slump. This decline in earnings was attributed to reduced sales volume and an increase in operating costs.
The company's shares experienced an uptick due to its initiatives to enhance both mine and mill productivity levels at Guanacevi, surpassing planned targets. Furthermore, the anticipation of the Terronera project commencing production in late 2024 has generated optimism. This project is expected to lay the foundation for significant production growth and margin expansion potential.
Including one-time items, EXK reported earnings per share of 1 cent in the fourth quarter of 2023 compared with 4 cents in the fourth quarter of 2022. Endeavour Silver’s revenues plunged 38% year over year to $51 million from $82 million in the fourth quarter of 2022. The decline was mainly due to lower gold and silver sales during the quarter, which was somewhat offset by higher prices.
EXK sold 1.33 million ounces of silver in the fourth quarter (down 53% year over year) and 9,417 ounces of gold (down 20% year over year). The average realized silver price was $23.78 per ounce in the quarter, up 9% year over year. The average realized gold price increased 15% year over year to $2,051 per ounce in the quarter.
Operational Update
Endeavour Silver recorded cash costs per silver ounce of $12.54, up 8% from the year-ago quarter. Total production costs per ounce were up 17% year over year to $17.66. All-in-sustaining costs of $21.48 per silver equivalent ounce marked an 11% rise from the year-ago quarter. The company has been witnessing increased labor, power and consumables costs primarily driven by inflationary pressure. Costs were significantly impacted by lower production and a strengthened Mexican Peso.
EXK reported a mine-operating profit of $5.4 million in the quarter under review compared with $21.7 million in the fourth quarter of 2022. EBITDA was $8.3 million, reflecting a 63% slump from $22.7 million in the year-ago quarter.
Financial Position
Endeavour Silver ended 2023 with $35.3 million cash in hand, down from $83.4 million held at the end of 2022. Cash generated from operating activities was around $11.8 million in 2023 compared with $55 million in 2022.
The decline in cash levels mainly reflected the spending on development activities at Terronera. During the fourth quarter of 2023, Endeavor Silver raised gross proceeds of $39.3 million through issuances to fund the activities at Terronera. The company stated that the project’s progress reached 43% and is on track for commissioning in the fourth quarter of 2024.
2023 Results
EXK’s adjusted earnings were 1 cent per share in 2023, marking a 75% decline from 4 cents in 2022. Including one-time items, the company reported earnings per share of 3 cents in 2023, flat compared with 2022. Earnings were impacted by inflationary pressures and foreign exchange. However higher realized metal prices negated some of the impact.
Revenues declined 2.2% year over year to $205 million. The company sold 5,669,760 ounces of silver (down 12% year over year) and 37,186 ounces of gold (down 4%). Average realized prices of $23.76 per oz of silver were up 8% year over year. The average realized price of gold was $1,968 per ounce, up 9% from 2022.
Production Numbers
In 2023, total production was 8.7 million silver equivalent ounces, consisting of 5.67 million ounces of silver and 37,858 ounces of gold. Compared with the previous year, the production of silver equivalent ounces experienced a 3% decline, as a 1% increase in gold production was counteracted by a 5% reduction in silver production.
The company's earlier stated guidance for the year indicated that silver equivalent production was estimated to range between 8.6 million ounces and 9.5 million ounces. Silver production was anticipated to fall within the range of 5.7 to 6.3 million ounces, while gold production was forecasted to be between 36,000 ounces and 40,000 ounces. Notably, 2023 marked the company's third consecutive year of meeting or surpassing production guidance.
Price Performance
Shares of EXK have fallen 37.9% over the past year compared with the industry's 9.1% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Endeavour Silver currently carries a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 45% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $4.00 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 64% in a year.
The Zacks Consensus Estimate for Hawkins’ fiscal 2024 earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The consensus estimate for HWKN’s current-year earnings has been revised 4.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 30.6%. The company’s shares have rallied 84% in the past year.
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Endeavour Silver (EXK) Shares Up Since Q4 Earnings Miss
Endeavour Silver Corporation (EXK - Free Report) shares have gained 2.7% since the release of its fourth-quarter 2023 earnings on Mar 11, 2024. The company reported adjusted earnings per share of 2 cents for the quarter, which marked a 50% year-over-year slump. This decline in earnings was attributed to reduced sales volume and an increase in operating costs.
The company's shares experienced an uptick due to its initiatives to enhance both mine and mill productivity levels at Guanacevi, surpassing planned targets. Furthermore, the anticipation of the Terronera project commencing production in late 2024 has generated optimism. This project is expected to lay the foundation for significant production growth and margin expansion potential.
Including one-time items, EXK reported earnings per share of 1 cent in the fourth quarter of 2023 compared with 4 cents in the fourth quarter of 2022.
Endeavour Silver’s revenues plunged 38% year over year to $51 million from $82 million in the fourth quarter of 2022. The decline was mainly due to lower gold and silver sales during the quarter, which was somewhat offset by higher prices.
EXK sold 1.33 million ounces of silver in the fourth quarter (down 53% year over year) and 9,417 ounces of gold (down 20% year over year).
The average realized silver price was $23.78 per ounce in the quarter, up 9% year over year. The average realized gold price increased 15% year over year to $2,051 per ounce in the quarter.
Operational Update
Endeavour Silver recorded cash costs per silver ounce of $12.54, up 8% from the year-ago quarter. Total production costs per ounce were up 17% year over year to $17.66. All-in-sustaining costs of $21.48 per silver equivalent ounce marked an 11% rise from the year-ago quarter. The company has been witnessing increased labor, power and consumables costs primarily driven by inflationary pressure. Costs were significantly impacted by lower production and a strengthened Mexican Peso.
EXK reported a mine-operating profit of $5.4 million in the quarter under review compared with $21.7 million in the fourth quarter of 2022. EBITDA was $8.3 million, reflecting a 63% slump from $22.7 million in the year-ago quarter.
Financial Position
Endeavour Silver ended 2023 with $35.3 million cash in hand, down from $83.4 million held at the end of 2022. Cash generated from operating activities was around $11.8 million in 2023 compared with $55 million in 2022.
The decline in cash levels mainly reflected the spending on development activities at Terronera. During the fourth quarter of 2023, Endeavor Silver raised gross proceeds of $39.3 million through issuances to fund the activities at Terronera. The company stated that the project’s progress reached 43% and is on track for commissioning in the fourth quarter of 2024.
2023 Results
EXK’s adjusted earnings were 1 cent per share in 2023, marking a 75% decline from 4 cents in 2022. Including one-time items, the company reported earnings per share of 3 cents in 2023, flat compared with 2022. Earnings were impacted by inflationary pressures and foreign exchange. However higher realized metal prices negated some of the impact.
Revenues declined 2.2% year over year to $205 million. The company sold 5,669,760 ounces of silver (down 12% year over year) and 37,186 ounces of gold (down 4%). Average realized prices of $23.76 per oz of silver were up 8% year over year. The average realized price of gold was $1,968 per ounce, up 9% from 2022.
Production Numbers
In 2023, total production was 8.7 million silver equivalent ounces, consisting of 5.67 million ounces of silver and 37,858 ounces of gold. Compared with the previous year, the production of silver equivalent ounces experienced a 3% decline, as a 1% increase in gold production was counteracted by a 5% reduction in silver production.
The company's earlier stated guidance for the year indicated that silver equivalent production was estimated to range between 8.6 million ounces and 9.5 million ounces. Silver production was anticipated to fall within the range of 5.7 to 6.3 million ounces, while gold production was forecasted to be between 36,000 ounces and 40,000 ounces. Notably, 2023 marked the company's third consecutive year of meeting or surpassing production guidance.
Price Performance
Shares of EXK have fallen 37.9% over the past year compared with the industry's 9.1% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Endeavour Silver currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Ecolab Inc. (ECL - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and Hawkins, Inc. (HWKN - Free Report) . ECL and CRS sport a Zacks Rank #1 (Strong Buy) at present, and HWKN has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 45% in a year.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $4.00 per share. The consensus estimate for 2024 earnings has moved 1% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 64% in a year.
The Zacks Consensus Estimate for Hawkins’ fiscal 2024 earnings is pegged at $3.61 per share, indicating a year-over-year rise of 26.2%. The consensus estimate for HWKN’s current-year earnings has been revised 4.3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 30.6%. The company’s shares have rallied 84% in the past year.