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Endeavour Silver Corp. Message Board

  • quailrunrd quailrunrd Jan 23, 2014 1:23 AM Flag

    EXK's latest announcement

    Perhaps EXK has decided to curtail improvements to increased production levels in retaliation to new Mexican mining taxes. Perhaps they have slowed down expansion due to lower silver prices (temporary in time). But EXK has just announced they are no longer a growth mining operation but obviously they are a solid mid-tier miner with lower than average production costs. Nevertheless, how will investors view this transition? Hopefully rising silver prices will drive stock price higher. But the company has told us not to expect higher production output which we have experienced over the last umpteen quarters.

    My take....rising silver prices will eventually result in ever increasing EXK silver output. EXK's stock price may level out on the short term but still maintains a great reputation for solid production and with any rise in silver prices will definitely propel EXK's stock price higher. Time will tell. GLTA

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    • I was just looking at the insider trades. Is everyone aware that Cooke dumped 80,000 shares fairly recent? Not exactly instilling confidence. I wouldn't be jumping up and down if I owned shares.

      Sentiment: Hold

      • 1 Reply to bitcoinisnotau
      • Jan 21/14 Jan 17/14 Cooke, Bradford Direct Ownership Common Shares 10 - Disposition in the public market -10,000 $4.75
        Jan 21/14 Jan 17/14 Cooke, Bradford Direct Ownership Common Shares 10 - Disposition in the public market -10,000 $4.65
        Jan 21/14 Jan 17/14 Cooke, Bradford Direct Ownership Common Shares 10 - Disposition in the public market -10,000 $4.55
        Jan 15/14 Jan 14/14 Cooke, Bradford Direct Ownership Common Shares 10 - Disposition in the public market -10,000 $4.45
        Jan 15/14 Jan 14/14 Cooke, Bradford Direct Ownership Common Shares 10 - Disposition in the public market -10,000 $4.35
        Jan 14/14 Jan 10/14 Cooke, Bradford Direct Ownership Common Shares 10 - Disposition in the public market -30,000 $4.15

    • Not a bad idea by EXK.
      Mine the most production and efficient veins that allow a profitability that supports minimal exploration for the future.
      They were facing the difficulty of matching huge production increases with lower silver prices.
      Then, selling that silver at break even at best....in effect...working for the other guy.
      Tighten production, along with others and force a shortage of silver (I hope)

    • I think it's too pessimistic to say that EXK is no longer a growth mining operation. If you believe that long term silver prices will eventually rise significantly compared to current prices, but that the picture for the next year or so is continued depressed prices, it makes sense to keep it in the ground for now. I posted earlier this month that I interpreted EXK's decision to sell all of its inventory in Q4 as indicative of a conclusion by EXK that silver prices for at least the next 6-12 months will remain depressed. I see this latest decision as consistent with that interpretation. Thus, I'm more inclined to agree with your sentiment that "Perhaps they have slowed down expansion due to lower silver prices (temporary in time)." And that's a decision that can be quickly (relatively) reversed if prices skyrocket.

      That decision may also be helpful with respect to the mining tax. Presumably (I have no idea) there are forces pushing to repeal or reduce it. Pointing to the fact that miners are cutting back production is one way of supporting those forces. And if you believe that a repeal/reduction is likely, it again seems to make sense to keep the silver in the ground until that happens.

      One statement in the latest announcement that suggests that EXK remains a growth mining operation was the statement that it would be looking for another mine acquisition given the opportunistic prices for acquisition. That's the model EXK has followed for dynamic growth in the past (and executed brilliantly). And I think it's a far better growth strategy given current prices -- acquire an underperforming mine based upon depressed value of silver in the ground, and turn it around -- hopefully timing the turnaround for when silver prices are rising.

      Sentiment: Buy

      • 1 Reply to simpsonsez
      • Higher prices will only help. A wait and see approach. These actions mentioned about non-exploration in themselves can be catalysts for higher prices. I don't believe we will see depressed prices for the next year. They aren't calling me for predictions, but It seems this is more of a reaction than it is a decision. The producers cannot predict how the prices will go. I think you make changes based on your company's current financial outlook with prices as is and move forward. That is all any of them can really do. They have taxation to deal with also and perhaps they are just being a little more cautious until the realize the new bottom line...

 
EXK
5.57-0.04(-0.71%)Aug 29 4:05 PMEDT

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