67 WALL STREET, New York - December 19, 2011 - The Wall Street Transcript has just published its Gold and Precious Metals Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Investment and Central Bank Demand - Dividends Dependent on Gold Prices - Gold Producers vs. Gold ETF - Midcap and Small-Cap Consolidation Activity
Companies include: Endeavour Silver (EXK); Alacer (ASR.TO); Apogee Silver (APE.V); Barrick (ABX); Eldorado (EGO); and many more.
In the following brief excerpt from the Gold And Precious Metals Report, expert analysts discuss the outlook for the sector and for investors.
Bradford Cooke, Chairman and Chief Executive Officer of Endeavour Silver Corp., is a Professional Geologist with 34 years experience in the mining industry, specializing in the financing, acquisition, exploration and development of mineral deposits. In 2003, he formed Endeavour Silver for the purpose of acquiring advanced high-grade silver/gold projects in Mexico. In 1988, Mr. Cooke launched Canarc Resource Corp., a junior gold exploration and mining company focused on exploring and developing prospective gold properties in North, Central and South America. From 1983 to1987, he owned and operated Cooke Geological Consultants Ltd., discovering several high-grade gold vein deposits for clients in British Columbia. From 1976 to 1982, Mr. Cooke worked as Project Geologist managing mineral exploration programs for uranium, base metals and precious metals across Canada with Noranda Mines, Shell Minerals and Chevron Minerals. He has a B.Sc. geology degree with honors from Queen's University in Ontario, Canada, and an M.Sc. geology degree from The University of British Columbia.
TWST: Let's begin with a brief overview of Endeavour Silver Corp.
Mr. Cooke: Endeavour Silver (EXK) is a company founded in 2002, and when we went looking for strategic silver assets in Mexico in 2003, it was basically two guys with an idea, about $300,000 in working capital and $0.10 stock - the company had no assets at that time.
Eight years later, today, we have growing concerns, obviously: a company with two large and growing silver-mining operations in Mexico, over 850 employees, 400 contractors, working capital is north of $150 million and a stock price of $10, $11, with a market cap hovering around $1 billion. So clearly, whatever we are doing seems to be working and it's been very accretive over the years for our stockholders. And we are just looking to do more of what we've already done in order to continue the growth profile of the company.
TWST: Would you describe the Guanacevi Mine in Durango State and the Guanajuato properties where you are mining the silver?
Mr. Cooke: Our first and largest operation was acquired in 2004 in the famous old district of Guanacevi. In that district, what we found was a small historic mine, the Santa Cruz mine that has been exhausted of ore, and so the locals who had the mine and the plant put it up for sale. What we recognized was that this famous old district of Guanacevi had a fabulous history of mostly small-scale, high-grade silver and gold production, but very little in the way of modern exploration to look for new or buried ore bodies. And so we felt that if there is a mine for sale because they don't have ore, but they never actually are trying to look for ore, then that was a more of an opportunity than a risk.
We took on the project at that time with a view that we could very quickly find new ore, which we did. We made our first discovery three weeks after consummating the contract to acquire the mine in 2004. Since that time, we've made five material new silver/gold ore bodies discoveries since 2004, and that allowed us to open up four new mines to slowly but surely fill an expanding plant. Every year, our strategy is to look at either our Guanajuato operation or Guanacevi operation and decide which one is ready for expansion. We bring the money and the expertise needed to find new ore bodies, open new mines and expand the operations every year.
TWST: Which of these two mines produces the maximum amount of silver? What is your estimated annual silver production from these mines?
Mr. Cooke: Our forecast this year is to produce 3.7 million ounces of silver and about 20,000 ounces of gold. Of the 3.7 million ounces of silver, 2.6 will come from Guanacevi and 1.1 will come from Guanajuato. But just as Guanacevi was our fastest-growing asset in recent years, this year and next year, Guanajuato is presently our fastest-growing asset. This year, for instance, we have undertaken a 60% expansion of the operation from 600 tons per day to 1,000 tons per day. But we actually overbuilt the plant to 1,600 tons per day, implying that there is another 60% expansion coming next year.
The Wall Street Transcript is a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
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