Source: Streetwise Reports 07/15/2020
The key numbers and the timeline for this Mexican asset of Endeavour Silver are addressed in this ROTH Capital Partners report.
In a July 14 research note, ROTH Capital Partners analyst Joe Reagor reported that Endeavour Silver Corp. (EDR:TSX; EXK:NYSE; EJD:FSE) released a summary of the updated prefeasibility study of its Terronera silver-gold project and that it “shows robust economics’ and demonstrates improvement over the previous one from July 2018.
Reagor relayed that the new report outlines a base case net present value of $137 million and an after-tax internal rate of return of 30% for this project in Jalisco, Mexico. Initial capex is an estimated $99 million.
Next for Terronera is a feasibility study, which Endeavour Silver intends to pursue.
Reagor pointed out that startup at the project may get pushed back by about a half-year, to H1/23 versus H2/22, when ROTH had expected it to happen. This is based on the assumption that the Vancouver-based company would need about a year to complete the feasibility study then another 18 months to get financing and develop the mine. Also, the analyst noted that COVID-19 and other factors may cause unexpected delays.
“The company’s timeline justifies moving the startup to early 2023 in our model,” Reagor noted and added that ROTH will wait to update its model until Endeavour Silver files the full prefeasibility study.
ROTH has a Buy rating and a US$3 per share price target on Endeavour Silver, the stock of which is trading today at about US$2.80 per share.
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Disclosures from ROTH Capital Partners, Endeavour Silver Corp., Flash Note, July 14, 2020
Regulation Analyst Certification (“Reg AC”): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
ROTH makes a market in shares of Endeavour Silver Corp. and as such, buys and sells from customers on a principal basis.
Shares of Endeavour Silver Corp. may be subject to the Securities and Exchange Commission’s Penny Stock Rules, which may set forth sales practice requirements for certain low-priced securities.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.
( Companies Mentioned: EDR:TSX; EXK:NYSE; EJD:FSE,