On Thursday, H.C. Wainwright maintained a Buy rating on Endeavour Silver Corp (NYSE:EXK) and increased the price target to $6.50, up from the previous $6.25. This adjustment follows Endeavour Silver's recent announcement on July 24 regarding the advancement of its Terronera Project in Jalisco State, Mexico.
The update highlighted that construction of the Upper Platform Plant is now 88% complete, with the concrete and structural steelwork for the crushing, coarse-ore storage, grinding, flotation, and thickening areas fully finished. Endeavour Silver has also made strides in mine development, completing 1,270 meters of underground development, which brings the total development at the site to nearly 4,500 meters.
The company has invested $204.0 million in the project to date, which is a significant portion of the total commitments of $260.0 million and 96% of the combined capital budget of $271.0 million. Additionally, the Tailings Storage Facility (TSF) embankment key trench excavation is more than 95% finished, and the Lower Platform area is about halfway completed.
Endeavour Silver's management has emphasized that safety is a top priority, especially as the workforce at the site now includes over 190 employees and 700 contractors. As part of their commitment to safety, the company has introduced additional rescue brigade members and new mine refuge stations.
The Terronera Project's progress and the company's commitment to safety and development have led H.C. Wainwright to reiterate its Buy rating and raise the price target for Endeavour Silver's stock.
In other recent news, Endeavour Silver Corp has been in the spotlight with its latest financial and operational developments. The company reported a 15% year-over-year increase in revenues to $64 million in the first quarter of 2024, despite a reported net loss of $1.2 million. Endeavour Silver's Q1 silver equivalent production totaled 2.3 million ounces, aligning with its 2024 production guidance of 8.1 to 8.8 million ounces.
Endeavour Silver's production reached 4.4 million silver equivalent ounces in the first half of 2024, hitting the upper end of the management's projected production guidance. The company's focus remains on the development of the Terronera project, on track for commissioning in the fourth quarter of 2024, with production anticipated to commence in early 2025.
The Terronera project has also been highlighted by BMO Capital, which recently reinstated coverage on the company, assigning an Outperform rating. BMO Capital anticipates that the Terronera project, on schedule and fully funded, will nearly double Endeavour Silver's production profile in 2025.
H.C. Wainwright also maintains its Buy rating on Endeavour Silver, despite a 5% year-over-year decrease in the company's production to 2.2 million silver equivalent ounces, attributed to a 12% drop in silver output and a 7% increase in gold production.
InvestingPro Insights
Following the positive outlook from H.C. Wainwright on Endeavour Silver Corp (NYSE:EXK), InvestingPro data and tips provide further insights into the company's financial health and stock performance. Endeavour Silver's market capitalization stands at approximately $1.11 billion, reflecting investor confidence in the company's growth prospects. Notably, the stock has exhibited significant volatility, which could be an important consideration for potential investors.
InvestingPro Tips suggest that despite not being profitable over the last twelve months, analysts are optimistic about the company's future, predicting that net income is expected to grow this year. Additionally, the company's liquid assets surpass its short-term obligations, indicating a solid liquidity position to support ongoing operations and investment in projects like Terronera.
InvestingPro Data highlights a notable revenue growth of 14.9% in Q1 2024, alongside a 28.77% increase in the stock's one-month total return, and an impressive 172.29% six-month total return. These figures underscore the company's recent strong performance in the market, which may align with H.C. Wainwright's raised price target.
For those interested in deeper analysis, there are over ten additional InvestingPro Tips available at https://www.investing.com/pro/EXK. To access these tips and more detailed financial data, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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