Thursday, November 29, 2018

Endeavour Silver - Number crunching

A nice simple tidbit for silver bugs

Endeavour Silver Market Cap = $240M

El Cubo acquisition costs = $250M (link)

It's a hell of a mine...

Or as Bad Crooke put it:


  1. Interesting bit of scuttlebutt lately. David Schmidt is one of bad doggies named by the BCSC -'The BridgeMark Group'. He is director in Otto Man featured Prize Mining - PRZ.v and Mike McPhie. Short story is these criminals misused the 'consultant' exemption to flip off paper.

    So now we have our answer about why chit PRZ.v has gone straight down after an exchange 'buy-in'. The 'financing' never really happened at all its appearing. Also on the BoD is Bob Archer, another dorkus of dubious distinction. ALL should fukkin resign. K9s.

  2. But it should ne mentioned that gold was $1,600/oz and silver $28/oz, so id we put those numbers on their 9-month production for 2018 we'll get about $80M in revenue and ~$35M or ~$40M of Cash flow.

    1. I don't understand the point that you are making? Yes the price was high due to high metal prices, but on your reasoning they bought the property for the equivalent of 6.25 years of free cash-flow (not including a 7% discount rate).

      Compare this to what most companies put in a PEA on a project where normally the payback period for high-grade underground mines (generally low CAPEX for <2000 tpd operation) is between 1-4 years.

    2. I didn't say it's a good acquisition, What I said is that it looks less bad when taking into consideration that free cash flow based on 2011 reserves was something ike $500M

    3. It is stupid to buy a mine based on a valuation at elevated metal prices.

  3. As per their latest PR, Endeavour is halving production and labour at El Cubo. Always thought El Cubo was the weakest and the most expensive mine in Endeavour's portfolio.

    El Compas, Terronera and Parral, on the other hand look promising