From Toronto's Globe and Mail today With construction of its Terronera silver-gold mine in Mexico nearing completion, US$73-million in financing secured and “momentum building” around the advancement of its Pitarrilla development, Ventum Capital analyst Alex Terentiew said he’s “encouraged” by Endeavour Silver Corp.’s (
) pace of progress.
“We remain optimistic about commencing commissioning activities at Terronera near year-end, marking a pivotal stage of growth and the founding of a new cornerstone asset within Endeavour’s portfolio,” he said. “We reiterate our thesis that Terronera will transform Endeavour into a lower-cost, higher-margin silver-focused producer, poised to attract a broader base of institutional investors. In 2025, we anticipate its Pitarrilla project to garner more attention, continuing the momentum started with Terronera and drawing more investor interest to the evolving company.”
In a research note released upon his resumption of coverage folowing the close of its bought deal equity financing, Mr. Terentiew sees the Vancouver-based company in a “final sprint” at Terronera while expecting the focus to shift to Pitarrila in 2025.
“As of September 30, 2024, Terronera was 77 per cent complete, with commissioning activities expected to commence within the next few weeks,” he said. “As some components are not essential for start-up (tailings storage facility lifts, completion of the LNG plant), we expect commissioning to begin before full completion, with Q1/25 likely to represent a ramp-up quarter and Q2/25 potentially the first full quarter of commercial production. Our estimates remain based on a more conservative, three-quarters ramp-up period, with full run rates achieved in Q4/25. We anticipate Endeavour transitioning to positive free cash flow at the end of Q1/25.”
“Endeavour is now well positioned to use a portion of the US$73-million financing to advance Pitarrilla, a project that we believe is under-appreciated and under-valued by the broader market. With surplus cash now on hand, we anticipate exploration and development at Pitarrilla may accelerate, taking the momentum and experience gained from Terronera and applying it to the Company’s next leg of growth. As a reminder from our note on progress at Pitarrilla, our estimates are based on the 2009 PFS, focusing on the underground sulphide resources only. A new economic study (Feasibility Study) is underway and expected by year-end 2025, which we expect could be a catalyst to support a higher valuation for the new project.”
The analyst reaffirmed a “buy” rating and $9 target for Endeavour shares. The current average is $8.55.
Endeavour Silver Corp
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