Endeavour Silver Corp (NYSE:EXK) Strategies On Low Silver Production


Dallas, Texas 03/19/2014 (FINANCIALSTRENDS) –  Endeavour Silver Corp (NYSE:EXK) the top-ranking silver producer, it appears is worried about the silver prices for the current fiscal. This is evident from the spate of news reports generating from around Endeavour executives. This time the company is likely to sustain the silver production it is evident from new tabs being indicated from this silver mining company. Apparently the target for 2014 production is estimated between 6.5 million and 6.9 million ounces of silver.

Endeavour Silver Corp(NYSE:EXK) strategy to hold water

As news of the silver miner’s strategy comes to light, nearly every analyst and investor has a view about in-line silver production for the year. Detractors of Endeavour’s current line of thought, suggest that the company can well increase the cash flow if were to increase production, given the current drop in silver prices. The key to the company’s strategy holding water will be the San Sebastian project. As the Mexican government chose to increase the mining tax to 7.5% for miners in the country, Endeavor Silver too is affected, considering it has over three operating mines. At the current rate of taxes, this would translate to over $3 million on the price of silver currently trading.

For Endeavor Silver, the increase in taxes holds double trouble. The company in addition to the three operating mines also has many of the projects in various stages of development located in Mexico.  The most likely impact of the new taxing rules is the San Sebastian mine, as it is nearly completed and can commence production. The current known stocks of silver resources, this mine may hold is estimated to be 11.4 million ounces. The licensing processing and permits are already in place, with Endeavor having applied for it, in 2013 and the approval likely to be returned by December of 2014.

Now, the ball lies in Endeavour Silver Corp(NYSE:EXK) court, as post grant of permit, the company will have to decide whether it can commence development of the project.

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