Shares of Endeavour Silver Corp (NYSE: EXK) fell as much as 16.3% in trading Thursday after reporting second-quarter earnings. At 2:50 p.m. EDT, shares were down 14.2% on the day.
Revenue fell 14%, to $27.2 million, and the company swung from a $1.7 million profit to a loss of $16,000, or breakeven per share. Analysts were expecting revenue of $35.6 million and earnings of $0.02 per share.
Silver production plunged 26% in the quarter, to 1.14 million ounces, and gold production was down 17%, to 13,058 ounces. Management blamed power outages and a narrower resource vein than modeled for the falling production.
Production is going to be very hampered by the smaller-than-expected vein, causing management to lower their expected production at Guanacevi. Production for the second half of the year is expected to be 1.0 million to 1.1 million silver ounces and 2,100 to 2,200 gold ounces, meaning full-year guidance is down to 2.0 million to 2.1 million ounces of silver and 4,400 to 4,500 ounces of gold, both down over 10% from previous estimates for the year.
Given the lower resources available, I don't see a reason to be jumping into shares today.
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