Endeavour Silver Corp. (EDR.TO) | Investment Case

1. Company Snapshot

1.a. Company Description

Endeavour Silver Corp., a silver mining company, engages in the acquisition, exploration, development, extraction, processing, refining, and reclamation of mineral properties in Mexico and Chile.The company explores for gold and silver deposits, and precious metals.The company operates two producing silver-gold mines in Mexico, such as the Guanaceví mine in Durango; and the Bolañitos mine in Guanajuato.

It is also advancing two exploration and development projects in Mexico, including the Terronera property in Jalisco; and the Parral properties in Chihuahua.In addition, the company holds interests in three exploration projects in northern Chile comprising the Aida silver project, the Paloma gold project, and the Cerro Marquez copper-molybdenum gold project.The company was formerly known as Endeavour Gold Corp.

and changed its name to Endeavour Silver Corp.in September 2004.Endeavour Silver Corp.

was incorporated in 1981 and is headquartered in Vancouver, Canada.

Show Full description

1.b. Last Insights on EDR

Endeavour Silver Corp.'s recent performance was negatively driven by delivery delays at its Terronera project, which have impacted overall project productivity and commissioning timelines. The project experienced delivery delays during December for critical path structural steel components, leading to a 29% year-over-year decline in Q4 silver-equivalent production. Furthermore, the company's Guanacevi mine faced a trunnion breakdown in August, reducing operating capacity and affecting production results. These issues have likely hindered the company's ability to meet production targets and investor expectations.

1.c. Company Highlights

Last Price	12.01
Change Percentage	-1.31%
Open	12.41
Previous Close	12.17
Market Cap ( Millions)	3526
Volume	1721861
Year High	14.54
Year Low	4.21
M A 50	11.37
M A 200	7.77

FCF Yield	-6.26%
Dividend Yield	0.00%
ROE	-14.83%
Debt / Equity	25.82%
Net Debt / EBIDTA	-477.19%
Price To Book	4.65
Price Earnings Ratio	-35.3
Price To FCF	-15.96
Price To sales	10.27
EV / EBITDA	-148.66

2. Endeavour Silver Corp's Q3 2025 Earnings: A Transformative Quarter with Challenges

Endeavour Silver Corp reported revenue of $111 million for Q3 2025, a significant increase of 102% year-over-year, driven by the ramp-up of production at Terronera and Colpus. However, the company reported a net loss of $37.5 million, largely due to a derivative liability of $39 million resulting from the increase in gold prices. The actual EPS came out at -$0.01393, missing estimates of $0.0675. The company's cash costs rose to $18 per payable silver ounce, driven by higher royalties, profit participation, and third-party mineralized material costs.

Publication Date: Nov -20

                                    📋 Highlights
                                    Production & Revenue Surge:
                                                Q3 silver equivalent production hit 3,000,000 oz (+109% YoY), with revenue surging to $111,000,000 (+102% YoY).
Cost Increases:
                                                Cash costs rose to $18/oz (up from prior periods), while all-in sustaining costs climbed to $30.53/oz due to exploration and capital investments.
Terronera Commissioning:
                                                Achieved 90% of design capacity by October 2025, with stockpiles of 60,000 tons and grades aligning with resource models.
Derivative Loss Impact:
                                                Q3 net loss of $37,500,000 driven by a $39,000,000 derivative liability from gold price volatility (hedges entered in 2022).

                                

Operational Highlights

The company achieved a significant milestone with Terronera reaching commercial production on October 16, with an average throughput of 90% of design capacity during commissioning. Q3 production reached 3,000,000 silver equivalent ounces, a 109% increase from the prior year. The company's Culpa asset is on track to align with historical performance benchmarks, with Q3 production of 1,300,000 silver equivalent ounces.

Guidance and Outlook

Management expects to complete its evaluation of an expanded operation at Culpa late in the quarter. The company is investing in modernizing parts of the plant and surrounding infrastructure to support potential expansion. With Terronera now in commercial production, the company expects to generate positive free cash flow in Q4 or Q1 next year, driven by increased production and revenue.

Valuation and Metrics

Using the current valuation metrics, Endeavour Silver Corp's P/S Ratio stands at 9.05, indicating a relatively high revenue multiple. The EV/EBITDA ratio is -131.57, suggesting that the company's enterprise value is not justified by its current EBITDA. With analysts estimating revenue growth of 83.1% next year, the stock may be poised for further upside if the company can execute on its plans and achieve operational stability.

3. NewsRoom

Silver surges to record on Fed rate cut optimism

Nov -28

Source: proactiveinvestors.com

Tesla plans modest Robotaxi expansion in Austin

Nov -28

Source: proactiveinvestors.com

SEC reportedly investigating Jefferies over First Brands exposure

Nov -28

Source: proactiveinvestors.com

Endeavour Silver Announces Commercial Production at Terronera

Oct -16

Source: globenewswire.com

A Look at Endeavour Silver's (TSX:EDR) Valuation Following a Doubling in Share Price

Oct -09

Source:

First Majestic's Q3 Silver-Equivalent Production Jumps 39% Y/Y

Oct -09

Source:

Endeavour Silver Up 3.6% as Q3 Production Rises 88% Ahead of Commercial Production at Terronera

Oct -08

Source:

Endeavour Silver Produces 1,766,926 Oz Silver and 7,286 Oz Gold (3.0 Million Silver Equivalent Oz) in Q3 2025 and Provides an Update on Terronera

Oct -08

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Guanacevi

Expected Growth: 5.5%

Increasing silver prices, growing demand for silver in industrial applications, and Endeavour Silver Corp.'s expansion plans at Guanacevi mine are expected to drive growth in the silver mining segment.

Bolanitos

Expected Growth: 5.5%

Increasing silver prices, high-grade ore reserves, and efficient mining operations at Bolanitos drive growth, with a forecast CAGR of 5.5%.

7. Detailed Products

Silver

Endeavour Silver Corp. is a mid-tier precious metals mining company that operates three underground silver-gold mines in Mexico. Silver is one of the primary products of the company.

Gold

Gold is a by-product of the company's silver mining operations. Endeavour Silver Corp. produces gold at its three mines in Mexico.

Lead

Lead is a by-product of the company's silver mining operations. Endeavour Silver Corp. produces lead at its mines in Mexico.

Zinc

Zinc is a by-product of the company's silver mining operations. Endeavour Silver Corp. produces zinc at its mines in Mexico.

Exploration Services

Endeavour Silver Corp. offers exploration services to identify and develop new mineral deposits.

8. Endeavour Silver Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Endeavour Silver Corp. is medium due to the availability of alternative metals and mining companies.

Bargaining Power Of Customers

The bargaining power of customers for Endeavour Silver Corp. is low due to the company's strong market position and limited customer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Endeavour Silver Corp. is medium due to the company's dependence on a few key suppliers and the availability of alternative suppliers.

Threat Of New Entrants

The threat of new entrants for Endeavour Silver Corp. is high due to the relatively low barriers to entry in the mining industry and the attractiveness of the silver market.

Intensity Of Rivalry

The intensity of rivalry for Endeavour Silver Corp. is high due to the competitive nature of the mining industry and the presence of several established players.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	2.41%
Debt Cost	12.76%
Equity Weight	97.59%
Equity Cost	12.76%
WACC	12.76%
Leverage	2.47%

11. Quality Control: Endeavour Silver Corp. passed 4 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Gold Royalty

A-Score: 4.9/10

Value: 5.4

Growth: 7.2

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 3.3

1-Year Total Return ->

Metalla

A-Score: 4.7/10

Value: 6.6

Growth: 3.7

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 3.7

1-Year Total Return ->

Aris Mining

A-Score: 4.3/10

Value: 3.6

Growth: 2.9

Quality: 4.9

Yield: 1.0

Momentum: 10.0

Volatility: 3.7

1-Year Total Return ->

McEwen Mining

A-Score: 4.3/10

Value: 5.0

Growth: 6.1

Quality: 2.9

Yield: 0.0

Momentum: 9.0

Volatility: 2.7

1-Year Total Return ->

GoGold Resources

A-Score: 4.1/10

Value: 1.3

Growth: 3.7

Quality: 7.2

Yield: 0.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

Endeavour Silver

A-Score: 4.1/10

Value: 6.6

Growth: 3.2

Quality: 3.3

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

41.08%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

12.76%

Endeavour Silver Corp. - CA29258Y1034

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on EDR

1.c. Company Highlights

Stable Momentum

Medium Volatility

Average Yield

Revenues Beats

Average Growth

More Volatile

Earnings Miss

Average Quality

Lower Quality

Strong Momentum

Revenues Miss

Earnings Beats

2. Endeavour Silver Corp's Q3 2025 Earnings: A Transformative Quarter with Challenges

Operational Highlights

Guidance and Outlook

Valuation and Metrics

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.50%)

6. Segments

Guanacevi

Expected Growth: 5.5%

Bolanitos

Expected Growth: 5.5%

7. Detailed Products

Silver

Gold

Lead

Zinc

Exploration Services

8. Endeavour Silver Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Endeavour Silver Corp. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

12.01$

Current Price

12.01$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA