Old And Silver Mining Renew, These Ordinary Are Fixed Cheap

Old And Silver Mining Renew, These Ordinary Are Fixed Cheap

Last year I wrote about a bunch of stocks that I thought would do well now that the five-year bear market in precious metals has come to a close. Most of those stocks have done really well, especially Wesdome Gold and Silvercorp. (OTCPK:SVMLF). But I believe some of these stocks are still great bargains, yet still undervalued by the market.I want to reiterate that I believe that precious metals are in the early stages of a multi-year bull market, and that some of these stocks will not start rising rapidly until year 3 or 4 of this bull market.The first stock I am going to talk about is Endeavour Silver (NYSE:EXK). You can read my article from last year here, but to follow up on this stock I want to point out a couple of updates. In its most recent results, Endeavour Silver reported a year over year (YoY) decline in revenue of 32 percent. Silver production declined by 37 percent, and gold production declined by 26 percent. What the market is ignoring is the drop-in costs, were cash costs dropped to $6.78 per ounce of silver, which equates to a decrease of 19 percent, and it's all in sustaining costs were reported to be at $12.43 per ounce of silver, which is a drop from last year. The market is also ignoring the significant reduction in debt of $13 million dollars. This was due to an equity dilution, but I believe that there won't be another equity financing for the next couple of years due to its balance sheet strength. But another reason I see opportunity is because the market is factoring in a decrease and flat production, but I see growth. If you look at their presentation, you can see that on slide five that they have three developmental mines positioned for growth. One is the El Compass Mine for 2017, another is the Terronera mine for 2018, and the last one is the Parral mine for 2019. What I like about this company is that you can see on slide 9 that this companies production declines during bear markets, and increases during bull markets, and that type of management savvy is what I want to invest it.