Endeavour Silver Plunges 12% as Guanacevi Mill Outage Triggers CIBC Downgrade
EXK sits 40% above its 52-week low of $6.6.
Summary
Endeavour Silver shares fell 12.1% after CIBC downgraded the stock to Neutral from Outperform, cutting its price target to C$20 from C$25. The downgrade follows the company's disclosure that the primary ball mill at its Guanacevi mine, its highest-grade silver mine, will be offline for about three weeks due to a mechanical issue requiring replacement of the mill head and trunnion. This is the second trunnion replacement at Guanacevi in less than two years, though management expects a shorter repair timeline than the 15-week outage in H2 2024 because parts are available on site. The analyst now forecasts full-year production of 8.28M oz silver and 44.7K oz gold, below prior guidance of 8.3M-8.9M oz silver and 46K-48K oz gold, and notes that combined with the earlier Terronera blockade, the company may struggle to meet full-year guidance. H1 2026 all-in sustaining costs were raised to $36.96/oz versus full-year guidance of $27-$28/oz, putting cost guidance at risk. The market is repricing the stock on the downgrade and the increased uncertainty around production and costs.
At the time of this announcement, EXK was trading at $9.26 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $2.7B. The 52-week trading range was $6.60 to $15.15. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Seeking Alpha.