zaterdag 9 juni 2012

Peter Schiff Interviews CEO Bradford Cooke (Endeavour Silver) at the Euro Pacific Global Investor Conference (31-May-2012)



Peter Schiff Interviews Brad Cooke of Endeavour Silver at the Euro Pacific Global Investor Conference:

The highlights of that interview are summarized as follows. According to Bradford Cooke, the company has been growing reserves over the years, and production has almost tripled since the economic crisis hit in 2008. In February 2009, Endeavour Silver went to the market through Euro Pacific Capital (Peter Schiff's company), and equity dilution was less than 10%. The company has also built its employees over the years, growing from a small company to a mid tier company with 2700 employees, including contractors. Working capital is $US 175 million at this time. Last year, cash costs were $US 5/ounce.

By expanding its gold production, the company can keep bringing costs down. Their most interesting project is the recently acquired El Cubo mine in Mexico, which is the next leg upwards in this growth story. The P/E is around 10 right now ($US 20 million earnings per quarter) and Price/Cashflow is around 6, which is extremely inexpensive for a growing silver mine. At these low silver prices, they will store their bullion for sale later on, at higher prices. So they can time their selling to the conditions in the silver market. The best thing is that they store their bullion for free at their warehouses. Another positive aspect is that Endeavour silver is one of the few silver miners that possesses a whole process flow from mining to refined bullion, which is a huge advantage against other silver miners.

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