Endeavour Silver Reports Q2 2012 Financial Results; Arranges $75 M Revolving Line of Credit With Scotiabank

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Endeavour Silver Corp. ( EDR )( EXK )(FRANKFURT:EJD) announced today its financial and operating results and unaudited condensed consolidated interim financial statements for the Second Quarter, 2012.

Highlights of Second Quarter, 2012 (Compared to Q2, 2011)

-Net earnings decreased 56% to $7.5 million ($0.09 per share) compared to $17.0 million

- Adjusted earnings fell 44% to $5.9 million ($0.06 per share) compared to $10.6 million

-Operating cash-flow before working capital changes dipped 9% to $16.9 million

-Mine operating cash-flow increased 2% to $24.1 million

- Revenues rose 11% to $40.4 million on sales of 1,075,000 oz silver and 5,650 oz gold

- Working capital improved 19% to $159.0 million, up from $133.6 million

- Silver production up 22% to 1,040,026 oz

- Gold production up 59% to 7,695 oz

- Silver equivalents production up 31% to 1.46 million oz (at a 55:1 silver:gold ratio)

- Realized silver price fell 22% to $29.21 per oz sold (consistent with average spot price for Q2)

- Realized gold price up 5% to $1,599 per oz sold (consistent with average spot price for Q2)

- Metal held in inventory at period-end included 896,501 oz silver and 6,124 oz gold compared to 177,935 oz silver and 2,291 oz gold

Bank Line of Credit

Endeavour has entered into a $75 million secured revolving credit facility with Scotiabank to enhance its access to cash, which should allow management to remain acquisitive while metal and stock prices are depressed. The Facility's interest rate ranges from 2.75% to 4.25% over LIBOR based on the Company's net debt to EBITDA ratio with a commitment fee for undrawn amounts. The El Cubo mine is expected to generate significant additional operating cash-flow over the next 6 months which should enable the Company to continue funding its capital and exploration projects from operating cash flow.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: EDR , EXK

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