Endeavour Silver profit up on higher output, prices

Tue May 8, 2012 8:50am EDT
 
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(Reuters) - Canada's Endeavour Silver Corp EDR.TO reported a 35 percent rise in adjusted quarterly profit on higher production and robust bullion prices.

The company, which owns and operates the Guanacevi and the Guanajuato mines in Mexico, said it expects second-quarter silver production to remain flat and does not expect cash costs to rise sequentially.

Net profit for the first quarter jumped to $19.8 million, or 23 cents per share, from $485,000, or 1 cent per share, a year ago.

Endeavour Silver's adjusted profit rose to $19.6 million, or 22 cents per share, from $14.5 million, or 18 cents per share, in the year-ago period.

Revenue increased 39 percent to $49 million.

Silver production rose 19 percent to 1.07 million ounces, while gold output increased 26 percent to 6,321 ounces.

Silver prices climbed up about 2 percent to average $32.6 per ounce in the January-March quarter.

The Vancouver, British Columbia-based company said it is on track to meet its production forecast of 4.3 million ounces of silver and 26,000 ounces of gold for the year.

Shares of the company, which has a market value of about C$738 million, closed at C$8.17 on Monday on the Toronto Stock Exchange.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Maju Samuel)