* Q4 EPS $0.09 vs est $0.11
* Q4 rev up 18 pct
* Says cash costs to fall further this year
* Sees H1 silver production relatively flat
* Says looking to expand Guanajuato plant (Adds details, 2011 outlook)
March 22 (Reuters) - Endeavour Silver Corp's quarterly profit jumped 81 percent, but lagged market estimates, and the Canadian company said it expects further reduction in cash costs this year.
Silver production in the first two quarters of the year is expected to be relatively flat due to plant expansion programs, the company said in a statement.
Operating costs, such as labour, will continue to rise, it said.
The company, which owns the Guanacevi and Guanajuato mines in Mexico, expects to produce 3.7 million ounces of silver in 2011. In 2010 it produced 3.3 million ounces.
Endeavour, with a market value of C$733 million, is looking to expand the Guanajuato plant from 600 tonnes to 1,000 tonnes per day.
With silver prices at near 31-year highs of above $36 an ounce, Endeavour is looking to expand its Mexican ounces through drilling at Guanacevi and Guanajuato, as well as through exploration on other properties.
It sees gold production of 19,000 ounces in the year, up from 17,713 ounces produced in 2010.
The company expects 2011 revenue of $113.9 million, compared with $86.5 million in 2010. Endeavour forecast 2011 cash cost of less than $5.70 per ounce of silver produced.
In the fourth quarter, the company reported net income of $5.6 million, or 9 cents per share, compared with $3.1 million a year ago. Revenue rose 18 percent to $28.5 million.
Analysts on average were expecting earnings of 11 cents a share, according to Thomson Reuters I/B/E/S.
Earlier this month, Endeavour had said 2010 reserves at its Mexico mines were down 19 percent at 13.4 million ounces as it could not develop them as quickly as planned.
Other companies in the silver mining space, such as Pan American Silver , Hecla Mining Co and Coeur d'Alene Mines Corp , have seen their reserves and resources rise through 2010.
Silver production was up 15 percent to 895,931 ounces, while gold production rose 6 percent to 4,871 ounces in the latest fourth quarter.
Realized silver price averaged $24.16 per ounce sold, the company said. Cash operating costs fell 5 percent to $4.72 per ounce silver produced.
Shares of the company closed at C$9.45 on Monday on the Toronto Stock Exchange. They have gained nearly two-thirds in value since the company reported third-quarter results in November. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Unnikrishnan Nair)