The spot price of silver enjoyed a massive run-up in the late summer but retreated late last week. Gold also encountered some resistance even in the face of a cooler-than-expected U.S. jobs report.
Endeavour Silver (TSX:EDR) is a precious metals mining company that owns three high-grade silver-gold mines in Mexico. Shares dropped 3.54% to close out the week on September 6. The stock has climbed 41% over the last three months on the back of the surge in the spot price in silver.
The company released its second-quarter 2019 results on August 8. It reported a net loss of $10.1 million compared to a $5.7 million loss in Q2 2018. Endeavour faced operational challenges once again in Q2 2019.
Gold and silver production dropped 30% and 22%, respectively, in the quarter. Silver ounces sold fell 13% year-over-year and gold ounces sold dropped 32%. Endeavour will need to show improvement in the back half in order to capitalize off sky-high spot prices.
Management says that it expects to see a better operating performance in the second half. Should investors consider buying the dip today?
Gold and silver prices have fallen as the United States and China prepare to re-engage on trade talks. The bullish sentiment may be overdone considering how far apart both sides have been over the course of the process. I still like gold and silver in late 2019, and Endeavour is a solid buy especially if it can improve on the operation side in H2 2019.
