Q: Hi Team,
No update on this company for some time, can you provide your thoughts on this for a mid-cap silver stock?
No update on this company for some time, can you provide your thoughts on this for a mid-cap silver stock?
5i Research Answer:
EDR is flat this year. Market cap $841M. Valuation 29X earnings. Net cash is $60M. Following some weak years, EPS is expected to nearly triple this year and nearly double next year. The first quarter was solid with EPS 46% better than estimates. But revenue did decline, and the company cited cost pressures and the rise in the Peso. Inflationary pressures of course are not unique to the company, but they are making investors cautious. We would consider it OK. The Terronera project is getting de-risked and looks better. Cash flow should be good. We would consider it a decent midcap for the sector.