Current thoughts on this company and the Q?
Thanks
EDR has displayed some volatility this year alongside the price of silver and has ultimately been on a downward trend since mid-July seeing a -45% 1-year decline. Valuation is 13.2x earnings and market cap is $531M. EDR saw revenue growth +25% year-over-year to $49M in Q3 but recorded both a net and operating loss. EPS remained at a loss in Q3 at ($0.01) but is positive year-to-date for FY2023 at $0.03. Cash from operations in Q3 was positive and is at $50M for FY2023. Revenue beat estimates by 2% but the per-share loss was worse than expected. EDR acknowledged that Q3 was challenging due to inflation and commodity risks associated with silver. Additionally, Q3 marked EDR’s lowest quarterly production in two years driven by reduced productivity in Guanacevi. These were mixed results for the company, and it has declined significantly this year, but for an investor who is optimistic about the long-term demand for silver, we still think EDR is a decent midcap for the sector.