Endeavour Silver: Is Now the Time to Buy a Senior Silver Producer in the Making?

The global silver market is entering a new phase of structural imbalance. Industrial demand, driven by the green energy transition, is outpacing supply, while geopolitical shifts like BRICS de-dollarization are amplifying the role of precious metals as inflation hedges. In this environment, Endeavour Silver (EXK) stands out as a company poised to capitalize on both macroeconomic tailwinds and operational momentum. With its Terronera mine nearing commercial production, high-grade discoveries at Pitarrilla, and a strategic acquisition in Peru, Endeavour is not merely a silver producer—it is a case study in how to position for a bull market.

Terronera: The Engine of Growth

Endeavour’s Terronera mine in Jalisco, Mexico, is the linchpin of its growth strategy. In July 2025, the mine processed 57,080 tonnes of material at an average throughput of 1,841 tonnes per day (tpd), with current operations reaching 1,900–2,000 tpd as optimization efforts progress [1]. Silver and gold recoveries averaged 71% and 67%, respectively, though these figures were achieved using lower-grade material. The company anticipates a significant uplift in recovery rates once higher-grade ore is processed, which is expected to occur in the coming months [3].

Management has reaffirmed that Terronera is on track for commercial production by late 2025 or early 2026, with the mine projected to more than double Endeavour’s silver-equivalent output and reduce all-in sustaining costs (AISC) by 20% [2]. This ramp-up is critical: the mine’s contribution will underpin Endeavour’s 2026 target of 20 million silver-equivalent ounces annually, a 40% increase from 2024 levels [4].

Pitarrilla: A High-Grade Catalyst

While Terronera focuses on volume, Pitarrilla in Durango, Mexico, offers a high-grade upside. Recent drilling at the project intersected 4,630 grams per tonne (gpt) of silver, 2.26% lead, and 3.49% zinc over 0.20 meters, underscoring the potential for near-mine resource expansion [1]. These results, part of an ongoing exploration program, validate Endeavour’s strategy to leverage Pitarrilla’s polymetallic deposits to diversify revenue streams and enhance margins.

The significance of Pitarrilla extends beyond its immediate production potential. In a sector where primary silver grades have declined by nearly 50% over two decades [5], high-grade discoveries are rare and valuable. Endeavour’s ability to identify and develop such assets positions it as a rare growth story in a market increasingly defined by scarcity.

Strategic Diversification: The Kolpa Acquisition

Endeavour’s acquisition of Minera Kolpa in Peru further strengthens its portfolio. The asset, which contributed 1.455 million silver ounces and 7,706 gold ounces in Q2 2025, is expected to integrate smoothly into Endeavour’s operations, adding stable production and geographic diversification [3]. This acquisition aligns with the company’s long-term goal of reducing reliance on a single jurisdiction while capitalizing on Peru’s favorable mining environment.

Valuation: Undervalued in a Rising Tide

Endeavour’s valuation metrics suggest it is trading at a discount relative to its peers and intrinsic value. As of September 2025, the company has a forward price-to-earnings (P/E) ratio of 23.26 and a price-to-sales (P/S) ratio of 7.0x, significantly higher than the industry average of 2.6x [5]. However, this appears to reflect market skepticism about near-term production challenges rather than a fundamental mispricing.

The company’s balance sheet is robust, with $52.5 million in cash and no debt, providing flexibility to fund operations during the Terronera ramp-up [3]. Analysts have set a fair value range of $15.39–$18.17 per share, implying the stock is undervalued by over 60% at current prices [5]. This discrepancy between fundamentals and market perception creates a compelling entry point for investors who recognize the company’s long-term potential.

Sector Momentum and Macro Catalysts

The silver sector is experiencing a perfect storm of demand drivers. Industrial consumption, particularly in solar and electric vehicles (EVs), is surging. Each solar panel requires 20 grams of silver, and global solar capacity additions are projected to reach 375 gigawatts in 2024 alone [5]. Meanwhile, EVs contain twice as much silver as conventional vehicles, and the transition to electrification is accelerating.

Simultaneously, BRICS nations are reshaping the global monetary system. The 2025 Rio de Janeiro summit emphasized de-dollarization, with over 65% of intra-BRICS trade now settled in local currencies [2]. Precious metals, especially silver and gold, are gaining traction as hedges against currency volatility and U.S. sanctions. Central banks added 1,136 tonnes of gold to reserves in 2022, and similar trends are expected to persist [5]. While Endeavour is not explicitly mentioned in BRICS-related strategies, its focus on silver—a metal increasingly used in trade settlements—positions it to benefit from this shift.

Conclusion: A Strategic Buy

Endeavour Silver is a rare combination of operational execution and strategic foresight. Its Terronera mine is on the cusp of transforming the company into a mid-tier producer, while Pitarrilla and Kolpa provide high-grade and diversified revenue streams. The stock’s current valuation discounts these catalysts, offering an attractive risk-reward profile.

In a world where inflation, de-dollarization, and green energy demand are converging to drive silver prices higher, Endeavour is not just a beneficiary—it is a builder of long-term value. For investors seeking exposure to the silver bull market, the question is no longer if Endeavour will succeed, but when the market will recognize its potential.

Source:
[1] Endeavour Silver's Terronera Mine Startup Advancing Well [https://edrsilver.com/news-media/news/endeavour-silvers-terronera-mine-startup-advancing-10665/]
[2] Earnings Call Transcript: Endeavour Silver Q2 2025 Results [https://www.investing.com/news/transcripts/earnings-call-transcript-endeavour-silver-q2-2025-results-miss-forecasts-93CH-4202630]
[3] Endeavour Silver Produces 1,483,736 Oz Silver and 7,755 Oz Gold [https://www.nasdaq.com/press-release/endeavour-silver-produces-1483736-oz-silver-and-7755-oz-gold-25-million-silver]
[4] Silver Supply and Demand Gap Widens [https://discoveryalert.com.au/news/silver-supply-demand-gap-widening-2025/]
[5] EXK Valuation Metrics [https://intellectia.ai/stock/EXK/valuation]