The price of silver had gotten off to a strong start in 2022 and reached a high of $26.50 per ounce in April. Nevertheless, it quickly lost its luster and by the middle of May had fallen to $20.59. This valuable white metal’s price per ounce remained below $22 for the duration of the remainder of the quarter, and it finished the second quarter somewhere around $20. Throughout the quarter, the price of silver was impacted by various factors, including rising interest rates, a stronger dollar, and supply-chain problems in the key demand groups. The period from April to June saw a decline of 19% in the value of the metal due to the negative impact that market volatility had on investor mood. This was evident in the top-and bottom-line results of the second quarter for the silver mining stocks that have already published their quarterly data.
Let’s take a look at the performance of a few companies.
Endeavour Silver
In light of the low silver prices, Endeavour Silver Corporation (TSX:EDR)(NYSE:EXK) had decided to withhold a specific amount of silver sales, which impacted the company’s top and bottom lines and the cash flow in the second quarter. Endeavor has a finished goods inventory totaling about 1.6 million silver equivalent ounces, all of which will be put up for sale as soon as prices recover to their previous levels. Even though the Zacks Consensus Estimate predicted that Endeavour would earn $0.01 per share, the company recorded a loss of $0.02 per share. During the same period last year, Endeavour ended the period with earnings of one penny per share.
In the most recent quarter, Endeavour reported revenues of $31 million, which is 35% lower than the same period last year and lower than the Zacks Consensus Estimate of $36 million. Nevertheless, the company’s strong operating performance encouraged management to boost its output guidance for 2022. At this time, Endeavour anticipates production to fall somewhere in the region of 7.6 million to 8.0 million silver equivalent ounces.
Avino Silver
Avino Silver (TSX:ASM)(NYSE:ASM) announced earnings per share of $0.02 for the second quarter of 2022, which compares to the loss per share of $0.01 that was recorded for the same quarter in the preceding year. The consensus estimate provided by Zacks for the second fiscal quarter of 2022 was three cents per share. The reported $9.4 million in revenues is much lower than the Zacks Consensus Estimate of $12 million.
Hecla Mining
Hecla Mining, Inc. (NYSE:HL) reported adjusted earnings per share of $0.04 for the second quarter of 2022, which was much higher than the Zacks Consensus Estimate of $0.02 by a margin of 100%. During the second quarter of 2021, Hecla recorded earnings of $0.06 per share for the period. The current quarter’s revenues came in at $191 million, a 12% decrease from the previous year’s total. The top-line figure was lower than the $194 million that the Zacks Consensus Estimate expected.
Hecla anticipates that its silver production will range between 12.9 and 13.5 million ounces in 2022. The amount of gold produced is expected to fall between 165,000 and 175,000 ounces.
Pan American Silver
Pan American Silver Corporation (TSX:PAAS)(NASDAQ:PAAS) reported a loss of $0.03 per share after considering the impact of adjustments for the second quarter of 2022. According to the consensus estimate provided by Zacks, the company would make $0.14. In the same period of the previous year, Pan American had posted adjusted earnings per share of $0.22. The decrease in the price of silver was the primary factor in the 11% annual drop in revenue, which came to $340 million.
Pan American has reiterated its financial performance and production guidance for the current year. It is anticipated that the company will produce between 19 and 20.5 million ounces of silver throughout the year. The amount of gold Pan American will produce is anticipated to range between 550,000 and 605,000 ounces.
Featured Image: Megapixl @Fireflyphoto
