Condire Aggressively Buys Endeavour Silver Shares

According to a Feb. 17 SEC filing, Condire Management, LP increased its position in Endeavour Silver (EXK 2.24%) by 1,503,543 shares during the fourth quarter. The fund’s position at quarter-end stood at 4,503,543 shares, with a reported value of $42.3 million.

• Post-trade position: 4.5 million shares worth $42.3 million.
• The stake now accounts for 4.4% of the fund’s assets.

What else to know

• Top holdings after the filing:
  • NYSEMKT:NGD: $239.0 million (24.9% of AUM)
  • NYSEMKT:IAUX: $117.2 million (12.2% of AUM)
  • NYSE:ODV: $80.7 million (8.4% of AUM)
  • NYSE:SBSW: $74.7 million (7.8% of AUM)
  • NYSE:VAL: $58.4 million (6.1% of AUM)

Company overview

Company snapshot

Endeavour Silver is a mid-tier precious metals producer focused on silver and gold mining, with a primary operational footprint in Mexico and exploration assets in Chile. The company leverages a portfolio of producing mines and development-stage projects to drive growth and maintain resource sustainability. Its integrated approach to mining and exploration supports a competitive position within the global precious metals sector.

• Produces silver and gold through mining operations in Mexico, with additional exploration projects in Chile; main revenue sources are the Guanaceví and Bolañitos mines.
• Operates an integrated mining business model, generating revenue from the extraction, processing, and sale of precious metals.
• Serves a global customer base of industrial buyers and metal traders seeking silver and gold supply.

What this transaction means for investors

Condire Management made an aggressive purchase in the fourth quarter. It added 1.5 million shares of Endeavour Silver, 50% of its previous 3 million share total.

With the investment management firm’s concentrated equity portfolio of 22 positions and $958 million in assets under management (AUM), the transaction stands out even further. The firm’s Endeavour Silver holding had a $42.3 million value at year-end, or 4.4% of AUM.

For investors to jump on board, they’d have to share Condire’s confidence that outsized share gains will continue. Over the last year, through March 11, the stock price increased 141.4%. That easily outpaced the **S&P 500 **index’s 21.6% total return, and the Nasdaq Composite’s 29.1%.

Given its mining business, the share price is correlated to silver and gold commodity prices. These have been increasing dramatically, but their future directions are notably difficult to predict.