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A: You are correct, our stock has been particularly volatile in recent weeks and we believe the GDXJ ETF index fund rebalancing is the main reason. At the date of their most recent filing, the GDXJ held 15% of Endeavour’s issued and outstanding shares – making them by far our largest shareholder. Their holdings had been steadily creeping up as the size of the fund grew, and they were rapidly approaching the 20% threshold in many of their holdings (not just Endeavour Silver). They cannot own more than 20% in any company because it would breach their ETF policies and trigger certain takeover and disclosure laws. To address this, the GDXJ managers recently announced a change in their investment methodology to allow more larger cap companies into the fund, thereby reducing their exposure to the junior companies (the J in GDXJ). As a result, they have been reducing their positions in all of their current GDXJ holdings and buying the larger cap mining shares to be added to the index. We believe this rebalancing of the GDXJ holdings is primarily what caused the recent volatility, and price decline, in our stock. There is no other fundamental reason for the sell-off, as our operations remain on track to meet 2017 guidance, and we are cash flow positive at current metal prices.
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