What happened 

Shares of Endeavour Silver Corp (NYSE:EXK) jumped as much as 15.2% in trading Thursday after the company reported third-quarter earnings. The bottom line didn't hit expectations, but revenue was better than hoped. At 1:50 p.m. EDT, shares were still up 11.9% on the day. 

So what

Revenue fell 5% to 39.8 million in the quarter, despite a 6% increase in silver ounces sold. Gold ounces sold fell 3%, realized silver price dropped 10%, and realized gold price was down 3%. That drove an 82% decline in net income to $1 million. 

Gold mine underground with rail track.

Image source: Getty Images.

On a per-share basis, earnings were $0.01, which was a penny below expectations, but that didn't seem to concern investors. Revenue easily topped the $36.4 million analysts were expecting, as the bar for gold and silver miners has come down significantly in recent months. 

Now what

This is clearly a case of a company beating low expectations, but right now operations are hardly looking up. Production is down, costs are rising, and sale prices per ounce are dropping as well. None of those trends bode well for the company in the long term, which is why this is a pop I'll be staying away from today. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.