For the last 100 years, the average gold/silver price ratio was 47:1. It now takes 75 ounces of silver to purchase one ounce of gold.
The silver-spring is coiled tight and may be poised for a rebound.
On October 12, 2017, Great Panther Silver Limited (GPR:TSX; GPL:NYSE.MKT) announced Q3 production results from the Topia Mine in Durango, Mexico, and the Guanajuato Mine Complex, which includes the San Ignacio Mine, also in Mexico.
Q3/17 compared to Q3/16:
- Metal production increased 13% to 1,080,483 silver equivalent ounces
- Silver production increased 4% to 532,803 silver ounces
- Gold production increased 8% to 5,848 gold ounces
- Lead and zinc production increased 78% and 74%, respectively
- Ore processed decreased 1%, with 94,080 tonnes milled
"The results are consistent with the previous quarter and fall in line with the Company's annual guidance," stated James Bannantine, Great Panther's president & CEO. "The increase in gold production compared to the second quarter 2017 is a direct result of the improved gold grades and recoveries."
Total metal production for the Guanajuato Mine Complex was 755,008 silver equivalent ounces—a 1% increase over the previous quarter—but a decrease of 4% compared to Q3/16.
According to the press release: "The decrease is attributed to lower tonnes milled due to narrower than anticipated veins at the San Ignacio mine and lower silver grades. These factors were partly offset by improved gold grades and recoveries."
Total metal production at the Topia Mine decreased 8% compared to Q2/17 but increased 79% over Q3/16. All tailings continued to be deposited at the Phase I Tailings Storage Facility, while Great Silver awaits the decision on its formal application, which must include an environmental assessment study.
A recent report by ROTH Capital Partners gives Great Panther a "BUY" recommendation with a US$2.00 price target (58% higher than its current price of US$1.26).
ROTH analyst Jake Sekelsky said this about the Topia Mine Tailings issue: "We expect Great Panther to receive the TSF2 permit in 4Q17, we are maintaining our 2017 production estimate of 2.0 million ounces of silver and 22,628 ounces of gold for total silver equivalent production of 4.0 million ounces while updating our production and EPS estimates."
As well as the two Mexican mines, Great Panther has acquired the Coricancha Mine in Peru. The property includes 126 mining licences, a 600-tonne per day processing permit and a transportation permit, all valid and in good standing.
"We expect an updated resource estimate at the Coricancha Mine to be released in 4Q17," stated Sekelsky, "In our opinion, the updated resource estimate should form the basis of an upcoming economic study. We expect to revisit our assumptions for Coricancha once an economic study is released in 1H18."
Read what other experts are saying about:
Want to read more Gold Report articles like this? Sign up for our free e-newsletter, and you'll learn when new articles have been published. To see a list of recent articles and interviews with industry analysts and commentators, visit our Streetwise Interviews page.
1) Lukas Kane compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Great Panther Silver Limited. Streetwise Reports does not accept stock in exchange for its services. Click here for important disclosures about sponsor fees. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.
Disclosures from ROTH Capital Partners, Great Panther Silver Limited, Company Note, Oct. 13, 2017
Regulation Analyst Certification ("Reg AC"): The research analyst primarily responsible for the content of this report certifies the following under Reg AC: I hereby certify that all views expressed in this report accurately reflect my personal views about the subject company or companies and its or their securities. I also certify that no part of my compensation was, is or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
ROTH makes a market in shares of Great Panther Silver Limited and as such, buys and sells from customers on a principal basis.
The Research Analyst serves on Great Panther Silver Limited Board of Directors.
ROTH Capital Partners, LLC expects to receive or intends to seek compensation for investment banking or other business relationships with the covered companies mentioned in this report in the next three months.