Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe

TICKERS: GPR; GPL

Commissioning Complete at Mexican Mine

Share on Stocktwits

Source:

With the commissioning phase of the processing plant complete, full production at this Mexican mine has resumed.

Great Panther Mexico Project Map

Great Panther Silver Limited (GPR:TSX; GPL:NYSE.MKT) announced on June 1 that it has completed the commissioning of the processing plant of the Topia mine in Durango, and that the facility is operating at planned capacity.

The company also noted that it is depositing dry tailings at the phase 1 Tailings Storage Facility as it works to resolve an outstanding permitting condition.

"We are pleased with the operation of the plant and progress to date on the permitting front," stated Robert Archer, Great Panther's president & CEO. "We have had extensive discussions with all stakeholders regarding the permitting requirements and we are optimistic this will be favourably resolved in the coming weeks. We still expect to be able to process all of the ore stockpiled during the shutdown through the balance of 2017. Furthermore, the higher ore grades of the stockpiled ore put us in good position to meet our 2017 production guidance."

Analyst Heiko Ihle of Rodman & Renshaw took note of the announcement, writing in a June 2 report, "Since production at Topia has resumed, the company is processing stockpiled ore from the shutdown, in addition to run of mine ore, which should keep the processing plant running at capacity for the foreseeable future. Further, we note that the higher-grade ore of the stockpiles have positioned the company well to meet 2017 production guidance of 4.0-4.1 million silver equivalent ounces from its Mexico operations."

Ihle also stated that "we are optimistic that additional permitting issues at Topia should soon be resolved. . .we expect the company to obtain the required Phase II permit in the not too distant future."

The analyst also noted that the outlook for the Guanajuato [GMC] and Coricancha projects "remains positive." He commented that "we are thoroughly impressed with the progression at San Ignacio over the last few years. . .in our view, a larger percentage of total GMC throughput stemming from San Ignacio could allow the GMC to exceed our 2017 expectations."

Turning to the Coricancha project in Peru, Ihle stated that "we continue to look at the Coricancha acquisition as a low-risk, high-upside opportunity that could add around 3.0 million silver equivalent ounces to future production. Assuming a formal PEA is released in 2017, we expect management to move forward with the asset as early as 2018."

Rodman & Renshaw is maintaining a Buy recommendation on Great Panther and has a target price of $2.50. The shares are currently trading at around $1.68.

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.

Disclosure:
1) Patrice Fusillo compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. She owns, or members of her immediate household or family own, shares of the following companies mentioned in this article: None. She is, or members of her immediate household or family are, paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are sponsor 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, its officers or of Great Panther Silver.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
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.





Want to read more about Silver investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe