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.
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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.
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Disclosures from Rodman & Renshaw, Great Panther Silver Limited, June 2, 2017
I, Heiko F. Ihle, CFA , certify that 1) all of the views expressed in this report accurately reflect my personal views about any and all subject securities or issuers discussed; and 2) no part of my compensation was, is, or will be directly or indirectly related to the specific recommendation or views expressed in this research report; and 3) neither myself nor any members of my household is an officer, director or advisory board member of these companies.
None of the research analysts or the research analyst’s household has a financial interest in the securities of Great Panther Silver Ltd. (including, without limitation, any option, right, warrant, future, long or short position).
As of May 31, 2017, neither the Firm nor its affiliates beneficially own 1% or more of any class of common equity securities of Great Panther Silver Ltd.
Neither the research analyst nor the Firm has any material conflict of interest in of which the research analyst knows or has reason to know at the time of publication of this research report.
The research analyst principally responsible for preparation of the report does not receive compensation that is based upon any specific investment banking services or transaction but is compensated based on factors including total revenue and profitability of the Firm, a substantial portion of which is derived from investment banking services.
The Firm or its affiliates did receive compensation from Great Panther Silver Ltd. for investment banking services within twelve months before, and will seek compensation from the companies mentioned in this report for investment banking services within three months following publication of the research report.
The Firm does not make a market in Great Panther Silver Ltd. as of the date of this research report.