Stonecap keeps Great Panther Silver at "sector perform"
Tue 7:44 pm by Joyanta Acharjee
Stonecap Securities has retained its "sector perform" rating and $2.75 price target on Great Panther Silver (TSE:GPR)(AMEX:GPL) after the Mexico-focused silver producer unveiled first-quarter production data.
Monday, Great Panther said metal production in the first quarter continued to improve and at 557,667 silver equivalent ounces, was up two percent over the prior quarter.
Silver production totaled 359,526 ounces and silver metal recovery at the Guanajuato plant reached an all-time high of 90.1 percent.
As well, a quarterly record of gold production was achieved with 2,729 ounces ounces produced, up 20 percent on the prior quarter.
In a research note, Stonecap analyst Christos Doulis said: "Great Panther's Q1 2012 silver production came in around 8 percent below our expectations, while gold production was 37 percent above our forecast as more ore from the gold-rich Santa Margarita area entered the mill.
"While silver equivalent production of 557,000 ounces was light relative to 2012's forecast of between 2.5 and 2.75 million ounces silver equivalent. The company anticipates continued production growth over the balance of the year."
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.