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.
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
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."