Stonecap Securities maintained Friday its sector perform rating and $2.75 target price on Great Panther Silver as the recent positive resource update for Guanajuato was already factored into the capital markets firm's model.
Earlier this week, Great Panther announced a resource update at its Guanajuato Mine Complex and San Ignacio project.
The updated measured and indicated mineral resource at the Guanajuato
Mine Complex contains 5.649 million ounces of silver equivalent,
replacing production from the Guanajuato Mine during the past 18 months.
Inferred mineral resources at the Guanajuato Mine are estimated at 2.5 million silver equivalent ounces.
Since San Ignacio is effectively a satellite of the Guanajuato Mine
Complex, located 20 km away by road, and any mineralization extracted
from San Ignacio will be processed at the Cata Plant, the resource is
now being considered as part of the overall Guanajuato Mine mineral
inventory, the company said.
The new inferred mineral resource at San Ignacio is estimated to
contain 6.89 million silver equivalent ounces in 826,000 tonnes
averaging 121 g/t silver and 2.28 g/t gold, using a 125 g/t cut-off.
The estimate for San Ignacio increases the tonnage by 35 percent, the
silver content by 29 percent, the gold content by 51 percent and the
silver equivalent ounces by 53 percent over the previous estimate, Great
Stonecap said contained silver increased 16 percent to 8 million
ounces from 6.9 million ounces previously, while contained gold rose 24
percent to 115,000 ounces from 93,000 ounces previously.
The report also noted the San Ignacio project's contained metals has
increased to 3.2 million ounces of silver and 60,000 ounces of gold,
from 2.5 million ounce silver and 36,000 ounces of gold.
Total NI 43-101 compliant resources have risen 28 percent from 1.22 million tonnes to 1.56 million tonnes.
"Our mine model for Guanajuato assumes a LOM [life-of-mine] total of
~2.4m tonnes mined versus the current NI 43-101 resource of 1.56m
tonnes," Stonecap analyst Christos Doulis said.
"While Great Panther has managed to increase its total resource by
~27% to 1.56m tonnes at the Guanajuato Mine Complex, this has little
impact on our valuation as our model continues to incorporate a total of
~2.4m tonnes mined at Guanajuato."
Great Panther is currently trading at $1.89 on Friday afternoon.
Great Panther is a primary silver mining and exploration company
focused on mining precious metals from its two wholly-owned operating
mines in Mexico.
It also owns the development stage property San Ignacio, and an
exploration stage property, Santa Rosa, which is located approximately
15 kilometres northeast of Guanajuato.