Thursday, August 18, 2011

Good news for holders of Great Panther Silver (GPR.to) (GPL)


It looks like the company has got its concentrate sales problems out of the way now. This must be why the stock is up and breaking trend this morning. Here's the link to the NR, here's the main bits of the content:

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 18, 2011) - GREAT PANTHER SILVER LIMITED (TSX:GPR)(NYSE Amex:GPL) (the "Company") is pleased to announce that it has commenced the shipment of silver-gold pyrite concentrates from its Guanajuato operation to a new buyer in Mexico. The first delivery of 100 tonnes started today and is the first of many shipments which will allow the Company to reduce the backlog of concentrates at its Guanajuato mine. While second quarter revenue was lower as a result of the unsold concentrates, it is considered to be a short-term issue. The additional new sales are expected to return strong revenues in the third and fourth quarters. Great Panther also operates the Topia silver-gold-lead-zinc mine located in Durango State, which sells its silver-rich lead and zinc concentrates under a separate contract.

The Guanajuato operation currently produces over 250 tonnes per month of silver-gold bearing pyrite concentrates. Great Panther has a one-year contract to sell Guanajuato concentrates through a metal trader to an overseas smelter. However, the smelter is fully supplied with concentrates and has reduced the quantity of purchases from Guanajuato. Consequently, the Company has sought out, and found, an alternative buyer. As of today, concentrates are being trucked to an efficient Mexican plant producing Dore bars (containing mostly silver and gold), which are marketed to a refinery where fine silver and gold is produced. The plant has surplus capacity over the requirements of its own mine and, from extensive test work, has been found to be suitable for the recovery of gold and silver from Guanajuato concentrates. Terms of the new sales agreement are competitive and should allow the backlog to be reduced to normal levels by year end, resulting in higher revenues in the third and fourth quarters of 2011.


So now that 1) they're selling what they produce correctly and 2) they've decided to be honest about their true costs and 3) there's a plant expansion close to coming on line, this stock might just turn out to be a buy at these levels...after all these years too. So subscribers, we'll go into to numbers in this weekend's IKN Weekly, see what's what and make a measured decision. DYODD.