Source: The Gold Report 06/06/2017
With the commissioning phase of the processing plant complete, full production at this Mexican mine has resumed.
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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( Companies Mentioned: GPR:TSX; GPL:NYSE.MKT,
from The Gold Report – Streetwise Exclusive Articles Full Text https://www.streetwisereports.com/pub/na/17490