Global Hunter Upgrades Great Panther to “Buy” Rating, Maintains $4.25 Price Target

Global Hunter Securities has upgraded Great Panther Silver (NYSE-Amex: GPL) to a buy rating, slightly raising its 2011 and 2012 estimates, and maintaining its $4.25 price target.  Global Hunter believes the recent pullback in price has created a compelling buying opportunity.  Below please find highlights from the recently released report.

Highlights

Great Panther is executing on a three-year organic growth plan. GPL is on track to produce approximately 1.9 million ounces of silver or a little over 2.9 million ounces of silver equivalent (when gold and base metal contributions are factored in) in 2011. While cash costs were up slightly from the previous quarter, the overall throughput to the mill increased.

GPL’s Q2 set the reset button for the rest of 2011. The second quarter did not meet expectations due to difficulties with sales and shipments from the metals trading firms to the smelter in South Africa. Great Panther now has a plan in place to eliminate the unanticipated inventory of silver concentrate through a sales agreement with another Mexican silver producer. We now anticipate Great Panther to sell the additional silver concentrate over the next two quarters, thus contributing to Q3 and Q4 of 2011.

Upgrading to Buy. Growth for a small-cap mining company is never linear and we view the bump in the road towards expansion as an opportunity to get exposure to silver and gold production at a more attractive valuation. We are slightly raising our 2011 and 2012 revenue estimates based on a stabilized production scenario along with an increase to our silver and gold assumptions for the balance of 2011 and 2012. We are upgrading Great Panther to a Buy rating from an Accumulate rating and maintaining our price target of $4.25.

Full Report

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