Great Panther Silver – Over One Billion Ounces and Counting

Paul Burchell, an analyst at Dundee Capital Markets in Toronto, has initiated coverage of Great Panther Silver (OTC Other: GPRLF; TSX: GPR) with a price target of $2.80 (The Company is currently trading around $2.33.) Below is an excerpt from the Dundee report.

“Great Panther Silver is a silver producer with two operating assets, the Guanajuato Mine and the Topia Mine, in Mexico. The company is headquartered in Vancouver B.C. with site offices at its mine sites.We are initiating coverage on Great Panther with a BUY rating and 12-month price target of C$2.80/share. We expect future exploration success combined with an expansion in production over the next two years at its flagship Guanajuato Mine plus increased production from its Topia Mine to drive the company’s share price higher.Our base case valuation of Great Panther suggests a 2012E net asset valuation (NAV) of C$1.91/share based largely on the company’s expected future free cash flow discounted at 5% plus estimated cash at the end of 2011. Our valuation is highly leveraged to our long-term metal price forecasts – using current spot prices as our long-term forecasts would result in a NAV estimate of C$3.23/share.”