Great Panther Silver Limited (GPL) continues to be of great interest to me. After listening to a recent conference call by Robert A. Archer, President & CEO of Great Panther Silver Limited regarding their 2015 performance, my enthusiasm has continued to grow.
Here are some of the highlights that I had taken away from the call:
-Best year ever operationally
-Mined ore increased 30%
-Decreased cash costs across operations (decreased 41%)
-Options for mining outside of Mexico (Peru)
-Terminated Cangold option agreement
-Revenues increased 35% despite declining gold and silver prices
-AISC decreased 38%
-Operations driven company (increase throughput and efficiency, lower cost, and higher grades)
One of my favorite aspects of GPL is that they are an operationally driven company. They have a continual focus on increasing throughput (mined ore), reducing cost and improving quality. This focus is apparent on their continued improvement on key operational metrics.
One area that I was slightly disappointed was to hear that a Cangold mining option was terminated due to the inability to locate sufficient reserves. Even so, I respect the decision and the discipline to terminate unprofitable operations early and move on. This is closely related to the operational discipline discussed in the preceding paragraph. Although this particular option was terminated, it appears that there are other options or resources within the Cangold portfolio that may be explored.
An area that interested me during the call was the discussion on options for mining outside of Mexico. GPL has begun exploring a mine in Peru which could be an interesting growth opportunity.
Even though the GPL stock price is at its one year high, I continue to believe that this company is undervalued given the focused leadership team, operational prowess, lack of long term debt, and opportunities for growth.
The following are a few slides from the presentation:
The following are some highlights of the current GPL stock position as retrieved from the CNBC iOS app:
Image Credit: Great Panther Limited