Great Panther Silver Ltd. is a primary silver mining and exploration company. The company’s current activities are focused on the mining of precious metals from its two wholly owned operating mines in Mexico: the Guanajuato mine complex, which includes the San Ignacio satellite mine, and the Topia mine in Durango. The company also has two exploration projects in Mexico, El Horcon and Santa Rosa, and is pursuing additional mining opportunities in the Americas. Refer to Streetwise Reports – The Gold Report (http://www.theaureport.com/pub/co/gpr-tsx) for a number of expert comments concerning GPL.
The following is information I discovered concerning GPL while conducting basic due diligence.
The company recently announced the acquisition of a $10M credit line from Auramet International LLC with whom it has had a working relationship for several years. Their President & CEO recently made the following comment regarding their financial position within the press release announcing the recently secured line of credit:
“Great Panther has a strong balance sheet with no debt and approximately $35 million (Canadian dollars) of net working capital. The Auramet facility provides the Company with greater financial flexibility and, in particular, more options with regard to the pricing and the timing of the pricing of our concentrate sales.” stated Robert Archer , President & CEO.
(Yahoo Finance – Great Panther Silver Announces USD $10 Million Credit Facility: http://finance.yahoo.com/news/great-panther-silver-announces-us-215800986.html)
GPL is near it’s 52 week low as reported by Investor Wired:
“Great Panther Silver Ltd (USA) (NYSEMKT:GPL) reported the loss of -5.83% and closed at $0.452 with the total traded volume of 1.42 million shares. Its market capitalization is $67.21 million. The stock has a 52-week high price of $1.49 and its 52-week low was recorded at $0.44. Great Panther Silver Ltd (USA) (NYSEMKT:GPL) declares that it has obtained a US$10,000,000 credit facility from Auramet International LLC (“Auramet”). Great Panther has had a commercial relationship with Auramet for several years.” (Investor Wired – Stocks In The Spotlight: http://www.investorwired.com/stocks-in-the-spotlight-great-panther-gpl-bazaarvoice-bv-mobileiron-mobl-china-pharma-cphi/1738281)
GPL actually looks low overall as shown by the following chart captured on June 12, 2015:
GPL recently completed an acquisition of Cangold:
“VANCOUVER, May 27, 2015 /PRNewswire/ – GREAT PANTHER SILVER LIMITED (TSX: GPR) (NYSE MKT: GPL) (“Great Panther”) and Cangold Limited (TSX-V: CLD) (“Cangold”) are pleased to announce the completion of the previously announced plan of arrangement (the “Arrangement”) pursuant to which Great Panther has acquired all of the issued and outstanding common shares of Cangold (“Cangold Shares”). Cangold is now a wholly-owned subsidiary of Great Panther.” (Great Panther Silver Limited – Great Panther Completes Acquistion of Cangold: http://www.greatpanther.com/English/News/News-Details/2015/Great-Panther-Completes-Acquisition-of-Cangold/default.aspx)
It appears as if Great Panther received a bargain price at $0.03 per share. Earlier in the life of the company Cangold was trading above $2.00 per share. It’s also interesting to note that Cangold had a 1:12 stock split early in the life of the company (April 27, 1999).
Recently a member of the GPL Board of Directors failed to achieve majority votes towards his re-election to the board. The election of each director nominee was as follows:
GPL made the following statement in regards to the election within a recent press release:
“Jeffrey Mason did not receive the support of the majority of the votes cast at the meeting. In accordance with the Company’s majority voting policy, Mr. Mason has submitted his resignation to the Chairman of the Nominating and Corporate Governance Committee for consideration (the “Committee”). The Committee will, within the next 90 days, consider and make a recommendation to the Board as to whether to accept Mr. Mason’s resignation, based on all relevant factors. Until the Board makes its determination, Mr. Mason remains a director of the Company, but will not participate in any deliberations regarding his election or appointment to the Board.”
I am unsure if the Director in question has a key role in the company or if it will significantly impact GPL (should the resignation be accepted), but it may be something to watch over time and see how things play out.
Beyond the normal corporate highlights, one aspect that really stands out about Great Panther Limited is their online store. Given their core competency of mining, investors may purchase specialized silver products directly from their online store.
One item that stood out to me was the One Troy Ounce Silver Bars. These silver bars are characterized by 0.999 purity and contain the GPL ticked symbol.
This feels like a great way to make the potential investor feel like a part of the company as well as offer a sense of tangible value in the form of precious metal with enduring value.
Overall Great Panther Limited (GPL) appears to be an interesting company that has upside potential. At the moment GPL stock may be undervalued and it may be a good time to buy given their recent acquisition of Cangold and announcement of a $10M dollar credit facility. Their online store feels unique and offers the perception of durability by providing the potential investor the ability to commemorate their investment. There is some risk at this point of the company, but I believe that risk reflects the low price.
1. Great Panther Silver Limited: http://greatpanther.com
2. Market Watch – Cangold Obtains Final Order For Arrangement With Great Panther: http://www.marketwatch.com/story/cangold-obtains-final-order-for-arrangement-with-great-panther-2015-05-26-16173506
3. PR Newswire – Great Panther Silver Reports Annual General Meeting Results: http://www.prnewswire.com/news-releases/great-panther-silver-reports-annual-general-meeting-results-506312771.html
4. Streetwise Reports – The Gold Report: Company Overview: http://www.theaureport.com/pub/co/gpr-tsx
5. Yahoo Finance – Cangold Limited (CLD.V): http://finance.yahoo.com/q/hp?s=CLD.V&a=07&b=8&c=1996&d=05&e=12&f=2015&g=m&z=66&y=0
6. Yahoo Finance – Great Panther Limited (GPL): http://finance.yahoo.com/q/hp?s=GPL+Historical+Prices