Dahlman Rose Calls Pan Am Silver (PAAS) a Pure Silver Play with Significant Size, Cash flows, and Growth Potential
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Price: $17.82 --0%
Rating Summary:
8 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
8 Buy, 7 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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Dahlman Rose is reiterating its Buy rating and $47 price target on shares of Pan Am Silver (NASDAQ: PAAS) as it offers investors participation in a pure silver play with significant size, cash flows, and growth potential.
The company currently operates seven mines in four different countries in the Americas. PAAS is producing 26 million ounces of silver per year, which ranks it the second largest primary silver producer behind Fresnillo.
The firm notes that PAAS has a solid growth strategy and has great potential to increase the amount of ounces produced annually with the recent acquisition of Navidad and its Joint Venture on La Preciosa in the near future. At full production, it should increase the company’s annual silver production by 16 million ounces to over 40 million ounces, representing a 66 percent increase over 2010's production.
PAAS has a solid balance sheet and has been growing its cash assets which will help future growth opportunities and dividend increase. It finished Q1 with $397 million in cash, no debt, and $15 million remaining on its credit facility. The company currently offers a $0.10 annual dividend, which represents a 0.003 yield.
An analyst at Dahlman Rose comments, "we believe the management has the experience necessary to move the large Navidad project forward. Its track record includes construction and expansion projects at five mines in the last seven years, all on budget and within scheduled timeframes."
For more ratings news on Pan Am Silver click here and for the rating history of Pan Am Silver click here.
Shares of Pan Am Silver closed at $30.31 yesterday.
The company currently operates seven mines in four different countries in the Americas. PAAS is producing 26 million ounces of silver per year, which ranks it the second largest primary silver producer behind Fresnillo.
The firm notes that PAAS has a solid growth strategy and has great potential to increase the amount of ounces produced annually with the recent acquisition of Navidad and its Joint Venture on La Preciosa in the near future. At full production, it should increase the company’s annual silver production by 16 million ounces to over 40 million ounces, representing a 66 percent increase over 2010's production.
PAAS has a solid balance sheet and has been growing its cash assets which will help future growth opportunities and dividend increase. It finished Q1 with $397 million in cash, no debt, and $15 million remaining on its credit facility. The company currently offers a $0.10 annual dividend, which represents a 0.003 yield.
An analyst at Dahlman Rose comments, "we believe the management has the experience necessary to move the large Navidad project forward. Its track record includes construction and expansion projects at five mines in the last seven years, all on budget and within scheduled timeframes."
For more ratings news on Pan Am Silver click here and for the rating history of Pan Am Silver click here.
Shares of Pan Am Silver closed at $30.31 yesterday.
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