SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : PAAS : Pan American Silver
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
From: MoneyCooper10/10/2014 1:48:57 AM
   of 294
 
Recent Equity Research for T.PAA
Daniel Earle has updated his view on Pan American Silver to HOLD. The company is believe is most-sensitive to the metal price and yet, even after a recent pullback, its share price has significantly outperformed the silver price over the last year.
The target price comes down to $15.00 (from $19.00) on lower multiples reflecting negative free cash flow and muted growth potential at spot silver prices, so he is downgrading our recommendation to HOLD (from BUY)

The impact is slightly negative.

The reduced target multiples are in line with those Daniel Earle used for First Majestic Silver, which he believe is the company’s closest peer. He had used premium multiples previously to reflect what he viewed as an attractive combination of free cash flow in Q2/14, some growth potential, a strong balance sheet, and the highest dividend in our precious metals coverage universe at ~4.1%.

Daniel Earle's analysis suggests that if the silver price does not rebound, the company's balance sheet may begin to be eroded quickly and that its growth prospects may be muted. For example, he expect the company to burn cash before paying its dividend in Q4/14 and 2015 at $18.00/oz silver and he would suggest its Dolores expansion, where a construction decision is expected within 9-12 months, may continue to be delayed.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News