Great Panther Silver (AMEX: GPL, TSX: GPR)

Great Panther Silver is a silver mining company with properties in Mexico at various stages of exploration, development and production.  It has 4 properties in Mexico. The 4 properties are Guanajuato Mine, San Ignacio, Santa Rosa and Topia Mine.


Silver reserves as at 2012 is 32 million oz.
Projected production for 2012 is 2.5 to 2.75 million oz
Cost of production is estimated at $10.50/oz

Shares outstanding is 142 million.
Current silver price is $28.45 (21 May 2012)
GPL share price is $1.77 (21May 2012)

Company website: http://www.greatpanther.com/English/Home/default.aspx

Company presentation on April 2012:
http://www.greatpanther.com/Theme/GreatPanther/files/Great%20Panther%20Silver%20Limited%20-%20CorporatePresentation%20April%2016,%202012.pdf

Comment
Silver prices have been volatile in recent years. Investing in silver mining shares is a leverage play on the price of silver. When the price of silver goes up, the mining shares go up faster. Conversely, when the price of silver falls, the mining shares go down faster. Even when the price of silver does nothing, the mining shares can keep falling. That is the nature of investing in mining shares.

Having said that, the folks at GPL in the presentation notes pointed out there is pattern in the price movement of silver. I have noted that in an earlier post :
http://thomas-rainbowdiary.blogspot.com/2012/04/silver-interesting-observation.html

The chart of GPL shows that the shares are now in the oversold territory. However the price has yet to find a bottom.

Probably waiting for the aha! moment.

1Q2012 results announced on 14 May 2012
1Q2012 EPS is C$0.03
Cash and cash equivalent as at 31 Mar 2012 is C$40 million