Lebed.biz Alert ***Great Panther: GPR***
Sep 5th, 2009 by beststockreport
Great Panther Resources, currently $0.70 on the TSX under the symbol GPR, is my #1 pick for the fall of 2009 and my #1 silver pick for the next decade! In fact, if I had to redo my top 10 picks list for the next 4 years, I would put GPR #1 ahead of DROOY!
My timing for profiling GPR could prove to be impeccable. Silver prices reached a new 13-month high on Friday of $16.31 per ounce!
GPR is a silver company with three mines in Mexico, the country with the second highest silver production in the world. Two of GPR’s mines are already producing! GPR has become one of the lowest cost and fastest growing silver producers in the world today!
GPR produced 499,845 silver equivalent ounces in the 2Q of 2009 up 15% over the same quarter in 2008! GPR’s 2Q 2009 earnings from mining operations (before amortization and depletion) increased by 69% over a year ago to $3 million!
Best of all, GPR’s overall cash operating cost per silver ounce (net of by-product credits) decreased by 45% from a year ago to $5.73 per ounce! That’s right, silver just hit a 13-month high of $16.31 per ounce and GPR’s production costs last quarter were only $5.73 per ounce!
Endeavour Silver Corp (EXK)’s Guanajuato mine is located right next to GPR’s Guanajuato mine and EXK’s production costs last quarter were $6.95 per ounce. GPR’s productions costs are 18% lower than EXK!
In fact, GPR’s production costs last quarter were 22% lower than Coeur d’Alene Mines (CDE), which reported production costs of $7.37 per ounce!
As you know, CDE hit a high on Friday of $17.33 up 175% since I made it my speculative rating of 1 pick on March 10th at $6.30 and EXK hit a high on Friday of $2.48 up 61% since I made it my speculative rating of 2 pick on February 19th at $1.54!
I believe GPR has far greater upside potential than CDE and EXK! In my opinion, GPR could go down as the best performing stock of the next decade!
GPR expects to produce 2.5 million silver equivalent ounces in 2010! Imagine if their production costs stay around $6 per ounce with silver at $16 per ounce, we are talking a potential $25 million in earnings from mining operations next year!
If we were to value GPR at just 20 times their potential 2010 earnings from mining operations, we are talking a $500 million market cap! With approximately 91 million shares outstanding, that would value GPR around $5.50 per share!
(This is just me speculating, I am not an analyst and I am not making any projections or target prices.)
Keep in mind, I believe silver prices will rise substantially in 2010. Silver’s inflation adjusted high in 1980 was $130 per ounce and with the Federal Reserve printing trillions of dollars out of thin air and leaving interest rates at 0%, I believe inflation will soon get much worse than the inflation of the 1970’s.
Silver prices are extremely undervalued compared to gold. The Gold/Silver ratio is now 61 and historically it has always returned to 16. Therefore, based on gold’s current price of $996.70 per ounce, I believe silver deserves to be around $62.29 per ounce.
In my opinion, gold and silver mania is coming! Americans are about to wake up and realize that the U.S. dollar is the most risky asset and they will rush to get rid of their dollars and buy gold and silver!
Here is a link to GPR’s current quote: http://finance.yahoo.com/q?s=gpr.to and here is a link to GPR’s web site: http://www.greatpanther.com
I highly recommend reading GPR’s corporate presentation and watching their video presentation on their web site! Also, if you visit any of your friends or family members this holiday weekend… you might want to mention Great Panther to them because I think they might be thanking you big time soon!
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My firm Lebed Biz LLC has been compensated by a third-party (B&D Capital Partners) $20,000 cash for a one-month GPR investor relations contract. Never invest into a stock we discuss unless you can afford to lose your entire investment. For our full disclaimer go to: www.lebed.biz/disclaimer.htm
Jonathan Lebed
Lebed.biz
Staff