logo-loader

Great Panther Mining target price raised at Roth Capital following “significant” resource increase at the company’s Tucano mine in Brazil

Published: 14:22 16 Dec 2020 EST

Great Panther Mining Limited -
Roth Capital extended the Tucano mine life estimate from 2022 to 2024, which it believes will be a “a key driver for the company”

Great Panther Mining Ltd (TSE:GPR) (NYSEAMERICAN:GPL) received a target price increase from Roth Capital, from $1.25 to $1.50 per share, following the company’s recently announced updated reserve and resource estimate for its flagship Tucano gold mine in Brazil.

On December 15, Great Panther Mining reported an updated reserve estimate at Tucano, which included 629,000 ounces of gold with 299,000 ounces in the open-pit category.  Measured & Indicated (M&I) resources increased to 953,000 ounces of which 561,000 were in the open pit.  And, its Inferred resource totaled 534,000 ounces of gold.

“While this resource increase was encouraging, we note that further regional and near resource exploration could drive further upside,” the Roth Capital analysts said. 

READ: Great Panther is taking its Tucano gold mine to the next level in Brazil

They added: “We had previously included a $30 million premium to our DCF for exploration success. Following this increase in resources, we are cutting that premium to $20 million, but note the increase to our DCF from the 2020 drilling program has already exceeded the original $30 million premium.”

The brokerage firm reiterated its Buy rating on Great Panther Mining stock, as it has extended the Tucano mine life estimate from 2022 to 2024, which it believes will be “a key driver for the company.”  

Roth Capital’s target price increase also takes into consideration the company's resource update at the Guanajuato Mine Complex in Mexico from November 2020.

Tucano is the second-largest gold producer in Brazil, generating about 150,000 ounces per year from several open pits, and is sitting on a multi-million-ounce deposit.

Great Panther operates three mines including the Tucano gold mine in Amapá State, Brazil, and two mainly silver mines in Mexico. These Mexican assets are the Guanajuato Mine Complex, consisting of two mines Guanajuato and San Ignacio - and the Topia mine.

Shares of Great Panther Mining rose 3% to $1.06 in Wednesday's trading session.

---Updates for share price---

Contact Sean at sean@proactiveinvestors.com

Great Panther Mining looking for better production in 2022 after challenging...

Great Panther Mining CEO Rob Henderson joined Steve Darling from Proactive to share news the company has released their 3rd quarter financials which showed the challenges the company has faced with lower than planned production. Henderson discusses the reason behind those challenges at their...

on 11/04/2021