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Roth reiterates Great Panther Mining's Buy rating as it expands focus to gold

Shares of the intermediate precious metals company rose on Wednesday
Tucano mine
Roth analysts wrote that Great Panther Mining's newly acquired Tucano gold mine is viewed as a 'key value driver'

Roth Capital Partners reiterated its Buy rating and price target for Great Panther Mining (TSE:GPR) (NYSEAmerican:GPL) on Wednesday – and the precious metals producer's shares responded, with a 2.4% bumpt to C$0.98 in Toronto and 2.4% to US$0.97 in New York. 

Roth stuck to its Buy rating and $1.80 price target for the intermediate precious metals producer, which is focused on Latin America. 

On Wednesday, Great Panther released its first quarter 2019 production results on Tuesday from its three mines, including the recently acquired Tucano Gold Mine in Amapá State, Brazil, and two silver mines in Mexico: the Guanajuato Mine Complex and the Topia Mine.

READ: Great Panther Mining releases promising production results from projects in Brazil and Mexico

In its report, Roth analysts highlighted the closing of Great Panther Mining's acquisition of Beadell Resources and the Tucano Gold mine, adding that in its view, it has elevated the company to an intermediate precious metals producer.

The company has increased its exposure to gold, which prompted a name change from Great Panther Silver to Great Panther Mining.

"With the increased size of the combined entity, we believe a stronger capital markets presence could result in a re-rating of the company," wrote Roth analysts. "In short, we view the transaction as transformational step forward in the company's goal of becoming a large Latin American focused precious metals producer."

Tucano gold mine a 'key value driver'

In its report, Roth Analysts also wrote that Great Panther's newest mine, the Tucano gold mine, is viewed as a "key value driver," adding "the integration of the Tucano Mine appears well underway as management is currently focused on commissioning the supplemental oxygen supply, which is expected to allow for the processing of higher-grade material and increase overall recoveries."

For now, Roth's existing estimates have not incorporated production from Tucano, but plans to revisit this following Great Panther's 1Q 2019 financial results. 

Roth also highlighted potential risk factors, which could include underperformance of commodity prices going forward. 

Shares of Great Panther were at C$1.29 in Toronto on Tuesday, and US$ 0.95 in New York.

Contact Katie Lewis at [email protected]

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