This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

How to Buy Silver Stocks

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

Pan American Silver (PAAS - Get Report) represents 11.58% of SIL, or 1 million shares worth $43.2 million.

Company Profile

Pan American Silver has seven operating mines in the Americas and Bolivia. At the end of 2009, the time period with the most recent reserve estimates available, Pan American had proven and probable reserves of 40.6 million tons or 1.3 trillion ounces.

The company's exploration budget for 2010 was $23.6 million as the company actively explored existing operations and surrounding land areas. Its two main projects are Brownfield and Greenfield. The focus on the former will be on reserve replacement and drilling 89,000 meters to examine known deposits; Greenfield's operations will focus on new discoveries as well as 94,000 meters of drilling.

Income Statement

Pan American reported third-quarter net income of $28.8 million, or 27 cents a share, up 66% from a year earlier. Silver production was 6.2 million ounces, down slightly from a year earlier, due to lower silver grades at its Peruvian mines. The company did announce record sales of $161.3 million due to a higher quantity of silver, zinc and lead which offset a lower amount of gold and copper. Gold production was 21,277 ounces.

Cash costs for silver were $6.08 an ounce, higher than expected due to stronger local currencies and higher operating costs. Pan American was still able to lock in near record cash flow of $50.7 million, or 47 cents a share. Pan American says it's on track to produce 23.4 million ounces of silver in 2010 at cash costs of $5.90.

Balance Sheet

As of the end of the third quarter, Pan American had net working capital of $360.5 million and cash and short-term investments of $288.4 million. The company has $21.05 million in total debt, up $20 million from a year earlier.

The company pays a dividend of 5 cents a share, and, according to TheStreet Ratings, can cover any short-term cash needs. TheStreet Ratings has a buy rating on the stock.

Analyst Ratings

Pan American Silver currently has nine buy ratings, three holds and two sells with an average price target of $45.44. The stock trades at a P/E ratio of 44.01, well above its peers. Shares returned 74.56% in 2010.

4 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
CDE $5.04 0.00%
HL $3.09 0.00%
PAAS $9.13 0.00%
SIL $8.76 0.00%
SLW $19.62 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs