NEW YORK (TheStreet) -- Shares of Great Panther Silver Ltd. (GPL - Get Report) are up 3.31% to $1.44 after it announced the amount of ore processed in the second quarter increased by 20% to a record 80,964 tonnes, compared to a year ago.
The mining company also said it anticipates growth to continue, as it ramps up production at San Ignacio, which is its satellite operation to the main Guanajuato Mine Complex.
TheStreet Ratings team rates GREAT PANTHER SILVER LTD as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GREAT PANTHER SILVER LTD (GPL) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- GREAT PANTHER SILVER LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, GREAT PANTHER SILVER LTD swung to a loss, reporting -$0.09 versus $0.03 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 147.2% when compared to the same quarter one year ago, falling from $1.28 million to -$0.60 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Metals & Mining industry and the overall market, GREAT PANTHER SILVER LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to $1.22 million or 64.46% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The gross profit margin for GREAT PANTHER SILVER LTD is rather low; currently it is at 24.97%. Regardless of GPL's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, GPL's net profit margin of -4.67% significantly underperformed when compared to the industry average.
- You can view the full analysis from the report here: GPL Ratings Report