Pan American Silver CorporationPAAS

Morningstar Rating

Stock Research and Analysis

by Vahid Fathi, D.Sc.

Pan American Silver is an up-and-coming silver and base metal producer with an ambitious silver output target of 25 million ounces by 2009. Its history of production growth is indeed impressive. Thanks to very high zinc prices, as well as reasonably Read more

Bulls Say

Pan American has been increasing production significantly. If silver prices remain high, revenue will skyrocket.

Commodity producers tend to be countercyclical and provide an excellent hedge against inflation.

Pan American is poised to report profits on a continued basis. Read more

Bears Say

Lower-risk alternatives exist for investors wanting exposure to precious metals. Precious metal mutual funds or exchange-traded funds provide exposure to gold prices without company-specific risk.

Pan American uses relatively high price assumptions to calculate its reserves. In a downturn, the company might have substantial write-downs.

Pan American's cost structure is not the best in the industry. Even with new lower-cost mines coming on line, returns on investment might not be satisfactory. Read more

Strategy

Pan American Silver's previous ambitious objective to become the largest primary silver producer in the world, with annual silver production growing to 25 million ounces by 2009, is within its reach. Read more

Management

President and CEO Geoffrey Burns has more than 25 years' experience in the precious metal mining industry. He joined Pan American in 2003 after serving as senior vice president and chief financial officer of Coeur d'Alene Mines CDE. Before this, Burns Read more

Profile

Pan American Silver is a mining company focused exclusively on exploring for and developing silver mines. The company operates primarily in Mexico and Peru. It also sells Read more

First Name

Last Name

Email Address

Zip Code

Create Password

Verify Password

(6-15 characters; case sensitive)

What is your occupation or job title?

Select...

Your registration indicates agreement to the terms of use.

Why Housing Could Come Back with a Vengeance
Watch more