11.23
RBC CM is marking to market the remainder of 2009, which raises its full-year silver price forecast from $13.25 to $14.50/oz. For 2010, RBC CM has increased its silver price forecast from $13.50 to $15/oz and long-term from $13 to $15/oz for valuation purposes. Pan American has been a solid growth story, increasing attributable annual silver production from 13MMoz in 2006, to just under 23MMoz expected in 2009. Pan American shares have been rewarded by investors with premium multiples and high leverage to the silver price. While the new projects do show potential to become future mines, RBC CM forecasts Pan American’s silver production levels to remain around current levels for the next few years (roughly 21MMoz/yr). Despite these changes, RBC CM still considers PAA shares to be undervalued and attractive at current price levels.
No Comment.
Add Your Comment