Mining In Mexico with Great Panther

 

Richard (Rick) Mills

www.aheadoftheherd.com

 

†††††††††††††††††††† As a general rule, the most successful man in life is

††††††††††††††††††††††††††††† the man who has the best information

 

In 1992 mining laws were changed in anticipation of the North American Free Trade Agreement (NAFTA). The new laws allowed 100 percent foreign ownership of Mexican mines (except for hydrocarbons, radioactive materials and salt).

 

Under the Mexican Constitution the exploration, exploitation and beneficiation of the minerals will have preference over any other use for the land. Exploration concessions are granted for six years and are not renewable. There are no limits for the mining concession surfaces. Production concessions are awarded for 50 years and are renewable for a similar period.

 

In 1994 the North American Free Trade Agreement was implemented and the Peso was devalued. Because of low metal prices and a devalued Peso many walked away from toiling in the earth, shutting down their mines and finding new livelihoods.

 

But in the late Ď90ís a new era was beginning as Canadian miners quietly began to accumulate projects.

 

Great Panther Res. GPR:TSX

 

http://www.greatpanther.com/s/Home.asp

 

Great Panther is primarily a silver producer with two 100% owned operating mines in Mexico. The centerpiece of the Company's operations is the world class Guanajuato Silver-Gold Mine in the state of Guanajuato.

 

Great Panther also owns and operates the Topia Silver-Lead-Zinc Mine in Durango State.  The Company has increased production to a new all time high and is growing the resource base through continued surface drilling and underground development.

 

The Mapimi project is an advanced stage exploration project with a global resource of 28.6 million silver equivalent ounces that appears amenable to open pit mining.

 

Great Panther is one of the fastest growing silver producers in the industry - 313,000 oz in 2006 to 1.21 million oz in 2008. The company is strongly leveraged to future rises in the price of silver.

Free cash flow should show sustained quarter over quarter improvements and this should continue through 2009 and into 2010.

 

FIRST QUARTER HIGHLIGHTS

GPR recently released its second quarter production results and these numbers generated a huge sigh of relief among investors. Total metal production reached a new record, they negotiated a new lower cost concentrate sales contracts for Topia and have their first NI 43-101 compliant 5 million Ag eq oz resource for the Guanajuato Deep Cata Clavo zone.

This is definitely a company being steered in the right direction, hereís the second quarter production numbers:

Investing in Silver itself, through ETFís, has become the main driver of silverís bull market. In this authorís opinion the most leverage to silverís price rise is gained from investing in one, or a few, primary silver producers. Great Panther appears well-positioned to leverage silverís gains and to greatly reward investors over the course of this bull market.

Great Panther is going to continue to grow and is going to be one of the largest silver producers in Mexico. If youíre an investor looking at the PMís, in particular silver, then as strongly leveraged to future rises in the price of silver as GPR is, it definitely warrants your further DD.

Share Structure as of Tue Jun 2, 2009

 

Shares Issued: 86,789,521††

Warrants: 2,552,500††

Finder Warrants: 169,050††

Executive and Employee Options: 6,332,700(GPR has a policy of granting EVERY employee, not just officers and directors, stock options. These options cover every employee from the President to company secretaries working in Mexico).

Consultant's Options: 1,120,000††

Fully Diluted: 96,963,771

 

Treasury

 

Currently, the treasury has a little over $2 million. Great Panther management has been able to keep ahead of costs and a financing is not contemplated at this time.

As of March 31, convertible notes total $6 million: $2 million is due in 2010 and $4 million in 2011. 

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If you're interested in the junior resource market and would like to learn more please come and visit us at.

http://www.aheadoftheherd.com/

 

Richard (Rick) Mills

www.aheadoftheherd.com

rick@aheadoftheherd.com

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Bio - Richard is host of www.aheadoftheherd.com and invests in the junior resource sector. His articles have been published on over 60 websites including - Wall Street Journal, Kitco, USAToday, The Gold/Energy Reports, Gold-Eagle, Safehaven and Financial Sense.

 

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Legal Notice / Disclaimer

This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Richard Mills has based this document on information obtained from sources he believes to be reliable but which has not been independently verified; Richard Mills makes no guarantee, representation or warranty and accepts no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of Richard Mills only and are subject to change without notice. Richard Mills assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, I, Richard Mills, assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information provided within this Report.

 

Disclosure:

Great Panther Res. GPR:TSX is an advertiser on www.aheadoftheherd.com