Roth has hiked its price target on Great Panther Mining Limited (NYSEAMERICAN:GPL) (TSE:GPR) after production beat estimates and the firm enjoyed a recent US$21 million cash injection.
Analyst Jake Sekelsky lifted the target on the stock to US$1 a share from US$0.80 previously (current stock price in New York: US$0.52).
Great Panther, which operates mines in Mexico and Brazil, kicked off this year with gusto by announcing a US$11.25 million gold doré prepayment agreement with a Samsung subsidiary. That came shortly it unveiled an offtake deal with IXM Group worth US$10 million.
Sekelsky sees the cash boost as a "significant de-risking" event for the firm.
He says Great Panther now has the 'necessary working' capital to move forward with the technical review at the Tucano gold mine in Brazil aimed at bringing the project's UCS pit back into production in 2021.
Output from the Urucum Central South pit (UCS) was suspended last October due to a technical issue, while production was accelerated from the Urucum North and Urucum South pits.
Sekelskly noted that his estimates continue to omit tonnage from the UCS pit and sees the pit coming back online as additional upside to the broker's existing valuation.
Last year, consolidated group production totaled 146,853 gold equivalent ounces, which topped Roth's estimate of just under 140,000 gold equivalent ounces.
"We attribute the production beat primarily to higher than anticipated 4Q19 production at Tucano as production from Mexico was in line with expectations," said the analyst.
"Gold production at Tucano was higher than anticipated in 4Q19 and totaled 34,181 ounces, compared with our estimate of 31,057 for the quarter," he added.
Roth repeated a 'Buy' on the shares.
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