Jim Bannantine, Great Panther Silver: Hot Equity Markets, Strong US Dollar Can't Last Forever

TL;DR

Great Panther Silver announces the acquisition of Bedell Resources, providing scale, operational turnaround, and entry into the Brazilian market.

Transcript

I'm Charlotte McLeod with the investing news network in here today with me is Jim Bannatyne president and CEO of great Panther silver thanks so much for joining me today morning Charlotte it's nice to be here yes we're here right now at the Denver Gold Forum and at the start of the week you announced plans to acquire Bedell resources can you share ... Read More

Key Insights

• 🎚️ The acquisition of Bedell Resources by Great Panther Silver provides growth opportunities and market entry in Brazil, expanding the company's portfolio and production levels.
• 💪 Great Panther's strong balance sheet and liquidity benefit Bedell shareholders, eliminating debt and providing access to institutional shareholders.
• ✋ Gold and silver price fluctuations impact Great Panther, but the company remains optimistic about higher prices in the future.
• 🇲🇽 The closure of the Bedell acquisition and steady operations in Mexico are important catalysts for Great Panther's growth.
• 🤩 The potential restart of the Coricancha project and the continued turnaround of Bedell's operations are key focuses for Great Panther.

Questions & Answers

Q: What are the key points of Great Panther's acquisition of Bedell Resources?

The acquisition allows Great Panther to gain scale with increased production levels and enter the Brazilian market. Bedell shareholders benefit from accessing Great Panther's balance sheet and eliminating debt.

Q: How does the acquisition combine Great Panther's balance sheet with Bedell's assets?

Great Panther brings a strong balance sheet with $60 million in cash and no debt. Bedell, on the other hand, has gone through an operational turnaround but still carries debt. The combination solves both companies' problems.

Q: Why is Bedell interested in getting listed on the Toronto Stock Exchange?

Bedell wanted to join a TSX-listed company to access the liquidity and institutional shareholder base. The acquisition allows Bedell shareholders to become part of Great Panther, listed as GPR on the Toronto Stock Exchange and GPL on the New York Stock Exchange.

Q: How do gold and silver price fluctuations affect Great Panther as a company?

While the current gold and silver prices are unfavorable, Great Panther can still make money. However, the company expects higher prices in the mid and long term. The prices are heavily influenced by US equity markets and the strength of the dollar.

Summary & Key Takeaways

• Great Panther Silver announced the acquisition of Bedell Resources, benefiting both companies by combining resources and providing a 150,000 ounce production level.

• This acquisition takes Great Panther into Brazil, where Bedell Resources is based, and gives Bedell shareholders access to Great Panther's balance sheet and liquidity.

• Bedell Resources brings a large gold asset to Great Panther's portfolio, with 2,500 square kilometers of exploration property and expected gold production of 130,000 ounces this year and 160,000 ounces next year.