Silver Market Gets Difficult for Great Panther and Coeur d'Alene Mines
August 22 2011 - 8:16AM
Marketwired
Silver stocks have been exceptionally volatile of late as concerns
surrounding the global economy led analysts to question industrial
demand for the metal. While silver is considered a safe haven
asset, half of the metal's demand comes from industrial consumption
which could drop off in the event of a long-term economic slowdown.
The Bedford Report examines the outlook for companies in the Silver
Industry and provides equity research on Coeur d'Alene Mines
Corporation (NYSE: CDE) (TSX: CDM) and Great Panther Silver Ltd.
(NYSE Amex: GPL) (TSX: GPR). Access to the full company reports can
be found at:
www.bedfordreport.com/CDE
www.bedfordreport.com/GPL
Disappointing reports on jobless claims and factory orders have
created doubt about industrial demand for silver, which is used for
batteries, brazing and soldering, bearings and high-end
electronics. The Commerce Department said factory orders fell 0.8
percent in June, indicating lower demand for factory goods for the
second time in three months.
In China, roughly 70 percent of the country's silver demand
comes from the industrial sectors. Chinese customs data for June
showed that net silver imports had fallen for the third consecutive
month, with June levels of 175 mt down 46 percent from a year
ago.
The Bedford Report releases stock research on the Silver
Industry so investors can stay ahead of the crowd and make the best
investment decisions to maximize their returns. Take a few minutes
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Maintaining production costs is critical for all silver
companies looking to capitalize on current market conditions. Last
month Great Panther Silver Ltd. reported a 6 percent drop in
second-quarter silver production due to lower ore grades, and said
it expects a fall in revenue in the quarter. The miner sees revenue
falling on shipment delays and higher refining charges, which
resulted in higher stockpiles of ore.
In the second quarter, Coeur d'Alene reported net metal sales of
$231.1 million, which represents a 16% increase over the prior
quarter and is 129% higher than last year's second quarter. The
company is boosting its second half exploration expenditures by 67%
to approximately $14.0 million to accelerate drilling activities at
Palmarejo, Rochester and Joaquin due to ongoing positive
results.
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