By Alex Emery
Nov. 10 (Bloomberg) -- Pan American Silver Corp., the fifth-largest silver producer in Peru, said profit jumped by 46 percent in the third quarter as a new mine boosted silver output to a record and metals prices surged.
Net income rose to $23.9 million, or 31 cents a share, from $16.4 million, or 22 cents, a year earlier, the Vancouver-based company said today in a statement. A Bloomberg survey of four analysts had an average profit estimate of 34 cents a share. Revenue climbed 37 percent to $87.9 million.
Pan American, which has operations in Peru, Mexico, Bolivia, Argentina, Russia and the U.S., increased silver production by 38 percent to 4.5 million ounces in the period. Peru, where the company operates three mines, is the world's largest silver producer.
``With its large silver reserve base, Pan American has historically shown above-average leverage to both silver and base metal prices,'' said RBC Dominion Securities Inc. analyst Michael Curran, who rates the stock ``outperform.''
Silver prices rose 17 percent to $13.11 per ounce during the third quarter in London fixing. Zinc prices rose 16 percent and lead doubled.
Sales costs rose 31 percent to $49.2 million on rising production costs. Capital expenditures totaled $29.7 million, including $16.4 million for construction work at the company's Manantial Espejo mine in Argentina, which is scheduled to start producing in the third quarter of 2008.
Pan American, whose shareholders include Wells Capital Management, Barclays Plc and Deutsche Bank AG, fell for a third day, dropping C$1.15, or 3.4 percent, to C$32.79 in Toronto Stock Exchange trading yesterday. Earnings were released after market close. (bloomberg)
Nov. 10 (Bloomberg) -- Pan American Silver Corp., the fifth-largest silver producer in Peru, said profit jumped by 46 percent in the third quarter as a new mine boosted silver output to a record and metals prices surged.
Net income rose to $23.9 million, or 31 cents a share, from $16.4 million, or 22 cents, a year earlier, the Vancouver-based company said today in a statement. A Bloomberg survey of four analysts had an average profit estimate of 34 cents a share. Revenue climbed 37 percent to $87.9 million.
Pan American, which has operations in Peru, Mexico, Bolivia, Argentina, Russia and the U.S., increased silver production by 38 percent to 4.5 million ounces in the period. Peru, where the company operates three mines, is the world's largest silver producer.
``With its large silver reserve base, Pan American has historically shown above-average leverage to both silver and base metal prices,'' said RBC Dominion Securities Inc. analyst Michael Curran, who rates the stock ``outperform.''
Silver prices rose 17 percent to $13.11 per ounce during the third quarter in London fixing. Zinc prices rose 16 percent and lead doubled.
Sales costs rose 31 percent to $49.2 million on rising production costs. Capital expenditures totaled $29.7 million, including $16.4 million for construction work at the company's Manantial Espejo mine in Argentina, which is scheduled to start producing in the third quarter of 2008.
Pan American, whose shareholders include Wells Capital Management, Barclays Plc and Deutsche Bank AG, fell for a third day, dropping C$1.15, or 3.4 percent, to C$32.79 in Toronto Stock Exchange trading yesterday. Earnings were released after market close. (bloomberg)
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