Today, Great Panther Silver (GPL) announced its intention to purchase all the shares of Beadell Resources (BDREF). In this article, I am discussing this deal.
Introduction
Great Panther
Currently, Great Panther operates two mines in Mexico: the GMC complex and the Topia mine. Unfortunately, the GMC complex is a high-cost mine with an all-in sustaining cost of production (AISC) of $16.28 per ounce of silver equivalent (2Q 2018). It means that at current silver prices ($14.3 per ounce), the complex is cash flow negative. The second mine, Topia, is much better