Q: Your opinion on PAAS after the results please? Buy/Sell/Hold. Thanks.
5i Research Answer:
Silver and PAAS are starting to act well, with the stock now up 30% YTD. EPS of 1c beat estimates of -6.4c. Revenue of $601.4M matched estimates. EBITDA of $159.2M beat estimates by 11%. EPS fell year over year but production rose slightly to 5.01M ounces. Gold production rose 82%. Revenue rose 54%. Guidance was affirmed. With strong cash flow the balance sheet is improving rapidly, and we could see buybacks or dividend hikes down the road. All-in production costs were $16.63 per ounce, better than expected. We have considered PAAS one of the better silver stocks for some time. Finally, its fundamentals are showing that it is and we would view it as a BUY.