August 21, 2015 at 05:49PM
- PAAS is in recovery mode despite weak second quarter results as investors seem to have recognized the company’s long-term potential.
- PAAS has struggled due to weak silver prices, but this could change as silver demand has improved substantially of late while supply is coming down, creating a favorable pricing scenario.
- PAAS is shifting its operations from open-pit mining to underground mining, which will increase its recovery rate to 90%-95% from 65%-85%, leading to better production at lower costs.
- Due to its focus on underground mining, cash costs and AISC were down 24% and 20%, respectively, last quarter and more reductions cannot be ruled out.
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