Boston, MA 06\/20\/2014 (wallstreetpr) \u2013\u00a0Pan American Silver Corp. (USA) (NASDAQ:PAAS)<\/b> has had costly challenges in Argentina, but the company is positive about its operation prospects in the South America nation. There are signs that the ban on open pit mining activities could be lifted this year, which would allow the company to resumes its stalled operations.<\/p>\n
The devaluation of Argentina\u2019s currency also bodes well for the silver miner, although there might not be a big impact on the currency value front because of the stagnant silver prices. As if show its preparation to resume stalled operations in Argentina, Pan American Silver (NASDAQ:PAAS) has allocated $95.5 million for capital spending this year, of which the same would go into expansion work in Mexico and Argentina.<\/p>\n
Costly writedown<\/b><\/p>\n
The company, two years ago, suffered $100 million writedown in relation to silver project at its Navidad facility. In addition to Navidad, Pan American Silver Corp. (USA) (NASDAQ:PAAS) also owns the Manantial Espejo silver-gold facility and gold deposit at Calcatreu in Argentina.<\/p>\n
According to Pan American Silver (NASDAQ:PAAS) CEO Geoff Burns, there is optimism about the positive developments down there in Argentina, especially the efforts by the country to attract foreign investment.<\/p>\n
Perhaps the improving investment climate in the country can be seen in First Quantum Minerals\u2019 bid for Lumina Copper Corp.<\/p>\n
According to Arnold Van Graan, a CIBC World Markets analyst, there are genuine hopes that the situation is repairing in Argentina from an investment standpoint. He noted that the developments could lead to a positive impact for Pan American Silver, which has been troubled by the 2012 tabling of new mining legislation in the country.<\/p>\n
Although Van Graan believes that there are interesting developments for Pan American Silver (NASDAQ:PAAS) with respect to the investment environment in Argentina, he maintains a \u201csector perform\u201d rating on the stock with a price target of $15.25, citing the poor silver prices.<\/p>\n
The cost of poor prices<\/b><\/p>\n
Pan American Silver Corp. (USA) (NASDAQ:PAAS) suffered a net loss of $293 million on revenue of $824 million in 2013, because of impairment charges linked to its Dolores mine in Mexico. The charges resulted from lower metal prices and high taxes. The company looks to improve production in efforts to offset the impact of stagnant prices.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 06\/20\/2014 (wallstreetpr) \u2013\u00a0Pan American Silver Corp. (USA) (NASDAQ:PAAS) has had costly challenges in Argentina, but the company is positive about its operation prospects […]<\/p>\n","protected":false},"author":9,"featured_media":26748,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[7543,7542],"stock_ticker":[],"class_list":["post-26741","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-nasdaqpaas","tag-pan-american-silver-corp-usa-nasdaqpaas","entry"],"acf":[],"yoast_head":"\n