Great Panther Silver Ltd - GPL (USA)

Great Panther Silver Reports 30% Increase In Metal Production For 2015 To Record 4.16 Million Silver Equivalent Ounces

The Top 5 Micro-Cap Silver Stocks for 2016
By J.B. Maverick

After a few years in a downturn, silver mining stocks may start shining again for investors in 2016. Silver stocks, along with the price of silver, have mostly been in a slide since 2011-2012, following a strong 10-year bull market. But after a severe downside correction over the past five years, a number of market analysts are predicting silver prices, and therefore the fortunes of silver-mining companies, will begin turning around to the upside in 2016. Few analysts believe the 2011 high in silver prices, around $48 an ounce, is "the" high for silver for the first half of the 21st century. With the spot price for silver hanging around $14 an ounce in early January 2016, there is plenty of room on the upside. While global stock markets are off to their worst start in decades, precious-metals mining stocks may significantly outperform the overall market in 2016.

There are a number of reasons to suspect silver and silver stocks may have bottomed out and be poised for a 2016 rally. The silver industry curtailed production in 2015 in response to low silver prices, with U.S. mines producing about 50,000 fewer kilograms than in 2014. The Silver Institute projects higher demand from both investors and silver jewelry buyers in 2016. These two conditions may combine to apply some fundamental supply and demand pressure on the silver market sufficient to drive prices higher. Additionally, a nearly 20% drop in investor interest in silver in 2015 indicates most short-term investors have been cleared out of the market already, which may pave the way for prices to move higher.

If silver spot prices turn to the upside, silver miners should follow suit. Given the fact that during bull markets, smaller silver-mining companies tend to outperform the larger ones, a number of micro-cap silver miners may prove to be among the best-performing silver stocks. The following are five of the most-promising micro-cap silver stocks for 2016.

1) Great Panther Silver Ltd.
Founded in 1965 in Vancouver, Canada, Great Panther Silver Ltd. (NYSEMKT: GPL) mines for silver, gold, lead and zinc in Mexico. It owns the large Topia mine in Durango and the Guanajuato silver and gold mine in the Guanajuato Mining District. The company also has several other mining projects in development. Great Panther's market-cap value is $62 million. As of mid-January 2016, the company's stock is trading at 44 cents, with a 52-week range from 30 to 78 cents per share. Great Panther ended the third quarter of 2015 on a positive note, with production costs maintained below the spot price of silver and with its balance sheet showing zero debt and over $18 million in cash. With steadily increasing production, Great Panther is poised to do well if silver prices turn north. The company's stock traded as high as $4.50 a share in 2011.