Has Pan American Silver Corp. (USA) (PAAS) Become the Perfect Stock? – Hecla Mining Company (HL), First Majestic Silver Corp (AG)

Pan American Silver Corp. (USA) (NASDAQ:PAAS) in particular has had a hard time getting approval for its flagship Navidad mine in Argentina. In a difficult political environment within the South American nation, Pan American had to fight against draft legislation last summer that would have approved the mine but only with higher royalties and other concessions that would have made the mine uneconomical. As a result, the company has chosen to defer plans to develop Navidad as well as having walked away from its La Preciosa venture with Orko Silver Corp. (USA) (PINK:OKOFF).

Unfortunately, La Preciosa has become a lightning rod for buyout activity, as both First Majestic Silver Corp (NYSE:AG) and Coeur d’Alene Mines Corporation (NYSE:CDE) have bid for the mine. That indicates that Pan American left money on the table by not focusing more attention to the joint venture.

For Pan American to improve, it either needs the Argentine government to make major concessions or for its other mining properties to perform well. Otherwise, Pan American Silver Corp. (USA) (NASDAQ:PAAS) could languish for a long time.

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The article Has Pan American Silver Become the Perfect Stock? originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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