Pair Trade: PAAS/AG

Pan American Silver Corp

Industrial/Transportation


Presented:08/31/2016
Price:$17.41
Cap:$2.65B
Current Price:$22.29
Cap:$8.09B

Presented

Date08/31/2016
Price$17.41
Market Cap$2.65B
Ent Value$2.35B
P/E RatioN/A
Book Value$8.77
Div Yield0%
Shares O/S152.42M
Ave Daily Vol3,357,049
Short Int0.80%

Current

Price$22.29
Market Cap$8.09B
Pan American Silver Corp. is a silver mining company, which provides investors with the best investment opportunity to gain real exposure to silver prices. It engages in silver mining and related activities, including exploration, mine development, extraction, processing, refining and reclamation. The company owns and operates silver mines located in Peru, Mexico, Argentina, and Bolivia. Pan American Silver was founded by Ross J. Beaty and John J. Wright in April 1994 and is headquartered in Vancouver, Canada.

Pair Trade: Long—Pan American Silver Corp (PAAS) & Short—First Majestic Silver Corp (AG)

Publicly traded companies mentioned herein: First Majestic Silver Corp (AG), Franco Nevada Corp (FNV), Pan American Silver Corp (PAAS), Silver Wheaton Corp (SLW)

Highlights

The presenters is long shares of Pan American Silver (PAAS) and short shares of First Majestic Silver (AG) in a pair trade, and states that despite the commodity involvement, the trade is “not necessarily taking a position on silver,” but rather based on the idea that PAAS and AG have essentially the same asset, but are valued differently. He explains that PAAS produces “substantially more” than AG and that there’s no reason for the two companies to trade at parity.

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Idea Discussion

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