Pan American Silver (PAAS) is a mining company with projects spanning two continents. With its operations in The U.S., Mexico, Peru, Bolivia, and Argentina, the company is well diversified to withstand any sort of startles from the market. It is also the second largest producer of Silver in the world, making its presence through the Americas.

In addition to the Waterloo project in the United States, the company operates 6 mines in Mexico, 3 in Peru, 1 in Bolivia and 3 others in Argentina which include the Navidad project that is due to commence operations in 2017. This is after a positive negotiation and agreement with the newly elected president of Argentina, Mr. Mauricio Macri and the company’s Chairman, Mr. Ross Beaty.

Pan American Silver has a market capitalization of over $2.9 billion and its dividend payments have impressed over the last few years.

Now, there are a couple of ways that investors can invest in silver. They can buy Silver Bars to get in the bullion market, or simply buy silver coins via various platforms at reasonable premiums. The other invest-worthy way is of course through stocks and that’s why we are going to discuss Pan American Silver as an attractive option.

Why you should buy

Pan American Silver has demonstrated product growth over the years from producing 17M ounces of Silver in 2008 to producing up to 25M ounces of silver in 2015. The company also forecasts production to increase by further 3M ounces by 2018. This will be largely attributed to the planned expansions in La Colorada and Dolores mines in Mexico. And, after positive discussions between Mr. Beaty and President Macri with regard reopening the Navidad project in Argentina, Pan American Silver Corp’s future remains bright.

The company’s stock is up 165% YTD and is looking to maintain this momentum with the planned two mines expansions in Mexico well placed to take centre stage. Once completed the processing rates would certainly increase in upwards of 1800 tons per day which will directly translate to a 69% increase in annual silver production of about 7.7 million ounces. The Navidad project is an even much more exciting prospect with a projected production of up to 12 Million ounces of silver.

Additionally, at Pan American Dolores mine, the company will be able to save up to $9 million annually after connecting a new power line to the national grid. At the La Colorada mine expansion, the project is expected to be completed with up to 10% under budget. These measures coupled with other cost-cutting measures are anticipated to lead higher production rates at lower costs. And as silver prices continue to rise, so will profit margins.

Pan American Silver has a superior stand compared to other companies in the mining space. It’s no surprise the company is the second largest Primary Silver producer in the world. And with Zacks recently upgrading the stock to #1 Buy, while also tipping the stock to reach the $22 mark, it’s no doubt the company currently represents a strong buy. The Investment Research group’s price target would certainly indicate a potential upside of about 28% from the stock’s current price.

In the wake of some equities analysts such as Scotiabank, HSBC, and the Royal Bank of Canada upgrading Pan American Silver’s stock, this gives investors even more reason why the stock could certainly be a great buy for their respective portfolios. Scotiabank upgraded its rating on Pan American Silver from “Sector-Perform” to “Outperform” while HSBC reiterated a “buy” rating. No wonder at $16.92 today, the stock is still being viewed as a “strong buy.”

Conclusion

Precious metals have taken over the market this year with Gold and Silver being on the forefront, however, Silver is currently hedging out the Gold bullion with an over 30% gain compared to the yellow metal’s 23%. That said; at the moment it appears as though there cannot be a better precious metal manufacturer to invest in than Pan American Silver.

The Company’s stock has recently pulled back after prolonged periods of upward movement giving rational investors ample time to jump in and buy. The buy option certainly looks promising with prices of Silver and Gold in an upward trend this year.

Pan American Silver price is projected to rise for the current fiscal year by about 57.9%. This is not translated into the price as of yet, but given recent expansions and continued explorations, the company is projecting this year’s earnings to grow, and of course this can only mean one thing – the stock price could rise as well.