Pan American Silver Corporation (NASDAQ: PAAS and TSX: PAA.) recently announced that they are on schedule to produce 21 million ozs of silver this year which is terrific news for the share holders of this stock. We are still of the opinion that silver will ultimately outperform gold before this bull run in precious metals comes to end.

Pan American has a 95% interest in the San Vicente mine, which is located in the Potosi department and is operated as a joint-venture with Bolivian state-owned COMIBOL. Over the past several years, mining operations at San Vicente were conducted on a limited basis, where ore was trucked to a small third party mill for processing. Given the discovery of the high grade Litoral vein system, Pan American decided in mid-2007 to invest in constructing its own processing facility and to increase the production rates.

Mr. Burns added: “Only two weeks ago we inaugurated the Manantial Espejo mine in Argentina. Now with San Vicente’s new processing plant in operation, we are right where we planned to be, setting ourselves up to produce 21.5 million ounces of silver this year.

This silver producer is making good progress and has recovered a little since trading as low as $8.39, PAAS closed yesterday at $18.09, however we believe that there is a lot to come.

Pan American Silver Corporation trades on the NASDAQ under the symbol of PAAS and on the Toronto Stock Exchange under the symbol of PAA. PAAS has a market capitalization of $1.58 billion, a P/E ratio of 59.07 with 80.77 million shares outstanding and an EPS of 0.31.

Have a sparkling day.

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