MxMining

Even through there's been a thrashing of metal prices in the last few months Pan American Silver keeps on winning with their two operating silver mines in Mexico. Their mine profits might be taking a hit from a lower silver price in the past few months but it's probable that the markets could knock a couple more dollars off the price and Pan American Silver would still be in the green.

PanAm says that Alamo Dorado Mine in the state of Sonora had a total cash cost per ounce in the year 2007 of just US$4.41. The Alamo Dorado Mine produced over 3,800,000 ounces of silver and over 13,000 ounces of gold during the same period.

Located more in the south the La Colorada Mine in the state of Zacatecas had a total cash cost per ounce in the year 2007 of US$6.88.

The La Colorada Mine produced over 3,900,000 ounces of silver, about 3,800 ounces of gold and even some zinc and lead. The higher cash cost per ounce in the La Colorada Mine is likely due to the more expensive underground exploitation verses the open pit in the Alamo Dorado Mine.

The price of Pan American Silver shares has dropped from about $35 only three months ago to around $15 these days. Historically you'd have to travel back to 2004 to get in on Pan American Silver shares at the same price that they are today.

Many fortunes have been made by taking hold of opportunities that arise during economic hard times - my opinion is this undervalued share price may just be one of those opportunities.