UPDATE: Bank of America Reduces PO to $18 on Pan American Silver Corp on Regulatory Hurdles in Argentina

Bank of America reiterates its Underperform rating on Pan American Silver Corp

and reduces its price objective from $22 to $18. Bank of America comments, "Pan American disclosed today that, as expected, the governor of Chubut Province in Argentina submitted to the provincial legislature a draft law to regulate all future oil & gas and mining activities in the province. While this draft law would allow for the rezoning of open pit mining, which would be good news for the development of PAAS's Navidad project, this same legislation also contains a punishing mix of increased royalties and government economic participation for all projects in Chubut. PAAS noted that the combination of the draft legislation and inflationary environment in Argentina will render the Navidad project uneconomic." PAAS closed at $16.23 on Monday.