TSX: GPR | NYSE American: GPL
(All dollar amounts expressed in US dollars unless otherwise
noted)
VANCOUVER, BC, Nov. 5, 2020 /PRNewswire/ - Great Panther Mining
Limited (TSX: GPR) (NYSE-A: GPL) ("Great Panther" or the "Company")
reports unaudited consolidated financial results for the third
quarter of 2020 (Q3 2020) from its three wholly owned mines: Tucano
in Brazil, and Topia and the Guanajuato Mine Complex (GMC) in
Mexico.
Great Panther will host a conference call and live webcast to
discuss the results at 9.00am
PST/12.00pm EST today,
November 5, 2020. Dial-in and login
details are provided at the end of this news release.
Great Panther President and CEO Rob
Henderson commented: "We delivered a solid quarter of steady
state operations at all of our mines in Q3 2020, despite the
challenges of managing COVID-19. Strong gold and silver prices and
continued improvement of our AISC translated to record financial
results and continued to strengthen the balance sheet. We are
well positioned to meet our full-year production and cost guidance
while maintaining the highest health and safety protocols for our
teams in Brazil, Mexico and Peru."
Q3 2020 Highlights
Financial
- Revenue of $77.0 million,
representing an 8% increase over Q3 2019
- Record net income of $18.6
million ($0.05 per share)
- Record mine operating earnings before non-cash
items1 of $42.1 million
($0.12 per share)
- Record adjusted EBITDA1 of $34.9 million
- Record cash flow from operating activities of $19.7 million ($0.06 per share)
- AISC excluding corporate G&A of $1,023 per gold ounce (oz) sold1
- Cash and cash equivalents at September
30, 2020 of $66.6 million
Operational
- Production of 39,788 gold equivalent ounces (Au eq
oz)2
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____________________________________
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1
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Throughout this news
release and the accompanying Management's Discussion and Analysis
for the period ended September 30, 2020 (the "Q3 2020 MD&A"),
Great Panther has included the non-Generally Accepted Accounting
Principles ("non-GAAP") performance measures cash costs per gold oz
sold, cash costs per payable silver oz, all-in sustaining costs
("AISC") per gold oz sold excluding corporate general and
administrative ("G&A") expenditures, AISC per gold oz sold,
AISC per payable silver oz, mine operating earnings before non-cash
items, cost of sales before non-cash items, adjusted earnings
before interest, taxes depreciation and amortization ("adjusted
EBITDA"), adjusted net loss and adjusted net loss per share.
Refer to the Non-GAAP Measures section of the Q3 2020
MD&A for an explanation of these measures and reconciliation to
the Company's financial results reported in accordance with
International Financial Reporting Standards ("IFRS"). As
these are not standardized measures, they may not be directly
comparable to similarly titled measures used by others.
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2
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Gold equivalent
ounces are referred to throughout this document. For 2020, Au
eq oz were calculated using a 1:90 Au:Ag ratio, and ratios of 1:0.
0006412 and 1:0. 0007554 for the price/ounce of gold to price/pound
of lead and zinc, respectively, and applied to the relevant metal
content of the concentrates produced, expected to be produced, or
sold from operations. The ratios are reflective of average
metal prices for 2020. Comparatively, Au eq oz for 2019 were
calculated using a 1:80 Au:Ag ratio, and ratios of 1:0.000795 and
1:0.00102258 for the price/ounce of gold to price/pound of lead and
zinc, respectively, and applied to the relevant metal content of
the concentrates produced, expected to be produced, or sold from
operations. The ratios are reflective of average metal prices
for 2019.
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Corporate
- Publication of inaugural Sustainability Report
For Q3 2020, Great Panther reported records for mine operating
earnings before non-cash items, net income, adjusted EBITDA, and
cash flow from operating activities as a result of the rise in gold
and silver prices. For the quarter, the average realized gold and
silver prices were $1,907 and
$26.07 per oz, respectively.
COVID-19 Response
Great Panther has developed and implemented robust COVID-19
prevention, monitoring and response plans following the guidelines
of the World Health Organization and the regulatory agencies of
each country in which it operates to ensure a safe work
environment. These plans include mandatory medical screening
and testing on arrival at site, requirements to report infection or
contact with those infected, restrictions on international travel
and any non-essential domestic travel, alternative work
arrangements, hygiene precautions and physical distancing
practices, among others. Specific areas have been prepared
for the isolation, testing and care of employees showing COVID-19
symptoms. Increased cleaning and sanitizing procedures have been
introduced, especially for frequently visited areas. Training
campaigns to educate all employees and contractors, their families
and local communities on preventive measures and hygiene best
practices continue regularly.
Additional information regarding Great Panther's COVID-19
response plan, preventive measures taken to date and the potential
impact on operations are available in the Q3 2020 Management's
Discussion and Analysis ("MD&A"), available on the Company's
website at www.greatpanther.com and on SEDAR at www.sedar.com.
Operating Highlights
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Q3
2020
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Q3
2019
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Change
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Nine months
ended
September
30, 2020
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Nine months
ended
September
30, 20191
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Change
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Total material mined
– Tucano (tonnes)
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5,687,291
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6,908,097
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-18%
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18,877,807
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13,486,171
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40%
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Ore mined – Tucano
(tonnes)
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381,865
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548,082
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-30%
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1,199,557
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1,186,788
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1%
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Ore mined – Mexico
(tonnes)2
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65,505
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65,372
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0%
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156,996
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198,034
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-21%
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Tonnes milled –
Tucano
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823,353
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747,498
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10%
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2,457,187
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1,660,347
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48%
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Tonnes milled –
Mexico (excluding custom milling)2
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65,393
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65,762
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-1%
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158,894
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199,303
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-20%
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Tonnes milled –
consolidated operations (excluding
custom milling)
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888,746
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813,260
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9%
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2,616,081
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1,859,650
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41%
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Plant gold head grade
(g/t) – Tucano
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1.31
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1.62
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-19%
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1.30
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1.45
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-10%
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Plant head grade (g/t
Ag eq) – Mexico2
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311
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373
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-17%
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316
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346
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-9%
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Gold oz produced –
Tucano
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31,803
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36,317
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-12%
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93,400
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71,380
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31%
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Gold oz produced –
consolidated operations
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34,031
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39,651
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-14%
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99,329
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81,405
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22%
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Au eq oz
produced3
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39,788
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47,374
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-16%
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113,054
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102,156
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11%
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Gold oz
sold
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35,179
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43,025
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-18%
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99,063
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81,064
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22%
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Au eq oz
sold2
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40,489
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50,118
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-19%
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112,029
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100,121
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12%
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Cash costs per gold
oz sold – Tucano3
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$
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804
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$
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1,063
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-24%
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$
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839
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$
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1,006
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-17%
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AISC per gold oz sold
– Tucano3
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$
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1,061
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$
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1,327
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-20%
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$
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1,209
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$
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1,268
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-5%
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Cash costs per gold
oz sold4
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$
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712
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$
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1,014
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-30%
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$
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808
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$
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976
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-17%
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AISC per gold oz
sold, excluding corporate G&A3
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$
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1,023
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$
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1,310
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-22%
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$
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1,221
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$
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1,272
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-4%
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AISC per gold oz
sold3
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$
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1,123
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$
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1,377
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-18%
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$
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1,331
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$
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1,378
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-3%
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____________________________________
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1
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The comparative data
presented for the nine months ended September 30, 2019 is for the
period from March 5, 2019 to September 30, 2019, the period for
which the Company owned Tucano following the acquisition of
Beadell.
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2
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Includes Topia and
the GMC.
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3
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Gold equivalent oz
are referred to throughout this document. For 2020, Au eq oz
were calculated using a 1:90 Au:Ag ratio, and ratios of 1:0.
0006412 and 1:0. 0007554 for the price/oz of gold to price/pound of
lead and zinc, respectively, and applied to the relevant metal
content of the concentrates produced, expected to be produced, or
sold from operations. The ratios are reflective of average
metal prices for 2020. Comparatively, Au eq oz for 2019 were
calculated using a 1:80 Au:Ag ratio, and ratios of 1:0.000795 and
1:0.00102258 for the price/oz of gold to price/pound of lead and
zinc, respectively, and applied to the relevant metal content of
the concentrates produced, expected to be produced, or sold from
operations. The ratios are reflective of average metal prices
for 2019.
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4
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Throughout this news
release and the accompanying Q3 2020 MD&A, Great Panther has
included the non-GAAP performance measures cost per tonne milled,
cash costs per gold oz sold, cash costs per payable silver oz, AISC
per gold oz sold excluding corporate G&A expenditures, AISC per
gold oz sold, AISC per payable silver oz, mine operating earnings
before non-cash items, cost of sales before non-cash items,
adjusted EBITDA, and adjusted net loss. Refer to the
Non-GAAP Measures section of the Q3 2020 MD&A for an
explanation of these measures and reconciliation to the Company's
financial results reported in accordance with IFRS. As these
are not standardized measures, they may not be directly comparable
to similarly titled measures used by others.
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Financial Highlights
(in thousands,
except per oz, per share and
exchange rate figures)
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Q3
2020
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Q3
2019
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Change
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Nine months
ended
September
30, 2020
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Nine months
ended
September
30, 20191
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Change
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Revenue
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$
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77,019
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$
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71,002
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8%
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$
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192,097
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$
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132,974
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44%
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Mine operating
earnings before non-cash items2
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$
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42,071
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$
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19,208
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119%
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$
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92,075
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$
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33,427
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175%
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Mine operating
earnings
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$
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31,892
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$
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7,472
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327%
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$
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61,723
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$
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11,891
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419%
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Net income
(loss)
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$
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18,635
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$
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(9,171)
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303%
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$
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(13,277)
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$
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(62,955)
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79%
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Adjusted net income
(loss)1
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$
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12,540
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$
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(920)
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1,463%
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$
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16,422
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$
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(14,859)
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211%
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Adjusted
EBITDA2
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$
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34,934
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$
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12,909
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171%
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$
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71,507
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$
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13,255
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439%
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Cash flow from
operating activities
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$
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19,661
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$
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20,011
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-2%
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$
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50,917
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$
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6,002
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748%
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Cash and short-term
deposits at end of period
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$
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66,648
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$
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27,275
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144%
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$
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66,648
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$
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27,275
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144%
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Net working capital
at end of period
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$
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24,996
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$
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12,752
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96%
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$
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24,996
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$
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12,752
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96%
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Earnings (loss)
per share – basic
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$
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0.05
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$
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(0.03)
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267%
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$
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(0.04)
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$
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(0.24)
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83%
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Earnings (loss)
per share – diluted
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$
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0.05
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$
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(0.03)
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267%
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$
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(0.04)
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$
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(0.24)
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83%
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Average realized gold
price per oz3
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$
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1,907
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$
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1,460
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31%
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$
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1,751
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$
|
1,388
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26%
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Average realized
silver price per oz3
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$
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26.07
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$
|
17.68
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47%
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$
|
20.33
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$
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15.98
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27%
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Brazilian real
(BRL)/USD
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$
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5.38
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$
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3.97
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36%
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$
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5.08
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$
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3.89
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31%
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Mexican peso
(MXN)/USD
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$
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21.77
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$
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19.43
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12%
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$
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21.68
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$
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19.26
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13%
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1
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The comparative data
presented for the nine months ended September 30, 2019 is for the
period from March 5, 2019 to September 30, 2019, the period for
which the Company owned Tucano following the acquisition of
Beadell.
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2
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The Company has
included the non-GAAP performance measures mine operating earnings
before non-cash items, adjusted EBITDA, and adjusted net income
(loss) throughout this news release and the accompanying Q3 2020
MD&A. Refer to the Non-GAAP Measures section of the Q3
2020 MD&A for an explanation of these measures and
reconciliation to the Company's financial results reported in
accordance with IFRS. As these are not standardized measures,
they may not be directly comparable to similarly titled measures
used by others.
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3
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Average realized gold
and silver prices are prior to smelting and refining
charges.
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Outlook
On a consolidated basis, Great Panther is on track to meet 2020
guidance of 146,000 to 158,000 gold equivalent ounces at AISC of
$1,150 to $1,250 per ounce of gold sold. At the GMC, AISC
for the nine months ended September 30,
2020 was $18.21 per payable
silver ounce, and full-year AISC is therefore expected to exceed
guidance. This is not expected to have a significant impact on
consolidated AISC.
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Tucano1
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Topia2
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GMC2
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Consolidated
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Gold production
(oz)3
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120,000-130,000
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–
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–
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120,000-130,000
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Silver eq production
(oz)4
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–
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1,200,000-1,300,000
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1,200,000-1,300,000
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2,400,000-2,600,000
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Gold eq production
(oz)
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120,000-130,000
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13,000-14,000
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13,000-14,000
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146,000-158,000
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Cash costs ($/oz
sold)
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$900-$1,000
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$15-16
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$9-10
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$900-1,000
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AISC ($/oz
sold)
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$1,150-1,250
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$21-22
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$13-14
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$1,150-1,250
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1
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Tucano costs are
presented per gold ounce sold. Cash cost and AISC guidance
for Tucano is based on an estimated BRL/USD foreign exchange rate
of 5.20. Actual results will differ.
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2
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Topia and GMC costs
are presented per silver payable ounce. Cash cost and AISC
guidance for Topia and the GMC is based on an estimated MXN/USD
foreign exchange rate of 21.75. Actual results will
differ. AISC for Topia and the GMC includes fixed costs
incurred during the mandatory shutdowns in April and May of 2020
related to COVID-19.
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3
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Gold equivalent
ounces are calculated using a 1:90 Au:Ag ratio. Figures are
rounded.
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4
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Silver equivalent
ounces for 2020 are calculated using a 90:1 Ag:Au ratio, and ratios
of 1:0.05770751 and 1:0.06798419 for the price/ounce of silver to
price/pound of lead and zinc, respectively.
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Refer to the Q3 2020 MD&A for more details of the financial
results and for reconciliations of the Company's non-GAAP
performance measures to the nearest GAAP measure. The full
version of the Company's unaudited condensed interim consolidated
financial statements for the three and nine months ended
September 30, 2020 and 2019 and the
Q3 2020 MD&A can be viewed on the Company's website at
www.greatpanther.com or on SEDAR at www.sedar.com. All
financial information is prepared in accordance with IFRS, except
as noted in the Non-GAAP Measures section of the Q3 2020
MD&A.
WEBCAST AND CONFERENCE CALL
A conference call and webcast will be held today, November 5, 2020, at 9.00
am PDT/12.00 pm EDT.
Shareholders, analysts, investors and media are invited to join the
live webcast and conference call by logging in or calling in five
minutes prior to the start time.
Live webcast and registration:
https://www.greatpanther.com/investors/webcasts/
Vancouver:
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+ 1 604 638
5340
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U.S. and Canada
toll-free:
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+ 1 800 319
4610
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International
toll:
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+ 1 604 638
5340
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A replay of the webcast will be available on the webcasts
section of Great Panther's website approximately one hour after the
conference call. Audio replay will be available for four weeks by
calling the numbers below using the replay access code 5384.
Vancouver:
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+ 1 604 638
9010
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U.S. and Canada
toll-free:
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+ 1 800 319
6413
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International
Toll:
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+ 1 604 638
9010
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ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on
the Americas. The Company owns a diversified portfolio of
assets in Brazil, Mexico and Peru that includes three operating gold and
silver mines, four exploration projects, and an advanced
development project. Great Panther is actively exploring
large land packages in highly prospective districts and is pursuing
acquisition opportunities to complement its existing portfolio.
Great Panther trades on the Toronto Stock Exchange trading
under the symbol GPR, and on the NYSE American under the symbol
GPL.
TECHNICAL INFORMATION
Scientific and technical information contained in this news
release have been reviewed and approved by Neil Hepworth, Chartered Engineer UK Chief
Operating Officer, a Qualified Person, as the term is defined in
National Instrument 43-101 - Standards of Disclosure for
Mineral Projects.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of
Canadian securities laws (together, "forward-looking statements").
Such forward-looking statements may include, but are not
limited to, statements regarding: (i) expectations of the Company's
production and cost guidance, ability to meet its production and
cost guidance under the heading "Outlook" and the impact of the GMC
AISC on the consolidated AISC in the news release; (ii) expectation
the Company will be able to maintain lower AISC and strengthen its
balance sheet; and (iii) the Company's plans to pursue acquisition
opportunities to complement its existing portfolio.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include:
the assumptions underlying the Company's Outlook of production and
cost guidance continuing to be accurate; continued operations at
all three of the Company's mines for the balance of 2020 without
significant interruption due to COVID-19 or any other reason;
continued operations at Tucano in accordance with the Company's
mine plan, including the expectations regarding the ongoing
geotechnical control of Urucum Central South ("UCS") where mining
re-started in the last week of October; the accuracy of the
Company's mineral reserve and mineral resource estimates and the
assumptions upon which they are based; ore grades and recoveries;
prices for silver, gold, and base metals remaining as estimated;
national and international transportation arrangements to deliver
Tucano's gold doré to international refineries continue to remain
available, despite inherent risks due to COVID–19; international
refineries that the Company uses continue to operate and refine the
Company's gold doré, and in a timely manner such that the Company
is able to realize revenue from the sale of its refined metal in
the timeframe anticipated, despite inherent risks due to COVID–19;
currency exchange rates remaining as estimated; capital,
decommissioning and reclamation estimates; prices for energy
inputs, labour, materials, supplies and services (including
transportation); all necessary permits, licenses and regulatory
approvals for the Company's operations are received in a timely
manner, including the granting of permits for Jolula TSF in time to
prevent interruption to operations, the sufficiency of the
Company's tailing storage facilities; the Topia TSF can be
remediated as planned; management's estimates in connection with
the assessment of provisions for loss and contingent liabilities
relating to legal proceedings may differ materially from the
ultimate loss or damages incurred by the Company; management's
estimates regarding the carrying value of its mineral properties
may be subject to change in future financial periods, which may
result in further write–downs and consequential impairment loss;
conditions in the financial markets; the ability to procure
equipment and operating supplies and that there are no material
unanticipated variations in the cost of energy or supplies; the
accuracy of the geological, operational and price and exchange rate
assumptions on which the production and cost guidance is based;
operations not being disrupted by issues such as mechanical
failures, labour disturbances and workforce shortages, illegal
occupations or mining, seismic events, and adverse weather
conditions; the Company's expectations that metallurgical,
environmental, permitting, legal, title, taxation, socio-economic,
political, marketing or other issues will not materially affect the
estimates or mineral reserves and mineral resources or its future
mining plans; and the Company's ability to comply with
environmental, health and safety laws. The foregoing list of
assumptions is not exhaustive.
These forward-looking statements involve known and unknown
risks, uncertainties and other factors that may cause the actual
results, performance or achievements expressed or implied by such
forward-looking statements to be materially different. Such factors
include, among others, risks and uncertainties relating to: the
impact of COVID–19 on the Company's ability to operate as
anticipated, including the risk of an unplanned partial or full
shutdown of the Company's mines and processing plants, whether
voluntary or imposed, which would adversely impact the Company's
revenues, financial condition and ability to meet its production
and cost guidance; the inherent risk that estimates of mineral
reserves and resources may not be accurate and accordingly that
mine production will not be as estimated or predicted; as the
Company's mines do not have established mineral reserves, except
for Tucano, the Company faces higher risks that anticipated rates
of production and production costs, such as those provided above
under the heading "Outlook", will not be achieved, each of which
risks could have a material adverse impact on the Company's ability
to continue to generate anticipated revenues and cash flows to fund
operations from and ultimately achieve or maintain profitable
operations; gold, silver and base metal prices may decline or may
be less than forecasted; fluctuations in currency exchange rates
(including the U.S. dollar to Brazilian real exchange rate) may
increase costs of operations; even though the geotechnical
consultant have approved the restart of mining the UCS pit in
the last week of October, there is no assurance that the Company
will be able to continue mining and be able to access the UCS
mineral reserves which may adversely impact the Company's
production plans and future revenues; operational and physical
risks inherent in mining operations (including pit wall collapses,
tailings storage facility failures, environmental accidents and
hazards, industrial accidents, equipment breakdown, unusual or
unexpected geological or structural formations, cave-ins, flooding
and severe weather) may result in unforeseen costs, shut downs,
delays in production and exposure to liability; planned exploration
activities may not result in conversion of existing mineral
resources into mineral reserves or discovery of new mineral
resources; potential political and social risks involving Great
Panther's operations in a foreign jurisdiction; the potential for
unexpected costs and expenses or overruns; employee and contractor
relations; relationships with, and claims by, local communities;
the Company's ability to obtain all necessary permits, licenses and
regulatory approvals in a timely manner, including the granting of
permits for Jolula TSF in time which if not granted could result in
an interruption to operations; changes in laws, regulations and
government practices in the jurisdictions in which the Company
operates; legal restrictions related to mining; the inability to
continue mining in the UCS pit at Tucano and operate the Topia TSF
as planned; diminishing quantities or grades of mineral reserves as
properties are mined operating or technical difficulties in mineral
exploration, changes in project parameters as plans continue to be
refined; the Company's inability to meet its production forecasts
or to generate the anticipated cash flows from operations could
result in the Company's inability to meet its scheduled debt
payments when due or to meet financial covenants to which the
Company is subject; ability to maintain and renew agreements with
local communities to support continued operations; there is no
assurance that the Company will be able to identify or complete
acquisition opportunities; and other risks and uncertainties,
including those described in respect of Great Panther, in its
annual information form for the year ended December 31, 2019 and material change reports
filed with the Canadian Securities Administrators available at
www.sedar.com and reports on Form 40-F and Form 6-K filed with the
Securities and Exchange Commission and available at
www.sec.gov.
There is no assurance that these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place
undue reliance on forward looking statements. Forward-looking
statements and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company
does not intend, nor does it assume any obligation to update or
revise forward-looking statements or information, whether as a
result of new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable law.
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content:http://www.prnewswire.com/news-releases/great-panther-reports-third-quarter-2020-financial-results-including-record-net-income-of-19-million-and-closing-cash-of-67-million-301166902.html
SOURCE Great Panther Mining Limited