Great Panther Silver Ltd (TSE: GPR, NYSE: GPL) has reported a 38% year-on-year rise in its three months to end-March period, thanks to the normal operation of the Topia processing plant and an increase in gold prices.
The Topia plant in the Sierra Madre Mountains in Durango, north western Mexico, was suspended for planned upgrades in the first quarter last year, Jim Bannantine, president and chief executive officer said in a statement.
READ: Great Panther Silver sees 'significantly' improved production at Mexico mines in first quarter
In the first quarter, revenue rose to US$4.6mln.
As of end March, the company had cash and short-term deposits of US$60.9mln, compared with US$56.9mln end December 2017, up due to cash generated by operating activities, proceeds from its stock options exercise and foreign exchange gains on cash balances.
The company's production and cost guidance for the year ending 31 Dec 2018 remains unchanged. It has also maintained its guidance for capital expenditures and Exploration, Evaluation and Development (EE&D) expenses for the full year.
“We continue to focus our efforts on advancing the Coricancha project, and we expect to release an economic study before the end of this quarter.”
Bannantine added: “Our balance sheet remains strong and our cash position increased to just over $60-million as we continue to fund Coricancha from the cash flows from our operations in Mexico.
The company said based on historic production records, Coricancha in the central Andes of Peru, has the potential to add 3 mln AgEq ounces of annual production.
Great Panther Silver said depending on the outcome of the evaluations on Coricancha, “investments in connection with a restart of the mine could commence in 2018.”