Precious metals producer Great Panther Silver Ltd (TSX:GPR; NYSE:GPL) has maintained its production and cost guidance for full year 2018 as it posted second quarter numbers for its Mexico mines.
Tonnes milled in the three months were lower than the previous quarter and the same period of 2017 due to heavy rainfall, and a higher proportion of harder ores from the San Ignacio mine, which reduced processing capacity.
At its Guanajuato complex, the San Ignacio mine accounted for 70% of the total ore processed at the project in the period, against 55% in the same quarter of 2017. Consolidated metal production across both the firm's producing mines (GMC and Topia mine) decreased 9% to around 1.002mln silver equivalent ounces.At GMC, production was 643,432 silver equivalent ounces - an 8% decrease compared to the previous quarter,
At Topia, total production was 358,737 silver equivalent ounces, an increase of 7% over the previous quarter. The rise was attributed to higher silver grades due to the increased proportion of production from higher silver grade zones and improved metallurgical recoveries.
"While production during the second quarter was somewhat lower than planned due to heavier than usual rainfall at our Guanajuato Mine Complex, we continue to expect to meet our production guidance for 2018", James Bannantine, Great Panther's president and chief executive, told investors.
"In addition, we are very pleased with the positive results of our recently announced preliminary economic assessment for the Coricancha mine in Peru.
"We have now begun preparations for the bulk sample program and look forward to providing further updates as we continue to advance the project."
Great Panther noted that it was repeating its 2018 production, cash cost and AISC (all in sustaining costs) guidance but cautioned that cash cost and AISC were very sensitive to the Mexican peso foreign exchange rate and metal prices.
The miner puts total silver equivalent production for the year at between 4mln and 4.1mln ounces, with cash costs of US$5 to US$6.50. ASIC is put at US$12.50 to US$14.50.
Shares eased 0.67% to C$1.48 each in Toronto.