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Great Panther Silver building foundation for growth next year

The firm operates the Guanajuato mine complex and the Topia mine in Mexico and is advancing Coricancha in Peru
Great Panther Silver building foundation for growth next year
Great Panther posted quarterly results

Precious metals miner Great Panther Silver Ltd (TSX:GPR: NYSE:GPL) is setting a strong foundation for growth in Latin America next year, despite posting a  loss in the latest quarter.

The firm operates the Guanajuato mine complex and the Topia mine in  Mexico and is advancing its Coricancha Mine in Peru.

It also recently announced a $105 million deal to buy Beadell Resources, which owns the Tucano gold mine in Brazil, to create a  new precious metals producer.

"Despite the current metal price environment, we are using our strong balance sheet to set a foundation for growth in 2019 by advancing our Coricancha project and advancing the close of the recently announced friendly acquisition of Beadell Resources Limited," said Jim Bannantine, president and CEO of Great Panther.

He added: "Our revenues for the third quarter of 2018 were down compared to the same quarter last year due primarily to lower metal prices, lower production levels, and a large shipment of concentrate which could not be shipped until just after the end of quarter cut-off."

"These factors combined with higher cash costs at our Guanajuato Mine Complex in Mexico, higher corporate development costs, and the ramp-up of Coricancha project costs, which we are expensing as opposed to capitalizing, accounted for a loss per share of $0.02 in the third quarter."

Revenue for the three months to end September was $11.7 million versus $18.2 million in the same period of 2017. The net loss was around $3.6mln versus a loss of $666,000 last year.

Production costs decreased $1.1 million or 9% compared to the third quarter of 2017, mainly due to a decrease in metal sales volume and a weakening of the Mexican Peso versus the US dollar.

As at September 30, Great Panther had cash and short-term deposits of $57.9 million, compared to $56.9 million at the end of December last year and no long-term debt.

Looking ahead for the rest of 2018, the company said the focus was on its Mexican operations and on achieving production efficiencies at Guanajuato and San Ignacio.

"The company will continue advancing the Coricancha mine complex in Peru to set a platform for production growth in 2019 and 2020," said the miner.

Bulk sampling at Coricancha continues to advance on schedule following the announcement in May 2018 of the positive PEA which confirmed the potential for three million silver equivalent ounces of annual production.

The company expects to be able to make a decision in early 2019 on whether to commence the restart of Coricancha, it added.

Great Panther shares stand at $0.85 in Toronto.

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