logo-loader
viewGreat Panther Mining Limited

Great Panther Mining receives US$11.25M prepayment; sets gold floor price at US$1,500

The move ensures a minimum sale price of US$1,500 for the majority of gold production from its Tucano mine in Brazil

hand counting gold coins
The US$11.25 million came from a gold doré prepayment agreement with Samsung C&T UK Ltd

Great Panther Mining Limited (TSE:GPR) (NYSEAMERICAN:GPL) announced Tuesday that it has received US$11.25 million as part of a gold doré prepayment agreement with Samsung C&T UK Ltd. 

The Vancouver-based miner also set a limited gold floor price of US$1,500 through the purchase of financial put options to protect its margins from any price fluctuations. 

The firm purchased put options on 45,000 gold ounces that mature from March through to the end of June 2020 at an average cost of US$9.33 per gold ounce, ensuring a minimum sale price of US$1,500 for the majority of gold production from its Tucano mine in Brazil. 

READ: Great Panther to get $11.25M gold doré prepayment advance

The move was stimulated by the recent weakness of Brazil’s currency, the real (BRD), which is trading at historic lows to the US dollar (USD).

The firm said in a statement that on January 31, 2020, Great Panther's non-deliverable forward foreign exchange contracts for BRL against the USD totaled approximately BRL 506 million (US$120 million), with pre-determined exchange rates ranging from BRL 4.11 to BRL 4.32 against the USD through the remainder of 2020. 

This compares to BRL 355 million at rates ranging from BRL 3.99 to BRL 4.18 as reported on September 30, 2019, the firm said. “This represents the majority of the Company's BRL-denominated expenses for the balance of 2020,” Great Panther told shareholders.

"With the recent weakening of the Brazilian real, and gold prices reaching multi-year highs, we are taking the opportunity to increase certainty of cash flow in 2020," Jeffrey Mason, interim CEO of Great Panther said.

"Importantly, our business will continue to fully benefit from rising gold prices, while limiting downside at minimal cost. Together with the closing of the Samsung facility, our financial position continues to strengthen."

Contact Angela at [email protected]

Follow her on Twitter @AHarmantas

Quick facts: Great Panther Mining Limited

Price: 0.435 CAD

TSX:GPR
Market: TSX
Market Cap: $134.14 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Great Panther Mining Limited named herein, including the promotion by the Company of Great Panther Mining Limited in any Content on the Site,...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Great Panther Mining announces very positive drill results from Tucano Gold Mine

Great Panther Mining (TSE: GPR-NYSE American: GPL) President and CEO Jim Bannantine dropped into the Vancouver studio of Proactive to give Steve Darling the first results from in-mine exploration since the Company acquired the Tucano Gold Mine. Bannantine talks about how many holes they...

on 07/30/2019

2 min read