leadf
logo-loader
viewGreat Panther Mining Limited

Great Panther Mining positioned to post strong 2020 after record net income and operating cash flow in 2Q

The group put the strong results down to the strong rise in the gold price and record output from its flagship Tucano mine in Brazil

Great Panther Mining Limited -
At the Tucano mine alone, output was a record 35,421 ounces in the quarter compared to 29,899 ounces in the same period last year

Great Panther Mining Limited (TSE:GPR) (NYSEAMERICAN:GPL), the precious metals miner, posted a clutch of record numbers in its second quarter financials, despite the challenges posed by the coronavirus (COVID-19) pandemic, including a net income compared to a loss in the same period last year.

The group put the strong results down to the strong rise in the gold price and record output from its flagship Tucano mine in Brazil.

READ: Noble Capital says Great Panther Mining's 2Q production figures highlight "solid performance" at Tucano

Net income for the three months to June 30 came in at a record US$8.5 million compared to a loss of US$5.7 million for the second quarter of 2019. Mine operating earnings before non-cash items were a record US$35.8 million, up 233% on the figure of US$10.7 million a year ago.

Cash flow from operating activities came in at US$19.5 million, versus a loss of US$5.5 million in 2Q, 2019.

Revenue for the three months was US$67 million versus US$45.2 million a year ago, on consolidated gold production across all mines of 36,357 ounces (2Q 2019: 33, 461 ounces).

At Tucano alone, output was a record 35,421 ounces in the quarter compared to 29,899 ounces in the same period last year.

"The combination of a strong rise in the gold price and record production at our flagship Tucano mine, leading to a substantially lower AISC, drove a significant increase in cash flow from operating activities to a record  $19.5 million for the second quarter of 2020," said Great Panther CEO Rob Henderson in a statement.

"This was an impressive result given the unprecedented challenges of managing COVID-19."

The firm operates the Tucano mine in Brazil and the Topia and the Guanajuato Mine Complex (GMC) in Mexico (where operations restarted in June).

Across the group, Great Panther expects to produce for full year 2020 between 146,000 and 158,000 gold equivalent ounces at all-in sustaining costs (AISC) in the range of US$1,150 to US$1,250 per gold ounce sold and is "well positioned" to deliver strong results.

"With the restart of the company's operations in Mexico in June, a strong increase in the price of silver and new records for the gold price since the end of the second quarter, Great Panther expects continued strong cash-flow generation in the third quarter," it added.

As at the end of June, the miner held cash and equivalents of US$60.2 million, an increase from US$37 million at the end of 2019.

Shares added over 7% in New York to US$0.97.

---Updates for share price---

Contact the author at giles@proactiveinvestors.com

Quick facts: Great Panther Mining Limited

Price: 1.2 CAD

TSX:GPR
Market: TSX
Market Cap: $423.7 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

Silver price to continue to strengthen as gold rockets

Mining Capital's Alastair Ford says we've seen a significant increase in the silver price which he says is long overdue. The gold/silver ratio has been widening for a while now and a lot of market commentators have been saying it's only a matter of time before silver starts to respond to...

on 07/24/2020

3 min read