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.
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