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Great Panther Mining reports record mine operating earnings and cash flow for 2020 despite pandemic challenges

The gold and silver producer met its production guidance for the year and also managed to reduce all-in-sustaining costs (AISC)

Great Panther Mining Limited -
For the 12 months to December 31, mine operating earnings came in at a record US$83.9 million, or US$0.24 per share, compared to US$6.8 million in 2019

Great Panther Mining Limited (TSE:GPR) (NYSEAMERICAN:GPL) (FRA:G3U) delivered record mine operating earnings and cash flow in the year to December 31, despite the challenges of the pandemic, it told investors. 

The gold and silver producer met its production guidance for the year and also managed to reduce all-in-sustaining costs (AISC) across its mines in Mexico and Brazil. 

READ: Great Panther Mining outlines US$13M worth of exploration plans for 2021

Chief executive Rob Henderson highlighted the group had also "significantly" strengthened its balance sheet, as well as add reserves and resources through exploration programs.

"Our teams did a tremendous job of managing the challenges of COVID-19, while reducing consolidated AISC, delivering on guidance, successfully extending the open pit mine life at Tucano, and expanding resources at GMC.  With $63 million in cash and the expectation for continued strong cash flow from operations, we are fully funded for our capital programs and our ambitious 2021 exploration programs," he said.

For the 12 months to December 31, mine operating earnings came in at a record US$83.9 million, or US$0.24 per share, compared to US$6.8 million in 2019, though, notably, that year reported ran from March 5, 2019, to December 31, 2019 - when Great Panther owned the Brazilian Tucano mine following the acquisition of Beadell.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) for 2020 was US$98 million, or US$0.28 per share, versus US$7.9 million in 2019, while cash flow from operating activity was US$68.8 million against US$9.9 million in 2019.

Great Panther reduced consolidated AISC, not including corporate general and administrative (G&A) expenses, over the year by 11% to US$1,228 per ounce of gold sold, it added.

In the fourth quarter, mine operating earnings came in at US$22.1 million and the miner its debt by US$13.5 million and ended the year with US$63.4 million in cash.

In January this year, Great Panther revealed it had met its production guidance in 2020 and generated more gold from across its three mines than in 2019.

The miner processed 28% more ore than in 2019, resulting in gold output of 133,031 ounces, up 12% from the 118,493 ounces seen in 2019.  Silver production was however down 27% from 2019, at around 1.11 million ounces.

Gold-equivalent production across the group for the 12 month period was 150,051 ounces, up 2% in 2019.

For 2021, consolidated production from the group's Tucano, Topia and GMC mines is expected to be between 135,000  and 150,000 gold-equivalent ounces, with the second half of the year expected to account for a least 55% of annual production guidance.

Contact the author at giles@proactiveinvestors.com

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