GREAT PANTHER RESOURCES LIMITED (TSX: GPR) (the "Company") is
pleased to announce the unaudited financial results for the
Company's third quarter ending September 30, 2009. The full version
of the financial statements and the management discussion and
analysis can be viewed on the Company's web site at
www.greatpanther.com or on SEDAR at www.sedar.com.
"We are extremely pleased to see the continued record growth in
production, revenues and earnings at our two mines, while
continuing to lower operating costs," said Robert Archer, Great
Panther's President & CEO. "Great Panther is in its strongest
position in the Company's history and is well positioned to
continue its trend of profitable growth."
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Third Quarter 2009 Highlights
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Q3 YTD
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Gross revenue $ 9.3 million $23.2 million
Net revenue $ 8.9 million $21.9 million
Earnings from mining operations
(before amortization and depletion) $ 4.2 million $ 9.8 million
Earnings from mining operations
(net of amortization and depletion) $ 3.4 million $ 7.1 million
Adjusted EBITDA(3) $ 1.9 million $ 3.9 million
Cost per silver ounce (USD) $ 5.48 $ 5.86
Silver equivalent production 597,057 Ag eq oz 1,577,169 Ag eq oz
Silver ounces sold 401,008 Ag oz 1,013,481 Ag oz
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THIRD QUARTER HIGHLIGHTS
- 34% increase in total quarterly production to 597,057 Ag eq oz
in the third quarter 2009 from 444,686 Ag eq oz in the third
quarter 2008. Year to date production increased by 20% to 1,577,169
Ag eq oz in 2009 compared to 1,312,397 Ag eq oz in 2008.
- 104% and 29% increase in revenue to $8.9 million and $21.9
million for the three and nine months ended September 30, 2009,
respectively, from $4.4 million and $17.0 million for the same
periods in 2008.
- $5.0 million and $7.0 million increase in earnings from mining
operations(1) to $4.2 million for the three months ended September
30, 2009 and $9.8 million for the nine months ended September 30,
2009 from $(0.8) million and $2.8 million for the corresponding
periods in 2008.
- 62% decrease in overall cash operating cost per silver
ounce(2) to US$5.48 for the third quarter 2009 from US$14.39 for
the third quarter 2008. Cash operating cost per silver ounce
decreased by 48% to US$5.86 for the nine months ended September 30,
2009 from US$11.34 for the same period in 2008.
- $6.0 million and $11.1 million increase in Adjusted EBITDA(3)
to $1.9 million for the three months ended September 30, 2009 and
$3.9 million for the nine months ended September 30, 2009 from
Adjusted EBITDA losses of $4.1 million and $7.2 million for the
corresponding periods in 2008.
- Net cash provided by operating activities was $0.8 million for
the three months ended September 30, 2009. The same period in 2008
resulted in net cash used of $2.4 million. For the nine months
ended September 30, 2009, net cash provided by operating activities
was $2.0 million compared to $3.0 million used in operating
activities for the same period in 2008.
- NI 43-101 compliant measured and indicated resources for Topia
increased to 5.5 million Ag eq oz, plus inferred resources of 5.7
million Ag eq oz, sufficient to support a 10-year mine plan.
- New three-year strategy announced to accelerate annual
production to 3.8 million Ag eq oz, increase NI 43-101 compliant
resources to 40 million Ag eq oz, and invest $22 million in capital
expenditures and $14 million in a 65,000-metre diamond drilling
program for both mines.
- Continued underground development at Guanajuato was successful
in identifying and delineating three new zones of silver-gold
mineralization. The discovery of these zones within and adjacent to
the areas where the Company is already mining emphasizes the
potential to expand production and resources along the entire 4.2
kilometre strike length of the property.
- Repaid principal amount of $2.02 million, 8% interest per
annum, unsecured convertible loan note due March 9, 2010 by the
issuance of 3,740,741 fully paid common shares of the Company at
$0.54 per common share.
To view the chart accompanying this release, please click on the
following link: http://media3.marketwire.com/docs/GPRchart.jpg
- On November 10, 2009, the Company filed a final short form
prospectus in Canada in connection with an agency offering of units
to raise $12.3 million. The Company intends to use the net proceeds
of this offering to accelerate the growth strategy described above
as well as for general working capital purposes and potential
acquisition activity.
"The Company has set another successive all-time record for
earnings from mining operations of more than $4 million for the
quarter. With the planned imminent accelerated exploration
drilling, mine development and mine infrastructure refurbishment,
together with the acquisition of new underground equipment, we
expect new production and earnings records to be set in coming
quarters," said Kaare Foy, Great Panther's Executive Chairman.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
Kaare G. Foy, Executive Chairman
FORWARD LOOKING STATEMENTS
This news release contains forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information within the meaning of
the Securities Act (Ontario) (together, "forward-looking
statements"). Such forward-looking statements may include but are
not limited to the Company's plans for production at its Guanajuato
and Topia Mines in Mexico, exploring its other properties in
Mexico, the overall economic potential of its properties, the
availability of adequate financing and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements expressed or implied by such
forward-looking statements to be materially different. Such factors
include, among others, risks and uncertainties relating to
potential political risks involving the Company's operations in a
foreign jurisdiction, uncertainty of production and cost estimates
and the potential for unexpected costs and expenses, physical risks
inherent in mining operations, currency fluctuations, fluctuations
in the price of silver, gold and base metals, completion of
economic evaluations, changes in project parameters as plans
continue to be refined, the inability or failure to obtain adequate
financing on a timely basis, and other risks and uncertainties,
including those described in the Company's Annual Report on Form
20-F for the year ended December 31, 2008 and reports on Form 6-K
filed with the Securities and Exchange Commission and available at
www.sec.gov and Material Change Reports filed with the Canadian
Securities Administrators and available at www.sedar.com.
(1) "earnings from mining operations" is defined as mineral
sales less cost of sales (excluding amortization and depletion)
(2) "cost per silver ounce" is calculated net of by-product
credits
(3) "Adjusted EBITDA" is defined as earnings before interest
expense, taxes, depletion and amortization, stock-based
compensation and non-recurring items.
SEC 20-F Statement Filed; Standard & Poor's Listed
Contacts: B&D Capital 604 685 6465 604 899 4303 (FAX)
info@greatpanther.com www.greatpanther.com
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