Strong financial quarter with significant increase in
adjusted EBITDA to $12 million on
production of 30,556 gold equivalent ounces
(All dollar amounts expressed in US dollars unless otherwise
noted)
TSX: GPR | NYSE American: GPL
VANCOUVER, BC, May 5, 2021 /PRNewswire/ - Great Panther
Mining Limited (TSX:GPR; NYSE-A:GPL) ("Great Panther" or the
"Company"), a growing diversified gold and silver producer focused
on the Americas, announces unaudited consolidated financial results
for the three months ended March 31,
2021, from its three wholly-owned mines: Tucano in
Brazil, and Topia and the Guanajuato Mine Complex ("the
GMC") in Mexico.
"This quarter saw a meaningful increase in mine operating
earnings and adjusted EBITDA thanks to the team's effectiveness as
well as strength in metal prices and the benefit of a weaker
Brazilian real," stated Rob
Henderson, Great Panther's President & CEO. "We reduced
our debt position to $27.6 million
and ended the quarter with a strong balance sheet with $45.5 million in cash and equivalents. In
addition, regional exploration and drilling was ramped up
significantly at Tucano from which we are already seeing positive
results that should contribute to increases in our mineral resource
inventory."
First Quarter 2021 Highlights
- Revenue of $52.5 million, a 9%
increase when compared with the same period in 2020
- Mine operating earnings of $11.0
million, an increase of 85% compared with Q1 2020
- Net loss of $0.3 million compared
with a net loss of $40.5 million in
Q1 2020
- Adjusted net income1 of $1.7
million compared with an adjusted net loss of $3.5 million in Q1 2020
- EBITDA and Adjusted EBITDA of $10.3
million and $12.4 million
compared with negative $30.6 million
and $6.4 million, respectively, for
Q1 2020
- Cash flow from operating activities (before changes in non-cash
working capital) of $7.3 million
- 8% reduction in consolidated all-in-sustaining costs
("AISC")1 per gold ounce sold over Q1 2020
- Reduced consolidated AISC (excluding corporate general and
administrative expenses ("G&A"))1 by 11% compared with Q1 2020
to $1,557 per Au oz sold
- Consolidated metal production of 30,556 gold equivalent ounces
("Au eq oz"), inclusive of 24,978 gold ounces and 360,070 silver
ounces
- Successful completion of annual maintenance at Tucano,
including replacement of the primary crusher and realignment of the
SAG mill motor
- Significant ramp up of exploration efforts with a 68% increase
in drilling at Tucano compared with the same period in 2020
___________________________________
|
1
|
Throughout this news
release and the accompanying MD&A, Great Panther has included
the non-Generally Accepted Accounting Principles ("non-GAAP")
performance measures cash costs per gold oz sold, cash costs per
payable silver oz, AISC per gold oz sold excluding corporate
G&A expenditures, AISC per gold oz sold, AISC per payable
silver oz, free cash-flow, mine operating earnings before non-cash
items, adjusted EBITDA, and adjusted net income (loss). Refer to
the Non-GAAP Measures section of the Company's MD&A
for an explanation of these measures and reconciliation to the
Company's financial results reported in accordance with
International Financial Reporting Standards ("IFRS"). As these are
not standardized measures, they may not be directly comparable to
similarly titled measures used by others and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
|
Financial Highlights
(in thousands,
except per oz, per share and exchange rate figures)
|
Q1
2021
|
Q1
2020
|
Q4
2020
|
Revenue
|
$
|
52,570
|
$
|
48,050
|
$
|
68,708
|
Mine operating
earnings before non-cash items[2]
|
$
|
19,926
|
$
|
14,248
|
$
|
32,433
|
Mine operating
earnings
|
$
|
11,029
|
$
|
5,970
|
$
|
22,144
|
Net loss
|
$
|
(331)
|
$
|
(40,464)
|
$
|
13,611
|
Adjusted net income
(loss)1
|
$
|
1,694
|
$
|
(3,475)
|
$
|
12,930
|
Adjusted
EBITDA1
|
$
|
12,369
|
$
|
6,380
|
$
|
26,513
|
Free
cash-flow1
|
$
|
(10,662)
|
$
|
(4,674)
|
$
|
9,057
|
Cash flow from
operating activities
|
$
|
2,328
|
$
|
11,758
|
$
|
17,972
|
Cash and cash
equivalents at end of period
|
$
|
45,464
|
$
|
38,795
|
$
|
63,396
|
Borrowings at end of
period
|
$
|
27,638
|
$
|
50,419
|
$
|
33,398
|
Net working capital
at end of period
|
$
|
25,256
|
$
|
(16,244)
|
$
|
31,396
|
Earnings (loss)
per share – basic
|
$
|
(0.00)
|
$
|
(0.13)
|
$
|
0.04
|
Earnings (loss)
per share – diluted
|
$
|
(0.00)
|
$
|
(0.13)
|
$
|
0.04
|
Average realized gold
price per oz[3]
|
$
|
1,755
|
$
|
1,577
|
$
|
1,884
|
Average realized
silver price per oz2
|
$
|
25.35
|
$
|
15.31
|
$
|
25.06
|
Brazilian real
(BRL)/USD
|
$
|
5.47
|
$
|
4.46
|
$
|
5.40
|
Mexican peso
(MXN)/USD
|
$
|
20.02
|
$
|
19.93
|
$
|
20.59
|
Summary of Select Financial Results
Average realized prices for gold and silver increased to
$1,755 and $25.35, respectively, for the first quarter of
2021 from $1,577 and $15.31 for the first quarter of 2020. The benefit
of higher metal prices together with the impact on costs of a weak
BRL were partially offset by moderate increases in production costs
resulting in mine operating earnings of $11.0 million for the first quarter of 2021
compared with $6.0 million for the
first quarter of 2020. After accounting for G&A and
exploration, evaluation and development expenditures, operating
earnings for the first quarter of 2021 were $3.1 million compared with a loss of $1.3 million in the prior year. Net loss for the
first quarter of 2021 was $0.3
million after accounting for interest and financing charges,
foreign exchange and derivative losses and income taxes compared
with a net loss of $40.5 million for
the first quarter of 2020. The net loss for Q1 2020 included a
$26.0 million loss related to forward
currency contracts on the BRL entered into in late 2019 and early
2020 to gain better certainty on BRL operating and capital costs at
a time of significantly lower gold prices and foreign exchange
losses of $10.8 million in Q1 2020,
resulting from a significant weakening of currencies in the first
quarter of 2020 against the USD. After making adjustments for
derivative losses and foreign exchange losses, adjusted net income
for the first quarter of 2021 was $1.7
million compared with an adjusted net loss of $3.5 million for the first quarter of 2020.
________________________________
|
1
|
The Company has
included the non-GAAP performance measures mine operating earnings
before non-cash items, adjusted net income (loss), adjusted EBITDA,
and free cash-flow throughout this news release and the
accompanying Company's MD&A. Refer to the Non-GAAP Measures
section of the Company's MD&A for an explanation of these
measures and reconciliation to the Company's financial results
reported in accordance with IFRS. As these are not standardized
measures, they may not be directly comparable to similarly titled
measures used by others and should not be considered in isolation
or as a substitute for measures of performance prepared in
accordance with IFRS.
|
|
|
2
|
Average realized gold
and silver prices are prior to smelting and refining
charges.
|
Operational Highlights
|
Q1
2021
|
Q1
2020
|
Q4
2020
|
Total material mined
– Tucano (tonnes)
|
6,898,581
|
7,115,135
|
6,605,369
|
Ore mined – Tucano
(tonnes)
|
347,466
|
310,597
|
749,510
|
Ore mined – Mexico
(tonnes)[4]
|
56,975
|
67,846
|
50,868
|
Tonnes milled –
Tucano
|
796,035
|
811,197
|
901,854
|
Tonnes milled –
Mexico (excluding custom milling)1
|
58,669
|
68,965
|
49,498
|
Tonnes milled –
consolidated operations (excluding custom milling)
|
854,704
|
880,162
|
951,352
|
Plant gold head grade
(g/t) – Tucano
|
0.90
|
1.09
|
1.23
|
Plant head grade (g/t
Ag eq) – Mexico1
|
324
|
318
|
270
|
Gold oz produced –
Tucano
|
22,996
|
26,176
|
32,017
|
Gold oz produced –
consolidated operations
|
24,978
|
28,940
|
33,703
|
Au eq oz
produced[5]
|
30,556
|
34,725
|
36,997
|
Gold oz
sold
|
24,881
|
26,807
|
33,374
|
Au eq oz
sold2
|
29,635
|
32,225
|
36,549
|
Cash costs per gold
oz sold – Tucano[6]
|
$
|
983
|
$
|
1,032
|
$
|
879
|
AISC per gold oz sold
– Tucano3
|
$
|
1,549
|
$
|
1,752
|
$
|
1,171
|
Cash costs per gold
oz sold3
|
$
|
954
|
$
|
1,045
|
$
|
905
|
AISC per gold oz
sold, excluding corporate G&A3
|
$
|
1,557
|
$
|
1,749
|
$
|
1,248
|
AISC per gold oz
sold3
|
$
|
1,738
|
$
|
1,886
|
$
|
1,318
|
|
_______________________________
|
1
|
Includes Topia and
the GMC.
|
|
|
2
|
Gold equivalent oz
are referred to throughout this document. For 2021, Au eq oz were
calculated using a 1:85 Au:Ag ratio, and ratios of 1:0.00049 and
1:0.00057 for the price/oz of gold to price/pound of lead and zinc,
respectively, and applied to the relevant metal content of the
concentrates produced, expected to be produced, or sold from
operations. The ratios are reflective of average metal prices for
2021. Comparatively, Au eq oz for 2020 were calculated using a 1:90
Au:Ag ratio, and ratios of 1:0.00064 and 1:0.00076 for the price/oz
of gold to price/pound of lead and zinc, respectively, and applied
to the relevant metal content of the concentrates produced,
expected to be produced, or sold from operations. The ratios are
reflective of average metal prices for 2020.
|
|
|
3
|
Throughout this news
release and the accompanying MD&A, Great Panther has included
the non-GAAP performance measures cash costs per gold oz sold, cash
costs per payable silver oz, AISC per gold oz sold excluding
corporate G&A expenditures, AISC per gold oz sold, AISC per
payable silver oz, mine operating earnings before non-cash items,
adjusted EBITDA, adjusted net income (loss), and free-cash flow
throughout this news release and the accompanying MD&A. Refer
to the Non-GAAP Measures section of the Company's MD&A for an
explanation of these measures and reconciliation to the Company's
financial results reported in accordance with IFRS. As these are
not standardized measures, they may not be directly comparable to
similarly titled measures used by others and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
|
The Company's operations are on track to meet previously
announced consolidated production guidance for 2021 of 135,000 to
150,000 Au eq oz with AISC (excluding corporate G&A) of
$1,350 - $1,450/Au oz sold. As disclosed in the Company's
news release dated January 14, 2021,
the second half of 2021 is expected to account for a least 55% of
annual production guidance. The mine plan for Tucano also reflects
more stripping in the first half of 2021 and therefore AISC is
expected to be higher in the first half of 2021 than the annual
guidance.
Production and AISC guidance here and elsewhere in this news
release is forward-looking information that should be read in
conjunction with the Cautionary Statement on Forward-Looking
Statements section at the end of this news release and the
Company's most recently filed Management Discussion and Analysis
for the year ended December 31, 2020.
The Company may revise guidance during the year to reflect actual
results to date and those anticipated for the remainder of the
year.
The Company continues to implement strict protocols to help
prevent the spread of COVID-19 within its mine sites and host
communities. Although not significant, operations in the first
quarter of 2021 were affected by the pandemic. Workforce shortages
were experienced during the quarter at the GMC and Topia mines, and Tucano experienced disruption
through to late April in its purchased oxygen supply with scheduled
deliveries redirected to Brazil's
hospitals to meet needed demand. The Company is monitoring the
situation closely and working with local health authorities to
ensure a safe work environment and support the health of local
communities.
Refer to the Company's Management's Discussion and Analysis for
the three months ended March 31, 2021
("MD&A") for more details of the financial results and for
reconciliations of the Company's non-GAAP performance measures to
the nearest GAAP measure. The full version of the Company's
unaudited condensed interim consolidated financial statements for
the three months ended March 31, 2021
and 2020 and MD&A can be viewed on the Company's website at
www.greatpanther.com, on SEDAR at www.sedar.com or on EDGAR at
www.sec.gov/edgar.shtml. All financial information is prepared
in accordance with IFRS, except as noted in the Non-GAAP Measures
section of the Company's MD&A.
Additional information regarding Great Panther's COVID-19
response plan, preventive measures taken to date and the potential
impact on operations are available in the MD&A, available on
the Company's website at www.greatpanther.com, on SEDAR at
www.sedar.com or on EDGAR at www.sec.gov/edgar.shtml.
WEBCAST AND CONFERENCE CALL
The Company will host a conference call and webcast to discuss
the results on Thursday, May 6, 2021,
at 9:00 AM PT/12:00 PM ET. Shareholders, analysts, investors
and media are invited to join by logging in or calling in to the
details below:
Live webcast and registration:
https://www.greatpanther.com/investors/webcasts/
Canada and US Toll-Free: +
1 800 319 4610
International Toll: + 1 604 638 5340
A replay of the webcast will be available on the Webcasts
section of Great Panther's website approximately one hour after the
conference call. Audio replay will be available for four weeks by
calling the numbers below using the replay access code 6660.
Canada and US Toll-Free: + 1
800 319 6413
International Toll: + 1 604 638 9010
Replay Access Code: 6660
ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on
the Americas. The Company owns a diversified portfolio of assets in
Brazil, Mexico and Peru that includes three operating gold and
silver mines, four exploration projects, and an advanced
development project. Great Panther is actively exploring large land
packages in highly prospective districts and is pursuing
acquisition opportunities to complement its existing portfolio.
Great Panther trades on the Toronto Stock Exchange trading under
the symbol GPR, and on the NYSE American under the symbol GPL.
TECHNICAL INFORMATION
Scientific and technical information contained in this news
release have been reviewed and approved by Neil Hepworth, Chartered Engineer UK, Chief
Operating Officer, a Qualified Person, as the term is defined in
National Instrument 43-101 - Standards of Disclosure for
Mineral Projects.
CAUTIONARY STATEMENT ON 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
Canadian securities laws (together, "forward-looking statements").
Such forward-looking statements may include, but are not limited
to, statements regarding: (i) expectations of the Company's 2021
consolidated production and cost guidance in the news release,
ability to meet its production and cost guidance and the
assumptions underlying; (ii) expectations regarding the ongoing
drill programs and the ability for positive results to increase the
Company's Mineral Resource inventory; (iii) expectations regarding
the future impacts of COVID-19 and the Company's ability to
continue its operations without interruption should the situation
not be as anticipated; and (iv) the Company's plans to pursue
acquisition opportunities to complement its existing portfolio.
These forward-looking statements reflect the Company's current
views with respect to future events and are necessarily based upon
a number of assumptions that, while considered reasonable by the
Company, are inherently subject to significant operational,
business, economic and regulatory uncertainties and contingencies.
These assumptions include: the assumptions underlying the Company's
Outlook of production and cost guidance continuing to be accurate,
including the accuracy of the geological, operational and price and
exchange rate assumptions on which the guidance is based, all as
more particularly outlined in the Management Discussion and
Analysis for the year ended December 31,
2020; continued operations at all three of the Company's
mines in 2021 without significant interruption, additional costs,
workforce or supply shortages due to COVID-19 or any other reason;
continued operations at Tucano in accordance with the Company's
mine plan, including the expectations regarding the ongoing
geotechnical control of the Urucum Central South pit ("UCS") and
related slope stability and the Company's ability to successfully
access the mineralization in the UCS pit without additional costs
or interruption; the accuracy of the Company's Mineral Reserve and
Mineral Resource estimates and the assumptions upon which they are
based; ore grades and recoveries; prices for gold, silver, and base
metals remaining as estimated; national and international
transportation arrangements to deliver Tucano's gold doré to
international refineries continue to remain available, despite
inherent risks due to COVID–19; international refineries that the
Company uses continue to operate and refine the Company's gold
doré, and in a timely manner such that the Company is able to
realize revenue from the sale of its refined metal in the timeframe
anticipated, despite inherent risks due to COVID–19; currency
exchange rates remaining as estimated; assumptions regarding the
cost of capital, decommissioning and reclamation, energy inputs,
labour, materials, and supplies and services (including
transportation); all necessary permits, licenses and regulatory
approvals for the Company's operations are received in a timely
manner on favourable terms, including the granting of permits for
the expansion of the GMC tailings storage facility ("TSF") in
time without condition which if not granted or conditioned, could
result in an interruption to operations; the sufficiency of the
Company's tailing storage facilities; Tucano will be able to
continue to use cyanide in its operations; the ability to procure
equipment and operating supplies and that there are no material
unanticipated variations in the cost of energy or supplies;
operations not being disrupted by issues such as pit-wall failures
or instability, mechanical failures, labour disturbances and
workforce shortages, illegal occupations or mining, seismic events,
and adverse weather conditions; and the Company's ability to comply
with environmental, health and safety laws. The foregoing list of
assumptions is not exhaustive.
These forward-looking statements involve known and unknown
risks, uncertainties and other factors that 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, regulatory, and social risks involving Great
Panther's operations in a foreign jurisdiction; developments with
respect of COVID-19 that may impact the Company's ability to
operate as anticipated, including the risk for further workforce
and supply shortages, and unplanned partial or full shutdown of the
Company's mines and processing plants, whether voluntary or
imposed, including the risk that shortages in purchased oxygen
supply will decrease recovery rates and throughput; the inherent
risk that estimates of Mineral Reserves and Resources may not be
accurate and accordingly that mine production will not be as
estimated or predicted; risk that dilution and mining recovery
estimates used in the Mineral Reserve estimation do not accurately
reconcile with the Company's ability to recover the tonnage, grade
and metal content estimated in the Mineral Reserves; as the
Company's mines, including, but not limited to its Mexican
operations, do not have established Mineral Reserves, except for
Tucano, the Company faces higher risks that anticipated rates of
production and production costs, such as those provided in this
news release, will not be achieved, each of which risks could have
a material adverse impact on the Company's ability to continue to
generate anticipated revenues and cash flows to fund operations
from and ultimately achieve or maintain profitable operations; open
pit mining operations at Tucano have a limited established mine
life and the Company may not be able to extend the mine life for
Tucano open pit operations beyond 2023 as anticipated; gold, silver
and base metal prices may decline or may be less than forecasted;
fluctuations in currency exchange rates (including the U.S. dollar
to Brazilian real exchange rate) may increase costs of operations;
even though the geotechnical consultant have approved the restart
of mining the UCS pit, there is no assurance that the Company will
be able to continue mining and be able to access the UCS Mineral
Reserves which may adversely impact the Company's production plans
and future revenues; operational and physical risks inherent in
mining operations (including pit wall collapses, tailings storage
facility failures, environmental accidents and hazards, industrial
accidents, equipment breakdown, unusual or unexpected geological or
structural formations, cave-ins, flooding and severe weather) may
result in unforeseen costs, shut downs, delays in production and
exposure to liability; planned exploration activities may not
result in conversion of existing Mineral Resources into Mineral
Reserves or discovery of new Mineral Resources; the potential for
unexpected costs and expenses or overruns; employee and contractor
relations; relationships with, and claims by, local communities;
the Company's ability to obtain all necessary permits, licenses and
regulatory approvals in a timely manner on favourable terms,
including the granting of permits for the GMC TSF in time without
condition which if not granted or conditioned could result in an
interruption to operations at the GMC; the inability to continue to
operate the Topia TSF as planned, or to commence stacking at Topia
Phase III when Phase II TSF is no longer available; there is no
assurance that the Company will be able to identify or complete
acquisition opportunities of, if completed, that such acquisitions
will be accretive to the Company; and other risks and
uncertainties, including those described in respect of Great
Panther, in the MD&A and its most recent annual information
form and material change reports filed with the Canadian Securities
Administrators available at www.sedar.com and reports on Form 40-F
and Form 6-K filed with the Securities and Exchange Commission and
available at www.sec.gov/edgar.shtml.
There is no assurance that these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place undue
reliance on forward looking statements. Forward-looking statements
and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company does not
intend, nor does it assume any obligation to update or revise
forward-looking statements or information, whether as a result of
new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable law.
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SOURCE Great Panther Mining Limited