Delivers record cash flow from operations, substantial operational improvements and reduced costs
TSX: GPR | NYSE American: GPL
(All dollar amounts expressed in US dollars unless otherwise noted)
"For 2020, Great Panther delivered record mine operating earnings of
Fourth Quarter ("Q4") 2020 Financial Highlights
- Mine operating earnings of
$22.1 million ($0.06 per share) - Net income of
$13.6 million ($0.04 per share) - Cash flow from operating activities of
$18.0 million – an increase of 131% over Q4 2019 - 23% reduction in consolidated all-in-sustaining costs ("AISC") 1 over the fourth quarter of 2019
- Reduced debt by
$13.5 million and ended the year with$63.4 million in cash
FY 2020 Financial Highlights
- Record mine operating earnings of
$83.9 million ($0.24 per share) - Record adjusted EBITDA1 of
$98.0 million ($0.28 per share) - Record cash flow from operating activities of
$68.9 million ($0.20 per share) - Reduced consolidated AISC (excluding corporate G&A) by 11% to
$1,228 per gold ounce (oz) sold
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1 | Throughout this news release and the accompanying MD&A, Great Panther has included the non-GAAP performance measures cost per tonne milled, 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, cost of sales before non-cash items, adjusted EBITDA, and adjusted net loss and free-cash flow. 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. |
FY 2020 Operational Highlights
- Achieved production guidance and increased overall gold equivalent production to 150,051 oz
- Extended the open pit mine life at Tucano and added significant resources at GMC
- Published inaugural Sustainability Report "Mining for Good"
- Achieved agreement with Nyrstar to extend bond funding for Coricancha
- Developed and implemented enhanced safety protocols and safeguards in response to COVID-19
- Bolstered management and governance through the appointment of a new, operations-focused CEO, strengthened Board of Directors and fit-for-purpose management team
Summary of Select Financial Results
Record mine operating earnings of
COVID-19 Response
Great Panther has developed and implemented robust COVID-19 prevention, monitoring and response plans following the guidelines of the
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 FY 2020 Management's Discussion and Analysis ("MD&A"), available on the Company's website at www.greatpanther.com and on SEDAR at www.sedar.com.
Operational Highlights
Q4 2020 | Q4 2019 | Change | 2020 | 20191 | Change | |||||
Total material mined – Tucano (tonnes) | 6,605,369 | 5,857,185 | 13% | 25,483,176 | 19,343,355 | 32% | ||||
Ore mined – Tucano (tonnes) | 749,510 | 715,346 | 5% | 1,858,037 | 1,876,031 | -1% | ||||
Ore mined – | 50,868 | 64,843 | -22% | 207,864 | 262,877 | -21% | ||||
Tonnes milled – Tucano | 901,854 | 860,634 | 5% | 3,359,041 | 2,520,981 | 33% | ||||
Tonnes milled – | 49,498 | 67,564 | -27% | 208,392 | 266,867 | -22% | ||||
Tonnes milled – consolidated operations | 951,352 | 928,198 | 2% | 3,567,433 | 2,787,848 | 28% | ||||
Plant gold head grade (g/t) – Tucano | 1.23 | 1.33 | -8% | 1.28 | 1.41 | -9% | ||||
Plant head grade (g/t Ag eq) – Mexico2 | 270 | 350 | -23% | 305 | 347 | -12% | ||||
Gold oz produced – Tucano | 32,017 | 34,181 | -6% | 125,417 | 105,561 | 19% | ||||
Gold oz produced – consolidated operations | 33,703 | 37,089 | -9% | 133,031 | 118,494 | 12% | ||||
Au eq oz produced3 | 36,997 | 44,697 | -17% | 150,051 | 146,853 | 2% | ||||
Gold oz sold | 33,374 | 38,992 | -14% | 132,436 | 120,056 | 10% | ||||
Au eq oz sold3 | 36,549 | 45,625 | -20% | 148,579 | 145,746 | 2% | ||||
Cash costs per gold oz sold4 – Tucano | $ | 879 | $ | 1,340 | -34% | $ | 849 | $ | 1,118 | -24% |
AISC per gold oz sold4 – Tucano | $ | 1,171 | $ | 1,681 | -30% | $ | 1,200 | $ | 1,406 | -15% |
Cash costs per gold oz sold4 | $ | 905 | $ | 1,268 | -29% | $ | 833 | $ | 1,071 | -22% |
AISC per gold oz sold, excluding corporate G&A4 | $ | 1,248 | $ | 1,615 | -23% | $ | 1,228 | $ | 1,383 | -11% |
AISC per gold oz sold4 | $ | 1,318 | $ | 1,703 | -23% | $ | 1,328 | $ | 1,484 | -11% |
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1 | The comparative data presented for the year ended |
2 | Includes |
3 | Gold equivalent oz are referred to throughout this document. For 2020, Au eq oz were calculated using a 1:90 Au:Ag ratio, and ratios of 1:0. 0006412 and 1:0. 0007554 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. Comparatively, Au eq oz for 2019 were calculated using a 1:80 Au:Ag ratio, and ratios of 1:0.000795 and 1:0.00102258 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 2019. |
4 | 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 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. |
Financial Highlights
(in thousands, except per oz, per share and | Q4 2020 | Q4 2019 | Change | 2020 | 20191 | Change | ||||
Revenue | $ | 68,708 | $ | 65,679 | 5% | $ | 260,805 | $ | 198,653 | 31% |
Mine operating earnings before non-cash items2 | $ | 32,433 | $ | 8,447 | 284% | $ | 124,508 | $ | 41,874 | 197% |
Mine operating earnings | $ | 22,144 | $ | (5,046) | n/a | $ | 83,867 | $ | 6,845 | 1,125% |
Net income (loss) | $ | 13,611 | $ | (28,068) | n/a | $ | 334 | $ | (91,022) | n/a |
Adjusted net income (loss)2 | $ | 6,102 | $ | (32,403) | n/a | $ | 22,524 | $ | (47,260) | n/a |
Adjusted EBITDA2 | $ | 26,513 | $ | (5,338) | n/a | $ | 98,019 | $ | 7,919 | 1,138% |
Free cash-flow2 | $ | 9,057 | $ | 2,405 | 277% | $ | 26,941 | $ | (12,123) | n/a |
Cash flow from operating activities | $ | 17,972 | $ | 7,785 | 131% | $ | 68,889 | $ | 13,787 | 400% |
Cash and short-term deposits at end of period | $ | 63,396 | $ | 36,970 | 71% | $ | 63,396 | $ | 36,970 | 71% |
Net working capital at end of period | $ | 31,396 | $ | 12,815 | 145% | $ | 31,396 | $ | 12,815 | 145% |
Earnings (loss) per share – basic | $ | 0.04 | $ | (0.09) | -143% | $ | 0.00 | $ | (0.33) | -100% |
Earnings (loss) per share – diluted | $ | 0.04 | $ | (0.09) | -143% | $ | 0.00 | $ | (0.33) | -100% |
Average realized gold price per oz3 | $ | 1,884 | $ | 1,485 | 27% | $ | 1,784 | $ | 1,419 | 26% |
Average realized silver price per oz3 | $ | 25.06 | $ | 17.71 | 42% | $ | 21.28 | $ | 16.45 | 29% |
Brazilian real (BRL)/USD | $ | 5.40 | $ | 4.12 | 31% | $ | 5.16 | $ | 3.94 | 31% |
Mexican peso (MXN)/USD | $ | 20.59 | $ | 19.27 | 7% | $ | 21.41 | $ | 19.26 | 11% |
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1 | The comparative data presented for the year ended |
2 | 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. |
3 | Average realized gold and silver prices are prior to smelting and refining charges. |
Outlook
In 2021, consolidated gold equivalent production from the Tucano,
These production and cost guidance estimates are forward-looking statements and information. They should be read in conjunction with the Cautionary Statement on Forward-Looking Statements section at the end of this news release. The Company may revise guidance during the year to reflect actual results to date and those anticipated for the remainder of the year.
Readers are cautioned that there are no current estimates of Mineral Reserves for any of the Company's Mexican mines. As a result, there may be increased uncertainty and risks of achieving any particular level of recovery of minerals from the Company's mines or the costs of such recovery. Mineral Resources that are not Mineral Reserves have no demonstrated economic or technical viability. These risks could have a material adverse impact on the Company's ability to generate anticipated revenues and cash flows to fund operations and ultimately achieve or maintain profitable operations.
2021 Production Guidance
Tucano | Consolidated | ||
Gold eq production (oz)1 | 110,000-120,000 | 25,000-30,000 | 135,000-150,000 |
Silver production (k oz) | – | 1,500-1,600 | 1,500-1,600 |
Gold production (oz) | 110,000-120,000 | 8,000-10,000 | 118,000-130,000 |
AISC ($/Au oz sold)2 | N/A | ||
Exploration (operating mines) ($ millions) |
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1 | Gold equivalent ounces for 2021 are calculated using a 1:85 ratio of the silver price to the gold price, which is representative of the average ratio for the respective metal prices for 2020, and approximate ratios for the price/ounce of gold to price/pound of lead and zinc, respectively, for 2020. |
2 | AISC refers to all-in sustaining cost per gold ounce sold, excluding corporate G&A expenditures, and reflects the AISC at the Company's operating mines. The calculation starts with cash cost net of by-product revenue and adds accretion of reclamation provisions, lease liability payments, sustaining EE&D expenses, and sustaining capital expenditures for the operating mines. Sustaining expenditures are those costs incurred to sustain and maintain existing assets at current productive capacity and constant planned levels of productive output. AISC is a non-GAAP measure. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning as prescribed by IFRS as an indicator of performance, and may differ from methods used by other companies with similar descriptions and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Refer to the Company's Management Discussion and Analysis for the period ended |
Guidance assumes no COVID-19 related shutdowns, ongoing geotechnical control/stability of Urucum Central South ("UCS") pit and the Company's ability to successfully access the mineralization in the UCS pit without additional costs or interruption, and permitting of additional tailings storage capacity at the GMC. |
Refer to the Company's FY 2020 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 consolidated financial statements for the year ended
WEBCAST AND CONFERENCE CALL
The Company will host a conference call and webcast on
Webcast: https://www.greatpanther.com/investors/webcasts/
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 until
International Toll: +1-604-638-9010
Replay Access Code: 6298
ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on the
TECHNICAL INFORMATION
Scientific and technical information contained in this news release have been reviewed and approved by
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
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 production and cost guidance, ability to meet its production and cost guidance under the heading "Outlook" in the news release and the assumptions underlying; (ii) expectation the Company will have continued strong cash-flow from operations sufficient to fund our capital programs and our ambitious 2021 exploration programs; (iii) expectation that Tucano will experience high stripping costs in the first half of 2021 and that a majority of our production will occur in the second half of 2021; (iv) expectations regarding the mine life for Tucano and the ability to operate Tucano after 2023 based on converting Mineral Resources into Mineral Reserves; (v) expectations regarding the ongoing geotechnical control of UCS and related slope stability, the ability to continue mining and the ability to continue to include the UCS pit as part of the Mineral Resources and Mineral Reserve estimate; (vi) expectations that the Phase II TSF can be operated as planned on the basis of positive results of monitoring and the availability of the Phase III TSF, which is expected to be available for use after constructing retaining walls and erosion controls around the base of the facility, without interruption; and (vii) the Company's plans to pursue acquisition opportunities to complement its existing portfolio.
These forward-looking statements and information 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; continued operations at all three of the Company's mines in 2021 without significant interruption 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 UCS and related slope stability where mining re-started in the late October and the Company's ability to successful 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; capital, decommissioning and reclamation estimates; prices for energy inputs, labour, materials, 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; the Topia TSF can continue to operate as planned without further movement underlying the Phase I and II TSFs and that the Topia Phase III TSF will be available when the Phase II TSF is no longer available; Tucano will be able to continue to use cyanide in its operations; assumption that management's estimates in connection with the assessment of provisions for loss and contingent liabilities relating to legal proceedings will not differ materially from the ultimate loss or damages incurred by the Company; assumption that management's estimates regarding the carrying value of its mineral properties will not be subject to change in future financial periods, which may result in further write–downs and consequential impairment loss; conditions in the financial markets; the Company will not be required to further impair Tucano as the current open pit mineral reserves are depleted through mining; the ability to procure equipment and operating supplies and that there are no material unanticipated variations in the cost of energy or supplies; the accuracy of the geological, operational and price and exchange rate assumptions on which the production and cost guidance is based; 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; the Company's expectations that metallurgical, environmental, permitting, legal, title, taxation, socio-economic, political, marketing or other issues will not materially affect the estimates or mineral reserves and mineral resources or its future mining plans; 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: the impact of COVID–19 on the Company's ability to operate as anticipated, including the risk of an unplanned partial or full shutdown of the Company's mines and processing plants, whether voluntary or imposed, which would adversely impact the Company's revenues, financial condition and ability to meet its production and cost guidance and fund its capital programs and repay its indebtedness; 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; as the Company's mines 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 above under the heading "Outlook" and "2021 Production Guidance", 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
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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