TSX: GPR | NYSE American: GPL
(All dollar amounts expressed in US dollars unless otherwise noted)
Great Panther will host a conference call and live webcast to discuss the results at
Great Panther President and CEO
Q3 2020 Highlights
Financial
- Revenue of
$77.0 million , representing an 8% increase over Q3 2019 - Record net income of
$18.6 million ($0.05 per share) - Record mine operating earnings before non-cash items1 of
$42.1 million ($0.12 per share) - Record adjusted EBITDA1 of
$34.9 million - Record cash flow from operating activities of
$19.7 million ($0.06 per share) - AISC excluding corporate G&A of
$1,023 per gold ounce (oz) sold1 - Cash and cash equivalents at
September 30, 2020 of$66.6 million
Operational
- Production of 39,788 gold equivalent ounces (Au eq oz)2
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1 | Throughout this news release and the accompanying Management's Discussion and Analysis for the period ended | |||||||||||||||||||||||||||||
2 | Gold equivalent ounces 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/ounce 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/ounce 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. |
Corporate
- Publication of inaugural Sustainability Report
For Q3 2020, Great Panther reported records for mine operating earnings before non-cash items, net income, adjusted EBITDA, and cash flow from operating activities as a result of the rise in gold and silver prices. For the quarter, the average realized gold and silver prices were
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 Q3 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.
Operating Highlights
Q3 2020 | Q3 2019 | Change | Nine months | Nine months | Change | |||||
Total material mined – Tucano (tonnes) | 5,687,291 | 6,908,097 | -18% | 18,877,807 | 13,486,171 | 40% | ||||
Ore mined – Tucano (tonnes) | 381,865 | 548,082 | -30% | 1,199,557 | 1,186,788 | 1% | ||||
Ore mined – | 65,505 | 65,372 | 0% | 156,996 | 198,034 | -21% | ||||
Tonnes milled – Tucano | 823,353 | 747,498 | 10% | 2,457,187 | 1,660,347 | 48% | ||||
Tonnes milled – | 65,393 | 65,762 | -1% | 158,894 | 199,303 | -20% | ||||
Tonnes milled – consolidated operations (excluding | 888,746 | 813,260 | 9% | 2,616,081 | 1,859,650 | 41% | ||||
Plant gold head grade (g/t) – Tucano | 1.31 | 1.62 | -19% | 1.30 | 1.45 | -10% | ||||
Plant head grade (g/t Ag eq) – | 311 | 373 | -17% | 316 | 346 | -9% | ||||
Gold oz produced – Tucano | 31,803 | 36,317 | -12% | 93,400 | 71,380 | 31% | ||||
Gold oz produced – consolidated operations | 34,031 | 39,651 | -14% | 99,329 | 81,405 | 22% | ||||
Au eq oz produced3 | 39,788 | 47,374 | -16% | 113,054 | 102,156 | 11% | ||||
Gold oz sold | 35,179 | 43,025 | -18% | 99,063 | 81,064 | 22% | ||||
Au eq oz sold2 | 40,489 | 50,118 | -19% | 112,029 | 100,121 | 12% | ||||
Cash costs per gold oz sold – Tucano3 | $ | 804 | $ | 1,063 | -24% | $ | 839 | $ | 1,006 | -17% |
AISC per gold oz sold – Tucano3 | $ | 1,061 | $ | 1,327 | -20% | $ | 1,209 | $ | 1,268 | -5% |
Cash costs per gold oz sold4 | $ | 712 | $ | 1,014 | -30% | $ | 808 | $ | 976 | -17% |
AISC per gold oz sold, excluding corporate G&A3 | $ | 1,023 | $ | 1,310 | -22% | $ | 1,221 | $ | 1,272 | -4% |
AISC per gold oz sold3 | $ | 1,123 | $ | 1,377 | -18% | $ | 1,331 | $ | 1,378 | -3% |
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1 | The comparative data presented for the nine months 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 Q3 2020 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, mine operating earnings before non-cash items, cost of sales before non-cash items, adjusted EBITDA, and adjusted net loss. Refer to the Non-GAAP Measures section of the Q3 2020 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. |
Financial Highlights
(in thousands, except per oz, per share and | Q3 2020 | Q3 2019 | Change | Nine months | Nine months | Change | ||||
Revenue | $ | 77,019 | $ | 71,002 | 8% | $ | 192,097 | $ | 132,974 | 44% |
Mine operating earnings before non-cash items2 | $ | 42,071 | $ | 19,208 | 119% | $ | 92,075 | $ | 33,427 | 175% |
Mine operating earnings | $ | 31,892 | $ | 7,472 | 327% | $ | 61,723 | $ | 11,891 | 419% |
Net income (loss) | $ | 18,635 | $ | (9,171) | 303% | $ | (13,277) | $ | (62,955) | 79% |
Adjusted net income (loss)1 | $ | 12,540 | $ | (920) | 1,463% | $ | 16,422 | $ | (14,859) | 211% |
Adjusted EBITDA2 | $ | 34,934 | $ | 12,909 | 171% | $ | 71,507 | $ | 13,255 | 439% |
Cash flow from operating activities | $ | 19,661 | $ | 20,011 | -2% | $ | 50,917 | $ | 6,002 | 748% |
Cash and short-term deposits at end of period | $ | 66,648 | $ | 27,275 | 144% | $ | 66,648 | $ | 27,275 | 144% |
Net working capital at end of period | $ | 24,996 | $ | 12,752 | 96% | $ | 24,996 | $ | 12,752 | 96% |
Earnings (loss) per share – basic | $ | 0.05 | $ | (0.03) | 267% | $ | (0.04) | $ | (0.24) | 83% |
Earnings (loss) per share – diluted | $ | 0.05 | $ | (0.03) | 267% | $ | (0.04) | $ | (0.24) | 83% |
Average realized gold price per oz3 | $ | 1,907 | $ | 1,460 | 31% | $ | 1,751 | $ | 1,388 | 26% |
Average realized silver price per oz3 | $ | 26.07 | $ | 17.68 | 47% | $ | 20.33 | $ | 15.98 | 27% |
Brazilian real (BRL)/USD | $ | 5.38 | $ | 3.97 | 36% | $ | 5.08 | $ | 3.89 | 31% |
Mexican peso (MXN)/USD | $ | 21.77 | $ | 19.43 | 12% | $ | 21.68 | $ | 19.26 | 13% |
1 | The comparative data presented for the nine months ended | |||||||||||||||||||||||||||||
2 | The Company has included the non-GAAP performance measures mine operating earnings before non-cash items, adjusted EBITDA, and adjusted net income (loss) throughout this news release and the accompanying Q3 2020 MD&A. Refer to the Non-GAAP Measures section of the Q3 2020 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. | |||||||||||||||||||||||||||||
3 | Average realized gold and silver prices are prior to smelting and refining charges. |
Outlook
On a consolidated basis, Great Panther is on track to meet 2020 guidance of 146,000 to 158,000 gold equivalent ounces at AISC of
Tucano1 | GMC2 | Consolidated | ||
Gold production (oz)3 | 120,000-130,000 | – | – | 120,000-130,000 |
Silver eq production (oz)4 | – | 1,200,000-1,300,000 | 1,200,000-1,300,000 | 2,400,000-2,600,000 |
Gold eq production (oz) | 120,000-130,000 | 13,000-14,000 | 13,000-14,000 | 146,000-158,000 |
Cash costs ($/oz sold) | ||||
AISC ($/oz sold) |
1 | Tucano costs are presented per gold ounce sold. Cash cost and AISC guidance for Tucano is based on an estimated BRL/USD foreign exchange rate of 5.20. Actual results will differ. | |||||||||||||||||||||||||||||
2 | ||||||||||||||||||||||||||||||
3 | Gold equivalent ounces are calculated using a 1:90 Au:Ag ratio. Figures are rounded. | |||||||||||||||||||||||||||||
4 | Silver equivalent ounces for 2020 are calculated using a 90:1 Ag:Au ratio, and ratios of 1:0.05770751 and 1:0.06798419 for the price/ounce of silver to price/pound of lead and zinc, respectively. |
Refer to the Q3 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 unaudited condensed interim consolidated financial statements for the three and nine months ended
WEBCAST AND CONFERENCE CALL
A conference call and webcast will be held today,
Live webcast and registration: https://www.greatpanther.com/investors/webcasts/
+ 1 604 638 5340 | |
+ 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 5384.
+ 1 604 638 9010 | |
+ 1 800 319 6413 | |
International Toll: | + 1 604 638 9010 |
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 production and cost guidance, ability to meet its production and cost guidance under the heading "Outlook" and the impact of the GMC AISC on the consolidated AISC in the news release; (ii) expectation the Company will be able to maintain lower AISC and strengthen its balance sheet; and (iii) 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 for the balance of 2020 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 Urucum Central South ("UCS") where mining re-started in the last week of October; 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 silver, gold, 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, including the granting of permits for Jolula TSF in time to prevent interruption to operations, the sufficiency of the Company's tailing storage facilities; the Topia TSF can be remediated as planned; management's estimates in connection with the assessment of provisions for loss and contingent liabilities relating to legal proceedings may differ materially from the ultimate loss or damages incurred by the Company; management's estimates regarding the carrying value of its mineral properties may 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 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 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; 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", 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; 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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