TSX: GPR | NYSE American: GPL
Consolidated production of 17,913 Au eq oz in line with the Company's plan to return to steady-state production in H2 2022
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated
First Quarter 2022 Production Highlights
- Consolidated metal production of 17,913 gold equivalent ounces ("Au eq oz"), inclusive of 14,319 gold ounces ("Au oz") and 173,698 silver ounces
- Total gold production at Tucano of 14,037 Au oz
- Total silver equivalent production at
Topia of 290,694 silver equivalent ounces ("Ag eq oz")
"I am pleased to report that production for the quarter was in line with expectations as we build back steady-state production at Tucano," stated
2022 Consolidated Operating Results
Consolidated Operating Results | Q1 2022 | Q1 2021 | Change | Q1 2022 | Q4 2021 | Change |
Ore processed (tonnes) | 889,365 | 854,704 | 4% | 889,365 | 925,626 | -4% |
Gold eq production (oz) (1) | 17,913 | 30,556 | -41% | 17,913 | 24,284 | -26% |
Gold production (oz) | 14,319 | 24,978 | -43% | 14,319 | 20,850 | -31% |
Silver production (oz) | 173,698 | 360,070 | -52% | 173,698 | 227,084 | -24% |
(1) | Gold equivalent ounces for 2022 were calculated using a 1:75 Au:Ag ratio, and ratios of 1:0.0005 and 1:0.0007 for the price/ounce of gold to price/pound of lead and zinc, respectively, consistent with the Company's guidance for the year. Gold equivalent ounces for 2021 were calculated using a 1:85 Au:Ag ratio, and ratios of 1:0.0005 and 1:0.0006 for the price/ounce of gold to price/pound of lead and zinc, respectively, consistent with the Company's guidance for the year. |
The Company's operations are on track to meet previously announced consolidated production guidance for 2022 of 100,000 to 119,000 Au eq oz. The mine plan for Tucano reflects more stripping in the first half of 2022 with the second half of 2022 expected to account for at least 65% of annual production guidance.
Tucano
Tucano Operating Results | Q1 2022 | Q1 2021 | Change | Q1 2022 | Q4 2021 | Change |
Total material mined (tonnes) | 4,372,726 | 6,898,581 | -37% | 4,372,726 | 6,260,316 | -30% |
Total waste mined (tonnes) | 4,004,733 | 6,399,499 | -37% | 4,004,733 | 5,469,661 | -27% |
Ore mined (tonnes) | 232,213 | 347,466 | -33% | 232,213 | 303,845 | -24% |
Ore processed (tonnes milled) | 873,133 | 796,035 | 10% | 873,133 | 883,222 | -1% |
Au grade (g/t) | 0.57 | 0.90 | -37% | 0.57 | 0.77 | -26% |
Au recovery (%) | 87% | 89% | -2% | 87% | 88% | -1% |
Gold production (oz) | 14,037 | 20,422 | -31% | 14,037 | 19,107 | -27% |
Carbon fines gold recovery | – | 2,574 | -100% | – | 223 | -100% |
Total gold production (oz) | 14,037 | 22,996 | -39% | 14,037 | 19,330 | -27% |
To overcome previously indicated contractor performance issues, the mobilization of our new mining contractor, MINAX, commenced during the quarter. The Company continues to work closely with its current contractor, U&M, to ensure a safe and efficient transition with MINAX. MINAX is expected to fully mobilize its fleet by the end of May. During the transition, Tucano will continue to offset U&M's mined tonnage deficit with capacity from the new MINAX mine fleet.
Despite ounce production being lower compared to the first quarter of 2021 ("Q1 2021"), production in the first quarter of 2022 ("Q1 2022") at Tucano was positively affected by mine reconciliation and higher milled ore tonnage due to the high availability of the MINAX mine fleet to rehandle stockpiles. In line with expectations, production decreased 39% in Q1 2022 when compared to the first quarter of 2021 to 14,037 Au oz, primarily attributed to ongoing stripping of the
Topia Operating Results | Q1 2022 | Q1 2021 | Change | Q1 2022 | Q4 2021 | Change |
Ore mined (tonnes) | 16,258 | 16,654 | -2% | 16,232 | 14,865 | 9% |
Ore milled (tonnes) | 16,232 | 19,004 | -15% | 16,232 | 14,560 | 11% |
Waste development (meters) | 3,704 | 2,573 | 44% | 3,704 | 2,978 | 24% |
Ag grade (g/t) | 362 | 398 | -9% | 362 | 301 | 20% |
Au grade (g/t) | 0.84 | 0.87 | -3% | 0.84 | 0.74 | 14% |
Ag recovery (%) | 92% | 92% | 0% | 92% | 91% | 1% |
Au recovery (%) | 64% | 55% | 16% | 64% | 63% | 2% |
Silver eq production (oz) (1) | 290,694 | 363,318 | -20% | 290,694 | 212,006 | 37% |
Silver production (ounces) | 173,698 | 224,333 | -23% | 173,698 | 128,647 | 35% |
Gold production (ounces) | 282 | 293 | -4% | 282 | 218 | 29% |
Lead production (tonnes) | 365 | 526 | -31% | 365 | 235 | 55% |
Zinc production (tonnes) | 525 | 619 | -15% | 525 | 406 | 29% |
Gold eq production (oz) (2) | 3,876 | 4,274 | -9% | 3,876 | 2,494 | 55% |
(1) | Silver equivalent ounces for 2022 were calculated using an 75:1 Ag:Au ratio, and ratios of 1:0.041 and 1:0.056 for the price/ounce of silver to price/pound of lead and zinc, respectively, consistent with the Company's guidance for the year. Silver equivalent ounces for 2021 were calculated using an 85:1 Ag:Au ratio, and ratios of 1:0.041 and 1:0.049 for the price/ounce of silver to price/pound of lead and zinc, respectively, consistent with the Company's guidance for the year. |
(2) | See footnote (1) under the heading Consolidated Operating Results above for information on the calculation of gold equivalent ounces for 2022 and 2021, respectively. |
Silver equivalent production at
First Quarter 2022 Financial Results
Great Panther has scheduled the release of its first quarter 2022 financial results for
Live webcast and registration: https://www.greatpanther.com/investors/webcasts/
Conference call
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
Audio replay
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Replay Access Code: 8842
Technical Disclosure
The technical information contained in this news release has been reviewed and approved by
ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on the
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) the Company's expectations for of a return to steady state production in the second half of 2022; (ii) the Company's ability to execute its growth plan and to unlock value from its asset portfolio, (iii) the expected timing and success for mobilization of MINAX and the Company's ability to offset U&M's mined tonnage deficits with the MINAX fleet, (iv) the expected cost and timing for receipt of permits, mine development and commencement of production from the underground Urucum North project at Tucano, (v) the potential for the production from the
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: continued operations and exploration work in 2022 occur without significant interruption due to COVID-19 or any other reason; the accuracy of the Company's geological modeling at Tucano and the assumptions upon which they are based, ore grades and recoveries; prices for gold, silver, and base metals remaining as estimated; currency exchange rates remaining as estimated; prices for energy inputs, labour, materials, supplies and services (including transportation); all necessary permits, licenses and regulatory approvals for the Company's operations and exploration work are received in a timely manner on favourable terms; Tucano will be able to continue to use cyanide in its operations; 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 without interruption 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: the impact of COVID-19 on the Company's ability to operate and conduct exploration work, including drilling plans, as anticipated, and 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; planned exploration activities, may not result in the discovery of new Mineral Resources/definition of Mineral Resources and readers are cautioned that Mineral Resources that are not Mineral Reserves have no defined economic viability; 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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