VANCOUVER, Oct. 30, 2017 /PRNewswire/ - GREAT PANTHER SILVER LIMITED (TSX: GPR) (NYSE American: GPL) ("Great Panther"; or the "Company") today reported financial results for the Company's three and nine months ended September 30, 2017. The full version of the Company's unaudited condensed interim consolidated financial statements and Management's Discussion and Analysis ("MD&A") can be viewed on the Company's website at www.greatpanther.com or on SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS, except as noted under the Non-IFRS Measures section. All monetary amounts are in US dollars ("USD"), unless otherwise specified.
"The third quarter was a very successful and eventful quarter for Great Panther. Our Mexican operations delivered production in support of our guidance for the year and continued to advance the permitting of the new tailings facility at Topia," stated Jim Bannantine, President & CEO. "After closing the acquisition of Coricancha just before the start of the third quarter, we quickly turned our attention to advancing a resource update and on engineering and environmental studies, and other evaluations in support of a decision to restart mine development. I am pleased that we continue to maintain a strong balance sheet with $55 million of cash and deposits, no debt and strong liquidity of our shares. These factors along with a solid management team put us in a good position to pursue acquisitions."
Revenues for the third quarter of 2017 were $18.3 million and increased by 17% over the same period in 2016 as a 20% increase in unit metal sales volumes offset declines in realized silver and gold prices. Despite the increase in revenue, Great Panther reported a net loss of $0.7 million for the third quarter of 2017, compared to net income of $2.1 million in the same quarter of 2016. The net loss is primarily attributed to a $1.2 million increase in exploration, evaluation and development ("EE&D ") expenditures reflecting the first full quarter of the Coricancha project and its care and maintenance costs since the closing of the acquisition on June 30, 2017. The Company also incurred a $0.9 million non-recurring general and administrative ("G&A") charge. In addition, mine operating earnings before non-cash items from the Company's Mexican operations were $1.1 million lower than the third quarter of 2016 due to a less favorable Mexican peso to US dollar foreign exchange rate, and higher unit production cost in Mexican peso terms. The latter is attributed mainly to a higher proportion of production from the higher cost Topia Mine and some non-recurring costs at Topia which increased its production costs for the quarter.
Cash cost per payable silver ounce ("cash cost") for the third quarter of 2017 was $5.82, while cash cost of $5.21 for the nine-month period ended September 30, 2017 is within the range of the Company's guidance for the full year 2017. All-in sustaining cost per payable silver ounce ("AISC") for the third quarter of 2017 was $13.75, bringing the AISC for the nine months ended September 30, 2017 to $15.60, also within the range of the Company's guidance for the full year 2017. AISC for the third quarter of 2017 also reflected the $0.9 million non-recuring G&A charge noted above (approximately $1.60 per payable ounce), and therefore the Company expects AISC to be lower for the current quarter and in the forseeable future.
Highlights of the third quarter 2017 compared to the third quarter 2016, unless otherwise noted:
•Metal production increased 13% to 1,080,483 Ag eq oz;
•Silver production increased 4% to 532,803 silver ounces;
•Gold production increased 8% to 5,848 gold ounces;
•Cash cost increased to $5.82 from $3.30;
•Cash cost per Ag eq oz increased 13% to $12.37;
•AISC increased 15% to $13.75;
•Revenues increased 17% to $18.3 million;
•Mine operating earnings before non-cash items were $6.2 million, a decrease of 15%;
•Adjusted EBITDA was $1.5 million compared to $4.7 million;
•Net loss totaled $0.7 million, compared to a net income of $2.1 million;
•Cash flows from operating activities, before changes in non-cash net working capital was $2.4 million, compared to $4.2 million;
•Cash and short-term deposits decreased to $55.5 million at September 30, 2017 from $56.7 million at December 31, 2016; and
•Net working capital decreased to $63.6 million at September 30, 2017 from $66.6 million at December 31, 2016.
see more on