VANCOUVER, July 25, 2019 /CNW/ - GREAT PANTHER MINING LIMITED (TSX: GPR; NYSE American: GPL) ("Great Panther", the "Company") today reported financial results for the Company's three and six months ended June 30, 2019. 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 International Financial Reporting Standards ("IFRS"), except as noted in the Non-GAAP Measures section of the MD&A. All dollar amounts are expressed in US dollars ("USD"), unless otherwise noted.

"Our results for the second quarter reflect the first full quarter of Tucano Gold Mine operations under our ownership," stated James Bannantine, President and Chief Executive Officer. "Tucano achieved our production guidance for the second quarter and drove a 165% increase in revenue and a 187% increase in mine operating earnings before non-cash items over the second quarter of last year. More importantly, Tucano started to show additional meaningful improvement in grade and recovery after the commissioning of the supplemental oxygen system at the end of April. This key improvement in processing, combined with increasing productivity and a higher-grade mining sequence commencing in August, are expected to lead to an improvement in earnings for the balance of the year. For July month to date, Tucano is tracking to our third quarter guidance."

SUMMARY REVIEW OF FINANCIAL RESULTS OF THE SECOND QUARTER OF 2019

The financial results for the second quarter of 2019 reflect the first full quarter of results for the Tucano Gold Mine acquired on March 5, 2019. As a result, revenue for the quarter of $45.3 million reflected an increase of 165% over the second quarter of 2018, and mine operating earnings before non-cash items increased 187% to $11.8 million ($0.04 per share).

Mine operating earnings (inclusive of amortization and other non-cash charges) showed a small decrease to $2.7 million despite the impact of the acquisition of Tucano. In this regard, Tucano was limited to processing lower grade oxide ore in the month of April until the commissioning of the supplemental oxygen system, which resulted in both lower average feed grades and recoveries for the month. Tucano also finished the quarter with high doré and refined gold inventory of approximately 7,300 Au oz, most of which was either with the refiner or in transit. As compared to the second quarter of 2018, mine operating earnings were lower at the Company's Mexican operations due to planned lower output at the Guanajuato Mine Complex ("GMC") while the Company continued with the exploration program at the Guanajuato Mine. Mine operating earnings at Topia were impacted by higher smelting and refining charges, a number of non-recurring costs, and general cost increases (refer to the following discussions of cash cost and AISC for further details).

Net loss for the quarter was $5.6 million or $0.02 per share reflecting exploration, evaluation and development expenditure ("EE&D") of $4.5 million, and general and administrative ("G&A") expenditures of $3.2 million. Adjusted EBITDA for the second quarter of 2019 was $3.1 million.

EE&D reflected $3.0 million of Coricancha expenditures, including $2.0 million for the Bulk Sample Program ("BSP") which was completed in the second quarter. Expenditures for Coricancha are expected to decrease to lower levels of project care and maintenance costs in the third and fourth quarter.

G&A for the second quarter reflected approximately $1.1 million of Tucano G&A expenditures primarily related to the Australia head office of the acquired company. G&A expenses related to Australia will decrease to approximately $0.5 million in each of the third and fourth quarters, and then be substantially eliminated in the first half of 2020.

Operating cash flow before changes in non-cash net working capital was $1.6 million ($0.01 per share) in the second quarter of 2019, compared to negative $0.5 million ($0.00 per share) in the second quarter of 2018. The improvement largely reflects an increase in mine operating earnings before non-cash items of $7.7 million and an increase in net realized foreign exchange gains of $1.4 million. These factors were partly offset by an increase in interest paid of $2.3 million, an increase in G&A cash expenses of $1.6 million, and an increase in EE&D cash expenses of $1.8 million.

Refer to the Company's MD&A for the three and six months ended June 30, 2019 for more details of the financial results.

OPERATIONAL AND FINANCIAL HIGHLIGHTS
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