TSX: GPR
NYSE MKT: GPL
VANCOUVER,
March 4,
2015 /CNW/ - GREAT PANTHER SILVER LIMITED
(TSX: GPR; NYSE MKT: GPL; "Great Panther"; the "Company") today
reported financial results for the Company's year ended
December 31, 2014. The full
version of the Company's financial statements, Management's
Discussion and Analysis ("MD&A") and Annual Information Form
("AIF") can be viewed on the Company's website at
www.greatpanther.com, or SEDAR at www.sedar.com. All
financial information is prepared in accordance with IFRS and all
dollar amounts are expressed in Canadian dollars unless otherwise
indicated.
"Our operations had a very strong finish in 2014, with record
silver, gold and silver equivalent production, despite a difficult
start to the year," stated Robert
Archer, President & CEO. "We brought the San
Ignacio Mine into production, discovered new high grade silver-gold
mineralization there, and increased the overall resource base at
the Guanajuato Mine Complex. I would also like to
congratulate our entire team on their ongoing efforts to improve
efficiencies and grade control. These efforts translated into
a modest reduction in our cash cost year-over-year, although we
still have work to do in this regard."
Margins and cash flows for 2014 were significantly impacted by a
20% decline in the average silver price compared to 2013, and a 10%
decline in the average gold price. The decline in the average
gold price also reduced by-product credits and therefore lessened
the year-over-year reduction in cash cost. Great Panther has
operational flexibility to react to lower metal prices as its mines
each comprise multiple operating areas, with varying grade and cost
profiles. In addition, the Company has no debt and a strong
working capital, which better positions it against a backdrop of
metal price volatility.
Financial results for 2014 were also significantly impacted by
$11.7 million of non-cash impairment
charges taken in the fourth quarter. The significant decline
in metal prices and a reduction in forecast expectations for metal
prices were the principal factors accounting for the
charge.
Fiscal Year 2014 compared to Fiscal Year 2013 (unless
otherwise noted)
- Throughput totalled 344,257 tonnes (including 9,058 tonnes of
milling for a third party), an 18% increase. The start-up of
the San Ignacio mine in
June 2014 was the primary contributor
of growth;
- Record metal production of 3,187,832 silver equivalent ounces
("Ag eq oz"), a 12% increase, including 376,642 Ag eq oz from San
Ignacio;
- Silver production increased 11% to a record 1,906,645 silver
ounces;
- Gold production increased 5% to a record 16,461 gold
ounces;
- Cash cost per silver payable ounce ("cash cost") decreased 5%
to US$12.78;
- All-in sustaining cost ("AISC") per silver payable ounce
decreased 16% to US$22.07;
- Revenues totalled $54.4 million,
an increase of 1%;
- Net loss was $33.0 million,
compared to net loss of $12.7
million;
- Adjusted EBITDA was negative $0.3
million compared to $5.2
million;
- Cash flow from operating activities, before changes in non-cash
working capital ("NCWC"), was $1.2
million compared to $5.5
million;
- Cash and cash equivalents were $18.0
million at December 31, 2014
compared to $21.8 million at
December 31, 2013;
and
- Net working capital decreased to $32.9
million at December 31, 2014
from $38.2 million at December 31, 2013.
Fourth quarter 2014 compared to fourth quarter 2013 (unless
otherwise noted):
- Throughput increased 32% to 94,886 tonnes (including 2,312
tonnes of milling for a third party);
- Achieved record quarterly metal production of 911,048 Ag eq oz,
a 19% increase, including 132,594 Ag eq oz from San
Ignacio;
- Silver production increased 13% to 550,010 silver
ounces;
- Gold production increased 24% to a record 4,822 gold
ounces;
- Cash cost increased 38% to US$12.23;
- Revenues totalled $14.2 million,
a decrease of 10% which is reflective of the significantly lower
average metal prices;
- Net loss was $26.9 million,
compared to net loss of $7.4
million;
- Adjusted EBITDA was negative $1.2
million compared to $4.1
million; and
- Cash flow from operating activities, before changes in NCWC,
was negative $1.3 million compared to
$4.9 million.
OPERATING AND FINANCIAL RESULTS SUMMARY
|
|
|
|
|
|
|
(in CAD 000s
except ounces, amounts
per share and per ounce)
|
Q4
2014
|
Q4
2013
|
%
change
|
FY
2014
|
FY
2013
|
%
change
|
OPERATING
|
|
|
|
|
|
|
Tonnes milled
(excluding custom milling)
|
92,574
|
69,601
|
33%
|
335,199
|
283,608
|
18%
|
Silver equivalent
ounces produced1
|
911,048
|
763,881
|
19%
|
3,187,832
|
2,840,844
|
12%
|
Silver ounce
production
|
550,010
|
484,937
|
13%
|
1,906,645
|
1,711,215
|
11%
|
Gold ounce
production
|
4,822
|
3,881
|
24%
|
16,461
|
15,714
|
5%
|
Silver payable
ounces
|
534,664
|
508,801
|
5%
|
1,729,503
|
1,625,134
|
6%
|
Cost per tonne milled
(USD)2
|
$
|
111.08
|
$
|
119.53
|
-7%
|
$
|
119.52
|
$
|
131.04
|
-9%
|
Cash cost per silver
payable ounce (USD)2
|
$
|
12.23
|
$
|
8.85
|
38%
|
$
|
12.78
|
$
|
13.45
|
-5%
|
AISC per silver
payable ounce(USD)2
|
$
|
21.46
|
$
|
15.77
|
36%
|
$
|
22.07
|
$
|
26.26
|
-16%
|
AIC per silver
payable ounce (USD)2
|
$
|
21.48
|
$
|
17.40
|
23%
|
$
|
22.98
|
$
|
27.44
|
-16%
|
FINANCIAL
|
|
|
|
|
|
|
Revenue
|
$
|
14,244
|
$
|
15,837
|
-10%
|
$
|
54,390
|
$
|
53,954
|
1%
|
Gross profit before
non-cash items2
|
$
|
2,159
|
$
|
5,719
|
-62%
|
$
|
10,775
|
$
|
14,131
|
-24%
|
Gross profit
(loss)
|
$
|
(2,693)
|
$
|
1,523
|
-277%
|
$
|
(6,161)
|
$
|
640
|
-1,063%
|
Net loss
|
$
|
(26,948)
|
$
|
(7,359)
|
263%
|
$
|
(33,013)
|
$
|
(12,729)
|
159%
|
Adjusted
EBITDA2
|
$
|
(1,211)
|
$
|
4,101
|
-130%
|
$
|
(277)
|
$
|
5,163
|
-105%
|
Operating cash flows
before changes in NCWC
|
$
|
(1,253)
|
$
|
4,934
|
-125%
|
$
|
1,171
|
$
|
5,495
|
-79%
|
Cash at end of
period
|
$
|
17,968
|
$
|
21,760
|
-17%
|
$
|
17,968
|
$
|
21,760
|
-17%
|
Working capital at
end of period
|
$
|
32,907
|
$
|
38,224
|
-14%
|
$
|
33,907
|
$
|
38,224
|
-14%
|
Average realized
silver price (USD)3
|
$
|
15.78
|
$
|
20.15
|
-22%
|
$
|
18.28
|
$
|
22.89
|
-20%
|
PER SHARE
AMOUNTS
|
|
|
|
|
|
|
Loss per share –
basic
|
$
|
(0.19)
|
$
|
(0.05)
|
280%
|
$
|
(0.24)
|
$
|
(0.09)
|
167%
|
Loss per share –
diluted
|
$
|
(0.19)
|
$
|
(0.05)
|
280%
|
$
|
(0.24)
|
$
|
(0.09)
|
167%
|
____________________________________
1 Silver equivalent ounces are referred to throughout
this document. For 2014, Aq eq oz have been established using
prices of US$18.50 per oz,
US$1,110 per oz (60:1 ratio),
US$0.90 per lb, and US$0.85 per lb for silver, gold, lead and zinc,
respectively, and applied to the recovered metal content of the
concentrates that were produced by the GMC and Topia
operations.
2 The Company has included the non-IFRS performance
measures cost per tonne milled, cash cost per silver payable ounce,
all-in cost per silver payable ounce ("AIC"), all-in sustaining
cost per silver payable ounce ("AISC"), gross profit before
non-cash items, cost of sales before non-cash items and adjusted
EBITDA throughout this document. Refer to the "Non-IFRS Measures"
section in the December 31, 2014
MD&A for an explanation of these measures and reconciliation to
the Company's reported financial results 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 silver price is prior to smelting and
refining charges.
DISCUSSION OF FULL YEAR 2014 FINANCIAL RESULTS
For the year ended December 31,
2014, the Company earned revenues of $54.4 million, compared to $54.0 million for 2013. A 4% increase in
sales volume on a silver equivalent ounce basis, a 7% appreciation
of the US dollar against the Canadian dollar which had the effect
of increasing revenue reported in Canadian dollars, and a reduction
in smelting and refining charges were all factors that contributed
to the increase in revenues. Revenue growth however, was
limited by the impact of decreases in the average realized silver
price (US$18.28 compared to
US$22.89), and the average realized
gold price (US$1,244.92 compared to
US$1,359.53).
Cost of sales before non-cash items increased 10% to
$43.6 million for the year ended
December 31, 2014, compared to
$39.8 million in 2013. The
increase in cost of sales is primarily attributable to a 17%
increase in ore tonnes milled in 2014 compared to 2013. The
increase in throughput was partly offset by a 9% decrease in cost
per tonne milled.
Gross profit before non-cash items decreased 20% primarily as a
result of the 10% increase in cost of sales before non-cash items,
which exceeded the increase in revenue. This is attributed to
the impact of lower metal prices and lower grades that would have
otherwise contributed to a larger increase in revenue.
Amortization and depletion increased 27% due to a reduction of
the Measured and Indicated resource at Guanajuato based on the updated NI 43-101
Resource estimate issued in December
2013, the ongoing additions to mineral properties, plant and
equipment, and the increase in sales on a silver equivalent ounce
basis. The reduction of the resource in 2013 had the effect
of reducing the amortization base for 2014 and therefore increasing
the amortization expense per unit produced and sold.
For the year ended December 31,
2014, gross loss was $6.2
million compared to a $0.6
million gross profit in 2013. The increase in gross
loss was due to the $3.8 million
increase in cost of sales before non-cash items and the
$3.5 million increase in amortization
and depletion expense.
General and administrative (G&A) expenses decreased
$0.7 million which reflects the
impact of cost reductions initiated in 2013. In addition,
G&A expenses for the comparative period of 2013 reflected
non-recurring severance costs incurred in the second quarter of
2013.
Exploration and evaluation (E&E) expenses increased
$2.2 million primarily related to
San Ignacio development
expenditures of $2.4 million incurred
after the start of construction and development in the fourth
quarter of 2013 and the addition of a $0.5
million reclamation and remediation provision for San
Ignacio . This was partly offset by a reduction in consulting
fees and drilling costs particularly due to the cessation of a
surface drill program at El Horcon in 2013. The Company made
the decision to begin development of San
Ignacio based on internal economic assessments and began
development late in 2013 and entered into commercial production in
June 2014. Ongoing development expenditures for San Ignacio continued to be expensed as the
project does not meet the criteria for capitalization under
IFRS.
A pre-tax non-cash impairment charge of $11.7 million was recorded in 2014, compared to a
pre-tax non-cash impairment charge of $12.0
million in 2013. The 2014 charge consists of a
$3.9 million charge against the
carrying value of the GMC mineral property, a $4.8 million charge against the GMC assets, and a
$3.0 million charge against the
carrying value of the Topia Mine. The charges are attributed
to a decline in silver and gold prices and lower forecast
expectations for future metal prices. In addition, a
reduction in Measured, Indicated and Inferred resources at
Guanajuato during 2014 contributed
to the charges specific to Guanajuato.
Finance and other expense was $1.4
million for the year ended December
31, 2014, compared to finance and other income of
$5.4 million in 2013.
Fluctuations in foreign exchange gains and losses explain
$6.0 million of the variation year to
year, and most of the balance is attributed to $0.7 million of expenses and losses associated
with the illegal occupation of the Guanajuato mine during the first quarter of
2014. Foreign exchange gains and losses arise from the
translation of foreign denominated transactions and balances
relative to the functional currency of the Company's subsidiaries
and the Company's reporting currency. The Company funds its
Mexican subsidiaries through Canadian and US dollar loans and
fluctuations in the Mexican peso can create significant unrealized
foreign exchange gains and losses on the loans. These
unrealized gains and losses are recognized in the consolidated net
income of the Company. During 2014, the Mexican peso weakened
3% compared to the Canadian dollar resulting in net foreign
exchange losses, whereas during 2013 the Mexican peso strengthened
5% compared to the Canadian dollar resulting in net foreign
exchange gains.
Net income tax expense was $2.1
million during the 2014 year compared to $3.5 million income tax recovery in the
comparative period. The net income tax expense realized
during 2014 relates to valuation allowances taken against tax
losses and other deductible temporary differences as management has
reassessed the ability and timeframe to realize the benefit of such
tax losses and other temporary differences in light of lower
forecast expectations for future metal prices.
Net loss for the year ended December 31,
2014 was $33.0 million,
compared to a net loss of $12.7
million for the same period in 2013. The increase in
net loss is accounted for by the $6.8
million increase in gross loss, $5.6
million increase in income tax expense and the $6.8 million increase in Finance and other
expense (due mainly to foreign exchange fluctuation described
above), and $2.2 million increase
E&E expenses. These factors were partially offset by a
$0.7 million decrease in G&A
expenses.
Adjusted EBITDA was negative $0.3
million for 2014, compared to adjusted EBITDA of
$5.2 million for 2013. The
decrease in adjusted EBITDA is primarily attributed to a
$3.4 million decrease in gross profit
excluding non-cash items, a $2.2
million increase in E&E expenses, and a $0.7 million increase in other expenses
associated with the illegal occupation of the Guanajuato mine during the first quarter of
2014. These factors were partly offset by a $0.7 million reduction in G&A
expenses.
DISCUSSION OF FOURTH QUARTER 2014 FINANCIAL RESULTS
For the three months ended December 31,
2014, the Company earned revenues of $14.2 million, compared to $15.8 million for the same period in 2013, a
decrease of 9%. This was partly due to a 5% decrease in sales
volume on a silver equivalent ounce basis as a result of declines
and higher inventory levels at the GMC. Further contributing
to the decrease was a lower average realized silver price
(US$15.78 compared to US$20.15) and a lower average realized gold price
(US$1,188.29 compared to US$1,254.80). The decline in metal prices
was partly mitigated by an 8% appreciation of the US dollar against
the Canadian dollar which had the effect of increasing revenue
reported in Canadian dollars.
Cost of sales before non-cash items increased by 19% compared to
the fourth quarter of 2013, and was primarily attributable to a 32%
increase in tonnes milled. The increase in throughput was
partly offset by a 7% decrease in cost per tonne milled.
Gross profit before non-cash items decreased to $2.2 million in the fourth quarter of 2014
compared to $5.7 million in the
fourth quarter of 2013, as a result of the 9% decrease in revenues
and the 19% increase in cost of sales before non-cash
items.
General and administrative expenses were $2.1 million for the fourth quarter of 2014
compared to $1.5 million for the same
period in 2013. The increase primarily reflects expenditures
in connection with the structuring of Great Panther's Canadian
parent company's investment in its Mexican subsidiaries, and
related tax and legal advisory fees.
Exploration and evaluation expenses were $1.6 million for the fourth quarter of 2014
compared to $0.3 million for the same
period in 2013. The increase is primarily due to $0.7 million of San
Ignacio development expenditures incurred in the fourth
quarter of 2014, while there were no such expenditures in the
fourth quarter of 2013, and $0.5
million relating to a San
Ignacio reclamation and remediation provision.
A pre-tax non-cash impairment charge of $11.7 million was recorded in the fourth quarter
of 2014, compared to a pre-tax non-cash impairment charge of
$12.0 million in the fourth quarter
of 2013.
Finance and other expense was a $4.3
million for the fourth quarter of 2014, compared to income
of $4.1 million for the same period
in 2013. The change is primarily attributed to $4.4 million foreign currency loss recognized in
the fourth quarter of 2014. This compared to a foreign
currency gain of $4.0 million in the
fourth quarter of 2013.
The Company recorded income tax expense of $4.6 million for the fourth quarter of 2014
compared to a recovery of $0.9
million in the fourth quarter of 2013. The net expense
realized during the fourth quarter of 2014 relates to valuation
allowances taken against tax losses and other deductible temporary
differences as management has reassessed the ability and timeframe
to realize the benefit of such tax losses and other temporary
differences in light of lower forecast expectations for future
metal prices.
Net loss for the fourth quarter of 2014 was $27.0 million compared to a net loss of
$7.0 million in the comparative
quarter of 2013. The largest factors contributing to the
increase in net loss is the $6.8
million increase in finance and other expenses and the
$5.4 million increase in income tax
expense. Other factors are the $4.2
million increase in gross loss, the $2.2 million increase in E&E expenses, and
$0.7 million increase in G&A
expenses
Adjusted EBITDA was negative $1.2
million for the fourth quarter of 2014, compared to adjusted
EBITDA of $4.1 million for the same
period in 2013. The decrease in adjusted EBITDA primarily
reflects the $3.6 million decline in
gross profit before non-cash items, $1.3
million higher E&E expenses and $0.6 million higher G&A expenses.
CASH COST AND ALL-IN COSTS
Cash cost was US$12.78 for the
year ended December 31, 2014, a 5%
decrease compared to US$13.45 for the
year ended December 31, 2013.
The decrease is mainly explained by reductions in costs per tonne
milled and in smelting and refining charges. These factors
were partially offset by lower by-product credits due to lower
metal prices and lower gold grades. In addition, a decline in
silver grades reduced payable silver ounces per tonne of ore.
Cash cost and the associated by-product credits are computed based
on sales during the period (rather than production) and, as such,
the amount of the by-product credit may not directly correlate to
the production reported for the period.
AISC for the year ended December 31,
2014 decreased to US$22.07
from US$26.26 in the year ended
December 31, 2013. This
reduction is primarily due to 41% and 23% reduction in E&E and
mine development expenditures respectively. The reduction in
cash cost and the favourable impact of a 6% increase in silver
payable ounces compared with 2013 considerably further reduced
these expenses on a per payable ounce basis.
Cash cost was US$12.23 for the
fourth quarter of 2014, an increase from US$8.85 in the fourth quarter of 2013.
While Topia saw a 5% reduction in cash cost, this was more than
offset by an 89% increase in cash cost at the GMC. The
increase in cash cost at the GMC in the fourth quarter of 2014 is
mainly due to a decline in silver grades and lower gold by-product
credits due to lower gold prices despite an increase in gold ounces
sold. These factors were partly offset by a decrease in cost
per tonne milled and a reduction in smelting and refining
charges.
AISC increased from US$15.77 in
the fourth quarter of 2013 to US$21.46 in the fourth quarter of 2014, primarily
due to the increase in cash costs described above. This was
partially offset by the favourable impact of a 5% increase in
silver payable ounces which reduced G&A, E&E and sustaining
capital expenditures on a per silver payable ounce basis.
Please refer to the Company's Management's Discussion and
Analysis for further discussion of cash cost, AISC and AIC and for
a reconciliation to the Company's financial results as reported
under IFRS.
CASH AND WORKING CAPITAL AT DECEMBER
31, 2014
At December 31, 2014, the Company
had cash and cash equivalents of $18.0
million compared to $21.8
million at December 31,
2013. Cash decreased by $3.8
million from the end of 2013 primarily due to $8.4 million of investing activities (primarily
capital expenditures) incurred in 2014, which exceeded cash
generated from operating activities of $3.5
million. During 2014, the Company also realized
$0.8 million in proceeds from the
exercise of options, and $0.4 million
increase in cash related to favourable foreign currency translation
primarily on US dollar cash deposits.
At December 31, 2014, the Company
had working capital of $32.9 million
compared to $38.2 million at
December 31, 2013. Working
capital decreased by $5.3 million as
cash and cash equivalents decreased $3.8
million (as described above), current assets (excluding
cash) decreased $2.4 million, and
trade and other payables decreased $0.9
million.
OUTLOOK
Production at San Ignacio is
expected to continue to increase in 2015 as the focus shifts to the
new high grade and thicker vein zones to the south of the 2014
workings. This, in addition to a continuing effort to improve
grades at the main Guanajuato
mines and at Topia, is expected to deliver 3.5 to 3.6 million Ag eq
oz1 in 2015. This represents an approximate 10%
increase over 2014, including a small impact from the change in
ratios to determine Ag eq oz to account for the movement in metal
prices over the past year.
Cash costs are anticipated to be in the range of US$11.50-12.50/oz of payable silver, while AISC
are projected to be US$18.50-19.85/oz
of payable silver. Naturally, the Company will strive to
achieve costs which are lower than guidance.
|
|
|
Production and
cash cost guidance
|
FY 2015 Guidance
Range
|
FY 2014
Actual
|
Total silver
equivalent ounces
|
3,500,000
– 3,600,000
|
3,187,832
|
Cash cost per silver
payable ounce (USD)2
|
$ 11.50 –
$ 12.50
|
$ 12.78
|
AISC (USD)
2
|
$ 18.50 –
$ 19.85
|
$ 21.81
|
Great Panther expects to spend between $10 to $12 million in 2015 on mine development
and diamond drilling at the GMC and Topia Mine, and on the
acquisition of new mining and plant equipment to support further
operational efficiencies.
The Company plans approximately 19,000 metres of exploration
drilling in 2015 to further define resources, look for vein
extensions and test new targets. Planned drilling consists of
14,000 metres at Guanajuato and
5,000 metres at San Ignacio.
____________________________________
1 Silver equivalent ounces for 2015 guidance have been
calculated using a 65:1 Au:Ag ratio, and ratios of 1:0.05 and
1:0.056 for the US dollar price of silver ounces to the US dollar
price for lead and zinc pounds, respectively. These ratios will be
applied consistently for the reporting of silver equivalent ounce
production for 2015.
2 "Cash cost" and "AISC" are non-IFRS measures.
Refer to the "Non-IFRS measures" section of the Company's MD&A
for complete definitions and reconciliations to the company's
financial statements.
WEBCAST AND CONFERENCE CALL TO DISCUSS FISCAL YEAR 2014
FINANCIAL RESULTS
Great Panther will hold a live webcast and conference call to
discuss the financial results on March 5,
2015, at 7:00 AM Pacific Standard
Time, 10:00 AM Eastern Standard
Time. Hosting the call will be Mr. Robert Archer, President and CEO, and Mr.
Jim Zadra, CFO and Corporate
Secretary.
Shareholders, analysts, investors and media are invited to join
the live webcast and conference call by logging in or dialing in
just prior to the start time.
Live webcast and
registration
|
www.greatpanther.com
|
U.S. & Canada
Toll-Free
|
(866) 832 4290
|
International
Toll
|
(919) 825 3215
|
Conference
ID
|
75965326
|
A replay of the webcast will be available on the Investors
section of the Company's website approximately one hour after the
conference call.
NON-IFRS MEASURES
The discussion of financial results in this press release
includes reference to gross profit before non-cash items, adjusted
EBITDA, cost per tonne milled, cash cost per silver payable ounce,
all-in sustaining cost per silver payable ounce, and all-in cost
per silver payable ounce which are non-IFRS measures. The
Company provides these measures as additional information regarding
the Company's financial results and performance. Please refer
to the Company's MD&A for the year ended December 31, 2014, for definitions and
reconciliations of these measures to the Company's financial
statements.
ABOUT GREAT PANTHER
Great Panther Silver Limited is a primary silver mining and
exploration company listed on the Toronto Stock Exchange trading
under the symbol GPR, and on the NYSE MKT trading under the symbol
GPL. The Company's current activities are focused on the
mining of precious metals from its two wholly-owned operating mines
in Mexico: the Guanajuato Mine
Complex, which includes the new San
Ignacio satellite mine, and the Topia Mine in Durango.
The Company also has two exploration projects in Mexico, El Horcon and Santa Rosa, and is pursuing additional mining
opportunities in the Americas.
Robert A. Archer
President & CEO
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
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 the Company's plans for production at its
Guanajuato and Topia Mines in Mexico, exploring its other properties in
Mexico, the overall economic
potential of its properties, the availability of adequate financing
and involve known and unknown risks, uncertainties and other
factors which 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 potential
political risks involving the Company's operations in a foreign
jurisdiction, uncertainty of production and cost estimates and the
potential for unexpected costs and expenses, physical risks
inherent in mining operations, currency fluctuations, fluctuations
in the price of silver, gold and base metals, completion of
economic evaluations, changes in project parameters as plans
continue to be refined, the inability or failure to obtain adequate
financing on a timely basis, and other risks and uncertainties,
including those described in the Company's Annual Information Form
for the year ended December 31, 2014
and Material Change Reports filed with the Canadian Securities
Administrators available at www.sedar.com and reports on Form 40-F
and Form 6-K filed with the Securities and Exchange Commission and
available at www.sec.gov.
GREAT PANTHER SILVER LIMITED
CONSOLIDATED STATEMENTS
OF FINANCIAL POSITION
(Expressed in thousands of Canadian dollars)
As at December 31,
2014 and December 31, 2013
|
|
|
|
2014
|
2013
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
17,968
|
|
$
|
21,760
|
|
Trade and other
receivables
|
|
10,697
|
|
14,483
|
|
Income taxes
recoverable
|
|
170
|
|
570
|
|
Inventories
|
|
8,928
|
|
7,212
|
|
Other current
assets
|
|
750
|
|
725
|
|
|
|
38,513
|
|
44,750
|
Non-current
assets:
|
|
|
|
|
|
Mineral properties,
plant and equipment
|
|
29,770
|
|
51,276
|
|
Exploration and
evaluation assets
|
|
3,081
|
|
3,181
|
|
Intangible
assets
|
|
366
|
|
665
|
|
Deferred tax
asset
|
|
71
|
|
247
|
|
|
|
$
|
71,801
|
|
$
|
100,119
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Trade and other
payables
|
|
$
|
5,606
|
|
$
|
6,527
|
Non-current
liabilities:
|
|
|
|
|
|
Reclamation and
remediation provision
|
|
3,378
|
|
2,440
|
|
Deferred tax
liability
|
|
4,088
|
|
2,332
|
|
|
|
13,072
|
|
11,299
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Share
capital
|
|
124,178
|
|
123,022
|
|
Reserves
|
|
10,298
|
|
8,532
|
|
Deficit
|
|
(75,747)
|
|
(42,734)
|
|
|
|
58,729
|
|
88,820
|
|
|
|
$
|
71,801
|
|
$
|
100,119
|
GREAT PANTHER SILVER LIMITED
CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME
(Expressed in thousands of Canadian dollars, except per share
data)
For the years ended
December 31, 2014 and 2013
|
|
|
|
2014
|
2013
|
|
|
|
|
Revenue
|
$
|
54,390
|
$
|
53,954
|
Cost of
sales
|
|
|
|
Production
costs
|
43,615
|
39,822
|
|
Amortization and
depletion
|
16,570
|
13,047
|
|
Share-based
payments
|
366
|
445
|
|
|
60,551
|
53,314
|
|
|
|
|
Gross profit
(loss)
|
(6,161)
|
640
|
|
|
|
|
General and
administrative expenses
|
|
|
|
Administrative
expenses
|
6,450
|
7,156
|
|
Amortization and
depletion
|
311
|
300
|
|
Share-based
payments
|
329
|
380
|
|
|
7,090
|
7,836
|
|
|
|
|
Exploration and
evaluation expenses
|
|
|
|
Exploration and
evaluation, and development expenses
|
4,429
|
2,306
|
|
Share-based
payments
|
161
|
86
|
|
|
4,590
|
2,392
|
|
|
|
|
Impairment of mineral
properties, plant and equipment
|
11,743
|
12,042
|
|
|
|
|
(29,584)
|
(12,630)
|
|
|
|
|
Finance and other
income (expense)
|
|
|
|
Interest
income
|
226
|
335
|
|
Finance
costs
|
(58)
|
(53)
|
|
Foreign exchange gain
(loss)
|
(1,349)
|
4,648
|
|
Other income
(expense)
|
(173)
|
493
|
|
|
(1,354)
|
5,423
|
|
|
|
|
Loss before income
taxes
|
(30,938)
|
(16,207)
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
Current
|
191
|
183
|
|
Deferred
|
1,884
|
(3,661)
|
|
|
2,075
|
(3,478)
|
Net loss for the
year
|
$
|
(33,013)
|
$
|
(12,729)
|
|
|
|
|
Other comprehensive
income (loss), net of tax
|
|
|
|
Items that are or
may be reclassified subsequently to net income
(loss):
|
|
|
|
Foreign currency
translation
|
1,314
|
296
|
|
Change in fair value
of available-for-sale financial assets
|
(6)
|
(71)
|
|
|
1,308
|
225
|
Total
comprehensive loss for the year
|
$
|
(31,705)
|
$
|
(12,504)
|
|
|
|
|
Loss per
share
|
$
|
(0.24)
|
$
|
(0.09)
|
|
Basic
|
$
|
(0.24)
|
$
|
(0.09)
|
|
Diluted
|
|
|
GREAT PANTHER SILVER LIMITED
CONSOLIDATED STATEMENTS
OF CASH FLOWS
(Expressed in thousands of Canadian dollars)
For the years ended
December 31, 2014 and 2013
|
|
|
|
|
|
|
2014
|
2013
|
|
|
|
|
Cash flows from
operating activities
|
|
|
Net loss for the
period
|
$
|
(33,013)
|
$
|
(12,729)
|
Items not involving
cash:
|
|
|
|
Amortization and
depletion
|
16,881
|
13,347
|
|
Impairment of mineral
properties, plant and equipment
|
11,743
|
12,042
|
|
Unrealized foreign
exchange loss (gain)
|
1,925
|
(3,671)
|
|
Deferred income tax
expense (recovery)
|
1,884
|
(3,661)
|
|
Share-based
payments
|
856
|
911
|
|
Gain on disposition
of plant and equipment
|
(11)
|
(51)
|
|
Other non-cash
items
|
1,008
|
(282)
|
|
|
1,273
|
5,906
|
|
|
|
|
Interest
received
|
191
|
263
|
Income taxes
paid
|
(292)
|
(674)
|
Net cash before
changes in non-cash working capital
|
1,172
|
5,495
|
|
|
|
|
Changes in non-cash
working capital:
|
|
|
|
Decrease in trade and
other receivables
|
3,879
|
3,689
|
|
Decrease (increase)
in income taxes recoverable
|
387
|
(440)
|
|
Increase in
inventories
|
(1,211)
|
(22)
|
|
Decrease (increase)
in other current assets
|
(52)
|
1,288
|
|
Decrease in trade and
other payables
|
(701)
|
(1,392)
|
|
Net cash from
operating activities
|
3,474
|
8,618
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Additions to
intangible assets
|
(18)
|
(256)
|
|
Additions to mineral
properties, plant and equipment
|
(8,428)
|
(13,524)
|
|
Proceeds from
disposal of plant and equipment
|
15
|
62
|
|
Proceeds from short
term investments
|
-
|
5,085
|
|
Net cash used in
investing activities
|
(8,431)
|
(8,633)
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
exercise of options
|
758
|
388
|
|
Net cash from
financing activities
|
758
|
388
|
|
|
|
|
Effect of foreign
currency translation on cash and cash equivalents
|
407
|
652
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
(3,792)
|
1,025
|
Cash and cash
equivalents, beginning of period
|
21,760
|
20,735
|
Cash and cash
equivalents, end of year
|
$
|
17,968
|
$
|
21,760
|
SOURCE Great Panther Silver Limited