TSX: GPR | NYSE American: GPL
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
|
Q2
2019
|
Q2
2018
|
Change
|
Six months
ended June
30, 2019
|
Six months
ended June
30, 2018
|
Change
|
OPERATING
RESULTS
|
|
|
|
|
|
|
Total material mined
– Tucano (tonnes)1
|
5,009,392
|
–
|
N/A1
|
6,578,074
|
–
|
N/A1
|
Ore mined – Tucano
(tonnes)1
|
534,846
|
–
|
N/A1
|
638,706
|
–
|
N/A1
|
Ore mined – Mexico
(tonnes)
|
65,764
|
97,094
|
-32%
|
132,662
|
191,588
|
-31%
|
Tonnes milled –
Tucano1
|
718,682
|
–
|
N/A1
|
912,849
|
–
|
N/A1
|
Tonnes milled –
Mexico
|
63,886
|
95,169
|
-33%
|
133,540
|
192,038
|
-30%
|
Tonnes milled –
Consolidated operations (excluding custom milling)
|
782,568
|
95,169
|
N/A1
|
1,046,389
|
192,038
|
N/A1
|
Plant gold head grade
(g/t) – Tucano1
|
1.41
|
–
|
N/A1
|
1.31
|
–
|
N/A1
|
Gold ounces produced
– Tucano1
|
29,899
|
–
|
N/A1
|
35,063
|
–
|
N/A1
|
Gold ounces produced
– Consolidated operations
|
33,461
|
5,492
|
509%
|
41,754
|
11,323
|
269%
|
Gold equivalent
ounces ("Au eq oz") produced2
|
39,922
|
13,522
|
195%
|
54,782
|
27,451
|
100%
|
Gold ounces
sold
|
29,850
|
6,013
|
396%
|
38,039
|
11,674
|
226%
|
Au eq oz
sold2
|
35,759
|
13,634
|
162%
|
50,003
|
26,697
|
87%
|
Cash cost per gold
ounce sold3
|
$
|
914
|
$
|
591
|
55%
|
$
|
888
|
$
|
518
|
71%
|
All-in sustaining
cost ("AISC") per gold ounce
sold, excluding corporate G&A expenditures
3
|
$
|
1,167
|
$
|
860
|
36%
|
$
|
1,218
|
$
|
794
|
53%
|
AISC per gold ounce
sold3
|
$
|
1,274
|
$
|
1,165
|
9%
|
$
|
1,369
|
$
|
1,097
|
25%
|
_______________________________
|
|
1
|
The data presented
for the three and six months ended June 30, 2019 is the period from
March 5, 2019 to June 30, 2019 for which the Company owned Tucano
following the acquisition of Beadell Resources Limited.
|
|
2
|
Gold equivalent
ounces are referred to throughout this document. Au eq oz
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.
|
|
3
|
The Company has
included the non-GAAP performance measures cost per tonne milled,
cash cost per gold ounce sold, cash cost per payable silver ounce,
AISC per gold ounce sold excluding corporate G&A expenditures,
AISC per gold ounce sold, AISC per payable silver ounce, mine
operating earnings before non-cash items, cost of sales before
non-cash items and adjusted EBITDA throughout this document.
Refer to the Non-GAAP Measures section of the Company's
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.
|
(in thousands,
except per ounce, per share
and exchange rate figures)
|
Q2
2019
|
Q2
2018
|
Change
|
Six months
ended June
30, 2019
|
Six months
ended June
30, 2018
|
Change
|
FINANCIAL
RESULTS
|
|
|
|
|
|
|
Revenue
|
$
|
45,278
|
$
|
17,077
|
165%
|
$
|
61,972
|
$
|
34,096
|
82%
|
Mine operating
earnings before non-cash items1
|
$
|
11,798
|
$
|
4,110
|
187%
|
$
|
15,902
|
$
|
9,335
|
70%
|
Mine operating
earnings
|
$
|
2,695
|
$
|
2,903
|
-7%
|
$
|
4,279
|
$
|
6,922
|
-38%
|
Net loss
|
$
|
(5,627)
|
$
|
(2,765)
|
-104%
|
$
|
(14,801)
|
$
|
(2,862)
|
-417%
|
Adjusted
EBITDA1
|
$
|
3,114
|
$
|
137
|
1,805%
|
$
|
2,030
|
$
|
551
|
268%
|
Operating cash flow
before changes in net non-cash working capital
|
$
|
1,595
|
$
|
(537)
|
-397%
|
$
|
(1,908)
|
$
|
(418)
|
-356%
|
Cash and short-term
deposits at end of period
|
$
|
9,945
|
$
|
59,762
|
-83%
|
$
|
9,945
|
$
|
59,762
|
-83%
|
Net working capital
at end of period
|
$
|
471
|
$
|
68,073
|
-99%
|
$
|
471
|
$
|
68,073
|
-99%
|
Adjusted net working
capital at end of period3
|
$
|
3,981
|
$
|
68,073
|
-94%
|
$
|
3,981
|
$
|
68,073
|
-94%
|
Average realized gold
price per oz2
|
$
|
1,310
|
$
|
1,274
|
3%
|
$
|
1,306
|
$
|
1,317
|
-1%
|
Average realized
silver price per oz2
|
$
|
15.03
|
$
|
16.40
|
-8%
|
$
|
14.92
|
$
|
16.38
|
-9%
|
Loss per share –
basic and diluted
|
$
|
(0.02)
|
$
|
(0.02)
|
0%
|
$
|
(0.06)
|
$
|
(0.02)
|
200%
|
Brazilian real
("BRL")/USD
|
$
|
3.92
|
$
|
3.60
|
9%
|
$
|
3.84
|
$
|
3.42
|
12%
|
Mexican peso
("MXN")/USD
|
$
|
19.13
|
$
|
19.39
|
-1%
|
$
|
19.17
|
$
|
19.07
|
1%
|
_____________________________
|
|
1
|
The Company has
included the non-GAAP performance measures cost per tonne milled,
cash cost per gold ounce sold, cash cost per payable silver ounce,
AISC per gold ounce sold excluding corporate G&A expenditures,
AISC per gold ounce sold, AISC per payable silver ounce, mine
operating earnings before non-cash items, cost of sales before
non-cash items and adjusted EBITDA throughout this document.
Refer to the Non-GAAP Measures section of the Company's
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.
|
|
|
2
|
Average realized gold
and silver prices are prior to smelting and refining
charges.
|
|
|
3
|
The Company has
included an additional non-GAAP measure, adjusted net working
capital, to exclude the remaining conversion rights on the loan
owed to MACA Limited of $3,510, as MACA Limited exercised
these conversion rights subsequent to June 30, 2019.
|
CHANGE IN COST REPORTING MEASURES
As a result of the acquisition of the Tucano Gold Mine through
the acquisition of Beadell Resources Limited ("Beadell") on
March 5, 2019 (the "Acquisition"),
the Company's primary metal production by value is now gold as even
prior to the Acquisition, Great Panther's Mexican silver mines
produced a significant component of gold. As a result, the
Company has changed to primary reporting of cash cost and AISC cost
metrics on a per ounce of gold sold basis, net of by-product
credits (refer to the Non-GAAP Measures section in the Company's
MD&A for definitions and reconciliations of these measures to
the Company's reported financial results). Cash cost and AISC
measures on a payable silver ounce basis (net of by-product
credits) continue to be provided for the Company's Mexican
operating mines as these remain primary silver producing mines by
value.
CASH COST AND ALL-IN SUSTAINING COSTS
The consolidated operating results, cash cost and AISC for the
three and six months ended June 30,
2019 reflect the Tucano operation from the date of the
completion of the Acquisition on March 5,
2019, and a comparison to those of prior periods is not
meaningful. Readers are asked to refer to the discussion of
operating and cost metrics for the individual mines in the
Company's MD&A for the three and six months ended June 30, 2019.
Consolidated AISC per Au oz sold for the second quarter of 2019
of $1,154 is higher than consolidated
annual cost guidance of $1,030 -
$1,130 per Au oz (excluding corporate
G&A expenses) for the following reasons (Refer to
Outlook section for discussion of 2019 production and cost
guidance):
- Tucano's AISC was impacted by the processing factors noted
until the end of April. Tucano also has a seasonal mine plan with
higher productivity in the second half of the year. Tucano's AISC
is therefore expected to decline in the third and fourth quarters
to achieve the annual guidance.
- Topia's AISC per Ag payable oz
was affected by higher than normal cash cost per Ag payable oz,
including non-recurring factors, such as a one-time adjustment for
electricity charges, and maintenance costs related to the
preparation of the processing plant expansion, which together
increased cash cost by $2.72 per Ag
payable oz. There were also general cost increases, such as higher
mining contractor rates and production bonuses, increases in
personnel and general maintenance costs, which collectively
increased by $5.63 per Ag payable
oz.
- GMC's AISC per Ag payable oz was higher than plan due to lower
sales volume which increased cash cost on a per unit basis.
- Adoption of the new accounting standard IFRS 16 –
Leases.
Further discussion of these factors can be found in the
Company's MD&A for the three and six months ended June 30, 2019. For the purposes of
consolidated cash cost and AISC per Au payable ounce, GMC and
Topia are incorporated on the
basis of Au production and sales, and other metals produced are
treated as by-products. See the Non-GAAP Measures
section of the Company's MD&A for detailed reconciliations and
computation of these measures.
CASH, SHORT-TERM DEPOSITS AND WORKING CAPITAL AT JUNE 30, 2019
At June 30, 2019, the Company had
cash and short-term deposits of $9.9
million, compared to $50.6
million at December 31,
2018.
Cash and short-term deposits decreased by $40.6 million in the first half of 2019 primarily
due to $20.2 million of net repayment
of Tucano borrowings, largely in connection with change of control
provisions or negotiated settlements with creditors of the acquired
parent company of Tucano. $13.5 million of cash was used in
operating activities, reflecting working capital needs of Tucano
and the funding of the Coricancha BSP. Lease liability
repayments amounted to $2.4 million
and capital investments drew $10.4
million in additions to plant and equipment, including
$6.7 million of capitalized stripping
and $0.7 million of capitalized
exploration expenditures at Tucano, and $2.0
million on the Topia plant
expansion project. These were partly offset by $2.7 million of partial repayment on the loan
advanced to Beadell prior to the Acquisition, $1.4 million of cash received upon the
Acquisition, $0.5 million in proceeds
from the exercise of stock options, and $0.4
million in net cash recovery of the Coricancha environmental
bond.
Adjusted net working capital reflects net working capital
excluding the remaining conversion rights on a loan owed to a
former contractor of Tucano of $3.5
million. The contractor exercised these conversion
rights subsequent to June 30,
2019. Adjusted net working capital was $4.0 million as at June
30, 2019, a decrease of $57.9
million from the start of the year. The decrease was
mainly due to the $20.2 million of
net cash repayments of Tucano's long-term borrowings, $10.4 million additions to mineral property,
plant and equipment, and $5.2 million
of lease liabilities recognized upon the adoption of IFRS 16 -
Leases. The Company's current borrowings reflect
$14.9 million of unsecured revolving
credit facilities of its Brazilian subsidiary, and $10.6 million of unsecured debt with MACA
Limited, to be repaid in cash.
Adjusted net working capital at June 30,
2019 also reflected a high level of inventory of
approximately 7,300 Au eq oz of doré and refined gold, and
concentrates with approximately 102,000 of contained Ag eq
oz. As these inventories are carried at cost, the margin of
the contained metals is not reflected in net working capital
(approximately $2.6 million at
prevailing metal prices on June 30,
2019).
Subsequent to June 30, 2019, the
Company entered into an ATM Facility under which it can sell common
shares of the Company for aggregate gross proceeds of up to
$25.0 million. The Company is
also actively reviewing and considering other financing options,
including external debt and equity issuances to fund its current
business plan and refinance debt repaid during the past quarter in
connection with the Acquisition. With the completion of the
Coricancha BSP, improved processing at Tucano since the
commissioning of the supplemental oxygen system at the end of
April, and Tucano's mining operations entering the higher
productivity dry season, capital needs will not be as significant
in the third and fourth quarters.
OUTLOOK
Great Panther's focus for the second half of 2019 will continue
to be the optimization of Tucano including identifying and
implementing cost saving and efficiency measures to improve
profitability and reduce cash cost and AISC. With the
successful commissioning of the supplemental oxygen system at the
end of April 2019 and the upcoming
anticipated dry season which has a lower strip ratio and higher
material movement, Tucano's production output and mine operating
earnings are expected to increase. In addition, the Company
is continuing to work on realizing cost synergies by rationalizing
G&A costs of the Australian head office of the acquired
company, expected to be substantially eliminated by the end of the
first quarter of 2020.
Great Panther is also advancing an exploration program focused
on near mine exploration targets at Tucano, and is also developing
a program aimed at capitalizing on Tucano's significant longer-term
exploration potential.
Great Panther continues to evaluate its head office resources
and needed skills and competencies to facilitate the integration of
Tucano and ongoing oversight and management of all Great Panther's
operations and projects. In this regard, during the second
quarter of 2019, the Company added a Vice President, Projects and
Technical Services and a Director of Exploration, Brazil.
At GMC, the Company is continuing its multi-mine optimization
strategy under which production is being sourced entirely from the
San Ignacio Mine, while the exploration program at Guanajuato will continue in the third quarter
with the objective of identifying in-situ blocks of higher-grade
mineralization in order to bring the Guanajuato Mine back into
production in 2020. The Company is planning to complete and
announce an updated NI 43-101 resource estimate for GMC based on
this year's exploration program by the first quarter of 2020.
At Topia, the project to
increase plant capacity has been delayed as structural engineering
analysis recently determined the need for engineered rehabilitation
of the foundation of the plant. As a result, the completion
date for the plant expansion has been revised to 2020.
The Company is maintaining its 2019 production guidance, however
due to the above noted delay at Topia, the Mexican operations (GMC & Topia
combined) are anticipated to produce at the lower end of the
guidance.
|
|
|
|
|
Production and cash
cost guidance
|
Q1 2019
Actual
|
Q2 2019
Actual
|
FY 2019
Guidance
|
FY 2018
Actual
|
Gold equivalent
ounces1 – Tucano (from March 5, 2019
acquisition date)
|
5,164
|
29,899
|
125,000 –
135,000
|
n/a
|
Gold equivalent
ounces1 – Mexico
|
9,696
|
10,023
|
46,500 –
50,000
|
52,137
|
Total gold
equivalent ounces1
|
14,860
|
39,922
|
171,500 –
185,000
|
52,137
|
Cash cost per gold
ounce sold2
|
$
|
793
|
$
|
914
|
$ 820 – $ 890
|
$
|
664
|
AISC per gold
ounce sold, excluding corporate G&A
expenditures2
|
$
|
1,404
|
$
|
1,167
|
$
1,030 – $ 1,130
|
$
|
943
|
___________________________
|
|
|
1
|
Au eq oz 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.
|
|
|
2
|
Cash cost per gold
ounce sold, AISC per gold ounce sold excluding corporate G&A
expenditures, and AISC per gold ounce sold are non-GAAP
measures. Refer to the Non-GAAP Measures section of
the Company's 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.
|
Tucano's production profile is significantly weighted to the
second half of the year due to the dry season which enables higher
rates of mining productivity and lower strip ratios in the open
pits. The quarterly production profile for the remaining
quarters of the fiscal year remains unchanged and is expected to be
as follows:
Tucano production
guidance
|
Q3 2019
|
Q4 2019
|
Gold
ounces
|
35,600 –
38,600
|
55,000 –
59,600
|
It is cautioned that cash cost and AISC are very sensitive to
the MXN and BRL foreign exchange rates, and metal prices through
the computation of by-product credits. To manage the
Company's exposure to changes in the BRL and MXN exchange rates,
the Company may enter into forward contracts for these foreign
currencies against USD at various rates and maturity dates.
The Company is revising its guidance for non-sustaining capital
expenditures and EE&D expenses for the year ended December 31, 2019:
Capex and EE&D
expense guidance
|
1H 2019
Actual
|
Previous FY 2019
Guidance
|
Revised FY 2019
Guidance
|
Revised FY 2019
Guidance per gold
ounce sold
|
Non-sustaining
capital expenditures
|
$ 2.1
million
|
$ 3.3 – $ 3.6
million
|
$ 7.0 – $ 8.5
million
|
$ 38 – $ 50
|
Non-sustaining
EE&D (Coricancha and
Tucano near mine exploration)
|
$ 5.7
million
|
$ 15.3 –
$ 16.7 million
|
$ 8.8 – $ 10.7
million
|
$ 48 – $ 62
|
The above noted guidance has been revised due to a
reclassification of Tucano near mine exploration activities as
non-sustaining capital expenditure (as this work is expected to
identify new reserves), the delay in the plant expansion program at
Topia, as well as the previously
noted revised timing on the anticipated restart of Coricancha to
2020, which is subject to securing funding for the initial capital
costs on favourable terms, and the ongoing successful optimization
of the Tucano Gold Mine including the achievement of the mine's
production guidance for the second half of the year.
WEBCAST AND CONFERENCE CALL TO DISCUSS THE SECOND QUARTER
2019 FINANCIAL RESULTS
The Company has scheduled the release of its second quarter 2019
financial results for Thursday, July 25,
2019 after market close. A conference call and webcast
will be held on July 26, 2019 at
8:30 a.m. Eastern Time (5:30 a.m. Pacific Time) to discuss the results
and provide a corporate update. Mr. James Bannantine, President and CEO and Mr.
Jim Zadra, CFO and Corporate
Secretary will host the call.
Shareholders, analysts, investors and media are invited to join
the live webcast and conference call by logging in or calling in
five minutes prior to the start time.
Live webcast and
registration:
|
www.greatpanther.com
|
U.S. & Canada
Toll-Free:
|
1 800 319
4610
|
International
Toll:
|
+1 604 638
5340
|
A replay of the webcast will be available on the
Webcasts section of the Company's website approximately one
hour after the conference call. Audio replay will be
available for four weeks by calling:
U.S. & Canada
Toll-Free:
|
1 800 319 6413,
replay code 3159
|
International
Toll:
|
+1 604 638 9010,
replay code 3159
|
ABOUT GREAT PANTHER
Great Panther Mining Limited is an
intermediate gold and silver mining and exploration company listed
on the Toronto Stock Exchange trading under the symbol GPR, and on
the NYSE American under the symbol GPL. Great Panther
operates three mines including the Tucano Gold Mine in Amapá State,
Brazil, and two primary silver
mines in Mexico: the Guanajuato
Mine Complex and the Topia Mine. Great Panther also owns the
Coricancha Mine in Peru, which is
expected to restart operations in 2020.
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,
statements regarding the Company's production guidance and ability
to meet its production guidance, expectations of cash cost and
AISC, the exploration potential of Tucano and GMC, the planned
increase in processing capacity of Topia, the timing for an updated resource
estimate for GMC, and the timing of a production restart for the
Coricancha project.
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
potential political and social risks involving Great Panther's
operations in a foreign jurisdiction, the potential for unexpected
costs and expenses, fluctuations in metal prices, fluctuations in
currency exchange rates, physical risks inherent in mining
operations, operating or technical difficulties in mineral
exploration, changes in project parameters as plans continue to be
refined, and other risks and uncertainties, including those
described in respect of Great Panther, in its annual information
form for the year ended December 31,
2018 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.
There is no assurance that such forward looking statements will
prove accurate; results may vary materially from such
forward-looking statements; and there is no assurance that the
Company will be able to identify and acquire additional projects or
that any projects acquired will be successfully developed. Readers
are cautioned not to place undue reliance on forward looking
statements. The Company has no intention to update forward looking
statements except as required by law:
GREAT PANTHER
MINING LIMITED (FORMERLY GREAT PANTHER SILVER LIMITED)
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in thousands of US dollars - Unaudited)
|
|
|
|
|
|
June 30,
2019
|
|
December 31,
2018
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
9,945
|
|
$
|
24,524
|
Short-term
deposits
|
–
|
|
26,057
|
Trade and other
receivables
|
14,659
|
|
8,887
|
Inventories
|
54,685
|
|
4,828
|
Loan
receivable
|
–
|
|
5,048
|
Reimbursement
rights
|
5,292
|
|
6,385
|
Derivative
assets
|
2,506
|
|
738
|
Other current
assets
|
2,170
|
|
504
|
|
89,257
|
|
76,971
|
Restricted
cash
|
928
|
|
1,237
|
Other
receivables
|
22,788
|
|
–
|
Inventories –
non-current
|
–
|
|
1,420
|
Reimbursement
rights
|
5,623
|
|
4,470
|
Mineral properties,
plant and equipment
|
177,858
|
|
13,391
|
Exploration and
evaluation assets
|
14,679
|
|
15,065
|
Deferred tax
assets
|
216
|
|
222
|
|
$
|
311,349
|
|
$
|
112,776
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
Trade payables and
accrued liabilities
|
$
|
55,207
|
|
$
|
10,647
|
Current portion of
borrowings
|
26,585
|
|
–
|
Current portion of
borrowings – MACA Limited – Conversion rights
|
3,510
|
|
–
|
Reclamation and
remediation provisions – current
|
3,484
|
|
4,473
|
|
88,786
|
|
15,120
|
Other
liabilities
|
16,355
|
|
–
|
Borrowings – MACA
Limited
|
12,440
|
|
–
|
Reclamation and
remediation provisions
|
30,961
|
|
22,947
|
Deferred tax
liabilities
|
2,142
|
|
2,053
|
|
150,684
|
|
40,120
|
Shareholders'
equity:
|
|
|
|
Share
capital
|
231,984
|
|
130,912
|
Reserves
|
21,540
|
|
19,829
|
Deficit
|
(92,859)
|
|
(78,085)
|
|
160,665
|
|
72,656
|
|
$
|
311,349
|
|
$
|
112,776
|
GREAT PANTHER
MINING LIMITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF
INCOME (LOSS)
(Expressed in thousands of US dollars - Unaudited)
|
|
|
|
|
|
For the three and six
months ended June 30, 2019 and 2018 (Unaudited)
|
|
|
Three months
ended
June 30,
|
|
Six months
ended
June 30,
|
|
|
2019
|
2018
|
|
2019
|
2018
|
|
|
|
|
|
|
Revenue
|
$
|
45,278
|
$
|
17,077
|
|
$
|
61,972
|
$
|
34,096
|
|
|
|
|
|
|
|
Cost of
sales
|
|
|
|
|
|
|
Production
costs
|
33,480
|
12,967
|
|
46,070
|
24,761
|
|
Amortization and
depletion
|
9,014
|
1,082
|
|
11,465
|
2,212
|
|
Share-based
compensation
|
89
|
125
|
|
158
|
201
|
|
|
42,583
|
14,174
|
|
57,693
|
27,174
|
|
|
|
|
|
|
|
Mine operating
earnings
|
2,695
|
2,903
|
|
4,279
|
6,922
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
|
|
|
|
Administrative
expenses
|
2,923
|
1,348
|
|
4,818
|
2,731
|
|
Amortization and
depletion
|
125
|
26
|
|
218
|
52
|
|
Share-based
compensation
|
145
|
328
|
|
661
|
574
|
|
|
3,193
|
1,702
|
|
5,697
|
3,357
|
|
|
|
|
|
|
|
Exploration,
evaluation, and development expenses
|
|
|
|
|
|
|
Exploration and
evaluation expenses
|
4,074
|
2,071
|
|
6,429
|
4,767
|
|
Mine development
costs
|
408
|
574
|
|
834
|
1,181
|
|
Share-based
compensation
|
6
|
(28)
|
|
(16)
|
(5)
|
|
|
4,488
|
2,617
|
|
7,247
|
5,943
|
|
|
|
|
|
|
|
Business acquisition
costs
|
165
|
–
|
|
2,786
|
–
|
|
|
|
|
|
|
Care and maintenance
costs
|
238
|
–
|
|
385
|
–
|
|
|
|
|
|
|
Finance and other
income (expense)
|
|
|
|
|
|
|
Interest
income
|
77
|
270
|
|
490
|
738
|
|
Finance
costs
|
(2,344)
|
–
|
|
(2,938)
|
(19)
|
|
Accretion
expense
|
(209)
|
(341)
|
|
(423)
|
(619)
|
|
Foreign exchange gain
(loss)
|
3,449
|
(849)
|
|
1,732
|
(151)
|
|
Other income
(expense)
|
(1,057)
|
8
|
|
(1,402)
|
28
|
|
|
(84)
|
(912)
|
|
(2,541)
|
(23)
|
|
|
|
|
|
|
|
Loss before income
taxes
|
(5,473)
|
(2,328)
|
|
(14,377)
|
(2,401)
|
|
|
|
|
Income tax
expense
|
154
|
437
|
|
397
|
461
|
|
|
|
|
Net loss for the
period
|
$
|
(5,627)
|
$
|
(2,765)
|
|
$
|
(14,774)
|
$
|
(2,862)
|
|
|
|
|
|
|
|
Loss per share –
basic and diluted
|
$
|
(0.02)
|
$
|
(0.02)
|
|
$
|
(0.06)
|
$
|
(0.02)
|
GREAT PANTHER
MINING LIMITED CONDENSED INTERIM CONSOLIDATED STATEMENTS OF
CASH FLOWS
(Expressed in thousands of US dollars)
|
For the three and six
months ended June 30, 2019 and 2018 (Unaudited)
|
|
|
|
|
|
|
Three months
ended
|
Six months
ended
|
|
|
June
30,
|
June
30,
|
|
|
2019
|
2018
|
2019
|
2018
|
Cash flows from
operating activities:
|
|
|
|
|
Net loss for the
period
|
$
|
(5,627)
|
$
|
(2,765)
|
$
|
(14,774)
|
$
|
(2,862)
|
Items not involving
cash:
|
|
|
|
|
|
Amortization and
depletion
|
9,139
|
1,108
|
11,683
|
2,264
|
|
Unrealized foreign
exchange loss (gain)
|
(2,639)
|
305
|
(351)
|
(68)
|
|
Income tax
expense
|
154
|
437
|
397
|
461
|
|
Share-based
compensation
|
240
|
425
|
803
|
770
|
|
Other non-cash
items
|
2,547
|
118
|
2,926
|
(198)
|
Interest
received
|
175
|
235
|
451
|
618
|
Interest
paid
|
(2,342)
|
(19)
|
(2,687)
|
(38)
|
Income taxes
paid
|
(52)
|
(381)
|
(356)
|
(1,365)
|
|
|
1,595
|
(537)
|
(1,908)
|
(418)
|
Changes in non-cash
working capital:
|
|
|
|
|
|
Trade and other
receivables
|
(2,466)
|
(366)
|
(1,130)
|
4,444
|
|
Inventories
|
(7,281)
|
775
|
(11,555)
|
1,095
|
|
Other current
assets
|
(794)
|
90
|
(315)
|
(380)
|
|
Trade payables and
accrued liabilities
|
5,137
|
(648)
|
2,170
|
(1,368)
|
|
Net cash provided by
(used in) operating activities
|
(3,809)
|
(686)
|
(12,7382)
|
3,373
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
Cash restricted for
Coricancha environmental bond
|
1,233
|
–
|
370
|
–
|
|
Cash received on
Acquisition of Beadell
|
–
|
–
|
1,441
|
–
|
|
Redemptions of
(investments in) short-term deposits, net
|
6,750
|
(6,646)
|
26,057
|
(2,819)
|
|
Repayment received
prior to Acquisition on loan advanced to Beadell
|
–
|
–
|
3,069
|
–
|
|
Advances to Beadell
prior to Acquisition
|
–
|
–
|
(354)
|
–
|
|
Additions to mineral
properties, plant and equipment
|
(6,326)
|
(473)
|
(10,393)
|
(771)
|
|
Net cash provided by
investing activities
|
1,657
|
(7,119)
|
20,190
|
(3,590)
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
Payment of lease
liabilities
|
(1,923)
|
–
|
(2,381)
|
–
|
|
Proceeds from
borrowings
|
3,593
|
–
|
5,039
|
–
|
|
Repayment of
borrowings
|
(24,279)
|
–
|
(25,279)
|
–
|
|
Proceeds from
exercise of share options
|
41
|
200
|
499
|
342
|
|
Net cash from
financing activities
|
(22,568)
|
200
|
(22,122)
|
342
|
|
|
|
|
|
|
Effect of foreign
currency translation on cash and cash equivalents
|
56
|
(163)
|
91
|
(70)
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
(24,664)
|
(7,768)
|
(14,579)
|
55
|
Cash and cash
equivalents, beginning of period
|
34,609
|
44,620
|
24,524
|
36,797
|
Cash and cash
equivalents, end of period
|
$
|
9,945
|
$
|
36,852
|
$
|
9,945
|
$
|
36,852
|
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SOURCE Great Panther Mining Limited