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fmartin2008on Oct 05, 2010 8:23pm
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RE: Should see Archer on the 21 and 22
RE: Should see Archer on the 21 and 22News
October 05, 2010
Great Panther Drives On Towards A Production Goal Of 3.8 Million Ounces Of Silver Equivalent Per Year
By Alastair Ford
It’s all hands on deck at Great Panther Silver, as the drive to increased production continues. The plan is to get to a production rate of 3.8 million ounces of silver equivalent per year by 2012, through the installation of new equipment and the opening up of new zones at the company’s two Mexican mines, Topia in the Sierra Madre in Durango State, and Guanajuato, near Gaudalajara. And what a time to be doing it! With silver pushing past US$22 per ounce and gold consolidating at well over US$1,300, it seems like the dark days of the financial crisis are well and truly over. During the worst days of the crisis, towards the end of 2008, Great Panther had to cut production, and slash costs drastically, just to stay in business. Now, production is on the rise, and Great Panther is spending C$20 million on new equipment. But, in a true sign that times really have changed, that C$20 million spend isn’t proving to be a stretch at all: “Even with that spend we’re managing to pay for everything out of cashflow”, says chief executive Bob Archer. And, he adds, the C$10 million that the company is holding in the bank remains unaffected.
The most recent financials tell a clear story of a company enjoying the booming silver and gold prices. Gold makes up around 23 per cent of Great Panther’s revenues, Silver about 70 per cent, with the remaining income derived from base metal credits from Topia. And even base metals are doing well at the moment. Helped along by record rates of production on several metrics, Great Panther was able to report for the six months to June 2010 that sales had increased to C$17.2 million, compared to...