VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 14, 2012) - GREAT PANTHER SILVER LIMITED (TSX:GPR)(NYSE Amex:GPL) ("Great Panther" or the "Company") today reported financial results for the Company's first quarter ended March 31, 2012. The full version of the Company's financial statements and management discussion and analysis 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 and all dollar amounts are expressed in Canadian dollars unless otherwise indicated.
"First quarter revenue was directly in line with our expectations, considering the lower production and metal prices compared to Q1 of last year," stated Robert Archer, President and CEO. "This was also a timing issue for us related to a shipment of concentrate to a new smelter where the revenue will be recognized in Q2 this year. With the addition of this new customer, we have secured contracts for the sale of our concentrates for our 2012 planned production."
FIRST QUARTER 2012 FINANCIAL SUMMARY
|
|
Q1 2012 |
|
Q1 2011 |
Change
from
Q1 2011 |
|
| Highlights |
| (in 000s except amounts per share and per ounce) |
| Revenue |
$ |
13,625 |
$ |
15,460 |
-12 |
% |
| Gross profit (Earnings from mining operations) |
$ |
6,325 |
$ |
8,613 |
-27 |
% |
| Net income |
$ |
4,683 |
$ |
7,009 |
-33 |
% |
| Adjusted EBITDA1 |
$ |
4,441 |
$ |
7,874 |
-44 |
% |
| Earnings per share - basic |
$ |
0.03 |
$ |
0.06 |
-50 |
% |
| Earnings per share - diluted |
$ |
0.03 |
$ |
0.05 |
-40 |
% |
|
|
| Silver ounces produced |
|
359,526 |
|
410,640 |
-12 |
% |
| Silver equivalent ounces produced2 |
|
557,667 |
|
607,225 |
-8 |
% |
| Silver payable ounces |
|
316,641 |
|
348,439 |
-9 |
% |
|
|
| Total cash cost per silver ounce3 |
$ |
9.05 |
$ |
10.33 |
-12 |
% |
| Average revenue per silver ounce sold (USD) |
$ |
32.65 |
$ |
38.54 |
-15 |
% |
- "Adjusted EBITDA" is a non-IFRS measure in which standard EBITDA (earnings before interest, taxes, depreciation and amortization) is adjusted for share-based payments, foreign exchange gains or losses, and non-recurring items. Refer to the "Non-IFRS Measures" section for a reconciliation of standardized and adjusted EBITDA to the financial statements.
- Silver equivalent ounces in 2012 were established using prices of US$28 per oz, US$1,680 per oz, US
.85 per lb, and US
.85 per lb for silver, gold, lead & zinc, respectively, and applied to the recovered metal content of the concentrates that were produced by the two operations.
- "Cash cost per silver ounce" is a non-IFRS measure and is used by the Company to manage and evaluate operating performance at each of the Company's mines and is widely reported in the silver mining industry as a benchmark for performance, but does not have a standardized meaning. Refer to the "Non-IFRS Measures" section.
FIRST QUARTER 2012 OPERATIONAL HIGHLIGHTS Gold production reached a record 2,729 ounces; an increase of 20% over the fourth quarter of 2011 and 18% over the first quarter of 2011. Metal production increased 2% to 557,667 silver equivalent ounces ("Ag eq oz") from the fourth quarter of 2011, but declined 8% from the first quarter of 2011. Silver production increased 1% to 359,526 ounces from the fourth quarter of 2011, but declined 12% from the first quarter of 2011. Lead and zinc production was 202 tonnes and 312 tonnes respectively. This compares to 212 tonnes of lead and 327 tonnes of zinc produced in the fourth quarter of 2011, and the 241 tonnes of lead and 345 tonnes of zinc in the first quarter of 2011.
OUTLOOK
The Company is maintaining its guidance for metal production in the range of 2.50 to 2.75 million Ag eq oz for fiscal 2012, as compared to metal production of 2.2 million Ag eq oz for fiscal 2011.
First quarter production of 557,667 Ag eq oz, demonstrated only modest growth over the fourth quarter of 2011 but production for the remainder of the year is expected to continue to grow. There are a number of positive developments that support the growth estimate as follows:
At Guanajuato:
- Ore grades for the first quarter of 2012, at 213g/t Ag and 2.30g/t Au, represent a 21% increase over the average for 2011. Mining of the high grade Deep Cata and the gold-rich Santa Margarita ore bodies has already demonstrated the potential to build on this improvement. Further expansions of production from these areas are planned during 2012.
- Plant metallurgy has already achieved record metal recovery and further improvements are anticipated with the addition of the re-grind mill at the Cata plant.
- Plant capacity is more than sufficient to handle any increase in throughput.
At Topia:
- The primary reason for the shortfall in production at Topia was a 20% reduction in ore grades in terms of silver equivalents for first quarter of 2012 as compared to first quarter of 2011. While ore grades were down for the quarter, grades improved in March to well above the average for 2011 and new vein developments support higher grades throughout 2012.
- Plant modifications and efficiencies, including additional flotation cells, have been completed to facilitate improved metallurgical performance.
- The extreme dry season affecting central Mexico, resulting in a water shortage, has caused plant capacity to be limited to 160 tonnes per day during the last month of the quarter, a reduction of almost 30%. Custom milling throughput has been reduced temporarily and any excess ore will be stockpiled for processing later in the year after the rainy season starts. There is currently no plant capacity shortfall anticipated for the remainder of the year.
| 2012 Production and Cash Cost per Ounce Guidance |
|
|
|
2011
Actual |
|
2012
Guidance
Low Case |
|
2012
Guidance
High Case |
|
|
|
| Tonnes milled |
|
216,181 |
|
230,000 |
|
250,000 |
|
| Silver ounces |
|
1,495,372 |
|
1,720,000 |
|
1,900,000 |
| Gold ounces |
|
8,016 |
|
10,000 |
|
11,000 |
| Lead tonnes |
|
941 |
|
1,130 |
|
1,270 |
| Zinc tonnes |
|
1,314 |
|
1,500 |
|
1,630 |
|
| Silver equivalent ounces |
|
2,200,013 |
|
2,500,000 |
|
2,750,000 |
|
| Cash cost per ounce (USD) |
$ |
10.84 |
$ |
10.50 |
$ |
9.50 |
CONFERENCE CALL TO DISCUSS FIRST QUARTER 2012 FINANCIAL RESULTS
The Company will hold a conference call to discuss the financial results on May 15, 2012, at 7:00 AM Pacific Daylight Time, 10:00 AM Eastern Daylight Time. Hosting the call will be Mr. Robert Archer, President and Chief Executive Officer and Mr. Martin Carsky, Executive Vice President and Chief Financial Officer.
Interested shareholders, analysts, investors and media are invited to join the live conference call by dialing in just prior to the start time.
Dial in number (Toll Free): 1-877-407-9205
Dial in number (International): +1-201-689-8054
No passcode is required
A replay of the teleconference call will be available on May 15, 2012 from 10:00 AM Pacific Daylight Time, 1:00 PM Eastern Daylight Time until May 31, 2012 by dialing the numbers below. In addition, the call will be archived on the Company's website.
Replay number (Toll Free): 1-877-660-6853
Replay number (International): +1-201-612-7415
Replay Passcodes (both are required for playback): Account #: 286
Conference ID #: 377042
INTERNATIONAL FINANCIAL REPORTING STANDARDS