TSX: GPR
NYSE MKT: GPL
VANCOUVER, Feb. 27, 2017 /CNW/ - GREAT PANTHER SILVER
LIMITED (TSX: GPR) (NYSE MKT: GPL) ("Great Panther"; or the
"Company") today reported financial results for the Company's year
ended December 31, 2016. The
full version of the Company's consolidated financial statements and
Management's Discussion and Analysis ("MD&A") can be viewed on
the Company's website at www.greatpanther.com or SEDAR at
www.sedar.com. All shareholders can receive a hard copy of the
Company's complete audited financial statements free of charge upon
request. All financial information is prepared in accordance
with IFRS, except as noted under the Non-IFRS Measures
section.
Great Panther commenced reporting its financial results in US
dollars as of the third quarter of 2016. Accordingly, all
dollar amounts expressed in this news release, and the associated
financial statements and MD&A, are in US dollars ("USD"),
unless otherwise noted. Periods prior to the third quarter of
2016 were reported in Canadian dollars ("CAD"), and have been
restated to USD using the July 1,
2016 CAD/USD exchange rate of 1.3052.
"Improved metal prices, combined with a 20% reduction in our
all-in sustaining costs to $10.99,
resulted in Great Panther delivering a 404% increase in mine
operating earnings in 2016," stated Robert
Archer, President & CEO. "Significantly improved
operating cash flow, combined with the proceeds of financings
completed in 2016, enabled us to end the year with $67 million in net working capital, no debt, and
positions us well to capitalize on growth opportunities such as the
recently signed Coricancha acquisition."
Improved metal prices and significantly lower costs drove
substantial improvements in margins and cash flow in 2016,
including a $17.6 million increase in
mine operating earnings. Despite the substantial increase in
mine operating earnings, the Company reported a net loss of
$4.1 million for 2016, mainly due to
foreign exchange losses of $11.1
million. The majority of the foreign exchange losses
are non-cash and relate to the revaluation of foreign-denominated
assets and liabilities, including certain intercompany balances,
for fluctuations in exchange rates. These primarily arose in
the first half of 2016 prior to change-over from Canadian dollar to
US dollar reporting and related changes in functional currencies of
some of the Great Panther group companies. The 2016 financial
results also reflected a $1.7 million
write-down associated with the termination of an option to purchase
the Coricancha mine in May of 2016. Later in the year, Great
Panther successfully re-negotiated and concluded an agreement to
purchase the Coricancha mine.
Cash costs of $3.65 per payable
silver ounce for 2016 represented a 51% decrease over the prior
year, and all-in sustaining costs per payable silver ounce ("AISC")
were down 20%, and both were below the Company's guidance.
The decline in the Mexican peso relative to the US dollar was a
significant factor in the reduction of these costs.
The construction of the Phase II tailings storage facility and
related plant upgrades at the Topia Mine are progressing well, and
the Company expects to restart processing before the end of the
first quarter, as planned. The costs of the project will be
accounted for as sustaining capital expenditures. This, along
with the impact of suspended production for a good portion of the
quarter, will result in adverse cash cost and AISC metrics for the
first quarter. The impact on the full-year cash cost and AISC
will be less pronounced. See the Outlook section for a
more detailed discussion.
Fiscal Year 2016 compared to Fiscal Year 2015, unless
otherwise noted:
- Metal production decreased 7% to 3,884,960 silver equivalent
ounces ("Ag eq oz");
- Silver production decreased 14% to 2,047,260 ounces;
- Gold production increased 2% to 22,238 ounces, an annual
record;
- Cash cost decreased 51% to $3.65
per payable silver ounce, and was below guidance;
- Cash cost per Ag eq oz decreased 9% to $10.35;
- AISC decreased 20% to $10.99 per
payable silver ounce, and was also below guidance;
- AISC per Ag eq oz decreased 5% to $14.29;
- Revenue increased 10% to $61.9
million;
- Mine operating earnings before non-cash items increased to
$27.7 million, a 51% increase
compared to $18.4 million;
- Adjusted EBITDA improved to $16.5
million from $7.1
million;
- Net loss totalled $4.1 million,
compared to a net loss of $7.2
million;
- Cash flows from operating activities, before changes in
non-cash net working capital ("NCWC"), increased to $16.0 million, from $7.0
million;
- Cash and short-term deposits increased to $56.7 million at December
31, 2016 from $13.7 million at
December 31, 2015; and
- Net working capital increased to $66.6
million at December 31, 2016
from $25.5 million at December 31, 2015.
Fourth quarter 2016 compared to fourth quarter
2015:
- Metal production decreased 12% to 883,772 Ag eq oz;
- Silver production decreased 17% to 460,571 ounces;
- Gold production decreased 8% to 5,206 ounces;
- Cash cost decreased 28% to $5.83
per ounce;
- AISC increased 9% to $16.44 per
payable silver ounce;
- Revenue decreased 5% to $12.5
million;
- Mine operating earnings before non-cash items was $4.5 million, an increase of 19%;
- Adjusted EBITDA amounted to $1.4
million compared to negative $0.4
million;
- Net loss totalled $1.5 million,
compared to a net loss of $3.7
million; and
- Cash flow from operating activities before changes in non-cash
net working capital amounted to $1.1
million, compared to negative $0.6
million.
OPERATING AND FINANCIAL RESULTS SUMMARY
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Q4
2016
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Q4
2015
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Change
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2016
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2015
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Change
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OPERATING
RESULTS
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Tonnes milled
(excluding custom milling)
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92,869
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94,874
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(2%)
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376,739
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375,332
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0%
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Ag eq oz
produced1
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883,772
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1,002,584
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(12%)
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3,884,960
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4,159,121
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(7%)
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Silver ounce
production
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460,571
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553,189
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(17%)
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2,047,260
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2,386,028
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(14%)
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Gold ounce
production
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5,206
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5,637
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(8%)
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22,238
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21,740
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2%
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Payable silver
ounces
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488,428
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502,170
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(3%)
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2,010,252
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2,278,194
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(12%)
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Ag eq oz
sold
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883,348
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921,710
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(4%)
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3,742,733
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3,883,643
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(4%)
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Cost per tonne
milled2
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$
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86
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$
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97
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(11%)
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$
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88
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$
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101
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(13%)
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Cash
cost2
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$
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5.83
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$
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8.14
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(28%)
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$
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3.65
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$
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7.50
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(51%)
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Cash cost per Ag eq
oz2
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$
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10.48
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$
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11.31
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(7%)
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$
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10.35
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$
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11.32
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(9%)
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AISC2
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$
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16.44
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$
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15.10
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9%
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$
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10.99
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$
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13.76
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(20%)
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AISC per Ag eq
oz2
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$
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16.34
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$
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15.07
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8%
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$
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14.29
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$
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15.00
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(5%)
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(in 000's, unless
otherwise noted)
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Q4
2016
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Q4
2015
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Change
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2016
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2015
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Change
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FINANCIAL
RESULTS
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Revenue
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$
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12,515
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$
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13,142
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(5%)
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$
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61,881
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$
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56,218
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10%
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Mine operating
earnings before non-cash items2
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$
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4,476
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$
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3,760
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19%
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$
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27,728
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$
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18,416
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51%
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Mine operating
earnings
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$
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2,411
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$
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2,471
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(2%)
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$
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22,022
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$
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4,366
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404%
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Net loss
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$
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(1,498)
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$
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(3,725)
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(60%)
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$
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(4,118)
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$
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(7,157)
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(42%)
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Adjusted
EBITDA2
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$
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1,376
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$
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(427)
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(422%)
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$
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16,519
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$
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7,138
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131%
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Operating cash flows
before changes in non-
cash net working capital
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$
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1,119
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$
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(593)
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(289%)
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$
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15,975
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$
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7,037
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127%
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Cash and short-term
deposits at end of period
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$
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56,662
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$
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13,685
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314%
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$
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56,662
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$
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13,685
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314%
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Net working capital
at end of period
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$
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66,560
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$
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25,477
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161%
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$
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66,560
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$
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25,477
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161%
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Average realized
silver price per oz 3
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$
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14.99
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$
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13.57
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10%
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$
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17.15
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$
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15.11
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14%
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Loss per share –
basic and diluted
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$
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(0.01)
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$
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(0.03)
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(67%)
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$
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(0.03)
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$
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(0.05)
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(40%)
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_______________________
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1 Silver equivalent ounces are
referred to throughout this document. For 2016, Ag eq oz are
calculated using a 70:1 Ag:Au ratio and ratios of 1:0.0504 and
1:0.0504 for the price/ounce of silver to lead and zinc
price/pound, respectively, and applied to the relevant metal
content of the concentrates produced, expected to be produced, or
sold from operations. Comparatively, in 2015 Ag eq oz were
calculated using a 65:1 Ag:Au ratio, and ratios of 1:0.050 and
1:0.056 for the price/ounce of silver to lead and zinc price/pound,
respectively, and applied to the relevant metal content of the
concentrates produced, expected to be produced, or sold from
operations.
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2 The
Company has included the non-IFRS performance measures cost per
tonne milled, cash cost, cash cost per Ag eq oz, AISC, AISC per Ag
eq oz, mine operating earnings before non-cash items and adjusted
EBITDA throughout this document. Refer to the Non-IFRS Measures
section of the 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.
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3 Average
realized silver price is prior to smelting and refining
charges.
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DISCUSSION OF FULL YEAR 2016 FINANCIAL RESULTS
For the year ended December 31,
2016, the Company earned revenues of $61.9 million, compared to $56.2 million for 2015. The increase in
revenue was primarily attributable to a 14% increase in the average
realized prices for silver and gold. This accounted for an
$8.0 million improvement in revenues,
while the effect of favourable foreign exchange (prior to the
change in functional currency on July 1,
2016) had an estimated positive impact of $0.7 million. In addition, smelting and
refining charges, which are netted against revenue, were
$0.6 million lower compared to prior
year. These factors were partly offset by the impact of 4%
lower metal sales volumes which reduced revenues by $3.6 million. The lower metal sales volume
corresponds to the decrease in production.
The decrease in production costs was predominantly attributable
to the decrease in unit production costs during the year ended
December 31, 2016 compared to 2015,
as the USD strengthened 14% against the Mexican peso ("MXN"), which
had the impact of reducing MXN production costs in USD terms.
This was augmented by the impact of the 4% lower metal sales
volumes.
Mine operating earnings before non-cash items for 2016 increased
by $9.3 million compared to
2015. This increase was the result of the increase in
revenue, combined with the above noted decrease production
costs.
Amortization and depletion for 2016 declined by 61%, compared to
2015, primarily due to the cessation of amortization of the
Guanajuato mineral property in the
third quarter of 2015 as it was fully amortized. In addition,
there was an increase in the useful lives of certain GMC assets
effective January 1, 2016, and the
Topia Mine effective July 1, 2015, as
a result of the updated mineral resource estimates issued in
February 2016 and August 2015, respectively. These factors
were partly offset by the impact of the Company amortizing the
remaining carrying value of the Phase I tailings storage facility
at Topia.
For the year ended December 31,
2016, mine operating earnings were $22.0 million compared to $4.4 million in 2015. The 404% improvement
in mine operating earnings was due to the increase in revenue
coupled with the decrease in production costs and the $8.3 million decrease in amortization and
depletion expense.
General and administrative ("G&A") expenses decreased
$0.3 million, primarily due to a
reduction in IT consulting and hosting fees, as well as a reduction
in professional services fees.
Exploration, evaluation and development ("EE&D") expenses
decreased $0.3 million, due to a
$0.5 million decrease in the estimate
of reclamation provisions, a $0.2
million decrease in share-based compensation expense, and a
$0.2 million net decrease in
exploration expenses associated with the Guadalupe de los Reyes
("GDLR") and Coricancha projects. These items were partly
offset by a $0.4 million increase in
the Company's EE&D expenses associated with the GMC as the
Company's focus on mine development and exploration drilling
shifted from the Guanajuato Mine to the San Ignacio Mine, and the
Company only commenced expensing development expenditures
associated with the Guanajuato Mine part-way through 2015.
A pre-tax impairment charge of $1.7
million was recorded in 2016 in connection with the
termination of the option agreement related to the Coricancha Mine
Complex (the "CMC") in Peru that
the Company entered into with Nyrstar in May
2015 and terminated in May 2016. During 2015, the
Company recorded an impairment charge of $2.3 million related to the termination of the
option agreement associated with the GDLR project.
Finance and other expense amounted to $11.0 million, wholly attributable to net foreign
exchange losses recognized during 2016, compared to a $3.1 million foreign exchange gain recorded
during 2015. Prior to the change in functional currency of
the Company and certain of its Mexican subsidiaries on July 1, 2016, significant foreign exchange
differences associated with intercompany balances were
recorded. This represented the main component of the
$9.5 million net foreign exchange
losses during the first half of the year. The foreign
exchange losses for the year ended December
31, 2016 also include $0.5
million associated with the Company's foreign currency
forward contracts.
The net income tax expense for the year ended December 31, 2016 amounted to $1.5 million and was attributable to a
$1.5 million accrual for special
mining duty payable in Mexico
(which is charged at 7.5% of a taxable net income, adjusted for
certain factors), $0.4 million in
Mexican withholding taxes, as well as $0.2
million in deferred income tax expense recognized by two of
the Company's Mexican subsidiaries. These factors were partly
offset by a $0.6 million reduction in
deferred special mining duty payable.
The $3.0 million decrease in net
loss in 2016 compared to 2015 was mainly due to a $17.7 million increase in mine operating
earnings, the $0.3 million decrease
in G&A expenses, the $0.3 million
decrease in EE&D expenditures. In addition, the net loss
for 2016 included the $1.7 million
impairment charge taken upon termination of the CMC option
agreement, whereas the net loss for 2015 reflected a $2.3 million impairment charge taken on the GDLR
project. These factors were partly offset by a $1.5 million increase in net income tax expense
and a $14.3 million increase in
foreign exchange loss.
Adjusted EBITDA increased in 2016 by $9.4
million compared to 2015, primarily due to the $9.3 million increase in mine operating earnings
before non-cash items and a $0.5
million decrease in G&A expenses before non-cash
items. These factors were partly offset by a $0.4 million increase in EE&D expenses (net
of changes in non-cash share based compensation and changes in
estimate of reclamation provisions).
Refer to the Company's MD&A for the year ended December 31, 2016 for more details of the 2016
financial results, including a discussion of the results for the
fourth quarter of 2016.
CASH COST AND ALL-IN COSTS
Cash cost was $3.65 for the year
ended December 31, 2016, a 51%
decrease compared to the year ended December
31, 2015 and below the lower end of the Company's
guidance. The decrease in cash cost was due to the impact of
higher by-product credits due to higher average realized gold, zinc
and lead prices. In addition, the strengthening of the USD
compared to the MXN reduced cash operating costs in USD
terms. These factors were partly offset by higher MXN unit
production costs and the impact of lower payable silver ounces,
both of which were attributable in part to the lower ore
grades.
AISC for the year ended December 31,
2016 was $10.99, a 20%
decrease compared to the prior year and also below guidance,
primarily due to the reduction in cash cost described above, as
well as reductions in sustaining EE&D and G&A
expenditures. The impact of the lower cash cost was partly
offset by the impact of an increase in sustaining capital
expenditures and lower payable silver ounces which further
increased sustaining capital expenditures on a per-unit basis.
Cash cost for the fourth quarter of 2016 decreased 28% compared
to the fourth quarter of 2015, to $5.83. The decrease in cash cost was
predominantly the result of the strengthening of the USD compared
to the MXN which had the effect of reducing cash operating costs in
USD terms (production costs are predominantly denominated in
MXN). In addition, cash cost metrics in the fourth quarter of
2016 benefitted from higher by-product credits per payable silver
ounce, resulting from an increase in average realized gold, zinc
and lead prices. These factors were partly offset by higher
MXN unit production costs and the impact of lower payable silver
ounces.
AISC for the fourth quarter of 2016 was $16.44, a 9% increase compared to the fourth
quarter of 2015, predominantly due to an increase in sustaining
capital expenditures including the construction of the Phase II
tailings storage facility and related plant upgrades at
Topia. This was partly offset by the reduction in cash cost
described above.
Please refer to the Non-IFRS Measures section in the
Company's MD&A for the year ended December 31, 2016, for further discussion of cash
cost and AISC, and for a reconciliation to the Company's financial
results as reported under IFRS.
CASH, SHORT-TERM DEPOSITS AND WORKING CAPITAL AT DECEMBER 31, 2016
At December 31, 2016, the Company
had cash and short-term deposits of $56.7
million, compared to $13.7
million at December 31,
2015. The Company does not have any debt.
Cash and cash equivalents increased significantly during 2016
primarily due to the $33.1 million in
proceeds received from financings. In addition, the Company
generated positive cash flows from operating activities before
changes in non-cash working capital of $16.0
million, and received $2.2
million from the exercise of stock options. These
factors were partly offset by the $15.0
million increase in short-term deposits (cash invested in
term deposits with a maturity exceeding three months from the date
of acquisition), $4.7 million
invested in mineral properties, plant and equipment, as well as an
increase in non-cash net working capital of $2.3 million, and a negative $1.3 million foreign exchange adjustment on cash
balances.
At December 31, 2016, the Company
had net working capital of $66.6
million compared to $25.5
million at December 31,
2015. The significant increase in net working capital during
2016 reflects the above noted proceeds from financings and exercise
of stock options. In addition, the Company generated
$13.6 million in cash flows from
operating activities. These factors were partly offset by
$4.7 million cash used for investing
in non-current assets, and foreign exchange losses recognized on
net working capital balances.
OUTLOOK
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Production and
cash cost guidance
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FY 2017
Guidance
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FY 2016
Actual
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Total silver
equivalent ounces1
|
|
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|
|
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4,000,000 -
4,100,000
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|
3,884,960
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Total payable silver
ounces
|
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|
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1,950,000 -
2,000,000
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2,010,252
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Cash
cost2
|
|
|
|
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|
$ 5.00 –
6.00
|
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$ 3.65
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AISC2
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$ 14.00 –
16.00
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$ 10.99
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For 2017, the Company expects cash cost to increase due to
increases in site costs and increased expenditures on definition
drilling aimed at reducing grade variability and improving mine
planning. AISC is also expected to increase due to the
increase in cash cost and greater investment in drilling,
development and capital projects. In particular, AISC will
reflect the non-recurring capital expenditures in the new tailings
facility at Topia which will primarily be incurred in the first
quarter of 2017.
The Company provides the following guidance for capital
expenditures and EE&D expenses.
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Capex and EE&D
expense guidance (in millions)
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FY 2017
Guidance
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FY 2016
Actual
|
Capital
expenditures
|
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$ 6.3 –
7.3
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$ 4.8
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EE&D expenses –
operating mines
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$ 3.5 –
4.5
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$ 3.0
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_______________________
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1 For 2017
guidance, Ag eq oz have been established using a 70:1 Au:Ag ratio,
and ratios of 1:0.0559 and 1:0.676 for the USD price of silver
ounces to the USD price for lead and zinc pounds, respectively. For
2016, Ag eq oz were calculated using a 70:1 Ag:Au ratio, and a
ratio of 1:0.0504 for the USD price of silver ounces to the USD
price for both lead and zinc pounds.
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2 Cash
cost and AISC are non-IFRS measures. Refer to the Non-IFRS Measures
section of this 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.
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WEBCAST AND CONFERENCE CALL TO DISCUSS FISCAL YEAR 2016
FINANCIAL RESULTS
Great Panther will hold a live webcast and conference call to
discuss the financial results on February
28, 2017, at 8:00 am Pacific
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 calling in
five minutes prior to the start time.
Live webcast and
registration
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www.greatpanther.com
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U.S. & Canada
Toll-Free
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1 866 832
4290
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International
Toll
|
+1 919 825
3215
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Conference
ID
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66679597
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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 mine operating earnings before non-cash
items, EBITDA, adjusted EBITDA, cash cost, cash cost per silver
equivalent ounce, AISC and AISC per Ag eq oz, 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, 2016 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. Great Panther'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 San Ignacio Mine, and the Topia Mine in
Durango. In addition, the Company has recently signed an
agreement to acquire a 100% interest in the Coricancha Mine Complex
in the central Andes of Peru.
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 Mine Complex and Topia
Mines in Mexico, exploring
its other properties in Mexico and
Peru, 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, uncertainty in mineral
resource estimation, 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, permitting
risks, the inability or failure to obtain adequate financing on a
timely basis, and other risks and uncertainties, including those
described in the Company's most recently filed Annual Information
Form 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 US dollars)
|
|
As at December 31,
2016 and 2015, and January 1, 2015
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
January
1,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
41,642
|
|
$
|
13,685
|
|
$
|
13,767
|
|
Short-term
deposits
|
|
|
15,020
|
|
|
-
|
|
|
-
|
|
Trade and other
receivables
|
|
|
10,178
|
|
|
9,635
|
|
|
8,326
|
|
Inventories
|
|
|
5,744
|
|
|
6,540
|
|
|
6,841
|
|
Other current
assets
|
|
|
529
|
|
|
850
|
|
|
575
|
|
|
|
|
73,113
|
|
|
30,710
|
|
|
29,509
|
Non-current
assets:
|
|
|
|
|
|
|
|
|
|
|
Mineral properties,
plant and equipment
|
|
|
14,096
|
|
|
16,284
|
|
|
22,809
|
|
Exploration and
evaluation assets
|
|
|
2,112
|
|
|
4,158
|
|
|
2,361
|
|
Intangible
assets
|
|
|
22
|
|
|
85
|
|
|
280
|
|
Deferred tax
asset
|
|
|
98
|
|
|
316
|
|
|
54
|
|
|
|
$
|
89,441
|
|
$
|
51,553
|
|
$
|
55,013
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Trade and other
payables
|
|
$
|
6,017
|
|
$
|
5,233
|
|
$
|
4,296
|
|
Derivative
liabilities
|
|
|
536
|
|
|
-
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Non-current
liabilities:
|
|
|
|
|
|
|
|
|
|
|
Reclamation and
remediation provision
|
|
|
3,466
|
|
|
3,649
|
|
|
2,588
|
|
Deferred tax
liability
|
|
|
2,134
|
|
|
3,064
|
|
|
3,133
|
|
|
|
|
12,153
|
|
|
11,946
|
|
|
10,017
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
|
|
128,485
|
|
|
96,268
|
|
|
95,143
|
|
Reserves
|
|
|
18,115
|
|
|
8,533
|
|
|
7,890
|
|
Deficit
|
|
|
(69,312)
|
|
|
(65,194)
|
|
|
(58,037)
|
|
|
|
|
77,288
|
|
|
39,607
|
|
|
44,996
|
|
|
|
$
|
89,441
|
|
$
|
51,553
|
|
$
|
55,013
|
|
Great Panther
Silver Limited
|
|
CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
|
|
(Expressed in
thousands of US dollars, unless otherwise noted)
|
|
|
|
For the years ended
December 31, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
$
|
61,881
|
|
$
|
56,218
|
Cost of
sales
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
|
|
|
|
34,153
|
|
|
37,802
|
|
Amortization and
depletion
|
|
|
|
|
|
5,436
|
|
|
13,763
|
|
Share-based
compensation
|
|
|
|
|
|
270
|
|
|
287
|
|
|
|
|
|
|
|
39,859
|
|
|
51,852
|
|
|
|
|
|
|
|
|
|
|
|
Mine operating
earnings
|
|
|
|
|
|
22,022
|
|
|
4,366
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses
|
|
|
|
|
|
|
|
|
|
|
Administrative
expenses
|
|
|
|
|
|
4,959
|
|
|
5,434
|
|
Amortization and
depletion
|
|
|
|
|
|
140
|
|
|
200
|
|
Share-based
compensation
|
|
|
|
|
|
714
|
|
|
448
|
|
|
|
|
|
|
|
5,813
|
|
|
6,082
|
|
|
|
|
|
|
|
|
|
|
|
Exploration,
evaluation and development expenses
|
|
|
|
|
|
|
|
|
|
|
Exploration and
evaluation expenses
|
|
|
|
|
|
3,286
|
|
|
3,330
|
|
Mine development
costs
|
|
|
|
|
|
2,799
|
|
|
2,839
|
|
Share-based
compensation
|
|
|
|
|
|
42
|
|
|
211
|
|
|
|
|
|
|
6,127
|
|
|
6,380
|
|
|
|
|
|
|
|
|
|
|
Impairment
charges
|
|
|
|
|
|
1,679
|
|
|
2,303
|
|
|
|
|
|
|
|
|
|
|
Finance and other
(expense) income
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
225
|
|
|
223
|
|
Finance
costs
|
|
|
|
|
|
(99)
|
|
|
(131)
|
|
Foreign exchange
(loss) gain
|
|
|
|
|
|
(11,135)
|
|
|
3,121
|
|
Other (expense)
income
|
|
|
|
|
|
(3)
|
|
|
25
|
|
|
|
|
|
|
|
(11,012)
|
|
|
3,238
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
|
|
|
(2,609)
|
|
|
(7,161)
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(recovery)
|
|
|
|
|
|
|
|
|
|
|
Current
expense
|
|
|
|
|
|
1,918
|
|
|
368
|
|
Deferred
recovery
|
|
|
|
|
|
(409)
|
|
|
(372)
|
|
|
|
|
|
|
|
1,509
|
|
|
(4)
|
Net loss for the
year
|
|
|
|
|
$
|
(4,118)
|
|
$
|
(7,157)
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive
income (loss), net of tax
|
|
|
|
|
|
|
|
|
|
|
Items that are or
may be reclassified subsequently
to net income (loss):
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation
|
|
|
|
|
|
5,452
|
|
|
(304)
|
|
Change in fair value
of available-for-sale financial
assets, net of tax
|
|
|
|
|
|
(3)
|
|
|
(3)
|
|
|
|
|
|
|
|
5,449
|
|
|
(307)
|
Total
comprehensive income (loss) for the year
|
|
|
|
|
$
|
1,331
|
|
$
|
(7,464)
|
|
|
|
|
|
|
|
|
|
|
|
Loss per
share
|
|
|
|
|
|
|
|
|
|
|
Basic and
diluted
|
|
|
|
|
$
|
(0.03)
|
|
$
|
(0.05)
|
Great Panther
Silver Limited
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Expressed in
thousands of US dollars)
|
|
For the years ended
December 31, 2016 and 2015
|
|
|
|
|
|
|
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
Net loss for the
year
|
$
|
(4,118)
|
|
$
|
(7,157)
|
Items not involving
cash:
|
|
|
|
|
|
|
Amortization and
depletion
|
|
5,576
|
|
|
13,963
|
|
Impairment
charges
|
|
1,679
|
|
|
2,303
|
|
Unrealized foreign
exchange loss (gain)
|
|
10,692
|
|
|
(2,874)
|
|
Income tax expense
(recovery)
|
|
1,509
|
|
|
(4)
|
|
Share-based
compensation
|
|
1,026
|
|
|
946
|
|
Other non-cash
items
|
|
(306)
|
|
|
138
|
Interest
received
|
|
142
|
|
|
78
|
Income taxes
paid
|
|
(225)
|
|
|
(356)
|
|
|
15,975
|
|
|
7,037
|
Changes in non-cash
working capital:
|
|
|
|
|
|
|
Increase in trade and
other receivables
|
|
(2,285)
|
|
|
(600)
|
|
Increase in
inventories
|
|
(94)
|
|
|
(964)
|
|
Decrease (increase)
in other current assets
|
|
215
|
|
|
(279)
|
|
(Decrease) increase
in trade and other payables
|
|
(179)
|
|
|
676
|
|
Net cash from
operating activities
|
|
13,632
|
|
|
5,870
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
Additions to mineral
properties, plant and equipment
|
|
(4,673)
|
|
|
(4,908)
|
|
Additions to
intangible assets
|
|
(22)
|
|
|
-
|
|
Acquisition of
Cangold
|
|
-
|
|
|
(788)
|
|
Additions to
exploration and evaluation assets
|
|
-
|
|
|
(1,679)
|
|
Investments in
short-term deposits
|
|
(15,020)
|
|
|
-
|
|
Net cash used in
investing activities
|
|
(19,715)
|
|
|
(7,375)
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
Proceeds from
financings, net of expenses
|
|
33,084
|
|
|
-
|
|
Proceeds from
exercise of share options
|
|
2,240
|
|
|
7
|
|
Net cash from
financing activities
|
|
35,324
|
|
|
7
|
|
|
|
|
|
|
|
Effect of foreign
currency translation on cash and cash equivalents
|
|
(1,284)
|
|
|
1,416
|
|
|
|
|
|
|
|
Increase (decrease)
in cash and cash equivalents
|
|
27,957
|
|
|
(82)
|
Cash and cash
equivalents, beginning of year
|
|
13,685
|
|
|
13,767
|
Cash and cash
equivalents, end of year
|
$
|
41,642
|
|
$
|
13,685
|
SOURCE Great Panther Silver Limited