TSX: GPR | NYSE American:
GPL
VANCOUVER, BC, Jan. 14, 2021 /PRNewswire/ - Great Panther
Mining Limited (TSX: GPR; NYSE-A: GPL) ("Great Panther" or "the
Company") announces its fourth quarter (Q4) and annual 2020
production results from its three 100% owned mines: Tucano in
Brazil, and Topia and the Guanajuato Mine Complex (GMC) in
Mexico.
2020 Production Highlights
- Tucano's production increased to 125,417 gold ounces (Au
oz)
- Consolidated metal production of 150,051 gold equivalent ounces
("Au eq oz"), inclusive of 133,031 Au oz and 1,118,094 silver
ounces (Ag oz), a 2% increase over 2019
- Achievement of consolidated guidance range of 146,000 - 158,000
Au eq oz
Fourth Quarter 2020 Production Highlights
- Tucano produced 32,017 Au oz
- Consolidated metal production of 36,997 Au eq oz, including
33,703 Au oz and 225,477 Ag oz
- Topia successfully restarted
production in December following a voluntary suspension in November
to safeguard the health of its workforce and local community
against the spread of COVID-19
"We delivered on our 2020 production guidance and produced more
gold last year than in 2019, despite the challenges of
COVID-19. Our teams in Brazil, Mexico, and Peru did a tremendous job prioritizing health
and safety, while still achieving profitable production and
executing our exploration programs", stated Rob Henderson, President and CEO. "The
Mineral Reserve and Resource update for our flagship Tucano mine,
announced in December, has allowed for an extension of the life of
the Urucum and Taperaba pits, and the latest mine plan will see a
transition to mining higher grades in 2022 and 2023.
Exploration activity at Tucano in 2021 is planned to ramp up, with
a focus on identifying regional opportunities, proving up the
underground potential and expanding the existing open pits.
In 2021, consolidated gold equivalent production from the
Tucano, GMC and Topia mines is
expected to be 135,000 to 150,000 Au eq oz."
COVID-19 Response
Great Panther has developed and implemented effective COVID-19
prevention, monitoring and response plans following the guidelines
of the World Health Organization and the regulatory agencies of
each country in which it operates to ensure a safe work
environment. Protocols include mandatory medical screening
and testing on arrival at site, training sessions on health
awareness and health and safety protocols, physical distancing and
increased sanitation measures, and updated operating
procedures. Specific areas have been prepared for the
isolation, testing and care of employees showing COVID-19 symptoms.
All confirmed cases of COVID-19 are in isolation and being
monitored by Company health professionals with regular reports to
health authorities.
2020 Consolidated Operating Results
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Consolidated
Operating Results
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Q4
2020
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Q4
2019
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Change
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FY
2020
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FY
2019
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Change
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Ore processed
(tonnes)
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951,352
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927,928
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3%
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3,567,433
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2,787,578
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28%
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Gold eq production
(oz) (1)
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36,997
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44,697
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-17%
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150,051
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146,853
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2%
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Gold production
(oz)
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33,703
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37,088
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-9%
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133,031
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118,493
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12%
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Silver production
(oz) (2)
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225,477
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423,230
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-47%
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1,118,094
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1,529,362
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-27%
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(1) Gold equivalent
ounces for 2020 were calculated using a 1:90 Au:Ag ratio, and
ratios of 1:0.0006 and 1:0.0008 for the price/ounce of gold to
price/pound of lead and zinc, respectively, consistent with the
Company's guidance for the year. Gold equivalent ounces for
2019 were calculated using a 1:80 Au:Ag ratio, and ratios of
1:0.0008 and 1:0.001 for the price/ounce of gold to price/pound of
lead and zinc, respectively, consistent with the Company's guidance
for the year.
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(2) The decline in
silver production is attributed mainly to COVID-19 related
suspensions of operations in Mexico. Refer to the sections
below titled Topia and Guanajuato Mine Complex for further
discussion.
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Tucano
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Tucano Operating
Results
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Q4
2020
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Q4
2019
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Change
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FY
2020
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FY
2019
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Change
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Total material mined
(tonnes)
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6,605,369
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5,857,185
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13%
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25,483,176
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22,624,748
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13%
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Total waste mined
(tonnes)
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5,803,286
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5,141,839
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13%
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23,562,964
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20,357,867
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16%
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Ore mined
(tonnes)
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749,510
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715,346
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5%
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1,858,037
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2,266,881
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-18%
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Ore processed (tonnes
milled)
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901,854
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860,364
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5%
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3,359,041
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3,074,014
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9%
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Au grade
(g/t)
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1.23
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1.33
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-7%
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1.28
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1.37
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-6%
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Au recovery
(%)
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89.5%
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92.8%
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-4%
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90.8%
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91.7%
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-1%
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Gold production
(oz)
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32,017
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34,181
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-6%
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125,417
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123,867
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1%
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Tucano achieved its 2020 annual production guidance of 120,000 –
130,000 Au oz with a total gold production of 125,417 oz
representing a slight increase over 2019. Total mined
material in 2020 was 13% higher compared to 2019 facilitated by
operational improvements in the mine and the mining of a higher
proportion of softer ore from the Taperaba pits. Total plant
throughput in 2020 was 9% higher than 2019 as a result of plant
improvements and the implementation of additional automation to
improve plant stability. Ore grades in 2020 were 6% lower
compared to 2019 due to grade variation in the deposits.
Topia
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Topia Operating
Results
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Q4
2020
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Q4
2019
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Change
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FY
2020
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FY
2019
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Change
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Ore processed
(tonnes)
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9,959
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18,854
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-47%
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57,390
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79,257
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-28%
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Ag grade
(g/t)
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337
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424
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-20%
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352
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392
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-10%
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Au grade
(g/t)
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0.81
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0.81
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0%
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0.84
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0.94
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-11%
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Ag recovery
(%)
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90.0%
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94.4%
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-5%
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92.0%
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93.9%
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-2%
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Au recovery
(%)
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48.7%
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54.2%
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-10%
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54.1%
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55.9%
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-3%
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Silver eq
production (oz) (1)
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179,657
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449,621
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-60%
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1,085,979
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1,785,483
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-39%
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Silver production
(ounces)
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97,263
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242,776
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-60%
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597,190
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938,581
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-36%
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Gold production
(ounces)
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127
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267
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-53%
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835
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1,344
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-38%
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Lead production
(tonnes)
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212
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487
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-56%
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1,233
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1,960
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-37%
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Zinc production
(tonnes)
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294
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650
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(1)
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1,714
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2,576
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-33%
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Gold eq production
(oz) (2)
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1,996
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5,621
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-64%
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12,066
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22,318
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-46%
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(1) Silver equivalent
ounces for 2020 were calculated using a 90:1 Ag:Au ratio, and
ratios of 1:0.058 and 1:0.068 for the price/ounce of silver to
price/pound of lead and zinc, respectively, consistent with the
Company's guidance for the year. Silver equivalent ounces for
2019 were calculated using an 80:1 Ag:Au ratio, and ratios of
1:0.064 and 1:0.082 for the price/ounce of silver to price/pound of
lead and zinc, respectively, consistent with the Company's guidance
for the year.
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(2) See footnote (1)
under the heading 2020 Consolidated Operating Results above for
information on the calculation of gold equivalent ounces for 2020
and 2019, respectively.
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Of the Company's mines, Topia
was most significantly impacted by COVID-19 related suspensions of
operations, including those in April and May under federal mandate
in Mexico, which affected the
entire industry in Mexico and a
voluntary five week suspension in the fourth quarter. While
operating, productivity was also impacted by health and safety
protocols to safeguard against the spread of COVID-19 and resulting
workforce shortages.
Guanajuato Mine Complex
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GMC Operating
Results
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Q4
2020
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Q4
2019
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Change
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FY
2020
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FY
2019
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Change
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Ore processed
(tonnes)
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39,539
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48,710
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-19%
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151,001
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187,610
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-20%
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Ag grade
(g/t)
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117
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136
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-14%
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125
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116
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8%
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Au grade
(g/t)
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1.46
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2.00
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-27%
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1.66
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2.26
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-26%
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Ag recovery
(%)
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85.9%
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84.4%
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2%
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85.5%
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84.7%
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1%
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Au recovery
(%)
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84.3%
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84.1%
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0%
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84.0%
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85.2%
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-1%
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Silver eq
production (oz) (1)
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268,524
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391,637
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-31%
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1,131,025
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1,517,853
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-25%
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Silver production
(oz)
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128,214
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180,454
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-29%
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520,903
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590,781
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-12%
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Gold production
(oz)
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1,559
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2,640
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-41%
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6,779
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11,588
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-41%
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Gold eq production
(oz) (2)
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2,984
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4,896
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-39%
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12,567
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18,973
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-34%
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(1) Silver equivalent
ounces for 2020 were calculated using a 90:1 Ag:Au ratio,
consistent with the Company's guidance for the year. Silver
equivalent ounces for 2019 were calculated using an 80:1 Ag:Au
ratio, consistent with the Company's guidance for the
year.
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(2) See footnote (1)
under the heading 2020 Consolidated Operating Results above for
information on the calculation of gold equivalent ounces for 2020
and 2019, respectively.
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The federally mandated shutdowns also impacted GMC in
Mexico. During periods of operation, productivity was also
affected by health and safety protocols to safeguard against the
spread of COVID-19.
2021 Guidance
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2021
Guidance
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Tucano
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Mexico
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Consolidated
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Gold eq production
(oz)(1)
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110,000 –
120,000
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25,000 –
30,000
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135,000 –
150,000
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Silver production
(k oz)
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–
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1,500 –
1,600
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1,500 –
1,600
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Gold production
(oz)
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110,000 –
120,000
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8,000 –
10,000
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118,000 –
130,000
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AISC ($/ Au oz
sold)(2)
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$1,350 –
1,450
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N/A
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$1,350 –
1,450
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Exploration
(operating mines) ($ millions)
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$8.4
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$3.0
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$11.4
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(1) Gold equivalent
ounces for 2021 are calculated using a 1:85 ratio of the silver
price to the gold price, which is representative of the average
ratio for the respective metal prices for 2020, and approximate
ratios for the price/ounce of gold to price/pound of lead and zinc,
respectively, for 2020.
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(2) AISC refers to
all-in sustaining cost per gold ounce sold, excluding corporate
G&A expenditures, and reflects the AISC at the Company's
operating mines. The calculation starts with cash cost net of
by-product revenue and adds accretion of reclamation provisions,
lease liability payments, sustaining EE&D expenses, and
sustaining capital expenditures for the operating mines. Sustaining
expenditures are those costs incurred to sustain and maintain
existing assets at current productive capacity and constant planned
levels of productive output. AISC is a non-GAAP
measure. These measures are widely used in the mining
industry as a benchmark for performance, but do not have a
standardized meaning as prescribed by IFRS as an indicator of
performance, and may differ from methods used by other companies
with similar descriptions. Refer to the Company's Management
Discussion and Analysis for the period ended September 30, 2020 for
a reconciliation of AISC to the Company's financial statement
measures. The Company's AISC guidance assumes a Brazilian
real to US dollar exchange rate of 4.75. Actual results may
differ.
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(3) Guidance assumes
no COVID-19 related shutdowns, ongoing geotechnical
control/stability of Urucum Central South ("UCS") pit and the
Company's ability to successfully access the mineralization in the
UCS pit without additional costs or interruption, and permitting of
additional tailings storage capacity at the GMC.
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In 2021, consolidated gold equivalent production from the
Tucano, Topia and GMC mines is
expected to be 135,000 to 150,000 Au eq oz. The second half
of 2021 is expected to account for a least 55% of the annual
production guidance. The mine plan for Tucano also reflects
more stripping in the first half of 2021 and therefore AISC is
expected to be higher than the annual guidance in the first half of
2021. The Mineral Reserve and Resource update for Tucano
announced in December has allowed for an extension of the life of
the Urucum and Taperaba pits that have been mined at Tucano over
the last several years, and the latest mine plan will see a
transition to mining higher grades in 2022 and 2023.
These production and cost guidance estimates are forward-looking
statements and information. They should be read in
conjunction with the Cautionary Statement on Forward-Looking
Statements section at the end of this news release. The
Company may revise guidance during the year to reflect actual
results to date and those anticipated for the remainder of the
year.
Readers are cautioned that there are no current estimates of
Mineral Reserves for any of the Company's Mexican mines. As a
result, there may be increased uncertainty and risks of achieving
any particular level of recovery of minerals from the Company's
mines or the costs of such recovery. Mineral Resources that
are not Mineral Reserves have no demonstrated economic or technical
viability. These risks could have a material adverse impact
on the Company's ability to generate anticipated revenues and cash
flows to fund operations and ultimately achieve or maintain
profitable operations.
Technical Disclosure
The technical information contained in this news release has
been reviewed and approved by Neil
Hepworth, Chartered Engineer UK, MIMMM, Chief Operating
Officer, a non-independent Qualified Person for the purposes of
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects.
ABOUT GREAT PANTHER
Great Panther is a growing gold and silver producer focused on
the Americas. The Company owns a diversified portfolio of
assets in Brazil, Mexico, and Peru, including three operating gold and
silver mines, four exploration projects, and an advanced
development project. Great Panther is actively exploring
large land packages in highly prospective districts and is pursuing
acquisition opportunities to complement its existing portfolio.
Great Panther trades on the Toronto Stock Exchange trading
under the symbol GPR, and on the NYSE American under the symbol
GPL.
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
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 2021 guidance/estimates on
production, AISC, sustaining capital, stripping, and exploration
(non-sustaining) and the assumptions upon which they rely on,
including the guidance and estimates outlined under the heading
"2021 Guidance" in this news release; expectations for consolidated
gold equivalent production for 2021 to be at similar levels to
2020; Mineral Reserve and Resource estimate for Tucano and
the assumptions underlying; the extension of the life of the Urucum
and TAP AB pits; the expectation based on the latest Tucano mine
plan to transition to mining higher grades in 2022 and 2023; the
exploration potential of Tucano near-mine, underground and regional
land package; the Company's plans to complete (ramp-up) and results
of further drilling/exploration activity at Tucano; Tucano
underground potential and potential to expand the existing open
pits; developments related to COVID-19, including expectations
around whether the Company will be successful with our continued
efforts to protect our personnel, communities and others and the
Company's plans to pursue acquisition opportunities to complement
its existing portfolio.
These forward-looking statements and information reflect the
Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include:
continued operations at Tucano in accordance with the Company's
mine plan, including the expectations regarding the ongoing
geotechnical control/stability of UCS and the Company's ability to
successful access the mineralization in the UCS pit without
additional costs or interruption; continuation of operations
without interruption or additional costs due to COVID-19 or any
other reason; the accuracy of the Company's Mineral Reserve and
Mineral Resource estimates and the assumptions upon which they are
based; ore grades and recoveries; prices for silver, gold, and base
metals remaining as estimated; national and international
transportation arrangements to deliver Tucano's gold doré to
international refineries continue to remain available, despite
inherent risks due to COVID–19; international refineries that the
Company uses continue to operate and refine the Company's gold
doré, and in a timely manner such that the Company is able to
realize revenue from the sale of its refined metal in the timeframe
anticipated, despite inherent risks due to COVID–19; capital,
decommissioning and reclamation estimates; prices for energy
inputs, labour, materials, supplies and services (including
transportation) remaining as estimated; currency exchange rates
remaining as estimated; all necessary permits, licenses and
regulatory approvals for the Company's operations are received in a
timely manner and maintained, including the expectations around the
Company's ability to receive the permits and regulatory approvals
necessary for an expansion of the existing GMC tailings storage
facility (lifts 18 and 19) in a timely manner in order to prevent
an interruption to milling operations at the GMC; the accuracy of
the geological, operational and price and exchange rate assumptions
on which the production guidance is based; operations not being
disrupted by issues such as pit-wall failures or instability,
mechanical failures, labour disturbances or workforce shortages,
illegal occupations or mining, seismic events, and adverse weather
condition; management's estimates in connection with the assessment
of provisions for loss and contingent liabilities relating to legal
proceedings may differ materially from the ultimate loss or damages
incurred by the Company; assumption that the Company will be
successful in resolving the legal claims that ban the use of
cyanide in the Tucano processing; management's estimates regarding
the carrying value of its mineral properties may be subject to
change in future financial periods, which may result in further
write–downs and consequential impairment loss; conditions in the
financial markets; the ability to procure equipment and operating
supplies and that there are no material unanticipated variations in
the cost of energy or supplies; the Company's expectations
that metallurgical, environmental, permitting, legal, title,
taxation, socio-economic, political, marketing or other issues will
not materially affect the estimates of Mineral Reserves and Mineral
Resources or its future mining plans; and the Company's ability to
comply with environmental, health and safety laws. The
foregoing list of assumptions is not exhaustive. 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, regulatory, and social risks involving Great
Panther's operations in a foreign jurisdiction, developments with
respect to COVID-19 that may impact the Company's operations,
including potential for further workforce shortages, or future
orders of federal governments to curtail or cease mining operations
or voluntary shutdowns, the inherent risk that estimates of Mineral
Reserves and Resources may not be accurate or that the assumptions
upon which they are based are different than expected and
accordingly that mine production will not be as estimated or
predicted, the discontinuity of the Tucano ore body and mine
selectivity may result in a risk that dilution and mining recovery
estimates used in the Mineral Reserve estimation do not accurately
reconcile with the Company's ability to recover the tonnage, grade
and metal content estimated in the Mineral Reserves; as the
Company's mines do not have established Mineral Reserves, except
for Tucano and the Company may extend mine operations by mining
material at Tucano that is classified as a Mineral Resource without
completing a feasibility study demonstrating economic or technical
viability, the Company faces higher risks that anticipated rates of
production/recovery or estimates of costs will not be achieved,
litigation risk, including a risk that the use of cyanide would be
banned in respect of Tucano's operations causing Tucano to have to
cease operations if an alternative to cyanide treatment cannot be
identified and implemented in a cost-effective way (of which there
is no assurance), the potential for unexpected costs and expenses,
fluctuations in metal prices, fluctuations in currency exchange
rates, physical risks inherent in mining operations (including pit
wall collapses, tailings storage facility failures, environmental
accidents and hazards, industrial accidents, equipment breakdown,
unusual or unexpected geological or structural formations,
cave-ins, flooding and severe weather), operating or technical
difficulties in mineral exploration, changes in project parameters
as plans continue to be refined, potential of further instability
or failure of walls of the UCS pit, which compromises a material
part of the Mineral Reserves being accessed in 2021, there is no
assurance that the Company will be able to continue mining and be
able to access the UCS Mineral Reserves which may adversely impact
the Company's Mineral Reserve estimates, production guidance and
future revenues, including the potential risk that the Mineral
Reserves at UCS may not be accessible at all or that access may be
dependent on further remedial work that might interrupt operations,
there is no assurance that the Company will be able to identify or
complete acquisition opportunities and other risks and
uncertainties, including those described in respect of Great
Panther, in its annual information form for the year ended
December 31, 2019 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. 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.
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SOURCE Great Panther Mining Limited