TSX: GPR
NYSE American: GPL
VANCOUVER, Oct. 31, 2018 /CNW/ - GREAT PANTHER SILVER
LIMITED (TSX: GPR) (NYSE American: GPL) ("Great Panther"; or the
"Company") today reported financial results for the Company's three
and nine months ended September 30,
2018. 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, on SEDAR at www.sedar.com and on
EDGAR at www.sec.gov/edgar.shtml. 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" or "$"), unless otherwise noted.
"Our revenues for the third quarter of 2018 were down compared
to the same quarter last year due primarily to lower metal prices,
lower production levels, and a large shipment of concentrate which
could not be shipped until just after the end of quarter cut-off",
stated Jim Bannantine, President and
CEO. "These factors combined with higher cash costs at our
Guanajuato Mine Complex in Mexico,
higher corporate development costs, and the ramp up of Coricancha
project costs, which we are expensing as opposed to capitalizing,
accounted for a loss per share of $0.02 in the third quarter. Despite the
current metal price environment, we are using our strong balance
sheet to set a foundation for growth in 2019 by advancing our
Coricancha project and advancing the close of the recently
announced friendly acquisition of Beadell Resources Limited.
These strategic initiatives represent transformational changes
which will see Great Panther evolve into a leading emerging
intermediate and growth-oriented Latin American focused precious
metals producer."
OPERATIONAL AND FINANCIAL HIGHLIGHTS
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Q3
2018
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Q3
2017
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Change
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Nine months
ended
September 30,
2018
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Nine months
ended
September 30,
2017
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Change
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OPERATING
RESULTS
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Tonnes
milled
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92,920
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94,080
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-1%
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284,958
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275,313
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4%
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Silver equivalent
ounces ("Ag eq oz") produced 1
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1,023,128
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1,080,483
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-5%
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3,219,182
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2,912,959
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11%
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Silver ounces
produced
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448,840
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532,803
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-16%
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1,419,712
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1,468,467
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-3%
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Gold ounces
produced
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4,737
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5,848
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-19%
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16,060
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16,570
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-3%
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Payable silver
ounces
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402,150
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552,218
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-27%
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1,358,418
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1,421,624
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-4%
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Ag eq oz sold
1
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847,317
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1,082,451
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-22%
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2,983,077
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2,755,492
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8%
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Cost per tonne milled
2
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$
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128
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$
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116
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10%
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$
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123
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$
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103
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19%
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Cash
cost2
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$
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12.79
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$
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5.82
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120%
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$
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8.45
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$
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5.21
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62%
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Cash cost per Ag eq
oz 2
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$
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13.56
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$
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12.37
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10%
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$
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12.55
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$
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11.71
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7%
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All in Sustaining
Cost ("AISC") 2
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$
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19.74
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$
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13.75
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44%
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$
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15.48
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$
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15.60
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-1%
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AISC per Ag eq
oz2
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$
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16.86
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$
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16.42
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3%
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$
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15.75
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$
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17.06
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-8%
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(in thousands,
except per ounce, per share,
and exchange rate figures)
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Q3 2018
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Q3 2017
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Change
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Nine months
ended
September 30,
2018
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Nine months
ended
September 30,
2017
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Change
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FINANCIAL
RESULTS
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Revenue
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$
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11,691
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$
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18,260
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-36%
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$
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45,787
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$
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46,362
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-1%
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Mine operating
earnings before non-cash items 2
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$
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667
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$
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6,168
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-89%
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$
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10,003
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$
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17,032
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-41%
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Mine operating
earnings
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$
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57
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$
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4,806
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-99%
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$
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6,979
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$
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13,934
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-50%
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Net income
(loss)
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$
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(3,642)
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$
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(666)
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-447%
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$
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(6,504)
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$
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3,208
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-303%
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Adjusted EBITDA
2
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$
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(3,679)
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$
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1,482
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-348%
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$
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(3,128)
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$
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5,105
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-161%
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Operating cash flow
before changes in non-cash
net working capital
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$
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(2,527)
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$
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2,425
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-204%
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$
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(2,945)
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$
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5,751
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-151%
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Cash and short-term
deposits at end of period
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$
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57,936
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$
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55,489
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4%
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$
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57,936
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$
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55,489
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4%
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Net working capital
at end of period
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$
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65,020
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$
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63,627
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2%
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$
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65,020
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$
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63,627
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2%
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Average realized
silver price per oz 3
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$
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14.45
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$
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16.99
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-15%
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$
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15.81
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$
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17.19
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-8%
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Average realized gold
price per oz 3
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$
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1,186
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$
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1,317
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-10%
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$
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1,286
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$
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1,290
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0%
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Earnings (loss) per
share – basic and diluted
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$
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(0.02)
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$
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(0.00)
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-200%
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$
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(0.04)
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$
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0.02
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-300%
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MXN/USD
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18.99
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17.82
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7%
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19.04
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18.92
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1%
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____________________________
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1 Silver
equivalent ounces are referred to throughout this document.
For 2018, Ag eq oz are calculated using a 80:1 Ag:Au ratio and
ratios of 1:0.0636 and 1:0.0818 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. The ratios are reflective
of average metal prices for 2018, and they were applied
retroactively effective January 1, 2018. As a result, the
metrics in silver equivalent ounces for the first and second
quarters of 2018 have been restated. Comparatively, Ag eq oz
for 2017 are calculated using a 70:1 Ag:Au ratio and ratios of
1:0.0559 and 1:0.0676 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. The ratios are reflective of average
metal prices for 2017.
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2 The
Company has included the non-GAAP 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, cost of sales
before non-cash items and adjusted EBITDA throughout this
document. The computation of cash cost per Ag eq oz reflects
actual realized prices for the by-products. 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.
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3 Average realized silver and gold
prices are prior to smelting and refining charges.
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REVIEW OF FINANCIAL RESULTS OF THE THIRD QUARTER OF
2018
Revenue decreased by $6.6 million
or 36% compared to the third quarter of 2017. This was
primarily attributable to a decrease in metal sales volumes
($5.2 million effect) and a decrease
in realized metal prices ($2.2
million effect). The decrease in metal sales is
attributed to a large concentrate shipment that could not be
shipped until just after the end of quarter cut-off for
revenue recognition, and lower production of silver and gold.
These factors were partly offset by a $0.8
million decrease in smelting and refining charges (which are
netted against revenue) due to more favourable revenue contract
terms with customers for 2018. The Company's average realized
silver price for the third quarter of 2018 was $14.45/oz compared to $16.99/oz during the third quarter of 2017, and
the average realized gold price for the third quarter of 2018 was
$1,186/oz compared to $1,317/oz during the third quarter of 2017.
Production costs decreased $1.1
million or 9% compared to the third quarter of 2017.
This was mainly due to a decrease in metal sales volume
($2.6 million effect) and a weakening
of the Mexican Peso ("MXN") to the USD which had the impact of
decreasing production costs in USD terms ($0.6 million effect). These factors were
partly offset by an increase in MXN denominated costs as a result
of mining narrower veins at Guanajuato Mine Complex ("GMC"), which
requires more waste material to be mined, along with minor rate
increases for mining contractors (together a $2.1 million effect). During the third quarter of
2018, the Company undertook a restructuring at GMC to reduce costs
and mitigate the impact of lower metal prices.
Mine operating earnings before non-cash items decreased by
$5.5 million relative to the third
quarter of 2017 as the $6.6 million
decrease in revenue exceeded the $1.1
million decrease in production costs.
Amortization and depletion decreased by $0.8 million mainly due to the increase in the
estimated useful life of GMC based on the mineral resource estimate
update announced earlier in the year.
General and administrative ("G&A") expenses were 45% lower
compared to the same period in 2017 mainly due to non-recurring
expenses incurred in the comparative period related to strategic
changes and initiatives to position the Company for future growth
and development. These included expenses related to CEO
succession, other management changes and implementation of
long-term incentive programs.
Exploration, evaluation and development expenses ("EE&D")
increased $0.7 million or 26%
compared to the same period in 2017, mainly due to a $0.7 million higher corporate development
expenditures for the evaluation and negotiation of acquisition
opportunities mainly related to the recently announced agreement to
acquire Beadell Resources Limited ("Beadell"), and a $0.2 million increase in Topia exploration expenses. Coricancha
related project expenses in EE&D also increased to $1.7 million in the third quarter of 2018
(compared to $1.5 million in the
third quarter of 2017) as the Company ramped up project costs
associated with its Bulk Sample Program. The Company will
continue to expense project costs and ongoing care and maintenance
associated with Coricancha until such time a formal decision is
made to restart the mine. These were partly offset by a
$0.4 million decrease in exploration
drilling expenditures at GMC.
The costs of undertaking the closure plan (and any approved
amendments) for the Coricancha legacy tailings are subject to an
agreement with the prior owner of Coricancha to reimburse the
Company for these costs (refer to the Company's press release dated
July 3, 2017 for further details of
this agreement). The Company has previously received full
reimbursement of costs incurred. Furthermore, all permits are
in place to restart Coricancha and the status of a decision from
the MEM to modify the closure plan does not affect the permitting
of the mine.
Finance and other income (expense) primarily include interest
income or expense and foreign exchange gains and losses.
During the third quarter of 2018, the Company recorded a foreign
exchange gain of $0.8 million due to
the strengthening of the MXN to the USD compared to the second
quarter of 2018 while a foreign exchange gain of $0.1 million was recorded in the third quarter of
2017. The foreign exchange gains and losses recorded in both
periods were primarily a result of forward contracts to purchase
MXN to fund operating expenditures in Mexico, and to a lesser extent, the
translation of foreign currency denominated balances into
USD. The Company also recorded an adjustment to
reduce accretion expense in the amount of $0.3 million related to the Coricancha
reclamation and remediation provision and reimbursement rights
associated with the legacy tailings.
The $5.2 million decrease in
adjusted EBITDA largely reflects a $5.5
million decrease in mine operating earnings before non-cash
items, and a $0.6 million increase in
EE&D expenses before non-cash items (such as non-cash share
based compensation and changes in estimates of reclamation
provisions) and a $0.2 million
decrease in other income. These factors were partly offset by
a $1.1 million decrease in G&A
expenses before non-cash items.
Refer to the Company's MD&A for the three and nine months
ended September 30, 2018 for more
details of the financial results.
CASH COST AND ALL-IN SUSTAINING COSTS
The lower production of silver and gold from GMC resulted from
variability of the resource which, in turn, resulted in lower
grades and the mining of narrower than planned vein widths.
To a lesser extent, production also declined from steps taken to
reduce mining from less economic areas of the mine in order to
lower costs and mitigate the impact of lower metal prices.
These restructuring steps included personnel reductions and other
measures to reduce operating costs and overheads, however, the
impact of these measures will largely be realized after the third
quarter.
Cash cost per silver payable ounce ("cash cost") for the third
quarter of 2018 increased over the third quarter of 2017 primarily
due to an increase in unit costs at GMC for the factors noted in
the above paragraph as well as a decrease in by-product credits
(lower gold sales volume and reduced silver payable ounces driven
by lower grades and a concentrate shipment which could not be
shipped until just after the end of quarter cut-off). The
lower gold by-product production and sales increased cash cost by
$3.48 per oz and lower by-product
metal prices accounted for a further $2.06 per oz increase. Higher MXN
denominated production costs and lower payable silver volumes also
increased cash cost by $0.74 per oz
and $3.51 per oz, respectively.
These factors were partly offset by lower smelting and refining
charges ($1.51 per oz effect) and
weakening of the MXN to the USD, which had the effect of decreasing
production costs in USD terms by $1.31 per oz.
During the third quarter of 2018, AISC increased from the third
quarter of 2017 primarily due to the increase in cash cost
discussed above ($6.97 per oz
effect), as well as a decrease in payable silver ounces which had
the effect of further increasing AISC by $2.96 per oz. These were partly offset by
lower G&A expenses ($2.79 per oz
effect), and lower sustaining EE&D expenses and capital
expenditures (together, a $1.15 per
oz effect).
Refer to the Company's MD&A for the three and nine months
ended September 30, 2018, 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 SEPTEMBER 30, 2018
At September 30, 2018, the Company
had cash and short-term deposits of $57.9
million, compared to $56.9
million at December 31, 2017,
and no long-term debt.
Cash and short-term deposits increased by $1.0 million in the first nine months of 2018
primarily due to $2.2 million of cash
generated by operating activities and $0.3
million in proceeds from the exercise of stock
options. These factors were partly offset by $1.5 million in additions to plant and
equipment.
Net working capital was $65.0
million as at September 30,
2018, a decrease of $0.9
million from the start of the year. The decrease was
predominantly due to cash outflows from operating activities
(before changes in non-cash working capital) of $2.9 million, capital expenditures of
$1.5 million, income taxes paid of
$0.5 million, and an adjustment of
$0.2 million of receivables for
Coricancha from Nyrstar as a result of a change in estimate of the
reclamation and remediation provision for the legacy
tailings. These factors were partly offset by the
reclassification of $2.2 million of
current portion of reclamation and remediation provision at
Coricancha to long term as the reclamation work on the legacy
tailings originally scheduled to commence in 2018 has been deferred
to 2019 and 2020 (the Company has an agreement with the previous
owner of Coricancha for the reimbursement of costs to execute the
reclamation activities up to an agreed maximum). A Peruvian
VAT refund of $1.2 million, foreign
exchange gains of $0.6 million, and a
$0.3 million of stock option exercise
proceeds also contributed to this partial offset.
OUTLOOK
Despite the restructuring at GMC late in the third quarter to
reduce mining from less economic areas of the mine in order to
mitigate the impact of lower metal prices, the Company is
increasing its 2018 production guidance for an improvement in the
gold to silver ratio (refer to footnote below) and an increase in
output from more economic areas of the mine (and those with higher
geological confidence) that will partly make up for areas which
have been removed from the mine plan. In addition, the
Company has undertaken other cost reduction measures which will
largely be realized in subsequent periods.
Although the Company expects a decline in cash cost in the
fourth quarter from levels in the third quarter, lower by-product
metal prices will continue to have a significant negative effect on
cash cost. As noted, lower gold prices had a $2.3 million impact on cash cost in the third
quarter of 2018.
As a result, cash cost and AISC are expected to be above the
previously issued guidance range for 2018 (but lower than the
actuals for the nine months ended September
30, 2018).
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Production and
cash cost
guidance
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Nine months
ended
September 30,
2018
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Revised FY
2018
Guidance
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Previous FY
2018
Guidance
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FY 2017
Actual
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Total silver
equivalent ounces
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13,219,182
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14,100,000
– 4,200,000
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24,000,000
– 4,100,000
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3
3,978,731
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Cash
cost4
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$ 8.45
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$ 7.20 – $
8.20
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$ 5.00 –
6.50
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$ 5.76
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AISC4
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$ 15.48
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$ 14.50 –
15.50
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$ 12.50 –
14.50
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$ 15.07
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It is cautioned that cash cost and AISC are very sensitive to
the MXN foreign exchange rate and metal prices through the
computation of by-product credits.
The Company's previously issued guidance for capital
expenditures and EE&D expenses for the year ended December 31, 2018 is shown in the table
below. The Company now expects to be below guidance on both
measures.
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Capex and EE&D
expense guidance
(in millions of US dollars)
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Nine months
ended
September 30,
2018
|
Revised
FY
2018
Guidance
|
Previous FY
2018 Guidance
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FY 2017
Actual
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Capital expenditures,
excluding acquisition cost
and capital expenditures associated with
Coricancha
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$ 1.4
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$ 2.0 – $
2.5
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$ 2.5 – $
3.5
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$ 4.4
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EE&D – operating
mines (excluding Coricancha)
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$ 3.0
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$ 4.0 – $
4.5
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$ 5.0 – $
6.0
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$ 5.2
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The focus for the remainder of 2018 for the Company's Mexican
operations will be on achieving production efficiencies at
Guanajuato and San Ignacio, and increasing the proportion of
ore from San Ignacio as the
Guanajuato Mine is optimized for profitability in a low metal price
environment.
The Company will continue advancing the Coricancha Mine Complex
in Peru to set a platform for
production growth in 2019 and 2020. The BSP at Coricancha
continues to advance on schedule following the announcement in
May 2018 of the positive PEA which
confirmed the potential for three million Ag eq oz of annual
production. The Company expects to be able to make a decision
in early 2019 on whether to commence the restart of
Coricancha.
The agreement to acquire Beadell announced in September is
subject to customary closing conditions, including shareholder
votes for both Beadell and Great Panther, Australian court approval
and TSX approval for Beadell and Great Panther, respectively, with
the transaction expected to be completed in early 2019.
Details of the transaction can be found in the September 23, 2018 press release and presentation
which is available on the respective company websites.
To date, the support of several key Beadell shareholders in
respect of the transaction has been obtained as well as consents
from Beadell's senior lenders in Brazil.
Based on current cash flow forecasts, the Company expects its
cash and net working capital will be sufficient to fund the closing
and integration of the acquisition of Beadell, fund Beadell's
capital and debt service needs, and fund the restart of Coricancha
should the Company make a positive decision to restart the
mine.
____________________________
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1 For the
nine months ended September 30, 2018 and the Revised FY 2018
Guidance, Ag eq oz are calculated using a 80:1 Ag:Au ratio and
ratios of 1:0.0636 and 1:0.0818 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 For the
Previous FY 2018 Guidance, Ag eq oz are calculated using a 70:1
Ag:Au ratio and ratios of 1:0.0559 and 1:0.0676 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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3 For the
FY 2017 Actual, Ag eq oz are calculated using a 70:1 Ag:Au ratio
and ratios of 1:0.0559 and 1:0.0676 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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4 Cash
cost and AISC are non-GAAP measures. Refer to the Non-GAAP
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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WEBCAST AND CONFERENCE CALL TO DISCUSS THE THIRD QUARTER 2018
FINANCIAL RESULTS
Great Panther will hold a live webcast and conference call to
discuss the financial results on November 1,
2018, at 7:00 am Pacific
Time. Hosting the call will be Mr. James Bannantine, 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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1 800 682
0995
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International
Toll
|
1 334 323
0505
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Conference
ID
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4826327
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A replay of the webcast will be available on the Webcasts
section of the Company's website approximately one hour after the
conference call.
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 American 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 and the Topia Mine. The Company is also advancing
towards a decision to restart the Coricancha Mine in Peru with the initiation of a Bulk Sample
Program following the completion of a positive Preliminary Economic
Assessment in May 2018. In
addition, the Company has signed an agreement to acquire all of the
issued ordinary shares of gold producer Beadell Resources Limited.
The closing of this transaction will create a new emerging
intermediate and growth-oriented precious metals producer focused
on the Americas with strong geographic diversity across three
leading mining jurisdictions, and a diverse asset portfolio
including three producing mines, an advanced stage project, and
significant exploration potential.
James Bannantine
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 Mine in Mexico, advancement of the Coricancha project,
closing of the Beadell acquisition and the exploration of its other
properties in Mexico and
Peru. Forward looking statements also include guidance
included in the "Outlook" section of this document, including
guidance on production, cash costs, AISC, and anticipated capital
expenditures and exploration and development expenditures.
Forward looking statements also include discussions of the overall
economic potential of the Company's properties, the availability of
adequate financing, and those involving 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
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in thousands of US dollars)
As at September 30, 2018
(unaudited) and December 31, 2017
|
|
|
|
|
September
30,
2018
|
|
December
31,
2017
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
35,343
|
|
$
|
36,797
|
|
Short-term
deposits
|
|
22,593
|
|
|
20,091
|
|
Trade and other
receivables
|
|
8,928
|
|
|
14,780
|
|
Inventories
|
|
5,200
|
|
|
5,294
|
|
Reimbursement
rights
|
|
4,113
|
|
|
4,446
|
|
Other current
assets
|
|
731
|
|
|
401
|
|
|
76,908
|
|
|
81,809
|
|
|
|
|
|
|
Restricted
cash
|
|
1,234
|
|
|
1,234
|
Inventories –
non-current
|
|
1,547
|
|
|
1,580
|
Reimbursement
rights
|
|
6,507
|
|
|
6,588
|
Mineral properties,
plant and equipment
|
|
13,660
|
|
|
14,966
|
Exploration and
evaluation assets
|
|
15,347
|
|
|
15,633
|
Deferred tax
assets
|
|
69
|
|
|
70
|
|
$
|
115,272
|
|
$
|
121,880
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Trade payables and
accrued liabilities
|
$
|
9,687
|
|
$
|
11,313
|
|
Derivative
liabilities
|
|
–
|
|
|
85
|
|
Reclamation and
remediation provision – current
|
|
2,201
|
|
|
4,446
|
|
|
11,888
|
|
|
15,844
|
|
|
|
|
|
|
Reclamation and
remediation provision
|
|
25,263
|
|
|
22,965
|
Deferred tax
liabilities
|
|
1,928
|
|
|
1,930
|
|
|
39,079
|
|
|
40,739
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
Share
capital
|
|
130,872
|
|
|
130,201
|
Reserves
|
|
19,847
|
|
|
18,962
|
Deficit
|
|
(74,526)
|
|
|
(68,022)
|
|
|
76,193
|
|
|
81,141
|
|
|
|
|
|
|
|
$
|
115,272
|
|
$
|
121,880
|
|
|
|
|
|
|
GREAT PANTHER SILVER LIMITED
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Expressed in thousands of US dollars)
For the three and
nine months ended September 30, 2018 and 2017
(Unaudited)
|
|
|
|
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
$
|
11,691
|
$
|
18,260
|
|
$
|
45,787
|
$
|
46,362
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales:
|
|
|
|
|
|
|
|
|
|
|
Production
costs
|
|
11,024
|
|
12,092
|
|
|
35,784
|
|
29,330
|
|
Amortization and
depletion
|
|
446
|
|
1,244
|
|
|
2,659
|
|
2,782
|
|
Share-based
compensation
|
|
164
|
|
118
|
|
|
365
|
|
316
|
|
|
|
11,634
|
|
13,454
|
|
|
38,808
|
|
34,428
|
|
|
|
|
|
|
|
|
|
|
|
Mine operating
earnings
|
|
57
|
|
4,806
|
|
|
6,979
|
|
13,934
|
|
|
|
|
|
|
|
|
|
|
|
General and
administrative expenses:
|
|
|
|
|
|
|
|
|
|
|
Administrative
expenses
|
|
1,152
|
|
2,289
|
|
|
3,883
|
|
5,262
|
|
Amortization and
depletion
|
|
27
|
|
17
|
|
|
79
|
|
52
|
|
Share-based
compensation
|
|
200
|
|
179
|
|
|
774
|
|
707
|
|
|
|
1,379
|
|
2,485
|
|
|
4,736
|
|
6,021
|
|
|
|
|
|
|
|
|
|
|
|
Exploration,
evaluation, and development expenses:
|
|
|
|
|
|
|
|
|
|
|
Exploration and
evaluation expenses
|
|
2,993
|
|
1,878
|
|
|
7,760
|
|
4,520
|
|
Mine development
costs
|
|
378
|
|
753
|
|
|
1,559
|
|
2,398
|
|
Share-based
compensation
|
|
(30)
|
|
21
|
|
|
(35)
|
|
37
|
|
|
|
3,341
|
|
2,652
|
|
|
9,284
|
|
6,955
|
|
|
|
|
|
|
|
|
|
|
|
Finance and other
income:
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
341
|
|
180
|
|
|
1,079
|
|
603
|
|
Finance
costs
|
|
–
|
|
(115)
|
|
|
(19)
|
|
(153)
|
|
Accretion
|
|
(27)
|
|
(355)
|
|
|
(646)
|
|
(396)
|
|
Foreign exchange
gain
|
|
750
|
|
100
|
|
|
599
|
|
2,560
|
|
Other
income
|
|
48
|
|
240
|
|
|
76
|
|
259
|
|
|
|
1,112
|
|
50
|
|
|
1,089
|
|
2,873
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
(3,551)
|
|
(281)
|
|
|
(5,952)
|
|
3,831
|
Income tax
expense
|
|
91
|
|
385
|
|
|
552
|
|
623
|
Net income (loss) for
the period
|
$
|
(3,642)
|
$
|
(666)
|
|
$
|
(6,504)
|
$
|
3,208
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share – basic and diluted
|
$
|
(0.02)
|
$
|
(0.00)
|
|
$
|
(0.04)
|
$
|
0.02
|
|
|
|
|
|
|
|
|
|
|
GREAT PANTHER SILVER LIMITED
CONDENSED INTERIM
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Expressed in thousands of US dollars)
For the three and
nine months ended September 30, 2018 and 2017
(Unaudited)
|
|
|
|
Three months
ended
|
|
Nine months
ended
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2018
|
|
2017
|
|
|
2018
|
|
2017
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income (loss) for
the period
|
$
|
(3,642)
|
$
|
(666)
|
|
$
|
(6,504)
|
$
|
3,208
|
Items not involving
cash:
|
|
|
|
|
|
|
|
|
|
|
Amortization and
depletion
|
|
473
|
|
1,261
|
|
|
2,738
|
|
2,834
|
|
Unrealized foreign
exchange loss (gain)
|
|
120
|
|
1,340
|
|
|
52
|
|
(152)
|
|
Income tax
expense
|
|
91
|
|
385
|
|
|
552
|
|
623
|
|
Share-based
compensation
|
|
334
|
|
318
|
|
|
1,104
|
|
1,060
|
|
Other non-cash
items
|
|
(185)
|
|
68
|
|
|
(383)
|
|
(276)
|
Interest
received
|
|
299
|
|
184
|
|
|
916
|
|
538
|
Interest
paid
|
|
–
|
|
(96)
|
|
|
(38)
|
|
(135)
|
Income taxes
paid
|
|
(17)
|
|
(369)
|
|
|
(1,382)
|
|
(1,949)
|
|
|
|
(2,527)
|
|
2,425
|
|
|
(2,945)
|
|
5,751
|
Changes in non-cash
working capital:
|
|
|
|
|
|
|
|
|
|
|
Trade and other
receivables
|
|
1,781
|
|
(4,349)
|
|
|
6,225
|
|
(4,798)
|
|
Inventories
|
|
(1,073)
|
|
1,421
|
|
|
22
|
|
(563)
|
|
Other current
assets
|
|
50
|
|
(61)
|
|
|
(330)
|
|
(111)
|
|
Trade payables and
accrued liabilities
|
|
598
|
|
59
|
|
|
(770)
|
|
1,374
|
|
Net cash provided by
(used in) operating activities
|
|
(1,171)
|
|
(505)
|
|
|
2,202
|
|
1,653
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Additions to mineral
properties, plant and equipment
|
|
(696)
|
|
(1,069)
|
|
|
(1,467)
|
|
(3,925)
|
|
Cash received upon
acquisition of Coricancha
|
|
–
|
|
–
|
|
|
–
|
|
105
|
|
Proceeds from
(investments in) short-term deposits
|
|
317
|
|
(3,111)
|
|
|
(2,502)
|
|
(4,973)
|
|
Other
|
|
–
|
|
184
|
|
|
–
|
|
186
|
|
Net cash used in
investing activities
|
|
(379)
|
|
(3,996)
|
|
|
(3,969)
|
|
(8,607)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
exercise of share options
|
|
4
|
|
302
|
|
|
346
|
|
1,160
|
|
Net cash from
financing activities
|
|
4
|
|
302
|
|
|
346
|
|
1,160
|
|
|
|
|
|
|
|
|
|
|
|
Effect of foreign
currency translation on cash and cash equivalents
|
|
37
|
|
(494)
|
|
|
(33)
|
|
(352)
|
|
|
|
|
|
|
|
|
|
|
|
Decrease in cash and
cash equivalents
|
|
(1,509)
|
|
(4,693)
|
|
|
(1,454)
|
|
(6,146)
|
Cash and cash
equivalents, beginning of period
|
|
36,852
|
|
40,189
|
|
|
36,797
|
|
41,642
|
Cash and cash
equivalents, end of period
|
$
|
35,343
|
$
|
35,496
|
|
$
|
35,343
|
$
|
35,496
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE Great Panther Silver Limited