Delivers record cash flow from operations, substantial
operational improvements and reduced costs
TSX: GPR | NYSE American: GPL
(All dollar amounts expressed in US dollars unless otherwise
noted)
VANCOUVER, BC ,
March 4, 2021 /PRNewswire/ - Great
Panther Mining Limited (TSX: GPR) (NYSE-A: GPL) ("Great Panther" or
the "Company") today reports consolidated financial results for the
year ended December 31, 2020 ("FY
2020") from its three wholly owned mines: Tucano in Brazil, and Topia and the Guanajuato Mine
Complex ("GMC") in Mexico.
"For 2020, Great Panther delivered record mine operating
earnings of $84 million ($0.24 per share), significantly strengthening the
balance sheet, and successfully added reserves and resources
through our result-driven exploration programs," stated
Rob Henderson, President and CEO.
"Our teams did a tremendous job of managing the challenges of
COVID-19, while reducing consolidated AISC, delivering on guidance,
successfully extending the open pit mine life at Tucano, and
expanding resources at GMC. With $63
million in cash and the expectation for continued strong
cash flow from operations, we are fully funded for our capital
programs and our ambitious 2021 exploration programs."
Fourth Quarter ("Q4") 2020 Financial Highlights
- Mine operating earnings of $22.1
million ($0.06 per share)
- Net income of $13.6 million
($0.04 per share)
- Cash flow from operating activities of $18.0 million – an increase of 131% over Q4
2019
- 23% reduction in consolidated all-in-sustaining costs
("AISC") 1 over the fourth quarter of 2019
- Reduced debt by $13.5 million and
ended the year with $63.4 million in
cash
FY 2020 Financial Highlights
- Record mine operating earnings of $83.9
million ($0.24 per share)
- Record adjusted EBITDA1 of $98.0 million ($0.28 per share)
- Record cash flow from operating activities of $68.9 million ($0.20 per share)
- Reduced consolidated AISC (excluding corporate G&A) by 11%
to $1,228 per gold ounce (oz)
sold
_______________________
|
1
|
Throughout this news
release and the accompanying MD&A, Great Panther has included
the non-GAAP performance measures cost per tonne milled, cash costs
per gold oz sold, cash costs per payable silver oz, AISC per gold
oz sold excluding corporate G&A expenditures, AISC per gold oz
sold, AISC per payable silver oz, free cash-flow, mine operating
earnings before non-cash items, cost of sales before non-cash
items, adjusted EBITDA, and adjusted net loss and free-cash flow.
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 and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
|
FY 2020 Operational Highlights
- Achieved production guidance and increased overall gold
equivalent production to 150,051 oz
- Extended the open pit mine life at Tucano and added significant
resources at GMC
- Published inaugural Sustainability Report "Mining for
Good"
- Achieved agreement with Nyrstar to extend bond funding for
Coricancha
- Developed and implemented enhanced safety protocols and
safeguards in response to COVID-19
- Bolstered management and governance through the appointment of
a new, operations-focused CEO, strengthened Board of Directors and
fit-for-purpose management team
Summary of Select Financial Results
Record mine operating earnings of $83.9
million for 2020, representing an increase of $77 million, were achieved through successful
execution of operational plans and guidance, reduced costs and the
benefit of higher average realized gold and silver prices, which
increased to $1,785 and $21.28 for 2020 from $1,419 and $16.45
for 2019, respectively. After accounting for G&A and
exploration, evaluation and development expenditures, operating
earnings for FY 2020 were $57.0
million. Net earnings were break-even after accounting
for interest and financing charges and foreign exchange and
derivative losses. The latter relates to forward contracts on
the Brazilian real entered into in late 2019 and early 2020 to gain
better certainty on Brazilian real operating and capital costs at a
time of significantly lower gold prices and no further currency
hedges have been entered into. The foreign exchange losses
are primarily non-cash and relate mainly to the translation of
foreign currency-denominated borrowings and net working capital
into the BRL functional currency of the Company's operations in
Brazil.
COVID-19 Response
Great Panther has developed and implemented robust 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. These plans include mandatory medical screening and
testing on arrival at site, requirements to report infection or
contact with those infected, restrictions on international travel
and any non-essential domestic travel, alternative work
arrangements, hygiene precautions and physical distancing
practices, among others. Specific areas have been prepared for the
isolation, testing and care of employees showing COVID-19 symptoms.
Increased cleaning and sanitizing procedures have been introduced,
especially for frequently visited areas. Training campaigns to
educate all employees and contractors, their families and local
communities on preventive measures and hygiene best practices
continue regularly.
Additional information regarding Great Panther's COVID-19
response plan, preventive measures taken to date and the potential
impact on operations are available in the FY 2020 Management's
Discussion and Analysis ("MD&A"), available on the Company's
website at www.greatpanther.com and on SEDAR at
www.sedar.com.
Operational Highlights
|
|
|
|
|
|
|
|
|
|
|
|
Q4
2020
|
Q4
2019
|
Change
|
2020
|
20191
|
Change
|
Total material mined
– Tucano (tonnes)
|
|
6,605,369
|
|
5,857,185
|
13%
|
|
25,483,176
|
|
19,343,355
|
32%
|
Ore mined – Tucano
(tonnes)
|
|
749,510
|
|
715,346
|
5%
|
|
1,858,037
|
|
1,876,031
|
-1%
|
Ore mined – Mexico
(tonnes)2
|
|
50,868
|
|
64,843
|
-22%
|
|
207,864
|
|
262,877
|
-21%
|
Tonnes milled –
Tucano
|
|
901,854
|
|
860,634
|
5%
|
|
3,359,041
|
|
2,520,981
|
33%
|
Tonnes milled –
Mexico (excluding custom
milling)2
|
|
49,498
|
|
67,564
|
-27%
|
|
208,392
|
|
266,867
|
-22%
|
Tonnes milled –
consolidated operations
(excluding custom milling)
|
|
951,352
|
|
928,198
|
2%
|
|
3,567,433
|
|
2,787,848
|
28%
|
Plant gold head grade
(g/t) – Tucano
|
|
1.23
|
|
1.33
|
-8%
|
|
1.28
|
|
1.41
|
-9%
|
Plant head grade (g/t
Ag eq) – Mexico2
|
|
270
|
|
350
|
-23%
|
|
305
|
|
347
|
-12%
|
Gold oz produced –
Tucano
|
|
32,017
|
|
34,181
|
-6%
|
|
125,417
|
|
105,561
|
19%
|
Gold oz produced –
consolidated operations
|
|
33,703
|
|
37,089
|
-9%
|
|
133,031
|
|
118,494
|
12%
|
Au eq oz
produced3
|
|
36,997
|
|
44,697
|
-17%
|
|
150,051
|
|
146,853
|
2%
|
Gold oz
sold
|
|
33,374
|
|
38,992
|
-14%
|
|
132,436
|
|
120,056
|
10%
|
Au eq oz
sold3
|
|
36,549
|
|
45,625
|
-20%
|
|
148,579
|
|
145,746
|
2%
|
Cash costs per gold
oz sold4 – Tucano
|
$
|
879
|
$
|
1,340
|
-34%
|
$
|
849
|
$
|
1,118
|
-24%
|
AISC per gold oz
sold4 – Tucano
|
$
|
1,171
|
$
|
1,681
|
-30%
|
$
|
1,200
|
$
|
1,406
|
-15%
|
Cash costs per gold
oz sold4
|
$
|
905
|
$
|
1,268
|
-29%
|
$
|
833
|
$
|
1,071
|
-22%
|
AISC per gold oz
sold, excluding corporate G&A4
|
$
|
1,248
|
$
|
1,615
|
-23%
|
$
|
1,228
|
$
|
1,383
|
-11%
|
AISC per gold oz
sold4
|
$
|
1,318
|
$
|
1,703
|
-23%
|
$
|
1,328
|
$
|
1,484
|
-11%
|
___________________________________
|
1
|
The comparative data
presented for the year ended December 31, 2019 is for the period
from March 5, 2019 to December 31, 2019, the period for which the
Company owned Tucano following the acquisition of
Beadell.
|
2
|
Includes Topia and
the GMC.
|
3
|
Gold equivalent oz
are referred to throughout this document. For 2020, Au eq oz
were calculated using a 1:90 Au:Ag ratio, and ratios of 1:0.
0006412 and 1:0. 0007554 for the price/oz of gold to price/pound of
lead and zinc, 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 2020. Comparatively, Au eq oz for 2019 were calculated
using a 1:80 Au:Ag ratio, and ratios of 1:0.000795 and 1:0.00102258
for the price/oz of gold to price/pound of lead and zinc,
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
2019.
|
4
|
Throughout this news
release and the accompanying MD&A, Great Panther has included
the non-GAAP performance measures cash costs per gold oz sold, cash
costs per payable silver oz, AISC per gold oz sold excluding
corporate G&A expenditures, AISC per gold oz sold, AISC per
payable silver oz, mine operating earnings before non-cash items,
adjusted EBITDA adjusted net income (loss), and free-cash flow
throughout this news release and the accompanying Company's
MD&A. 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 and should not be considered in isolation or as a substitute
for measures of performance prepared in accordance with
IFRS.
|
Financial Highlights
|
|
|
|
|
|
|
|
|
|
|
(in thousands,
except per oz, per share and
exchange rate figures)
|
Q4
2020
|
Q4
2019
|
Change
|
2020
|
20191
|
Change
|
Revenue
|
$
|
68,708
|
$
|
65,679
|
5%
|
$
|
260,805
|
$
|
198,653
|
31%
|
Mine operating
earnings before non-cash items2
|
$
|
32,433
|
$
|
8,447
|
284%
|
$
|
124,508
|
$
|
41,874
|
197%
|
Mine operating
earnings
|
$
|
22,144
|
$
|
(5,046)
|
n/a
|
$
|
83,867
|
$
|
6,845
|
1,125%
|
Net income
(loss)
|
$
|
13,611
|
$
|
(28,068)
|
n/a
|
$
|
334
|
$
|
(91,022)
|
n/a
|
Adjusted net income
(loss)2
|
$
|
6,102
|
$
|
(32,403)
|
n/a
|
$
|
22,524
|
$
|
(47,260)
|
n/a
|
Adjusted
EBITDA2
|
$
|
26,513
|
$
|
(5,338)
|
n/a
|
$
|
98,019
|
$
|
7,919
|
1,138%
|
Free
cash-flow2
|
$
|
9,057
|
$
|
2,405
|
277%
|
$
|
26,941
|
$
|
(12,123)
|
n/a
|
Cash flow from
operating activities
|
$
|
17,972
|
$
|
7,785
|
131%
|
$
|
68,889
|
$
|
13,787
|
400%
|
Cash and short-term
deposits at end of period
|
$
|
63,396
|
$
|
36,970
|
71%
|
$
|
63,396
|
$
|
36,970
|
71%
|
Net working capital
at end of period
|
$
|
31,396
|
$
|
12,815
|
145%
|
$
|
31,396
|
$
|
12,815
|
145%
|
Earnings (loss)
per share – basic
|
$
|
0.04
|
$
|
(0.09)
|
-143%
|
$
|
0.00
|
$
|
(0.33)
|
-100%
|
Earnings (loss) per
share – diluted
|
$
|
0.04
|
$
|
(0.09)
|
-143%
|
$
|
0.00
|
$
|
(0.33)
|
-100%
|
Average realized gold
price per oz3
|
$
|
1,884
|
$
|
1,485
|
27%
|
$
|
1,784
|
$
|
1,419
|
26%
|
Average realized
silver price per oz3
|
$
|
25.06
|
$
|
17.71
|
42%
|
$
|
21.28
|
$
|
16.45
|
29%
|
Brazilian real
(BRL)/USD
|
$
|
5.40
|
$
|
4.12
|
31%
|
$
|
5.16
|
$
|
3.94
|
31%
|
Mexican peso
(MXN)/USD
|
$
|
20.59
|
$
|
19.27
|
7%
|
$
|
21.41
|
$
|
19.26
|
11%
|
_____________________________
|
1
|
The comparative data
presented for the year ended December 31, 2019 is for the period
from March 5, 2019, to December 31, 2019, the period for which the
Company owned Tucano following the acquisition of
Beadell.
|
|
|
2
|
The Company has
included the non-GAAP performance measures mine operating earnings
before non-cash items, adjusted net income (loss), adjusted EBITDA,
and free cash-flow throughout this news release and the
accompanying Company's MD&A. 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 and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
|
|
|
3
|
Average realized gold
and silver prices are prior to smelting and refining
charges.
|
Outlook
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, with the second half of 2021 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.
2021 Production Guidance
|
|
|
|
|
Tucano
|
Mexico
|
Consolidated
|
Gold eq production
(oz)1
|
110,000-120,000
|
25,000-30,000
|
135,000-150,000
|
Silver production
(k oz)
|
–
|
1,500-1,600
|
1,500-1,600
|
Gold production
(oz)
|
110,000-120,000
|
8,000-10,000
|
118,000-130,000
|
AISC ($/Au oz
sold)2
|
$1,350-1,450
|
N/A
|
$1,350-1,450
|
Exploration
(operating mines) ($ millions)
|
$ 8.4
|
$ 3.0
|
$ 11.4
|
_______________________________
|
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.
|
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 and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. 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.
|
|
|
|
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.
|
Refer to the Company's FY 2020 MD&A for more details of the
financial results and for reconciliations of the Company's non-GAAP
performance measures to the nearest GAAP measure. The full version
of the Company's consolidated financial statements for the year
ended December 31, 2020 and 2019 and
the Company's FY 2020 MD&A can be viewed on the Company's
website at www.greatpanther.com or on SEDAR at www.sedar.com. All
financial information is prepared in accordance with IFRS, except
as noted in the Non-GAAP Measures section of the Company's
MD&A.
WEBCAST AND CONFERENCE CALL
The Company will host a conference call and webcast on
Thursday, March 4, 2021 at
9:00 AM PT/12:00 PM ET. Shareholders, analysts, investors
and media are invited to join by logging in or calling in to the
details below.
Webcast: https://www.greatpanther.com/investors/webcasts/
Canada/USA
TF: 1-800-319-4610
International
Toll:
+1-604-638-5340
A replay of the webcast will be available on the Webcasts
section of Great Panther's website approximately one hour after the
conference call. Audio replay will be available until April 4, 2021, by calling the numbers below using
the replay access code 6298.
Canada/USA
TF:
1-800-319-6413
International Toll:
+1-604-638-9010
Replay Access Code: 6298
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 that includes 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.
TECHNICAL INFORMATION
Scientific and technical information contained in this news
release have been reviewed and approved by Neil Hepworth, Chartered Engineer UK Chief
Operating Officer, a Qualified Person, as the term is defined in
National Instrument 43-101 - Standards of Disclosure for
Mineral Projects.
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: (i) expectations of the Company's
2021 production and cost guidance, ability to meet its production
and cost guidance under the heading "Outlook" in the news release
and the assumptions underlying; (ii) expectation the Company will
have continued strong cash-flow from operations sufficient to fund
our capital programs and our ambitious 2021 exploration programs;
(iii) expectation that Tucano will experience high stripping costs
in the first half of 2021 and that a majority of our production
will occur in the second half of 2021; (iv) expectations regarding
the mine life for Tucano and the ability to operate Tucano after
2023 based on converting Mineral Resources into Mineral Reserves;
(v) expectations regarding the ongoing geotechnical control of UCS
and related slope stability, the ability to continue mining and the
ability to continue to include the UCS pit as part of the Mineral
Resources and Mineral Reserve estimate; (vi) expectations that the
Phase II TSF can be operated as planned on the basis of positive
results of monitoring and the availability of the Phase III TSF,
which is expected to be available for use after constructing
retaining walls and erosion controls around the base of the
facility, without interruption; and (vii) 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:
the assumptions underlying the Company's Outlook of production and
cost guidance continuing to be accurate; continued operations at
all three of the Company's mines in 2021 without significant
interruption due to COVID-19 or any other reason; continued
operations at Tucano in accordance with the Company's mine plan,
including the expectations regarding the ongoing geotechnical
control of UCS and related slope stability where mining re-started
in the late October and the Company's ability to successful access
the mineralization in the UCS pit without additional costs or
interruption; 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 gold, silver,
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; currency
exchange rates remaining as estimated; capital, decommissioning and
reclamation estimates; prices for energy inputs, labour, materials,
supplies and services (including transportation); all necessary
permits, licenses and regulatory approvals for the Company's
operations are received in a timely manner on favourable terms,
including the granting of permits for the expansion of the GMC
tailings storage facility ("TSF") in time without condition
which if not granted or conditioned, could result in an
interruption to operations; the sufficiency of the Company's
tailing storage facilities; the Topia TSF can continue to operate
as planned without further movement underlying the Phase I
and II TSFs and that the Topia Phase III TSF will be available when
the Phase II TSF is no longer available; Tucano will be able to
continue to use cyanide in its operations; assumption that
management's estimates in connection with the assessment of
provisions for loss and contingent liabilities relating to legal
proceedings will not differ materially from the ultimate loss or
damages incurred by the Company; assumption that management's
estimates regarding the carrying value of its mineral properties
will not 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 Company will not be
required to further impair Tucano as the current open pit mineral
reserves are depleted through mining; the ability to procure
equipment and operating supplies and that there are no material
unanticipated variations in the cost of energy or supplies; the
accuracy of the geological, operational and price and exchange rate
assumptions on which the production and cost guidance is based;
operations not being disrupted by issues such as pit-wall failures
or instability, mechanical failures, labour disturbances and
workforce shortages, illegal occupations or mining, seismic events,
and adverse weather conditions; the Company's expectations that
metallurgical, environmental, permitting, legal, title, taxation,
socio-economic, political, marketing or other issues will not
materially affect the estimates or 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: the
impact of COVID–19 on the Company's ability to operate as
anticipated, including the risk of an unplanned partial or full
shutdown of the Company's mines and processing plants, whether
voluntary or imposed, which would adversely impact the Company's
revenues, financial condition and ability to meet its production
and cost guidance and fund its capital programs and repay its
indebtedness; the inherent risk that estimates of mineral
reserves and resources may not be accurate and accordingly that
mine production will not be as estimated or predicted; as the
Company's mines do not have established mineral reserves, except
for Tucano, the Company faces higher risks that anticipated rates
of production and production costs, such as those provided above
under the heading "Outlook" and "2021 Production Guidance", will
not be achieved, each of which risks could have a material adverse
impact on the Company's ability to continue to generate anticipated
revenues and cash flows to fund operations from and ultimately
achieve or maintain profitable operations; open pit mining
operations at Tucano have a limited established mine life and the
Company may not be able to extend the mine life for Tucano open pit
operations beyond 2023 as anticipated; gold, silver and base metal
prices may decline or may be less than forecasted; fluctuations in
currency exchange rates (including the U.S. dollar to Brazilian
real exchange rate) may increase costs of operations; even though
the geotechnical consultant have approved the restart of mining the
UCS pit, 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 production plans and
future revenues; operational and 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) may
result in unforeseen costs, shut downs, delays in production and
exposure to liability; planned exploration activities may not
result in conversion of existing mineral resources into mineral
reserves or discovery of new mineral resources; potential political
and social risks involving Great Panther's operations in a foreign
jurisdiction; the potential for unexpected costs and expenses or
overruns; employee and contractor relations; relationships with,
and claims by, local communities; the Company's ability to obtain
all necessary permits, licenses and regulatory approvals in a
timely manner on favourable terms, including the granting of
permits for the GMC TSF in time without condition which if not
granted or conditioned could result in an interruption to
operations at the GMC; changes in laws, regulations and government
practices in the jurisdictions in which the Company operates,
including among others proposed labour and tax reform in the
jurisdictions in which we operate; legal restrictions related to
mining; the inability to continue to operate the Topia TSF as
planned, or to commence stacking at Topia Phase III when Phase II
TSF is no longer available; diminishing quantities or grades of
mineral reserves as properties are mined operating or technical
difficulties in mineral exploration, changes in project parameters
as plans continue to be refined; the Company's inability to meet
its production forecasts or to generate the anticipated cash flows
from operations could result in the Company's inability to meet its
scheduled debt payments when due or to meet financial covenants to
which the Company is subject or to fund its exploration programs as
planned; an unfavourable decision by the Ministry of Energy and
Mines of Peru with respect to the
proposed modifications to the Coricancha closure plan; fines
penalties, regulatory actions or charges against the Company's
Coricancha subsidiary arising from removal of the injunction;
ability to maintain and renew agreements with local communities to
support continued operations; there is no assurance that the
Company will be able to identify or complete acquisition
opportunities of, if completed, that such acquisitions will be
accretive to the Company; and other risks and uncertainties,
including those described in respect of Great Panther, in the
MD&A and its most recent 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.
There is no assurance that these forward-looking statements will
prove accurate or that actual results will not vary materially from
these forward-looking statements. Although the Company has
attempted to identify important factors that could cause actual
results to differ materially, there may be other factors that cause
results not to be as anticipated, estimated, described, or
intended. Accordingly, readers are cautioned not to place
undue reliance on forward looking statements. Forward-looking
statements and information are designed to help readers understand
management's current views of our near- and longer-term prospects
and may not be appropriate for other purposes. The Company
does not intend, nor does it assume any obligation to update or
revise forward-looking statements or information, whether as a
result of new information, changes in assumptions, future events or
otherwise, except to the extent required by applicable law.
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SOURCE Great Panther Mining Limited