This news release constitutes a "designated news release" for
the purposes of the Company's prospectus supplement dated
October 15, 2021, to its short form
base shelf prospectus dated September 10,
2021.
VANCOUVER, BC, Jan. 19, 2022 /CNW/ - Great Panther Mining
Limited (TSX: GPR) (NYSE-A: GPL) ("Great Panther" or the
"Company"), a growing gold and silver producer focused on the
Americas, reports production results for the three months
ended December 31, 2021, and fiscal
year 2021, from its three wholly-owned mines: Tucano in
Brazil, and Topia and the Guanajuato Mine Complex ("GMC")
in Mexico.
2021 Production Highlights
- Consolidated metal production of 105,006 gold equivalent ounces
("Au eq oz"), inclusive of 87,054 gold ounces ("Au oz") and
1,201,822 silver ounces ("Ag oz")
- Total gold production at Tucano of 79,348 Au oz
- Total silver equivalent production at Topia of 1,129,611 silver equivalent ounces
("Ag eq oz")
- Total silver equivalent production at the GMC of 1,051,336 Ag
eq oz
Fourth Quarter 2021 Production Highlights
- Consolidated metal production of 24,284 Au eq oz, inclusive of
20,850 Au oz and 227,084 Ag oz
- Total gold production at Tucano of 19,330 Au oz
- Total silver equivalent production at Topia of 212,006 Ag eq oz
- Total silver equivalent production at the GMC of 209,074 Ag eq
oz
"Great Panther Mining had a challenging year operationally, but
the team has risen to those challenges and is in action to pave the
way for future growth for the Company," stated Rob Henderson, President and CEO of Great
Panther. "Coming off a record production year in 2020, last year
was not what we expected, however, we remain committed to unlocking
the value from our asset portfolio in 2022 and beyond. The first
half of the year will require vigilance as we invest in Tucano and
build back steady state production in the second half. To that end,
we have secured a new mining contractor for Tucano and will be
working on transitioning them over the course of the year.
Furthermore, I am pleased to report that success in our exploration
programs has enabled us to accelerate development of the high-grade
Urucum North underground project. 2022 will see continued
investment in exploration of our district-scale land package in
Brazil, the majority of which will
come in the second half."
Operational Update
Lower production and higher costs in 2021 were attributed to
geotechnical issues resulting from wall pit stability in the UCS
open pit and additional remediation work needed to ensure safety
for workers as well as operational issues due to low contractor
performance at Tucano. Mining in the UCS pit was ramped down in the
fourth quarter and will be suspended until mid-2022, following the
rainy season, when the additional pushback necessary can be
completed in a safe and cost-effective manner. The pushback is
expected to start in the second half of 2022 and gold production
from the UCS pit is planned to recommence in 2023.
A letter of intent has been signed with a new open pit mining
contractor for Tucano to operate in parallel with the existing
contractor. Mobilization of the new mining contractor has already
begun and will continue until May
2022. The new contractor is a Brazilian company using a new
mining fleet, which will contribute to an improvement in overall
mine performance.
Further to the news release on December
30, 2021, the Company has filed its defense applying for the
cancellation of the infraction notices issued by the State
Department of the Environment ("SEMA") in connection with SEMA's
investigation of a fish mortality event in the Areia and Silvestre
Creeks (the "Event"). Preliminary water quality assaying and fish
toxicology results, point to the absence of a causal link between
the activities of the Tucano mine and the Event. The Company has
been working collaboratively with authorities, providing access to
all necessary information. Furthermore, the Company reinforces its
commitment to the local community and the state of Amapá and has
supported the local authorities in their assistance efforts.
The Guanajuato mine and the
Cata processing plant of the Guanajuato Mine Complex ("GMC") were
placed on care and maintenance in November
2021 while the Company awaits the permits from CONAGUA
necessary to extend the tailings dam. Mining activity at the
San Ignacio mine has also been
suspended while Great Panther continues to proactively engage with
CONAGUA in regards of the tailings dam permit and to explore other
alternatives to maximize value from the GMC.
Although the COVID-19 pandemic did not significantly impact
operations during the reporting period, case counts have recently
increased at the Company's operations. Great Panther's priority is
to safeguard the health and safety of personnel and host
communities, support and enforce government actions to slow the
spread of COVID-19 and assess and mitigate the risks to our
business continuity. All preventative protocols remain in place and
vaccination rates at sites continue to improve. The Company will
continue to assess the effectiveness of business continuity
measures implemented to minimize and mitigate any potential impact
of the pandemic that may occur on its operations, supply chain,
commercial and financial activities to ensure timely and reasonable
precautionary action.
Tucano Exploration Update
Exploration in 2021 was focused on two objectives: near-mine
resource conversion and extension and developing new regional
exploration targets. Regionally, a 16-kilometre-long elevated gold
trend was successfully identified, and the exploration team is
prioritizing targets within this trend using multi-element
geochemistry combined with ground magnetics and mapping for
drilling later this year.
At the Urucum North underground project a drilling program was
initiated to upgrade the resource estimate and five diamond drills
are operating with the drilling program scheduled to be completed
by the end of March.
2021 Consolidated Operating Results
Consolidated
Operating Results
|
Q4
2021
|
Q4
2020
|
Change
|
FY
2021
|
FY
2020
|
Change
|
Ore processed
(tonnes)
|
925,626
|
951,352
|
-3%
|
3,651,898
|
3,567,433
|
2%
|
Gold eq production
(oz) (1)
|
24,284
|
36,997
|
-34%
|
105,006
|
150,051
|
-30%
|
Gold production
(oz)
|
20,850
|
33,703
|
-38%
|
87,054
|
133,031
|
-35%
|
Silver production
(oz)
|
227,084
|
225,477
|
1%
|
1,201,822
|
1,118,094
|
7%
|
(1)
|
Gold equivalent ounces
for 2021 were calculated using a 1:85 Au:Ag ratio, and ratios of
1:0.0005 and 1:0.0006 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 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.
|
Tucano
Tucano Operating
Results
|
Q4
2021
|
Q4
2020
|
Change
|
FY
2021
|
FY
2020
|
Change
|
Total material mined
(tonnes)
|
6,260,316
|
6,605,369
|
-5%
|
23,455,626
|
25,483,176
|
-8%
|
Total waste mined
(tonnes)
|
5,469,661
|
5,803,286
|
-6%
|
20,978,703
|
23,562,964
|
-11%
|
Ore mined
(tonnes)
|
303,845
|
749,510
|
-59%
|
1,064,453
|
1,858,037
|
-43%
|
Ore processed (tonnes
milled)
|
883,222
|
901,854
|
-2%
|
3,439,053
|
3,359,041
|
2%
|
Au grade
(g/t)
|
0.77
|
1.23
|
-37%
|
0.78
|
1.28
|
-39%
|
Au recovery
(%)
|
88%
|
90%
|
-2%
|
89%
|
91%
|
-3%
|
Gold production
(oz)
|
19,107
|
32,017
|
-40%
|
75,919
|
125,417
|
-39%
|
Carbon fines gold
recovery
|
223
|
–
|
100%
|
3,429
|
–
|
100%
|
Total gold
production (oz)
|
19,330
|
32,017
|
-40%
|
79,348
|
125,417
|
-37%
|
As a result of the previously mentioned operational issues in
the UCS pit at Tucano, production decreased 40% when compared to
the fourth quarter of 2020 to 19,330 Au oz. The decrease is
primarily attributed to lower gold grade resulting from higher
consumption of the low-grade stockpile and marginal ore. Overall
lower plant feed grade resulted in lower gold recoveries.
Topia
Topia Operating
Results
|
Q4
2021
|
Q4
2020
|
Change
|
FY
2021
|
FY
2020
|
Change
|
Ore processed
(tonnes)
|
14,560
|
9,959
|
46%
|
63,516
|
57,390
|
11%
|
Ag grade
(g/t)
|
301
|
337
|
-11%
|
378
|
352
|
7%
|
Au grade
(g/t)
|
0.74
|
0.81
|
-9%
|
0.83
|
0.84
|
-1%
|
Ag recovery
(%)
|
91%
|
90%
|
1%
|
93%
|
92%
|
1%
|
Au recovery
(%)
|
63%
|
49%
|
30%
|
61%
|
54%
|
13%
|
Silver eq production
(oz) (1)
|
212,006
|
179,657
|
18%
|
1,129,611
|
1,085,979
|
4%
|
Silver production
(ounces)
|
128,647
|
97,263
|
32%
|
716,507
|
597,190
|
20%
|
Gold production
(ounces)
|
218
|
127
|
72%
|
1,047
|
835
|
25%
|
Lead production
(tonnes)
|
235
|
212
|
11%
|
1,385
|
1,233
|
12%
|
Zinc production
(tonnes)
|
406
|
294
|
38%
|
1,849
|
1,714
|
8%
|
Gold eq production
(oz) (2)
|
2,494
|
1,996
|
25%
|
13,290
|
12,066
|
10%
|
(1)
|
Silver equivalent
ounces for 2021 were calculated using an 85:1 Ag:Au ratio, and
ratios of 1:0.041 and 1:0.049 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 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.
|
(2)
|
See footnote (1) under
the heading Consolidated Operating Results above for information on
the calculation of gold equivalent ounces for 2021 and 2020,
respectively.
|
Silver equivalent production at Topia in Q4 2021 was 212,006 Ag eq oz compared
with 179,657 Ag eq oz in Q4 2020, an increase of 18% primarily due
to higher tonnes milled and higher gold and silver recoveries. The
lower plant throughput in Q4 2020 was primarily due to a voluntary
five-week suspension related to the COVID-19 pandemic.
Guanajuato Mine Complex
GMC Operating
Results
|
Q4
2021
|
Q4
2020
|
Change
|
FY
2021
|
FY
2020
|
Change
|
Ore processed
(tonnes)
|
27,844
|
39,539
|
-30%
|
149,329
|
151,001
|
-1%
|
Ag grade
(g/t)
|
127
|
117
|
9%
|
117
|
125
|
-6%
|
Au grade
(g/t)
|
1.70
|
1.46
|
16%
|
1.60
|
1.66
|
-4%
|
Ag recovery
(%)
|
87%
|
86%
|
1%
|
87%
|
86%
|
2%
|
Au recovery
(%)
|
86%
|
84%
|
2%
|
87%
|
84%
|
3%
|
Silver eq production
(oz) (1)
|
209,074
|
268,524
|
-22%
|
1,051,336
|
1,131,025
|
-7%
|
Silver production
(oz)
|
98,438
|
128,214
|
-23%
|
485,315
|
520,903
|
-7%
|
Gold production
(oz)
|
1,302
|
1,559
|
-16%
|
6,659
|
6,779
|
-2%
|
Gold eq production
(oz) (2)
|
2,460
|
2,984
|
-18%
|
12,369
|
12,567
|
-2%
|
(1)
|
Silver equivalent
ounces for 2021 were calculated using an 85:1 Ag:Au ratio,
consistent with the Company's guidance for the year. Silver
equivalent ounces for
2020 were calculated using a 90:1 Ag:Au ratio, consistent with the
Company's guidance for the year.
|
(2)
|
See footnote (1) under
the heading Consolidated Operating Results above for information on
the calculation of gold equivalent ounces for 2021 and 2020,
respectively.
|
Silver equivalent production at the GMC in Q4 2021 was 209,074
Ag eq oz compared with 268,524 Aq eq oz, a decrease of 22% over Q4
2020 primarily due to lower plant throughput resulting from the
previously mentioned suspension of mining activities at the GMC
late in the quarter.
2022 Guidance
|
Tucano
|
Mexico
|
Consolidated
|
Gold eq production
(oz)(1)
|
85,000-100,000
|
15,000-19,000
|
100,000-119,000
|
Silver production
(oz)
|
NA
|
700,000–900,000
|
700,000-900,000
|
Gold production
(oz)
|
85,000-100,000
|
1,000-1,500
|
86,000-101,500
|
Cash costs ($/Au oz
sold)
|
1,200-1,300
|
N/A
|
1,200-1,300
|
AISC ($/ Au oz
sold)(2)
|
1,600–1,700
|
N/A
|
1,600-1,700
|
(1)
|
Gold equivalent ounces
for 2022 are calculated using a 1:75 ratio of the silver price to
the gold price, which is representative of the average ratio for
the respective metal prices for 2021, and approximate ratios for
the price/ounce of gold to price/pound of lead and zinc,
respectively, for 2021.
|
(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. The Company's
AISC guidance assumes a Brazilian real to US dollar exchange rate
of 5.35, no production from the GMC and assumes no COVID-19 or
other unplanned shutdowns. Actual results may differ. The Company
is unable to reconcile the projected AISC to its nearest IFRS
measure without unreasonable efforts because it is unable to
predict with a reasonable degree of certainty the adjusting
items.
|
In 2022, consolidated gold equivalent production from the Tucano
and Topia mines is expected to be
in the range of 100,000 to 119,000 Au eq oz. H2 2022 is expected to
account for at least 65% of annual production guidance. The mine
plan for Tucano reflects more stripping in H1 2022 and therefore
AISC in the first half is expected to be higher than annual
guidance and offset by increased production rates in H2.
Mining activities in H2 2022 will focus on the TAP AB, Tap C and
Urucum North pits. Resequencing plans also include accelerating the
decision to develop the high-grade underground mine at the Urucum
North deposit. Engineering studies and permitting are underway and
construction work is expected to commence in late 2022 with gold
production from the Urucum North underground mine anticipated to
come onstream in 2023.
The company has budgeted $6
million for exploration in 2022, which will be focused on
the continued exploration of the Company's district-scale land
package in Brazil, the majority of
which will come in the second half of 2022. Total capital
expenditures are budgeted at $22
million in 2022, including approximately $9 million for underground mine development (also
concentrated in H2 2022).
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 Information 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.
Fourth Quarter and Fiscal Year 2021 Financial Results
Great Panther has scheduled the release of its fourth quarter
and fiscal year 2021 financial results for Wednesday, March 2, 2022, after market close. The
Company will host a conference call and webcast to discuss the
results on Thursday, March 3, 2022,
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:
Live webcast and registration:
https://www.greatpanther.com/investors/webcasts/
Canada and US
Toll-Free:
+ 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 for four weeks by
calling the numbers below using the replay access code 8340.
Canada and US
Toll-Free:
+ 1 800 319 6413
International
Toll: +
1 604 638 9010
Replay Access
Code: 8340
Technical Disclosure
The technical information contained in this news release has
been reviewed and approved by Fernando A.
Cornejo, P. Eng., 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 that includes three gold and silver
mines, an advanced development project and a large land package
with district-scale potential. Great Panther is focused on creating
long-term stakeholder value through safe and sustainable
production, reinvesting into exploration and 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 (i) the Company's expectations for of a
return to steady state production in the second half of 2022; (ii)
the Company's ability to execute its growth plan and to unlock
value from its asset portfolio, (iii) the expected timing and
success for mobilization of the Company's new mining contractor in
Tucano, (iv) the expected cost and timing for receipt of permits,
mine development and commencement of production from the
underground Urucum North project at Tucano, (v) the Company's plans
to continue investment in exploration of its district-scale land
package and the expected success of the Company's 2022 drill
program, (vi) the cost and duration of the Company's planned
pushback in the UCS pit and the expected timeline for recommencing
gold production in the pit, (vii) the Company's ability to secure a
TSF facility expansion permit for the GMC mine or to successfully
negotiate an agreement for third-party processing of the GMC
tailings, (viii) the absence of a casual link between the
activities of the Tucano mine and the fish mortality event at
Areia and Silvestre Creeks, (ix) the success of the Company's
application for the cancellation of infractions issued by SEMA, and
* the Company's ability to meet its 2022 production and cost
guidance.
|
|
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 and exploration
work in 2022 occur without significant interruption due to COVID-19
or any other reason; the accuracy of the Company's geological
modeling at Tucano and the assumptions upon which they are based,
ore grades and recoveries; prices for gold, silver, and base metals
remaining as estimated; currency exchange rates remaining as
estimated; prices for energy inputs, labour, materials, supplies
and services (including transportation); all necessary permits,
licenses and regulatory approvals for the Company's operations and
exploration work are received in a timely manner on favourable
terms, Tucano will be able to continue to use cyanide in its
operations; 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 without interruption and that there are no material
unanticipated variations in the cost of energy or supplies;
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; 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 and conduct exploration work,
including drilling plans, as anticipated, and 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; planned exploration activities, may not result in the
discovery of new Mineral Resources/definition of Mineral Resources
and readers are cautioned that Mineral Resources that are not
Mineral Reserves have no defined economic viability; 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;
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 drilling and
exposure to liability; potential political and social risks
involving Great Panther's operations in a foreign jurisdiction; the
potential for unexpected costs and expenses or overruns; shortages
in the ability to procure equipment and operating supplies without
interruption; 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; changes in laws, regulations
and government practices in the jurisdictions in which the Company
operates; legal restrictions related to mining; 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; 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; the risk
that incremental closure bond requirements with respect to the
Company's Coricancha mine could have a material and adverse effect
on the company's liquidity and could require additional financing
to be raised; the Company's ability to raise additional financing
as debt comes due; the risk that the Company's defense in respect
of the fish mortality event at Areia and Silvestre Creeks is not
accepted by the Brazilian authorities and the Company is required
to pay all or a portion of the fines issued on December 21, 2021
and that these payments have a material adverse impact on the
Company's financial condition; and other risks and uncertainties,
including those described in respect of Great Panther in its most
recent annual information form, and management's discussion and
analysis 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