TSX: GPR
NYSE American: GPL
VANCOUVER, Jan. 17, 2019 /PRNewswire/ - GREAT PANTHER SILVER
LIMITED (TSX: GPR; NYSE American: GPL) ("Great Panther"; the
"Company") announces today 2019 production and unit cost guidance
for its two wholly-owned Mexican silver mining operations: the
Topia Mine, and the Guanajuato Mine Complex ("GMC"), which includes
the San Ignacio Mine and the Guanajuato Mine.
Production in 2019 is expected to be in the range of 3.7 to 4.0
million silver equivalent ounces ("Ag Eq oz"). Great Panther
has undertaken a multi-mine optimization strategy under which the
entire production for the GMC will be sourced from the lower cost
San Ignacio Mine, enabling a focused exploration program for the
Guanajuato Mine aimed at growing higher margin resources. In
addition, a planned increase in the processing capacity from the
Topia Mine in 2019 is expected to increase production by
approximately 25% compared to 2018.
"We have taken the step of realigning our Mexican operations to
reduce unit costs and maximize mine operating cash-flow, with a
modest reduction in our production ounces", stated James Bannantine, President and CEO. "The
continuous improvement of our Mexican operations is important to
our primary growth initiatives that include completing the
acquisition of Beadell Resources Limited, which is expected to
close shortly after respective shareholder votes during the week of
February 11th, and the
completion of the latest phase of our Coricancha project to enable
advancement toward a production decision by the end of March."
The following table provides production and unit cost guidance
for 2019.
|
|
Production and
unit cost guidance
|
FY 2019
Guidance
|
Total silver
equivalent ounces (Ag Eq oz)
|
(1)3,700,000 – 4,000,000
|
Cash cost
|
(2)$5.00 –
6.50
|
All-in sustaining
costs ("AISC") (excluding corporate general and administrative
("G&A") expenditures)
|
(2)$10.00
– 12.00
|
AISC (including
G&A)
|
(2)$13.00
– 15.00
|
(1)
|
Ag Eq oz have been
established using an 80:1 Au:Ag ratio, and ratios of 1:0.06364 and
1:0.0818 for the price/ounce of silver to price/pound of lead and
zinc, respectively.
|
(2)
|
Cash cost, and AISC
are non-GAAP measures and are disclosed on a per payable silver
ounce basis and in US dollars. 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 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.
|
(3)
|
AISC includes all
2019 planned capital expenditures for the Mexican operations, with
the exception of approximately US$1 million for the capacity
expansion at Topia which are classified as non-sustaining capital
expenditures on the basis that these will increase the production
capacity of the plant. The balance of capital expenditures
for Topia are fully reflected in AISC and relate primarily to new
mining equipment, reflecting an increase over the prior
year,.
|
It is cautioned that cash costs and AISC are very sensitive to
Mexican peso foreign exchange rate and metal prices through the
computation of by-product credits.
The Company will provide updated production and unit cost
guidance after the anticipated closing of the of the acquisition of
Beadell Resources Limited (the "Closing"). Beadell is
expected to announce its 2019 production and unit cost guidance
before the Closing, which will give an updated view to the
pro-forma production profile of the combined company.
However, it is recommended that those looking for a reliable
pro-forma unit cost measure wait until post-Closing guidance is
provided. While the combination is expected to reduce the per
unit G&A component of Great Panther's current AISC guidance,
more analysis will be needed to provide final combined unit cost
guidance for 2019.
The technical information contained in this news release has
been reviewed and approved by Robert F.
Brown, P. Eng., acting Vice President Exploration for the
Company and the Qualified Person for the Guanajuato Mine Complex,
and the Topia Mine under the meaning of NI 43-101.
Great Panther continues to advance towards the closing of its
acquisition of Beadell Resources Limited ("Beadell"), the 100%
owner of the Tucano Gold Mine in Brazil. The acquisition of
Beadell will create a new growth-oriented intermediate precious
metals producer focused on the Americas.
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 also expects to make
a decision on whether or not to restart the Coricancha project in
Peru by the end of March 2019. In addition, the Company
anticipates closing of the acquisition of gold producer Beadell
Resources Limited shortly after respective shareholder votes during
the week of February 11th,
2019.
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 ability to meet its
production guidance, expectations of cash cost and AISC,
timing regarding Beadell's announcement of 2019 production and unit
cost guidance, unit cost reductions as a result of the combination
with Beadell, statements regarding the timing and completion of the
acquisition of Beadell, and the timing or positive outcome of a
production decision for the Coricancha project.
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.
Assumptions upon which forward looking statements relating to
the acquisition of Beadell have been made include that Beadell and
Great Panther will be able to satisfy the conditions of closing,
that due diligence investigations of each party will not identify
any materially adverse facts or circumstances, that the required
approvals will be obtained from the shareholders of Beadell and
Great Panther, and that all required third party, regulatory and
government approvals will be obtained. Such factors include,
among others, risks and uncertainties relating to potential
political and social risks involving Beadell and Great Panther's
operations in a foreign jurisdiction, the potential for unexpected
costs and expenses, fluctuations in metal prices, fluctuations in
currency exchange rates, physical risks inherent in mining
operations, operating or technical difficulties in mineral
exploration, changes in project parameters as plans continue to be
refined, and other risks and uncertainties, including those
described in respect of Great Panther, in its annual information
form for the year ended December 31,
2017 and material change reports filed with the Canadian
Securities Administrators available at www.sedar.com and
reports on Form 40-F and Form 6-K filed with the Securities and
Exchange Commission and available at www.sec.gov.
There is no assurance that such forward looking statements will
prove accurate; results may vary materially from such
forward-looking statements; and there is no assurance that the
Company will be able to identify and acquire additional projects or
that any projects acquired will be successfully developed.
Readers are cautioned not to place undue reliance on forward
looking statements. The Company has no intention to update
forward looking statements except as required by law.
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SOURCE Great Panther Silver Limited