Great Panther Mining Limited (NYSEAMERICAN:GPL) (TSE:GPR) posted a C$59.3 million increase in revenue in its third quarter, thanks to the addition of its Tucano mine in Brazil, where it expects to continue to see production increases.
The gold mine was added to Great Panther's asset portfolio in March this year, when it acquired Beadell Resources.
READ: Great Panther Mining still expects 4Q production growth but cuts guidance for Tucano Gold Mine
Revenue for the three months to end September was C$71 million, compared to C$11.6 million in the same quarter a year ago, with Tucano accounting for C$58.2 million of that figure, the miner said
Higher realized gold and silver prices also contributed to the uplift.
Mine operating earnings before non-cash items also increased to C$20 million in the period (C$667,000 in 2018), which was also mainly attributed to the contribution of Tucano.
The net loss for the period though increases to C$6.1 million, compared to a loss of C$3.6 million in third quarter, 2018 as operating earnings were offset by general and administrative (G&A) expenditures of C$2.9 million, exploration, evaluation and development (EE&D) expenditures of C$2.9 million and finance and other expenses of C$9.7 million, said Great Panther.
Jeffrey Mason, the newly appointed interim president and CEO, who is also chairman of the board, said Tucano had "driven a significant increase in mine operating earnings and operating cash-flow over the third quarter of last year.
In an earlier statement today, Great Panther revealed CEO James Bannantine had left the firm with immediate effect following a decision by the company's board to effect a leadership change. Mason assumes the additional role of interim president and CEO until a permanent successor is in place.
"More importantly, the continued improvements of Tucano's operations have translated into increases in production and mine operating earnings over the prior quarter, and we expect to deliver a further increase in production in the fourth quarter of 2019," continued Mason
"We also further reduced Tucano's debt levels by almost C$9.0 million in the third quarter of 2019," he noted.
As reported previously, a geotechnical issue was discovered on October 6 in the west wall of the Urucum Central South pit (UCS) at Tucano, one of the five pits scheduled for production in the fourth quarter and into next year.
As a precautionary measure and following safety protocols, the pit and access roads were closed, an adjacent haul road was re-routed and stockpiles moved away from the pit, while a full geotechnical review of UCS and all other pits was initiated.
"Although geotechnical issues with one of our five Tucano pits, UCS, has reduced our expected production for the fourth quarter, we are working diligently to ensure we have a plan to safely return UCS to our mine plan," added Mason.
As a result, Great Panther has lowered its fourth-quarter guidance for the Tucano gold mine to between 39,000 and 44,000 ounces.
Full-year guidance for Mexico has also been revised downwards to between 40,000 and 45,000 gold equivalent ounces.
Great Panther operates three mines including the Tucano Gold Mine in Amapá State, Brazil, and two primary silver mines in Mexico - the Guanajuato Mine Complex and the Topia Mine.
Exploration at Tucano is expected to complete 7,450 metres in 36 holes by the end of the year, all comprising near-mine or in-mine targets, noted Great Panther in today's statement.
This is aimed at realizing Tucano's significant near-mine exploration potential to extend mine life and increase options on grade.
Work has also started on a regional exploration program, focused on the extensive land package surrounding Tucano aiming to capitalize on the asset's longer-term exploration potential.
At Coricancha, the firm is "establishing the conditions" under which a restart in production can be implemented.
In a separate statement Thursday, Great Panther said it had enhanced its management team with the appointment of mining engineer Neil Hepworth as chief operating officer (COO).
He has over 30 years' experience in underground mining operations and technical and operational experience in open-pit mines. Hepworth has operational experience throughout Latin America, Africa and Europe, with extensive experience in Brazil and Mexico, the firm said.
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