Great Panther Mining Limited (TSE:GPR) (NYSEAMERICAN:GPL) has told investors that it aims this year to ramp up exploration, expand its resources and improve its finances as the group reported its 2019 financial results.
Last year, the precious metals producer bought the Tucano gold mine in Brazil, which led to a jump in revenue for the year to end December. The company also operates two Mexican mines - the Topia mine and the Guanajuato Mine Complex (GMC).
"In 2019, Great Panther transformed into a growing, intermediate precious metals producer through the acquisition of Tucano, which increased production (on a gold equivalent basis) and revenue by 182% and 234%, respectively over 2018," Jeffrey Mason, the miner's interim president and CEO and its chairman said in the results statement.
Mason significantly said that in 2020 the firm would invest a minimum of C$11 million aimed at realizing exploration potential at its assets. This will particularly focus on mine life extension at the Brazil mine and a possible re-start of the Guanajuato Mine later this year, the company boss said.
"We ended the year exceeding our revised fourth quarter production guidance at Tucano and, in the past three months, we have raised $24 million of new non-dilutive capital (net of cash collateral requirements) to strengthen our balance sheet," the company added.
For the 12 months to December 31, 2019, Great Panther's revenue came in at C$198.7 million, up from C$139.2 million in 2018, reflecting the acquisition of Tucano. The net loss was C$91.0 million, as mine operating earnings were offset by an impairment of Tucano goodwill of C$38.7 million.
Cash and short term deposits at the end of the year were C$36.9 million compared to C$50.5 million the year before - down 27%. The firm's net working capital was C$12.8 million.
Great Panther said it could not yet provide company-wide guidance for 2020 but could offer operating guidance for both Tucano and the GMC mines, which, combined, represented around 85% of 2019 production on a gold equivalent ounce basis.
For Tucano, 2020 planned production is between 120,000 and 130,000 gold ounces - up around between 13% and 23% compared to the 106,000 gold ounces of production in 2019.
At GMC, this year's planned production is between 1.2 to 1.4 million silver equivalent ounces, a decline of around 7% to 20% from last year's output of 1.5 million silver equivalent ounces.
Great Panther also noted that it has implemented a coronavirus response plan, which includes a number of measures to safeguard against the spread of the virus.
"Although there have not been any impacts to the company's operations to date, the company cannot provide assurance that there will not be disruptions to its operations in the future," it said.
Shares slipped 6.5% in Toronto to C$0.43.
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