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Great Panther Mining reiterates its 2021 production guidance following results from its Brazil and Mexico operations

Last updated: 12:55 14 Apr 2021 EDT, First published: 08:58 14 Apr 2021 EDT

Great Panther Mining Limited -
Great Panther said production is expected to ramp up quarter-over-quarter for the remainder of the year

Great Panther Mining Limited (TSE:GPR) (NYSEAMERICAN:GPL) (FRA:G3U) reported its 1Q 2021 operating results, producing 22,996 gold ounces from its Tucano mine in Brazil, as well as 363,318 silver equivalent ounces from its Topia mine and 279,306 silver equivalent ounces from the Guanajuato Mine Complex (GMC) in Mexico. In total, its consolidated metal production for the quarter was 30,556 gold equivalent ounces. 

The company also noted that its operations are on track to meet previously-announced consolidated production guidance for 2021 of 135,000 to 150,000 gold equivalent ounces. 

“I am pleased to report that operations continue safely despite COVID-19 and we remain on track with our proposed guidance for the year,” Great Panther Mining CEO Rob Henderson said in a statement. 

READ: Great Panther Mining has big exploration plans after strengthening balance sheet, growing reserves and posting record cashflow in 2020

Henderson added: “As previously stated, the first quarter was planned to be a low production quarter due to heavy stripping. Production is expected to ramp up quarter-over-quarter for the remainder of the year as mining progresses into sectors with lower strip ratios.”

Great Panther Mining said production at Tucano was impacted by an expected reduction in ore mined and a planned plant shutdown.  

At Topia, production in Q4 2020 was impacted by a voluntary five-week suspension to safeguard the health of the company's workforce and local community against the spread of coronavirus (COVID-19). Topia realized higher grades and recovery rates for gold and silver during Q1 2021; however, these increases were offset by a decrease in production attributed to the change in metal equivalency ratios for lead and zinc.

The company noted that silver equivalent production at the GMC in 1Q 2021 fell year-over-year due primarily to workforce shortages related to COVID-19, although output rose 4% sequentially.

Great Panther’s first-quarter financial results are scheduled to be released on May 5.

Based in Vancouver, Great Panther owns a diversified portfolio of assets in Brazil, Mexico and Peru, which includes three operating gold and silver mines, four exploration projects, and an advanced development project.

In a flash note commenting on the production report, analysts at Roth Capital repeated a 'Buy' rating and $1.40 price target on Great Panther shares, which currently trade at $0.98 each in Toronto

They said: "Production was slightly below expectations. Additionally, we updated our model to reflect our recent reduction in our gold and silver forecasts for 2021. Despite these items, we believe the company is still poised for a strong 2021."

Contact Sean at sean@proactiveinvestors.com

 -- Adds Roth Capital comment, share price ---

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