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Great Panther posts net loss in first quarter as gold equivalent production down 41% y-o-y

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(Kitco News) - Great Panther (TSX: GPR) reported Thursday that its Q1 2022 consolidated production of 17,913 gold equivalent ounces (GEO), inclusive of 14,319 gold ounces and 173,698 silver ounces, was down 41% compared to 30,556 GEO produced in Q1 2021.

The company said that the first half of 2022 is focused on capital intensive programs required to safeguard production in the back-half of the year, adding that the additional pushback of the UCS pit was postponed until the second half of 2022 following the rainy season.

For Q1 2022, the company recorded a net loss of $8.9 million compared with net loss of $0.3 million for Q1 2021.

"Lower metal sales volumes due to low production offset partially by higher realized prices for gold, lead and zinc, resulted in a decrease in revenue to $33.4 million and mine operating loss of $3.4 million compared with revenue of $52.6 million and mine operating earnings of $11.0 million for Q1 2021," the company said in a statement.

The company added that its net working capital declined $18.4 million in Q1 2022 to negative $18.1 million. For Q1 2022, the company incurred cash outflows from operating and investing activities of $20.1 million.

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The company said it expects to generate positive cash flows from its mining operations in 2022 prior to capital investments, debt repayment obligations, and exploration and evaluation and development costs.

Great Panther also noted it has determined that it will require further financing and will consider additional equity financing (including through use of the ATM facility) and debt financing, in order to meet long-term objectives, improve working capital, fund planned capital investments and exploration programs for its operating mines, pursue acquisitions and meet scheduled debt repayment obligations.

Importantly, the company pointed out that its operations are on track to meet previously announced consolidated production guidance for 2022 of 100,000 to 119,000 Au eq. As disclosed in the company's news release dated January 19, 2022, the second half of 2022 is expected to account for at least 65% of annual production guidance.

Great Panther is a precious metals 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.

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