Great Panther Mining Limited (TSX:GPR, NYSE:GPL) told investors it expects to produce between 100,000 and 119,000 gold-equivalent ounces in 2022 as the company continues its bid to unlock value from across its three mines.
The precious metals producer runs the wholly-owned Tucano mine in Brazil and the Topia and the Guanajuato Mine Complex (GMC) in Mexico.
"Coming off a record production year in 2020, last year was not what we expected, however, we remain committed to unlocking the value from our asset portfolio in 2022 and beyond," said CEO Rob Henderson, as the miner reported fourth-quarter and full-year operating results.
"The first half of the year will require vigilance as we invest in Tucano and build back steady state production in the second half. To that end, we have secured a new mining contractor for Tucano and will be working on transitioning them over the course of the year.
Henderson added that success in the group's exploration programs had allowed it to accelerate the development of its high-grade Urucum North underground project.
"2022 will see continued investment in exploration of our district-scale land package in Brazil, the majority of which will come in the second half," he said.
READ: Great Panther Mining announces resignation of David Garofalo as chair of its board and appointment of Alan Hair in his place
In the 12 months to December 31, Great Panther produced 105,006 of gold equivalent ounces, down 30% from 150,051 ounces in 2020, while total gold output at Tucano was 79,348 ounces, down 37% from the 125,417 ounces seen in the previous year.
In the fourth quarter of 2021, the company generated 24,284 consolidated gold-equivalent ounces, down 34% from the 36,997 ounces seen in the same period in 2020.
Great Panther noted that lower production and higher costs last year were attributed to issues resulting from wall pit stability in the Urucum Central South (UCS) open pit, where mining was ramped down in the fourth quarter and will be suspended until mid-2022 following the rainy season.
Then, the "additional pushback necessary can be completed in a safe and cost-effective manner," said the firm. Gold production from the UCS pit is planned to start again in 2023.
Meanwhile, the Guanajuato mine and the Cata processing plant of the Guanajuato Mine Complex (GMC) were placed on care and maintenance in November 2021, said Great Panther, while it awaits the permits from CONAGUA necessary to extend the tailings dam.
"Mining activity at the San Ignacio mine has also been suspended while Great Panther continues to proactively engage with CONAGUA in regards of the tailings dam permit and to explore other alternatives to maximize value from the GMC," it added.
Meanwhile, in the first half of 2022, mining will focus on the TAP AB, Tap C and Urucum North pits, while at the high-grade underground mine at Urucum North, engineering studies and permitting are underway and construction work is expected to commence in late 2022 with gold production from the mine anticipated to come onstream in 2023.
"The company has budgeted $6 million for exploration in 2022, which will be focused on the continued exploration of the company's district-scale land package in Brazil, the majority of which will come in the second half of 2022," it added.
Total capital expenditures are budgeted at $22 million in 2022, including around $9 million for underground mine development - also concentrated in the second half, it told investors.
Contact the author at giles@proactiveinvestors.com