Great Panther Mining Limited (TSX:GPR, NYSE:GPL) has told investors it expects to see improving results as 2022 progresses as the company works to improve gold production at its Tucano mine in Brazil.
Reporting first-quarter results to end-March this year, the precious metals miner noted that stripping at Tucano in the period had advanced at the TAP AB, TAP C and Urucum North (URN) pits despite higher than average rainfall levels.
Combined with the expected lower gold output in the quarter, this had resulted in higher costs than in Q1, 2021 but this is expected to "normalize" in the second half, said the firm, which added that additional pushback at the UCS pit had also been postponed.
"First quarter 2022 results were in line with expectations and good progress was made on numerous fronts as we build back steady-state production at Tucano," Alan Hair, the interim CEO of Great Panther, said in a statement.
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"The first half of 2022 is focused on capital intensive programs required to safeguard production in the back-half of the year. Although still on the road to recovery, I believe we are turning a corner and expect to see improving results as the year progresses," he added.
Great Panther saw revenue in the first quarter come in at US$33.4 million, compared to US$52.5 million in the year-earlier period, on the back of 17,913 ounces of gold-equivalent produced (Q1, 2021: 30,556 ounces).
At Tucano, 14,037 ounces of gold were generated, down from 22,996 ounces in the same period in 2021.
The net loss for the quarter was US$8.9 million compared to a loss of US$0.3 million in Q1, 2021, while the mine operating loss was US$3.4 million versus mine operating earnings of US$11 million in the first quarter of 2021.
Across the group's three mines, the all-in-sustaining-costs (AISC), not including corporate G&A, was US$2,740 per gold ounce sold compared to US$1,557 for the same period in 2021.
Also in the statement, Great Panther repeated that it is on track to meet its production guidance this year of between 100,000 and 119,000 gold-equivalent ounces, while the second half is expected to account for a least 65% of the total.
Great Panther is a precious metals producer focused on the Americas. It owns assets in Brazil, Mexico and Peru that include three gold and silver mines, an advanced development project, and a large land package with district-scale potential.
Contact the writer at giles@proactiveinvestors.com