Great Panther Mining Limited (TSX:GPR, NYSE:GPL), a growth-oriented precious metals producer focused on the Americas, has posted impressive second-quarter production results from its two wholly-owned operating mines - Tucano in Brazil and Topia in Mexico.
For the period ended June 30, 2022, the Vancouver, British Columbia-based company reported consolidated metal production of 20,187 gold equivalent ounces (Au eq oz), inclusive of 16,889 gold ounces (Au oz) and 159,529 silver ounces.
The company posted total gold production at Tucano of 16,629 Au oz, while it clocked up total silver equivalent production at Topia of 266,893 silver equivalent ounces (Ag eq oz).
READ: Great Panther Mining divests Mexican silver assets
"The second quarter was transformational for Great Panther with the announcement of the agreement to sell our Mexican assets," Great Panther interim CEO and chair Alan Hair said in a statement. "Divesting these assets allows us to channel our resources towards the Tucano Gold Mine where we believe the most value can be created for investors and other stakeholders. Production from Tucano during the quarter was in line with expectations as we position the mine for a return to steady-state production.”
Hair revealed that heavy stripping activity over the last number of quarters has prepared “numerous pits for increased production of ore in the second half of the year”.
“We believe it will result in improving production results in the quarters to come," he added.
The company's operations are on track to meet previously announced consolidated production guidance for 2022 of 100,000 to 119,000 Au eq oz. The mine plan for Tucano reflects more stripping in the first half of 2022 with the second half of 2022 expected to account for at least 65% of annual gold production guidance.
The company added that annual consolidated production guidance is subject to the sale of the Mexican silver assets and will be revisited once the transaction is finished.
Tucano Mine
Great Panther said total mined tonnage increased by 76%, compared to 1Q 2022, and 36% compared to 2Q 2021 due to having two mining contractors, U&M and MINAX, operating in parallel throughout different pits. Mined ore tonnage and gold grades during the 2Q were higher compared to the first quarter of 2022 mainly due to improvements related to ore lenses in the different pits being accessed, said the company.
Production from Tucano during the quarter was in line with expectations as stripping continued to advance in preparation for accessing main ore lenses and consequently better grades in the second half of 2022, it added. Gold production in the 2Q was 16,629 oz, compared with 14,037 Au oz in 1Q 2022, an increase of 18%, and 20,696 Au oz in Q2 2021, a decrease of 20%.
Topia
Meanwhile, silver equivalent production at Topia in the quarter was 266,893 Ag eq oz, compared with 312,259 Ag eq oz in 2Q 2021, a decrease of 15%, and 290,694 Ag eq oz in 1Q 2022, a decrease of 8%, primarily due to lower gold and silver grades.
“These factors were partly offset by higher gold recovery and the increase in production attributed to the change in metal equivalency ratios for zinc,” said the company.
The Guanajuato Mine Complex (GMC) is currently on care and maintenance, noted the company.
Great Panther will host a conference call and webcast to discuss its 2Q financial results on August 4, 2022, at 9 am PT/12 noon ET. Investors can use the registration link here.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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