a precious metals producer focused on the operation of the Tucano Gold Mine in Brazil 

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Great Panther Mining is a precious metals producer focused on the operation of the Tucano Gold Mine in Brazil where the Company wholly-owns a land package covering nearly 200,000 hectares in the prospective Vila Nova Greenstone belt. 

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Operating in a sustainable manner is embedded in our mission: to safely, sustainably and profitably produce gold and silver, for the benefit of our investors, employees, and communities. Our Sustainability Policy articulates our specific commitments in three key areas, which we believe provide the foundation for a sustainable mining business: safety and healthenvironmental responsibility, and community engagement and development. We have worked hard to develop and implement programs, initiatives, and results in each of these areas.

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Great Panther Silver Reports First Quarter 2013 Financial Results

May 8, 2013

GREAT PANTHER SILVER LIMITED (TSX: GPR)(NYSE MKT: GPL) ("Great Panther"; the "Company") today reported financial results for the Company's three months ended March 31, 2013. The full version of the Company's financial statements and Management's Discussion and Analysis can be viewed on the Company's website at www.greatpanther.com, or on SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in Canadian dollars unless otherwise indicated.

"Great Panther's operations processed record tonnage and delivered year-over-year production growth in the first quarter of 2013 but significantly lower silver grades at Guanajuato translated into higher costs and lower margins," stated Robert Archer , CEO. "The Company also had a significant in-transit shipment of concentrate containing 162,178 silver equivalent ounces and representing approximately $4.5 million at the end of the quarter which was not included in revenue. While the concentrate shipment will be booked in the second quarter and grade and site cost issues are being addressed, the Company is reviewing the impact of this on its cash cost guidance for 2013.

In the fourth quarter of 2012, the Company commenced several initiatives to improve and strengthen the operational efficiency of the Guanajuato Mine Complex and the Topia Mine. Costs have started to decline at Topia but Guanajuato saw similarly high site costs as in the previous quarter. All of the mining in Guanajuato is conducted by contract miners, and contractors and materials are the largest cost centres for the Company. Consequently, these areas are under review with the aim of reducing overall site costs. During the first quarter some contractors were replaced by employees and the Company is evaluating making further changes as well as modifying existing contracts.

With the recent lower silver grades and continued grade variability, particular emphasis is also being placed on improving grade control as this is key to increased production and lower unit costs. A recently completed structural analysis of the Guanajuato vein zones by a prominent structural geologist is being used to better understand grade distribution and assist with geological modeling and exploration drilling. Results from many of these initiatives will take time to have an effect but Great Panther remains committed to long term profitability and growth.

Our key objective for 2013 is to reduce our unit cash costs. In addition, we are preparing to commence the development of our San Ignacio Project and have started drilling at the El Horcon Project. Despite the challenging times for the industry overall, Great Panther continues to maintain a strong balance sheet with $42.2 million in working capital, and no long term debt."



(in 000s except ounces, amounts per share and per ounce)
2013 Q1 2012 Q1 Change
Revenue $ 12,639 $ 13,625 -7%
Gross profit (Earnings from mining operations) $ 313 $ 6,325 -95%
Net income $ 1,276 $ 4,683 -68%
Adjusted EBITDA 1 $ 521 $ 4,441 -88%
Earnings per share - basic $ 0.01 $ 0.03 -67%
Earnings per share - diluted $ 0.01 $ 0.03 -67%
Silver ounces produced 369,624 359,526 3%
Silver equivalent ounces produced 2 607,501 557,606 9%
Silver payable ounces 339,874 316,641 7%
Total cash cost per silver ounce (USD) 1 $ 18.60 $ 9.05 106%
Average realized silver price (USD) 3 $ 29.71 $ 32.65 -9%

1 Adjusted EBITDA" and "cash cost per silver ounce" are non-IFRS measures. Refer to the "Non-IFRS Measures" sections of this Press Release and of the Company's MD&A.

2 Silver equivalent ounces in 2013 were established using prices of US$28 per oz, US$1,680 per oz, US$0.85 per lb and US$0.85 per lb for silver, gold, lead and zinc, respectively, and applied to the recovered metal content of the concentrates that were produced by the two operations.

3 Average realized silver price is prior to treatment, refining and smelting charges.


1 "Adjusted EBITDA" is a non-IFRS measure. Refer to the "Non-IFRS Measures" sections of this Press Release and of the Company's MD&A.


Further discussion of the Company's operational and financial results is contained in the Company's Management's Discussion and Analysis for the three months ended March 31, 2013.


In the first quarter of 2013, cash costs per ounce were significantly impacted by lower silver grades at Guanajuato. As a result, the Company is reviewing its cash cost guidance for 2013. The key objectives at Great Panther's operations are to increase grades and lower costs while maintaining production goals. Existing capacity and continued improvements at the Guanajuato and Topia processing plants will help provide the foundation for growth in 2014 and beyond.

Silver and gold prices experienced significant declines in mid-April after the completion of the Company's first quarter. If metal prices at the date of this news release are sustained through the balance of the second quarter of 2013, management anticipates that gross margins will be very low, or negative, for the period. Also, should these metal prices continue, or go lower, into the second half of the year, it is likely that cash flow from operations will not cover currently projected capital investments for the year.

Management continues to plan cost reduction initiatives and, with the recent lower silver grades and continued grade variability, particular emphasis is being placed on improving grade control as this is key to increased production and lower unit costs. Results from many of these initiatives will take time to have an effect but Great Panther remains committed to long term profitability and growth. With working capital in excess of $40 million, and no long term debt, management believes that the Company has sufficient funds to manage through the cost restructuring.

At the San Ignacio Project in Guanajuato, Mexico, the Company has acquired additional surface rights allowing sufficient space for the development of a ramp and waste dumps and for auxiliary infrastructure, and has applied for the permits required for underground development. During the first quarter of 2013, the Company received the explosives permit and began rehabilitation of the surface infrastructure to prepare for the commencement of mining development activities. It is expected that the land use permit and the Environmental Impact Assessment approvals will be received in the third quarter of 2013.

The Company commenced a surface drill program at El Horcon in April 2013 which includes plans for 30 drill holes for a total of 3,000 metres. The program is laid out along an 800-metre length of the Diamantillo vein and will test the Diamantillo vein as well as various splays and nearby parallel structures and veins.

In light of the recent drop in metal prices, the Company is reviewing its M&A strategy.


The Company will host a webcast and conference call on May 9, 2013, at 7:00 a.m. Pacific Time, 10:00 a.m. Eastern Time. Hosting the call will be Mr. Robert Archer , Chief Executive Officer and Mr. Jim Zadra , Chief Financial Officer.

Shareholders, analysts, investors and media are invited to join the live webcast and conference call by dialing in just prior to the start time.

Dial in number (Toll Free): 1-877-407-9205

Dial in number (International): +1-201-689-8054

No passcode is required

To access the webcast please visit our website at www.greatpanther.com.

A replay of the teleconference call will be available until May 16, 2013 by dialing the numbers below. In addition, the call and webcast will be archived on the Company's website.

Replay number (Toll Free): 1-877-660-6853

Replay number (International): +1-201-612-7415

Conference ID #: 412943


The discussion of financial results in this press release includes reference to EBITDA, Adjusted EBITDA and Cash Cost per Silver Ounce which are non-IFRS measures. The Company provides these measures as additional information regarding the Company's financial results and performance. Please refer to the Company's MD&A for the three months ended March 31, 2013 for a definition and reconciliation of these measures to the Company's financial statements.


Great Panther Silver Limited is a profitable, primary silver mining and exploration company listed on the Toronto Stock Exchange trading under the symbol GPR, and on the NYSE MKT trading under the symbol GPL. The Company's current activities are focused on the mining of precious metals from its two wholly-owned operating mines in Mexico, Topia and Guanajuato. Great Panther is also in the process of developing its San Ignacio Project and has two exploration projects, El Horcon and Santa Rosa. The Company is also pursuing additional mining opportunities within Latin America, with the goal of adding to its portfolio of mineral properties.

All shareholders have the ability to receive a hard copy of the Company's complete financial statements free of charge upon request. Should you wish to receive Great Panther Silver's Financial Statements or the Annual Information Form in hard copy, please contact us at the Company toll free at 1-888-355-1766 or 604-608-1766, or e-mail info@greatpanther.com.

This news release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of Canadian securities laws (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Information Form for the year ended December 31, 2012 and Material Change Reports filed with the Canadian Securities Administrators available at www.sedar.com and reports on Form 40-F and Form 6-K filed with the Securities and Exchange Commission and available at www.sec.gov.



(Expressed in thousands of Canadian dollars)

March 31, 2013 and December 31, 2012 (Unaudited)

  March 31, December 31,
  2013 2012
Current assets:    
  Cash and cash equivalents $ 20,484 $ 20,735
  Short term investments 5,120 5,164
  Trade and other receivables 13,129 18,099
  Income taxes recoverable 140 130
  Inventories 8,141 6,927
  Prepaid expenses, deposits and advances 1,628 1,995
  48,642 53,050
Non-current assets:    
  Mineral properties, plant and equipment 59,975 55,451
  Exploration and evaluation assets 7,890 7,270
  Intangible assets 822 705
  Deferred tax asset 250 253
  $ 117,579 $ 116,729
Liabilities and Shareholders' equity    
Current liabilities:    
  Trade and other payables $ 5,841 $ 8,111
  Current tax liability 598 400
  6,439 8,511
Non-current liabilities:    
  Reclamation and remediation provision 2,539 2,447
  Deferred tax liability 6,637 5,746
  15,615 16,704
Shareholders' equity:    
  Share capital 122,459 122,444
  Reserves 8,234 7,586
  Deficit (28,729) (30,005)
  101,964 100,025
  $ 117,579 $ 116,729




(Expressed in thousands of Canadian dollars, except per share data)

For the three months ended March 31, 2013 and 2012 (Unaudited)

  For the three months ended March 31,
  2013 2012
Revenue $ 12,639 $ 13,625
Cost of sales    
  Production costs 9,532 5,835
  Amortization and depletion 2,715 1,457
  Share-based payments 79 8
  12,326 7,300
Gross profit 313 6,325
General and administrative expenses    
  Administrative expenses 1,971 2,851
  Amortization and depletion 37 33
  Share-based payments 26 130
  2,034 3,014
Exploration and evaluation expenses 641 592
Income (loss) before the undernoted (2,362) 2,719
Finance and other income (expense)    
  Interest income 86 173
  Finance costs (9) (10)
  Foreign exchange gain 4,295 3,655
  Other income 27 94
  4,399 3,912
Income before income taxes 2,037 6,631
Income tax expense    
  Current (239) -
  Deferred (522) (1,948)
  (761) (1,948)
Net income for the period $ 1,276 $ 4,683
Other comprehensive income, net of tax    
  Items that may be reclassified subsequently to profit or loss:    
  Foreign currency translation 604 136
  Change in fair value of available-for-sale financial assets (56) 17
  548 153
Total comprehensive income for the period $ 1,824 $ 4,836
Earnings per share    
  Basic $ 0.01 $ 0.03
  Diluted $ 0.01 $ 0.03



(Expressed in thousands of Canadian dollars)

For the three months ended March 31, 2013 and 2012 (Unaudited)

  Three months ended
  March 31,
  2013 2012
Cash flows from operating activities:    
  Net income for the period $ 1,276 $ 4,683
  Items not involving cash:    
    Amortization and depletion 2,752 1,490
    Unrealized foreign exchange gains (4,216) (3,196)
    Deferred income taxes 522 1,948
    Accretion on reclamation and remediation provision 9 7
    Share-based payments 105 138
    Other non-cash items (78) (15)
  370 5,055
  Interest received 55 151
  Interest paid - (3)
  Income taxes paid (196) (252)
  Net cash from operating activities before changes in non-cash working capital 229 4,951
  Changes in non-cash working capital:    
    Trade and other receivables 5,001 4,484
    Income taxes recoverable (7) (26)
    Inventories (320) (1,855)
    Prepaid expenses, deposits and advances 367 (1,150)
    Trade and other payables (2,231) 20
    Current tax liability 394 -
    Net cash from operating activities 3,433 6,424
Cash flows from investing activities:    
  Purchase of intangible assets (143) (200)
  Purchase of mineral properties, plant and equipment (3,826) (6,072)
  Proceeds from disposal of mineral properties, plant and equipment 5 17
  Net cash used in investing activities (3,964) (6,255)
Cash flows from financing activities:    
  Repayment of capital lease obligations - (53)
  Proceeds from exercise of options 10 321
  Net cash from financing activities 10 268
Effect of foreign currency translation on cash 270 448
Increase (decrease) in cash and cash equivalents (251) 885
Cash and cash equivalents, beginning of period 20,735 39,437
Cash and cash equivalents, end of period $ 20,484 $ 40,322