Great Panther silver reports second quarter results

Marketwire | August 12, 2011 | 7:12 pm Precious Metals Europe Silver 

GREAT PANTHER SILVER LIMITED (TSX:GPR)(NYSE Amex:GPL) (the “Company”) announces the financial results for the Company’s quarter ended June 30, 2011. This is the first financial year where the Company has prepared its consolidated interim unaudited financial statements using International Financial Reporting Standards (“IFRS”). The full version of the financial statements and management’s discussion and analysis can be viewed on the Company’s web site atwww.greatpanther.com or on SEDAR at www.sedar.com.

“Following the strong financial performance we delivered in the first quarter, it is unfortunate that the delays in shipments of concentrate from our Guanajuato operation have impacted our revenue in the second quarter. However, we believe that the agreements we now have in place to secure future sales will remedy the situation and that the backlog of concentrate will be sold over the balance of the year at potentially higher metal prices,” said Robert Archer, President & CEO. “We have a strong balance sheet, our operations are more profitable than ever, and we are moving ahead with all of our expansion plans as previously outlined.”

SECOND QUARTER HIGHLIGHTS

  • Closed equity offering for gross proceeds of $24.2 million on April 12, 2011.
  • Cash and cash equivalents of $37.7 million at June 30, 2011.
  • 8% decrease in revenue to $8.6 million for the quarter ended June 30, 2011 from $9.3 million for the same period in 2010.
  • 39% increase in revenue to $24.0 million for the six months ended June 30, 2011 from $17.0 million for the same period in 2010.
  • 15% increase in gross profit (earnings from mining operations) to $4.0 million for the three months ended June 30, 2011 from $3.4 million for the same period in 2010.
  • 43% decrease in net income to $2.5 million for the quarter ended June 30, 2011 from $4.4 million for the same period in 2010, due to a one-time deferred income tax recovery of $3.1 million in 2010.
  • 25% increase in Adjusted EBITDA(3) to $3.1 million for the three months ended June 30, 2011 from $2.5 million for the three months ended June 30, 2010.
  • 2% decrease in overall metal production to 562,944 silver equivalent ounces (“Ag eq oz”) for the quarter ended June 30, 2011 from 574,740 for the same period in 2010.
  • 6% decrease in silver production from 410,583 for the quarter ended June 30, 2010 to 386,210 Ag oz for the quarter ended June 30, 2011.
  • 31% increase in gold production to 1,931 Au oz for the three months ended June 30, 2011 compared to 1,474 Au oz for the same period in 2010.
  • 3% increase in overall metal production at Topia for a quarterly record of 212,108 Ag Eq oz as compared to the same period in 2010.
  • 18% increase in silver production at Topia for a quarterly record of 143,774 Ag oz as compared to the same period in 2010.
  • 30% increase in plant throughput at both operations to 56,643 from 43,555 tonnes for the three months ended June 31, 2011 and 2010, respectively. Exploration drilling continues from surface at San Ignacio and from underground at Rayas and Guanajuatito in Guanajuato.
  • 54% increase in cash cost per silver ounce, net of by-products, for the second quarter of 2011 to US$11.84 from US$7.70 for the second quarter of 2010. Cash costs are higher due to the impact of higher metal prices and lower ore grades while site unit costs per tonne of ore processed remain unchanged.
  • Joined the Russell Global Index and the Market Vectors Junior Gold Miners Index raising the Company profile with investment managers and institutional investors.
  • On July 12, 2011, purchased the new Santa Rosa silver-gold project totalling 1,514 hectares, approximately 10 to 15 kilometres northeast of Guanajuato, Mexico for US$1.5 million, increasing land holdings in Guanajuato by 136%.

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