GPL - Earnings call transcript Q3 2020 | GREAT PANTHER MINING Ltd

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Operator

Good morning, and thank you for standing by. Welcome to Great Panther Mining's Third Quarter Earnings Call. [Operator Instructions]. I would now like to turn the call over to Meghan Brown, Vice President of Investor Relations.

Meghan Brown

Thank you, operator, and good morning, everyone. Brown. Meg I'm taking today. for to in participate Thank the call our you time

Before there advises to language like call we I'd begin, statements. mention the on end this contains forward-looking of at of is presentation, some which that commentary today's the legal some

cautioned period results that non-GAAP various the should and MD&A September those and events dollars reconciliations from U.S. included dollar in and measures, may in amounts for unless to be are MD&A on this You in also today's refers future XX. All presentation differ noted. are in our statements noted the ended presentation. that actual The commentary expressed financial associated definitions and

that the to the recorded AISC website refers being call at greatpanther.com. during for I and available all-in will reference will be would accompanying our later slides call, and and conference remind information this webcast today. Replay be available is costs. For conference everyone this replay presentation sustaining like to on

On Chief Operating we the Hepworth, Officer. Jim Chief Zadra, presentation to CEO; and I'll Rob. have President Financial and over call Rob turn Officer; Neil the Henderson, this now morning,

Robert Henderson

and thank very to with for deliver quarter. number the in third sharing silver helped dialing you, in the price, excited our results steady of today. us the you a with our I'm record production The for increase the everyone, be today. financial from Meg, together Thanks, mines, gold records and

adapted the working. new COVID-XX. just a how of know and few we Slide span team to work Turning I through in people way and say our a has impressed want X. Life of changed have months, it our extremely to to is managing I'm with as

and XXXX, second COVID be robust remains of our to risk developed prevention, we of at testing. mandatory in including biggest appear particularly wave response have entering all We our still the medical screening as and to implemented plans and infection. operations, business our monitoring

been affected. have our of sites All

majority I'm have the X% in that working of Brazil. But at those However, have and or in remaining affected work, to just cases restricted recovered back say been to of pleased home. at are our quarantine COVID XX% with

to continue keep diligent healthy. monitoring and people to and our safe response will We our be in

from Mining X. little transitioning over Silver to now Great operations to stable we Turning Great mining X year jurisdictions, ago, Mexico. Slide and Panther XXX% Since a Brazil in Panther a have X owned

Great GMC essentially Our ounces my I been flow. getting our Panther's gold priority mine, the last steady largest X contributors to largest Tucano operations XX our generating asset cash immediate silver months Panther Mine is of contributing Great strong year-to-date by in the ago, on the support team and When to which far flow and was for cash equivalent Brazil, mines have are Gold in in XX% Mexico Topia and stabilized joined a is basis. our years.

of to immediate an I and been I With at would. travel ban, the onset COVID as mines spend not time normally the have able

cost a ounces at very pleased have meet We and $XX.XX met ounce. I'm report as are the the and equivalent year per all-in operation gold However, of which at to to I and advancing to right spend planned. to exploration XXX,XXX well consolidated to direction recently week was our guidance now firsthand. of cost positioned a in the $XX.XX XXX,XXX full is production day-to-day program in Tucano things going is team senior terms and on an operations remain And able sustaining basis,

quarter position GRI I to fund X. published of good website, the plans. revenue capital, safety, framework. of balance a million, I the These at at with track including ending records, in Neil and And at good in that will report flow of It reporting financial we ounce us more $XX the to close in net very good documents ounce, operations million delivered done encourage in Buoyed programs quarter, We per gold of Operating your strengthening environmental, resulted strong with prices, our I Hepworth, adjusted on you QX higher health, being of is million to our strong to of achievements a million. build our capital to slightly silver sustainability by exploration of and areas report X. and number the further want Slide $XX currently have income now XX,XXX which highlight working results at Slide our million. social And using internally the and equivalents. feedback. to the all work over QX, this and production first Chief equivalent ounces cash a that the a $X,XXX report gold welcome cash of Moving our turn in including puts in discuss $XX in than metal to per sheet, Officer, free governance. the and of in look to quarter $XX the able were and EBITDA detail. in our sites $XX the on $XX we was I and

Neil Hepworth

Rob. Okay. Thanks,

mainly X Okay. X. gold, to about Production of ounces ounces months ounce, the the stable quarter XX.X%. due gold, ending at recoveries for remaining weakened X on in benefit of QX was QX XX,XXX of in XX% cost This Slide plant an Tucano was $X,XXX came of at about which a is brought with production which to over for the sustaining real. XX,XXX September our Starting around XXXX. with the All-in about XX improvement

of with and meters of the advance the to end budget a to drilled exploration XX,XXX third of quarter. Right. drilling XXXX million Our program meters $X.X XX,XXX continuing is with

X. Slide Moving to

system. least a which, at number in the continuity at focused deposit, TAP ounce with below in over drilling phase The TAP program additional two now to drilling before be new further end this ABX designed and contingent to to meters, this of The just per of operating pits. Urucum which expect will drill the targeted this resource of resources extend together and carried intersections, a down year. shells resource in indicated immediately This was on exploration to of buying drills and in out reserve These the step-out the is included drilling shoots the where complete replace year's resources life. pit the first to mine drilling the release being below drilling diamond And statements, some other high-grade pit for of intersections, resulted is ounces infill was the East $X,XXX convert reserves objective ABX. XX,XXX was East. drilling is open and Urucum on to happening we test also ore The

below operation, X. a drill into Urucum The per the underground Okay. program Slide X, to potential X,XXX an of year. have We of evaluate phase move Slide owner gold previous second established underground pit. which day On published to tonnes operation the for ounces is XX,XXX or envisioned contributing a study, North the Tucano XX,XXX pre-feasibility the per

X With this the high-grade pit grading the the grams to meet ore sweetness open supplement a would tonne, ore. that underground up

more be deeper finishing the Okay. for into The would year completion geological off is the initial This the be this these just shallow high-grade to -- drilling in for the both we're in is and target this areas is deeper We when on for that extent on information first the drilling underground ore and That's Great mine plunge. Panther of shoots available continuity whether quarter. stoping access moving underground and now, ramp. drill both going underground developing down have up model. an extend to was mining This terms shoots. of gather drilling that the following aim the of a of to study of proceed extension, to program with decision the and feasibility update the to

XX. Slide at Now

on and tenement of underexplored cover Panther's the terrain Great noted Slide greenstone Brazil. prospective the some XX, As in most

on During geophysics with by XX a reinterpretation plant. datasets of that was the comparing structure exploration targets third on helped data. was carried geochemistry primarily specific focus distance process with XXXX, the An those Tucano quarter numerous the trucking based of a the exploration soil kilometers developed regional existing full generate model airborne within out,

of drilling represent third currently targets, the Mutum, regional are and of phase Saraminda drill X program. We our Tucano the which

sediment program other both exploration but and regional to the this priority land to an stream undertaken, been drilling, evaluate has addition package. compliance to the also of tenements, In extensive corridors on sampling maintain of All soil right.

quarter X Turning silver months X.X per than ounce, silver the over guidance sustaining costs All-in sustaining operations, to full the our the ounces. nearly payable XXXX. a silver below in to Slide to XXX,XXX X quarter is of year XX% XX.X%. Mexican payable $XX improvement ounces for first costs ounce. production equivalent a silver with probably per Topia of $XX guidance XX. of meet stable reported track all-in to million million silver We're $XX.XX operations All-in on per ounce, which payable lower of producing come sustaining recoveries cost XXXX with on will equivalent $XX of X.X was

per Topia Guanajuato a completed for XXXX. Guanajuato rigs to meters XXXX. meters. and ore And Mine, Mine allowed GMC. previous drill Ignacio together Mine of over vein. the year, in increase Mine, XX XX operating Okay. on nearly The GMC, results drilling XX% flow the in QX shared been sourced objectives Pozos ounces small with -- operation, the its And XXX,XXX the develop where this replace from we've XXXX. At of quarter Purisima X San we San the GMC continues silver exploration in XXX,XXX in the narrow production increase drill a Topia a of this blocks mineralization. years sorry, cost to in and situ which But underground XX,XXX of last gold area we The good the by payable to nearly or of outlining from this QX of exploration is good with and, XXXX. basically Complex, came sustaining plant very the focused ounces. mines the of At contribution drill hanging silver GMC. to vein Slide ounces. X,XXX nature, us improvement comprise program equivalent is from from QX, ounce, the continue at is over pretty to allowed amount is of has XX,XXX at have processing Los process just wall and was year, and had focused mined with system At area in on silver our every silver third high-grade All-in end mainly We've drilling some us success advance generation. Guanajuato $XX.XX equivalent have GMC Production was ounces is we for Ignacio, high-grade cash reserves. planned in for primarily X which

Panther's over now Zadra, Great turn call discuss to CFO, to the Okay. results. financial Jim our I'll

Jim Zadra

and everyone. Neil, welcome, you, Thank

a price of improvement over saw gold production a For previous well QX XXXX, and gold operations. XXXX realized $XXX-plus of of results price, terms quarter. in quarter guidance almost results. reflected our improvement percentage $X,XXX, over $XXX Panther's our greater made together Great even increases, financial the strong with average for which very an Mexican to tracking QX benefited financial strong Silver The annual

leveraged representing the XX% However, we price, remain QX. primarily in of production to gold just value over gold of our the with

million. saw double million primarily QX share quarter. at Net of earnings the more or $XX Mine cost reflected payables at than We reduction corporate $X.X a by a weaker of decrease in flow operating million QX before QX $X $XX real. a Brazilian million earnings previous in in which before AISC XXXX, we very over This reported last million, for was a $X.XX EBITDA performance normalize XX% QX, million, $X,XXX flow, QX high from at almost double year. the XXXX; and and cash good was more G&A driven $XX.X our were of operating QX. the over noncash for trade to per was also level Cash at on items adjusted improvement consolidated activities, threefold in coming came level than about the balance, with our the basis operating $XX or this an end

these for reflected note also In CapEx our for $X that flow flow adjusting strong shows and flow project $XX expensed before hedges. than and, exploration capitalized, interest and care includes are on payments addition, generated in settlements Mexican lease our rather cash Coricancha of which which BRL million operations, expenditures operations $XX the items, million, operating and and our in of I charges. margin cash it maintenance million After expenditures free capital business. G&A operating our course, our of cash

$X,XXX AISC to gold, generation of X-month $XXX our fourth reported performance year, we for there the guidance actual for generating Other continuing CapEx see well free of the For full cash at At expect no and noted strong consolidated with our continued nonsustaining our quarter. the in we're gold ounce, gold to AISC to and is financial and cash flow. $X,XXX drill this of $X,XXX is programs, in ounce and significant outside $X,XXX multiyear QX. $X,XXX noted the silver trending per AISC highs, flow planned at Tucano order are programs guidance. per are the Tucano which than With

our of working at position the to quarter. our and our all That's at capital and today, the we our million, to debt for and cash at about by turn million well as million, $XX payables, total back during call balance below remarks sheet, terms September, $XX reduced to noted, million improved trade formal also the debt operator In balance. end improved of $X our QX of for $XX Therefore, I'll end further Q&A. reduced while by you. sat our $X million cash the total for Thank the the

Operator

[Operator Instructions].

question Ihle The H.C. Wainwright. Heiko from first with comes

Heiko Ihle

see It's today. stock to nice your up X%

protocols So you through I plans. was at have, and hinted your and MD&A the some your COVID here that earlier Page you contingency today, X on hinted of you going

questions of much asset-by-asset on to that. how domain. you're out follow-up you elaborate Just I know on have your don't able public that plans and a willing Can on couple the in of contingency base?

Robert Henderson

Sure.

biggest our large Tucano, do that's site. think We is I flow contingency obviously of a at generator. stockpiles on biggest the number have cash

down. to We on-site there. have store our contractor continue generators. So got diesel inventories We've do reason, a we mining good if, able is whatever for are of processing

we while. think unable at a if is time Tucano I to quite were able last portion the of operate a So team a for to

And home there. sure our in coming risk We're supply a again, Obviously, at our biggest to exposed our testing at and employees very the off making plan on are vulnerable that have not So protocol and we we're sites. chains that's Mexico, contingency people mine. extensive keeping for tight.

I think, certainly, But are Brazilians wave the I do phase. running. the I to managed going kept in we just entering think fine. first are think Brazil, know, when you we So we second well the And as

didn't wave. Mexicans really I the think through gone the first they've The hit first wave.

for concern it for the time more me, obviously. experiencing Brazil. it's of first and of they're a So the But Brazilians, from learning a protocols the lot for in Mexico, probably,

Heiko Ihle

maybe spot, of perfect there? restarted I mine your areas enough. assume still Fair anything there makes But the plans provide to whole on sanitation, since have how changed the also what regards not these bit going That sense. too many the in -- you people Can of when in into? just in June color is a one is same. you're on Mexico you

Robert Henderson

essentially The have still plan. plans to the No. much the But practices sticking mine we've distancing, operating our mining, got same. to so which we're stayed areas Obviously, respect radically. changed we're in social the pretty

Heiko Ihle

NXX guys issues have buying was, lunacy expensive? even are -- were what started? your same mitigation knew the just more Makes this still that whole now? measures meaningful cost-wise, more correct, any since given sense. to masks your And you so other that that any perfect I token, In PPE, on I getting been people most obviously And don't prep Great. assuming it's you getting -- assume much any competitive has get stuff then changes before there words,

Robert Henderson

in issues fine that all be there. to seem we No, Yes. area. No

-- are stood we're are vulnerable down new think home. black we We've at I and have who do protocols. supervisors

workforce really responded we countries have in of for some don't to into has on we But well. generally, the teams could terms I and of we more weaknesses are from have costs, you think in certainly costs. liked quickly operate. Jim, think the currencies benefiting the in have issues the there. safety the to we full work that we as inefficiencies So currencies of the I effect maybe, the say our And we the complement are seeing bit on And workforce before can't a as translate would because

Operator

Joseph comes ROTH with The from Capital next Partners. Reagor question

Joseph Reagor

good a on Congrats quarter.

Robert Henderson

you. Thank

Joseph Reagor

form front, refinancing? you on debt guess, -- and timing? are So doing can are there is guys if you of you any terms thing What the first I on out along how comment on debt far seeing

Robert Henderson

to want that handle you Jim, one?

Jim Zadra

doing? we'd Tucano Sure. the terms resource refinancing, In and Joe, first. like update for out how are to of reserve you get

out like piece an I of ensure benefit get the the information think that's important that and to lenders we'd have knowing that. of

are take the information we for in further. the MR of a lenders, confidentiality So discussions of waiting of number with agreement, and discussions to provided sort we're we've completion under

there QX think good and on timing, So get were terms be part market, of interest probably interest to lenders. in if of XXXX. the to And more we good I seems in something, likely do the there of

Joseph Reagor

Okay.

Switching a bit gears good. on quite Sounds Tucano.

to Sometime tonnes run we of go then, mining expect up that close back it to is Should tonne to going tonne higher, Can And at number go to up grade lower? per but per a on any give little basis these next well? as right? there? year, us Is XXX,XXX aboveground quarter rate out a cost assume, that have. a you're per of I you color stockpiles you a little XXX,XXX go quarter. to And

Robert Henderson

Joe. Yes, sure,

handle just budgeting plans fixed We now. are in of who contractor the in much mine volume there normal process. what going We've But got is through pretty It's our mining a right yes. their they part trucks. can

rate. be So rate the that obviously max the running mining mining at we're going to

grade In terms they lower are stockpiles. of stockpiles,

need So process to. probably we when will them we only

So coming pits. preference hurry to we'd In leave ore deep run for we a them intend down. from in don't them higher-grade

still ongoing. include the planning think certainly it. would the -- the of all some is plan But stockpile, I but not mine process So mine yes,

can. guidance years next that as get not yet. we'll we're you we give in So to couple to a soon of as But the any for position

Joseph Reagor

at versus is Okay. this it Is expect sales like gold to gold reverse Fair like bit. gold Normally, a we quarter? In at And so, Topia, or your build and -- XX% your looks it an if in that down like maybe next then Topia, was quarter you're XX%. something, should XX%. enough. quite production it's inventory

Robert Henderson

one? handle that to want you Jim,

Jim Zadra

zinc our grade -- we're grade. depending the Topia fluctuate lead the production do of gold of And there's quarter-to-quarter in -- produce generally Joe, gold it from at silver. variability nominal. the is where silver fluctuate then It's pretty is quarter bulk and we on production gold a versus there Topia what at -- will It's of mining and terms will component.

Joseph Reagor

was an Because XXX. your build there and specifically, was But there? Okay. production sales inventory was your XXX,

XXX there's So ounce that lag a on there. concentrates? of gap or is that -- Is the maybe delivery

Jim Zadra

It's concentrates. the the timing of that most of the likely delivery

Operator

question next with Fitzgerald. The comes Matthew Instructions]. Cantor [Operator from O'Keefe

Matthew O'Keefe

Congrats on asked my a on analysts, questions a of already other good the exploration quarter. the was been Most bit I by side. wondering have but

good cash some generating You're here.

are already near programs some -- in you ongoing. maybe exploration short It as -- completed, good are in your -- some increase Your regional well, to term? an you've but a going your done just And near targets. completed increase we the we could your like you've programs term not are regional? see what's seems of well How near-mine next significant going as in for plan targets. effort And got are exploration a your -- to little the discuss

Robert Henderson

Matt. Sure. Thanks,

it's think of with be same. more going Mexico, I the to

year, in-mine this drilling we budgeted for Topia GMC. $X at So and million basically

in order that on Brazil focusing ounces confidence think I put we is regions. mine the just -- more Mexico. see the we continue of to the plan on In where in are So we'll to ahead

a had million near-mine and we budget it split and regional. was So year, this $X

to the to the continuing outlined. more on on get on We're going next think continue I We're detail be to year, underground, the going pit stuff. near-mine a Neil get to open resources. which bit going So definition more we're

to And I mine is get think the So that plans. hopefully, into regional then most importantly, region the steps.

year. we area diamond So extremely put in the Nick of number which a We've the Winer identified knows well. priority drill to targets, next holes high need

in to if same, next regional opportunities the those order the advance of little and to probably is year budget be bit going higher, not So there. some a

Matthew O'Keefe

have the detailed of plan to guidance the mine I you release an -- Is the And Are some this new you're you're impact your Okay. some work sort about mine end But a on going mid- plan. touched before do of doing know a -- there on sort what mine of that year. year of for this to going plan resource next you guidance? will year?

Robert Henderson

we early typically, annual year. mean, in guidance I the on Yes. the issue

be getting mine reserve Tucano the XXXX out will then our We will we details. have when budgets December, of so have And finalized. that guidance is in report life on the

next we that So guidance. be give that early will year

Operator

question Franklin Private a Investor. next The [ph], Aaron from comes

Unidentified Analyst

mine, just I'm about Mine. Coricancha the wondering the Peru

on guys time Do were were last year, it. You had do that going in were if saying have you purchased Peru to start guys you make a XXXX. decision you with frame, guys looking guys are And you to what guys the mine, going you this to any mine?

Robert Henderson

We Aaron. do. Thanks, Yes.

So care on are and currently we maintenance right now.

we're some up activities mine So material cleanup did, mining Used last in year, at And be. Nyrstar the it never should XXXX. mined got by where how grades long-haul looking the this they to there. -- the really best mill. method, was -- the those last through run it's year, to which some doing deposits, we're We

narrow by terrain So the the challenged mine that's vein. is

selective process looking mining there a more to we're get is challenge there. mill. the fill And so And to the

Certainly So much place fill the phase. are I can study but in an to prices, we'll secret interesting getting more then if it selectively, the crack of things silver enough with headings in looking a have there. And mill, we is higher more believe mining answer.

it's best in still looking progress, is way and restart the to we a work are those facilities. what think at I So

Unidentified Analyst

the to a the make if be Is restart -- did [indiscernible]. mine you What would cost restart guys decision on cost there what a this? to be the I -- would

Robert Henderson

into stopes. be mine the essentially the into would It access just -- getting

place, the we there amount do to of So the plant place. infrastructure be is But access. nominal is that in in rehabilitate to a work would need mining the

but some it's spend a initial mine, not capital. the would money development on significant of we have So to

Unidentified Analyst

rough is you $XX think, Or So of high? estimate? $XX million, too just kind that million? any do What

Robert Henderson

say wouldn't too previous And I Yes. the to that operators ore. Yes. in payable get there high. The that's challenge. challenge is failed

deposit. tricky it's So a

Unidentified Analyst

It sounds it. like

it's if with just will it? -- guys you decide got find it not if mine profitably. So guys the you to sell guys what to you Or continue guys you way -- to it

Robert Henderson

a have decision at to to going Yes. Yes. to we're can't to selling year. have Obviously, get next or ourselves, we'd it do else doing we that's with look it If even it. then someone

Operator

comes question a next Private Investor. George [ph], from The Troy

Unidentified Analyst

In with do real. swaps and wondering Okay. if And was also, second the currency a first the for quarter, in you sold Brazilian here real currency of some real the have you got I you working a you? bad against some swaps when dollar. beat up pretty the those trade full strengthened

Jim Zadra

Jim the in out a Brazilian Zadra. did of when some a QX dip. took those We settle of real bit It's

We internal have $XX don't notional We of -- we're have million are currently trader. we currency about an that to the hold. contracts continuing

work various function have do that treasury that other parties along treasury transactions. on with And we -- we person with have external We functions. manages a currency

Operator

the question-and-answer for closing This like to I the concludes presenters over to any would conference back the remarks. turn session.

Robert Henderson

QX we will everyone, look talk our to you quarter. continuing much, much. from operations, very Thank very make We you you in Thank attending for our the next money to to forward and call.

Operator

conference today's call. concludes This

participating, for and your disconnect lines. you Thank a pleasant day. You have may

GREAT PANTHER MINING (GPLDF) 6 Nov 202020 Q3 Earnings call transcript