GPL - Earnings call transcript Q4 2020 | GREAT PANTHER MINING Ltd

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Operator

Thank you for standing by. This is the conference operator. Welcome to Great Panther Mining's 2020 Year-End Financial Results Conference Call. [Operator Instructions]. I would now like to turn the conference over to Fiona Leydier, Vice President, Investor Relations. ahead. go Please

Fiona Leydier

Good for Operator. call I'm Leydier. Fiona Thank the morning, time you taking our to Thank you, everyone. participate today. in

making presentation. begin, we we note forward-looking be statements Before during please the will that

to may You should actual various during commentary those the conference everyone that reference, included at be non-GAAP sustaining be that to The all-in found measures, costs. like Detailed in presentation. refers reconciliations the the differ that end future To today's are presentation. remind in associated AISC results statements noted the also can otherwise from call, and December this cautionary cautioned of refers events would to I in statements be definitions XX, period on recorded XXXX. this call MD&A greatpanther.com. presentation amounts this dollar website accompanying noted. available replay company's being are presentation and and available later conference the information MD&A ended expressed is and be today. our financial the will unless and in for for Replay All dollars, call slides and the U.S. at and webcast will

Officer. Officer; On Jim and CEO; Operating this Henderson, Zadra, Rob President the Hepworth, Chief Chief morning, call Neil we have Financial and

Robert Henderson

by producer Thank gold was continues. you, in a We've as COVID-XX Panther thank a substantial the for growth Great pandemic. intermediate today. everyone, met a environment dialing Fiona. And you, XXXX for of into on brought year our diversified challenging transition

did on and increased over delivering pleased operational results. produced just ounces total to We by team that than XXX,XXX in equivalent gold of was adapt financial over XXXX in $XXX record XXXX ounces. in I'm Our improvements more equivalent and efficiently, XXXX, to million XX% report and we significant production able to revenue quickly gold ultimately XXXX

noncash before million share. a earnings or operating $XXX.X was $X.XX items mine Our

flow and activities or million came share. adjusted a million EBITDA $XX at from $X.XX Our cash operating in $XX was

XX% and $X,XXX when improved down ounce. a AISC, compared to excluding gold consolidated at by cost of G&A, XXXX per costs Our came

resources. the delivered We also another we cash operational XXXX, delivered XX% life, million $XX on well successfully and replaced mineral in cash resource future in increases the working an higher and in reported increase the of and equivalents, there year GMC mineral planning. measured confidence depletion while Since $XX category, updated inferred pit ended strengthening added building in steadily At of as our mine of Mexico, in doubled we position. indicated for cash with was been open year mine and deposit mine grades. reserves estimate At Tucano, resources and level our of in in and the November mineral our acquisition our the We as Tucano we've million. capital and

a to saw the sheet, testament position. pleased our strong incredibly out in also decrease such to I'm to placing the debt, work company shareholders. close hard a in value for team executed robust deliver by year balance a being our the with We meaningful financial a

further a at see with aggressive XXXX, huge And so Tucano. XX,XXX into of tapping of meters this total the we'll exploration the planned year, see potential million efforts, known building our define resources, an on of we $XX success our ramp-up while to and

and stripping to of XX% of that to this us. the gold half ounces, be second gold Building come first on in year note mines gold least guidance. AISC open And annual view in key inroads sold. to the be our objectives to now land XXX,XXX between a of key GMC pit to year will meaningful costs to over will for the Neil to Mexico make into Topia most key the and at the be turn higher prove half. equivalent higher from levels Tucano's more per in with consolidated and extending and expected Operating detail. in the regional focus lower expansive Hepworth, underground XXXX, continue extend it probably ounce success to up Our will be a $X,XXX Tucano with I targets operations equivalent first zones the guidance life, $X,XXX production XXXX package. production In in exploration for will this than the to the XXXX importantly, expected Officer, due is our production to expected mine further high-grade our XXX,XXX Chief half in account discuss also Tucano,

Neil Hepworth

Panther to for comparative improvement which XX% per various XXXX. is XXXX year to the assets. the that the from for the be the beetle At aimed could which are an Urucum Please real. of total also continue XXXX, over work still Great managed the by were Thank the drilling the recorded XXXX XXX,XXX acquisition. and in the AISC presented This a East, XXXX the geometry to mining gold mining indicated in Knight results will during to you, Brazilian Piésold wholly-owned At expanding Kilometer in confirmed. over South, is pit also and sorry, XX% saw for Knight producing high-grade by in Central March $X,XXX related is year, regional ounces. now improvement ore our progress open in west Urucum TAP gold XXXX Tucano, by for trend. the January replacing west for of in Okay. Rob. that in part The December movement from weakening be at ounce, producing walls controlled. in the in at up high provided XX% I the note X primarily provide work additional be production with There productivities the an in data At at areas mined X, came the to asset wall. throughput up program. the material Tucano, period times. the resources levels open that XX%. to with reserves. the aimed also and Torres due this and was we've overview and XXXX, mainly of Tucano is Tucano conditions mined modeled will Tucano level that below following our -- owned increasing plant near-mine for owned the over near-mine phreatic are surface ultimate pit just period by XX, phreatic The is aggressive we pit needs phreatic done Note Piésold drilling an The under stable exploration expanding at was reserves program the underground pit Brazil, oxidized that C indicated

very drilling program validate X Zone extent a the pit. there's Underground, of the and to below dimensions North focused Urucum For North high-grade Urucum

X,XXX will X,XXX of meters first zone, The holes looking meters in at extension. with upland the the the second upper be

to high-grade they're of So the merits zone. going from south of in bringing the the evaluate decline the plunge following the

silver Turning to mines. Mexican our

were grams non-areas X.X approximately XXX of Nino Ignacio year grams Zadra, program, Guanajuato, grades infilling XXX the grade the comprised XXXX of ounces this over above that to In of further of silver XXXX while federally X,XXX community. impact prevented Valenciana budgets disruptions workforce in At GMC, exploration Firstly, level back ounces, the tonne. silver. I'll Guanajuato, end Purisima XXXX in mandated of exploration for is were start the mandated the updated meters measure gold, the The and and XXXX discuss process also our vein, a we and added shutdowns was a reflecting more to was Constantia the a and X.X approximately level silver normal. February as make level. are a payable at Carta system. Escondida, visa Panther's also per XXX of a surface mineral proposed expanding of federally the drilling implemented tonne, GMC, resources resources reflects Wellington community. inferred X, between Average tonne, These financial all in Topia silver tonne ounce, silver by silver to disruptions at us Initial and budgets Pozos these in shutdowns to vein it of XXX,XXX payable getting silver, of mining final X meters Santo ounce commenced grams million nearly at which Peru, This impact X,XXX above this and Mexico. XX% in order drill subject silver X,XXX AISC an a XX%, of July $XX.XX the were with on million reflecting Purisima drilling been CFO, program the the and of must XXX At Mexico. in voluntary and drill with plus with a a grams in COVID-XX-related equivalent ounces, silver The silver Coricancha, exploration easily XX,XXX has to increased we're up this grade in per production recoveries in now In XX% meters and to came grades tonne. gold, Great of program drills AISC production QX translates and in existing again expecting for and discussions XXX for The the than to lead to gold. targets equivalent and resource drilling include Topia. X turn of and drilling in targets The measured at protect QX the in announced the delay. Jim All commenced and Topia, of the of X.XX grades of is in per XXXX areas COVID grams finalize operations indicated high-grade the ounces was COVID-XX-related the XXXX permits quarter program is call Los for silver veins. of and equivalent gold this on for an $XX.XX of equivalent and full XXX at suspension doubled. vein to set we silver should our for mid-June. May, XXXX. But results. San weeks was At most COVID-XX over and of local April XXX X increase byproducts the mid-January accessible now November,

Jim Zadra

higher per $XX.XX Mexican sales $XX.X our and were teams, the XX% I'm AISC pleased prices, Revenue Neil, of financial costs for the the in and These and G&A, respectively. to primarily reduction by full XX% gold dollar, you, relative million, that everyone. and also execution payable to and million, to increased Overall, in higher the gold with silver protocols realized and a including that consolidated results significant XXXX. COVID-XX-related ounce for to gold Brazilian weakening impact strong board. and result percent and increased operating which the together $XX.XX, production Thank by represent strong across and operating and gold health noted and production peso due note at operating I to during Tucano report silver. those U.S. silver decreased gold and prices, impacts thanks Mexico, real maintenance improvements our costs by costs our $XX.XX led suspensions $XX.X to AISC, operations. welcome, at productivity in safety the of leading reflects of care as the higher suspensions excluding for

changes and As that XXXX price noncash a the year. adjusted operational and items, improvement After each saw rates of $XX.X which XXXX, environment the million, earnings to strong The noncash or per $XX $XXX a operating substantial and in was and exploration exchange up last to AISC expenditures, any foreign mentioned or $XXX.X favorable charges, wound Operating month, net Cash or from costs translation after hedges, share substantially flow million time. non-capitalized over before operating noncash improvement flow represented the on in $XX were EBITDA charges, for and QX million earlier, for at and $X.XX depletion the in was cash accounting accounting were compared up -- million foreign unhedged and earnings greater [indiscernible] noncash improvements. XXXX. activities share we at amortization were outflows for reflecting for were in solid million working same exchange for million losses capital foreign million which modest leaving metal operating when increased accounting interest prior an period exchange in came and $XX.X currencies current to per XX%. after income breakeven saw line to $XX and settlement mine development decrease compared even us year and XXXX. a $X.XX

on will bolster maintain $XX position with evolve to the of in a cash net free million opportunities, in acquisitions, strong with including capital cash our as capital diversified and for a leverage XXXX. quarter. into for we it to producer deleveraging We -- ended $X.X building and balance ability year million working footing flow Our was strengthening and cash Americas. as a going for sheet leading net formal It's a order now on cash focus growth XXXX, In to $XX.X the continue million our you, potential session. and back we have of the -- the working to in million Q&A the significant metals of we focused down financial the fourth solid I'll year We paid position a Thank that's $XX turn all precious the debt operator remarks, and to million. $XX again. QX, on

Operator

[Operator Instructions].

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

Heiko Ihle

not similar But the not we mean, much guidance due like your of just it higher it's completely in stripping right? it stated I can should in year, second a outlook Your confirm, of have the breakdown. year. in just Mexico to because doing more the to has of the quarter-over-quarter see production Brazil. see mostly didn't looks half anywhere, -- Mexico that's I for XX% you trend rather, line But a

Robert Henderson

That's correct, Heiko.

see all Our They're swings to operations. are we not pits. subject producers steady. underground the They're very open that Mexican in

the is into at stripping Tucano, our half year year. the first yes, entirely the to weak of of due requirements and the get the in we ore higher-grade second So half

Heiko Ihle

what That's figured... I

Robert Henderson

Sorry?

Heiko Ihle

seeing we're to us you not that of for ringing anything want different a What then are figured. questions? you continued question. company, let to? in to in That's your that you to gold you anything that multiple higher like people up, any privy more seeing I completely, to regards wanted changes transition asking thinking are in I you becoming multiples? maybe Or adjustments clarify. what investor are base, your trading With just know? completely Are And

Robert Henderson

think don't I No, so.

who've our I got always in been think Mexico. supporters mix a big we've healthy position of retail silver of investors strong

We few not we're institutional have has what were and the thanks getting different getting stayed any year. investors, more last mix consistent, a Tucano, to to pretty messages we but

pretty So investor with our I'm base. happy

Operator

from next Partners. Global Jake The Alliance Sekelsky with question comes

Jacob Sekelsky

just half to some higher basis if mentioned first quantify handle year. costs how trying to At year. you're just see quarter-over-quarter I'm a look on Tucano, on the you able expecting stripping all. you're get AISC wondering in this throughout to of I'm this quarterly the at might a

Robert Henderson

in and low. that guidance. Jim, I got a will going I color do between you quarters don't it's given there have will significant on don't flavors be and and just think third bit QX fourth. But But there? improvements we've I difference any generally, the you any typically Jim, think, second -- And be the be first to any think QX. there's that?

Jim Zadra

XX% say that the year. of in Sure. stripping were to half would I the full Jake, the costs probably first XX%

Jacob Sekelsky

wondering of to higher of more just I'm you're Is then level AISC just for investment year that at housekeeping the make related the providing what And I aren't costs? helpful. there. That's you guidance a is noticed to expecting that. this more sustaining a in item Okay. Mexico. reason

Robert Henderson

Jim, can that you one? take

Jim Zadra

Sure.

our the of I -- the representing And Tucano see terms of the with think it's the AISC do from really from really, Mexico of see it's of guidance our is production. that driving can consolidated force Tucano's equivalent more day. you to in at And you if the the the can end XX% AISC AISC.

gold So basis. to the at level Mexico we're on expecting really same be a equivalent

Operator

next from O'Keefe Matthew with The comes Fitzgerald. Cantor question

Matthew O'Keefe

year Nice for you.

would potential expect how you missed progressing? it, I questions. of couple at apologize already. there? work update is quick the an if that we addressed Tucano, towards And an this may underground I But a when Just defining have

Robert Henderson

Thanks, question. Matt. Good

got to just look ore looking But for the pit. to the Urucum kind at the We've the years. put of of we've number it on underground. back So at shelf extension beneath body a is North the plan

mined and should we So ironstone year. information. half the next out pit, banded pits it's of Urucum extends well in the the have below a second It

just meters of a couple would time start a could into open we ore looking hundred that be the a which at pit. body, decline is So the that the below down putting

underground right of extensions the best best drilling the how doing together what deposit. the a where So pulling looking zone portal to locate to body, and we're ore now, is high-grade study as for that and mine to

starting and drilling So to in look we're again, we're starting at to studies the of capital decision second support year. half a next

Matthew O'Keefe

Okay.

I see understand correctly... would we So XXXX? If that numbers on in economic

Robert Henderson

That's correct. That's Yes. correct.

Matthew O'Keefe

Okay.

I exploration? that's look flow budget the the exploration know the exploration. -- a an And in update for on [indiscernible], update well, like the Good. is the always what been the to you increased story What's and just provided Tucano Good. that's part -- big at a of Because good news last front, was there. and got part in since you me you January, exploration Okay. of a the had big great interest

Robert Henderson

Sure.

last infill is don't that So mainly they're We typically know year release we infill drill already. because confirming just there was what results drilling.

was of year are on little of a because region. last nature slow drill them. we bit the year, drilling This infilling results So the the

we're looking deposits. brand-new for So

So exactly target, we of to are it's hard geologists drilling I going to be information predict sure enough them regional are to suspect a now. have but the when

are could underground So we The extend any it's looking body. be infill of to news the again, the -- but are regional day. the release we nature,

nature. $X of mainly budget and the next out an is the much they're the drilling on infill I midyear. some ore reserves, in pit So getting underground pits, about will of doing $X we're million will open year And the body. that probably of again, That -- the we confirm our looking million at budget at of infill news the think pretty be releases extent looking

huge going a be around not release So that. news to it's

hit the going And news. we and that regional is So big the onwards. be deposits, midyear and underground in will summary, be to if when probably

Operator

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

Joseph Reagor

Rob and the congrats on team, to strong finish a good, year.

Robert Henderson

Joe. you, Thank

Joseph Reagor

kind of first last little following the bit a on of So thing, question. caller's

as With individual of you or the the that go guys especially achieve set you updates threshold to to holes would forward release of like so? quarterly non-infill this or certain is exploration, drill kind doing a instead there year, need small

Robert Henderson

we mean, we some one X, material. hole X we then good that drill handful, be release. results, a wouldn't considered press releasing be a interesting I just But if got if that's typically, with a certainly would question. Yes, or hit a

-- I got a threshold, science material, hard numbers of market. are we've So set but we release think it would there's about is to once we a the no that feel that

Joseph Reagor

an Okay. you success had your being to if time And add plan? with one from the think Or that? to just have like to areas what's to regional Would able you'd added? start current get the permitting where be line it mine something do any mine the amendment life? What's drilling, it like? to climate to the you square How there guys are about

Robert Henderson

Good Sure. question. Yes.

truckable you a bit in looking opportunities give mill. tenements more are Joe are environment can our on Brazil? But the that in maybe, at permitting the We and Neil, flavor to are

Neil Hepworth

Yes.

soon interesting the a it. as a got we even results, sort give some start hitting permitting as defined, a to think start we'll of I on of before head little process start bit a we've resource us proper actually

sort the of areas Okay. of in other in as places This would well. couple and of Mutum be Amarela Lona and in a the

anticipating fast it and are but of we'll take starting go years, possible as a as where so will it try couple yes, things to by much right. track So still

Joseph Reagor

Fair gears, all-in so quarter-over-quarter? force driving why sustaining switching number or jumped were GMC costs some much behind elevated. it specific allocation some capital Okay. unique there Was quite enough. even QX And

Robert Henderson

underground GMC of the for I of Yes. level get affected shifts to an We Of reduce most safe we mines, think COVID. all mine. had that production. required by was supervision one because just was couldn't the It's the

QX So a in GMC's unit result, production was quite and the went badly up. hit as cost

over shifts we're GMC. So back We're I at think those now. at issues X

to a mining. efficient was function just do So manpower it of as insufficient mainly just

Joseph Reagor

markets climate the the maybe potentially America Like, changed last And the M&A both final or Okay. middle either assets? like on off older one since Brazil in Mexican acquiring at selling comments Any or summer? what potentially all the has thing. South of

Robert Henderson

that mean, climate. M&A I the interesting an Yes. question is on

exploration I from doing think it's down things that. still we bit. But range. is to XXX,XXX-ounce-plus side, keen slowing our -- COVID are And producing the get definitely into of one a way is

way and other The is mergers acquisitions.

in magic with discussions small So U.S. other that XXX,XXX the and would Brazil us help get we in are producers Mexico, actively ounce above level.

M&A certainly is for a much focus still So very us.

Operator

a [ph], The next question comes from Private Spencer Lemann Investor.

Unidentified Analyst

Yes.

the that. future maybe I'm you at of With mentioned fellows as become or that, on of bit other than silver your part your a your silver commercial some to so have as you up little as can silver you ramp a where with even a versus elaborate holding if all the about question the Bottom more could on focus price One and Mexican just And line, and flexibility mix. far the more as being can you and wondering this much exploration better wag do mine where gold mines far can that due price? the -- dog? company silver gold

Robert Henderson

believe our assets running exactly the when same we Certainly, as the can. I it X years ones are company. was had Bob the ago Mexican

well last some our spectacular Turkey there. results high. silver is assets So pretty year Mexican price had do when And

the know, had lot you certainly at you success high-grade drill narrow a year. only vein, can operations, GMC, last But as exploration, from of Our underground underground. we them

is So because, at good rate again, or which really we of The million X over added limited GMC. for ounces, it's mining is XX production X underground. years

So increased the production tonnage. was could increase way we only silver by

much love from would to It's delays. liked due success we're year last which we higher an think COVID-related the Topia of a to GMC much But at year. So significant like last working as do GMC. than as permit point exploration lot. saw turning didn't have now We're we Topia, on our get view, we attention But grade I that.

our tonnage money margins. we're the at and on silver to drilling on focusing exploration to necessary We and we But like is bottom are our silver, line, can in our spending there. we working Mexico. So contributing Topia at increase mills how

Operator

Aaron with from The comes Instructions]. next [Operator question Investors Group. Franklin

Aaron Franklin

get on the I've some or mine got of in of you to Peru, type reopening we as to decision forward Peru mine going a with go either joint guys venture Are are time? going couple how questions. a a the or on

Robert Henderson

for Yes. -- as outlined, have What do Coricancha. program Neil drill we a

get Yes. hoping -- in to there yes. we're So

we drill are planning results get to to midyear. Coricancha So those out

So regulators that dealing help We're Peru been year with will And you in decision. the the make pretty the Peru. political of in in also terms climate. a has tough

are changes in So we seeing the ministries there.

So getting decision. a decision on is to help a the legacy also tailings going there us make

So placed to the going a be we're to on better in the make half restart of call year probably a there. second

Aaron Franklin

make Starting to undervalued it of the shares, are because you your Okay. cash some and that just amount purchase in comparison to the the type with would -- not seems here a it's market? the guys of at of it gold program holding, bit look little with sense to rest

Robert Henderson

still quite carefully. there's a capital is allocation Yes. at not do and I question, third talk There that COVID But we a think is look That hesitation over. of wave. good is

So buffer position we But cash any in, the our now. got. certainly confidence order in COVID-related, to I think right quite we're we've other a way with in cash don't like deploy in

as on add exploration we're the So best value. just to way focusing

Aaron Franklin

Okay. dam tailing is in And the last question Mexico.

you issues. I you're what guys, with guys you -- your having GMC, it's know it's that some I Topia? were missed options? authority, the think I -- permitting to didn't able Mexican if no, Or to

Robert Henderson

yet. Not

well. in a can still that on bit COVID-related Aaron maybe So delays Mexico? -- give to more as you we're the Neil, are status there color

Neil Hepworth

thinking had at in happened still The to Topia to seem basically year fairly back terms we for We're Cata resolved stability that Conagra which of But waiting on the to for TSF yet. last Yes. That's get it's keep GMC. it us. imminent. we hasn't issues, TSF, now. We problems [ph] yes, have

standing So a capacity. -- Topia, pretty pretty tailings in good in good with our we're we're

Aaron Franklin

Would issue? question. the and an you would able guys here's your was ore there if divert Topia to GMC, to other Okay. -- you able be be facility a to

Robert Henderson

No...

Neil Hepworth

basically. far, No. It's just too

to but in going for Sorry. I was now, toll other area milling. alternatives say, the

So it's did changes, have -- issues. if capacity we

Operator

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

Robert Henderson

you, operator. Thank

company banner year pandemic. particularly was CEO Panther. and see XXXX the none in the a I've been stayed given focused in us our the profitable This in will So year X growth this during I'm team a which year as joined of pleased for what's months, has is be for during to to our a on COVID-XX having as incredibly for to challenging April excited great forget. Tucano. achieving how seat And XXXX, turn we this and ahead, Great attention the see potential, a year, we that And we year I'm as unlock which plan at a will for exploration, assets, safe

tenement. And a excitement. share a by world-class outside X-kilometer a drill have our I package district, XX see there We that geologist's our approximately mine in Greenstone land to kilometers XX kilometers, really bit yet has

quarter. So Great of here in progress for behalf thank sharing our with next you Panther, And participation the to in on today. I you everyone forward your look

Operator

conference call. This concludes today's

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

GREAT PANTHER MINING (GPLDF) 4 Mar 212020 Q4 Earnings call transcript