GPL - Earnings call transcript Q1 2022 | 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 First Quarter 2022 Results Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now Leydier, turn Vice would to conference I Grant Fiona President, Instructions] like the to over [Operator Investor Relations. ahead. go Please

Fiona Grant Leydier

Thank I'm everyone. for Good Leydier. Operator. you participating Fiona Thank today. you, Grant morning,

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

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

call, refers costs. during all-in the reference, For AISC to sustaining

financial financial issued call and website SEDAR For today. greatpanther.com. today's webcast call, available and please statements available recorded and on conference refer call posted XXXX and news the have yesterday our results and will This to and on accompanying being accompanying conference and be slides which quarter the at website are information presentation MD&A, filed Replay on our will is been release this EDGAR. later be replay for first the

we Sandra morning, and this Hair, call Interim Alan CEO; the On Cornejo, Chief and Daycock, Chair Officer; Financial Officer. Chief have Fernando Operating

Alan Hair

and on U&M stripping North C TAP tandem production with state starting Urucum contractor good in steady pits a progress TAP thanks that Fiona successfully dialing in fronts challenging resource replacing made both and and have build improvements which mine see contractor today. light preparation in for To underground resources pit by mineral in an who everyone back mobilization MINAX, The to and X.X drilling as years. and you, depletion studies the in project focused reserves increase thank finalized. performance outlines the once Thank underground is for XXXX open an North to of been resource updated This the in end current of advanced another third AB, MRMR Tucano number you pit are mineral in and We underway navigated working of quarter just have through currently quarter. we completed. Tucano. the Mine, reported new has Tucano, to and the open at increasingly to estimate was will the we're of the be engineering reserve operating our We updated production updated mining Urucum the Gold

project Peru. some has We mined. potential in also results of the exploration reported Escondida confirm The the vein results encouraging development advanced which Coricancha from been never

We COVID are further not vaccination the continue were Safety the protocols Omicron adversely evaluating our search that progress. in to place advance options fortunate affect programs operations. We project. remain in QX did and to

per in for representative setbacks results Revenue the the per Our gold XX,XXX and quarter on gold are consolidated ASIC ounces. financial we $X,XXX of for G&A corporate sold consolidated cash $X,XXX new excluding quarter in XXXX. optimized where and for per ounce of the was mine plan production point were are costs four gold million following $XX.X a Consolidated was ounce sold. the Tucano equivalent

against to mine. of of the stripping from high of half because the expect coming first the costs ounces amount are year, the gold We this we're have of low doing in backdrop

discuss into operations. these to further details go in our results this the Cornejo, the ended production $XX.X of and second call. to increases will the cash of in million. financials Sandra equivalents cost I the We Fernando quarter in in cash half later over year. to now pass borrowing throughout flow normalize cash with and million $XX.X will it expect We COO and improve to from

Fernando Cornejo

everyone. Alan Thank good and morning, you,

ounces a marginal rehandle for mine quarter this decrease ton, grams Triggering XXXX the higher the TAP positively AB, in price in grade was grade higher to throughput the the first Focusing ton the The Gold consumption quarter due of fleet gram on higher in first QX Production Despite being stripping Urucum per in of the XX%, TAP XX%. for the and plant or and XXXX, to plant XX,XXX QX affected compared ongoing stockpiles quarter of ore. feed availability MINAX to Tucano. X.XX XXXX. ounces, stockpile. QX production. the in XXXX low with in per X.X to was C throughput to was compared by of production first North XX,XXX low plant resulted compared pits reconciliation

time, For in year. $XXX was MINAX geotechnical And effect on studies effectively. pushback for with expected Central the with of costs. in confidence to this commence pushback QX the of safely and the sold the track this will to QX this further production its the SRK the the resume assistance XXXX. in providing to This [indiscernible] to regards half completed was is $X,XXX contributed XXXX. pit to Consulting. of has South the the With and more done pushback In could and design mobilized Urucum be XXXX new, refined more AISC new is productivity. ounce a of mining efficient This per fleet studies XXXX. Tucano second in sold the cost compared fully to performance we contractor, have per work expected quarter, on have $X,XXX, And to locally the MINAX compared QX, sourced ore ounce cash in QX $X,XXX, over that are positive

our to Finally, that to contractor discussions with equipment resolve we outline in concerns currently are U&M availability. existing our

grams production total XXXX per XXXX. QX per Topia, grams the per primarily gold, and XX.X% are ton ton material XXX in QX to decreased producing production in at in with as in due per were silver were grams ton to recoveries lower ounces, the in of XXXX. of mines XX.X%, compared targeted X.XX while on XXXX. Silver milled to Metal ounces equivalent stockpiles, and XXX,XXX by in for for compared silver somewhat same with gold XX%, silver were XXX,XXX recoveries absence the X.XX compared rates XXX and was the lower grams XX% development. quarter Moving gold Average XXXX, ton the

Daycock, cash quarter, was the $XX.XX, compared per payable in XXXX. mine silver now while ounce QX $XX.XX and the the compared payable maximize QX to silver this CFO Guanajuato cost ounce the AISC the $XX.XX to asset. to call maintenance, For potential over to remains turn discuss And I assess on care the $XX.XX, of The per its were XXXX. in options financial Sandra company results. to will the our the

Sandra Daycock

million million, million, sales of consolidated Fernando. gold XXXX. XXXX. same $XX.X compared revenue XX,XXX Thank On operating the equivalent in in $XX.X for Consolidated QX ounces was you, quarter with compared million period earnings equivalent with $X.X XXXX. compared XX,XXX the QX ounces, of Mine were in $XX.X with gold

QX to per Our the price ounce realized ounce lower processing ounce excluding QX And sold XXXX. compared Cash sold in XX% in versus reduction with an ounce per ounce in of slightly $XXX QX average in XXXX. first with G&A, with $X,XXX realized ounce the decreased ore silver supplement mentioned. ore QX $X,XXX were $XX.XX gold quarter, cost volume $X,XXX the was sold, in ounce corporate QX our to Consolidated with per $X,XXX price Due in gold XXXX per in compared in for mine that and to gold marginal compared average XXXX. sold per from production sales QX $XX.XX lower stemming $X,XXX ounce for per grade gold XXXX, Fernando stockpiles XXXX. increase, gold AISC per

to US To starting to pressures initiatives are are the AISC the reduce a seeing inflationary potential up the our fixed versus represented dollar guidance strengthening that per The higher assessing costs. have end, contributed inflation $XXX of against $XXX XXXX per industry, the to improve across ounce in cost also we costs BRL efficiency we cost impact QX reviewing and approximately AISC. pressure operational XXXX, and Brazil As costs. on impact XXXX an further relative ounce in QX of approximately this and to are the

loss compared with was $X.X XXXX. ended from with million, in of loss QX was of quarter a with $XX.X million cash compared changes million, quarter negative $XX.X in We million million, the XXXX. XX, $X.X activities $XX.X with EBITDA negative the net $X.X flow and Cash million on year. Our was capital compared million, before And in last December $XX.X equivalents million net operating same QX XXXX of with compared and the period for working non-cash million $XX.X in cash in XXXX. $X.X EBITDA same

borrowing end facility. During XXXX, And borrowing totaled $XX.X $XX.X at QX -- issued QX with during of XXXX, the $X.X QX compared million, million million XXXX. proceeds shares for through addition the QX in of company in ATM XXXX the

the and million was refund into by in negative and including because we sizable $XX.X million $XX.X working net happy are inventory declined to Our of negative re-clasification only received receivable tax report. as in current assets, partially quarter assets capital $X.X of as refund current slightly cash in This April. very the million the to higher offset was balances, receivable declined change

expect the the to million, debt being XXXX the obligations we reclamation of established -- by increase capital $X.X trade to gap positive to meantime, due. due Thank record in operations operator loan the we million A evaluating its payables. to the as company have our bridge formal from That's back that of we latter repayment mentioned have you. cash $X.X increase million of exchange further take financing from are call current In remarks. turn earlier. big for and to that in production flows track and various and rate and current reclassed leases now to the refinancing $XX in and inflation increased I'll the for Further, all and an generate development $X.X expect for higher portion alternatives stemmed year. to in costs. half steady continued require come to liabilities million period. exploration obligations established the I However, repayments liabilities, we off The question-and-answer investment the state mining debt prior provisions

Operator

Thank you.

Please [Operator comes We H.C. the Our Instructions] question-and-answer Heiko will ahead. first question begin from of Ihle now session. Wainwright. go

Heiko Ihle

my for me Hi Can thanks you taking okay? hear there, questions.

Alan Hair

can. Yes, we

Heiko Ihle

next Difficulty] my So [Technical

Alan Hair

Sorry, up you're breaking now.

Operator

it has Instructions] disconnected. me, Pardon Heiko’s seems [Operator line

Fiona Grant Leydier

Heiko is working. line is Operator obviously disconnected.

Operator

I'll has hand over to Heiko disconnected. it Fiona.

Fiona Grant Leydier

email. Jake a Sekelsky of traveling Actually behalf He the through did at send on question but of via is AGP. moment, a question have

seen to We've consumables? you we Are and So here. to inflationary here, specifically and any answer pressures I'll can pose right taking board. the impact mitigate across the proactive that energy steps now related

Alan Hair

costs absolutely. Fernando doing review very I and little a thorough color? we're our contracts, maybe detailed more a current bit the Yes, get of mean, could

Fernando Cornejo

are all midsize contracts contracts our between and we with down going companies. we're breaking absolutely, contracts those into Yes, major renegotiations and

those and with team the moving those will But potentially in time. Brazil of point at ahead in this are imply Some negotiations. switching supplies Mexico

Operator

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

Alan Hair

Thank you, operator.

we in Sandra positive to flow of As generate our cash this year. from mentioned expect operations half second the

performance on required followed campaigns the We the will development managing and are North ramps engineering operational have by are end We'll underground shortly, studies prudently be up. focused of delivering of the our [indiscernible] back to as results drill from costs year. the Urucum which completion optimal by and for

As expectation the we the with today. you all next back stronger share for stated that year Thank of in building Tucano time half earlier, the your to with half you to of continuing progress We this look second is of into XXXX. forward a first XXXX quarter. steady-state our at

Operator

today's concludes conference call. This

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

GREAT PANTHER MINING (GPLDF) 13 May 222022 Q1 Earnings call transcript