GPL - Earnings call transcript Q2 2022 | Great Panther Mining Limited

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Great Panther Mining’s Second 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 everyone. morning, and for operator, today. Thank participating you, you good

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

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

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

continuing to we our conference operations as during accompanying will only, call, for results greatpanther.com. assets recorded will is financial on call statements the with associated release SEDAR relates accompanying at slides sale and and today's note Mexican and information operations and conference from the this Replay the Please MD&A, subsidiary, yesterday Mexican available our be website sale. assets have presentation the and which Tucano its and following X, of have results news announcement Gold be on For MMR refer discussing been quarter the This call on please IFRS that call, the our and financial issued being will are the company's available to Therefore, for today. held which EDGAR. posted replay in and the later website all filed XXXX accordance classified of with webcast been be Mine results second

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

Operator

you're I think muted. Alan,

Alan Hair

on today. myself you, you, for thank everyone, put Fiona, on dialing Thank mute. in Thanks. and was I Sorry,

on in mine and transformative Mining sell was Mexico. This of with for mine Guanajuato years reached the Topia agreement numerous the company there had mines, results. quarter the were Both originally provided the complex assets to and founded Panther solid silver Great the was

the we creation With focus can where most in its results. these sources -- as see long-term is so Tucano company the end, ever, for at primarily sale stakeholders. the shown now on the this quarter's as company we value focuses seeing of that potential Tucano, To are this and progress these assets,

significant We're up During and we the improving the amount material production a quarter, in rate Tucano ramp levels of be position mine production quarter. second back fourth to by the starting TAP a to and the AB of regular year. to the saw of from the to for pit moved of half expected

resource project the fourth complete the underground the quarter. report for updated underground, next studies advance, We quarter. expect to for estimate North continue the an by we to and permitting, Regarding to underground the hope assets Urucum most have

many with than impact inflationary in the of for As anticipated industry, seeing the are significantly more our headwinds year. operations cost we

which cost had will call. later detail For the we to adjust reason, have in guidance, XXXX that our Sandra

per gold spending $X,XXX and best an cash possible. to ounce XX,XXX of cost on and expenditures liquidity, $X,XXX G&A programs the ounce led capital corporate ways costs capital of gold necessary excluding deferring for gold Revenue Inflation manage improving to per ASIC look sold. We where ounces. sold, ounce of continue $XX our was for to production on quarter taking million for actions

to position Tucano we in heavy return stripping stated, previously expect steady-state first to costs of the the high As second due half. in required production to XXXX half the have

the second ended We and cash and cash further now of call. detail with $XX.X half to from of Sandra pass call million. Fernando operations. increases into Cornejo, later the into and results to expect improve costs in equivalents production go I our normalize COO, these We year to XXXX. in will discuss results $XX.X and flow as will to quarter the borrowings the on cash million over the throughout financial

Fernando Cornejo

Thank second was expectations. with morning, line the Tucano quarter and Production you, during in from good Alan, everyone.

the of mine decrease the The months. XXXX, Asset a for XXXX, process moving lenses improvements compared quarter XXXX, better QX versus and was half the ounces XX% ton compared quarter several also are conditions an XX,XXX When XX% were ton and to also QX to results tons with for X.XX or same a year, compared therefore, production of tonnage XXX,XXX ounces continues quarter, to Gold quarter, at with last of this per the increase per second first tonnage which compared per an QX last were this result with in year X.XX grade second rate and X.XX accessing feed line quarter XX% XXXX, the increase XX%. processed our XX% U&M is of for QX by first see two to in XXXX preparation was their XX%. in grades ore QX and year. in main the stripping ounces XXXX, XXXX. This volumes decrease XXX,XXX normalized of higher during Total production. operating of Tucano this mine for grams grams tons of is quarter in to plant an return in in contractors, quarter, ore this XX% XX,XXX the stripping grams gold to increase. quarter of pits. a to of and in the looking XXXX. of a XXX,XXX MINAX grade plan production Mine XX% of to different throughout for starting mining in XX,XXX next of lower mining in into tons is the ratios operational quarter increased A ore a of higher and total modest we of compared and in having the in the increase parallel QX the compared ton

all had in on used impact has and Alan key significant others. As services and business, consumables inflation our diesel, cyanide including mentioned, a

the with the levels in In spending additional year, moments gold of corporate ASIC led mostly than in rainfall well sold, than were compared as levels G&A And to fast facility, capital Tucano and first higher Brazil, in capital ounce in sold XXXX. $X,XXX expenditures facilities. explained of the a manage for anticipated cost addition, it per higher the to excluding and higher per tailings expansion Northern $X,XXX the to quarter Cash particularly QX installation ago. ounce was in stripping These the was track as tailings cost our necessary increase to few $X,XXX an of to water items due due this a to normal operators quarter. levels two led

the to engineering parallel, and quarter underground has for During Regional trade-off are resource to underway. project and Urucum as arise. the of Thank in has is track and completion the development the GoldSpot Portable activities contracted our with SEMA, X,XXX in project results in was meter in discuss permitting drills the Brazil. early project target reserves study. expected and they estimate an and parallel will started currently started June developed a evaluate consultation the being work, in updated are is conversion and the new over of report drill metallurgical definition, be to in in continuing of studies project agency, for state The Daycock At you August. with while is including August prioritization this underway land detail. optimize fourth completed company planning I GoldSpot environmental are the by to developments also being in quarter, pass year. are call now mineral resources on in program project to completed validation we team resource currently update upon Coricancha, the process expected began In begin by is results options more methods mining Sandra North program development financial our with X,XXX to to discoveries. will the This

Sandra Daycock

The $X.X a the loss price in compared gold million. per Revenue per versus period the last $XX million compared QX [ph] ounces year, our XXXX. was Fernando. And ounce quarter average realized $XX million ounce same in of XX,XXX compared $X.X of mine million, with with last was with income you, year. gold $X,XXX $X,XXX Thank quarter operating the same ounces XX,XXX for in was sales on

of QX Further, end compared net in in in million in $XX.X XX, and stripping, cash $X.X in quarter, million million million was for change and negative negative with loss significant in EBITDA with $XX.X in quarter million QX equivalents exploration. with from $XX.X including cash borrowings million compared Net ended $X.X negative capital and at million, million in made Our last was June the same XXXX, compared second XXXX. was a $XX.X compared $X negative XXXX. in of XXXX operating on the period we the million million in capital repaid same investments million quarter a million We and the XXXX. million loss non-cash the $X.X business $XX.X in basis the of cash $XX year. flows investments with million $X.X with totaling $X.X net We $X.X activities with net QX on debt working before $X.X

issued the facility. addition, $X for proceeds through company million QX, shares ATM In the during of

Mine. indemnity rights Finally, to cash in Nyrstar Nyrstar's in proceeds we their from the including Coricancha $XX agreement relation connection start in with million in settlement received a obligations, and

from ASIC well within Tucano necessary corporate Fernando $X,XXX $X,XXX been to between to Cash a the of in guided As $X,XXX we have mentioned excluding range investments, reflects $X,XXX of Alan will cost Fernando gold revised sold cost G&A, costs. operations must production mentioned cash and exploration for earlier the The out prior XXXX, of development from costs $X,XXX XXXX expects obligations gold guidance from on per previously adjusted. mining capital in both gold per company sold. previously, of Tucano been ounce XX,XXX to $X,XXX Tucano positive which an range sold, forecast revised generate to ounce as ounce remains to per $X,XXX sold. gold XXX,XXX ASIC, expenditures, difference and reduction year that significant determined a to flows its capital repayment have has and yield facilities. range and The in out be the stripping, investments of range ounces. to cash debt to a as to $X,XXX

planned will for financing be improve to meet schedule programs and set working repayment required operating mines fund capital, and investment further capital However, exploration obligations.

new longer-term all the to will turn call our options secure the sources evaluating formal for operator allow back to of to the us question-and-answer period. to That's for I are capital objectives. remarks. now you. have Thank achieve We we

Operator

[Operator the Please Wainwright. begin H.C. now We'll with Ihle Heiko first Instructions] you. go from question-and-answer session. is Our Thank ahead. question

Heiko Ihle

for doing well. Thanks there. Hi, Hope taking is everyone questions. my

expect July “return obviously maybe production that you of setting July normalized Going you a that, a through your half” month-to-month second this that give August. rate the no a bit out over. can after sentence of there was color assume, here? to went and given just now reg Can you in mean issues there done, release, overview? was I provide I a there bit in in you July of is we're how little put maybe a given is public just there's of

Alan Hair

Heiko. Hi,

fair that, by to it's kept we've think guidance I our fact unchanged. the say

second I out, our mentioned – we come of year. the production of that can think the half in you also work two-thirds but the will

up through a steady then QX of would seeing Hopefully, I helps. that and ramp a characterize progressive we're state. kind as So QX

Heiko Ihle

fair. That's

Okay.

anything talking you like moving started parts a important things a are but you're site the bit, that, or of just costs. little as trouble up mean, that moving maybe regard? up like on talking on Are of tend long at you this just ends Just is having even everything that random little little everyone's though open there any -- site? are you just we're it comes? you components mind worse seeing specific that. up up. to And bit that's to show that in I get from getting call the it's building mean, But Is you just is about newspaper, on starting I a pay are anything there show Alan, random spare and odds seems it any topic on develop inflation. getting not that bottlenecks all It to seems all as to or like hard higher need? a

Alan Hair

some parts certain mobilizing. mining the around were issues contractor associated There with

slippage maybe Fernando any it's set, supply that can bucket have like think color? dates like of the was much I are in also we're mobilizing teeth month. top things just of a if because that delays, don't delays about process, of but part some know measly that, on I think things not delivery been those some additional and equipment mobilization add now. of a but There really I

Fernando Cornejo

I the terms stock is has terms in have in structured. chain delays. But we Tucano key just the Yeah. are the mobilization been a that any parts supply well contractor mean seen is operation components we in process. Tucano, consumables in in delays the the of years with of has haven't many part of operating consolidated mine experienced quite

no production a issues specifically delivery perspective, those supplies. yeah, from on of So

Heiko Ihle

That's encouraging everyone's get to Thank hear. time. I to queue. appreciate back I'll you.

Operator

The next Partners. Global from Alliance go Jake is question Sekelsky with ahead. Please

Jake Sekelsky

for questions. Thanks my Hey, taking guys.

sense achievable. So sort is might year? but trying a what is I'm where of settle state later think mean, what once $X,XXX the to saw you longer XXXX term in get ASIC bit, just I'm a so, this I ounce on or a get in on like costs Sandra of this reached trying to touched do thinking there? just steady is handle we of an

Alan Hair

we've the you can Well, see ranges to. guided that

should for what know I big balance a you of very it that significantly component you A the saw So And our fueled, Victory the increased don't of Brazil. $XX. price today has give the if are oil I increase been below year. in cost feel mean, that expectations the for

quite So from recent come off significantly obviously, it's high. its

hard might, we're right had uncertain But hoping mean cost obviously some that in year. a bear we areas, to this I world very tell. place increases mitigation the that -- see some is it's of now. So significant these some of we've to very

it's really the year for the to just the So balance future, we projected of guidance. and that look into far and this hard revised

Jake Sekelsky

Fair enough.

plans plan, XXXX? the that of development work to North deferred later potentially then had I half just has to And Okay. the on or underground. Urucum still originally, know there year. start Is guys this you first been that

Alan Hair

should an really given first on simple existing the thing operations, The We within it's haven't get the what have be permit be. to had think understanding confirmed. time permitting should that taken we is line we but relatively that

may timing the the been hands exact have we're case. optimization our being the engineering That doing obviously, So, and moved in said, still any work.

to we to a we've capital address likely And rainfall what apply year to churns. underway. had obviously that's a some capital world of especially city done actually companies alter this part that the had plans may year and of new the this higher think early have at the had be is also balance high the rainfall number So reported And the going accordingly, normal. our is we unusually way

So, stand the I commit dollars. think we have see how where project the we'll just ability permitting the progresses our and from fund before to we to

something So forward construction move next certainly, it wouldn't that but year. we'd year, commencing would be to able hopefully, this anticipate be

Jake Sekelsky

sense. That's Makes me. for again. all Thanks

Alan Hair

Thank you.

Operator

Partners. from is Joseph with Please The ROTH next go Capital question Reagor ahead.

Joseph Reagor

you for Hey, kill is XXXX? asked. it that announced, or I guys already touch late Thanks Obviously fish fine questions. related stuff been guess, guys. XXXX to taking has on early the But the update want the on any the to I

Alan Hair

that. update no on been there's No,

Joseph Reagor

guess asset on [ph]. settlement an looking indication guys And this -- accountabiity well? the then, to be all as sell might around you Is that that Okay.

Alan Hair

assessing -- what said, with and, restart Well, potential as options, all certainly operations table Coricancha. our terms But right the in certainly, do of we've including everything now assessing is we there. on to

capital Tucano. As allocation on we've are our previously, priorities said

Joseph Reagor

if cash Tucano? sale just and you don't do to revised based you return cover then, you And Okay. estimates, comfortable enough. guys' the the you your cost current flow complete feel with asset Fair from debt sell your positive can Coricancha on

Alan Hair

steady-state XXXX. -- mine And plan be operation I steady should by our QX. healthy I to back as mean, shows Yes. to current say, state we

returning out in state the Central overcome said, real on be side should had shape but to other close we're I the plan main to as in that to, think We issues Urucum we just basis. and coming you pivot So that, steady the we're the South, good production. with [indiscernible] that of of very now

Joseph Reagor

I’ll Okay. right. Thanks. over. turn All it

Operator

next with The Akamai go Mochizuki ahead. Please Capital is Elise from [ph]. question

Unidentified Analyst

hear Hello, me? can you

Alan Hair

Yes.

Unidentified Analyst

metal for accused to court you investors? who manipulating current companies want message silver do taking States, those is and that What in price tell to potential traders that precious mining gold might a trial thanks of the question. think for close. week Hi, my due Last that United and

Alan Hair

repeat you that? could Sorry,

Unidentified Analyst

Yes.

trial those there So and gold was metal were that manipulating mining prices, last that current think of week, message tell accused that what for want and precious court traders might companies silver investors. do potential to you

Alan Hair

what with familiar not confess to really… And have I referencing. you're

Unidentified Analyst

question. investors It's question buying of reasonable entering terms? are investors, you some to or Moving see economic where the are stocks speaking opportunity my prices. When next with mining for addressing risk these how stock returning It's time macro about on of and investors industry. interesting to the an a thinking other [indiscernible] inflation, at recession mining junior you

Alan Hair

I to other Well, think, other are way we're as careful and by capital no uncertain from say, to doing being we, have we -- I company, as times. think our that, a different mining trying our with companies And said navigate through industries, earlier, allocation. I

We are all subject that efficiencies, typical through impact. companies the things that looking mining and metal tries company we can to to downturn, any price a where cycle improve reduce are especially to costs the do

I has situations similar its think anything that we company in that be doing faced we're So history. the other don't wouldn't in doing

Operator

session This remarks. Hair, Alan to today. I'd the for conference concludes over the time Q&A closing allocated any for like back to turn

Alan Hair

Thank you, operator.

and was Tucano. turn challenging progress to starting but the around quarter things to one, plan another are continue we see improvements This to in

we beyond, progress forward time We to our Thank your for expect to see improving you sharing results today. and next with look you. quarter and

Operator

today's concludes This conference call.

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

Great Panther Mining Limited (GPLDF) 4 Aug 222022 Q2 Earnings call transcript