Date post: | 21-Jan-2018 |
Category: |
Investor Relations |
Upload: | great-panther-silver-limited |
View: | 12 times |
Download: | 0 times |
W W W . G R E A T P A N T H E R . C O M
Corporate PresentationJANUARY 11, 2018
TSX: GPR | NYSE AMERICAN: GPL 2
This presentation contains forward-looking statements within the meaning of the United States Private SecuritiesLitigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario)(together, "forward-looking statements"). Such forward-looking statements may include but are not limited to theCompany's plans for production at its Guanajuato Mine Complex (“GMC”) and Topia Mine in Mexico, the CoricanchaMine (“Coricancha”) in Peru and exploring its other properties in Mexico, the overall economic potential of itsproperties, the timing and results of the Coricancha technical reports, timing and cost to the Company of reactivatingthe Coricancha, anticipated processing and production rates that may be achieved at the Coricancha uponreactivation, the ultimate cost of reclaiming legacy tailings facilities, results of exploration and potential changes to theCoricancha resource base, the availability of adequate financing, and involve known and unknown risks, uncertaintiesand other factors which may cause the actual results, performance or achievements expressed or implied by suchforward-looking statements to be materially different. Such factors include, among others, risks and uncertaintiesrelating to potential political risks involving the Company's operations in a foreign jurisdiction, technical and operationaldifficulties that may be encountered with reactivation of the Coricancha, uncertainty of production and cost estimatesand the potential for unexpected costs and expenses, uncertainty in mineral resource estimation, physical risks inherentin mining and reclamation operations, currency fluctuations, fluctuations in the price of silver, gold and base metals,completion of economic evaluations, changes in project parameters as plans continue to be refined, permitting risks,the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including thosedescribed in the Company's Annual Information Form for the year ended December 31, 2016 and Material ChangeReports filed with the Canadian Securities Administrators available at www.sedar.com and reports on Form 40-F andForm 6-K filed with the Securities and Exchange Commission and available at www.sec.gov.
Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-lookingstatements to the extent that they involve estimates of the mineralization that will be encountered if the property isdeveloped. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans,projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases suchas “expects”, “anticipates”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”,“potential” or variations thereof, or stating that certain actions, events or results “may”, “could”, “would”, “might” or“will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statementsof historical fact and may be forward-looking statements.
Mathew Wunder, P. Geo. is the Qualified Person under NI 43-101 for the projects discussed in this presentation.
Disclaimer
TSX: GPR | NYSE AMERICAN: GPL 3
1. Includes cash and short-term deposits2. US Dollars; As at September 30, 2017
Silver-Gold>90% precious metals Unhedged - No Royalties - No Streams
ProducerTwo 100% owned mining operations in Mexico; potential to restart one project in Peru
StrengthStrong balance sheet - No debt $55.5M cash
1,2, $63.6M working capital
2
Disciplined Reduced costs to maintain profitability
GrowthOrganic growth potential within operating districts and pursuing acquisitions
Building a Foundation for Growth
TSX: GPR | NYSE AMERICAN: GPL 4
Mexico & Peru
Top two silver producing countries in the world
Favourable political & mining jurisdictions
TSX: GPR | NYSE AMERICAN: GPL 5
Historically one of Mexico’s most prolific
mining districts with past production of
more than one billion Ag oz over 400 years
Expanded production at Guanajuato Mine
Complex (GMC)
Commercial production at San
Ignacio commenced June 2014, lifting GMC
throughput to950-1,050 tpd
Excellent infrastructure.
Other projects in the district have potential
to be satellite operations
Guanajuato District (Ag-Au)
TSX: GPR | NYSE AMERICAN: GPL 6
FY 2017
Metal Production (Ag eq oz2) 2,892,068
Silver Production (Ag oz) 1,386,964
Recoveries Ag/Au (%) 89.2 / 86.9
Average Grades Ag/Au (g/t) 151 / 2.41
Ore processed (tonnes) 319,964
1. Includes mill feed from San Ignacio.2. Silver equivalent ounces for 2017 are calculated using a 70:1 Ag:Au ratio.3. Cash cost per silver payable ounce and all-in sustaining cost per silver payable ounce (“AISC”) are non-IFRS performance measures. Refer to
the “Non-IFRS Measures” section of the Company’s MD&A for an explanation of these measures and reconciliation to the Company’s reportedfinancial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titledmeasures used by others.
4. As at September 30, 2017
Guanajuato Mine Complex (Ag-Au)1
Q3 2017
Cash Cost/Ag oz 3,4 US$ 3.75
All-in Sustaining Cost/Ag oz 3,4 US$ 7.90
Accounted for 73% of total production in 2017¹
TSX: GPR | NYSE AMERICAN: GPL 7
Ramp access from surface
Ore trucked 22 km to Cata Plant in Guanajuato
Accounted for 62% of the total ore
processed at the GMC in 2017
Significant potential for resource expansion over 4km strike length
Currently producing at between 500 - 600 tpd
San Ignacio Mine (Ag-Au)
TSX: GPR | NYSE AMERICAN: GPL 8
Property covers most of district – more than
6,500 hectares
High grade, narrow vein underground mining
with central plant
Operating 10 separate mines provides flexibility
Ability to expand production at profitable mines; can temporarilyclose others as needed
Lead and zinc concentrates sold to
metal trader in Mexico
Plant upgraded & new tailings storage facility
construction has commenced
Topia Mine (Ag-Pb-Zn-Au)
TSX: GPR | NYSE AMERICAN: GPL 9
1. Silver equivalent ounces for 2017 are calculated using a 70:1 Ag:Au ratio, and ratios of 1:0.0559 and 1:0.0676 for the price/ounce of silver to lead and zinc respectively.
2. Cash cost per silver payable ounce and all-in sustaining cost per silver payable ounce (“AISC”) are non-IFRS performance measures. Refer to the “Non-IFRSMeasures” section of the Company’s MD&A for an explanation of these measures and reconciliation to the Company’s reported financial results inaccordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.
3. As at September 30, 2017
Topia Mine (Ag-Pb-Zn-Au)
Accounted for 27% of total production in 2017
FY 2017
Metal Production (Ag eq oz1) 1,086,663
Silver Production (Ag oz) 595,720
RecoveriesAg / Au (%)Pb / Zn (%)
91.7 / 65.3 93.1 / 94.2
Average GradesAg / Au (g/t)Pb / Zn (%)
376 / 0.892.58 / 3.47
Ore processed (tonnes) 53,745
Q3 2017
Cash Cost/Ag oz2,3 US$ 10.01
All-in Sustaining Cost/Ag oz2,3 US$ 10.71
TSX: GPR | NYSE AMERICAN: GPL 10
Production & cash cost guidance 2017 Guidance
Nine Months Actuals3
FY 2017 Actual
Total silver equivalent ounces1 4,000,000 – 4,100,000 2,912,959 3,978,731
Cash Cost per silver payable ounce2,3 US$ 5.00 – US$ 6.00 US$ 5.21 TBA
AISC2,3 US$ 14.00 – US$ 16.00 US$ 15.60 TBA
1. Silver equivalent ounces for 2017 guidance have been calculated using a 70:1 Au:Ag ratio, and ratios of 1:0.0559 and 1:0.0676 for the US dollar price of silver ounces to the US dollar price for lead and zinc pounds, respectively.
2. “Cash cost” and “AISC” are non-IFRS measures. Refer to the “Non-IFRS measures” section of the Company’s MD&A for complete definitions and reconciliations to the company’s financial statements.
3. As at September 30, 2017
2017 Outlook
TSX: GPR | NYSE AMERICAN: GPL 11
Early Stage Exploration
Santa Rosa
Advanced Stage Exploration
El Horcón
DevelopmentAdvanced Stage
Development
Coricancha
Production
Guanajuato Mine
San Ignacio Mine
Topia Mine
Project Pipeline
~ 10 Years 5-10 Years 3-5 Years 1-3 Years Present
Pipeline of projects at various stages of exploration & development provides growth opportunities
Fully financed to bring the Coricancha Mine into production
TSX: GPR | NYSE AMERICAN: GPL 12
Growth Strategy
Significant organic growth in Mexico over the last 10 years
The Coricancha Mine represents the first step in a new opportunity of growth
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
E
20
18
E
20
19
E
20
20
E
Pro
du
ctio
n A
gEq
(ko
z)
Topia (actual) GMC (actual) Topia (est) GMC (est) Coricancha (est)
Organic growth
Coricancha growth potential
TSX: GPR | NYSE AMERICAN: GPL 13
Pipeline to Production
Coricancha represents a near term production opportunity and foundation for future growth in Peru
Acquisition finalized in Q2 2017; Completing optimization studies and evaluating alternative mining methods to reduce cost
Production history at Coricancha indicates potential for approx. 3 million Ag eq oz per year at full capacity – a 75% increase for GPR
Updated NI 43-101 Resource Estimate in December 2017
Looking for additional acquisition in the Americas, with a focus on Mexico and Peru
TSX: GPR | NYSE AMERICAN: GPL 14
Underground mine placed on care & maintenance in
August 2013
90 km east of Lima in prolific mining district
Operating history dating back to 1906
Permitted & operational existing processing plant and gold bio-leaching
facility
80% precious metals, 20% base metals by value
Ongoing technical studies in 2018
Coricancha Mine (Au-Ag-Pb-Zn-Cu)
TSX: GPR | NYSE AMERICAN: GPL 15
Updated 2017
NI 43-101 Mineral
Resource Estimate*
Measured
Resources
Indicated
Resources
Total M&I
Resources
Inferred
Resources
Tonnes 404,205 348,554 752,759 943,160
Au (g/t) 5.94 5.59 5.78 5.02
Ag (g/t) 210 189 200 209
Pb (%) 2.16 1.95 2.06 1.45
Zn (%) 3.43 3.05 3.26 3.25
Cu (%) 0.54 0.52 0.53 0.64
Silver Equivalent
Ounces (Ag Eq oz)13,490,000 10,710,000 24,200,000 28,360,000
Coricancha Mineral Resource Estimate
Notes for Mineral Resource Estimates1. Cut-offs are based on an estimated $140 Net Smelter Return (NSR)/tonne.2. Metal prices used to calculate NSR: $1,300 per ounce (oz) Au, $17/oz Ag, $1.15 per pound (lb) Pb, $1.50/lb Zn, $3.00/lb Cu3. Block model grades converted to United States Dollar (US$) value using plant recoveries of 92.1% Ag, 80.2% Au, 77.3% Pb, 82.6% Zn, 52.7% Cu.4. Rock Density for Constancia: 3.3 tonnes per cubic meter (t/m³), Wellington, Constancia East, Escondida, San Jose: 3.2 t/m³,
Colquipallana: 2.9 t/m³.5. Totals may not agree due to rounding.6. Grades in metric units.7. All currencies US dollars.8. Ag equivalent ounces (eq oz) million (M) is calculated from gpt data9. AgEq g/t = Ag g/t + (Pb grade x ((Pb price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x
10000 g per %)) +(Zn grade x ((Zn price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) + (Cu grade x ((Cu price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) + (Au grade x (Au price per oz/Ag price per oz)).
* see Great Panther Silver news release December 20, 2017
TSX: GPR | NYSE AMERICAN: GPL 16
Shares issued1 168,359,155
Fully diluted1 186,567,585
Institutional ownership ~18%
Market capitalization C $285M / US $222
90-day daily average trading volume ~1M shares
52-week trading range: TSX
NYSE AmericanC$ 1.39 - $2.95
US$ 1.06 - $2.28
Cash position1 US$ 55.5M (no debt)
Net working capital1 US$ 63.6M
1. As at September 30, 2017
Capital Structure
Updated on January 10, 2018
Analyst Coverage: Euro Pacific Capital Inc; H.C. Wainwright & Co; HallgartenCompany; Noble Financial & ROTH Capital Partners
TSX: GPR | NYSE AMERICAN: GPL 17
Two Year Stock Performance
NYSE American: GPL
Mining sector has seen strong volatility in 2017
Sell-off earlier in 2017 was largely driven by GDXJ rebalancing
End of bear market
Momentum trading Fluctuating silver price
GDXJ rebalancing
Consolidation
TSX: GPR | NYSE AMERICAN: GPL 18
12 Month Peer Comparison
-80%
-60%
-40%
-20%
0%
20%
40%
60%
80%
Much of the junior mining sector was dragged down by GDXJ rebalancing and general market sentiment
Change
Americas Silver 38%
Excellon 9%
Silver 3%
Avino -4%
GDXJ -6%
Fortuna -27%
Great Panther -31%
Endeavour -43%
TSX: GPR | NYSE AMERICAN: GPL 19
Leveraged To Silver
-100%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
2009 2010 2011 2012 2013 2014 2015 2016 2017
Great Panther Silver
TSX: GPR | NYSE AMERICAN: GPL 20
Profitable producer with strong leverage to silver price
Strong balance sheet, no debt – seeking acquisitions
Unhedged – No Royalties – No Streams
Advancing Coricancha - potential to significantly increase production
Excellent liquidity on NYSE American and TSX
Why Great Panther Silver?
APPENDIX
TSX: GPR | NYSE AMERICAN: GPL 22
Board of DirectorsR.W. (Bob) Garnett, CPA, CA, ICD.D, Chair
James Bannantine PE, MBARobert Archer, P. Geo.
Ken Major, P. Eng.John Jennings, MBA, CFA
W. James Mullin, B.Sc.Elise Rees FCPA, FCA, ICD.D
Directors & Senior Management Team
Chief Operating OfficerAli Soltani
President & CEOJames Bannantine
PE, MBA
Chief Financial OfficerJim Zadra
CPA, CA, MBA
V.P. Corp. DevelopmentSamuel Mah
P. Eng.
V.P. ExplorationMatthew Wunder
P. Geo.
V.P. Operations, MexicoBrian Peer
BA.Sc
TSX: GPR | NYSE AMERICAN: GPL 23
Historic underground mine with two operating shafts & two ramps
Currently mining & developing to 600m depth on several zones over 4km strike length
Higher cut-off grades & improvements in grade control have lowered costs
Ag-Au concentrate shipped to smelters in Japan & Germany
Guanajuato Mine (Ag-Au)
* For details on Mineral Resource Estimates, refer to slide 28
TSX: GPR | NYSE AMERICAN: GPL 24
Awarded distinction as a “Socially
Responsible Company” by CEMEFI,
Centro Mexicano para la Filantropía, for
a seventh consecutive year in 2017
Social Principles
We are committed to:
Ensuring our employees and contractors return home safely every day
Fair and equitable employment conditions for our employees
Enhancing and benefiting the communities in which we live and operate
Minimizing and restoring any impact on our environment
Strong ethics and we abide by all rules and regulations that apply to our business
TSX: GPR | NYSE AMERICAN: GPL 25
1. The Company has included the non-IFRS performance measures cost per tonne milled, cash cost, AISC, mine operating earnings before non-cash items, costof sales before non-cash items and adjusted EBITDA throughout this document. Refer to the Non-IFRS Measures section of this MD&A for an explanation ofthese measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they maynot be directly comparable to similarly titled measures used by others.
2. Average realized silver price is prior to smelting and refining charges.
in US$000s unless otherwise stated Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016
Revenue $ 18,260 $ 15,731 $ 12,371 $ 12,515 $ 15,631
Mine operating earnings before non-
cash items1 $ 6,168 $ 5,418 $ 5,445 $ 4,476 $ 7,230
Net income (loss) $ (666) $ 833 $ 3,040 $ (1,498) $ 2,130
Adjusted EBITDA1 $ 1,482 $ 1,489 $ 2,134 $ 1,376 $ 4,738
Earnings (loss) per share – basic $ 0.00 $ 0.00 $ 0.02 $ (0.01) $ 0.01
Earnings (loss) per share – diluted $ 0.00 $ 0.00 $ 0.02 $ (0.01) $ 0.01
Total cash cost per Ag oz1 $ 5.82 $ 5.67 $ 3.54 $ 5.83 $ 3.30
All-in sustaining cost per Ag oz1 $ 13.75 $ 11.47 $ 19.55 $ 16.44 $ 11.97
Average realized silver price2 $ 16.99 $ 16.01 $ 19.33 $ 14.99 $ 19.65
Financial Summary
TSX: GPR | NYSE AMERICAN: GPL 26
Consolidated
Operations Q3 2017 Q2 2017 Q1 2017 Q4 2016 Q3 2016
Silver ounces 532,803 569,229 366,435 460,571 510,491
Gold ounces 5,848 5,543 5,178 5,206 5,423
Lead tonnes 442 405 - 213 248
Zinc tonnes 562 638 - 315 324
Tonnes Milled 94,080 98,576 82,656 92,869 95,282
Silver equivalent ounces1,2 1,080,483 1,102,290 730,186 883,772 953,632
1. Silver equivalent ounces for 2017 were calculated using a 70:1 Ag:Au ratio, and a ratio of 1:0.0559 and 1:0.0676 for the price/ounce of silver to price/pound of lead and zinc respectively.
2. Silver equivalent ounces for 2016 were calculated using a 70:1 Ag:Au ratio, and a ratio of 1:0.0504 for the price/ounce of silver to lead and zinc price/pound respectively.
Operational Summary
TSX: GPR | NYSE AMERICAN: GPL 27
2013 2014 2015 2016 2017
Guanajuato 26,237 m 13,270 m 13,025 m 9,670 m 10,975 m
Topia 2,162 m 1,903 m - - 2,500 m
San Ignacio 1,144 m 3,827 m 4,657 m 6,015 m 21,025 m
Coricancha - - 2,323 m 3,551 m 7,800 m
Santa Rosa - - - - 1,000 m
El Horcón 2,156 m - - - 1,500 m
Total 31,699 m 19,000 m 20,005 m 19,236 m 44,800 m
Drilling Summary
TSX: GPR | NYSE AMERICAN: GPL 28
NOTE: Mineral Resource Estimates use an effective date of August 31, 2016; and all used a metal price outlook of US$18.00/oz silver and US$1,300/oz gold..| Topia,November 2014 - US$1,200/oz Au, US$17.00/oz Ag, US$0.90/lb Pb, and US$0.95/lb Zn. Silver equivalent calculations used the same metal pricing. | San Ignacio,December 2015 - US$15.00/oz Ag; US$1100/oz Au. | Silver equivalent calculations for El Horcón include lead content but not zinc, as the zinc would not be recoveredin the Guanajuato plant. Matthew Wunder, P. Geo., is the Qualified Person under NI 43-101 for Guanajuato, Topia, San Ignacio and El Horcón.
Measured Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (oz) Au (oz) Ag Eq Oz
San Ignacio 408,327 116 2.88 1,525,584 37,760 4,191,435
Guanajuato 114,695 364 1.53 - - 974,318 5,647 1,372,961
Topia 180,400 606 1.44 4.26 4.52 3,515,800 8,332 6,000,200
Total Measured 6,015,702 51,739 11,564,596
Indicated
San Ignacio 133,398 106 2.79 - - 453,762 10,987 1,229,462
Guanajuato 36,480 216 1.04 - - 253,876 1,393 352,218
Topia 165,800 644 1.17 4.75 3.82 3,437,712 6,243 5,570,000
Total Indicated 4,145,350 18,623 7,151,680
Total Measured & Indicated 10,161,052 70,362 18,716,276
Inferred
San Ignacio 645,318 121 2.76 - - 2,519,826 44,551 5,665,137
Guanajuato 147,327 129 2.30 - - 612,220 10,095 1,324,867
Topia 357,400 592 1.31 3.44 3.96 6,806,791 15,060 11,050,000
El Horcón 162,140 76 3.64 2.97 4.11 398,094 17,942 2,092,913
Total Inferred 10,336,931 87,648 20,132,917
Mineral Resources
W W W . G R E A T P A N T H E R . C O M
Spiros CacosDirector, Investor Relations
+1 604 638 89551 888 355 1766