Great Panther shares up on gold production boost

Tucano gold mine in Brazil. Photo by Beadell Resources

Great Panther (NYSE: GPL; TSX: GPR) announced on Thursday first quarter production results for its Tucano gold mine in Brazil, and the Topia mine and Guanajuato mine complex in Mexico.

During Q1 2020, the company produced 34,725 gold equivalent ounces, including 28,940 ounces of gold and 374,917 ounces of silver, a 134% increase compared to the first quarter of 2019. Tucano alone produced 26,176 gold ounces, an increase of 12% compared to the prior-year quarter, in line with the company’s expectations.

Production guidance for 2020 remains between 120,000 and 130,000 ounces of gold

Production guidance for 2020 remains between 120,000 and 130,000 ounces of gold. Mining activities continue uninterrupted at Tucano as the state of Amapá in Brazil has not introduced any measures to restrict mining activities in response to covid-19, the miner said.

Elsewhere, Great Panther has suspended mining and processing activities at the Guanajuato and Topia mines in Mexico until April 30, in compliance with the government directive.

The company’s two Mexican operations produced 8,549 gold equivalent ounces in Q1 2020, or approximately 769,000 silver equivalent ounces.

Topia produced 376,303 silver equivalent ounces, a decrease of 11% compared to the same period in 2019. The decrease in production is attributed to lower tonnage processed, lower gold grades and silver recoveries, and the change in metal equivalency ratios.

Guanajuato’s silver equivalent production increased 11% compared to the first quarter of 2019. This was due to higher silver grades, higher silver and gold recoveries, and the change in metal equivalency ratios.

“We had a solid start to the year, achieving production growth supporting our 2020 annual guidance, completing a strong advance in stripping at Tucano which will benefit production later in 2020 and in 2021, and commencing our exploration programs,” said interim CEO Jeffery Mason. 

“We remain well positioned to deliver on our 2020 objectives while keeping our workforce and communities safe by proactively and collaboratively working with local, state and federal authorities in managing the ongoing challenges of covid-19.”

Great Panther’s stock traded up 17% at midday Thursday on the TSE. The company has a market value of C$165 million.

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