Great Panther Silver Ltd. has released financial results for the company's year ended Dec. 31, 2014. The full version of the Company's financial statements, Management's Discussion and Analysis ("MD&A") and Annual Information Form ("AIF") can be viewed on the Company's website at www.greatpanther.com, or SEDAR at www.sedar.com. All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in Canadian dollars unless otherwise indicated.
"Our operations had a very strong finish in 2014, with record silver, gold and silver equivalent production, despite a difficult start to the year," stated Robert Archer, President & CEO. "We brought the San Ignacio Mine into production, discovered new high grade silver-gold mineralization there, and increased the overall resource base at the Guanajuato Mine Complex. I would also like to congratulate our entire team on their ongoing efforts to improve efficiencies and grade control. These efforts translated into a modest reduction in our cash cost year-over-year, although we still have work to do in this regard."
Margins and cash flows for 2014 were significantly impacted by a 20% decline in the average silver price compared to 2013, and a 10% decline in the average gold price. The decline in the average gold price also reduced by-product credits and therefore lessened the year-over-year reduction in cash cost. Great Panther has operational flexibility to react to lower metal prices as its mines each comprise multiple operating areas, with varying grade and cost profiles. In addition, the Company has no debt and a strong working capital, which better positions it against a backdrop of metal price volatility. Financial results for 2014 were also significantly impacted by $11.7 million of non-cash impairment charges taken in the fourth quarter. The significant decline in metal prices and a reduction in forecast expectations for metal prices were the principal factors accounting for the charge.
Fiscal Year 2014 compared to Fiscal Year 2013 (unless otherwise noted)
Throughput totalled 344,257 tonnes (including 9,058 tonnes of milling for a third party), an 18% increase. The start-up of the San Ignacio mine in June 2014 was the primary contributor of growth;
Record metal production of 3,187,832 silver equivalent ounces ("Ag eq oz"), a 12% increase, including 376,642 Ag eq oz from San Ignacio;
Silver production increased 11% to a record 1,906,645 silver ounces;
Gold production increased 5% to a record 16,461 gold ounces;
Cash cost per silver payable ounce ("cash cost") decreased 5% to US$12.78;
All-in sustaining cost ("AISC") per silver payable ounce decreased 16% to US$22.07;
Revenues totalled $54.4 million, an increase of 1%;
Net loss was $33.0 million, compared to net loss of $12.7 million;
Adjusted EBITDA was negative $0.3 million compared to $5.2 million;
Cash flow from operating activities, before changes in non-cash working capital ("NCWC"), was $1.2 million compared to $5.5 million;
Cash and cash equivalents were $18.0 million at December 31, 2014 compared to $21.8 million at December 31, 2013; and
Net working capital decreased to $32.9 million at December 31, 2014 from $38.2 million at December 31, 2013.
Fourth quarter 2014 compared to fourth quarter 2013 (unless otherwise noted):
Throughput increased 32% to 94,886 tonnes (including 2,312 tonnes of milling for a third party);
Achieved record quarterly metal production of 911,048 Ag eq oz, a 19% increase, including 132,594 Ag eq oz from San Ignacio;
Silver production increased 13% to 550,010 silver ounces;
Gold production increased 24% to a record 4,822 gold ounces;
Cash cost increased 38% to US$12.23;
Revenues totalled $14.2 million, a decrease of 10% which is reflective of the significantly lower average metal prices;
Net loss was $26.9 million, compared to net loss of $7.4 million;
Adjusted EBITDA was negative $1.2 million compared to $4.1 million; and
Cash flow from operating activities, before changes in NCWC, was negative $1.3 million compared to $4.9 million.
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