W W W . G R E A T P A N T H E R . C O M
Corporate Presentation JANUARY 25, 2018 W W W . G R E A T P A N T H - - PowerPoint PPT Presentation
Corporate Presentation JANUARY 25, 2018 W W W . G R E A T P A N T H - - PowerPoint PPT Presentation
Corporate Presentation JANUARY 25, 2018 W W W . G R E A T P A N T H E R . C O M Disclaimer This presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and
TSX: GPR | NYSE AMERICAN: GPL 2 This presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation 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 the Company's plans for production at its Guanajuato Mine Complex (“GMC”) and Topia Mine in Mexico, the Coricancha Mine (“Coricancha”) in Peru and exploring its other properties in Mexico, the overall economic potential of its properties, the timing and results of the Coricancha technical reports, timing and cost to the Company of reactivating the Coricancha, anticipated processing and production rates that may be achieved at the Coricancha upon reactivation, the ultimate cost of reclaiming legacy tailings facilities, results of exploration and potential changes to the Coricancha resource base, the availability of adequate financing, and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, technical and operational difficulties that may be encountered with reactivation of the Coricancha, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, uncertainty in mineral resource estimation, physical risks inherent in 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 those described in the Company's Annual Information Form for the year ended December 31, 2016 and Material Change Reports filed with the Canadian Securities Administrators available at www.sedar.com and reports on Form 40-F and Form 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-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is
- developed. 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 such as “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 statements
- f historical fact and may be forward-looking statements.
Matthew 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 deposits 2. US Dollars; As at September 30, 2017
Silver-Gold >90% precious metals Unhedged - No Royalties - No Streams Producer Two 100% owned mining operations in Mexico; potential to restart one project in Peru Strength Strong balance sheet - No debt $55.5M cash
1,2, $63.6M working capital 2
Disciplined Effectively reduced cost through downturn and grew production Growth Organic growth potential within operating districts and pursuing acquisitions
Building a Foundation for Growth
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Mexico & Peru
Top two silver producing countries in the world Favourable political & mining jurisdictions
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Historically one of Mexico’s most prolific mining districts with past production of more than one billion Ag oz over 400 years Steadily grew production at GMC to current level of capacity Commercial production at San Ignacio commenced June 2014 Excellent infrastructure. Other projects in the district have potential to be satellite
- perations
Guanajuato District (Ag-Au)
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Ramp access from surface Ore trucked 22 km to Cata Plant in Guanajuato Accounted for 62%
- f the total ore
processed at the GMC in 2017 Significant potential for resource expansion
- ver 4 km strike length
Currently producing at between 500 - 600 tpd
San Ignacio Mine (Ag-Au)
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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 reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others. 4. As at September 30, 2017
Guanajuato Mine Complex (Ag-Au)1
9 mos 2017
Cash Cost/Ag oz 3,4 US $3.89 All-in Sustaining Cost/Ag oz 3,4 US $8.78
Accounted for 73% of total production in 2017¹
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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 temporarily close others as needed Lead and zinc concentrates sold to metal trader in Mexico Plant upgraded & construction of new tailings storage facility has commenced
Topia Mine (Ag-Pb-Zn-Au)
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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-IFRS Measures” section of the Company’s MD&A for an explanation of these measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others.
Topia Mine (Ag-Pb-Zn-Au)
Accounted for 27% of total production in 2017
FY 2017 Metal Production (Ag eq oz1) 1,087,000 Silver Production (Ag oz) 596,000 Recoveries Ag / Au (%) Pb / Zn (%) 91.7 / 65.3 93.1 / 94.2 Average Grades Ag / Au (g/t) Pb / Zn (%) 376 / 0.89 2.58 / 3.47 Ore processed (tonnes) 53,700 9 mos 2017 Cash Cost/Ag oz2,3 US $9.13 All-in Sustaining Cost/Ag oz2,3 *US $16.58
* Reflects plant upgrades & dry tails handling facility completed in Q1:17
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9 mos 2017 FY 2017 Actual FY 2018 Guidance Total silver equivalent ounces1 2,913,000 3,979,000 4,000,000 – 4,100,000 Cash cost per silver payable
- unce1,2,3
US$ 5.21 TBA US$ 5.00 – US$ 6.50 AISC1,2,3 US$ 15.60 TBA US$ 12.50 – US$ 14.50
1. Silver equivalent ounces for 2018 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. 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. 3. “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.
2018 Outlook
Steady outlook for Mexican operating mines Focus on advancing Coricancha Project in Peru to set platform for growth in 2019 and 2020
TSX: GPR | NYSE AMERICAN: GPL 11 Early Stage Exploration
Santa Rosa
Advanced Stage Exploration
El Horcón
Development Advanced 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 Coricancha into production; and good potential to finance from cash-flow from Mexican operations
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Growth Strategy
Significant organic growth in Mexico over the last 10 years Coricancha represents the first step in a “land and expand” opportunity in Peru
- 1,000
2,000 3,000 4,000 5,000 6,000 7,000 8,000 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017E 2018E 2019E 2020E Production AgEq (koz) Topia (actual) GMC (actual) Topia (est) GMC (est) Coricancha (est)
Acquisition, Optimization and Growth of Mexican Mines Coricancha growth potential
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Underground mine placed
- n 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)
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Coricancha – Near Term Growth Opportunity
Undertook drill program and other evaluations under option agreement in 2015/2016 Completed acquisition in June 2017 from Nyrstar Released an updated NI 43-101 Mineral Resource Estimate in December 2017 Production potential of 3,000,000 Ag eq oz per year based on production history Ongoing technical studies and evaluations – targeting release of technical evaluation in Q2 2018 Would represent 75% growth over current Company production levels
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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 Estimates
- 1. 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, $3.00/lb Cu
- 3. Block model grades converted to United States Dollar (US$) 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 data
- 9. 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
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Shares issued1 168,359,155 Fully diluted1 186,567,585 Institutional ownership ~18% Market capitalization C $281M / US $227 90-day daily average trading volume ~1M shares 52-week trading range: TSX NYSE American C $2.95 - $1.39 US $2.28 - $1.06 Cash position1 US $55.5M (no debt) Net working capital1 US $63.6M
- 1. As at September 30, 2017
Capital Structure
Updated on January 24, 2018
Analyst Coverage: Euro Pacific Capital Inc; H.C. Wainwright & Co; Hallgarten Company; Noble Financial & ROTH Capital Partners
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Two Year Stock Performance
NYSE American: GPL
Mining sector had seen strong volatility in 2017 Sell-off in early 2017 was largely driven by GDXJ rebalancing End of bear market Momentum trading Fluctuating silver price GDXJ rebalancing Consolidation
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12 Month Peer Comparison
- 80%
- 60%
- 40%
- 20%
0% 20% 40% 60%
Much of the junior mining sector was dragged down by GDXJ rebalancing and general market sentiment
Change Americas Silver 31% Silver 1% GDXJ
- 5%
Excellon
- 6%
Avino
- 8%
Fortuna
- 22%
Great Panther
- 31%
Endeavour
- 41%
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Leveraged To Silver
- 100%
0% 100% 200% 300% 400% 500% 2009 2010 2011 2012 2013 2014 2015 2016 2017
Great Panther Silver
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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
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Board of Directors
R.W. (Bob) Garnett, CPA, CA, ICD.D, Chair James Bannantine PE, MBA Robert 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 Officer Ali Soltani President & CEO James Bannantine PE, MBA Chief Financial Officer Jim Zadra CPA, CA, MBA V.P. Corp. Development Samuel Mah
- P. Eng
V.P. Exploration Matthew Wunder
- P. Geo
V.P. Operations, Mexico Brian Peer BA Sc
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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 27
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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
- ur 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
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1. The Company has included the non-IFRS performance measures cost per tonne milled, cash cost, AISC, mine operating earnings before non-cash items, cost
- f 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 of
these measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they may not 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
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Consolidated Operations Q4 2017 Q3 2017 Q2 2017 Q1 2017 Q4 2016 Silver ounces 514,218 532,803 569,229 366,435 460,571 Gold ounces 5,931 5,848 5,543 5,178 5,206 Lead tonnes 441 442 405
- 213
Zinc tonnes 551 562 638
- 315
Tonnes Milled 98,396 94,080 98,576 82,656 92,869 Silver equivalent
- unces1,2
1,065,773 1,080,483 1,102,290 730,186 883,772
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
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NOTE: San Ignacio and Guanajuato Mineral Resource Estimates use an effective date of August 31, 2017; and all used a metal price outlook of US$17.00/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. | Silver equivalent calculations for El Horcón include lead content but not zinc, as the zinc would not be recovered in 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 801,468 142 3.09
- 3,655,447
79,724 9,283,955 Guanajuato 170,978 227 1.50
- 1,245,568
8,268 1,829,281 Topia 180,400 606 1.44 4.26 4.52 3,515,800 8,332 6,000,200 Total Measured 8,416,815 96,324 17,113,436 Indicated San Ignacio 196,949 139 2.68
- 878,805
16,991 2,078,368 Guanajuato 43,929 215 1.25
- 383,530
2,088 428,190 Topia 165,800 644 1.17 4.75 3.82 3,437,712 6,243 5,570,000 Total Indicated 4,700,047 25,322 8,076,558 Total Measured & Indicated 13,116,862 121,646 25,189,994 Inferred San Ignacio 573,431 130 2.44
- 2,395,220
44,911 5,565,972 Guanajuato 158,846 136 2.04
- 694,917
10,432 1,431,334 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 10,295,022 88,345 20,140,219
Mineral Resources
W W W . G R E A T P A N T H E R . C O M
Spiros Cacos Director, Investor Relations +1 604 638 8955 1 888 355 1766 scacos@greatpanther.com