Great Panther Silver Reports Second Quarter 2016 Financial Results

Great Panther Silver (TSX:GPR) has announced its financial results for the three and six months ended June 30, 2016.
As quoted in the press release:

During the second quarter of 2016, the Company generated $13.2 million in mine operating earnings before non-cash items, and $9.9 million in operating cash flows before changes in non-cash net working capital.  This reflected increases of 96% and 176%, respectively, over the results from the second quarter of 2015.  These strong operating results are attributable to a 74% reduction in cash cost per payable silver ounce (in US dollar terms) and to the benefit of higher metal prices and favorable foreign exchange rates on revenues.  Notwithstanding the strong mine operating earnings, the Company reported a net loss of$1.7 million for the second quarter of 2016, mainly due to unrealized (non-cash) foreign exchange losses of $6.4 million on inter-company loans and advances by the Company to its Mexican subsidiaries and a $2.2 million (non-cash) impairment charge associated with the termination of the option agreement for the Coricancha project.  Adjusted EBITDA increased by 134% to$9.8 million.

Cash and net working capital at June 30, 2016 increased 48% and 46% to $28.8 million and $49.4 million, respectively, compared to the balances at the start of the year.  This was largely a function of the improvement in cash-flows from operating activities, and $6.6 million in proceeds from an At-the-Market share offering.  Subsequent to the second quarter, on July 12, 2016, the Company closed an equity bought deal offering for gross proceeds of US$29.9 million that further improved the Company’s cash position and significantly improved net working capital positions.  The Company continues to have no debt.

Click here to read the full press release.