Great Panther’s Q2 Revenue Up 30 Percent Despite Low Metals Prices

Great Panther Silver Ltd. (TSX:GPR,NYSEMKT:GPL) announced its financial results for the three and six months ended June 30, 2014, commenting that its throughput for Q2 totaled 80,964 tonnes — that’s a quarterly record and 20-percent increase over the year-ago period.

Other Q2 highlights include:

• Commercial production commenced at San Ignacio in June and processing at Guanajuato included 12,880 tonnes of ore from the new satellite mine;

• Metal production of 718,794 silver equivalent ounces (‘Ag eq oz’) increased 6% and included 87,705 Ag eq oz from San Ignacio;

• Cash cost per silver payable ounce decreased 18% to US $14.85;

• All-in sustaining cost and All-in cost per silver payable ounce decreased 24% and 27%, to US $24.73 and US $25.12, respectively;

• Revenues increased 30% to $14.5 million, despite significantly lower metal prices;

• Net loss was $4.5 million, compared to net loss of $5.1 million;

• Adjusted EBITDA was $0.2 million, compared to negative $3.3 million;

• Cash and cash equivalents were $18.0 million compared to $21.8 million at December 31, 2013;

• Net working capital decreased to $34.2 million from $38.2 million at December 31, 2013.

Robert Archer, president and CEO of Great Panther, commented:

Great Panther’s operations processed a record amount of ore in the second quarter of 2014 as a result of starting commercial production at San Ignacio. This is a significant milestone for Great Panther as San Ignacio will make a growing contribution to the future of the Guanajuato operation.

Although we showed quarterly production growth and improvement in quarterly cash costs on a year-over-year basis, our financial results were negatively impacted due to the gradual resumption of normal operations at Guanajuato after the disruptions in Q1 and continued challenges with grade control. This resulted in cash cost for the quarter that was higher than our guidance for 2014. We are working hard to rectify this and we believe that our results will improve in the second half of 2014 as we ramp up production at San Ignacio and improve grade and cost controls at Guanajuato.

Click here to read the full Great Panther Silver Ltd. (TSX:GPR,NYSEMKT:GPL) press release.