OUTLOOK
Production and cash FY 2017 Guidance FY 2016 Actual
cost guidance
Total silver equivalent
ounces(1) 4,000,000 - 4,100,000 3,884,960
Total payable silver ounces 1,950,000 - 2,000,000 2,010,252
Cash cost(2) $ 5.00 -- 6.00 $ 3.65
AISC(2) $ 14.00 -- 16.00 $ 10.99
For 2017, the Company expects cash cost to increase due to increases in site costs and increased expenditures on definition drilling aimed at reducing grade variability and improving mine planning. AISC is also expected to increase due to the increase in cash cost and greater investment in drilling, development and capital projects. In particular, AISC will reflect the non-recurring capital expenditures in the new tailings facility at Topia which will primarily be incurred in the first quarter of 2017.
The Company provides the following guidance for capital expenditures and EE&D expenses.
Capex and EE&D expense guidance FY 2017 Guidance FY 2016 Actual
(in millions)
Capital expenditures $ 6.3 -- 7.3 $ 4.8
EE&D expenses -- operating mines $ 3.5 -- 4.5 $ 3.0
_______________________
(1) For 2017 guidance, Ag eq oz have been established
using a 70:1 Au:Ag ratio, and ratios of 1:0.0559 and
1:0.676 for the USD price of silver ounces to the
USD price for lead and zinc pounds, respectively.
For 2016, Ag eq oz were calculated using a 70:1 Ag:Au
ratio, and a ratio of 1:0.0504 for the USD price of
silver ounces to the USD price for both lead and zinc
pounds.
(2) Cash cost and AISC are non-IFRS measures. 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.
WEBCAST AND CONFERENCE CALL TO DISCUSS FISCAL YEAR 2016 FINANCIAL RESULTS
Great Panther will hold a live webcast and conference call to discuss the financial results on February 28, 2017, at 8:00 am Pacific Time. Hosting the call will be Mr. Robert Archer, President and CEO, and Mr. Jim Zadra, CFO and Corporate Secretary.
Shareholders, analysts, investors and media are invited to join the live webcast and conference call by logging in or calling in five minutes prior to the start time.
Live webcast and registration www.greatpanther.com
U.S. & Canada Toll-Free 1 866 832 4290
International Toll +1 919 825 3215
Conference ID 66679597
A replay of the webcast will be available on the Investors section of the Company's website approximately one hour after the conference call.
NON-IFRS MEASURES
The discussion of financial results in this press release includes reference to mine operating earnings before non-cash items, EBITDA, adjusted EBITDA, cash cost, cash cost per silver equivalent ounce, AISC and AISC per Ag eq oz, which are non-IFRS measures. The Company provides these measures as additional information regarding the Company's financial results and performance. Please refer to the Company's MD&A for the year ended December 31, 2016 for definitions and reconciliations of these measures to the Company's financial statements.
ABOUT GREAT PANTHER
Great Panther Silver Limited is a primary silver mining and exploration company listed on the Toronto Stock Exchange trading under the symbol GPR, and on the NYSE MKT trading under the symbol GPL. Great Panther's current activities are focused on the mining of precious metals from its two wholly-owned operating mines in Mexico: the Guanajuato Mine Complex, which includes the San Ignacio Mine, and the Topia Mine in Durango. In addition, the Company has recently signed an agreement to acquire a 100% interest in the Coricancha Mine Complex in the central Andes of Peru.
Robert A. Archer
President & CEO
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS
This news release 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 Canadian securities laws (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 and Topia Mines in Mexico, exploring its other properties in Mexico and Peru, the overall economic potential of its properties, 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, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, uncertainty in mineral resource estimation, physical risks inherent in mining 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 most recently filed Annual Information Form 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.
Great Panther Silver Limited
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Expressed in thousands of US dollars)
As at December 31, 2016 and 2015, and January 1, 2015
December 31, December 31, January 1,
2016 2015 2015
Assets
Current assets:
Cash and cash
equivalents $ 41,642 $ 13,685 $ 13,767
Short-term deposits 15,020 - -
Trade and other
receivables 10,178 9,635 8,326
Inventories 5,744 6,540 6,841
Other current assets 529 850 575
73,113 30,710 29,509
Non-current assets:
Mineral properties,
plant and equipment 14,096 16,284 22,809
Exploration and
evaluation assets 2,112 4,158 2,361
Intangible assets 22 85 280
Deferred tax asset 98 316 54
$ 89,441 $ 51,553 $ 55,013
Liabilities and
Shareholders' Equity
Current liabilities:
Trade and other
payables $ 6,017 $ 5,233 $ 4,296
Derivative liabilities 536 - -
Non-current
liabilities:
Reclamation and
remediation provision 3,466 3,649 2,588
Deferred tax liability 2,134 3,064 3,133
12,153 11,946 10,017
Shareholders' equity:
Share capital 128,485 96,268 95,143
Reserves 18,115 8,533 7,890
Deficit (69,312) (65,194) (58,037)
77,288 39,607 44,996
$ 89,441 $ 51,553 $ 55,013
Great Panther Silver Limited
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Expressed in thousands of US dollars, unless otherwise
noted)
For the years ended December 31, 2016 and 2015
2016 2015
Revenue $ 61,881 $ 56,218
Cost of sales
Production costs 34,153 37,802
Amortization and depletion 5,436 13,763
Share-based compensation 270 287
39,859 51,852
Mine operating earnings 22,022 4,366
General and administrative expenses
Administrative expenses 4,959 5,434
Amortization and depletion 140 200
Share-based compensation 714 448
5,813 6,082
Exploration, evaluation and
development expenses
Exploration and evaluation expenses 3,286 3,330
Mine development costs 2,799 2,839
Share-based compensation 42 211
6,127 6,380
Impairment charges 1,679 2,303
Finance and other (expense) income
Interest income 225 223
Finance costs (99) (131)
Foreign exchange (loss) gain (11,135) 3,121
Other (expense) income (3) 25
(11,012) 3,238
Loss before income taxes (2,609) (7,161)
Income tax expense (recovery)
Current expense 1,918 368
Deferred recovery (409) (372)
1,509 (4)
Net loss for the year $ (4,118) $(7,157)
Other comprehensive income (loss),
net of tax
Items that are or may be
reclassified subsequently
to net income (loss):
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