Mexico ramps up gold reserves at dollar's expense May 4, 2011 3:30 PM EDT
Mexico ramps up gold reserves at dollar's expense
Mexico massively ramped up its gold reserves in the first quarter of this year, buying over $4 billion of bullion as emerging economies move away from the ailing U.S. dollar, which has dipped to 2-1/2-year lows.
The third biggest one-off purchase of gold by any country over the past decade took Mexico's reserves to 100.15 tonnes -- or 3.22 million ounces -- by the end of March from just 6.84 tonnes at the end of January, according to the International Monetary Fund and Mexico's central bank.
Gold has gained 11 percent this year, driven by concern over euro zone debt and the violence in the Arab world, as well as by the U.S. dollar's 7.6 percent decline against a basket of currencies.
Sergio Martin, chief economist for HSBC in Mexico, said the government probably saw gold as a highly liquid asset that would reduce exposure to the falling greenback.
"They're probably thinking that getting out of dollars and into gold makes sense because we know that the dollar has some trend to depreciate in the near future at least," said Martin. "I don't think they're going to lose money with this."
Mexico's foreign currency and asset reserves hit a record $128 billion in April, making the gold purchased mostly in February and March worth nearly 4 percent of that total. Mexican central bank data on gold holdings only exists through March.
The central bank did not respond to a request for comment.
According to the International Monetary Fund, Latin America's No. 2 economy now owns $4.93 billion worth of gold, which hit a record $1,575.79 an ounce on Monday.
Other emerging economies such as China, Russia and India have also beefed up bullion reserves over the past few years.
SILVER LINING?
Credit Suisse precious metals analyst Tom Kendall said it was worthy of note that Mexico, whose economy is very closely tied to the United States, had taken this step.
"The size (of the purchase) is certainly pretty chunky to have been accomplished in that space of time. So it certainly gives another sizable layer of support to gold's position in the international reserves system," he added.
George Milling-Stanley, managing director of government affairs at the World Gold Council industry group, said Mexico was following a recent trend among central banks to restore a "prior balance between gold and currency reserves."
"This is further supported by the fact that the May IMF numbers show continued buying by Russia and Thailand of 18.8 tonnes and 9.3 tonnes respectively," he added.
Mexico's reserves rank it 33rd among the top official holders of gold. The United States is the largest official holder of gold, with 8,133 tonnes, which account for 73.8 percent of its total international reserves.
China is the sixth largest holder of gold, with 1,054.1 tonnes, or just 1.6 percent of total reserves, while eighth-ranked Russia now has some 811 tonnes of gold, up from 788.78 in January, according to the IMF data.
Silver, which hit a record price earlier this year, may also have been on Mexico's buying list, said Martin at HSBC.
"I think Mexico has moved from second to first place in the list of global silver producers, so they may have been buying silver to help the price," he added.
The 0-administ. through their contacts on Wall Street have them calling big commodity houses and telling them to get rid of their silver positions so that Morgan can cover and that's what this is all about right now, great opportunity to buy..." says Bob Chapman of The International Forecaster
Of course, we knew that, but Bob's comments implicate the 0-administ. (well-known that we have been taken over by Wall Street - revolving door).
Silver = Kesef = Money = well, Silver also means Money in my Hebrew :-) well, the REAL MONEY since 1000s of years -
= the more manipulation = the higher Ag will FLY =
history of LT bankster Ag=Kesef=Money manipulations = for banksters to take Kesef from the People - give nickel/copper to the slave to keep them slaves -
= well, old timers said fiat$1000 in our Ag=Kesef Money = = well, be Safety LT for our Family
= well, told you since the turn around $2,55 = = well, the LT Ag-Keseftrain GOING UP = = well, get OFF the fence = = well, join GPR / GPL the Jer-USA-lem Ag Kesefride = = well, the faster the better LT FOS :-)
Eric Sprott on the Keiser Report: :-) Top Down Tyranny (E146 ....
That's okay, because the chart is setting up just like it did on the massive run from $1.75 up to over $5.00. Only this time we'll break $10.00 in my opinion. :-) by 12thman thanks good info :-)
Great Panther Silver Reports Record Quarterly Net Income of $7 Million Jun. 14, 2011 (Marketwire Canada) -- VANCOUVER, BRITISH COLUMBIA --
GREAT PANTHER SILVER LIMITED - (TSX:GPR)(NYSE Amex:GPL) (the "Company") is pleased to announce the financial results for the Company's quarter ending March 31, 2011.
This is the first period where the Company has prepared its consolidated interim unaudited financial statements using IFRS. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's web site at www.greatpanther.com or on SEDAR at www.sedar.com.
"We are pleased to report that Great Panther continued to achieve record revenue, earnings from mining operations, and net income in our first quarter this year," said Kaare Foy, Executive Chairman. "We have also made some changes to strengthen both our board and management team which we believe will position us to continue to grow our business profitably in the future."
Change from First Quarter First Quarter Highlights 2011 2010 Revenue 15.5 million UP 95% Earnings from mining operations 8.6 million UP 242% Net income 7 million UP 617% Earnings per share - basic $ 0.06 UP 500% Earnings per share - diluted $ 0.05 UP 400%
Silver ounces produced (excluding equivalent ounces of gold, zinc and lead) 410,640 UP 15%
Silver equivalent produced (1) 607,225 UP 15%
Silver payable ounces 348,439 UP 9%
Total cash cost per silver ounce (2) $ 10.05 UP 50% Average revenue per silver ounce sold $ 32.18 UP 79%
2011 FIRST QUARTER HIGHLIGHTS
95% increase in revenue to $15.5 million for the quarter ended March 31, 2011 from $7.9 million for the same period in 2010.
242% increase in gross profit (earnings from mining operations) to $8.6 million for the three months ended March 31, 2011 from $2.5 million for the same period in 2010.
$4.8 million increase in cash flows from operating activities to $2.8 million for the quarter ended March 31, 2011 from $2.0 million used in operating activities for the same period in 2010.
$6.0 million increase in net income to $7.0 million for the quarter ended March 31, 2011 from $1.0 million for the same period in 2010.
165% increase in Adjusted EBITDA(3) to $8.4 million for the three months ended March 31, 2011 from $3.2 million for the three months ended March 31, 2010.
On February 8, 2011, the Company's shares were listed on NYSE Amex stock exchange in the United States under the trading symbol "GPL".
On March 8, 2011, the Company paid off $4.05 million in two outstanding 8% unsecured convertible loan notes due on July 14, 2011 by the issuance of 1,800,000 fully paid common shares of the Company at the originally agreed upon conversion price of $2.25 per common share.
Closed equity offering for gross proceeds of $24.2 million on April 12, 2011.
15% increase in total metal production to 607,225 silver equivalent ounces ("Ag eq oz") in the first quarter 2011 from 526,949 Ag eq oz in the first quarter 2010, including 410,640 silver ounces, 2,310 gold ounces, 241 tonnes of lead and 345 tonnes of zinc.
29% increase in metal production to 406,419 Ag eq oz at Guanajuato compared to the first quarter 2010.
Record silver production of 137,219 oz Ag at Topia, a 4% increase from the first quarter 2010.
Increase in cash cost per silver ounce, net of by-products, for the first quarter of 2011 to US$10.05 from US$6.72 for the first quarter of 2010. This was principally due to higher smelter charges arising from new smelter contracts at our Topia mine. Site costs were also higher at Topia because of higher tonnes mined and milled at a lower grade.
Issued an update on March 7, 2011 to the ongoing mineral resource development at the Topia mine. The 2011 mineral resource estimate increased Measured and Indicated mineral resources to 7.44 million silver equivalent ounces, a 36.3% increase over the 2009 resource estimate, and Inferred resources to 11.91 million silver equivalent ounces, a 109.3% increase over the previous estimate.
Exploration drilling confirms silver-gold zones extending to depth at Guanajuatito.
On February 16, 2011, Minera Mexicana El Rosario S.A. de C.V., Great Panther's Mexican subsidiary, was awarded its first distinction as a "Socially Responsible Company" for the year 2010 by CEMEFI, Centro Mexicano para la Filantropía (Mexican Centre for Philanthropy).
This annual award is a milestone for us and has been awarded for our commitment to sustainable environmental, social and economic development.
2011 OUTLOOK
As we approach the mid-point of the three-year growth strategy (2010 – 2012), production from both operations is growing and plant capacity is being increased to accommodate future growth, mineral resources are being updated and increased, exploration drilling is being increased and the permitting process has been initiated for the San Ignacio Property, near Guanaj ato.
The anticipated development of the new San Ignacio Property combined with the improved mineral resources at Guanajuato and Topia support ongoing growth and increased throughput.
Operating efficiencies will allow for further increases such that production upside will remain at both mines.
The 2012 mine plans will be confirmed once the drill results for the current programs have been interpreted, and mineral resources are updated.
"Following the strong financial performance Great Panther delivered in fiscal 2010, we are off to a stronger start this year, again setting several new records," said Robert Archer, President & CEO.
ABOUT GREAT PANTHER
Great Panther Silver Limited is one of the fastest growing primary silver producers in Mexico with strong leverage to future rises in the price of silver. The Company owns a 100% interest in two operating mines in Mexico. The Company's mission is to become a leading primary silver producer by acquiring, developing and profitably mining precious metals.
All shareholders have the ability to receive a hard copy of the Company's complete audited financial statements free of charge upon request. Should you wish to receive Great Panther Silver's Financial Statements or the Annual Report on Form 20-F in hard copy, please contact us at the Company toll free at 1-888-355-1766 or 604-608-1766 , or e-mail info@greatpanther.com.
ON BEHALF OF THE BOARD
Robert A. Archer, President & CEO
Kaare G. Foy, Executive Chairman
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 ---- at www.sec.gov and Material Change Reports filed with the Canadian Securities Administrators and available at www.sedar.com.
(1) Silver equivalent ounces in 2011 were established using prices of US$1,200 per oz of gold, US$20 per oz of silver, US$0.90 per lb of lead, and US$0.90 per lb of zinc.
(2) "Cash cost per ounce" is a non-IFRS measure and is used by the Company to manage and evaluate operating performance at each of the Company's mines and is widely reported in the silver mining industry as a benchmark for performance, but does not have a standardized meaning.
(3) "Adjusted EBITDA" is a non-IFRS measure in which standard EBITDA (earnings before interest expense, taxes, and depreciation and amortization) is adjusted for stock-based compensation expense and non-recurring items. Refer to the "Non-IFRS Measures" section for a reconciliation of standardized and adjusted EBITDA to the financial statements.
The Company's financial statements are now reported under International Financial Reporting Standards ("IFRS") and the 2010 comparative results have been restated to IFRS in the current period financial statements. Refer to Note 2 in the unaudited March 31, 2011 financial statements for a detailed description of our accounting policies under IFRS and Note 14 for disclosures and reconciliation of the impact of IFRS on previously reported results. Great Panther Silver Limited CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited – Prepared by Management) (Expressed in Thousands of Canadian Dollars, except shares data) For the three months ended March 31, 2011 and 2010
2011 2010
Revenue $ 15,460 $ 7,915 Cost of sales: Cost of sales 5,831 4,405 Amortization and depletion of mineral properties, plant and equipment 1,016 994 6,847 5,399 Gross profit 8,613 2,516
General and administrative expenses 1,796 1,337
Income (expenses): Interest income 54 21 Finance costs (267) (249) Foreign exchange gain 469 974 Other income 15 - 271 746 Income before income taxes 7,088 1,925
Income tax recovery (expense): Current income tax recovery (expense) (79) (23) Deferred income tax recovery (expense) - (925) (79) (948) Income for the period 7,009 977
Other comprehensive income (loss), net of tax: Cumulative translation adjustment 300 (4,005) Net change in fair value of available-for-sale financial assets (78) 2 222 (4,003) Comprehensive income (loss) for the period $ 7,231 $ (3,026)
Weighted average number of common shares Basic 122,089,270 113,350,512 Diluted 129,208,193 115,836,965
Great Panther Silver Limited CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION (Unaudited – Prepared by Management) (Expressed in Thousands of Canadian Dollars, except shares data) March 31, 2011, December 31, 2010 and January 1, 2010
March 31, December 31, January 1, 2011 2010 2010
Assets
Current assets: Cash and cash equivalents $ 15,166 $ 13,967 $ 13,312 Restricted cash 97 151 - Investments 123 200 23 Trade and other receivables 14,158 9,635 5,539 Income taxes recoverable 257 239 342 Inventories 3,365 2,615 1,438 Prepaid expenses, deposits and advances 2,225 1,240 1,585 35,391 28,047 22,239 Non-current assets: Mineral properties, plant and equipment 30,591 27,277 19,212 Intangible assets 172 127 102 30,763 27,404 19,314
$ 66,154 $ 55,451 $ 41,553 Great Panther Silver Limited CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS (Unaudited – Prepared by Management) (Expressed in Thousands of Canadian Dollars, except shares data) For the three months ended March 31, 2011 and 2010
2011 2010 Cash flows provided by (used in) operating activities: Income for the period $ 7,009 $ 977 Items not involving cash: Amortization and depletion of mineral properties, plant and equipment 1,042 1,005 Foreign exchange losses 53 36 Deferred tax liability - 925 Accretion on reclamation and remediation provision 10 10 Interest accretion on convertible loan notes 239 215 8,353 3,168 Changes in non-cash operating working capital: Trade and other receivables (4,523) (4,318) Income taxes recoverable (18) (26) Inventories (750) (877) Prepaid expenses, deposits and advances (985) (129) Trade and other payables, including derivatives 640 215 Current tax liability 49 5 Net cash provided by (used in) operating activities 2,766 (1,962) Cash flows used in investing activities: Intangible assets (45) (1) Mineral properties and capital expenditures (4,193) (2,675) Restricted cash 54 - Net cash used in investing activities (4,184) (2,676)
Cash flows from financing activities: Repayment of long-term debt - (19) Repayment of capital lease obligations (139) (186) Repayment of promissory notes (94) - Repayment of convertible loan notes (61) (81) Proceeds from exercise of warrants 1,603 472 Proceeds from exercise of options 1,370 381 Issuance of shares for cash, net of issue costs - (32) Net cash from financing activities 2,679 535 1,261 (4,103) Effect of exchange rate changes on cash and cash equivalents (62) 41 Increase (decrease) in cash and cash equivalents 1,199 (4,062) Cash and cash equivalents, beginning of period 13,967 13,312 Cash and cash equivalents, end of period $ 15,166 $ 9,250
Great Panther Silver (GPR) fiat$3.55 UP $0.17 +5.03% :-)
Volume: 1,020,400 @ 3:59:55 PM ET good demand :-) Bid Ask Day's Range 3.54 3.55 3.37 - 3.56 TSE:GPR Detailed Quote
GPL chart TA Alert Breakout Start :-)
It will be interesting to watch what happens next. You can note that the price of silver is now running on rails :-) at $36, which is the top of the current range.
$Silver chart TA TI RSI Signal bull cross to buy zone :-)
TI MACD TA building strength to cross resistant line :-)
If the banksters follow their previous patterns, it will stay there until they take it down just ahead of the release of this month's unemployment numbers.
If silver breaks out from here and extends upwards, I will be happy. But, I will not be surprised to see it stall here and get torn down yet again. Hockmir thanks good info :-)
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