great panther silver corporate presentation · corporate presentation january 25, 2018. tsx: gpr |...
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W W W . G R E A T P A N T H E R . C O M
Corporate PresentationJANUARY 25, 2018
TSX: GPR | NYSE AMERICAN: GPL 2
This presentation contains forward-looking statements within the meaning of the United States Private SecuritiesLitigation 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 theCompany's plans for production at its Guanajuato Mine Complex (“GMC”) and Topia Mine in Mexico, the CoricanchaMine (“Coricancha”) in Peru and exploring its other properties in Mexico, the overall economic potential of itsproperties, the timing and results of the Coricancha technical reports, timing and cost to the Company of reactivatingthe Coricancha, anticipated processing and production rates that may be achieved at the Coricancha uponreactivation, the ultimate cost of reclaiming legacy tailings facilities, results of exploration and potential changes to theCoricancha resource base, the availability of adequate financing, and involve known and unknown risks, uncertaintiesand other factors which may cause the actual results, performance or achievements expressed or implied by suchforward-looking statements to be materially different. Such factors include, among others, risks and uncertaintiesrelating to potential political risks involving the Company's operations in a foreign jurisdiction, technical and operationaldifficulties that may be encountered with reactivation of the Coricancha, uncertainty of production and cost estimatesand the potential for unexpected costs and expenses, uncertainty in mineral resource estimation, physical risks inherentin 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 thosedescribed in the Company's Annual Information Form for the year ended December 31, 2016 and Material ChangeReports filed with the Canadian Securities Administrators available at www.sedar.com and reports on Form 40-F andForm 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-lookingstatements to the extent that they involve estimates of the mineralization that will be encountered if the property isdeveloped. 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 suchas “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 statementsof 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
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1. Includes cash and short-term deposits2. US Dollars; As at September 30, 2017
Silver-Gold>90% precious metals Unhedged - No Royalties - No Streams
ProducerTwo 100% owned mining operations in Mexico; potential to restart one project in Peru
StrengthStrong balance sheet - No debt $55.5M cash
1,2, $63.6M working capital
2
DisciplinedEffectively reduced cost through downturn and grew production
GrowthOrganic 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 operations
Guanajuato District (Ag-Au)
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Ramp access from surface
Ore trucked 22 km to Cata Plant in Guanajuato
Accounted for 62% of the total ore
processed at the GMC in 2017
Significant potential for resource expansion over 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 reportedfinancial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titledmeasures 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 temporarilyclose 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-IFRSMeasures” section of the Company’s MD&A for an explanation of these measures and reconciliation to the Company’s reported financial results inaccordance 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
RecoveriesAg / Au (%)Pb / Zn (%)
91.7 / 65.3 93.1 / 94.2
Average GradesAg / Au (g/t)Pb / Zn (%)
376 / 0.892.58 / 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 $16.58
* Reflects plant upgrades & dry tails handling facility completed in Q1:17
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9 mos2017
FY 2017 Actual
FY 2018 Guidance
Total silver equivalent ounces1 2,913,000 3,979,000 4,000,000 – 4,100,000
Cash cost per silver payable ounce1,2,3 US$ 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
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Early Stage Exploration
Santa Rosa
Advanced Stage Exploration
El Horcón
DevelopmentAdvanced 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
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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 on 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 Estimates1. Cut-offs are based on an estimated $140 Net Smelter Return (NSR)/tonne2. 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, $3.00/lb Cu3. Block model grades converted to United States Dollar (US$) value using plant recoveries of 92.1% Ag, 80.2% Au, 77.3% Pb, 82.6% Zn, 52.7% Cu4. 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/m³5. Totals may not agree due to rounding.6. Grades in metric units7. All currencies US dollars8. Ag equivalent ounces (eq oz) million (M) is calculated from gpt data9. 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 AmericanC $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; HallgartenCompany; 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 DirectorsR.W. (Bob) Garnett, CPA, CA, ICD.D, Chair
James Bannantine PE, MBARobert Archer, P. Geo
Ken Major, P. EngJohn Jennings, MBA, CFA
W. James Mullin, B. ScElise Rees FCPA, FCA, ICD.D
Directors & Senior Management Team
Chief Operating OfficerAli Soltani
President & CEOJames Bannantine
PE, MBA
Chief Financial OfficerJim Zadra
CPA, CA, MBA
V.P. Corp. DevelopmentSamuel Mah
P. Eng
V.P. ExplorationMatthew Wunder
P. Geo
V.P. Operations, MexicoBrian 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 our 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, costof 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 ofthese measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they maynot 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 ounces1,2 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 silverand 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 samemetal pricing. | Silver equivalent calculations for El Horcón include lead content but not zinc, as the zinc would not be recovered in the Guanajuato plant. MatthewWunder, 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 CacosDirector, Investor Relations
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