Corporate Presentation

Transcription

1 Corporate Presentation MAY 24, 2017 W W W. G R E A T P A N T H E R. C O M

2 Disclaimer This presentation 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 the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, 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, 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, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Information Form for the year ended December 31, 2016 and Material Change Reports filed with the Canadian Securities Administrators available at and reports on Form 40-F and Form 6-K filed with the Securities and Exchange Commission and available at Statements concerning mineral reserve and resource estimates may also be deemed to constitute forwardlooking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. 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 such as 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 statements of historical fact and may be forward-looking statements. Robert Brown, P. Eng. is the Qualified Person under NI for the projects discussed in this presentation. TSX: GPR NYSE MKT: GPL 2

3 Building a Foundation for Growth Silver-Gold Producer Strength Disciplined Growth >90% precious metals Unhedged - No Royalties - No Streams Two 100% owned mining operations in Mexico; potential for production in Peru Strong balance sheet - No debt $53.2M cash 1,2, $69.3M working capital 2 Significantly lowered cost/oz Organic growth potential within operating districts, and seeking acquisitions 1. Includes cash and short-term deposits 2. US Dollars; As at March 31, 2017 TSX: GPR NYSE MKT: GPL 3

4 Maintaining Low Costs $25.00 $25.00 $20.00 $15.00 $20.00 $15.00 $11.97 $ Guidance $19.55 $10.00 $5.00 $4.20 $1.72 $3.30 $5.83 $3.54 $10.00 $5.00 $9.25 $7.19 $0.00 Q Q Q Q Q $0.00 Q Q Q Q Q Total cash cost per Ag oz All-in sustaining cost per Ag oz Average realized silver price Average realized silver price Cost per ounce has improved due to stronger USD and higher by-product credits AISC is higher mainly due to capital projects; Will start to decline in Q2 TSX: GPR NYSE MKT: GPL 4

5 Recent Financial Performance $25,000 $25.00 $12,000 $25.00 $20,000 $20.00 $10,000 $20.00 $15,000 $15.00 $8, $15.00 $6,000 Guidance $10,000 $10.00 $4,000 $10.00 $5,000 $5.00 $2,000 $5.00 $0 Q Q Q Q Q $0.00 $0 Q Q Q Q Q $0.00 Revenue Average realized silver price Mine operating earnings before non-cash items Average realized silver price Revenue largely reflects metal prices; Gross profit also impacted by significant reduction in cash cost Maintained strong balance sheet; No debt TSX: GPR NYSE MKT: GPL 5

6 Financial Summary in US$000s except amounts per share and per ounce Q Q Q Q Q Revenue $ 12,371 $ 12,515 $ 15,631 $ 19,596 $ 14,139 Mine operating earnings before noncash before non-cash items 1 $ 5,445 $ 4,476 $ 7,230 $ 10,087 $ 5,935 Net income (loss) $ 3,040 $ (1,498) $ 2,130 $ (1,332) $ (3,418) Adjusted EBITDA 1 $ 2,134 $ 1,376 $ 4,738 $ 7,545 $ 2,860 Earnings (loss) per share basic $ 0.02 $ (0.01) $ 0.01 $ (0.01) $ (0.02) Earnings (loss) per share diluted $ 0.02 $ (0.01) $ 0.01 $ (0.01) $ (0.02) Total cash cost per Ag oz 1 $ 3.54 $ 5.83 $ 3.30 $ 1.72 $ 4.20 All-in sustaining cost per Ag oz 1 $ $ $ $ 7.19 $ 9.25 Average realized silver price 2 $ $ $ $ $ The Company has included the non-ifrs performance measures cost per tonne milled, cash cost, AISC, mine operating earnings before non-cash items, cost of 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 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. 2. Average realized silver price is prior to smelting and refining charges. TSX: GPR NYSE MKT: GPL 6

7 Mexico & Peru Top two silver producing countries in the world Favourable political & mining jurisdictions TSX: GPR NYSE MKT: GPL 7

8 Guanajuato District (Ag-Au) Historically one of Mexico s most prolific mining districts with past production of more than one billion Ag oz over 400 years Expanded production at Guanajuato Mine Complex (GMC), developing new mines and exploring the district Commercial production at San Ignacio commenced June 2014, lifting GMC throughput to 950-1,050 tpd Excellent infrastructure. Other projects in the district have potential to be satellite operations TSX: GPR NYSE MKT: GPL 8

9 Guanajuato Mine (Ag-Au) Historic underground mine with two operating shafts & three 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 * For details on Mineral Resource Estimates, refer to slide 30 TSX: GPR NYSE MKT: GPL 9

10 Guanajuato Mine Complex (Ag-Au) 1 Q Metal Production (Ag eq oz 1,2 ) 727,372 Silver Production (Ag oz 1 ) 364,995 Recoveries Ag/Au (%) 88.8 / 85.0 Average Grades Ag/Au (g/t) 155 / 2.30 Ore processed (tonnes) 82,456 Cash Cost/Ag oz 3,4 $ 2.48 All-in Sustaining Cost/Ag oz 3,4 $ 7.59 Accounted for 77% of total production in 2016 ¹ 1. Includes all 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 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. 4. As at March 31, TSX: GPR NYSE MKT: GPL 10

11 San Ignacio Mine (Ag-Au) Ramp access from surface Ore trucked 22 km to Cata Plant in Guanajuato Accounted for 57% of the total ore processed at the GMC in Q Significant potential for resource expansion over 4km strike length Currently producing at approximately 600 tpd TSX: GPR NYSE MKT: GPL 11

12 Topia Mine (Ag-Pb-Zn-Au) Property covers most of district more than 6,500 hectares High grade, narrow vein underground mining with central plant Operating 9 separate mines provides flexibility Ability to expand production at profitable mines; Can temporarily close others as needed Plant was temporarily shut down Dec/ 16 - Mar/ 17 for maintenance & new tailings facility construction Lead and zinc concentrates sold to metal trader in Mexico TSX: GPR NYSE MKT: GPL 12

13 Topia Mine (Ag-Pb-Zn-Au) Upgraded plant and new tailings handling facility currently undergoing commissioning Mining continued throughout the shut down with ore being stockpiled for later processing TSX: GPR NYSE MKT: GPL 13

14 2017 Outlook Production and cash cost guidance Q Actual 2017 Guidance Total silver equivalent ounces 1 730,186 4,000,000 4,100,000 Total payable silver ounces 344,995 1,950,000 2,000,000 Cash Cost per silver payable ounce (US) 2 $ 3.54 $ 5.00 $ 6.00 AISC (US) 2 $ $ $ Silver equivalent ounces for 2017 guidance have been calculated using a 70:1 Au:Ag ratio, and ratios of 1: and 1: for the US dollar price of silver ounces to the US dollar price for lead and zinc pounds, respectively. 2. 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. TSX: GPR NYSE MKT: GPL 14

15 Project Pipeline ~ 10 Years 5-10 Years 3-5 Years 1-3 Years Present Early Stage Exploration Advanced Stage Exploration Development Advanced Stage Development Production Santa Rosa El Horcon Coricancha Guanajuato Mine San Ignacio Mine Topia Mine Pipeline of projects at various stages of exploration & development provides growth opportunities Fully financed to bring Coricancha and El Horcon into production TSX: GPR NYSE MKT: GPL 15

16 Pipeline to Production Coricancha represents a near-term (~18 mo.) production opportunity that will provide a foundation for future growth in Peru Acquisition expected to close in Q2 2017, with exploration & development program to begin immediately thereafter 1 Production history at Coricancha indicates potential for approx. 3 million Ag eq oz per year at full capacity Significant historical reserve & resource base, to be updated in Q3 2017, followed by prefeasibility study ( PFS ) Drilling at El Horcon in 2017 to better define resource & consider production decision 1. Closing is subject to customary closing conditions. TSX: GPR NYSE MKT: GPL 16

17 Coricancha Mine Complex 1 (Au-Ag-Pb-Zn-Cu) Underground mine placed on care & maintenance in August km east of Lima in prolific mining district Operating history dating back to 1906 Fully permitted & operational 600 tpd processing plant and gold bio-leaching facility 1. Acquisition is subject to closing 80% precious metals, 20% base metals by value GPR to update Mineral Resource Estimate in Q & conduct PFS TSX: GPR NYSE MKT: GPL 17

18 Coricancha Mine Complex (CMC) Historical Reserves & Resources¹ Proven & Probable Reserves Measured & Indicated Resources Inferred Resources Tonnes 640, ,000 4,880,000 Au (g/t) Ag (g/t) Pb (%) Zn (%) Cu (%) Silver Equivalent Ounces (Ag Eq oz) 13,500,000 21,960, ,600, Effective date December 31, 2012; Based upon $22.00/oz silver, $1,300/oz gold, 6,300/tonne copper, $2,250/tonne lead and zinc. M&I Resources are inclusive of Reserves TSX: GPR NYSE MKT: GPL 18

19 Coricancha Acquisition Agreement Share Purchase Agreement whereby Great Panther Silver Peru, will acquire Nyrstar Coricancha, the owner of a 100% interest in the CMC GPSP to pay US$100,000 cash on closing (Q2 2017) Nyrstar may be paid 15% of annual free cash flow, up to US$10 million, after GPSP has recouped its investment Nyrstar will cover cost of reclamation of certain tailings facilities, up to US$20 million, and associated fines up to US$4 million Nyrstar will cover US$9.7 million closure bond for three years TSX: GPR NYSE MKT: GPL 19

20 Capital Structure Shares issued 1 167,718,083 Fully diluted 1 185,330,635 Institutional ownership ~30% Market capitalization CA $285M / US $ day daily average trading volume 52-week trading range: Cash position 1 Net working capital 1 1. As at March 31, 2017 TSX NYSE MKT ~2.2M shares CA $ $2.95 US $ $2.28 US $53.2M (no debt) US $69.3 M Updated on May 24, 2017 Analyst Coverage: Euro Pacific Capital Inc.; Rodman & Renshaw; Hallgarten & Company; Noble Financial TSX: GPR NYSE MKT: GPL 20

21 One Year Stock Performance TSX: GPR NYSE MKT: GPL TSX: GPR NYSE MKT: GPL 21

22 12 Month Peer Comparison 150% Change Sierra Metals 129% Excellon 26% Avino 12% Silver 4% Americas Silver 8% Impact 3% Endeavour -13% Great Panther -14% Fortuna -19% 50% -50% TSX: GPR NYSE MKT: GPL 22

23 Leveraged To Silver 900% 700% 500% 300% 100% -100% Great Panther Silver TSX: GPR NYSE MKT: GPL 23

24 Why Great Panther Silver? Low cost producer with strong leverage to silver price Strong balance sheet, no debt seeking acquisitions Successfully grown production while reducing unit costs Expanding into Peru with potential to increase production by 75% Excellent liquidity on NYSE MKT and TSX TSX: GPR NYSE MKT: GPL 24

25 APPENDIX

26 Directors & Senior Management Team Board of Directors R.W. (Bob) Garnett, CPA, CA, ICD.D, Chair Robert Archer, P. Geo. Ken Major, P. Eng. John Jennings, MBA, CFA W. James Mullin, B.Sc. Jeffrey R. Mason, CA, ICD.D Elise Rees FCPA, FCA, ICD.D Chief Operating Officer Ali Soltani President & CEO Co-founder Robert Archer P. Geo Chief Financial Officer Jim Zadra CPA, CA, MBA V.P. Corp. Development Samuel Mah P. Eng. V.P. Exploration Matthew Wunder P. Geo. TSX: GPR NYSE MKT: GPL 26

27 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 Awarded distinction as a Socially Responsible Company by CEMEFI, Centro Mexicano para la Filantropía, for a seventh consecutive year in 2017 Strong ethics and we abide by all rules and regulations that apply to our business TSX: GPR NYSE MKT: GPL 27

28 Operational Summary Consolidated Operations Q Q Q Q Q Silver ounces 366, , , , ,472 Gold ounces 5,178 5,206 5,423 6,010 5,599 Lead tonnes Zinc tonnes Tonnes Milled 82,656 92,869 95,282 99,905 88,683 Silver equivalent ounces 1,2 730, , ,632 1,037,728 1,009, Silver equivalent ounces for 2017 were calculated using a 70:1 Ag:Au ratio, and a ratio of 1: and 1: 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: for the price/ounce of silver to lead and zinc price/pound respectively TSX: GPR NYSE MKT: GPL 28

29 Drilling Summary Guanajuato 26,237 m 13,270 m 13,025 m 9,670 m 10,975 m Topia 2,162 m 1,903 m - - 2,500 m San Ignacio 1,144 m 3,827 m 4,657 m 6,015 m 21,025 m Coricancha - - 2,323 m 3,551 m 7,800 m Santa Rosa ,000 m El Horcon 2,156 m ,500 m Total 31,699 m 19,000 m 20,005 m 19,236 m 44,800 m 2017 drilling focused on increasing resources and exploring new zones TSX: GPR NYSE MKT: GPL 29

30 Mineral Resources Measured Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (oz) Au (oz) Ag Eq Oz San Ignacio 408, ,525,584 37,760 4,191,435 Guanajuato 114, ,318 5,647 1,372,961 Topia 180, ,515,000 8,300 6,000,200 Total Measured 6,014,902 51,707 11,564,596 Indicated San Ignacio 133, ,762 10,987 1,229,462 Guanajuato 36, ,876 1, ,218 Topia 165, ,433,000 6,200 5,570,000 Total Indicated 4,140,638 18,580 7,151,680 Total Measured & Indicated 10,155,540 70,287 18,716,274 Inferred San Ignacio 645, ,519,826 44,551 5,665,137 Guanajuato 147, ,220 10,095 1,324,867 Topia 357, ,807,500 15,060 11,050,000 El Horcon 162, ,094 17,942 2,092,913 Total Inferred 10,337,640 87,648 20,132,917 NOTE: Mineral Resource Estimates use an effective date of August 31, 2016; and all used a metal price outlook of US$18.00/oz silver and US$1,300/oz gold.. Topia, November 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 same metal pricing. San Ignacio, December US$15.00/oz Ag; US$1100/oz Au. Silver equivalent calculations for El Horcon include lead content but not zinc, as the zinc would not be recovered in the Guanajuato plant. Robert Brown, P. Eng. is the Qualified Person under NI for Guanajuato, Topia, San Ignacio and El Horcon. TSX: GPR NYSE MKT: GPL 30

31 W W W. G R E A T P A N T H E R. C O M Spiros Cacos Director, Investor Relations scacos@greatpanther.com