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Great Panther Silver Reports First Quarter 2012 Financial Results

GREAT PANTHER SILVER LIMITED(TSX:GPR)(NYSE Amex:GPL) ("Great Panther" or the "Company") today reported financial results for the Company's first quarter ended March 31, 2012. The full version of the Company's financial statements and management discussion and analysis can be viewed on the Company's website at or on SEDAR at All financial information is prepared in accordance with IFRS and all dollar amounts are expressed in Canadian dollars unless otherwise indicated.


  Q1 2012 Q1 2011Change


Q1 2011
(in 000s except amounts per share and per ounce)
Gross profit (Earnings from mining operations)$6,325$8,613-27%
Net income$4,683$7,009-33%
Adjusted EBITDA1$4,441$7,874-44%
Earnings per share - basic$0.03$0.06-50%
Earnings per share - diluted$0.03$0.05-40%
Silver ounces produced 359,526 410,640-12%
Silver equivalent ounces produced2557,667 607,225-8%
Silver payable ounces 316,641 348,439-9%
Total cash cost per silver ounce3$9.05$10.33-12%
Average revenue per silver ounce sold (USD)$32.65$38.54-15%
  1. "Adjusted EBITDA" is a non-IFRS measure in which standard EBITDA (earnings before interest, taxes, depreciation and amortization) is adjusted for share-based payments, foreign exchange gains or losses, and non-recurring items. Refer to the "Non-IFRS Measures" section for a reconciliation of standardized and adjusted EBITDA to the financial statements.
  2. Silver equivalent ounces in 2012 were established using prices of US$28 per oz, US$1,680 per oz, US$0.85 per lb, and US$0.85 per lb for silver, gold, lead & zinc, respectively, and applied to the recovered metal content of the concentrates that were produced by the two operations.
  3. "Cash cost per silver 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. Refer to the "Non-IFRS Measures" section.

FIRST QUARTER 2012 OPERATIONAL HIGHLIGHTS Gold production reached a record 2,729 ounces; an increase of 20% over the fourth quarter of 2011 and 18% over the first quarter of 2011. Metal production increased 2% to 557,667 silver equivalent ounces ("Ag eq oz") from the fourth quarter of 2011, but declined 8% from the first quarter of 2011. Silver production increased 1% to 359,526 ounces from the fourth quarter of 2011, but declined 12% from the first quarter of 2011. Lead and zinc production was 202 tonnes and 312 tonnes respectively. This compares to 212 tonnes of lead and 327 tonnes of zinc produced in the fourth quarter of 2011, and the 241 tonnes of lead and 345 tonnes of zinc in the first quarter of 2011.


  • Ore grades for the first quarter of 2012, at 213g/t Ag and 2.30g/t Au, represent a 21% increase over the average for 2011. Mining of the high grade Deep Cata and the gold-rich Santa Margarita ore bodies has already demonstrated the potential to build on this improvement. Further expansions of production from these areas are planned during 2012.

  • Plant metallurgy has already achieved record metal recovery and further improvements are anticipated with the addition of the re-grind mill at the Cata plant.

  • Plant capacity is more than sufficient to handle any increase in throughput.
  • The primary reason for the shortfall in production at Topia was a 20% reduction in ore grades in terms of silver equivalents for first quarter of 2012 as compared to first quarter of 2011. While ore grades were down for the quarter, grades improved in March to well above the average for 2011 and new vein developments support higher grades throughout 2012.

  • Plant modifications and efficiencies, including additional flotation cells, have been completed to facilitate improved metallurgical performance.

  • The extreme dry season affecting central Mexico, resulting in a water shortage, has caused plant capacity to be limited to 160 tonnes per day during the last month of the quarter, a reduction of almost 30%. Custom milling throughput has been reduced temporarily and any excess ore will be stockpiled for processing later in the year after the rainy season starts. There is currently no plant capacity shortfall anticipated for the remainder of the year.
2012 Production and Cash Cost per Ounce Guidance




Low Case


High Case
Tonnes milled 216,181 230,000 250,000
Silver ounces 1,495,372 1,720,000 1,900,000
Gold ounces 8,016 10,000 11,000
Lead tonnes 941 1,130 1,270
Zinc tonnes 1,314 1,500 1,630
Silver equivalent ounces 2,200,013 2,500,000 2,750,000
Cash cost per ounce (USD)$10.84$10.50$9.50





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'sFinancial Statements or the Annual Report on Form 20-F in hard copy, please contact the Company toll free at 1-888-355-1766 or 604-608-1766, or e-mail

For further information, please visit the Company's website at, e-mail

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 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 GuanajuatoandTopia Minesin 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 Report on Form 20-F for the year ended December 31, 2011and reports on Form 6-K filed with the Securities and Exchange Commissionand available at and Material Change Reports filed with the Canadian Securities Administrators and available at

(Expressed in thousands of Canadian dollars)
March 31, 2012 and December 31, 2011 (Unaudited)
  March 31,

  December 31,

Current assets      
 Cash and cash equivalents$40,322 $39,437 
 Marketable securities 106  80 
 Trade and other receivables 9,441  14,076 
 Income taxes recoverable 400  374 
 Inventories 6,631  4,591 
 Prepaid expenses, deposits and advances 2,882  1,732 
  59,782  60,290 
Non-current assets      
 Mineral properties, plant and equipment 49,377  41,946 
 Intangible assets 865  708 
  50,242  42,654 
 $110,024 $102,944 
Liabilities and shareholders' equity      
Current liabilities      
 Trade and other payables$6,168 $6,350 
 Finance lease obligations 77  130 
  6,245  6,480 
Non-current liabilities      
 Reclamation and remediation provision 2,097  2,154 
 Deferred tax liability 3,900  1,824 
  5,997  3,978 
Shareholders' equity      
 Share capital 122,110  121,536 
 Reserves 6,504  6,465 
 Deficit (30,832) (35,515)
  97,782  92,486 
 $110,024 $102,944 
(Expressed in thousands of Canadian dollars, except per share data)
For the three months ended March 31, 2012 and 2011 (Unaudited)
 2012  2011 
Revenue$13,625 $15,460 
Cost of sales      
 Production costs 5,835  5,831 
 Amortization and depletion 1,457  1,016 
 Share-based payments 8  - 
  7,300  6,847 
Gross profit 6,325  8,613 
General and administrative expenses      
 Administrative expenses 2,851  1,790 
 Amortization and depletion 33  26 
 Share-based payments 130  - 
  3,014  1,816 
Exploration and evaluation expenses 592  132 
Income before the undernoted 2,7 19  6,665 
Finance and other income (expense)      
 Interest income 173  54 
 Finance costs (10) (267)
 Foreign exchange gain 3,655  469 
 Other income 94  167 
  3,912  423 
Income before income taxes 6,631  7,088 
Income tax expense      
 Current -  (79)
 Deferred (1 ,948) - 
  (1 ,948) (79)
Net incomefor the period$4, 683 $7,009 
Other comprehensive income (loss), net of tax      
 Foreign currency translation 136  300 
 Change in fair value of available-for-sale financial assets 17  (78)
  153  222 
Total comprehensiveincome for the period$4, 836 $7,231 
Earnings per share      
 Basic$0.03 $0.06 
 Diluted$0.03 $0.05 
(Expressed in thousands of Canadian dollars)
For the three months ended March 31, 2012 and 2011 (Unaudited)
  2012  2011 
Cash flows from operating activities      
Net income for the period$4,683 $7,009 
Items not involving cash:      
 Amortization and depletion expense 1,490  1,042 
 Unrealized foreign exchange (gains) losses (3,196) 53 
 Deferred income taxes 1,948  - 
 Accretion on reclamation and remediation provision 7  10 
 Share-based payments 138  - 
 Interest accretion on convertible loan notes -  239 
 Gain on disposal of mineral properties, plant and equipment (15) - 
  5,055  8,353 
Interest received 151  54 
Interest paid (3) (18)
Income taxes paid (252) (46)
Changes in non-cash working capital:      
 Trade and other receivables 4,484  (4,577)
 Income taxes recoverable (26) (18)
 Inventories (1,855) (750)
 Prepaid expenses, deposits and advances (1,150) (985)
 Trade and other payables 20  658 
 Current tax liability -  95 
 Net cash from operating activities 6,424  2,766 
Cash flows from investing activities:      
 Intangible assets (200) (45)
 Mineral properties, plant and equipment (6,072) (4,193)
 Proceeds from disposal of mineral properties, plant and equipment 17  - 
 Restricted cash -  54 
 Net cash used in investing activities (6,255) (4,184)
Cash flows from financing activities:      
 Repayment of capital lease obligations (53) (139)
 Repayment of promissory notes -  (94)
 Repayment of convertible loan notes -  (61)
 Proceeds from exercise of options 321  1,370 
 Proceeds from exercise of warrants -  1,603 
 Net cash from financing activities 268  2,679 
Effect of foreign currency translation on cash 448  (62)
Increase in cash and cash equivalents$885 $1,199 
Cash and cash equivalents, beginning of period 39,437  13,967 
Cash and cash equivalents, end of period$40,322 $15,166 
Contact: Rhonda Bennetto
Company Name: Great Panther Silver Limited
Contact Title: Vice President Corporate Communications
Phone: 1-888-355-1766

Contact: Martin Carsky
Company Name: Great Panther Silver Limited
Contact Title: Executive Vice President & CFO
Phone: 1-888-355-1766
Average: 4 (1 vote)

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