Great Panther Mining Ltd has told investors it continues to focus on improving operations at the Tucano gold mine in Brazil as the company posted second-quarter financial results to end-June 2022.
The metals miner reported reduced revenue and increased losses in the three-month period, compared to the year-earlier period, and said it would have to revise its cost guidance upwards for the full year, although it maintained its output forecast for 2022.
At Tucano, it said it expects to achieve a steady-state of production by the fourth quarter.
"Inflationary pressures and the necessary acceleration of certain capital programs affected our financial results this quarter, however as previously guided we continue to expect improvements in the coming quarters as we return to a normalized rate of production in the second half," Alan Hair, Great Panther's interim CEO, explained in a statement. "We expect the ramp up to steady-state production to continue through the third quarter and a regular run rate to be achieved by the fourth quarter.
READ: Great Panther sees 2Q metal production of 20,187 gold equivalent ounces, including 16,889 gold ounces and 159,529 silver ounces
"From a cost perspective, we have had to adjust our guidance for the year, given the aforementioned factors, and are adapting our plans for capital expenditures to preserve capital where possible while focusing our efforts on improving operations and efficiencies at Tucano," he added.
Great Panther expects to produce between 85,000 ounces (oz) and 100,000 oz of gold in 2022, while it is guiding for all-in-sustaining-costs (AISC) of between US$2,200 and US$2,300 per ounce sold for the year, up from between US$1,600 and US$1,700 previously.
In the quarter, the group's Q2 2022 net loss came in at US$12.1 million, compared with a loss of US$8.7 million in Q2 2021, while revenue was US$30 million (Q2 2021: US$39 million).
In the quarter, the company generated 16,629 ounces of gold compared to 20,696 ounces in the year-earlier quarter.
Great Panther Mining is a precious metals producer focused on its Tucano gold mine, where it controls a land package covering nearly 200,000 hectares in the prospective Vila Nova greenstone belt.
Contact the author at giles@proactiveinvestors.com