JOHANNESBURG (miningweekly.com) – Junior silver miner Great Panther Silver reported a 20% decrease in revenue for the six months ended June 30, 2017, primarily attributable to the 14% decrease in metal sales volumes, which had the effect of reducing revenue by $3.1-million.
Metal sales volumes were lower, despite the increase in production during the second quarter of 2017.
Lower realised precious metal prices also accounted for a reduction in revenue of about $0.9-million.
Production costs for the second quarter of 2017 increased by $0.8-million compared to the second quarter of 2016.
Adjusted earnings before interest, taxes, depreciation and amortisation decreased by $6.1-million in the second quarter, compared to the same period in 2016.
"Net income for the three- and six-month periods ended June 30, 2017 of $0.8 million and $3.9 million was recorded, reflecting improvements from losses in the comparative periods," CEO Robert Archer said in a statement on Thursday.
Exploration, evaluation and development expenses increased by $0.9-million mainly owing to an increase in exploration drilling at San Ignacio and Topia, in Mexico, compared to the same period in 2016.
These factors were partially offset by a reduction in spending at the Coricancha Mine Complex (CMC) relative to the second quarter of 2016, as the company changed its focus from the active evaluation of the property during the second quarter of 2016, to negotiation and closing of the acquisition of the CMC during the second quarter of 2017.
In addition, the second quarter of 2016 reflected an impairment charge related to the termination of the company's original option agreement associated with the CMC, whereas no such charge was taken in the second quarter of 2017.
All-in sustaining costs (AISC) per payable silver ounce for the second quarter of 2017 came in at $14.93, bringing the AISC for the six months ended June 30 to $16.76, and closer to the 2017 full-year guidance.
“As the company has now completed the construction of the Topia tailings filtration plant and plant upgrades, it expects AISC to continue to decrease from levels reported in the first and second quarters, which reflected capital expenditures associated with the Topia project,” Archer said.