Great Panther Reports Lower ProductionBy Paloma Duran | Tue, 10/12/2021 - 11:05
Great Panther Mining has announced its 3Q21 production results from its three mines: Tucano in Brazil and Topia and the Guanajuato Mining Complex (GMC) in Mexico. The company announced that all its assets had problems that led to lower production rates, as a result, its guidance for 2021 will be reviewed to assess whether adjustments are required.
The company announced that during 3Q21 its consolidated metal production was 22,444 oz of gold equivalent, inclusive of 18,423 oz of gold and 280,245 oz of silver. The company explained that its production was 44 percent lower than in 3Q20, mainly because its Tucano asset suffered maintenance problems.
Rob Henderson, Great Panther President and CEO, explained that 3Q21 production was lower than expected because the Tucano mine contractor had maintenance issues, resulting in low fleet availability, lower tonnage mined, and a further delay in the completion of Urucum Central South activities. "The delay at UCS was also affected by significantly higher-than-average rainfall. However, the pushback at UCS is now complete and we are working with our mine contractor to resolve equipment availability issues," said Henderson.
Additionally, the company announced that production from its other assets, GMC and Topia, was 21 percent lower than expected. The company explained these projects were affected by the implementation of new labor laws in Mexico, which caused delays as contractors had to adjust to the new requirements. Furthermore, the tonnages available at GMC were lower than estimated.
The company also announced that it does not expect to receive approval to expand its tailings storage facility soon. As a result, it is currently evaluating processing GMC ore at third-party facilities next year and longer-term tailings storage solutions.
The company explained that all these problems have led the company to revise its 2021 guidance to assess whether adjustments to production and / or cost are required. However, the company said adjustments are likely to happen due to the low production achieved during the third quarter.