Great Panther Silver Ltd (USA) (NYSEMKT:GPL) Sinks On Labour Trouble
Great Panther Silver Ltd (USA) (NYSEMKT:GPL) share holders were in for a rude shock on 10th March as the stock plummeted close to 8.7 percent during trading through the day yesterday. The sell off occurred when the firm reported weak results from its 4Q and full year 2014 operations, followed by an operational update which announced the continued disruption in production and mining activity at its Guanajuato Mine Complex in Mexico.
4Q Earnings Call Highlights
Gross profits for the full year came in at $11.3 million which was a big increase over the $2.9 million achieved during the first half of the 2013 fiscal. Cash flow for the full year came in at $6 million, where as for 1H13, the cash flow had hit a glass ceiling at $2.7 million.
Great Panther Silver Ltd (USA) (NYSEMKT:GPL) President and CEO Robert Archer while explaining the steps the company had taken to streamline operations, has been quoted to have said that, “We are pleased to show continued reduction in our costs and improvements in our operating cash-flow, adjusted EBITDA and free cash-flow from the levels we saw in the first half of the year,” These improvements were achieved through a focus on expenditure reductions, efficiency improvements and grade control initiatives.”
Production Increase in 1H14
He also credited his operations team for achieving a impressive 19 percent increase in production from the full year 2013 operations and also for reducing the development time of its San Ignacio project which is expected to commence production in May of this year.
Trouble At Its Guanajuato Mine
In spite of the better than expected operational results from 4Q, the markets yesterday were spooked by Great Panther Silver Ltd (USA) (NYSEMKT:GPL) announcement that on 9th March, close to 60 unauthorized people gained access to its plant facility at Guanajuato Mine and have been holding on to the facility illegally since then.