News

January 12, 2010

Great Panther Reports Record Silver Production From Its Mexican Mines, But You Ain’t Seen Nothing Yet!

By Alastair Ford

What a difference a year makes. Coming into 2009 Great Panther’s Bob Archer was contemplating headcount and production cuts, slashing all reasonable costs just to stay afloat. Coming into 2010, and Bob’s announcing record silver production from Great Panther’s Mexican silver mines, with much more to come over the next couple of years. A quick look at how the silver price has fared over the past two years provides part of the explanation. From trading at a very healthy US$16 an ounce as 2008 opened, the silver price had taken a severe tumble by the end of that year in the wake of the credit crunch, and was bumping along at under US$10 as 2009 loomed. But as the recovery got underway properly it gradually recovered all of that lost ground, and then some, and is currently sitting at around US$18.50. As Bob so pertinently observes when he picks up the phone for a quick chat in between meetings, putting out record production numbers in that sort of silver price environment is especially satisfying.

So where has it all gone so right for Great Panther over the last 12 months? The answers to that question are not complicated, but first, a caveat – the financials aren’t due until March, so the real story won’t be fully nailed till then. Still, at just over 2.2 million silver equivalent ounces, production during 2009 was up by 22 per cent on 2008 numbers, and beat the company’s own target by a nice-looking six per cent. That news was enough to bring cheer to the markets, and by mid-morning as...