Great Panther Silver (GPR-T, GPL-X) has started shipping silver-gold pyrite concentrates from its Guanajuato mine to a new buyer in Mexico. Shipments had been delayed because an overseas smelter with which Great Panther had a one-year contract was fully supplied with concentrate and had reduced its purchases from Guanajuato.
Now Great Panther is trucking its concentrates to another mine operator in Mexico that has a plant that produces doré bars (containing mostly silver and gold), which are marketed to a refinery where fine silver and gold is produced.
The plant has surplus capacity over the requirements of its own mine and testwork found it was suitable for the recovery of gold and silver from Guanajuato concentrates, the company says.
Robert Archer, the company’s president and CEO, said the agreement will enable Great Panther to sell its concentrate inventory on hand through the balance of the year at “potentially higher” silver prices.
In Toronto the news sent shares of Great Panther up 3.7% or 10¢ to close at $2.81 per share.
“Given the current state of the market and the bullish outlook on silver prices, the delayed shipment seems like it may have been a blessing in disguise as the additional new sales are expected to return strong revenues in the third and fourth quarters,” Canaccord Wealth Management wrote in a morning note to clients.
Guanajuato is one of the most prolific and historic mines in Mexico with past production of more than 1 billion oz. silver since the year 1600, the company states on its website.
The mine is Great Panther’s flagship operation and last year produced 1.53 million silver oz. and sold 1.43 million oz. at a cash operating cost of US$7.43 per oz. of silver, net of byproduct credits.
Guanajuato currently produces over 250 tonnes per month of silver-gold bearing pyrite concentrates.
Elsewhere in Mexico, Great Panther operates the Topia silver-gold-lead-zinc mine in the state of Durango.
Be the first to comment on "Great Panther re-starts concentrate shipments"