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Great Panther (GPL) Q1 Earnings Meet Estimates, Revenues Beat

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Great Panther Mining Limited (GPL - Free Report) reported an adjusted loss per share of 2 cents in first-quarter 2022, in line with the Zacks Consensus Estimate. The company had reported earnings of 1 cent per share in the year-ago quarter. Lower metal sales volume, somewhat offset by higher metal prices, led to the weak performance in the quarter.
 
Great Panther’s revenues plunged 36% year over year to $33.4 million in the quarter under review. The top-line figure, however, beat the Zacks Consensus Estimate of $32 million. Lower metal sales volumes due to low production, offset partially by higher realized prices for gold, lead and zinc, led to lower revenues in the quarter.

Great Panther had earlier announced that it produced 17,913 gold-equivalent ounces in the first quarter of 2022, 41% lower than the year-ago quarter due to lesser output at the Tucano mine in Brazil and the Topia mine in Mexico. The figure included 14,319 ounces of gold and 173,698 silver ounces.

Great Panther Mining Limited Price, Consensus and EPS Surprise

 

Great Panther Mining Limited Price, Consensus and EPS Surprise

Great Panther Mining Limited price-consensus-eps-surprise-chart | Great Panther Mining Limited Quote

The company stated that it remains on track to return to a normalized production rate in the second half of the year and affirmed its consolidated production guidance at 100,000-119,000 gold-equivalent ounces for 2022. In the second half of 2022, Tucano is expected to contribute at least 65% of the guidance.

The average realized silver price was $24.10 per ounce in the quarter, down 5% year over year. The average realized gold price per ounce was $1,885 compared with $1,755 per ounce in the first quarter of 2021.

Operational Update

Significant stripping activity and low production of gold ounces in the quarter resulted in higher unit costs than the prior-year quarter. However, these costs are expected to normalize in the second half of 2022.

The company recorded cash costs of $1,725 per gold ounce sold compared with $954 in the prior-year quarter. Consolidated all-in sustaining costs were $2,740 per gold ounce sold, 76% higher than the prior-year quarter.

Great Panther reported a mine-operating loss of $3.4 million in the quarter against the mine operating earnings of $11 million in the prior-year quarter.

Financial Position

The company ended the first quarter of 2022 with $33.3 million cash in hand, lower than $47.7 million at the end of 2021. It used $8.6 million of cash in operating activities in the first quarter of 2022 compared with the prior-year quarter’s use of $1.6 million.

Zacks Rank & Share Price Performance

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Great Panther currently carries a Zacks Rank #3 (Hold).
 
The company’s shares have slumped 79.6% in a year compared with the industry’s decline of 47.4%.

Some better-ranked stocks in the basic materials space are Steel Dynamics, Inc. (STLD - Free Report) , Commercial Metals Company (CMC - Free Report) and Nutrien (NTR - Free Report) .

Steel Dynamics, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 18.5% for the current year. The Zacks Consensus Estimate for STLD's current-year earnings has been revised 32.5% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Steel Dynamics beat the Zacks Consensus Estimate for earnings in each of the last four quarters, the average surprise being 2.5%. STLD has gained around 17% in the past year.

Commercial Metals, presently flaunting a Zacks Rank #1, has a projected earnings growth rate of 78.2% for the current fiscal year. The Zacks Consensus Estimate for CMC’s current fiscal year’s earnings has been revised 31.9% upward over the past 60 days.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 16%. CMC has gained around 12% in a year.

Nutrien, sporting a Zacks Rank #1 at present, has an expected earnings growth rate of 42.8% for the current year. The consensus estimate for NTR’s earnings for the current year has been revised upward by 37% in the past 60 days.

Nutrien beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 5.8%. NTR has rallied around 61% in a year.