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Great Panther (GPL) Q2 Earnings & Revenues Miss Estimates

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Great Panther Mining Limited reported an adjusted loss per share of 26 cents in second-quarter 2022, wider than the Zacks Consensus Estimate of a loss per share of 16 cents. The company reported a loss of 30 cents per share in the year-ago quarter. Inflationary pressures and lower metal sales volumes impacted earnings in the quarter under review despite higher realized metal prices.

Great Panther’s revenues plunged 23% year over year to $30 million in the quarter under review. The top-line figure missed the Zacks Consensus Estimate of $36 million. Lower metal sales volumes due to low production were offset partially by higher realized prices for gold. GPL produced 16,629 ounces of gold in the quarter under review compared with 20,696 ounces in the second quarter of 2021. The average realized gold price per ounce was $1,865 compared with $1,815 per ounce in the second quarter of 2021.

Operational Update

The company recorded cash costs of $1,575 per gold ounce sold compared with $1,617 in the prior-year quarter. Consolidated all-in sustaining costs were $3,080 per gold ounce sold, 39% higher than the prior-year quarter.

Great Panther reported a mine-operating income of $0.1 million in the quarter against the mine operating loss of $2.7 million in the prior-year quarter. EBITDA was a negative $5 million compared with a negative $0.9 million in the last-year comparable quarter.

Financial Position

The company ended the second quarter of 2022 with $21 million cash in hand, lower than $47.7 million at the end of 2021. It generated $6.9 million of cash from operating activities in the second quarter of 2022 compared with the prior-year quarter’s $4.3 million.

Other Updates

Great Panther has completed the previously announced sale of its subsidiary Minera Mexicana El Rosario S.A. de C.V. ("MMR"), which comprises the Guanajuato Mine Complex, the Topia mine, and the El Horcón and Santa Rosa projects in Mexico. This is a strategic transaction for GPL as it marks an important step toward becoming a gold company focused on maximizing the potential of the Tucano Gold Mine. The sale of the silver mines in Mexico will enable Great Panther to focus on maximizing the full potential of the Tucano Gold Mine in Brazil.

Guidance

The company affirmed its gold production guidance at 85,000 to 100,000 ounces in 2022. In the second half of 2022, Tucano is expected to contribute at least 65% to the guidance.

Share Price Performance

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The company’s shares have plunged 77.2% in a year compared with the industry’s decline of 27%.

Zacks Rank & Stocks to Consider

Great Panther currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks worth considering in the basic materials space include Cabot Corporation (CBT - Free Report) , Ashland Global Holdings Inc. (ASH - Free Report) and Albemarle Corporation (ALB - Free Report) .

Cabot, currently sporting a Zacks Rank #1 (Strong Buy), has an expected earnings growth rate of 22.5% for the current fiscal year. The Zacks Consensus Estimate for CBT's earnings for the current fiscal has been revised 0.8% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cabot’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 16.2%. CBT has gained around 35% over a year.

Ashland, currently carrying a Zacks Rank #2 (Buy), has a projected earnings growth rate of 50.9% for fiscal 2022. The Zacks Consensus Estimate for ASH’s fiscal 2022 earnings has been revised 10.5% upward in the past 60 days.

ASH’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once. It has a trailing four-quarter earnings surprise of roughly 1.82%, on average. ASH shares are up around 22.1% in a year.

Albemarle has a projected earnings growth rate of 247% for the current year. The Zacks Consensus Estimate for ALB’s current-year earnings has been revised 7.8% upward in the past 60 days.

Albemarle’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average being 20%. ALB has gained roughly 18% in a year. The company has a Zacks Rank #2.


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