Great Panther Mining Limited (GPL) stock declined in the premarket following the announcement of third-quarter 2021 financial results. GPL stock price saw a downtrend of 8.58% to drop at $0.40 a share at the time of this writing. The stock was also gloomy in the previous trade and went down by 0.63% at closing. Let’s discuss more about this stock.
Third Quarter 2021 Financial Results:
- Great Panther stock reported $38.4 million in revenue in the third quarter of 2021. This represents a 50% decrease in revenue as compared to the same quarter of last year. The decrease in the revenue is mainly due to low metal sales volume and low metal prices.
- GPL stock suffered $7.1 million in mine operating loss in the recently reported quarter. The compares to mine operating earnings of $31.9 million in the same tenure of the previous year.
- GPL stock suffered $18.0 million in a net loss in the third quarter of 2021 as compared to net income of $18.6 million in the same tenure of the previous year.
- Adjusted net loss of the GPL stock reached $17.0 million in the three months ended September 30, 2021, as compared to $21.1 million adjusted net income in the third quarter of 2020.
- The company recorded negative $9.8 million and $8.8 million of EBITDA and adjusted EBITDA respectively in the reported quarter as compared to $32.5 million and $34.9 million, respectively for the same tenure of the previous year.
Operational View of GPL stock:
GPL stock produced 16,325 ounces of gold in the third quarter of 2021 at Tucano. The production significantly decreased as compared to 31,803 ounces in the same period of the previous year. Many factors contributed to this decrease including less equipment, completion of the UCS open-pit pushback, and more than average rainfall.
GPL stock sold 17,940 ounces of gold in the three months ended September 30, 2021. In the third quarter of 2020, the company sold 35,179 ounces of gold. Silver sales reached 258,664 ounces as compared to 361,143 ounces in the same quarter of last year.
Cash cost per gold ounce jumped from $712 per gold ounce in the third quarter of 2020 to $1,801 per gold ounce in the third quarter of 2021. AISC per gold ounce was $2,247 as compared to $1,023 in the same quarter of last year. This does not include corporate general and administrative expenses.
The sentiment is not positive for the GPL stock as investors did not like the third quarter of 2021 financial results. The financial results reflect a significant decrease in the revenue and production of gold in the reported period. The GPL stock has given the production guidance between 70,000 and 80,000 Au oz for 2021. In a nutshell, investors should be mindful of all the facts and figures before making any decision.