Great Panther 3Q12 net income drops 49% year-on-year

Vancouver-based Great Panther Silver (TSX: GPR, Amex: GPL) reported 3Q12 net income of Cdn$1.76mn (US$1.76mn), down 49% from Cdn$3.41mn in the same quarter last year. Revenue dropped 6% to Cdn$15.3mn from Cdn$16.2mn in 3Q11, gross profit fell 30% to Cdn$5.79mn and adjusted Ebitda was down 36% to Cdn$4.96mn, according to the firm's latest results report. Great Panther attributed the fall in gross profits to lower mine revenues and higher cost of sales. Lower gross profit along with higher administration expenses and exploration costs led to the reduction in net income, the report said. Third quarter silver production rose 8% year-on-year to 371,857oz, while silver equivalent production rose 22% to 592,586oz. Total cash cost per silver ounce rose 46% to US$13.16, while the average realized silver price fell 10% to US$31.92. Great Panther owns the Topia mine in Mexico's Durango state and Guanajuato in the state of the same name. "Grade variability continues to be a challenge at both mines, especially at Topia, and is a major focal point for our mine planners in order to reduce our unit cash costs going forward," CEO Robert Archer said. Great Panther signed a definitive agreement to purchase certain surface rights on its wholly owned San Ignacio property in Mexico's Guanajuato state in last August. The firm also acquired a 100% interest in the El Horcón silver-gold project in Mexico's Jalisco state in September. The company maintained it 2012 production guidance of 1.55Moz silver and 2.4Moz silver equivalent. However, Great Panther raised its annual cost per silver ounce guidance to US$11-12 from US$9.5-10.5, the report said. To see the full report, go to this link