Corporate Presentation December 19, 2016

Transcription

1 Corporate Presentation December 19, 2016

2 DISCLAIMER This presentation contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Securities Act (Ontario) (together, "forward-looking statements"). Such forward-looking statements may include but are not limited to the Company's plans for production at its Guanajuato and Topia Mines in Mexico, exploring its other properties in Mexico, the overall economic potential of its properties, the availability of adequate financing and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to potential political risks involving the Company's operations in a foreign jurisdiction, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, the inability or failure to obtain adequate financing on a timely basis, and other risks and uncertainties, including those described in the Company's Annual Information Form for the year ended December 31, 2015 and Material Change Reports filed with the Canadian Securities Administrators available at and reports on Form 40-F and Form 6-K filed with the Securities and Exchange Commission and available at Statements concerning mineral reserve and resource estimates may also be deemed to constitute forward-looking statements to the extent that they involve estimates of the mineralization that will be encountered if the property is developed. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as expects, anticipates, plans, projects, estimates, assumes, intends, strategy, goals, objectives, potential or variations thereof, or stating that certain actions, events or results may, could, would, might or will be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements. Robert Brown, P. Eng. is the Qualified Person under NI for the projects discussed in this presentation. 2

3 CAUTIONARY NOTE TO U.S. INVESTORS The terms "Measured resource", "Indicated resource" and "Inferred resource" used in this document are Canadian mining terms as defined in National Instrument Standards of Disclosure for Mineral Projects ( NI ) and CIM Standards on Mineral Resources and Mineral Reserves. Mineral resources that are not mineral reserves have not been demonstrated to be economically and legally extractable. Mineral resource estimates do not account for mineability, selectivity, mining loss and dilution. It should not be assumed that all or any part of a resource will ever be converted to a reserve. The mineral resource estimates presented herein include Inferred mineral resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. There is also no certainty that these Inferred resources will be converted to Measured and Indicated resource categories through further drilling, or into mineral reserves once economic considerations are applied. We advise U.S. Investors that while the terms "Measured resource", "Indicated resource" and "Inferred resource" are recognized and required to be reported by Canadian regulations, the U.S. Securities and Exchange Commission ("SEC") does not recognize these terms and does not normally permit such terms to be used in reports and registration statements filed with the SEC. As such, information contained in this document concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements of the SEC. Inferred resources have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of a Measured, Indicated or Inferred resource will ever be upgraded to a higher category. U.S. investors are cautioned not to assume that any part or all of an Inferred mineral resource exists, or is economically or legally mineable. U.S. investors are also cautioned not to assume that any part or all of the mineral deposits in the Measured resource or Indicated resource categories will ever be converted into reserves. 3

4 BUILDING A FOUNDATION FOR GROWTH SILVER-GOLD PRODUCER STRENGTH DISCIPLINED GROWTH 90% precious metals Unhedged - No Royalties - No Streams Two 100% owned mining operations in Mexico; potential for production in Peru Strong balance sheet; no debt; $52.9M cash, $68.2M working capital 1 Significantly lowered cost/oz through higher grades and operational efficiencies Organic growth potential and seeking acquisitions 1. US Dollars; As at September 30,

5 MAINTAINING LOW COSTS $25.00 $25.00 $20.00 $15.00 $20.00 $15.00 $13.08 $ Guidance $11.97 $10.00 $8.14 $10.00 $10.49 $7.19 $5.00 $6.50 $4.20 $1.72 $3.30 $5.00 $- Q Q Q Q Q $- Q Q Q Q Q Total cash cost per Ag oz Average realized silver price All-in sustaining cost per Ag oz Average realized silver price Cost per ounce has improved due to stronger USD and higher by-product credits 5

6 RECENT FINANCIAL PERFORMANCE $25,000 $25.00 $12,000 $25.00 $20,000 $15,000 $10,000 $13.98 $13.57 $16.19 $17.82 $19.65 $20.00 $15.00 $10.00 $10,000 $8,000 $6,000 $4,000 $13.98 $13.57 $16.19 $ Guidance $19.65 $20.00 $15.00 $10.00 $5,000 $5.00 $2,000 $5.00 $- Q Q Q Q Q $- $- Q Q Q Q Q $- Revenue Average realized silver price Mine operating earnings before non-cash items Average realized silver price Solid revenue and gross profit achieved through increased production and significant reduction in cash cost Maintained strong balance sheet, no debt 6

7 San Jose Caylloma Consolidated Guanacevi Bolanitos El Cubo Consolidated La Encantada La Parilla Del Toro San Martin La Guitarra Santa Elena Consolidated Platosa Cosala Galena Consolidated Avino GMC Topia Consolidated AISC AMONGST OUR PEERS $25.00 FY AISC $20.00 $15.00 $10.00 Average Ag Spot Price $5.00 $- Fortuna Endeavour First Majestic Excellon Americas Silver Avino Silver Great Panther GPR s operations are outperforming many of our peers on AISC 7

8 FINANCIAL SUMMARY in US$000s except amounts per share and per ounce Q Q Q Q Q Revenue $ 15,631 $ 19,596 $ 14,139 $ 13,142 $ 12,863 Mine operating earnings before non-cash before non-cash items 1 $ 7,230 $ 10,087 $ 5,935 $ 3,760 $ 4,416 Net income (loss) $ 2,130 $ (1,332) $ (3,418) $ (3,725) $ (2,564) Adjusted EBITDA 1 $ 4,738 $ 7,545 $ 2,860 $ (428) $ 1,595 Earnings (loss) per share basic $ 0.01 $ (0.01) $ (0.02) $ (0.03) $ (0.02) Earnings (loss) per share diluted $ 0.01 $ (0.01) $ (0.02) $ (0.03) $ (0.02) Total cash cost per Ag oz 1 $ 3.30 $ 1.72 $ 4.20 $ 8.14 $ 6.50 All-in sustaining cost per Ag oz 1 $ $ 7.19 $ $ $ Average realized silver price 2 $ $ $ $ $ The Company has included the non-ifrs performance measures cost per tonne milled, cash cost, AISC, mine operating earnings before non-cash items, cost of sales before non-cash items and adjusted EBITDA throughout this document. Refer to the Non-IFRS Measures section of this MD&A for an explanation of these measures and reconciliation to the Company s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others. 2. Average realized silver price is prior to smelting and refining charges. 8

9 MEXICO Top silver producing country in the world 9

10 GUANAJUATO DISTRICT (Ag-Au) One of Mexico s most historic mining districts with past production of more than one billion Ag oz over 400 years Expanding production at Guanajuato Mine Complex (GMC), developing new mines and exploring the district Commercial production at San Ignacio commenced June 2014, lifting GMC throughput to 1,050 t/day Excellent infrastructure means that other projects in the district have potential to be satellite operations 10

11 GUANAJUATO MINE (Ag-Au) Historic underground mine with two operating shafts & three ramps Currently mining & developing to 600m depth on several zones over 4km strike length Higher cut-off grades & improvements in grade control have lowered costs Ag-Au concentrate shipped to smelters in Japan & Germany * For details on Mineral Resource Estimates, refer to slide 28 11

12 GUANAJUATO MINE COMPLEX (Ag-Au) 1 Accounted for 79% of total production in Q Metal Production (Ag eq oz 2 ) Silver Production (Ag oz 1 ) Q , ,598 Recoveries Ag/Au 88.9% / 85.8% Average Grades 164g/t Ag 2.36g/t Au Cash Cost/Ag oz 2,3,4 $0.15 All-in Sustaining Cost/Ag oz 2,3,4 $5.58 Ore processed (tonnes) 81, Includes all mill feed from San Ignacio. 2. Silver equivalent ounces for 2016 are calculated using a 70:1 Ag:Au ratio. 3. Cash cost per silver payable ounce and all-in sustaining cost per silver payable ounce ( AISC ) are non-ifrs performance measures. Refer to the Non-IFRS Measures section of the Company s MD&A for an explanation of these measures and reconciliation to the Company s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others. 4. As at September 30,

13 SAN IGNACIO MINE (Ag-Au) Ramp access from surface. Ore trucked 22km to Cata Plant in Guanajuato Accounted for 56% of the overall tonnes mined from the GMC in Q Significant potential for resource expansion over 4km strike length Currently producing at 550 tpd, expanding to approximately 700 tpd by year end 1. Silver equivalent ounces for 2016 are calculated using a 70:1 Ag:Au ratio. 13

14 TOPIA MINE (Ag-Pb-Zn-Au) Property covers most of district more than 6,500 hectares High grade, narrow vein underground mining with central plant Operating 9 separate mines provides flexibility Expanding production at profitable mines; Can temporarily close others as needed Lead and zinc concentrates sold to metal trader in Mexico Plant temporarily shut down due to maintenance & new TSF construction 14

15 TOPIA MINE (Ag-Pb-Zn-Au) Accounted for 21% of total production in Q Metal Production (Ag eq oz¹) Ag Production (Ag oz) Recoveries Average Grades Ag/Au Pb/Zn Q , , % / 54.3% 94.6% / 96.0% 322g/t Ag, 0.49g/t Au 1.92% Pb, 2.46% Zn Cash Cost/Ag oz 2,3 $13.25 All-in Sustaining Cost/Ag oz 2,3 $19.52 Ore processed (tonnes) 13, Silver equivalent ounces for 2016 are calculated using a 70:1 Ag:Au ratio, and ratios of 1: and 1:0.054 for the price/ounce of silver to lead and zinc respectively. 2. Cash cost per silver payable ounce and all-in sustaining cost per silver payable ounce ( AISC ) are non-ifrs performance measures. Refer to the Non-IFRS Measures section of the Company s MD&A for an explanation of these measures and reconciliation to the Company s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others. 3. As at September 30,

16 ANNUAL PRODUCTION GROWTH 4,500,000 4,000,000 3,500,000 3,187,832 4,159,121 Guidance 4,000,000-4,200, Guidance 3,000,000 2,840,846 2,500,000 2,000,000 2,200,013 2,378,603 1,500,000 1,000, , E 16

17 2016 OUTLOOK Production and Cash Cost Guidance FY 2015 Actual 2016 Original Guidance 2016 Revised Guidance Total silver equivalent ounces 1 4,159,121 4,000,000 4,200,000 No Change Cash Cost per silver payable ounce (USD) 2 $7.50 $5.00 $7.00 $4.00 $6.00 AISC (USD) 2, $13.00 $15.00 $12.00 $ Silver equivalent ounces for 2016 guidance have been calculated using a 70:1 Au:Ag ratio, and ratios of 1: for the US dollar price of silver ounces to the US dollar price for lead and zinc pounds, respectively. These ratios will be applied consistently for the reporting of silver equivalent ounce production for Cash cost and AISC are non-ifrs measures. Refer to the Non-IFRS measures section of the Company s MD&A for complete definitions and reconciliations to the company s financial statements. 17

18 PROJECT PIPELINE EARLY STAGE EXPLORATION SANTA ROSA EL HORCON ADVANCED STAGE EXPLORATION DEVELOPMENT CORICANCHA GUANAJUATO/ 3.8 SAN 3.9 IGNACIO Guidance PRODUCTION TOPIA Pipeline of projects at various stages of exploration & development provides growth opportunities Fully financed to bring Coricancha and El Horcon into production 18

19 PIPELINE TO PRODUCTION Coricancha represents a near-term (12-18 mo.) production opportunity that will provide a foundation for future growth in Peru Acquisition expected to close in Q1 2017, with exploration & development program to begin immediately thereafter Production history at Coricancha indicates potential for approx. 3 million Ag eq oz per year at full capacity Significant historical reserve & resource base, to be updated in Q Drilling at El Horcon in 2017 to better define resource & consider production decision 19

20 CORICANCHA Au-Ag-Pb-Zn-Cu MINE COMPLEX (CMC) Underground mine placed on care & maintenance in August km east of Lima in prolific mining district Operating history dating back to 1906 Fully permitted & operational 600 tpd processing plant and gold bio-leaching facility 80% precious metals, 20% base metals by value GPR to update Mineral Resource Estimate in Q & continue drilling & mine development 20

21 CORICANCHA HISTORICAL RESERVES & RESOURCES Historical Reserve & Resource Estimate 1 Proven & Probable Reserves: 640, g/t Au, 149g/t Ag, 1.77% Pb, 2.60% Zn, 0.32% Cu (13,500,000 Ag eq oz) Measured & Indicated Resources: 890, g/t Au, 175g/t Ag, 1.97% Pb, 3.11% Zn, 0.42% Cu (21,960,000 Ag eq oz) Inferred Resources: 4,880, g/t Au, 225g/t Ag, 1.57% Pb, 2.98% Zn, 0.48% Cu (124,600,000 Ag eq oz) 1. Effective date December 31, 2012; Based upon $22.00/oz silver, $1,300/oz gold, $6,300/tonne copper, $2,250/tonne lead and zinc. M&I Resources are inclusive of Reserves 21

22 CORICANCHA ACQUISITION AGREEMENT Share Purchase Agreement whereby Great Panther Silver Peru, will acquire Nyrstar Coricancha, the owner of a 100% interest in the CMC GPSP to pay US$100,000 cash on closing (Q1 2017) Nyrstar may be paid 15% of annual free cash flow, up to US$10 million, after GPSP has recouped its investment Nyrstar will cover cost of reclamation of certain tailings facilities, up to US$20 million, and associated fines up to US$4 million Nyrstar will cover US$9.7 million closure bond for 3 years 22

23 CAPITAL STRUCTURE Shares issued 166,435,918 Fully diluted 186,210,684 Institutional ownership ~22% Market capitalization CA $310M 90-day daily average trading volume 52-week trading range: TSX NYSE MKT Cash position 1 Net working capital 1 ~3M shares CA $ $2.82 US $ $2.25 US $52.9M (no debt) US $68.2 M Analyst Coverage: Euro Pacific Capital Inc., Rodman & Renshaw, Hallgarten & Company, Noble Financial Updated on December 19, As at September 30,

24 ONE YEAR STOCK PERFORMANCE 24

25 12 MONTH PEER COMPARISON 750% 700% 650% 600% 550% 500% 450% 400% 350% 300% 250% 200% 150% 100% 50% 0% -50% -100% CHANGE Excellon % Impact % Great Panther % Endeavour % Fortuna % Americas Silver % Sierra Metals 72.13% Avino 29.60% Silver 12.60% 25

26 LEVERAGED TO SILVER 1900% 1700% 1500% 1300% 1100% 900% 700% 500% 300% 100% -100% Great Panther Silver 26

27 WHY GREAT PANTHER SILVER? Low cost producer with strong leverage to silver price Strong balance sheet, no debt seeking acquisitions Successfully grown production while reducing unit costs Demonstrated ability to acquire and develop assets Excellent liquidity on NYSE MKT and TSX 27

28 APPENDIX 28

29 DIRECTORS & SENIOR MANAGEMENT TEAM Board of Directors R.W. (Bob) Garnett, CPA, CA, ICD.D, Chairman; Robert Archer, P. Geo.; Ken Major, P. Eng.; John Jennings, MBA, CFA; W. James Mullin B.Sc.; Jeffrey R. Mason, CA, ICD.D Ali Soltani Chief Operating Officer Robert Archer, P. Geo. President & CEO Co-founder Jim Zadra, CPA, CA, MBA Chief Financial Officer Robert Brown, P. Eng. VP Exploration & QP 29

30 SOCIAL PRINCIPLES We are committed to ensuring our employees and contractors return home safely every day We are committed to fair and equitable employment conditions for our employees We are committed to enhancing and benefiting the communities in which we live and operate We are committed to minimizing and restoring any impact on our environment We are committed to strong ethics and we abide by all rules and regulations that apply to our business Awarded distinction as a Socially Responsible Company by CEMEFI, Centro Mexicano para la Filantropía, for a fifth consecutive year in

31 OPERATIONAL SUMMARY Consolidated Operations Q Q Q Q Q Tonnes Milled 95,282 99,905 88,683 94,874 93,730 Silver ounces 510, , , , ,918 Gold ounces 5,423 6,010 5,599 5,637 6,079 Lead tonnes Zinc tonnes Silver equivalent ounces ,632 1,037,728 1,009,828 1,002,584 1,080, Silver equivalent ounces for 2016 are calculated using a 70:1 Ag:Au ratio, and a ratio of 1: for the price/ounce of silver to lead and zinc price/pound respectively. 2. Silver equivalent ounces for 2015 are calculated using a 65:1 Ag:Au ratio, and ratios of 1:0.050 and 1:0.056 for the price/ounce of silver to lead and zinc price/pound, respectively. 31

32 DRILLING SUMMARY Guanajuato 29,254 m 26,237 m 13,270 m 13,025 m 9,670 m 9,025 m Topia 8,059 m 2,162 m 1,903 m - - 2,500 m San Ignacio 9,310 m 1,144 m 3,827 m 4,657 m 6,015 m 10,975 m Coricancha ,323 m 3,551 m 10,000 m Santa Rosa 1,653 m ,000 m El Horcon - 2,156 m ,500 m Total 48,276 m 31,699 m 19,000 m 20,005 m 19,236 m 35,000 m 2017 drilling to be focused on increasing resources and exploring new zones 32

33 RESOURCES Measured Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (oz) Au (oz) Ag Eq Oz San Ignacio 249, ,210,100 27,200 3,130,400 Guanajuato 90, ,000 5,300 1,200,600 Topia 180, ,515,000 8,300 6,000,200 Total Measured 5,554,100 40,800 10,331,200 Indicated Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (oz) Au (oz) Ag Eq Oz San Ignacio 110, ,900 9,900 1,170,800 Guanajuato 59, ,700 2, ,400 Topia 165, ,433,000 6,200 5,570,000 Total Indicated 4,372,600 18,100 7,348,200 Total Measured + Indicated 9,926,700 58,900 17,679,400 Inferred Tonnes Ag (g/t) Au (g/t) Pb (%) Zn (%) Ag (oz) Au (oz) Ag Eq Oz San Ignacio 771, ,428,500 68,500 8,266,200 Guanajuato 135, ,400 10,000 1,363,300 Topia 357, ,807,500 15,060 11,050,000 El Horcon 128, ,400 15,000 1,906,000 Total Inferred 11,231, ,560 22,585,500 NOTE: Mineral Resource Estimates for Guanajuato and El Horcon use an effective date of July 31, 2015 while San Ignacio uses an effective date of December 31, 2015; and all used a metal price outlook of US$15.00/oz silver and US$1,100/oz gold. Topia, November US$1,200/oz Au, US$17.00/oz Ag, US$0.90/lb Pb, and US$0.95/lb Zn. Silver equivalent calculations used the same metal pricing. San Ignacio, December US$15.00/oz Ag; US$1100/oz Au. Silver equivalent calculations for El Horcon include lead content but not zinc, as the zinc would not be recovered in the Guanajuato plant. Robert Brown, P. Eng. is the Qualified Person under NI for Guanajuato, Topia, San Ignacio and El Horcon. 33

34 Spiros Cacos Director, Investor Relations D: TF: scacos@greatpanther.com SOCIAL SCENE Gr8_Panther GreatPantherSilver Great Panther Silver Great Panther Silver Limited 34

35 Corporate Presentation December 19, 2016