Great Panther Mining (NYSE:GPL) +12.2% post-market after saying Wednesday it agreed to sell the Guanajuato mine complex, the Topia mine, and the El Horcón and Santa Rosa projects, all located in Mexico, to Guanajuato Silver Company for $14.7M plus up to $2M in potential additional payments.
Great Panther (GPL) said the sale of the Mexican mines will allow it to focus on maximizing the full potential of the Tucano gold mine in Brazil and complete the pivot to gold started in 2019.
The company said it expects Tucano will return to steady-state production in this year’s H2 and plans to continue investing to unlock value both from the underground as well as the regional potential of the district.
While production is expected to rise sharply in H2, Great Panther (GPL) “will still have some of the weakest margins sector-wide, making it much higher risk than its junior producer peers,” Taylor Dart writes in an analysis published recently on Seeking Alpha.
