Shares of the Great Panther Mining Limited (GPL) stock began to fall after the announcement of the Tucano operational update by Great Panther. GPL stock price saw a downtrend of 13.86% to drop at $0.77 a share at the time of this writing. GPL stock was gaining in the previous trading session and closed with a 5.75% gain. Let’s look at recent events of GPL stock.
What’s Happening?
GPL stock today reported wall movement in the west wall of the south-central portion of GPL’swholly owned mining operation Urucum Central South (“UCS”) open pit, at TucanoBrazil due to heavy rainfall. Due to triggered higher phreatic levels in the west wall caused by heavy rainfall, the slope stability is impacted. In response to this condition, GPL stock temporarily halted mining activities at UCS for the safety of workers. Urucum North open pit and stockpiles will continue to supply ore to the mill.
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According to the management, the mining operations will start again in the third quarter of 2021. The new consolidated guidance for 2021 is in the range of 125,000 to 140,000 gold equivalent ounces which means the reduction of 10,000 ounces due to operational halt in UCS.
Great panther is putting effort in order to improve wall stability and to achieve this purpose, Great panther is unloading the additional waste material and improving drainage system from upper benches. These activities are strictly monitored by radar and with strict safety protocols. The team is closely monitoring the water levels and preparations have been made for horizontal drainage holes which are required in the lower portion of the west wall.
First Quarter 2021 Financial Results:
On May 07, 2021, GPL stock did announce first quarter 2021 financial results according to which 9% increased revenue of $52.5 million was recorded for the first quarter of 2021 as compared to the same period of 2020.Net loss reduced to $0.3million in the reported quarter while the same period of the prior year reported a net loss of $40.5 million.EBITDA and adjusted EBITDA for the GPL stock reached $10.3 million and $12.4 million respectively as compared to negative $30.6 million and $6.4 million in the same tenure of the prior year.
Conclusion:
GPL stock happened to be red after the announcement of a halt in the mining activities at UCS. Management is optimistic that mining operation will again resume in the third quarter of 2021 but still, this halt would impact the overall growth of GPL stock to some extent.