Q2 2020 Great Panther Mining Ltd Earnings Call
Thank you for sending by this is the conference operator, welcome to the Great Panther mining second quarter Twentytwenty earnings Conference call.
As a reminder, all participants I didn't listen only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions.
The joined a question Q you only press Star then one on your telephone keypad.
She didn't just systems during the conference call you may see Glenn and operator by pressing star in theater.
I would now like to during the conference over to Meghan Brown Director Investor Relations. Please go ahead.
Thank you operator, and good morning, everyone I'm Meg Brown.
Thanks for taking the time to participate in our call today.
Before we begin I'd like to mention that some of the commentary on the call will contain forward looking statements.
You should be cautions that actual results and future events may differ from those noted in today's presentation. The commentary also refer to various non-GAAP measures definitions and reconciliations are included in our Mdna for the period ended June 30 of 2020.
All dollar amounts expressed in his presentation and in the associated financial statements and Mdna or in U.S. dollar unless otherwise noted.
For reference during the call AOCI refers to all in sustaining costs.
I would like to remind everyone that this call is being recorded and will be available for replay later today.
Replay information and the presentation slides accompanying this conference call and webcast will be available on our website, a great Panther Dot com.
On the call this morning.
We have Robert Anderson, President and CEO, Neil how quick Chief operating officer, and Jim Zadra, Chief Financial Officer.
Now I'll turn the call over to President and CEO, Rob Henderson.
Thanks, Meg and thank you everyone for dialing in.
I'm very excited to be sharing all second quarter results today.
The robust production from our minds together with the increase in the gold and silver price.
Has helped us deliver record earnings for the quarter, but before we discuss the operations.
I wanted to say Oh, I am extremely impressed with how our team has managed through this period of uncertainty around cobot 19.
No before have we seen touched disruption in every aspect of our lives in work.
We face many risks in managing a mining company, but have never anything seen anything quite like this virus.
Ill people have responded with cogent tenacity and determination is evidence that we have they committed workforce adapting to new ways of working and we're strengthening relationships with all our key stakeholders.
To calm I'm pleased to report that all of our employees, who have tested positive for David.
Fully recovered.
In Mexico.
They have been full cases reported at GMC.
One of whom is fully recovered.
Okay well.
Which is more remote had been just two cases, we're monitoring on Mexican workforce very carefully as Mexico has seen a rise in cases in recent weeks.
We continue to screen all employees on arrival at our mine sites and workers on encouraged to stay home is that as well.
The health and wellbeing about people in community is the core value and we'll continue to be our top priority throughout this pandemic.
Our team has done very well in this disruptive time, cobot 19, and I would like to thank them on for their efforts.
Now moving on to slide five.
When I joined is great and.
Just a little over three months ago I told you that my priority was to support the team and getting operations stabilized and generating strong cash flow.
I'm pleased to report that things going in the right direction.
At the operations GMC in Tokyo made us move transition back into operations following their government shutdowns.
And restarting a mine typically has bumps, but our team has worked diligently to bring things back as quickly and as smoothly as possible.
Are well positioned now to have a strong and steady second half.
And are in line to benefit from a silver price has risen more than 40% and just over a month.
The top yet we were able to issue cost and production guidance for the full year from the first time.
We also adjusted GMC guidance to reflect the short term shutdown, we now have realistic and achievable production cost objectives for Mexican operations and both are in good shape to meet their targets.
Two quantum is also trending in line with the full year targets, we set out in January.
The cost to achieve the new monthly production record of 15299 ounces in June a record since the time, we acquired in early 2019.
This was achieved in spite of seasonally pool with them.
Next slide.
In spite of co goods 2020 is off to a good starts as we delivered.
A number of old time company records in the second quarter Importantly, we are generating robust cash flows that will help us internally funded our capital and exploration programs and further improve our balance sheet. The combination of a strong rise in the gold price record production that to calm and substantially lower oil.
In sustaining costs.
Drove these records which included.
Mine operating earnings before non cash items of $35.8 million.
Net income of $8.6 million, adjusted EBITDA of $30.2 million and cash flow from operations of $19.5 million.
We produced 38541 gold equivalent ounces in Q2, 2020, which is an 11% improvement over Q1 2020.
And brings our year to date production to 73267 gold equivalent ounces. This puts us on track to meet our full year guidance of 146250 8000 gold equivalent ounces.
On the corporate side, we completed a bought deal financing into two with gross proceeds of 16.1 million.
This cash injection combined with our strong internal cash flow generation due to the rise in the gold price.
Put us in a good position to internally fund.
Capital programs and further build working capital our cash position.
As of June Thirtyth was $60 million.
During the quarter. We also reached an agreement with Navistar to defer a coricancha have been requirements.
This reduces our short term funding requirements and highlights our commitment to realizing card cancer has significant potential.
Neil our Chief operating Officer will go through the operations in more detail, but some highlights include.
Production 35421 ounces of gold at Tucano, a 35% increase over Q1 2020.
On an all in sustaining cost of $982 per ounce of gold sold.
Production of 280831, silver equivalent ounces from our Mexican mines and this was despite nearly two months shutdown due to cobot, but as mentioned operations have resumed smoothly as at the end of May.
Because of covered I haven't had a chance to visit the mines yields and meet our teams in person. So I will hand over to meal for the detailed discussion of the mines and of course, Jim will do the financial review.
Over to you.
Okay. Thanks, Rob.
Well, let's start to color.
The completion last year, the sulfide processing circuits that that's allowing us to process much higher grade or within still retain pretty good high recoveries.
The second quarter production talking 35.
As important 21 ounces of gold is as Rob pointed out this was an 18% increase over Q2 2019, despite particularly on the seasonal weather. We had we had 40% higher rate unfolded, the NAV, which in Q2 this year.
Increasing gold production was primarily due to higher gold grades and increased oil processing rates.
As Bob said, we achieved.
Suit production recorded 15389 ounces of gold in June.
Okay.
71000 ounces of gold production in the first half the Twentytwenty, we're on track to achieve our guidance. So tucana of 120000 to 130000 ounces.
The mine.
Come to contribute to our confidence and this is the expectation of the high grades as we mined in the lower portions of the pits, which all 10000 high grade.
In Q4.
The all in sustaining cost was $992 per ounce of gold sold a 13% improvement over Q2 2019, and we're on track to meet our all in sustaining cost guidance for two corner of 11 50 to 12 $50 per ounce.
I will twentytwenty exploration program with a budget of 6.6 million and plus 55000 meters of drilling is progressing well.
The next slide.
So total reserve replacement to tucana, our target resources.
Relative to 13, 50 does bounce user pit shell, which is the blue line and above the 1500 dollar per ounce pit shell, let's see the Orange line.
This this new shell is larger than the Lpa 15, underage dollar resource pit shell, which which constitutes an average mining cost for TEP baby and a 3.8 reacts to the US dollar exchange rate.
The new show includes a more favorable exchange rate of 4.5 reaction to the US dollar and uses mining cost specific to accept a b to take into account the predictable material and proximity to process plant and to the waste dumps.
The slide also shows the drill holes and part of this reserve replacement drilling that most of the purple color.
The reserve replacement drilling is focused on resources currently drilled two insured spacing located between the two pit shells.
The targets for this reserve replacement drilling and type a b is come conversion of sufficient resources to deserves to replace Twentytwenty visitation and all of that gets.
Next slide.
This is to do with exploration in June we reduced the first set of drill results from the infill drilling in the open pits drilling completed to date total 70236 mixes of Diamond and.
LLC drilling at the top baby, one untapped APC fits plus 600 views.
6330 seem readers of Rep drilling.
On the individual targets.
Drilling rights expected increases in the second half of the year. Because this is when we go into the dry season. We've also increased the number rigs in the operating.
Worked on drove on site.
These new these the additional.
Plus an extra Aussie rig. These these additional rigs are going to be focused on the local underground and Oracle east.
Results from drilling up to the end of June will be incorporated into an updated resource and reserve estimates expects and in Q4 Twentytwenty.
It also gathering additional dalsa to support a feasibility studies for an underground operation below from North pit. The study would commence around the end of the year and we'll probably includes an exploration deconstructed eventually be converted to production ramp.
The next slide.
Regionally, our gentleman's cover the most prospective under explored greenstone terrain in Brazil. The image in the slide is conductivity of impact metrics. The launch of will shed blue zones reflect granitic intrusions lay the primary drivers of the normalization.
The red Squiggles highly conductive zones, such as standardized formations or chemicals settlements or deep whether in squeezed between the.
But between the the grants.
The.
Seven kilometer long took on a trend is isn't all south red trends indicated by the I will.
This is the numerous environments are very similar to the take on the trends and all of these potential targets.
Our new lease exploration, Nick Warner has gone extensive experience in green stones and extensive experience in this area in particular.
Nick is using his skills and structural geology combined with this multi element geochemistry experience to identify high potential current goals and targets. This is with a view to fast track and exploration program that put involved off season non drilling as early as Q4 this year depending on accessing.
And permitting constraints.
Next slide.
Okay. This is this is topia in Mexico, while our exit while our primary metals produced in the company wide basis is goals our Mexican operations remain prime we saw the in terms of production.
Before we continue to reinforce silver equivalent ounce production and and unit cost metrics for Mexican silver mines.
Due to production was adversely impacted by suspension of mining operations in Mexico in April and May This was in compliance with the direction of the Mexican federal government due to coven 19.
Okay. So beer, we produced 146128 silver equivalent ounces and we're on track to meet the guidance of 1.2 to 1.3 million silver equivalent ounces.
All in sustaining cost was $22.32 per ounce of payable silver for the second quarter, reflecting the full cost of care and maintenance during the temporary shutdown.
On throughput will increase in Q3 as third mill comes back on line and great should increase as a proportion of development or decreases as we complete opening of new areas. We continue to focus on increasing from throughput in driving down costs Sofia.
Our next exploration fronted Topia, we completed 2006 612 minutes of exploration drilling in Q2 with the four rigs that are on site.
But I think very importantly, we also received the required required government approvals on a permit to start stacking on phase three of which as of the TSS.
I see will be available active we finished construction and retaining walls and erosion controls around the basically the facility.
Our GMC.
The next slide.
It's a GMC nearly all of the process over sourced from the San Ignacio Our mine, while we continue to exploration activities of the going to watching.
The two mines to give us.
A process plugs into account comprise our guana watching mine complex researches GMC.
So production from GMC in the second quarter was 134000.
703 ounces of silver equivalent and an all in sustaining cost of $27 from 36 cents per silver equivalent ounces as with does Utopia GMC all in sustaining costs for the second quarter reflects the full cost of mine during the shutdown of April and bait and the all in sustaining costs.
It is expected to trend towards to the full year guidance of 13 to $14 for the full year.
It's it's going to want to the exploration program continues to advance of GMC with the objective of outlining institute blocks of high grade mineralization.
Compared to 2612 inches of infield drilling program and in in Q2, Twentytwenty with four rigs operating.
One or two underground drilling is focused on the Los pozos area and improving mineral resource estimation conference continuous and the other areas.
You're planning to an increase in production from going on watching them in the second in the second half based on continued development of the multiples alone.
Underground and surface exploration has also increased a San Ignacio the initial program the surface drilling in San Ignacio is located are hanging wall is on along with fewer summer vein system, where initial Julie results show very high potential.
An additional 2500 basis drilling is being allocated in this area for the second phase of neutral drilling millstones in mid August I'll now turn the call over its a great Panther CFO, Jim Zadra to discuss our financial results.
Thank you Neil and welcome everyone.
We recorded revenue of 67 million in the second quarter, 48% increase relative to Q2 2019.
Reflecting strong production results for the Corrado at a strong increase and the gold price.
These factors along with an improvement in our unit costs that drove a very significant increase in our operating earnings EBITDA margin net earnings and cash flow.
We reported mine operating earnings before non cash items of 35.8 million and cash flow from operations of 24.1 million before non cash net working capital movements.
These were both new records for Great Panther at our reflection of the significant free cash flow leverage at our operations.
We delivered a substantial increase and adjusted EBITDA to 30.2 million.
Which also reflected a quarterly record.
Our net earnings were 8.6 million or three cents per share and also included approximately 6.8 billion of foreign exchange losses, which were primarily non cash charges related to foreign subsidiary translation adjustments and mark to market adjustments.
It is important to note the based strong revenue earnings and cash flow results for the second quarter were achieved at an average realized gold price.
Of $1728 per hour.
And also despite the expansion of our Mexican operations for most of second quarter due to the government mandate, Mexico to Medicaid spread of covert 19.
As noted our Mexican mines have resumed full operation.
And gold is how well above $2000 per ounce and trade at silver traded above $28 per ounce today.
With the current silver and gold price environment, we expect to see an even stronger financial performance for the third quarter.
As noted we saw significant improvement in our costs in the second quarter and reported a sick of a thousand $27 per ounce of gold sold as part of consolidated basis and before corporate cdna costs.
The lower ASIC is reflective of a weaker Brazilian real.
Tire production for two cattle and lower stripping costs due to the stripping that was if that's in the first quarter.
For the full year, our asset Guidances for 11, 50% 12 50 per ounce on a consolidated basis and were trending well to this.
As our ASIC reflected higher stripping costs in Q1 2020, we also expect basic for Q3 in Q4 to be below our guidance range.
This implies significant free cash flow margin for our operations at current prices gold and silver protocol alone. The current gold price implies a free cash flow margin of over 1100 per ounce based on our expected asset for the second half.
Significant margin levels can even be achieved a gold price reverts back to the key to average.
In terms of our balance sheet, our cash position improved to 60.2 million at the end of June while we reduced our debt by about 4 million and continue to improve our networking capital position.
We completed a bought deal financing in the second quarter for net proceeds 14.1 million.
The financing was completed in light of the uncertainties posed by covert 19 and to ensure we had sufficient working capital to complete the critical exploration programs will discuss.
As Rob noted our operating teams have done an excellent job managing the unprecedented challenge of covert died team August challenge still remains for us at other mines operating throughout the world.
Wary of it we are in an even stronger position to manage it from the standpoint of our financial position and in terms of our experience and knowledge.
In terms of capital allocation for 2020, our per priorities are the noted exploration programs at cattle and that in Mexico.
Which we commenced earlier in the year.
Given the recent rising gold and silver prices were pleased with started these programs early on and we look forward to opportunities to further advance and faster.
Thank you.
That's all we have for formal remarks, I'll turn turn back to the operator for acuity.
Thank you we will now begin the question and answer session to join the question Q You May Press Star then one on your telephone keypad.
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Our first question is from Heiko Ihle with HC Wainwright. Please go ahead.
Hey, guys. So thanks for taking my questions good quarter, and I guess a bit over common looking to mine operating earnings for a quarter of 11 cents, where the stock price the low one us dollar shows valuation gap that we frankly expect diminish over time quite well.
Looking at Turkana or have you seen any new phone challenges in regards to costs for labor materials are supplies that are unrelated to covert and more based on the recent strength and that are essentially no based on strengthen metal prices are not covered I mean, Jim mentioned earlier realized prices for 17 in 2017.
During the quarter, we're obviously well over 2000, right now and I expect at least at some point in time other guys or don't want a piece of that pie or are you seeing anything like that.
Yes, I'm wondering I can begs the question.
Yes that right now we are benefiting from a very weak.
Well in Brazil, and I think we are seeing a bit of inflation happening.
In in Brazil. So we are seeing some local costs going up but tucanos are pretty remote operation and is not a lot of gold mining in Brazil to we're not being crowded out by the people, but we are addressing a local inflation costs.
The pressure there, but the reality is very low realizes Sydney, helping.
Our cash cost sale.
Okay.
Can I just adds.
Of course add something.
The I mean, the one thing that impacts us.
Is it doesn't rise and fall attached to the mining contracts is related to the.
The exchange rate, but it's not it's not a significant positive is still a significant part of it but it's definitely impacts on our costs in the negatively.
Okay.
Fair enough.
Speaking of Brazil, and the Colby case, I mean, obviously.
Brazil as are the best of handling this whole thing right now.
And the efficiency issues and with having a fairly large caseload. So just thinking out loud given the nature of the pauses. It's an open pit mining no one's really all that crowded underground together and you have some ease of continue distancing at a miners.
Do you think that's a fair assessment and are you, maybe like able to give us a little bit more a breakdown of the impact that you're seeing what exactly has changed.
Can you just say probably a little more color along those lines. Thank you.
Sure I can't Neil you want to address them.
Yes the.
Additionally, we had some.
Not so much the social dismissing sat side of things because we were we did some families. So innovative stuffs in terms of the campaign in multiple hours in the local estimates and whether being an open opening pitches as well, we can be summed maintain sandy, but sort of social distancing.
The process plans is or isn't is a little bit more tricky, but.
We haven't really experienced too many problems.
The one thing that Didnt happen I mean, just was quite gratifying wasn't the.
Because when you initially we had quite a lot of people off just just so just to absorptions and because of exhibiting minus symptoms and all of their estimates we what we changed to 12 hour shifts from Itau shifts now you'd normally the union flights you very hard on that for sale, obviously preferred to have the eight hours Vicki sort of employ more people.
For the Union was pretty solid behind us.
It has allowed us to go on to 12 hour shipped some then on the mining process trends and we just on the only now we going back to two hotels ships.
Very helpful. Thank you guys and thanks for taking my questions.
Thank you.
Our next question is from Matthew O'keefe with Cantor Fitzgerald. Please go ahead.
Thanks, operator, thanks for taking my question and congrats on great quarter.
I just had a couple of things one just you mentioned in the presentation. There had to cattle are part of your forward exploration plans. We are here your comp a payer contemplating doing an underground exploration drift could you could you expand on that a little bit and sort of a timing for that and.
Now the cost and what what impact that would have short term in long term.
Yes.
Thanks, Matt.
Steve Yes, we do have an existing study on on the underground option to con own. This study was done couple of years ago. So if the potential to go underground has always been there.
Typically with abandoned I'm type formation you do eventually do go underground because they are very destructive.
The against the original team at Tucano had identified the underground a couple of years ago and did some initial work on it and we want to refine them at work, we want to increase our confidence levels certainly in the earlier.
Part of the access so we want to gifts and revisit that study. The ended this year do some more drilling just to confirm ore body continuity and axes details. So we're we're essentially going to be de risking a study that would be done a couple of years ago.
Okay, and can you remind us again, the rough number of apps that you'd be targeting on the there.
Neil you have that member at hand.
So you did say the what.
The underground potential or how many ounces are we looking at.
Oh Geez, it's citrus family I'm trying to think now not.
To look it up 'cause it respectfully manages it was quite substantial.
Just off the top my head I would've thought probably about 30 or 40000 ounces a you it when we start mining.
Right right, okay, Okay, and that would be that sort of order of magnitude.
Right and so and that could have centered doing underground we've been doing an underground or direct you to be able to access at pretty pretty readily once you want to.
Hello.
You could have access to it fairly quickly after you intend the exploration, presumably with without access.
Thats correct it will be done through an existing pits.
So the future would consist of underground mining and open pit mining units imitation is the two to keep the mill.
Gotcha Gotcha, and then okay, no that's great and then.
Just.
One other thing on the kanno the recoveries were I think 90 point just over 90%.
Are we without an unusual recovery like is that what we should be looking at going forward because I thought we are more towards 92, although we will be expecting is there is that is this just within the normal variance or.
Yes, I don't really Neil can give more color, but that it's a function of where we were mining in the puts and we're mining at very high period time zone, which typically give us pretty you'd lower recoveries that we were the recoveries were actually better than what we expected.
But as we migrate back towards the the top a bear a bit I think we're going to see a recovery increase again.
Im going to market our own.
Yes, that's right I mean initially when we first it is sort of peptide hot spots. We we had some honorable recovery. So like 80, 81% I mean, it was it was quite nasty and near the high grades, but eventually we identified exactly what the problem ones and we did a whole series of tests and we.
Towards the end of June we started to.
So to blend a lot more to try and get the amount of prototypes percentage down and those when companies got backed up to 90 to 93, given up to 94 at one stage. So.
The 90% sort of recent exits so initially vending loan recoveries within getting back on on top of it.
Okay. No that's great. That's good clarification on that and it sounds like you've got that kind of figured out going forward.
And then just one final question on a quite catch at that time.
How should we thinking about that I mean, we've got some pretty good commodity prices here, there's a lot a lot of metal there that's pretty.
Paul could be readily available maybe you could just talk a little bit about your plans for quite catch up.
Sure.
Yes. It is a project thats very leveraged to metal price and we have an old study.
Done a couple of years ago, which needs refreshing. So we've allocated a team do you have a much deeper dive into what our production rates could be.
And look at.
No different ways of accessing the ore bodies are we expect to refresh the study in a towards the end of this year with a view of even potentially more drilling if it looks reasonable buds at current metal prices. It. It is a very interesting project.
Yeah, and if it is it a I can't recall, although but is it along like once you did sort of figure out.
In what you want to deal with it is it a long lead time to ticket because you've done some production from it previously I mean is it at a longer ramp up time or is there a lot of work to be done to.
For development and the meeting in.
Major equipment.
Yes. It is an existing mine we have a mill that's running there. So it's a function of mine access that we'd have to have look at and we'd have to do some rehab and work, but we're not talking about a long lead time at all because in the most infrastructure is there.
Yeah, well is [laughter]. Thanks, now there's a lot by I realize there's a lot going on and on that.
Just curious about that when given these metal prices, but but that's it for me thanks very much.
Thank you Matt.
Our next question is from back to pick the Vonnie with Alliance Kildair partners. Please go ahead.
Good morning, guys. Thank you for taking my questions and congratulations on the quota.
Thank you back then.
I apologize if my question is on that the Japan, but that's kind of curious you had to Nicole monthly production at the gonna enjoy and second half as normally the strongest a unit production at the Cardinal could you maybe provide some color on how the production has said in the month of July income that isn't digitally.
Yes, I think June was an exceptional month, because we did hit very high grades, which we expected in the recoveries were better than what we expected because the guys in the plant figured out how to deal with the prototype. So it was a pleasant surprise in June that we get that record I think we are getting back towards the type of berra pits.
In the second half of the years that we're not going to have these protect spectacular high grades situation. So we were maintaining our guidance on to count on a pretty steady.
So.
There's no.
There's no big surprises.
Got it. Thank you so much for the fellow Oh, you know just wanted to follow up on Quake line. I know you you you just mentioned that you plan to do.
This study.
It should be out by the end of the but just kind of curious Oh you know following the completion of study.
In addition to the award as Jamie to accomplish in order to date for production decision there.
Well, yes hits.
First of all you got to figure out.
Is it worth doing you go to look at them the financial metrics you got to look at.
Capital Prioritization. So there are number of hurdles for us to jump through and right now with the existing study, we think that means a lot more refining and de risking.
As a matter of.
Improve Jeanette study and getting the project to state, where we can make a decision whether to proceed or not to proceeds from.
We've got a lot of things to look at and I think the main one is to improve the.
The financials and its and its ability to generates.
Decent cash flows.
That that's going to be the priority is new to make sure. This project is going to be economic for us.
Got it and lastly on the cash.
You had.
Very good quarter, then it comes still you know cash flow generation and and you have about 16 million cash what CR Neil.
On on deploying that cash is it's going to be more focused towards debt reduction Oh.
Glad to do go ahead with the underground development at the Carlo if it can provide some color. Please.
Yes, Jim you want to handle it sure Hi Bhakti.
Really the effect.
Capital allocation priorities are the exploration drilling as I outlined.
We're we're going to continue to.
Pay down under our debt, which are very manageable given our current cash position.
And with the current metal prices will continue to look for other opportunities to deploy capital on the way that all.
All increase value and increase.
Our analysis.
Alright, Thank you very much that's it from my side.
Thank you.
Once again, if you have a question. Please press Star then one on your telephone.
Next question is from Roger Davies said, a private investor. Please go ahead.
Hi, good morning, gentlemen, congratulations on the on the numbers I think it kind of answering my question I was going to ask about that production that's occurring now because if you take the.
15000 ounces from June and multiply that times sexually get 90000 ounces during the second half of air and if you add that to the 60000 held the first half that would be 150, and your guidance says 120 to 100 to the clarity that seems to indicate a rather significant drop off and Uh huh.
Production, So I guess, you're saying that you are great you're not going to be as higher or do you think you might have a cancer abating that hundred 30000 number.
Yeah. Thanks for the question Roger be yes, the jacana, we've got a series of different fits with the school got slightly different different characteristics. In June we were mining brighter the bottom overcome which is very high grade with a high prototypes, we are going to the top a barrel pits in the second half.
The other words does have a different characteristics. So I think where we're maintaining our guidance.
I think we're going to hit those spectacular adults we had in June if we do it'll be a nice surprise, but we certainly think we were online for guidance and where the plan is.
Staying consistent.
So according to your guidance, saying you expect a.
Somewhere in the 30 to 35000 ounce range for the third quarter and the fourth quarter.
Yeah, I think fourth quarter will be slightly better than the third because typically as you get the whether working for you. This a third quarter is probably going to be one about a weaker quarters.
In terms of build production.
Okay, well, thank you very much and congratulations again on a great numbers.
Thank you Roger.
There are no further questions registered at this time I would like to turn the conference back over to Rob Anderson for any closing remarks.
Thank you very much operator.
Q2 was a milestone quarter for us and we achieved the new production record Tucana, we delivered strong free cash flow from one of our mines and this was achieved in spite of a significant challenges of cobot 19, and I certainly believe it to a testament to the strength of our team.
And good oversight from our new board.
And I'm confident that we've got to.
Very solid platform to drive growth and benefits from the increase gold and silver prices that we're currently seeing.
So thank you very much for your participation today on behalf of everyone here, Great Panther I look forward to sharing a progress with you in the next quarter.
This concludes today's conference call you may disconnect. Your lines. Thank you for participating and have listened today.
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