Great Panther Silver Reports Fiscal Year 2016 Financial Results

VANCOUVER, Feb. 27, 2017

VANCOUVER, Feb. 27, 2017 /PRNewswire/ - GREAT PANTHER SILVER LIMITED (TSX: GPR) (NYSE MKT: GPL) ("Great Panther"; or the "Company") today reported financial results for the Company's year ended December 31, 2016.  The full version of the Company's consolidated financial statements and Management's Discussion and Analysis ("MD&A") can be viewed on the Company's website at www.greatpanther.com or SEDAR at www.sedar.com. All shareholders can receive a hard copy of the Company's complete audited financial statements free of charge upon request. All financial information is prepared in accordance with IFRS, except as noted under the Non-IFRS Measures section. 

Great Panther commenced reporting its financial results in US dollars as of the third quarter of 2016.  Accordingly, all dollar amounts expressed in this news release, and the associated financial statements and MD&A, are in US dollars ("USD"), unless otherwise noted.  Periods prior to the third quarter of 2016 were reported in Canadian dollars ("CAD"), and have been restated to USD using the July 1, 2016 CAD/USD exchange rate of 1.3052. 

"Improved metal prices, combined with a 20% reduction in our all-in sustaining costs to $10.99, resulted in Great Panther delivering a 404% increase in mine operating earnings in 2016," stated Robert Archer, President & CEO.  "Significantly improved operating cash flow, combined with the proceeds of financings completed in 2016, enabled us to end the year with $67 million in net working capital, no debt, and positions us well to capitalize on growth opportunities such as the recently signed Coricancha acquisition."

Improved metal prices and significantly lower costs drove substantial improvements in margins and cash flow in 2016, including a $17.6 million increase in mine operating earnings.  Despite the substantial increase in mine operating earnings, the Company reported a net loss of $4.1 million for 2016, mainly due to foreign exchange losses of $11.1 million.  The majority of the foreign exchange losses are non-cash and relate to the revaluation of foreign-denominated assets and liabilities, including certain intercompany balances, for fluctuations in exchange rates.  These primarily arose in the first half of 2016 prior to change-over from Canadian dollar to US dollar reporting and related changes in functional currencies of some of the Great Panther group companies.  The 2016 financial results also reflected a $1.7 million write-down associated with the termination of an option to purchase the Coricancha mine in May of 2016.  Later in the year, Great Panther successfully re-negotiated and concluded an agreement to purchase the Coricancha mine. 

Cash costs of $3.65 per payable silver ounce for 2016 represented a 51% decrease over the prior year, and all-in sustaining costs per payable silver ounce ("AISC") were down 20%, and both were below the Company's guidance.  The decline in the Mexican peso relative to the US dollar was a significant factor in the reduction of these costs.  

The construction of the Phase II tailings storage facility and related plant upgrades at the Topia Mine are progressing well, and the Company expects to restart processing before the end of the first quarter, as planned.  The costs of the project will be accounted for as sustaining capital expenditures.  This, along with the impact of suspended production for a good portion of the quarter, will result in adverse cash cost and AISC metrics for the first quarter.  The impact on the full-year cash cost and AISC will be less pronounced.  See the Outlook section for a more detailed discussion.