Great Panther Silver Reports Fiscal Year 2017 Financial Results

VANCOUVER, Feb. 23, 2018

VANCOUVER, Feb. 23, 2018 /PRNewswire/ - GREAT PANTHER SILVER LIMITED (TSX: GPR) (NYSE American: GPL) ("Great Panther"; or the "Company") today reported financial results for the Company's year ended December 31, 2017.  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 financial information is prepared in accordance with IFRS, except as noted in the Non-GAAP Measures section of the MD&A.  All dollar amounts are expressed in US dollars ("USD"), unless otherwise noted. 

"Our 2017 was a success in that we delivered on our expected production targets and made significant investments in our future, while still maintaining a strong financial position," stated Jim Bannantine, President and CEO.  "We completed the acquisition of Coricancha, completed plant upgrades and installed a tailings handling facility at Topia, and delivered a significant increase in the Mineral Resource Estimate at the GMC.  All of these activities were funded by our operating cash-flow as we improved our cash position, kept our balance sheet debt-free, and delivered a modest increase in revenue and an improvement in earnings, and record production at Topia."

Revenues for the year ended December 31, 2017 increased 3% year-over-year mainly due to an increase in production ounces (on a silver equivalent basis) and improved average realized metal prices.  Despite the increase in revenues, mine operating earnings before non-cash items of $22.0 million for 2017 declined 21% compared to 2016, mainly due to higher production costs.  The Company also saw a significant increase in exploration and evaluation expenditures in 2017 due to an increase in drilling activities at its operating mines in Mexico and ongoing costs to advance the Coricancha Project in Peru that are not being capitalized.  Although these mainly represent investments in the future growth and development of Great Panther, capitalization will only commence after a formal decision is made to bring Coricancha back into production.  With regard to exploration of the Company's operating mines, the most recent drill program at the GMC was a significant factor in the recently announced 91% increase in Measured and Indicated resources for the mine.  Even after making such investments, the Company delivered modest net income of $1.3 million for 2017, compared to a net loss of $4.1 million for the prior year.

Highlights of Fiscal Year 2017 compared to Fiscal Year 2016, unless otherwise noted:

• Metal production increased 2% to 3,978,731 silver equivalent ounces ("Ag eq oz");
• Silver production decreased 3% to 1,982,685 silver ounces;
• Gold production increased 1% to 22,501 gold ounces, an annual record;
• Cash cost increased by $2.11 to $5.76;
• Cash cost per Ag eq oz increased by $1.76 to $12.11;
• AISC increased by $4.08 to $15.07;
• Revenue increased 3% to $63.7 million;
• Mine operating earnings before non-cash items were $22.0 million, a decrease of 21% compared to $27.7 million;
• Adjusted EBITDA decreased to $6.0 million from $16.5 million;
• Net income totaled $1.3 million, compared to a net loss of $4.1 million;
• Cash flow from operating activities, before changes in non-cash net working capital ("NCWC"), decreased to $6.4 million, from $16.0 million;
• Cash and short-term deposits remained relatively unchanged at $56.9 million at December 31, 2017 from $56.7 million at December 31, 2016; and
• Net working capital was $66.0 million at December 31, 2017 compared to $66.6 million at December 31, 2016.

Highlights of the fourth quarter 2017 compared to fourth quarter 2016, unless otherwise noted: 

• Metal production increased 21% to 1,065,773 Ag eq oz;
• Silver production increased 12% to 514,218 silver ounces;
• Gold production increased 14% to 5,931 ounces;
• Cash cost increased by $1.42 to $7.25;
• Cash cost per Ag eq oz increased by $2.70 to $13.18;
• AISC decreased by $1.72 to $14.72
• Revenue increased 39% to $17.4 million;
• Mine operating earnings before non-cash items were $5.0 million, an increase of 11%;
• Net loss totaled $1.9 million, compared to $1.5 million;
• Adjusted EBITDA amounted to $0.9 million compared to $1.4 million; and
• Cash flow from operating activities before changes in non-cash net working capital was $0.6 million, compared to $1.1 million.

OVERALL PERFORMANCE – OPERATIONAL AND FINANCIAL HIGHLIGHTS