Curing A Hiccup

Great Panther Recovers from its 2Q Report

By Ted Niles

“In this kind of a market,” says Bob Archer, “people have kind of a show-me attitude.” The President and CEO of Great Panther Silver is referring to the blow the company suffered last month after its 2Q financials were released. He explains, “We had a little hiccup in the second quarter in terms of our concentrate sales from our Guanajuato operation. Our primary buyer said they weren’t going to accept any more concentrate, and that forced us to scramble to find another buyer. Which meant that we had a little bit of a buildup of inventory at the end of the quarter—our revenues and earnings for the quarter were substantially below what they normally would have been.”

Hiccup certainly seems like the appropriate word. Short-lived, innocuous but still irritating. Great Panther shares lost 25% before the proverbial paper bag burst on August 18 with the announcement that the company had found a new Mexican buyer for its concentrate. Indeed, says Archer, “We have resolved the problem such that as we draw down on the inventory to a new buyer the revenues in 3Q and 4Q will be higher than they normally would be and will balance out by the end of the year.” He adds, “It’s a bit of a non-issue for us, but the market is saying I want to see those numbers. I think largely because of that we’re undervalued relative to our peers right now.”

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