Great Panther Mining To File For Creditor Protection
Great Panther Mining (TSX: GPR) appears to finally be throwing in the towel, this morning indicating that it intends to file for creditor protection in Canada. The intention to file follows the firm expecting that it will default on “several material debtor agreements.”
The filing, which is to be made under the Bankruptcy and Insolvency Act of Canada later today, is being pursued as the firm looks to restructure its operations. The last year has been filled with operational struggles for the firm, with the most recent all-in sustaining cost of production amounting to $3,299 per gold ounce.
The firm also reported in those financials that it had current cash and equivalents of $21.1 million, while trade payables sit at $57.6 million, and current portion of borrowings amounts to $41.5 million.
The company had expected its operations to normalize in the second half of the year with higher production levels returning, yet that evidently has failed to materialize based on the intention to file for creditor protection later today. “Inflationary pressures and the necessary acceleration of certain capital programs affected our financial results this quarter, however as previously guided we continue to expect improvements in the coming quarters as we return to a normalized rate of production in the second half,” interim CEO Alan Hair had said at the time of the second quarter results release.
Hair was appointed interim CEO in February, when Robert Henderson, the former CEO and President of the company quit the firm with immediate effect. This followed the departure of Chairman David Garofalo in December.
In connection with the filing, the firm expects to receive an immediate stay of proceedings for a period of thirty days, enabling the company to pursue potential options to find a solution to its issues. The company expects to remain in control of its operations during that time, and if it fails, the firm will then proceed into bankruptcy.
However, shortly after indicating it will keep its operations running, Great Panther indicated that its Mina Tucano subsidiary in Brazil will enter care and maintenance, while the firm has ended “several amterial contracts” currently in place with suppliers.
Great Panther Mining last traded at $1.09 on the TSX.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
