GPL - Great Panther Mining: An Inferior Way To Gain Exposure To The Gold Price

• Great Panther released its preliminary Q1 results last week, reporting production of ~17,900 GEOs, its lowest production figure in years.
• This sharp decline in production was despite being up against easy year-over-year comps, and while costs will improve this year, the company is combatting double-digit inflation in Brazil, a headwind.
• If GPL was armed with a strong balance sheet and its mountain of share dilution had allowed the company to grow its reserve base, I might be more optimistic.
• However, Great Panther is mining resources at Topia, has a short mine life at Tucano, and has one of the weakest balance sheets sector-wide, with just $0.2 million in net working capital at year-end.
• Hence, I continue to see the stock as an Avoid, and one of the least attractive ways to get exposure to the gold price.

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