40-F

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 40-F

¨	REGISTRATION STATEMENT PURSUANT TO SECTION 12 OF THE SECURITIES EXCHANGE ACT OF 1934
	OR
x	ANNUAL REPORT PURSUANT TO SECTION 13(a) OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended: December 31, 2020 Commission File Number: 001-35043

GREAT PANTHER MINING LIMITED

(Exact name of Registrant as specified in its charter)

British Columbia, Canada	1040	98-1020854
(Province or Other Jurisdiction of Incorporation or Organization)	(Primary Standard Industrial Classification Code)	(I.R.S. Employer Identification No.)

1330 – 200 Granville Street
Vancouver, British Columbia, Canada V6C 1S4
Tel: 604-608-1766

(Address and telephone number of Registrant’s principal executive offices)

National Registered Agents, Inc.
875 Avenue of the Americas, Suite 501
New York, New York 10001

Tel: 1-800-550-6724

(Name, address (including zip code) and telephone number (including
area code) of agent for service in the United States)

Securities registered or to be registered pursuant to section 12(b) of the Act:

Title Of Each Class	Name Of Each Exchange On Which Registered
Common Shares, no par value	NYSE American Equities Exchange

Securities registered or to be registered pursuant to Section 12(g) of the Act: None

Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: None

For annual reports, indicate by check mark the information filed with this Form:

x Annual Information Form x Audited Annual Financial Statements

Indicate the number of outstanding shares of each of the Company’s classes of capital or common stock as of the close of the period covered by the annual report: 355,032,512 Common Shares as at December 31, 2020

Indicate by check mark whether the Company by filing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934 (the “Exchange Act”). If “yes” is marked, indicate the file number assigned to the Company in connection with such Rule.

Yes   ¨         No  x

Indicate by check mark whether the Company (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the Company was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  x         No  ¨

Indicate by check mark whether the Company has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Company was required to submit and post such files).

Yes  ¨         No  ¨          Not applicable  x

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 12b-2 of the Exchange Act.

Emerging growth company x

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 13(a) of the Exchange Act. ¨

ANNUAL INFORMATION FORM, AUDITED FINANCIAL STATEMENTS AND MD&A

Great Panther Mining Limited (the “Company”), a Canadian public company whose common shares are listed on the Toronto Stock Exchange (“TSX”) and the NYSE American Equities Exchange (the “NYSE American”). It is a “foreign private issuer” as defined in Rule 3b-4 under the Exchange Act, and is eligible to file this annual report on Form 40-F pursuant to the multi-jurisdictional disclosure system.

The following documents of the Company are filed as exhibits to, and incorporated by reference into, this Annual Report:

Document	Exhibit No.
Annual Information Form of the Company for the year ended December 31, 2020 (the “AIF”)	99.1 (1)
Audited consolidated financial statements of the Company for the years ended December 31, 2020 and 2019, including the reports of the auditor with respect thereto	99.2 (1)
Management’s Discussion and Analysis of the Company for the year ended December 31, 2020 (the “MD&A”)	99.3 (1)

(1) Filed as an exhibit hereto.

Pursuant to Rule 3a12-3 under the Exchange Act, the Company’s equity securities are exempt from sections 14(a), 14(b), 14(c), 14(f) and 16 of the Exchange Act.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this document constitute “forward-looking statements” within the meaning of the United States "Private Securities Litigation Reform Act" of 1995 and “forward-looking information” within Canadian securities laws (collectively, “forward-looking statements”). All statements, other than statements of historical fact, addressing activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the words “anticipates”, “believes”, “expects”, “may”, “likely”, “plans”, “intends”, “expects”, “may”, “forecast”, “project”, “budgets”, “guidance”, “targets”, “potential”, and “outlook”, or similar words, or statements that certain events or conditions “may”, “might”, “could”, “can”, “would”, or “will” occur. Forward-looking statements reflect the Company’s current expectations and assumptions and, are subject to a number of known and unknown risks, uncertainties and other factors, which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

In particular, this Annual Report on Form 40-F includes forward-looking statements as noted throughout the document. These relate to estimates, forecasts, and statements as to management’s expectations, opinions and assumptions with respect to the future guidance and outlook of production of gold, silver, lead and zinc; profit, operating and capital costs, growth expenditures and cash flows; grade improvements; sales volume and selling prices of products; capital and exploration expenditures; plans, timing, progress, and expectations for the development and mine life of the Company’s mines and projects, including its planned exploration and drilling programs (metres drilled); plans to evaluate future financing opportunities, including the potential to use the at-the-market facilities; the timing of production and the cash and total costs of production; sensitivity of earnings to changes in commodity prices and exchange rates; the impact of foreign currency exchange rates; expenditures to increase or define Mineral Reserves and Mineral Resources; sufficiency of available capital resources; the Company’s Mineral Resource and Mineral Reserve estimates for each of its operations and projects and the assumptions upon which they are based; title to claims; expansion and acquisition plans; and the future plans and expectations for the Company’s properties and operations. Examples of specific information in this Annual Report on Form 40-F, that may constitute forward-looking statements are:

Regarding the Tucano Gold Mine (“Tucano”):

· expectations regarding the mine life for Tucano, the ability to successfully transition to mining higher grades in 2022 and 2023, and the ability to operate Tucano after 2023 based on converting Mineral Resources into Mineral Reserves within the mine plan;

· expectations regarding the ongoing geotechnical control of the Urucum Central South pit (“UCS”) and related slope stability, the ability to continue mining and the ability to continue to include the UCS pit as part of the Mineral Resource and Mineral Reserve Estimate;

· expectations regarding the production profile for Tucano and its ability to meet the production and cost guidance for 2021;

· expectations regarding Tucano’s significant exploration potential, including regional, and multiple in-mine and near-mine opportunities with the potential to extend the mine life by converting Mineral Resources to Mineral Reserves or discovering new Mineral Resources and its plans to complete drilling in 2021 targeting these opportunities;

· plans to continue infill drilling and related expectations and timing regarding the potential for an underground mine and possible plans to make a decision to complete a feasibility study, following completion of an underground targeted drill program;

· expectation that we will be successful in our Federal appeal regarding among other matters the ban on the use of cyanide in respect of our Tucano operations; and

· expectations regarding capital and operating expenditures at Tucano.

Regarding the Guanajuato Mine Complex (“GMC”) which comprises the Guanajuato Mine (“Guanajuato”), the San Ignacio Mine (“San Ignacio”) and the Cata processing plant:

· expectations that the Company will maintain operations while it continues to wait for the results of the Comisión Nacional del Agua (“CONAGUA”) evaluation of the technical information submitted for the expansion of the GMC tailings storage facility (lifts 18 and 19) and that the Company can successfully extend is current tailings storage capacity using cyclones through to June 2021 while it awaits CONAGUA approval;

· expectations that the current tailings footprint at the GMC can be maintained and can support operations at the GMC until May 2023, which capacity is subject to receipt of further permits and approvals;

· expectations that permits associated with the use and expansion of the tailings storage facility at the GMC will be granted in due course and on favourable terms, with no suspension of the GMC operations;

· expectations that additional Mineral Resources may be identified at the GMC, including whether or not such Mineral Resources can be defined as Mineral Reserves, and expectations that these Mineral Resources can be mined without first completing a feasibility study and converting these Mineral Resources into Mineral Reserves;

· expectations that the Company will receive any additional water use and discharge permits required to maintain operations at the GMC; and

· expectations regarding the results of exploration programs at Guanajuato in 2021.

Regarding the Topia Mine (“Topia”):

· expectations regarding continued mining and grade recoveries at Topia given the absence of Mineral Reserves;

· expectations that the Phase II tailings storage facility can be operated as planned on the basis of positive results of monitoring and the availability of the Phase III tailings storage facility, which is expected to be available for use after constructing retaining walls and erosion controls around the base of the facility, without interruption; and

· expectations that the Company will be able to achieve compliance with the voluntary environmental audit program authorized by the Procuraduría Federal de Protección al Ambiente in a timely manner and that upon completion of the compliance program, further reviews will not lead to future suspensions of operations.

Regarding the Coricancha Mine (“Coricancha”):

· expectation that pending proposals for modification of an approved closure plan will conclude with the approval of the Ministry of Energy and Mines, which may also resolve any related fines or penalties;

· expectations regarding the availability of funds to restart production, the timing of any production decision, and the ability to restart a commercially viable mine;

· expectations regarding the costs to restart Coricancha;

· expectations that Coricancha can be restarted and operated on the operating assumptions confirmed by the Bulk Sample Program which are preliminary in nature and are not based on Mineral Resources that have been defined as Mineral Reserves and include Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them;

· expectations regarding recoveries from Nyrstar in relation to its Coricancha indemnification obligations and the potential funding obligations under bonds posted with the Ministry of Energy and Mines as security for closure and reclamation obligations;

· opportunities relating to optimization of mining, future exploration and the expansion of the mine life indicated under the preliminary economic assessment which is preliminary in nature and are not based on Mineral Resources that have been defined as Mineral Reserves and include Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them;

· expectations regarding the impact of the Company’s constitutional case concerning the reclamation and remediation of legacy tailings and the consequence of the removal of the injunction; and

· expectations regarding the reclamation process, including the timing and cost to complete required reclamation.

Regarding general corporate matters:

· guidance and outlook for future production, cash cost, all-in sustaining cost, sustaining capital, planned metres of drilling and expenditures, operating costs, capital expenditures and exploration growth costs, as well as the ability of the Company to meet consolidated guidance and individual mine guidance;

· expectations that the Company will be able to generate positive cash flow from operations in 2021 prior to capital investments, exploration and evaluation and development costs, and debt repayment obligations, at current metal prices and at current exchange rates for the Brazilian Real (“BRL”) and Mexican Peso (“MXN”) to the United States Dollar (“USD”);

· the Company's plans to evaluate and pursue acquisition opportunities to complement its existing portfolio;

· expectations that along with its cash flow generated from mining activities, and its current cash and other net working capital, including cash raised from equity and debt financing and the at-the-market facility, that it will have sufficient capital resources to fund capital investments and projects and to repay indebtedness and carry out the programs and plans necessary to maintain and grow operations;

· expectations that the Company’s operations will not be impacted materially by government or industry measures to control the spread of COVID-19, including the impact of future orders of federal governments to curtail or cease mining operations in Brazil or Mexico;

· expectations with respect to the future anticipated impact of COVID-19 on our operations, assumptions related to the global supply of COVID-19 vaccines and the roll-out in each country, and the effectiveness and results of any vaccines, the lessening or increase in pandemic-related restrictions, and the anticipated rate and timing for the same;

· estimates made by management in the preparation of the Company’s financial statements relating to the assessments of provisions for loss and contingent liabilities relating to legal proceedings and the estimation of the carrying value of the Company’s mineral properties;

· estimates concerning reclamation and remediation obligations and the assumptions underlying such estimates;

· expectations that metallurgical, environmental, permitting, legal, title, taxation, socio-economic, political, social, marketing or other issues will not materially affect the Company’s estimates or Mineral Reserves and Mineral Resources or its future mining plans;

· expectations regarding future debt or equity financings, including any sales under the Company’s existing at-the-market facility to improve working capital, fund planned capital investments and exploration programs for its operating mines, for acquisitions and to meet scheduled debt repayment obligations;

· expectations regarding access to additional capital to fund further expansion or development plans and general working capital needs; and

· expectations in respect of permitting and development activities.

These forward-looking statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include:

· the assumptions underlying the Company’s guidance and outlook continuing to be accurate;

· continued operations at all three of the Company’s mines for 2021 without significant interruption due to COVID-19 or any other reason;

· continued operations at Tucano in accordance with the Company’s mine plan, including the expectations regarding the ongoing geotechnical control of UCS where mining restarted in late October;

· the accuracy of the Company’s Mineral Reserve and Mineral Resource estimates and the assumptions upon which they are based;

· the Company’s ability to mine Tucano in accordance with the planned production schedule;

· ore grades and recoveries;

· prices for silver, gold, and base metals remaining as estimated;

· currency exchange rates remaining as estimated;

· capital, decommissioning and reclamation estimates;

· the Company will not be required to further impair Tucano as the current open-pit Mineral Reserves are depleted through mining;

· prices for energy inputs, labour, materials, supplies and services (including transportation);

· national and international transportation arrangements to deliver Tucano’s gold doré to international refineries continue to remain available, despite inherent risks due to COVID-19;

· international refineries that the Company uses continue to operate and refine the Company’s gold doré, and in a timely manner such that the Company is able to realize revenue from the sale of its refined metal in the timeframe anticipated, despite inherent risks due to COVID-19;

· all necessary permits, licenses and regulatory approvals for the Company’s operations are received in a timely manner on favourable terms, including the granting of permits for the GMC tailing storage facility in time and without condition to prevent interruption to operations;

· the Company’s ability to comply with environmental, health and safety laws;

· the Topia Phase III tailings storage facility will be available when the Phase II tailings storage facility is no longer available;

· Tucano will be able to continue to use cyanide in its operations;

· management’s estimates in connection with the assessment of provisions for loss and contingent liabilities relating to legal proceedings will not differ materially from the ultimate loss or damages incurred by the Company;

· the Company will be able to meet its production forecasts and generate the anticipated cash flow from operations for 2021 with the result that the Company will be able to meet its scheduled debt payments when due;

· management’s estimates regarding the carrying value of its mineral properties will not change in future financial periods, such that it would result in further write-downs and consequential impairment loss;

· the accuracy of the information included or implied in the various published technical reports;

· the geological, operational and price assumptions on which these technical reports are based;

· conditions in the financial markets;

· the ability to attract and retain skilled staff;

· the ability to procure equipment and operating supplies and that there are no unanticipated material variations in the cost of energy or supplies;

· the ability to secure contracts for the sale of the Company’s products (metals concentrates and gold doré);

· the execution and outcome of current or future exploration activities;

· the ability to obtain adequate financing for planned activities and to complete further exploration programs;

· the Company will not experience project delays and cost overruns, or unanticipated excessive operating costs and expenses;

· the Company’s ability to maintain adequate internal controls over financial reporting, and disclosure controls and procedures;

· the ability of contractors to perform their contractual obligations; and

· operations not being disrupted by issues such as workforce shortages, mechanical failures, labour or social disturbances, illegal occupations or mining, seismic events, and adverse weather conditions.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to:

· open pit mining operations at Tucano have a limited established mine life and the Company may not be able to extend the mine life of Tucano open pit operations beyond 2023 as anticipated or maintain production levels consistent with past production as Mineral Reserves are depleted;

· the Company may experience an increase in COVID-19 infection amongst its employees and contractors even with the adoption of enhanced safety protocols and safeguards;

· the Company cannot provide assurance that there will not be interruptions to its operations in the future as a result of COVID-19 including: (i) the impact restrictions that governments may impose or the Company voluntarily imposes to address COVID-19, which if sustained or resulted in a significant curtailment could have a material adverse impact on the Company’s production, revenue and financial condition and may materially impact the Company’s ability to meet its production guidance included herein and complete near-mine and regional exploration plans at Tucano; (ii) shortages of employees; (iii) unavailability of contractors and subcontractors; (iv) interruption of supplies and the provision of services from third parties upon which the Company relies; (v) restrictions that governments impose to address the COVID-19 outbreak; (vi) disruptions in transportation services that could impact the Company’s ability to deliver gold doré and metal concentrates to refineries; (vii) restrictions that the Company and its contractors and subcontractors impose to ensure the safety of employees and others; (viii) restrictions on operations imposed by governmental authorities; (ix) delays in permitting; and (x) the Company may not be able to modify its operations in order to maintain production, including the availability to modify work shifts at Tucano, if necessary;

· the Company’s ability to appropriately capitalize and finance its operations, including the risk that the Company is: (i) unable to renew or extend existing credit facilities that become due which may increase the need to raise new external sources of capital; or (ii) unable to access sources of capital which could adversely impact the Company’s liquidity and require the Company to curtail capital and exploration program, and other discretionary expenditures;

· planned exploration activities may not result in the conversion of existing Mineral Resources into Mineral Reserves or discovery of new Mineral Resources;

· the Company may be unable to meet its production forecasts or to generate the anticipated cash flows from operations, and as a result, the Company may be unable to meet its scheduled debt payments when due or to meet financial covenants to which the Company is subject;

· the inherent risk that estimates of Mineral Reserves and Resources may not be accurate and accordingly that mine production and recovery will not be as estimated or predicted;

· gold, silver and base metal prices may decline or may be less than forecasted or may experience unpredictable fluctuations;

· fluctuations in currency exchange rates (including the USD to BRL exchange rate) may increase costs of operations;

· even though a geotechnical consultant has given the approval to restart mining the UCS pit, there is no assurance that the Company will be able to continue mining through to the first quarter of 2022 as planned and be able to access the UCS Mineral Reserves which may adversely impact the Company’s production plans, future revenue and financial condition;

· challenging operational viability of Mexican operations;

· operational and physical risks inherent in mining operations (including pit wall collapses, tailings storage facility failures, environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather) may result in unforeseen costs, shutdowns, delays in production and exposure to liability;

· there is no assurance that the Company will be able to identify or complete acquisition opportunities or, if completed that such acquisitions will be accretive to the Company;

· management’s estimates regarding the carrying value of its mineral properties may be subject to change in future financial periods, which may result in further write-downs and consequential impairment loss;

· management’s estimates in connection with the assessment of provisions for loss and contingent liabilities relating to legal proceedings may differ materially from the ultimate loss or damages incurred by the Company;

· potential political and social risks involving Great Panther’s operations in a foreign jurisdiction;

· the potential for unexpected and excessive costs and expenses and the possibility of project delays;

· employee and contractor relations;

· relationships with, and claims by, local communities;

· the Company’s ability to obtain and maintain all necessary permits, licenses and regulatory approvals in a timely manner and on favourable terms, including the granting of permits for the expansion of the GMC tailings storage facility in time and without conditions which if not granted or conditioned could result in an interruption of operations and the ability to maintain those permits, licences and regulatory approvals and the conditions required thereunder;

· changes in laws, regulations and government practices in the jurisdictions in which the Company operates, including the potential labour reforms in Mexico which could increase costs of our operations, the impacts of which could be significant;

· legal restrictions related to mining;

· the inability to operate the Topia Phase II tailings storage facility as planned, or to commence stacking at Topia Phase III when Phase II tailings storage facility is no longer available;

· diminishing quantities or grades of mineralization as properties are mined;

· operating or technical difficulties in mineral exploration and changes in project parameters as plans continue to be refined;

· acts of foreign governments;

· political risk;

· labour or social unrest;

· illegal mining, including the potential for safety and security risks related thereto;

· uncertainties related to title to the Company’s mineral properties and the surface rights thereon, including the Company’s ability to acquire, economically acquire or maintain/renew, the surface rights to certain of the Company’s exploration and development projects, as well as the surface rights associated with the Company’s operations and facilities;

· unanticipated operational difficulties due to adverse weather conditions, failure of plant or mine equipment and unanticipated events related to health, safety, and environmental matters;

· uncertainty of revenue, cash flows and profitability, the potential to achieve any particular level of recovery, the costs of such recovery, the rates of production and costs of production, where production decisions are not based on any feasibility studies of Mineral Reserves demonstrating economic and technical viability;

· cash flows may vary and the Company’s business may not generate sufficient cash flow from operations to enable it to satisfy its debt and other obligations;

· an unfavourable decision by the Ministry of Energy and Mines with respect to the proposed modification to the Coricancha closure plan;

· fines, penalties, regulatory actions or charges against the Company’s Coricancha subsidiary arising from the removal of the injunction, including the potential for cumulative fines and penalties outside the control of the Company and its subsidiary;

· reclamation costs exceed the amounts estimated and exceed the amount which Nyrstar has agreed to reimburse;

· failure of counterparties to perform their contractual obligations, including risk that Nyrstar is unable to fund its indemnity obligations under the agreements related to the acquisition of Coricancha, as such have been amended from time to time, and the guarantors thereunder do not have the necessary financial resources to discharge their obligations under the guarantees;

· litigation risk, including the risk that the Company will not be successful in resolving its existing litigation or that it will become subject to further litigation in the future;

· certain of the Company’s directors and officers may continue to be involved in a wide range of business activities through their direct and indirect participation in corporations, partnerships or joint arrangements, some of which are in the same business as the Company and situations may arise in connection with potential acquisitions and investments where the other interests of these directors and officers may conflict with the interests of the Company;

· deterioration of general economic conditions, including increased volatility and global financial conditions; and

· the Company’s ability to operate as anticipated,

and other risks and uncertainties, including those described in respect of Great Panther in its most recent Annual Information Form for the year ended December 31, 2020, and material change reports filed with the Canadian Securities Administrators available at www.sedar.com and reports on Form 40-F and Form 6-K filed with the SEC and available at www.sec.gov.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information.

The Company’s forward-looking statements are based on the assumptions, beliefs, expectations and opinions of management as of the date of this Annual Report on Form 40-F. The Company will update forward-looking statements and information if and when, and to the extent required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Further information can be found in the section entitled "Risk Factors" in the most recent Annual Information Form for the year ended December 31, 2020 on file with the Canadian securities regulatory authorities. Readers are advised to carefully review and consider the risk factors identified in this Annual Report on Form 40-F/AIF for a discussion of the factors that could cause the Company’s actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. It is recommended that prospective investors consult the complete discussion of the Company’s business, financial condition and prospects that is included in this Annual Report on Form 40-F.

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING
ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES

As a British Columbia corporation and a “reporting issuer” under Canadian securities laws, the Company is required to provide disclosure regarding its mineral properties in accordance with Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”). NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. In accordance with NI 43-101, the Company uses the terms Mineral Reserves and Resources as they are defined in accordance with the CIM Definition Standards on Mineral Reserves and Resources (the “CIM Definition Standards”) adopted by the Canadian Institute of Mining, Metallurgy and Petroleum.

The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the United States Securities and Exchange Commission (the “SEC”) under the U.S. Exchange Act. These amendments became effective February 25, 2019 (the “SEC Modernization Rules”). The SEC Modernization Rules have replaced the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7 (“Guide 7”), which have been rescinded. As a foreign private issuer that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system (the “MJDS”), the Registrant is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101. If the Registrant ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the MJDS, then the Registrant will be subject to the SEC Modernization Rules, which differ from the requirements of NI 43-101.

The SEC Modernization Rules include the adoption of terms describing Mineral Reserves and Mineral Resources that are substantially similar to the corresponding terms under the CIM Definition Standards. As a result of the adoption of the SEC Modernization Rules, SEC will recognizes estimates of Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources. In addition, the SEC has amended its definitions of Proven Mineral Reserves and Probable Mineral Reserves to be substantially similar to the corresponding CIM Definition Standards.

United States investors are cautioned that while the above terms are substantially similar to CIM Definitions, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any Mineral Reserves or Mineral Resources that the Company may report as Proven Reserves, Probable Reserves, Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

United States investors are also cautioned that while the SEC will now recognize Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources, investors should not to assume that any part or all of the mineralization in these categories will ever be converted into a higher category of Mineral Resources or into Mineral Reserves. Mineralization described using these terms has a greater amount of uncertainty as to their existence and feasibility than mineralization that has been characterized as reserves. Accordingly, investors are cautioned not to assume that any Measured Mineral Resources, Indicated Mineral Resources, or Inferred Mineral Resources that the Company reports are or will be economically or legally mineable.

Further, Inferred Mineral Resources have a greater amount of uncertainty as to their existence and as to whether they can be mined legally or economically. Therefore, United States investors are also cautioned not to assume that all or any part of the Inferred Mineral Resources exist. In accordance with Canadian rules, estimates of Inferred Mineral Resources cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101.

For the above reasons, information contained in this Annual Report and the documents incorporated by reference herein containing descriptions of our mineral deposits may not be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

In addition, disclosure of “contained ounces” is permitted disclosure under Canadian regulations; however, the SEC has historically only permitted issuers to report mineralization as in place tonnage and grade without reference to unit measures.

 NOTE TO UNITED STATES READERS REGARDING DIFFERENCES
BETWEEN UNITED STATES AND CANADIAN REPORTING PRACTICES

The Company is permitted to prepare this Annual Report in accordance with Canadian disclosure requirements, which are different from those of the United States. The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards, as issued by the International Accounting Standards Board, which differ in certain respects from United States generally accepted accounting principles (“US GAAP”) and from practices prescribed by the SEC. Therefore, the Company’s financial statements incorporated by reference in this Annual Report may not be comparable to financial statements prepared in accordance with US GAAP.

CURRENCY

Unless otherwise indicated, all dollar amounts in this Annual Report are in United States dollars. The exchange rate of United States dollars into Canadian dollars on December 31, 2020 (the last business day of the year), based upon the daily average rate published by the Bank of Canada, was US$1.00=CDN$1.2732. The exchange rate of United States dollars into Canadian dollars, on March 11, 2021, based upon the daily average rate as published by the Bank of Canada, was US$1.00=CDN$1.2561.

DISCLOSURE CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Disclosure controls and procedures are defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act to mean controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that such information is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management’s Evaluation of Disclosure Controls and Procedures

At the end of the period covered by this Annual Report on Form 40-F, being the fiscal year ended December 31, 2020, an evaluation was carried out under the supervision of and with the participation of the Company’s management (“Management”), including the President and Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the design and operations of the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act). Based on that evaluation the CEO and the CFO have concluded that, as of the end of the period covered by this Annual Report, the Company’s disclosure controls and procedures were effective to give reasonable assurance that the information required to be disclosed by the Company in reports that it files or submits to the SEC under the Exchange Act is:

· recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms; and

· accumulated and communicated to Management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

INTERNAL CONTROL OVER FINANCIAL REPORTING

Internal Control over Financial Reporting

Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act as a process designed by, or under the supervision of, the issuer’s principal executive and principal financial officers and effected by the issuer’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

· pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;

· provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and

· provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that may have a material effect on the financial statements.

The Company’s internal control system is designed to provide reasonable assurance to Management and the board of directors (“Board of Directors”) regarding the preparation and fair presentation of published financial statements. All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Also, projections of any evaluation of effectiveness of internal control over financial reporting to future periods are subject to risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management’s Assessment of Internal Control over Financial Reporting

The Company’s Management is responsible for establishing and maintaining adequate internal control over financial reporting. Management conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by The Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this evaluation, Management concluded that the Company’s internal control over financial reporting was effective as of December 31, 2020.

The Board of Directors is responsible for ensuring that Management fulfills its responsibilities. The Company’ audit committee (“Audit Committee”) fulfills its role of ensuring the integrity of the reported information through its review of the interim and annual financial statements. Management reviewed the results of their assessment with the Company’s Audit Committee.

Attestation Report

KPMG LLP has audited the Company’s internal control over financial reporting and has issued an attestation report on the Company’s internal control over financial reporting which is included with the Company’s audited financial statements which are attached as Exhibit 99.2 to this Annual Report on Form 40-F.

Changes in Internal Control over Financial Reporting

Disclosure controls and procedures within the Company have been designed to provide reasonable assurance that all relevant information is identified to its CEO and its CFO to ensure appropriate and timely decisions are made regarding public disclosure. Internal controls over financial reporting have been designed by management under the supervision of, and with the participation of the Company's CEO and CFO, to provide reasonable assurance regarding the reliability of the Company’s financial reporting and its preparation of financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. There have been no changes that occurred during the year ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

For accounting purposes, on March 5, 2019, the Company completed its acquisition of Beadell Resources Limited, a gold mining company previously listed on the Australian Securities Exchange. Beadell owned and operated the Tucano Gold Mine, (“Tucano”), which produces gold doré and is located in Amapá State in northern Brazil. As permitted by the Sarbanes-Oxley Act and applicable Canadian Securities Commission rules related to business acquisitions, the Company excluded Tucano from its annual assessment of internal controls over financial reporting for the year ending December 31, 2019. For the year ended December 31, 2020, Tucano was included in management's annual assessment of internal controls over financial reporting.

NOTICES PURSUANT TO REGULATION BTR

The Company did not send any notices required by Rule 104 of Regulation BTR during the year ended December 31, 2020 concerning any equity security subject to a blackout period under Rule 101 of Regulation BTR.

CORPORATE GOVERNANCE

The Company is subject to corporate governance requirements prescribed under applicable Canadian securities laws, rules and policies. The Company is also subject to corporate governance requirements prescribed by the listing standards of the NYSE American, and the rules and regulations promulgated by the SEC under the Exchange Act (including those applicable rules and regulations mandated by the Sarbanes-Oxley Act of 2002).

Section 110 of the NYSE American Company Guide permits NYSE American to consider the laws, customs and practices of foreign issuers in relaxing certain NYSE American listing criteria, and to grant exemptions from NYSE American listing criteria based on these considerations. A company seeking relief under these provisions is required to provide written certification from independent local counsel that the non-complying practice is not prohibited by home country law.

Section 123 of the NYSE American Company Guide recommends that the quorum for meetings of shareholders of a listed company be not less than 33-1/3% of the issued and outstanding shares entitled to vote at a meeting of shareholders. Upon listing, the Company received an exemption from this listing standard. The Company’s quorum requirement is specified in its corporate charter as two persons who are, or who represent by proxy, shareholders.

Section 713 of the NYSE American Company Guide requires that the Company obtain the approval of its shareholders for share issuances equal to 20 percent or more of presently outstanding shares for a price which is less than the greater of book or market value of the shares. This requirement does not apply to public offerings. There are no such requirements under British Columbia corporate law. However, under the rules of the Toronto Stock Exchange (the “TSX”), the Company’s home stock exchange, shareholder approval is required for certain issuances of shares that (i) materially affect control of the Company, or (ii) provide consideration to insiders in aggregate of 10% or greater of the market capitalization of the Company in transactions that have not been negotiated at arm’s length.  Shareholder approval is also required under TSX rules for private placements in circumstances where (i) the aggregate number of listed securities issuable is greater than 25% of the number of securities of the listed issuer which are outstanding, on a non-diluted basis, prior to the date of closing of the transaction if the price per security is less than the market price, and (ii) there are issuances during any six month period to insiders for listed securities or options, rights or other entitlements to listed securities greater than 10% of the number of securities of the listed issuer which are outstanding, on a non-diluted basis, prior to the date of the closing of the first private placement to an insider during the six month period. The Company intends to seek a waiver from NYSE American’s section 713 requirements should a dilutive private placement financing trigger the NYSE American shareholders’ approval requirement in circumstances where the same financing does not trigger such a requirement under British Columbia law or under TSX rules.

The Company believes that there are otherwise no significant differences between its corporate governance policies and those required to be followed by United States domestic issuers listed on the NYSE American. In particular, in addition to having a separate Audit Committee, the Company’s Board of Directors has established: (i) a separately-designated People & Culture Committee that materially meets the requirements for a compensation committee under section 805 of the NYSE American Company Guide, as currently in force; and (ii) a separately-designated Nominating and Corporate Governance Committee that materially meets the requirements for a nominating committee under section 804 of the NYSE American Company Guide, a currently in force.

Copies of the Company’s corporate governance materials are available on the Company’s website at www.greatpanther.com (under the Corporate/Governance/Governance and Policies tab). In addition, the Company is required by National Instrument 58-101 of the Canadian Securities Administrators, Disclosure of Corporate Governance Practices, to describe its practices and policies with regard to corporate governance in management information circulars that are furnished to the Company’s shareholders in connection with annual meetings of shareholders.

AUDIT COMMITTEE

Composition of the Audit Committee

The Company's Board of Directors has a separately designated standing Audit Committee established in accordance with Section 3(a)(58)(A) of the Exchange Act and Section 803(B)(2) of the NYSE American Company Guide. The Company's Audit Committee comprises three directors that the Board of Directors have determined are independent as determined under each of Rule 10A-3 under the Exchange Act and Section 803(A) of the "NYSE American" Company Guide:

· Elise Rees (Chair)

· Joseph Gallucci

· R. W. (Bob) Garnett

· John Jennings

All four members of the Audit Committee are financially literate, meaning they are able to read and understand the Company's financial statements and to understand the breadth and level of complexity of the issues that can reasonably be expected to be raised by the Company's financial statements. The Audit Committee meets the composition requirements set forth by Section 803(B)(2) of NYSE American Company Guide.

Audit Committee Charter

The full text of the Charter of the Audit Committee is attached as Schedule A to the Company's Annual Information Form which is filed as Exhibit 99.1 to this Annual Report. The Charter of the Audit Committee is also available on the Company’s website at www.greatpanther.com (under the links Corporate > Corporate Governance and Policies).

Audit Committee Financial Expert

The Company’s Board of Directors has determined that both Elise Rees and Bob Garnett, are audit committee financial experts (as that term is defined in General Instruction B(8) of Form 40-F).

CODE OF BUSINESS CONDUCT AND ETHICS

Adoption of Code of Ethics

The Company has adopted a Code of Business Conduct and Ethics (the “Code of Ethics”) for all its directors, executive officers and employees. The Code of Ethics materially complies with Section 807 of the NYSE American Company Guide. The Code of Ethics meets the requirements for a “code of ethics” within the meaning of that term in Form 40-F. The text of the Code of Ethics is posted on the Company's website at www.greatpanther.com (under the links Corporate > Corporate Governance and Policies).

Amendments or Waivers

During the fiscal year ended December 31, 2020, the Company did not substantively amend, waive or implicitly waive any provision of the Code of Ethics with respect to any of the directors, executive officers or employees subject to it.

To the extent that the Company's board or a board committee determines to grant any waiver of the Code of Ethics for an executive officer or director, the commentary to Section 807 of the NYSE American Company Guide requires that the waiver must be disclosed to shareholders within four business days of such determination.

All amendments to the Code of Ethics, and all waivers of the Code of Ethics with respect to the Company’s principal executive officer, principal financial officer or other persons performing similar functions, will be posted on the Company’s website, submitted to the SEC on Form 6-K and provided in print to any shareholder that provides the Company with a written request addressed to the Company’s Corporate Secretary.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

The information relating to the Company’s principal accountant fees and services that is included under the heading “Audit Committee Information – External Auditor Service Fees” in the 2020 Annual Information Form is hereby incorporated by reference herein. In addition, the information relating to the Audit and Risk Committee’s pre-approval policies and procedures that is included under the heading “Audit Committee Information – Pre-Approval Policy” in the 2020 Annual Information Form is hereby incorporated by reference herein.

OFF-BALANCE SHEET ARRANGEMENTS

The Company has not entered into any “off-balance sheet arrangements”, as defined in General Instruction B(11) to Form 40-F, that have or are reasonably likely to have a current or future effect on the Company’s financial condition, changes in financial condition, revenues, expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

CONTRACTUAL OBLIGATIONS

The Company's contractual obligations as at December 31, 2020 are presented in the Liquidity and Capital Resources – Contractual Obligations section of the MD&A which are attached as Exhibit 99.3 of this Annual Report on Form 40-F.

MINE SAFETY DISCLOSURE

Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (“Dodd-Frank Act”), issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities under the regulation of the Federal Mine Safety and Health Act of 1977.

The Company did not have any mines in the United States during the fiscal year ended December 31, 2020.

UNDERTAKING AND CONSENT TO SERVICE OF PROCESS

Undertaking

The Company undertakes to make available, in person or by telephone, representatives to respond to inquiries made by the Commission staff, and to furnish promptly, when requested to do so by the Commission staff, information relating to:

· the securities registered pursuant to Form 40-F;

· the securities in relation to which the obligation to file an annual report on Form 40-F arises; or

· transactions in said securities.

Consent to Service of Process

Concurrently with the filing of its Annual Report on Form 40-F with the SEC on March 14, 2013, the Company filed an Appointment of Agent for Service of Process and Undertaking on Form F-X signed by the Company and its agent for service of process with respect to the class of securities in relation to which the obligation to file this annual report arises.

Any change to the name or address of the Company’s agent for service shall be communicated promptly to the Commission by amendment to Form F-X referencing the file number of the Company.

SIGNATURES

Pursuant to the requirements of the Exchange Act, the Company certifies that it meets all of the requirements for filing on Form 40-F and has duly caused this annual report to be signed on its behalf by the undersigned, thereto duly authorized.

	GREAT PANTHER MINING LIMITED
Date: March 11, 2021
	By:	/s/ Robert Henderson
		Robert Henderson
		Chief Executive Officer and President

EXHIBIT INDEX

Exhibit No.	Exhibit Description
Principal Documents
99.1	Annual Information Form of the Company for the year ended December 31, 2020
99.2	Audited consolidated financial statements of the Company and the notes thereto for the fiscal years ended December 31, 2020 and 2019 together with the reports of the auditors thereon
99.3	Management’s Discussion and Analysis of the Company for the year ended December 31, 2020
Certifications
99.4	Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Exchange Act
99.5	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Exchange Act
99.6	Certification of Chief Executive Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
99.7	Certification of Chief Financial Officer pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
Consents
99.8	Consent of KPMG LLP, Independent Registered Public Accounting Firm
99.9	Consent of Robert F. Brown, author of the technical report entitled “NI 43-101 Report on the Topia Mine Mineral Resource Estimates” dated February 28, 2019; co-author of the technical report entitled “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato and San Ignacio Operations, Guanajuato State, Mexico”, dated December 22, 2020; and author of technical report entitled “NI 43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine, and El Horcón and Santa Rosa Projects”, dated February 20, 2017.
99.10	Consent of Ronald Turner, co-author of the technical report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex” dated July 13, 2018.
99.11	Consent of Daniel A. Saint Don, co-author of the technical report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex” dated July 13, 2018.
99.12	Consent of Jeffrey L. Woods, co-author of the technical report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex” dated July 13, 2018.
99.13	Consent of Reno Pressacco, co-author of the technical report entitled “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of The Tucano Gold Mine, Amapá State, Brazil” dated February 2, 2021.
99.14	Consent of Tudorel Ciuculescu, co-author of the technical report entitled “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil” dated February 2, 2021.
99.15	Consent of Fernando A. Cornejo, co-author of the technical report entitled “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil” dated February 2, 2021.
99.16	Consent of Neil Hepworth, co-author of the technical report entitled “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil” dated February 2, 2021.
99.17	Consent of Carlos H.B. Pires, co-author of the “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil” dated February 2, 2021.
99.18	Consent of Nicholas Winer, co-author of the “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil” dated February 2, 2021.
99.19	Consent of Mohammad Nourpour, co-author of the “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato and San Ignacio Operations, Guanajuato State, Mexico”, dated December 22, 2020.

EX-99.1

Exhibit 99.1

 

GREAT PANTHER MINING LIMITED

ANNUAL INFORMATION FORM

FOR THE YEAR ENDED DECEMBER 31, 2020

March 11, 2021

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 1 

GREAT PANTHER MINING LIMITED (“COMPANY”)
ANNUAL INFORMATION FORM

Contents

CONTENTS		2
1.	IMPORTANT INFORMATION ABOUT THIS DOCUMENT	4
1.A.	DATE OF INFORMATION	4
1.B.	NOMENCLATURE	4
1.C.	FINANCIAL INFORMATION AND REPORTING CURRENCY	4
1.D.	CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS	5
1.E.	SCIENTIFIC AND TECHNICAL INFORMATION	11
1.F.	CANADIAN MINERAL PROPERTY STANDARDS AND RESERVE/ RESOURCE ESTIMATES	13
1.G.	CAUTIONARY NOTES TO U.S. INVESTORS REGARDING RESOURCE AND RESERVE ESTIMATES	13
1.H.	GLOSSARY OF TERMS AND UNITS OF MEASURE	14
2.	CORPORATE STRUCTURE	19
2.A.	NAME, ADDRESS AND INCORPORATION	19
2.B.	INTERCORPORATE RELATIONSHIPS	19
3.	GENERAL DEVELOPMENT OF THE BUSINESS	20
3.A.	GENERAL	20
3.B.	KEY DEVELOPMENTS	20
3.C.	SIGNIFICANT ACQUISITIONS	25
4.	DESCRIPTION OF THE BUSINESS	25
4.A.	PRINCIPAL MARKETS	25
4.B.	PRODUCT MARKETING, SALES AND DISTRIBUTION	26
4.C.	SEASONALITY	28
4.D.	SPECIALIZED SKILL AND KNOWLEDGE	28
4.E.	COMPETITIVE CONDITIONS	28
4.F.	DOING BUSINESS IN BRAZIL, MEXICO AND PERU	29
4.G.	ENVIRONMENTAL PROTECTION	33
4.H.	EMPLOYEES	34
4.I.	COMMUNITY ENGAGEMENT AND SUSTAINABLE DEVELOPMENT	34
4.J.	HEALTH AND SAFETY	35
5.	MINING PROPERTIES	37
5.A.	TUCANO	37
5.B.	GMC	52
5.C.	TOPIA	65
6.	ADVANCED-STAGE PROJECTS	74
6.A.	CORICANCHA	74
7.	PRIMARY EXPLORATION PROPERTIES	88
8.	RISK FACTORS	95
9.	DIVIDENDS	121
10.	DESCRIPTION OF CAPITAL STRUCTURE	121

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 2 

11.	MARKET FOR SECURITIES	122
11.A.	TRADING PRICE AND VOLUME	122
11.B.	PRIOR SALES	122
12.	ESCROWED SECURITIES	123
13.	DIRECTORS AND OFFICERS	124
13.A.	NAMES, OCCUPATIONS AND SECURITY HOLDINGS	124
13.B.	CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS	126
13.C.	CONFLICTS OF INTEREST	127
14.	AUDIT COMMITTEE INFORMATION	127
14.A.	AUDIT COMMITTEE CHARTER	127
14.B.	MEMBERS OF THE AUDIT COMMITTEE	128
14.C.	PRE-APPROVAL POLICY	129
14.D.	EXTERNAL AUDITOR SERVICE FEES	129
15.	LEGAL PROCEEDINGS AND REGULATORY ACTIONS	129
15.A.	VARIOUS CLAIMS RELATED TO BRAZIL INDIRECT TAXES AND LABOUR MATTERS	130
15.B.	ENVIRONMENTAL DAMAGES - WILLIAM CREEK	130
15.C.	ARCHAEOLOGICAL SITES DAMAGE	130
15.D.	CYANIDE USAGE	131
16.	INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS	131
17.	TRANSFER AGENTS AND REGISTRARS	131
18.	MATERIAL CONTRACTS	132
18.A.	LIST OF MATERIAL CONTRACTS	132
18.B.	DESCRIPTION OF MATERIAL CONTRACTS	132
19.	INTERESTS OF EXPERTS	133
20.	ADDITIONAL INFORMATION	135
SCHEDULE “A” CHARTER OF THE AUDIT COMMITTEE		136

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 3 

1. IMPORTANT INFORMATION ABOUT THIS DOCUMENT

1.A. DATE OF INFORMATION

Unless otherwise noted, all information contained in this Annual Information Form (“AIF”) is as at December 31, 2020.

1.B. NOMENCLATURE

In this AIF, unless the context otherwise dictates, “Great Panther” or the “Company” refers to Great Panther Mining Limited, and its subsidiaries.

1.C. FINANCIAL INFORMATION AND REPORTING CURRENCY

The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board (“IFRS”). IFRS differs in some respects from Generally Accepted Accounting Principles in the United States, and thus the Company’s financial statements may not be comparable to financial statements of US companies.

The Company’s financial statements are presented in United States dollars (the reporting and functional currency of the Canadian parent company). Financial, share price and operating information presented in this AIF is presented in US dollars (“USD”), unless otherwise noted. Unless we have specified otherwise, all references to dollar amounts, $ or US$ are to USD. All references to C$ are to Canadian dollars.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 4 

1.D. CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this AIF constitute “forward-looking statements” within the meaning of the United States “Private Securities Litigation Reform Act” of 1995 and “forward-looking information” within Canadian securities laws (collectively, “forward-looking statements”). All statements, other than statements of historical fact, addressing activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the words “anticipates”, “believes”, “expects”, “may”, “likely”, “plans”, “intends”, “expects”, “may”, “forecast”, “project”, “budgets”, “guidance”, “targets”, “potential”, and “outlook”, or similar words, or statements that certain events or conditions “may”, “might”, “could”, “can”, “would”, or “will occur. Forward-looking statements reflect the Company’s current expectations and assumptions and, are subject to a number of known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

In particular, this AIF includes forward-looking statements as noted throughout the document relating to estimates, forecasts, and statements as to management’s expectations, opinions and assumptions with respect to the future guidance and outlook of production of gold, silver, lead and zinc; profit, operating and capital costs, growth expenditures and cash flow; grade improvements; sales volume and selling prices of products; capital and exploration expenditures, plans, timing, progress, and expectations for the development and mine life of the Company’s mines and projects, including its planned exploration and drilling programs (metres drilled), plans to evaluate future financing opportunities, including the potential to use at-the-market facilities, planned use of proceeds from financings completed by the Company; the Company’s Mineral Resource and Mineral Reserve estimates for each of its operations and projects and the assumptions upon which they are based; the timing of production and the cash and total costs of production; sensitivity of earnings to changes in commodity prices and exchange rates; the impact of foreign currency exchange rates; expenditures to increase or define Mineral Reserves and Mineral Resources; sufficiency of available capital resources; title to claims; expansion and acquisition plans; and the future plans and expectations for the Company’s properties and operations. Examples of specific information in this AIF that may constitute forward-looking statements are:

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 5 

Regarding the Tucano gold mine (“Tucano”):

• expectations regarding the mine life for Tucano and the ability to operate Tucano after 2023 based on converting Mineral Resources into Mineral Reserves within the mine plan;

• expectations regarding the ongoing geotechnical control of the Urucum Central South pit (“UCS”) and related slope stability, the ability to continue mining and the ability to continue to include the UCS pit as part of the Mineral Resource and Mineral Reserve estimate;

• expectations regarding the production profile for Tucano and its ability to meet the production and cost guidance for 2021;

• expectations regarding Tucano’s significant exploration potential, including regional, and multiple in-mine and near mine opportunities with the potential to extend the mine life by converting Mineral Resources to Mineral Reserves or discovering new Mineral Resources and its plans to complete drilling in 2021 targeting these opportunities;

• plans to continue infill drilling and related expectations and timing regarding the potential for an underground mine and possible plans to make a decision to complete a feasibility study following completion of an underground targeted drill program; and expectation that we will be successful in our Federal appeal regarding among other matters the ban on the use of cyanide in respect of our Tucano operations; and

• expectations regarding operating and capital expenditures at Tucano.

Regarding the Guanajuato Mine Complex (the “GMC”) which comprises the Guanajuato Mine (“Guanajuato”), the San Ignacio Mine (“San Ignacio”), and the Cata processing plant:

• expectations that the Company will maintain operations while it continues to wait for the results of the CONAGUA evaluation of the technical information submitted for the expansion of the GMC TSF (lifts 18 and 19) and that the Company can successfully extend is current tailings storage capacity through to June 2021 while it awaits CONAGUA approval;

• expectations that the current tailings footprint at the GMC can be maintained and can support operations until May 2023, which capacity is subject to receipt of further permits and approvals;

• expectations that permits associated with the use and expansion of the TSF at the GMC will be granted in due course and on favourable terms, with no suspension of the GMC’s operations;

• expectations that additional Mineral Resources may be identified at the GMC, including whether or not such Mineral Resources can be defined as Mineral Reserves, and expectations that these Mineral Resources can be mined without first completing a feasibility study and converting these Mineral Resources into Mineral Reserves;

• expectations that the Company will receive any additional water use and discharge permits required to maintain operations at the GMC; and

• expectations regarding the results of exploration programs at Guanajuato in 2021.

Regarding the Topia mine (“Topia”):

• expectations regarding continued mining and grade recoveries at Topia given the absence of Mineral Reserves;

• expectations that the Phase II TSF can be operated as planned on the basis of positive results of monitoring and the availability of the Phase III TSF, which is expected to be available for use after constructing retaining walls and erosion controls around the base of the facility, without interruption; and

• expectations that the Company will be able to achieve compliance with the voluntary environmental audit program authorized by the PROFEPA in a timely manner, and that upon completion of the compliance program, further reviews will not lead to future suspensions of operations.

Regarding the Coricancha Mine Complex (“Coricancha”):

• expectation that pending proposals for modification of an approved closure plan will conclude with the approval of the MEM, which may also resolve any related fines or penalties;

• expectations regarding the availability of funds to restart production, the timing of any production decision and the ability to restart the mine as a commercially viable mine;

• expectations regarding the costs to restart Coricancha;

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 6 

• expectations that Coricancha can be restarted and operated on the operating assumptions confirmed by the bulk sample program which are preliminary in nature and are not based on Mineral Resources that have been identified as Mineral Reserves;

• expectations regarding recoveries from Nyrstar in relation to its Coricancha indemnification obligations and the potential funding obligations under bonds posted with the MEM as security for closure and reclamation obligations;

• expectations regarding the impact of the Company’s constitutional case concerning reclamation and remediation of legacy tailings, and the consequences of the removal of the injunction;

• expectations regarding the reclamation process, including the cost to complete the required reclamation; and

• opportunities relating to optimization of mining, future exploration and the expansion of the mine life indicated under the preliminary economic assessment disclosed in the Coricancha Technical Report, which is preliminary in nature and are not based on Mineral Resources that have been identified as Mineral Reserves.

Regarding general corporate matters:

• guidance or outlook as may be provided for future production, planned metres of drilling and expenditures, operating costs, capital expenditures, exploration growth costs and other expenditures for 2021 in respect of the individual mines;

• expectations that the Company will be able to generate positive cash flow from operations in 2021 prior to capital investments, exploration and evaluation and development costs, and debt repayment obligations, at current metal prices and at current exchange rates for the BRL and MXN to the USD;

• the Company’s plans to pursue acquisition opportunities to complement its existing portfolio;

• expectations that along with its cash flow generated from mining activities, and its current cash and other net working capital, including cash raised from equity and debt financing and the at-the-market facility, that it will have sufficient capital resources to fund capital investments and projects and to repay indebtedness and carry out the programs and plans necessary to maintain and grow operations;

• expectations that the Company’s operations will not be impacted materially by government or industry measures to control the spread of COVID-19, including the impact of future orders of federal governments to curtail or cease mining operations in Brazil or Mexico;

• expectations with respect to the future anticipated impact of COVID-19 on our operations, assumptions related to the global supply of COVID-19 vaccines and the roll-out in each country, and the effectiveness and results of any vaccines, the lessening or increase in pandemic-related restrictions, and the anticipated rate and timing for the same;

• estimates made by management in the preparation of the Company’s financial statements relating to the assessments of provisions for loss and contingent liabilities relating to legal proceedings and the estimation of the carrying value of the Company’s mineral properties;

• estimates concerning reclamation and remediation obligations and the assumptions underlying such estimates;

• expectations that metallurgical, environmental, permitting, legal, title, taxation, socio-economic, political, social, marketing or other issues will not materially affect the Company’s estimates of Mineral Reserves and Mineral Resources or its future mining plans;

• expectations regarding future debt or equity financings, including any sales under the Company’s existing at-the-market facility to improve working capital, fund planned capital investments and exploration programs for its operating mines, for acquisitions and to meet scheduled debt repayment obligations;

• expectations regarding access to additional capital to fund further expansion or development plans and general working capital needs; and

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 7 

• expectations in respect of permitting and development activities.

These forward-looking statements and information reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include:

• the assumptions underlying the Company’s guidance and outlook continuing to be accurate;

• continued operations at all three of the Company’s mines for 2021 without significant interruption due to COVID-19 or any other reason;

• continued operations at Tucano in accordance with the Company’s mine plan, including the expectations regarding the ongoing geotechnical control of UCS where mining restarted in the last week of October 2020;

• the accuracy of the Company’s Mineral Reserve and Mineral Resource estimates and the assumptions upon which they are based;

• the Company’s ability to mine Tucano in accordance with the production schedule set out in the Tucano Technical Report;

• ore grades and recoveries;

• prices for gold, silver, and base metals remaining as estimated;

• currency exchange rates remaining as estimated;

• capital, decommissioning and reclamation estimates;

• the Company will not be required to further impair Tucano as the current open pit Mineral Reserves are depleted through mining;

• prices for energy inputs, labour, materials, supplies and services (including transportation);

• national and international transportation arrangements to deliver Tucano’s gold doré to international refineries continue to remain available, despite inherent risks due to COVID-19;

• international refineries that the Company uses continue to operate and refine the Company’s gold doré, and in a timely manner such that the Company is able to realize revenue from the sale of its refined metal in the timeframe anticipated, despite inherent risks due to COVID-19;

• all necessary permits, licenses and regulatory approvals for the Company’s operations are received in a timely manner, including the granting of permits for the GMC TSF in time to prevent interruption to operations;

• the Company’s ability to comply with environmental, health and safety laws;

• the Topia Phase III TSF will be available when the Phase II TSF is no longer available;

• Tucano will be able to continue to use cyanide in its operations;

• management’s estimates in connection with the assessment of provisions for loss and contingent liabilities relating to legal proceedings will not differ materially from the ultimate loss or damages incurred by the Company;

• the Company will be able to meet its production forecasts and generate the anticipated cash flow from operations for 2021 with the result that the Company will be able to meet its scheduled debt payments when due;

• management’s estimates regarding the carrying value of its mineral properties will not change in future financial periods, such that it would result in further write-downs and consequential impairment loss;

• the accuracy of the information included or implied in the various published technical reports; the geological, operational and price assumptions on which these technical reports are based; conditions in the financial markets;

• the ability to attract and retain skilled staff;

• the ability to procure equipment and operating supplies and that there are no unanticipated material variations in the cost of energy or supplies;

• the ability to secure contracts for the sale of the Company’s products (metals concentrates and gold doré);

• the execution and outcome of current or future exploration activities;

• the ability to obtain adequate financing for planned activities and to complete further exploration programs;

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Annual Information Form for the year ended December 31, 2020 8 

• the Company will not experience project delays and cost overruns, or unanticipated excessive operating cost and expenses;

• the Company’s ability to maintain adequate internal control over financial reporting, and disclosure controls and procedures;

• the ability of contractors to perform their contractual obligations; and

• operations not being disrupted by issues such as workforce shortages, mechanical failures, labour or social disturbances, illegal occupations or mining, seismic events, and adverse weather conditions.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to:

• open pit mining operations at Tucano have a limited established mine life and the Company may not be able to extend the mine life of Tucano open pit operations beyond 2023 as anticipated;

• the Company may experience an increase in COVID-19 infection amongst its employees and contractors even with the adoption of enhanced safety protocols and safeguards;

• the Company cannot provide assurance that there will not be interruptions to its operations in the future as a result of COVID-19 including: (i) the impact restrictions that governments may impose or the Company voluntarily imposes to address COVID-19, which if sustained or resulted in a significant curtailment could have a material adverse impact on the Company’s production, revenue and financial condition and may materially impact the Company’s ability to meet its production guidance included herein, and complete near-mine and regional exploration plans at Tucano; (ii) shortages of employees; (iii) unavailability of contractors and subcontractors; (iv) interruption of supplies and the provision of services from third parties upon which the Company relies; (v) restrictions that governments impose to address the COVID-19 outbreak; (vi) disruptions in transportation services that could impact the Company’s ability to deliver gold doré and metal concentrates to refineries; (vii) restrictions that the Company and its contractors and subcontractors impose to ensure the safety of employees and others; (viii) restrictions on operations imposed by governmental authorities; and (ix) delays in permitting;

• the Company’s ability to appropriately capitalize and finance its operations, including the risk that the Company is: (i) unable to renew or extend existing credit facilities that become due, which may increase the need to raise new external sources of capital; or (ii) unable to access sources of capital, which could adversely impact the Company’s liquidity and require the Company to curtail capital and exploration program, and other discretionary expenditures;

• planned exploration activities may not result in the conversion of existing Mineral Resources into Mineral Reserves or discovery of new Mineral Resources;

• the Company may be unable to meet its production forecasts or to generate the anticipated cash flow from operations, and as a result, the Company may be unable to meet its scheduled debt payments when due or to meet financial covenants to which the Company is subject;

• the inherent risk that estimates of Mineral Reserves and Mineral Resources may not be accurate and accordingly that mine production and recovery will not be as estimated or predicted;

• gold, silver and base metal prices may decline or may be less than forecasted or may experience unpredictable fluctuations;

• fluctuations in currency exchange rates (including the USD to BRL exchange rate) may increase costs of operations;

• even though a geotechnical consultant has given the approval to restart mining the UCS pit, there is no assurance that the Company will be able to continue mining through to the first quarter of 2022 as planned and be able to access the UCS Mineral Reserves, which may adversely impact the Company’s production plans, future revenue and financial condition;

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Annual Information Form for the year ended December 31, 2020 9 

• challenging operational viability of Mexican operations;

• operational and physical risks inherent in mining operations (including pit wall collapses, tailings storage facility failures, environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather) may result in unforeseen costs, shutdowns, delays in production and exposure to liability;

• there is no assurance that the Company will be able to identify or complete acquisition opportunities or, if completed, that such acquisitions will be accretive to the Company;

• management’s estimates regarding the carrying value of its mineral properties may be subject to change in future financial periods, which may result in further write-downs and consequential impairment loss;

• management’s estimates in connection with the assessment of provisions for loss and contingent liabilities relating to legal proceedings may differ materially from the ultimate loss or damages incurred by the Company;

• potential political and social risks involving Great Panther’s operations in a foreign jurisdiction;

• the potential for unexpected and excessive costs and expenses and the possibility of project delays;

• employee and contractor relations;

• relationships with, and claims by, local communities;

• the Company’s ability to obtain and maintain all necessary permits, licenses and regulatory approvals in a timely manner on favourable terms, including the granting of the permits for the expansion of the GMC TSF in time without condition, which if not granted or conditioned, could result in an interruption of operations and the ability to maintain those permits, licences and regulatory approvals and the conditions required thereunder;

• changes in laws, regulations and government practices in the jurisdictions in which the Company operates;

• legal restrictions related to mining;

• the inability to operate the Topia Phase II TSF as planned, or to commence stacking at Topia Phase III when Phase II TSF is no longer available ;

• diminishing quantities or grades of mineralization as properties are mined, operating or technical difficulties in mineral exploration and changes in project parameters as plans continue to be refined;

• acts of foreign governments;

• political risk;

• labour or social unrest;

• illegal mining, including the potential for safety and security risks related thereto;

• uncertainties related to title to the Company’s mineral properties and the surface rights thereon, including the Company’s ability to acquire, economically acquire, or maintain/renew the surface rights to certain of the Company’s exploration and development projects, as well as the surface rights associated with the Company’s operations and facilities;

• unanticipated operational difficulties due to adverse weather conditions, failure of plant or mine equipment and unanticipated events related to health, safety, and environmental matters;

• uncertainty of revenue, cash flow and profitability, the potential to achieve any particular level of recovery, the costs of such recovery, the rates of production and costs of production, where production decisions are not based on any feasibility studies of Mineral Reserves demonstrating economic and technical viability;

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Annual Information Form for the year ended December 31, 2020 10 

• cash flow may vary and the Company’s business may not generate sufficient cash flow from operations to enable it to satisfy its debt and other obligations;

• an unfavourable decision by the MEM with respect to the proposed modification to the Coricancha closure plan;

• fines, penalties, regulatory actions or charges against the Company’s Coricancha subsidiary arising from removal of the injunction;

• reclamation costs exceed the amounts estimated;

• failure of counterparties to perform their contractual obligations, including risk that Nyrstar is unable to fund its indemnity obligations under the Coricancha Agreements (as defined in Section 6.A.1 of this AIF), and the guarantors thereunder do not have the necessary financial resources to discharge their obligations under the guarantees;

• litigation risk, including the risk that the Company will not be successful in resolving its existing litigation or that it will become subject to further litigation in the future;

• certain of the Company’s directors and officers may continue to be involved in a wide range of business activities through their direct and indirect participation in corporations, partnerships or joint arrangements, some of which are in the same business as the Company and situations may arise in connection with potential acquisitions and investments where the other interests of these directors and officers may conflict with the interests of the Company;

• deterioration of general economic conditions, including increased volatility and global financial conditions; and

• the Company’s ability to operate as anticipated,

and other risks and uncertainties, including those described in respect of Great Panther in its 2020 MD&A, the Audited Financial Statements and material change reports filed with the Canadian Securities Administrators available at www.sedar.com and reports on Form 40-F and Form 6-K filed with the SEC and available at www.sec.gov.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information.

Readers are advised to carefully review and consider the risk factors identified in this AIF under the heading “Risk Factors” for a discussion of the factors that could cause the Company’s actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. It is recommended that prospective investors consult the more complete discussion of the Company’s business, financial condition and prospects that is included in Section 8 of this AIF.

The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this AIF. The Company will update forward-looking statements and information if and when, and to the extent, required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The forward-looking statements and information contained herein are expressly qualified by this cautionary statement.

1.E. SCIENTIFIC AND TECHNICAL INFORMATION

The scientific and technical information in this AIF relating to the Company’s mineral projects has been reviewed and approved by Neil Hepworth, M.Sc., C. Eng. MIMMM, Chief Operating Officer of Great Panther, Nicholas Winer, FAusIMM, Vice President, Exploration of Great Panther, Fernando Cornejo, M. Eng., P. Eng., Vice President, Operations (Brazil) of Great Panther and Robert Brown, P. Eng., Geological Consultant of Great Panther, each of whom is a non-independent Qualified Person within the meaning of NI 43-101 (the “Great Panther Qualified Persons”).

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Annual Information Form for the year ended December 31, 2020 11 

Scientific and technical disclosure in this AIF for our material properties is based on reports prepared in accordance with NI 43-101 (collectively, the “Technical Reports”). The Technical Reports have been filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov. The technical information in this AIF has been updated with more current information where applicable, such updated information having been prepared by or under the supervision of, or reviewed by, the Great Panther Qualified Persons. Scientific and technical information relating to current and planned exploration programs set out in this AIF are prepared and/or designed and carried out under the supervision of, or were reviewed by, Nicholas Winer in the case of Brazil and Robert Brown in the case of Mexico and Peru. The current Technical Reports for the Company’s properties are as follows:

• a report related to Tucano entitled “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil” dated February 2, 2021, with an effective date of September 30, 2020 prepared by Neil Hepworth, M.Sc., C. Eng. MIMMM, Nicholas Winer, FAusIMM, Fernando Cornejo, M. Eng., P. Eng., Carlos H. B. Pires, B.Sc. Hons., MAusIMM C.P., Master Geologist, Mina Tucano Ltda, and Reno Pressacco, M.Sc.(A) P.Geo and Tudorel Ciuculescu, B.Sc, M.Sc., P. Geo., of Roscoe Postle Associates Inc. (“Tucano Technical Report”);

• a report related to the GMC entitled “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato and San Ignacio Operations, Guanajuato State, Mexico” dated December 22, 2020, with an effective date of July 31, 2020 prepared by Robert F. Brown, P. Eng., and Mohammad Nourpour, P. Geo. (“GMC Technical Report”);

• a report related to Topia entitled “NI 43-101 Report on the Topia Mine Mineral Resource Estimates” dated February 28, 2019, with an effective date of July 31, 2018 prepared by Robert F. Brown, P. Eng., (“Topia Technical Report”); and

• a report related to Coricancha entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex” dated July 13, 2018, with an effective date of July 13, 2018 prepared by Daniel Saint Don, P.Eng. previously from Golder Associates Inc. (“Golder”), Jeffrey Woods, SME MMSA QP, previously from Golder and Ronald Turner, MAusIMM CP(Geo) from Golder (“Coricancha Technical Report”).

Each of Messrs. Hepworth, Winer, Cornejo, Pires, Ciuculescu, Pressacco, Brown, Nourpour, Saint Don, Woods, and Turner is or was in relation to the Technical Reports a Qualified Person within the meaning of NI 43-101. A “Qualified Person” means an engineer or geoscientist with a university degree, or equivalent accreditation, in an area of geoscience, or engineering, relating to mineral exploration or mining, with at least five years of experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these, that is relevant to his or her professional degree or area of practice, has experience relevant to the subject matter of the mineral project, and is a member in good standing of a professional association within the meaning of NI 43-101.

Mineral Resource estimates in this AIF related to Tucano were prepared by or under the supervision of Mr. Ciuculescu of Roscoe Postle Associates Inc., solely in respect of the Mineral Resource estimate for TAP AB open pit and underground resources and Messrs. Winer and Pires of Great Panther for all other Mineral Resource estimates for Tucano. Mineral Reserve estimates in this AIF related to Tucano were prepared by or under the supervision of or reviewed for inclusion in this AIF by Mr. Hepworth of Great Panther. Mineral Resource estimates in this AIF related to the GMC were prepared by or under the supervision of Messrs. Brown and Nourpour. Mineral Resource estimates in this AIF related to Topia were prepared by or under the supervision of Mr. Brown. Mineral Resource estimates in this AIF related to Coricancha were prepared by or under the supervision of Mr. Turner of Golder.

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Annual Information Form for the year ended December 31, 2020 12 

While not material properties of the Company, the Company also discloses certain scientific and technical information for El Horcón and Santa Rosa, which could in the future form part of the GMC’s operations. The information for these properties (as disclosed in Section 7 of the AIF) is contained in a report entitled “NI 43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine, and El Horcón and Santa Rosa Projects”, dated February 20, 2017, with an effective date of the information related to the El Horcón and Santa Rosa Projects of August 31, 2016 prepared by or under the supervision of Mr. Brown, a non-independent Qualified Person within the meaning of NI 43-101.

1.F. CANADIAN MINERAL PROPERTY STANDARDS AND RESERVE/ RESOURCE ESTIMATES

As a Canadian issuer, the Company is required to comply with reporting standards in Canada that require that it makes disclosure regarding its mineral properties, including any estimates of Mineral Reserves and Mineral Resources, in accordance with Canadian NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Unless otherwise indicated, all Mineral Resource and Mineral Reserve estimates referenced in this AIF have been prepared in accordance with NI 43-101 and are classified in accordance with the CIM Definition Standards.

Unless other noted, capitalized terms “Mineral Resources”, “Mineral Reserves”, “Measured Mineral Resources”, “Indicated Mineral Resources”, “Inferred Mineral Resources”, “Pre-feasibility Study”, “Feasibility Study” and “Preliminary Economic Assessment” have the meanings ascribed to those terms in NI 43-101 which adopt the CIM Definition Standards.

1.G. CAUTIONARY NOTES TO U.S. INVESTORS REGARDING RESOURCE AND RESERVE ESTIMATES

The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the United States Exchange Act of 1934 (the “U.S. Exchange Act”). These amendments became effective February 25, 2019 (the “SEC Modernization Rules”). The SEC Modernization Rules replaced the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7 (“Guide 7”), which has been rescinded. As a “foreign private issuer” that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system (the “MJDS”), the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101. If the Company ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the MJDS, then the Company will be subject to the SEC Modernization Rules, which differ from the requirements of NI 43-101.

The SEC Modernization Rules include the adoption of terms describing Mineral Reserves and Mineral Resources that are “substantially similar” to the corresponding terms under the CIM Definition Standards. As a result of the adoption of the SEC Modernization Rules, SEC now recognizes estimates of Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources. In addition, the SEC has amended its definitions of Proven Mineral Reserves and Probable Mineral Reserves to be “substantially similar” to the corresponding CIM Definition Standards.

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Annual Information Form for the year ended December 31, 2020 13 

United States investors are cautioned that while the terms used in the SEC Modernization Rules are “substantially similar” to CIM Definition Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards. Accordingly, there is no assurance any Mineral Reserves or Mineral Resources that the Company may report as Proven Mineral Reserves, Probable Mineral Reserves, Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

United States investors are also cautioned that while the SEC will now recognize Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources, investors should not assume that any part or all of the mineralization in these categories will ever be converted into a higher category of Mineral Resources or into Mineral Reserves. Mineralization described using these terms has a greater amount of uncertainty as to their existence and feasibility than mineralization that has been characterized as Reserves. Accordingly, investors are cautioned not to assume that any Measured Mineral Resources, Indicated Mineral Resources, or Inferred Mineral Resources reported by the Company are or will be economically or legally mineable.

United States investors are also cautioned not to assume that all or any part of the Inferred Mineral Resources exist. In accordance with Canadian securities laws, estimates of Inferred Mineral Resources cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101.

In addition, disclosure of “contained ounces” is permitted disclosure under Canadian securities laws; however, the SEC has historically only permitted issuers to report mineralization as in place tonnage and grade without reference to unit measures.

For the above reasons, information contained in this AIF containing descriptions of the Company’s mineral deposits may not be comparable to similar information made public by United States companies subject to the reporting and disclosure requirements under the United States federal securities laws and the rules and regulations thereunder.

1.H. GLOSSARY OF TERMS AND UNITS OF MEASURE

The following glossary, which is not exhaustive, should be used only as an adjunct to a thorough reading of the entire document of which it forms a part.

2020 MD&A	Management’s Discussion and Analysis of the Company for the year ended December 31, 2020
AAS	Atomic absorption spectroscopy
Acquisition	The acquisition of Tucano by Great Panther completed on March 5, 2019 by acquiring 100% of the issued and outstanding shares of Beadell pursuant to a scheme under the Australian Corporations Act 2001 all as more particularly described in Section 18 of this AIF
Adit	A horizontal or close-to-horizontal tunnel, man-made for mining purposes
Ag	Silver

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Annual Information Form for the year ended December 31, 2020 14 

Ag eq oz	Silver equivalent ounces, reflecting the equivalent values of silver and all other products produced by the Company, relative to the prevailing silver price
Andesite	A fine-grained brown, green or greyish intermediate volcanic rock
Au	Gold
Beadell	Beadell Resources Limited
Board	Board of Directors of Great Panther
Breccia	A course-grained rock, composed of angular, broken rock fragments held together by a mineral cement or a fine-grained matrix
BRL	Brazilian Real
Cfm	Cubic feet per minute
CIM	Canadian Institute of Mining, Metallurgy and Petroleum
CIM Definition Standards	Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM on May 10, 2014
COG	Cut-off grade
CONAGUA	Comisión Nacional del Agua, or National Water Commission, in Mexico responsible for managing and preserving national waters and their inherent good in order to achieve sustainable use
COVID-19	a strain of novel coronavirus reported to originate in late 2019 and any variant thereof
cm	Centimetre
Cu	Copper
cut and fill	A mining method which removes mineralized material in horizontal slices and the remaining void is filled with waste rock before proceeding to mine the next slice of mineralized material
EIA	Environmental Impact Assessment

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eq.	Equivalent values or quantities of products, expressed relative to the prevailing silver or gold and co-product prices
Epithermal	Hydrothermal deposits formed at low temperature and pressure
Felsic	An igneous rock having abundant light-coloured materials
g/t	Grams per metric tonne
G&A	General and administrative
Gpm	Gallons per minute
hectare, or ha	A metric unit of land measure equal to 10,000 square metres or 2.471 acres.
hydrothermal	Relating to hot fluids circulating in the earth’s crust
IFRS	International Financial Reporting Standards as issued by the International Accounting Standards Board and interpretations of the International Financial Reporting Interpretations Committee, collectively
JORC	Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia
km	Kilometre
LHD	Load-haul-dump loader
LOM	Life of Mine
masl	Metres above sea level
MEM	Ministerio de Energía y Minas de Perú
mineral claim	The portion of mining ground held under law by a claimant
mineralization	Implication that the rocks contain metallic minerals and that these could be related to ore
M&I	Measured and Indicated
mm	Millimetre
NI 43-101	National Instrument 43-101 Standards of Disclosure for Mineral Projects

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Annual Information Form for the year ended December 31, 2020 16 

NI 51-102	National Instrument 51-102 Continuous Disclosure Obligations
NSR	Net smelter return
Nyrstar	Nyrstar International B.V. and Nyrstar Netherlands (Holdings) B.V., together as sellers, of Coricancha
OEFA	Organismo de Evaluación y Fiscalización Ambiental, the Environmental Evaluation and Oversight Agency, in Peru
Ore	That part of a mineral deposit which could be economically and legally extracted
OSINERGMIN	Organismo Supervisor de la Inversión en Energía y Mineria, the Supervisory Organism of Investment in Energy and Mines, in Peru
Oz	Troy ounces
Pb	Lead
PROFEPA	Procuraduría Federal de Protección al Ambiente, or Federal Agency of Environmental Protection, creates and enforces the Federal environmental laws of Mexico, with the aim of sustainable development.  It has no relationship with the SEMARNAT, and maintains its own technical and operational autonomy.
Psi	Pounds per square inch
QA/QC	Quality Assurance/Quality Control
Quartz	A common rock forming mineral consisting of silicon and oxygen
Resuing	A method of stoping wherein mineralized material is extracted separately from the waste rock on one side of the vein.  This method is employed on narrow veins, and yields cleaner mineralized material than when waste and mineralized material are broken together
Rhyolite	A fine-grained volcanic (extrusive) rock of granitic composition
ROM	Run-of-mine
SEC	United States Securities and Exchange Commission
SEDAR	System for Electronic Document Analysis and Retrieval, a mandatory document filing and retrieval system for Canadian public companies
SEMARNAT	Secretaría de Medio Ambiente y Recursos Naturales, or Ministry of Environment and Natural Resources, the Mexican federal agency responsible for environmental protection, including permitting of surface work and some mining programs

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SGS	A geochemical laboratory part of the SGS Mineral Services Group
stockwork	A metalliferous deposit characterized by the impregnation of the mass of rock with many small veins or nests irregularly grouped
Stoping	The extraction of mineralized material or other minerals by creating underground openings through the application of drill and blast techniques
Tonne or t	A metric tonne, equal to 1,000 kilograms and approximately 2,205 lbs
Tpd	Metric tonnes per day
t/m³	Metric tonnes per cubic metre
TSF	Tailings storage facility
Vein	A zone or belt of mineralized rock lying within boundaries clearly distinguished from neighbouring rock.  A mineralized zone has, more or less, a regular development in length, width and depth to give it a tabular form and is commonly inclined at a considerable angle to the horizontal.  The term “lode” is commonly used synonymously for vein
Zn	Zinc

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2. CORPORATE STRUCTURE

2.A. NAME, ADDRESS AND INCORPORATION

Great Panther Mining Limited was originally incorporated under the Company Act (British Columbia) in 1965 under the name Lodestar Mines Ltd. The Company’s common shares were listed on the TSX Venture Exchange on June 18, 1980 and were upgraded to trading on the Toronto Stock Exchange (“TSX”) on November 14, 2006 under the symbol GPR. The Company’s common shares were listed on the NYSE American on February 8, 2011 under the trading symbol GPL, while the Company retained its listing on the TSX in Canada.

The Company was continued under the Business Corporation Act (Yukon) on March 22, 1996 and then further continued back to British Columbia under the Business Corporations Act (British Columbia) on July 9, 2004. The Company’s most recent name change from Great Panther Silver Limited to Great Panther Mining Limited occurred concurrently with closing of the acquisition of Tucano on March 4, 2019.

Great Panther’s principal and registered offices are located at 1330 – 200 Granville Street, Vancouver, British Columbia, V6C 1S4, Canada. The Company’s telephone number is 604-608-1766, and the Company’s website can be found at www.greatpanther.com.

2.B. INTERCORPORATE RELATIONSHIPS

The following companies are the significant subsidiaries of the Company as of March 4, 2021, each of which is 100% beneficially owned, directly or indirectly, by the Company and existing in the jurisdiction set forth in the table below.

Note: 

1. In some jurisdictions in which we operate, laws require that a company operating mineral properties must have more than one shareholder. For those jurisdictions, a nominal interest may be held by an individual or other affiliated entity and this may not be represented on the charts.

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Annual Information Form for the year ended December 31, 2020 19 

3. GENERAL DEVELOPMENT OF THE BUSINESS

3.A. GENERAL

Great Panther Mining Limited is an intermediate precious metals mining and exploration company listed on the TSX trading under the symbol GPR, and on the NYSE American trading under the symbol GPL.

The Company has three wholly-owned mining operations, including Tucano in Brazil and Topia and the GMC in Mexico. The GMC comprises Guanajuato, San Ignacio, and the Cata processing plant. The Company also owns several exploration properties, which are discussed below.

Tucano is an open pit gold mine approximately 200 km from Macapá, the state capital of Amapá in Brazil. It produces gold doré with ore processed through a primary crusher, SAG mill, ball mill and carbon-in-leach (“CIL”) infrastructure, capable of treating both oxide and sulphide ore. Tucano has initiated a regional exploration strategy to evaluate the underexplored greenstone belt in which the mine sits and there remains potential to increase Mineral Reserves in both quantity and quality with additional surface and underground exploration within the mining license.

Topia is located in the Sierra Madre Mountains in the state of Durango in northwestern Mexico and produces metallic concentrates containing silver, gold, lead and zinc at its own processing facility.

The GMC produces silver and gold concentrate and is located in central Mexico, approximately 380 km northwest of Mexico City, and approximately 30 km from the Guanajuato International Airport.

Topia and the GMC are underground mines and the production process consists of conventional mining incorporating cut and fill, and resue methods. Extracted mineralized material is trucked to on-site conventional processing plants, which consist of zinc and lead-silver flotation circuits at Topia, and a pyrite-silver-gold flotation circuit at the GMC.

Great Panther also owns Coricancha, a gold-silver-copper-lead-zinc underground mine, located in the Peruvian province of Huarochirí, approximately 90 km east of Lima. Coricancha has been on care and maintenance since August 2013 and the Company is evaluating the conditions under which a restart of production can be implemented.

The Company’s exploration properties include multiple near mine infill and step out targets around the existing mining corridor at Tucano, the GMC and Topia and regional targets across the approximately 2,000 square km land package in which Tucano is located.

Additional exploration properties include: El Horcón, Santa Rosa and Plomo in Mexico; and Argosy in Canada, all of which are wholly owned. El Horcón is located 100 km by road northwest of Guanajuato city, Santa Rosa is located approximately 15 km northeast of Guanajuato city, and the Plomo property is located in the state of Sonora, Mexico. The Argosy property is in the Red Lake Mining District in northwestern Ontario, Canada.

3.B. KEY DEVELOPMENTS

3.B.1 Three Year History

The following table reflects the key developments of the Company for the years ended December 31, 2020, 2019 and 2018, respectively.

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Year	Key Developments
2020	•	COVID-19 significantly impacted the world for much of the year and took a terrible toll on human life and well-being. This included the areas where Great Panther operates, and the effects were felt by local communities and members of the Company’s workforce and their families. For more information, see Sections 4.J.2 and 8 of this AIF.
	•	Despite the disruptions caused by COVID-19, Great Panther achieved its consolidated guidance range of 146,000 – 158,000 Au Eq oz producing 150,051 Au Eq oz, inclusive of 133,031 Au oz and 1,118,098 Ag oz, a 2% increase over 2019. Tucano led the way producing 125,417 Au oz.
	•	Great Panther entered into a $11.25 million gold doré prepayment agreement on January 6, 2020 with Samsung C&T U.K. Ltd., a wholly owned subsidiary of Samsung C&T Corporation, which completed on February 4, 2020. For further information, see Section 4.B of this AIF.
	•	Following the slope displacement of the UCS pit in October 2019 (described below), initial remedial unloading work at UCS was started in the first quarter of 2020 to remove free diggable material at the top of the slope. Continued remedial unloading work involving drilling and blasting commenced in the third quarter following protocols from independent consulting firm Knight Piésold & Co. (“Knight Piésold”), which was subject to favourable results from geotechnical data gathering, including information from five geotechnical core holes drilled commencing in April 2020. Mining at UCS commenced at full capacity in late October 2020 and remains a primary focus of mining through 2021. For a discussion of the status of mining of the UCS, the remediation work that has been completed and the risks associated with the UCS, see Sections 5.A.8.6 and Section 9 under the heading “Mining and Mineral Exploration Have Substantial Operational Risks” of this AIF.
	•	Great Panther announced in February 2020 plans for a $6.6 million (55,000 m) 2020 drill program for Tucano for completion in 2020 and comprising both near-mine and regional targets.
	•	Great Panther completed in March 2020 its inaugural Mineral Resource and Mineral Reserve estimate for Tucano, which used a more rigorous approach resulting in the reduction of Mineral Resources (excluding Mineral Reserves) by approximately 500,000 Au oz and Mineral Reserves by approximately 489,000 Au ounces. The estimate reflected operating experience since the Company’s acquisition of Tucano in March 2019 and a better understanding of the mine’s geology. For more information, see the Company’s press release dated March 9, 2020.
	•	In connection with the announcement of the updated Tucano Mineral Resource and Mineral Reserve estimate, the Company announced a further refinement of the near mine program and other opportunities to increase the mine life including possible further evaluation and the enhancement of an existing prefeasibility study supporting the development of an underground mining operation below the Urucum North pit. A decision on further exploration or an updated technical study on the underground will follow the results of the current Phase 1 targeted drill program expected to be complete by end July 2021.
	•	Great Panther ceased depositing tailings on the Topia Phase II TSF in March 2020 following a recommendation from the Company’s independent tailings management and geotechnical consultants. During the suspension of non-essential activities due to COVID-19, Great Panther continued monitoring the conditions on Phase II and installed additional geotechnical instrumentation. In addition, tests were carried out to determine the state of the tailings in Phase I. Extensive work has been carried out to identify and reduce the flow of water into the base of the TSF. Monitoring indicated that it was safe to return to stacking in Phase II, which is expected to provide sufficient capacity until the end of 2022. Deposition at Phase II was restarted on the basis of continued positive results of monitoring and an interim stacking plan for Phase II received from a third-party consultant with strict control on sequence and compaction level. The Company has also received the required permit for Phase III, which will be available for use after constructing retaining walls and erosion controls around the base of the facility.

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Annual Information Form for the year ended December 31, 2020 21 

	•	Great Panther also completed in March 2020 new Mineral Resource estimates for the GMC.
	•	Great Panther completed in May 2020 a bought deal financing for aggregate gross proceeds totalling $16.1 million, pursuant to which the Company issued 40,250,000 common shares at a price of $0.40 per share.
	•	Great Panther announced new management and Board changes in April 2020, which included a new Chief Executive Officer Rob Henderson and three new directors including David Garofalo as Chair and Messrs. Alan Hair and Joseph Gallucci to the Board.
	•	The Company’s Mexican mines were transitioned to care and maintenance for just over two months in April and May 2020 as a result of the Mexican Federal Government ordered suspension of mining and processing that allowed for the implementation of protocols to reduce the spread of COVID-19.
	•	Great Panther reached an agreement with Nyrstar on June 27, 2020 to amend certain agreements in respect of the Company’s remediation obligations in connection with Great Panther’s 2017 acquisition of the Coricancha mine from Nyrstar. For more information, see Section 6A.1 of this AIF.
	•	Great Panther published in September its inaugural Sustainability Report for the year ended December 31, 2019 highlighting the progress, initiatives and commitments in the areas of health, safety, environmental, social and governance management.
	•	Great Panther voluntarily suspended operations at Topia in mid-November 2020 for a five-week period as a result of COVID-19.
	•	Great Panther completed in November an update to the GMC Mineral Resource estimate increasing Measured and Indicated Resources by 17% and more than doubling Inferred Mineral Resources.
	•	Great Panther completed in December 2020 an update to the Tucano Mineral Resource and Mineral Reserve estimate extending the LOM for an additional year. The consolidated Proven and Probable Mineral Reserves at Tucano are approximately 629,000 ounces of gold as of September 30, 2020, as detailed below in Section 5.A.7 of this AIF under the heading “Tucano – Mineral Reserves – Mineral Reserve Estimate as of September 30, 2020”.
2019	•	Overall metal production for 2019 was 147,000 Au eq oz, representing an increase of 182% over the prior year. The increase was due primarily to the acquisition of Tucano.
	•	The Company reported in January 2019 an update to the Mineral Resource at Topia, which increased the Measured and Indicated Mineral Resources by 28% compared to the previous estimate reported in 2014.
	•	On January 25, 2019, the Company provided an update to the Mineral Resource at the GMC, which reported an increase in Measured and Indicated Mineral Resources of 91%. During 2018, exploration at San Ignacio consisted of both surface and underground drilling totalling 7,085 m.

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Annual Information Form for the year ended December 31, 2020 22 

	•	The Company completed the acquisition of Tucano on March 5, 2019. For further information, see Section 18 of this AIF and Form 51-102F4 filed on SEDAR by the Company on May 17, 2019.
	•	All holders of Beadell’s senior secured convertible debentures maturing on June 30, 2023, (the “Convertible Debentures”) accepted on April 3, 2019, the Company’s repurchase offer made under the terms of the indenture governing the Convertible Debentures upon a change of control. The repurchase was completed for an aggregate price of $10.5 million, plus accrued interest.
	•	The Company announced the appointment on May 7, 2019, of Mr. Kevin Ross to its Board.
	•	On July 9, 2019, the Company entered into the ATM Agreement described below in Section 18 of this AIF.
	•	The Company closed a bought deal financing on August 8, 2019, for aggregate gross proceeds of $17,250,000, pursuant to which the Company issued 23,000,000 common shares of the Company at the price of $0.75 per share.
	•	The west wall of the UCS pit at Tucano underwent slope displacement on October 6, 2019, which required the pit to be closed to mining and significant effort and resources be made toward a remediation plan with the assistance of the independent consulting firm Knight Piésold. For a discussion of the status of mining of the UCS, the remediation work completed, and the risks associated with the UCS, see Sections 5.A.8.6 and Section 9 under the heading “Mining and Mineral Exploration Have Substantial Operational Risks” of this AIF.
	•	The Company announced on October 30, 2019 the departure of Mr. James Bannantine, President & CEO of the Company, and the assumption of Board Chair Jeffrey Mason of the additional role of Interim President & CEO until a permanent successor was in place in April 2020.
	•	The Company announced on October 31, 2019 the appointment of Neil Hepworth, Chartered Engineer, UK, as COO.
	•	The Company’s wholly owned subsidiary, MMR, entered into a $10 million concentrate prepayment agreement on December 31, 2019, with the IXM Group, a physical metals trader headquartered in Geneva, Switzerland, which agreement was concluded in December 2020.
	•	Based upon recommendations from an independent consulting firm, three additional instrumentation stations in the footprint of the Topia TSF were put in place in 2019 for the purposes of continuous monitoring.
2018	•	Overall metal production for 2018 was 4,170,966 Ag eq oz, representing an increase of 5% over the prior year. The increase in production was primarily due to the current year revision in the Ag eq oz conversion ratios due to higher gold to silver price ratio, and higher silver and lead recoveries at Topia. These factors were partly offset by lower silver and gold grades at both the GMC and Topia, and lower gold recovery at Topia.
	•	The Company reported the results of a PEA for Coricancha on May 31, 2018 and filed the Coricancha Technical Report on SEDAR on July 13, 2018. Following this, the Company initiated a 6,000 tonne trial stope and bulk sample program. For more information, see Section 6.A.10 of this AIF.

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Annual Information Form for the year ended December 31, 2020 23 

• On September 23, 2018, the Company announced that it entered into a Scheme Implementation Deed with Beadell, to acquire all of the issued ordinary shares of Beadell by means of a scheme under the Australian Corporations Act 2001. For further information, see Section 18 of this AIF. 

• Late in the third quarter of 2018, in order to lower costs and mitigate the impact of lower metals prices, the Company undertook a restructuring at the GMC to reduce mining from Guanajuato and to increase output from San Ignacio. In addition, the Company undertook other cost reduction measures and started to see the impact of these measures in the fourth quarter of 2018. Further restructuring measures were taken at the start of 2019, which included an optimization strategy under which the entire production for the GMC was sourced from the lower cost San Ignacio operation for the first half of 2019, enabling a focused exploration program for Guanajuato aimed at growing higher margin resources.

3.B.2 Developments Subsequent to the Year Ended December 31, 2020

The Company announced on January 29, 2021, an update to its exploration strategy and programs targeting result-driven exploration programs leading to resource replacement and near-mine growth, and longer-term organic growth through regional exploration. The programs for 2021 include: a 90,000 m drilling program across all of its operating mines and certain of its exploration projects with a planned expenditure of $13.4 million, the majority of which ($8.4 million) is focused on Tucano and includes a combination of open pit resource replacement and expansion drilling, Urucum underground drilling and regional and near target evaluation totalling 60,000 m. For more information, see the Company’s press release on January 29, 2021.

The Company has undertaken the reclamation of certain legacy tailings facilities at Coricancha under a remediation plan approved by the MEM, the relevant regulatory body. In addition, as part of the purchase of Coricancha, the Company has an agreement with Nyrstar for the reimbursement of the cost of these reclamation activities. The Company is seeking approval of a modification to a remediation plan from the MEM in accordance with the recommendations of an independent consultant to preserve the stability of nearby areas. The Company has changed the scheduling of the reclamation work, pending a decision from the MEM regarding the proposal to modify the approved remediation plan. To protect itself from any pending or future fines, penalties, regulatory action or charges from government authorities and to request that the MEM issue a decision on the proposed modification of the remediation plan for legacy tailings, the Company initiated a Constitutional Case and successfully obtained an injunction to prevent fines and penalties until MEM issues its decision.

Subsequent to the year ended December 31, 2020, the Company was notified of a second instance decision in the Constitutional Case, which unfavourably dismisses the Company’s constitutional challenge, but requests that the MEM issue a technical report evaluating the remediation plan within two months of the second instance decision. The Company expects that the related injunction will be cancelled in the near future. While the Company has appealed the Constitutional Case proceeding, it will not be possible to appeal the cancellation of the injunction. The cancellation of the injunction will expose the Company to potential fines, penalties, regulatory action or charges from government authorities. Separately, the Company plans to develop alternatives to propose to MEM to allow for the full reclamation while preserving the stability of the surrounding areas.

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Annual Information Form for the year ended December 31, 2020 24 

For a discussion for a discussion of the risks associated with this matter and Coricancha more generally, see Section 8 of this AIF under the headings “Risk Factors - Risks Associated with the Coricancha Acquisition” and “Risk Factors - Political Risks and Government Regulations”.

3.C. SIGNIFICANT ACQUISITIONS

The Company did not complete a significant acquisition in the year ended December 31, 2020, for which disclosure is required under Part 8 of NI 51-102. Information concerning the Company’s acquisition of Tucano that occurred on March 4, 2019 is described in more detail under Section 18 under the heading entitled “Material Contracts”.

4. DESCRIPTION OF THE BUSINESS

4.A. PRINCIPAL MARKETS

Great Panther produces gold doré at Tucano in Brazil. The gold doré is refined and sold directly to refiners or metal traders. The Company also continued to produce metallic concentrates containing silver, gold, lead and zinc at its Mexican operations. These concentrates are then sold to metal traders or directly to smelters and refiners that extract the metals from the concentrates (See Section 4.B of this AIF under the heading “Product Marketing, Sales and Distribution”). In 2020, gold accounted for 89% of the Company’s revenues, and silver accounted for 9%. The remaining 2% of the Company’s revenues are from the production of lead and zinc at Topia.

Gold and silver are precious metals traded as commodities primarily on the London Bullion Market Association (the “LBMA”) and Comex in New York (the “CME”). The LBMA is an international trade association, representing the London market for gold and silver bullion, which has a global client base. This includes the majority of the gold-holding central banks, private sector investors, mining companies, producers, refiners and fabricators. The on-going work of the LBMA covers a number of areas, among them refining standards, trading documentation and the development of good trading practices. The maintenance of the “Good Delivery List”, including the accreditation of new refiners and the regular retesting of listed refiners, is the most important core activity of the LBMA.

The LBMA gold price auction takes place twice daily by ICE Benchmark Administration at 10:30 and 15:00 London time with the price set in US dollars per ounce. The price is displayed on the LBMA’S website with a 30-minute delay. The LBMA silver price auction is operated by CME and administered by Thomson Reuters. The price is set daily in US dollars per ounce at 12:00 noon London time and is displayed on the LBMA’s website with a 15-minute delay. Reference prices for both gold and silver are also available in British Pounds and in Euros.

The gold and silver business is cyclical as smelting and refining charges rise and fall depending upon the demand for, and supply of, gold bullion and silver-gold concentrates in the market. In addition, the market prices of gold and silver have historically fluctuated widely, and are affected by numerous global factors beyond the control of the Company and the mining industry in general. A decline in such market prices may have an adverse effect on revenues from the sale of gold and silver.

Gold demand comprises four primary categories: jewelry, investment, central banks and other financial institutions, and technology. Jewelry has always been a dominant source of demand for gold and accounts for approximately half of world gold demand. Investment in gold by institutional and private investors accounts for around one third of global demand and is made up of direct ownership of bars and coins, or indirect ownership via Exchange-Traded Funds and similar products. Gold is also one of the few assets that is universally permitted by the investment guidelines of the world’s central banks due, in part, to the gold market being deep and liquid. Around 8% of the world demand for gold is for technical applications.

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The electronics industry accounts for the majority of this, where gold’s conductivity and resistance to corrosion make it the material of choice for manufacturers of high-specification components. In addition, the metal’s excellent biocompatibility means that it continues to be used in dentistry. Beyond electronics and dentistry, gold is used across a variety of high-technology industries, in complex and difficult environments, including the space industry and in fuel cells. Gold’s catalytic properties are also beginning to create demand both within the automotive sector, as the metal has now been proven to be a commercially viable alternative to other materials in catalytic converters, and within the chemical industry.

In 2020, total physical silver demand accounted for 991.8 million ounces per the Silver Institute, World Silver Survey 2020, and comprised the following end markets categories: industrial use (52%), coins and bars (19%), and silver jewelry (20%) and silverware (6%). Approximately 58% of the industrial use is for electrical and electronic components and 19% is accounted for by use in the manufacturing of photovoltaics (solar cells). Silver has many key, and in some cases unique, properties such as durability, malleability, ductility, reflectivity, electrical conductivity, and antibacterial properties, which makes it valuable in numerous industrial applications. The applications include circuit boards, electrical wiring, superconductors, brazing and soldering, mirror and window coatings, electroplating, chemical catalysts, pharmaceuticals, filtration systems, solar panels, batteries, televisions, household appliances and automobiles. The unique properties of silver also make it difficult to substitute the element in its industrial applications.

4.B. PRODUCT MARKETING, SALES AND DISTRIBUTION

4.B.1 Overview

The principal customers for the Company’s gold and metallic concentrates are international traders, smelters and refineries in Europe, Mexico, and Asia. For the year ended December 31, 2020, eight customers accounted for all of the Company’s revenues. Tucano produces gold doré and accounted for $223.7 million of revenue in 2020. Topia produces a lead concentrate and a zinc concentrate, and the GMC produces a silver-gold concentrate. Topia and GMC generated revenues of $15.9 million and $21.2 million in 2020, net of smelting and refining charges.

There is a global market for refined gold and metallic concentrates and the Company continues to identify and evaluate new buyers for its refined gold and metallic concentrates through an active marketing process. Great Panther’s head office in Vancouver provides sales and marketing services to its mining operations in respect of the sale of refined gold and metallic concentrates produced by its operations. The Company’s gold is typically sold once it has been refined to LBMA Good Delivery form.

For the Company’s sale of refined gold, the delivery of gold doré is made via land and air to one of two refineries, and is then refined to LBMA Good Delivery form. Typically, the refinery then allocates the refined gold to the Company’s end customer. The price for the refined gold is based on the prevailing market price of gold at the time of trading, and no adjustments to revenue are made subsequent to the initial recognition.

For the Company’s sale of metallic concentrates, the smelters and international traders pay the Company for an agreed upon percentage of the contained gold and other metals contained in the Company’s concentrates, net of refining, smelting, and other applicable charges. Revenues reported by the Company are net of these charges. The pricing for the contained metals in the concentrate is typically the average of all the daily quoted market prices within a specific month or other agreed period of time.

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Annual Information Form for the year ended December 31, 2020 26 

The delivery of metal concentrates is typically made by truck to customers’ warehouses. As concentrates can vary in terms of grade and quality from shipment to shipment, the sales are subject to a final settlement process to adjust for any variances. After the physical transfer of the metal concentrate, the Company has the right to request advance payments based on the provisional value of shipments calculated at spot prices for the contained metals. Such advances are typically 90% to 95% of the provisional value and are typically payable within 15 days from the date of the provisional invoice, depending on the specific contract. A final payment or adjustment is made on the date of final settlement, once all information regarding concentrate content is known, typically within five business days after the final weights, assays and prices are known and invoiced.

For the metallic concentrates, the sales and marketing generally involves an annual competitive tendering process and marketing and relationship development throughout the year. The tendering process culminates in the Company’s Mexican subsidiary entering into contracts with metal traders or smelting and refining companies for generally a one-year term. The tendering process enables the Company to review and renegotiate the terms of its contracts annually to ensure that it receives the most competitive pricing and terms possible. In 2019, the Company entered into a two-year agreement with an international trader for 100% of concentrate production from the GMC.

4.B.2 Gold Doré Prepayment Agreement

On February 4, 2020, the Company completed a $11.25 million gold doré prepayment agreement (the “Advance”) with Samsung C&T U.K. Ltd. (“Samsung”), a wholly owned subsidiary of Samsung C&T Corporation, headquartered in Seoul, South Korea and a part of the Samsung Group, in consideration of delivery and sale of approximately 3,000 ounces of gold contained in doré per month over a two-year period commencing January 2020 from Tucano. Gold deliveries are sold at a 0.65% discount to the benchmark price of gold at the time of delivery. The Advance is required to be repaid in equal instalments of $0.8 million per month commencing December 2020 until January 2022 such that all amounts outstanding to Samsung will be repaid in full. The Advance bears interest at an annual rate of 3-month USD LIBOR plus 5% and is secured by a pledge of all equity interests in Great Panther’s Brazilian subsidiary that owns Tucano. Great Panther has a full option for early re-payment of the Advance, subject to a 3% penalty applied to the outstanding balance. The agreement also provides Samsung a right of offer for concentrates produced from Coricancha in certain circumstances.

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Annual Information Form for the year ended December 31, 2020 27 

Revenue Figures

	Year ended December 31, 2020				Year ended December 31, 2019
(in thousands)	Tucano	GMC	Topia	Total	Tucano	GMC	Topia	Total
Gold revenue	$223,272	$11,889	$1,137	$236,298	$153,504	$15,554	$1,354	$170,412
Silver revenue	487	10,816	12,036	23,339	93	9,162	14,089	23,345
Lead revenue	-	-	2,146	2,146	-	-	3,581	3,581
Zinc revenue	-	-	3,088	3,088	-	-	4,938	4,938
Ore processing revenue	-	-	34	34	-	-	102	102
Smelting and refining charges	(69)	(1,486)	(2,545)	(4,100)	(200)	(1,173)	(2,351)	(3,724)
Total revenue	$223,690	$21,219	$15,896	$260,805	$153,397	$23,543	$21,713	$198,653

4.C. SEASONALITY

The Company’s Tucano operation is subject to seasonal fluctuations as a result of weather conditions. Specifically, Tucano’s production is typically stronger in the second half of a calendar year (normally August until January) as the dry season enables higher rates of mining productivity and the mine plan is characterized by lower strip ratios and access to higher grades in the open pits. Accordingly, Tucano typically has more favourable operating results in the second half of the year. The climate in Mexico allows exploration, mining and milling operations to be carried out year-round. Therefore, revenue and cost of sales generally do not exhibit variations due to seasonality. The exceptions are periods of excessive drought, which may limit or defer processing of mineralized material and/or concentrate. The dry season in Mexico generally extends from October through April. The Company has not experienced a suspension of mining and processing activities due to drought in any of the last three fiscal years.

The climate in Peru at the location of Coricancha, which is currently on care and maintenance, also allows mining activities to be carried out year-round. There is a rainy season from January to March that has in the past caused flooding and disruptions to operations in the area where Coricancha is located.

4.D. SPECIALIZED SKILL AND KNOWLEDGE

The Company’s business requires specialized skills and knowledge in the areas of geology, mining, metallurgy, social and environmental studies, permitting, claim management and finance. The Company has a number of employees with extensive experience in mining, engineering, finance, geology, exploration and development, including but not limited to, Robert Henderson, President & Chief Executive Officer and non-independent director; Jim Zadra, Chief Financial Officer; Neil Hepworth, Chief Operating Officer; Fernando Cornejo, Vice President of Operations, Brazil; Brian Peer, Vice President, Operations Mexico & Peru; and Nicholas Winer, Vice President, Exploration.

4.E. COMPETITIVE CONDITIONS

The Company’s business is to mine and process mineralized material and sell gold doré and precious and base metals concentrates. Prices for its products are determined by world markets over which it has no influence or control. The Company also competes with other mining companies, some of which have greater financial resources and technical facilities, for the acquisition of mineral interests, as well as for the recruitment and retention of qualified employees.

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Annual Information Form for the year ended December 31, 2020 28 

4.F. DOING BUSINESS IN BRAZIL, MEXICO AND PERU

4.F.1 Mining in Brazil

Brazil is a jurisdiction with a long history of mining. In Brazil, the National Mining Agency (“ANM”) is the federal agency entitled to regulate mining activities in Brazil. ANM was created in 2017, through Law No. 13.575/2017, replacing the National Department of Mines (“DNPM”), and regulates the conduct of exploration, development and mining operations.

Mining operations in Brazil are regulated primarily by Decree No. 227 of February 28, 1967, the Brazilian Mining Code enacted by Decree No. 62,934 of July 2, 1968, and certain rulings, such as the Consolidation of DNPM Regulations issued by DNPM Ruling No. 155 on May 17, 2016, and more recently federal laws No. 13.540/2017 and No. 13.575/2017 and, more recently, Decree No. 9,406 of June 12, 2018, which updated DNPM Ruling 155/2016 and established the new regulation of the Brazilian Mining Code.

The ANM requires certain fee payments for exploration licences (known as the Annual Fee per Hectare), certain royalty payments to the federal government for the mining concessions (known as Financial Compensation for the Exploitation of Mineral Resources - “CFEM”) and for royalty payments to be made to the landowner if the surface rights are not held by the holder of the mineral rights. Mining activities are subject to a statutory royalty, CFEM, on the revenue arising from the sale of mineral product. Federal Law No. 13,540/2017 increased the CFEM rate for gold from 1.0% to 1.5% on the gross revenue.

In Brazil, failure to demonstrate the existence of technical and economically viable mineral deposits covered by an exploration licence within the validity of such licence may lead to the licence being required to be returned to the federal government. The federal government may then grant the exploration licence to other parties that may conduct other mineral prospecting activities at said area. Nonetheless, mining activities are also subject to state and municipal laws, particularly on taxes and environment.

Exploration activities are authorised by Exploration Licences granted by the ANM. In general, such licences are valid for a three-year period. Licences are usually renewable upon request for an additional three years, at ANM’s discretion. Exploitation activities are authorised by Mining Concessions, granted by the Ministry of Mines and Energy. Mining Concessions have no expiration date, being valid until the depletion of the mineral deposit.

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The Brazilian state and federal governments from time to time implements changes to tax laws and regulations. Any such changes, as well as changes in the interpretation of such laws and regulations, may result in increases to the Company’s overall tax burden, which would negatively affect its profitability. The Brazilian federal government has frequently implemented multiple changes to tax regimes. Potential changes include (among others) modifications to prevailing tax rates and the enactment of taxes, which may be temporary, the proceeds of which are earmarked for designated governmental purposes. Some of these changes may result in increased the Company’s tax burden, which could materially adversely affect profitability and increase the prices of products and services, restrict its ability to do business in existing and target markets and cause its financial results to suffer. Moreover, some tax laws may be subject to controversial interpretation by tax authorities, including, but not limited to, the regulation applicable to corporate restructurings.

For a discussion of risks associated with the regulatory framework that Company is subject to, see Section 8 of this AIF under the heading “Risk Factors – Political and Government Risk”.

4.F.2 Mining in Mexico

The mining industry in Mexico is controlled by the Secretaría de Economía – Dirección General de Minas which is located in, and administered from, Mexico City. Mining concessions in Mexico may only be obtained by Mexican nationals or Mexican companies incorporated under Mexican laws. The construction of processing plants requires further governmental approval.

In Mexico, surface land rights are distinct from the mining concessions.

The holder of a mining concession is granted the exclusive right to explore and develop a designated area. Mining concessions are granted for 50 years from the date of their registration with the Public Registry of Mining to the concession holder as a matter of law, if all regulations have been complied with. During the final five years of this period, the concession holder may apply for one additional 50-year period, which is automatically granted provided all other concession terms have been complied with. Mining rights in Mexico can be transferred by their private holders with no restrictions or requirements other than to register the transaction with the Public Registry of Mining.

In accordance with the Federal Duties Law, the holder of a mining concession is obligated to pay biannual duties in January and July of each year based upon the number of hectares covered by the concession area.

Concessionaires must perform work each year that must begin within 90 days of the concession being granted. Concessionaires must file proof of the work performed each May. Non-compliance with these requirements is cause for cancellation only after the Secretariat of Economy of Mexico communicates in writing to the concessionaire of any such default, granting the concessionaire a specified time frame in which to remedy the default.

If a concession holder does not carry out exploration and exploitation activities for two continuous years within the first 11 years of its concession title, it will be required to pay an additional charge equal to 50% of the two-year concession duty. The concession duty increases to 100% for continued inactivity after the 12^th year. Payment of the additional concession duty is due 30 days after the end of the two-year period.

In Mexico, there are no limitations on the total amount of mining concessions or on the amount of land that may be held by an individual or a company. Excessive accumulation of concessions is regulated indirectly through the duties levied on the property and the production and exploration requirements as outlined above.

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Mexican mining law requires the payment of a discovery premium related to National Mineral Reserves, Concessions in Marine Zones, and Allotments to the Council of Mineral Resources.

Environmental protection regulations in Mexico require permits for mine operations and exploration, for operating a processing plant, for the discharge and/or deposition, and for changes to grandfathered projects. There are four government departments that deal with and regulate such affairs.

Mining companies are subject to a special mining duty of 7.5% on profits derived from the sale of minerals, and an extraordinary mining duty of 0.5% on the gross value of sales of gold, silver and platinum.

On January 13, 2021, a bill proposing to replace the ordinary mining duty (surface fee up-to MXN$165 per hectare of the concession) with a royalty payment of 5% or 8% of the gross sales of minerals (8% in the case of gold, silver and copper). This would be in addition to the special mining duty and extraordinary mining duty currently applicable. If this legislation is approved in its current form, additional costs may be imposed on our Mexican operations, the impacts of which could be significant. Also, as part of the 2021 tax reform, the right to credit the ordinary mining duty payments against the special mining duty payments was eliminated for 2022 onward, and reduced to 50% for 2021. This is expected to result in an increase in the tax burden for Mexican operations since 73% of the special mining duty collected from all mining companies was paid through such credit mechanism.

In late 2020, the President of Mexico introduced a Federal Bill that if implemented, would repeal various articles of the Federal Labour Law, Social Security Law, Law of the National Workers’ Housing Fund Institute, Federal Fiscal Code, Income Tax Law and the Value Added Tax Law. The intent of the Bill is to significantly limit the ability of operating companies to subcontract and outsource labour to contractors and to employ related service providers, likewise to limit the ability of operating companies to subcontract labour to insource companies. If this legislation is approved, fees payable to the Social Security based on the risk for activities will be increased since all employees and workers will be hired by the same company (operating company), profit sharing costs that did not apply to the operative companies due to either insource or outsourcing operations will apply, payroll taxes and benefits costs may be imposed on our Mexican operations, the impacts of which could be significant.

For a further discussion of risks associated with the regulatory framework that Company is subject to, see Section 8 of this AIF under the heading “Risk Factors – Political and Government Risk”.

4.F.3 Mining in Peru

In Peru, the General Mining Law allows mining companies to obtain clear and secure title to mining concessions. Surface land rights are distinct from mining concessions. The government retains ownership of all subsurface land and Mineral Resources, but the titleholder of the concessions retains ownership of extracted Mineral Resources. Peruvian law requires that all operators of mines in Peru have an agreement with the owners of the land surface above the mining rights or to establish an easement upon such surface for mining purposes. Mining concessions allow for both exploration and for exploitation.

Mining rights in Peru can be transferred by their private holders with no restrictions or requirements other than to register the transaction with the Public Mining Register. The sale of mineral products is also unrestricted, so there is no obligation to satisfy the internal market before exporting products.

Peru enacted environmental laws whereby the MEM and the Environmental Ministry have issued regulations mandating environmental standards for the mining industry. Under these standards, new mining development and production requires mining companies to file and obtain approval for an Environmental Impact Assessment, which incorporates technical, environmental and social matters, before being authorized to commence operations.

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OEFA is the government agency that monitors environmental compliance. OEFA has the authority to carry out audits and levy fines on companies if they fail to comply with prescribed environmental standards and permits. OSINERGMIN is the government agency in charge of supervising the compliance of safety and technical regulations. In a similar way to OEFA, the OSINERGMIN may impose fines and sanctions in case such regulations are not complied with.

In addition, there is regulation for obtaining permits for the use and acquisition of explosives for civilian use, through SUCAMEC, the National Superintendency of Control of Security Services, Weapons, Ammunition, and Explosives for Civilian Use authority, a specialized technical institution attached to the Ministry of the Interior.

The following permits are generally needed for a project: Certificate for the Inexistence of Archaeological Remains Environmental Impact Assessment; Mine Closure Plan; Establishment of a Financial Guarantee for Closure; Beneficiation Concession; Mining Transportation Concession; Permanent Power Concession; Water Usage and Discharge Permits; Easements and Rights-of-way; District and Provincial Municipality Licenses and Construction and Operation Permits within its jurisdiction.

Companies incorporated in Peru are subject to income tax on their worldwide taxable income, while foreign companies that are located in Peru and non-resident entities are taxed on income from Peruvian sources only. The corporate income tax is 29.5%, in addition 8% of profit sharing to employees. In general terms, mining companies in Peru are subject to the general corporate income tax regime. If the taxpayer has elected to sign a Stability Agreement, an additional 2% premium is applied on the regular corporate income tax rate. The Company has not signed a Stability Agreement. Also, 50% of income tax paid by a mine to the Central Government is remitted as “Canon” by the Central Government back to the regional and local authorities of the area where the mine is located.

In Peru, a dividend tax rate of 5% is imposed on distributions of profits to non-residents and domiciled individuals by resident companies and by branches, permanent establishments, and agencies of foreign companies.

Peru has a royalty referred to as the Modified Mining Royalty (“Peruvian Royalty”) that applies to operating income at marginal rates ranging from 1% to 12%, and is payable quarterly. Operating income is defined as revenues from the sale of Mineral Resources, less cost of goods sold, less operating expenses, based on Peruvian statutory reporting regulations, with minor adjustments for interest and exploration expenditures.

Under the Peruvian Royalty regime, an “operating income” to “mining operating revenue” measure (operating profit margin) is calculated each quarter and the royalty rate increases with the increase in operating margin. Although the Peruvian Royalty is based on operating income, a company must pay at least 1% of sales, regardless of its profitability.

In addition, a Special Mining Tax (“SMT”) is a tax imposed in parallel with the Peruvian Royalty. The SMT is applied on operating mining income based on a progressive scale, with marginal rates ranging from 2% to 8.4%. The SMT is also payable on a quarterly basis.

For a discussion of risks associated with the regulatory framework that Company is subject to, see Section 8 of this AIF under the heading “Risk Factors – Political and Government Risk”.

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Annual Information Form for the year ended December 31, 2020 32 

4.G. ENVIRONMENTAL PROTECTION

The Company has taken a proactive approach to managing environmental risk. In Mexico, it is participating in a voluntary environmental audit of its GMC and Topia operations. The outcomes of these audits are multi-year environmental programs, working in cooperation with PROFEPA to ensure compliance with regulations governing the protection of the environment in Mexico.

In Brazil, all licences required by various government agencies covering the operation of Tucano and its mill, and processing plant have been obtained or applications for renewals have been filed and expected in the ordinary course. The complete environmental studies, permitting, and social or community impact was carried out by third-party consultant in 2011 for the Operating Licence issued by the State Secretariat of Environment in Amapá, SEMA to operate a SAG7 mill/CIL processing plant. The Company will be required to obtain further approvals with respect to construction of certain of its additional TSFs. For a discussion of these additional TSFs, see Section 5.A.12 of the AIF under the heading “Mining Properties – Tucano - Infrastructure, Permitting and Compliance Activities”.

Groundwater and surface water monitoring is performed through field checking of daily monitoring activities and collection of samples for chemical analysis at Tucano’s facilities. There are also monthly, quarterly, and half-yearly sample collections as required by environmental agencies, which are required to be sent to a certified external laboratory.

In Peru, the Company is required to remediate certain legacy tailings facilities at Coricancha under a remediation plan approved by the MEM, the relevant regulatory body. In addition, as part of the purchase of Coricancha, the Company has an agreement with Nyrstar for the reimbursement of the cost of reclamation or remediation activities associated with the legacy tailings facilities up to a maximum of $20 million. The Company is seeking approval of a modification to a remediation plan from the MEM to remediate the tailings in situ in accordance with the recommendations of an independent consultant to preserve the stability of nearby areas. The Company has stopped reclamation activity, pending a decision from the MEM regarding the proposal to modify the approved remediation plan. To protect itself from any pending or future fines, penalties, regulatory action or charges from government authorities and to request that the MEM issue a decision on the proposed modification of the remediation plan for legacy tailings, the Company initiated a Constitutional Case and successfully obtained an injunction to prevent fines and penalties until MEM issues its decision. The Company was recently notified of a second instance decision in the Constitutional Case, which unfavourably dismisses the Company’s constitutional challenge, but requests that the MEM issue a technical report evaluating the remediation plan within two months of the second instance decision. The Company expects that the related injunction will be cancelled in the near future. While the Company has appealed the Constitutional Case proceeding, it will not be possible to appeal the cancellation of the injunction. The cancellation of the injunction will expose the Company to potential fines, penalties, regulatory action or charges from government authorities. Separately, the Company plans to develop alternatives to propose to the MEM to allow for the full reclamation while preserving the stability of the surrounding areas. For more information on the impact of the Constitutional decision, see Section 3.B.2 of this AIF.

In addition to the Coricancha legacy tailings, material removal from old waste dumps is required by OSINERGMIN. In 2020, the waste that showed favourable economics was processed in the Coricancha process plant. Approximately 150,000 tons of waste remains to be moved to a purpose-built waste dump at Huamuyo Alto.

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Annual Information Form for the year ended December 31, 2020 33 

As at December 31, 2020, the Company has a provision of $68.3 million on its Statement of Financial Position for the estimated present cost of reclamation and remediation expenditures associated with the future closure of its mineral properties, and plant and equipment, at the GMC, Topia, Tucano and Coricancha. The estimated expenditures are to commence near the end of each mine’s useful life except as may be required by applicable law. For a discussion of risks associated with the estimate of reclamation liabilities, see Section 8 of the AIF under the heading “Risk Factors - Substantial Decommissioning and Reclamation Cost”.

For additional discussion of environmental considerations, please refer to sections entitled “Infrastructure, Permitting and Compliance” in Sections 5 and 6 of this AIF.

4.H. EMPLOYEES

The following table sets out the Company’s employees at December 31, 2020, 2019 and 2018, by legal entity.

Company	2020	2019	2018
Great Panther Mining Limited	23	21	19
Metálicos de Durango SA de CV1,2	153	152	189
Minera de Villa Seca SA de CV1,2	124	118	139
Great Panther Coricancha SA	46	105	84
GP Finance International Sàrl	0	1	1
Mina Tucano Ltda	441	424
TOTAL	787	821	432

Note:

1. In 2005, the Company incorporated Metálicos de Durango SA de CV., and Minera de Villa Seca SA de CV., which are responsible for the day-to-day affairs and operations of Topia and the GMC, respectively, through service agreements with MMR.

2. For more information about potential labour reform that may adversely impact our Mexican operations, see Section 4.F.2 of this AIF.

4.I. COMMUNITY ENGAGEMENT AND SUSTAINABLE DEVELOPMENT

4.I.1 Overview

Great Panther is committed to responsible mining and believes that sharing the value created by the Company’s activities contributes to its host communities’ social and economic development.

The Company’s sustainable development approach is planned to ensure that programs are designed as catalysts for mutual and lasting socio-economic benefits. These initiatives are based on active collaboration with host communities and aim to contribute to healthy and sustainable societies. Great Panther believes that two-way engagement builds trust and fosters genuine partnerships with local stakeholders. Consequently, it relies on respectful, open, and frequent communication with the members of its neighbouring communities.

Stakeholder engagement and social investment programs implemented by the Company in Brazil, Mexico, and Peru also include partnerships with local governments and civil society organizations and are focused on three main areas: socio-economic development, public health and safety, and natural and cultural heritage. As described in its Social Investment Policy, the Company prioritizes social investment initiatives that contribute to improving the quality of life of the communities surrounding its operations and that continue to make positive impacts beyond its participation.

Great Panther’s community relations teams implement comprehensive stakeholder engagement initiatives with the local communities to create and maintain mutually beneficial relationships by understanding the positive influence that mines and projects can have on regional development.

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Specifically, at Tucano, as part of its operating licence requirements, the Company annually contributes capital to the Social and Environmental Compensation Funds of the local municipalities of Pedra Branca and Serra do Navio in the state of Amapá. An elected council with representatives of the communities, City Hall, City Council and the Company reviews and analyzes the community development to be executed under this agreement in their respective municipalities.

4.I.2 Sustainability Reporting

In 2020, Great Panther published its inaugural Sustainability Report, which was prepared following the Global Reporting Initiative (“GRI”) Standards and the GRI Mining & Metals Sector Disclosures. The Sustainability Report outlines the Company’s sustainability approach across various topics deemed material by its stakeholder groups and summarizes the 2019 sustainability performance. The Sustainability Report also underscores Great Panther’s ongoing commitment to transparency with all stakeholders and is available for viewing on the Company’s website (www.greatpanther.com). The Sustainability Report does not form part of this AIF.

4.J. HEALTH AND SAFETY

4.J.1 Overview

Health and Safety is an issue that affects workers around the globe. Health and Safety risks are inherent to all mining operations, and the mining industry has developed best practices at international and national levels. Great Panther believes that all injuries and occupational diseases can be prevented and recognizes that everyone is entitled to work in a safe and healthy workplace. Potential safety hazards at mines include working near heavy equipment and working near rock faces either on surface or underground. Health and Safety also include the prevention of occupational diseases or injury resulting from exposure to harmful elements such as noise and dust. With the commitment to ensuring that employees and contractors can perform their work safely, the Company’s vision is that every person goes home safely every day.

4.J.1.a Safety Management and Training

All sites are responsible for producing a Safety Management Plan. This plan establishes clear accountability for safety and health performance, details the controls and practices for minimizing hazards, and ensures effective safety systems audits. There is also a requirement for regular reviews and updates of these plans, informed by employee feedback.

The Company invests significantly in onsite training at its mines to comply with national safety regulations and in response to employee consultations, which helps to identify specific issues that require further attention. Training focuses on creating an overarching ‘safety culture,’ including through the Abordagems system (safety approach) in Brazil, and the SafeStart program in Mexico, which targets personnel’s values, attitudes and behaviour, and involves their family members.

In alignment with a Health and Safety Declaration developed for each of the mine sites, the Company monitors types and rates of injury to understand if its efforts effectively increase safety in the workforce.

These indicators are:

• Incident rate – number of accidents/person-hours worked x 200,000 worked hours

• Severity rate – number of lost days/person-hours worked x 200,000 worked hours

• Occupational illness – number of people that were officially recognized by local health authorities with an occupational illness

• Fatalities

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4.J.1.b Monitoring and Addressing Safety Risks

A good safety culture includes a process of constant improvement by which risks are continuously identified and responsibly managed. Complying with, and going beyond, safety regulations is essential for the Company’s business. Great Panther’s mine sites work closely with Ministries of Labour in all countries where it operates and carries out audits to identify risks and prevent accidents. The Company also conducts detailed risk analyses to identify the risks and hazards associated with all routine and specialized tasks. During this process, probability and severity of an injury are evaluated. This process results in a recommendation of the type of equipment for female and male workers that must be used and other measures to mitigate risks. Risk analyses are updated every one to two years or whenever a new task or change in the environment warrants it.

The Company also engages third parties to carry out specific work environment studies (noise, dust, vibration, temperature and lighting). The outcomes of these studies determine whether or not the current exposure is within the permissible limit of the norm.

The Company has introduced safety programs to promote and foster safety awareness and recognize safety champions within its operations, including a Safety Olympics program in Brazil. On February 22, 2018, Great Panther regretfully announced the passing away of Mr. Kenneth W. Major, who had served as Director of the Company since March 2011, including distinguished service as Chair of the then Safety, Health and Environment Committee, in addition to service on other committees of the Board. In Mr. Major’s honour, the Company has established the Kenneth W. Major Award for Safety Excellence to annually recognize Great Panther employees and contractors who exemplify Mr. Major’s value of safety in the workplace. Since its introduction, the Kenneth W. Major Award for Safety Excellence has been awarded to 19 individuals.

4.J.1.c Emergency Preparedness

Great Panther has a corporate crisis plan and emergency response plans for different situations or contingencies at each operation that are reviewed and updated throughout the year. The emergency response plans focus on protecting its people, the environment and the Company’s assets. During the year, Great Panther mine sites conduct emergency preparedness activities to test and refine procedures for a variety of incidents, from landslides to chemical spills. These activities include evacuation drills, emergency simulations, first aid and search and rescue training by the Company’s emergency brigades.

4.J.1.d Fatal Accident

Despite our constant focus and numerous initiatives around worker safety, Great Panther experienced a fatal accident at the GMC during the second quarter of 2020 as a result of a vehicle accident during care and maintenance activities. Great Panther personnel immediately followed mine rescue protocols, and authorities arrived at the mine to review the site of the accident. A full internal investigation was completed. The Company considers the health and safety of its workers and others in the communities in which it operates to be a top priority and provides safety training as discussed above and continuously updates safety procedures and practices.

4.J.2 COVID-19

Great Panther has been closely monitoring the effects of the spread of COVID-19 with a focus on the jurisdictions in which the Company operates and its head office location in Canada. The rapid worldwide spread of COVID-19 has resulted in governments implementing restrictive measures to curb the spread of the virus. During this period of uncertainty, Great Panther’s priority is to safeguard the health and safety of personnel and host communities, support and enforce government actions to slow the spread of COVID-19 and to assess and mitigate the risks to our business continuity. As of the date of this AIF, mining and processing operations at Tucano, the GMC and Topia are operating without any significant impacts related to COVID-19.

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Annual Information Form for the year ended December 31, 2020 36 

In response to the increased rate of spread of COVID-19 infection, including the high incidence of infection in areas where the Company operates, the Company has developed and implemented COVID-19 prevention, monitoring and response plans following the guidelines of the World Health Organization and the governments and regulatory agencies of each country in which it operates to ensure a safe work environment at its offices and sites. There is no assurance the Company’s plans and protocols will be effective in stopping the spread of the COVID-19 virus and the Company may experience an increase in COVID-19 infection amongst its employees and contractors even with adoption of enhanced safety protocols and safeguards.

On April 2, 2020, the Company commenced an orderly suspension of mining and processing activities at the GMC and Topia in compliance with the directive of the Mexican Federal Government announced on March 31, 2020, to mitigate the spread of COVID-19. The first directive required suspension of activities until April 30, 2020, and was subsequently extended to May 30, 2020. On June 3, 2020, the Company restarted mining operations in Mexico following a government order adding mining to the list of essential services. The restart followed a phased approach to accommodate new protocols in response to COVID-19. Some administrative and technical staff continue to work from home.

On November 16, 2020, the Company temporarily suspended operations in Topia due to the detection of COVID-19 among the workforce. On December 17, 2020, the Company restarted Topia operations.

The Company has prepared contingency plans if there is a full or partial shutdown at any of its operations and is prepared to act quickly to implement them. If authorities seek to restrict mining activities to mitigate the spread of COVID-19 or if the Company faces workforce shortages as a result of the spread, the Company will endeavour to do so in a manner to satisfy authorities and address workforce availability without executing a complete shutdown. The Company cannot provide assurance there will not be interruptions to its operations in the future.

At Tucano, these measures may involve the curtailment of only mining operations with the mill continuing to process stockpiled ore at reduced rates and assessing options for phased operating reductions should they be necessary.

As a result of the high incidence of case numbers in Brazil, Tucano had to make operational adjustments in 2020 to minimize the impact on production resulting from its reduced work force. There is no assurance that such operational adjustments will be successful in the future or that Tucano will not experience interruptions to its operations in the future as a result of COVID-19.

The Company has experienced workforce shortages, including a reduction in the availability of supervisory staff at its operations as a result of COVID-19, particularly in its Mexican operations. The Company has also experienced delays in the permitting process associated with its operations and exploration and development work programs.

For more information about COVID-19 and the effects on the Company’s business, see Section 8 of this AIF under the heading “Risk Factors – COVID-19 and Other Pandemics”.

5. MINING PROPERTIES

Great Panther has three wholly-owned mining operations including the Tucano gold mine acquired in 2019, which produces gold doré and is located in Amapá State in northern Brazil, the Topia mine in the State of Durango, Mexico, which produces concentrates containing silver, gold, lead and zinc, and the GMC in the State of Guanajuato, Mexico. The GMC comprises the Guanajuato Mine, the San Ignacio Mine, and the Cata processing plant, which produces silver and gold concentrates.

5.A. TUCANO

The scientific and technical information on Tucano in this Section 5.A of the AIF is based on the Tucano Technical Report described in Section 1.E. of the AIF. The conclusions, projections and estimates as well as certain other information included in this Section of the AIF are presented in summary form and subject to the qualifications, assumptions and exclusions set out in the Tucano Technical Report. Readers are recommended to read the Tucano Technical Report in its entirety to fully understand the project. The Tucano Technical Report in available on SEDAR (sedar.com) or on EDGAR (sec.gov).

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Annual Information Form for the year ended December 31, 2020 37 

5.A.1 Overview

Great Panther owns a 100% interest in Tucano through its wholly-owned subsidiary, Mina Tucano Ltda. Tucano consists of open pits which deliver ore to a 3.6 million tonnes per annum processing plant located at Tucano and has exploration licenses and mining concessions spread across approximately 2,000 square km. In 2020, Tucano produced 125,417 gold ounces.

5.A.2 Project Description, Location and Access

5.A.2.a Property Description

The property comprises 39 mineral rights, concessions and leases, totaling 197,283 ha. Great Panther, through its wholly-owned Brazilian subsidiaries, has 100% ownership of all tenements except for one tenement that is not part of the key tenement package, of which it holds a 49% interest. References to the “property” in this Section 5.A are to Tucano.

Exploitation activities are authorised by Mining Concessions, granted by the Ministry of Mines and Energy. Mining Concessions have no expiration date, being valid until the depletion of mineral deposit. The Tucano Mining Concession (851.676/1992) and Exploitation Application (850.865/1987) are centered within an approximately 140,000 ha block of key, contiguous exploration tenements held by Great Panther. This ground area spans a strike length of approximately 90 km of Paleoproterozoic greenstone terrain and is owned 100% by Great Panther.

Tucano also has a Mining Lease (858.079/2014) with Zamin Amapá Mineração S.A. for the exploration of gold within Zamin mineral rights. These mineral rights are held by Zamin for iron ore and border, to the south, the Tucano Mining Licence. In 2017, Zamin entered into receivership and Tucano is awaiting clarification of its rights.

The balance of Tucano mineral rights are Exploration Licences granted by the ANM that authorize exploration activities and have varying degrees of exploration work associated with them. In general, such licences are valid for a three-year period. Licences are usually renewable upon request for an additional three years, at ANM’s discretion, and if justified by a partial exploration report. At the end of the second phase of exploration, a final exploration report must be submitted.

5.A.2.b Surface Rights

The surface rights for the Mining Concession and four other mineral rights concessions in the mining area have also been secured by agreement. These surface rights agreements are sufficient to cover the existing mining operations at Tucano.

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5.A.2.c Location and Access

Tucano is located in Amapá State, Brazil, at latitude 0.85°N and longitude 52.90°W. The mine is approximately 200 km from Macapá, the state capital, and is accessible by the Brazilian federal highway BR-210 or by chartered aircraft. The access comprises:

• Sealed road for approximately 100 km, from the city of Macapá to Porto Grande.

• Unsealed road from Porto Grande to Pedra Branca do Amapari, approximately 75 km.

• Unsealed road from Pedra Branca do Amapari to the site, approximately 17 km.

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5.A.2.d Royalties

Tucano is subject to both federal and state royalties and other royalty agreements in relation to mineral product sales. In summary these are:

• the Compensation for Exploitation of Mineral Resources (“CFEM”);

• the Control, Monitoring, and Supervision of Research Activities, Mining, Exploration and Exploitation of Mineral Resources Fee (“TFRM”);

• the Social and Community Development Funds; and

• a Commodities Royalty.

The CFEM is a federal royalty and is calculated over the amount of gross revenue obtained in the sale of mineral products. In respect to gold sales, Great Panther is liable to pay a royalty of 1.5% on gross revenue from production at Tucano.

The TFRM is a royalty levied by Amapá State. The TFRM is currently calculated based on the grams of gold produced multiplied by the state index rate of Brazilian real BRL 3.2437 which is then multiplied by a factor of 0.25. In prior years, the factor has ranged from 0.4 in 2017 to 0.1 in 2018 and 2019, respectively.

The Social and Community Development funds have resulted from various agreements with Amapá State and the municipalities of Pedra Branca do Amapari and Serra do Navio which are located near Tucano. Under the terms of the agreements, Great Panther will pay a maximum 1% royalty of the gross proceeds from gold sales from Tucano to support the socio-economic and community development of the municipalities of Pedra Branca do Amapari and Serra do Navio.

The Commodities Royalty is payable to the previous holders of 13 tenements acquired by Great Panther. These are tenements currently not being mined by Great Panther. The Commodities Royalty is levied at 0.75% of commodity sales revenue arising from those 13 tenements less transport and insurance expenses, and royalties payable. Mr. Winer, Vice President Exploration of Great Panther is a former partner of Mineracao Vale dos Reis and accordingly, if a Commodities Royalty becomes payable, Mr. Winer would be a recipient.

5.A.3 History

Anglo American Plc discovered a mineralized shear zone in 1994, undertook extensive exploration between 1995 and 2002, and through AngloGold, completed a feasibility study of the oxide Mineral Resources in October 2002.

In May 2003, Tucano was acquired by EBX Gold Ltd. (“EBX”). EBX carried out a feasibility study for the oxide mineral resources and a pre-feasibility study for mining the sulphide mineralization.

In January 2004, Tucano was acquired by Wheaton River Minerals Ltd. (which later merged with Goldcorp Inc. (“Goldcorp”) in 2005). Mine construction began in July 2004, with the first gold poured in late 2005. Goldcorp sold Tucano to Peak Gold Limited (“Peak Gold”) in April 2007. Peak Gold later merged with Metallica Resources Inc. and New Gold Inc. in June 2008.

The operation did not reach the predicted gold production due to issues related to the clayey nature of the saprolite mineralization. In response, metallurgical test work was conducted during 2007 to investigate the potential improvements of installing a wash-plant to remove fines and clays to improve heap percolation. Given that the results from the test work were inconclusive, and considering the relative amount of oxide resource available, the plans for an integrated wash-plant and oxide and sulphide milling circuit were put aside in favour of a milling and CIL circuit to treat predominantly sulphide, and remnant oxide material.

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Until the closure of Tucano in 2009, mining operations extracted 8.8 Mt of ore from four areas, TAP AB (pits 1, 2, and 3), TAP C, TAP D, and Urucum. Total gold production from the heap leach operations was approximately 316,000 ounces of gold.

In 2010, Beadell, through Mina Tucano (then known as Beadell Brazil Ltda), a wholly-owned subsidiary, acquired Tucano and commenced construction of a CIL plant to augment the existing process infrastructure. Mining and stockpiling of ore commenced in 2011 and the CIL plant was commissioned in November 2012. Beadell upgraded the plant from 2018 to 2019 including a ball mill, pre-leach thickener, leach tank and oxygen plant.

Great Panther acquired Tucano in March 2019 and holds a 100% interest.

5.A.4 Geological Setting, Mineralization and Deposit Types

The South American Precambrian Shield comprises approximately 50% of the bedrock in Brazil and consists of major Proterozoic deformation zones surrounding cratonic nuclei of Archean age. The three principal cratons are the Guyana Craton in the north, the Amazon (or Guapore) craton immediately south of the Amazon River, and the São Francisco Craton situated between the Amazon Craton and the coast. The cratons are mostly a granite gneiss complex including some highly metamorphosed supracrustal belts, of which greenstone belts represent a small portion. Remoteness and lack of outcrops due to deep weathering prevent detailed stratigraphic and structural mapping across most of the greenstone belts. However, stratigraphic and structural elements typical for greenstone belts worldwide are well recognized in most South American examples.

The mineralization at Tucano occurs in a series of deposits over a 7 km strike length associated with a north-south trending shear zone occurring coincident with a north-south line of topographic ridges. From south to north, these deposits have been named TAP A, B, C, and Urucum. TAP D is a separate structure in the west. Higher grades are associated with the more intensely hydrothermally altered rocks.

Deep weathering is present in most of the deposits with high grade mineralization extending to the surface where it is covered by a layer of colluvium several metres thick. Gold mineralization can be found in the fresh rock at depth, in the saprolite zone created by in-situ weathering of the underlying rocks, and in colluvial deposits that overlie the saprolite mineralization as a blanket, spreading out over the hill slopes.

Sulphide zones follow shear plane foliation, often crosscutting the Banded Iron Formation (“BIF”) and other host meta-sediments and as bedding parallel lenses dipping either east or west along the limbs of the folded BIF units associated with calc-silicate units and hosted by metamorphic schists or sandwiched between and cut by feldspar quartz porphyritic dykes and sills. Outside the shears and faulted zones, host rocks are poor in sulphide and gold. The accumulation of auriferous massive and/or disseminated sulphides in zones of fractures and folds, and forming plunging mineralized shoots, often crossing lithological contacts, suggests an epigenetic event.

The gold mineralization at the Urucum and TAP AB deposits is observed to be related to elevated abundances of pyrrhotite that occurs in both stratiform and cross-cutting relationships with the host rocks. The primary host rock has been a BIF, with other host rocks containing lesser quantities of gold.

Digital interpretations of the distribution of the gold mineralization for the Urucum and TAP AB deposits were prepared using Seequent Limited’s Leapfrog software package by consultants specialized in wireframe modelling. The mineralization wireframes were created using a nominal cut-off grade of 0.3 g/t Au for oxide material and 0.4 g/t Au for fresh material, across a minimum width of 3 m to align with the cut-off grade and minimum width criteria that are currently being employed by the mine staff for establishing the ore/waste dig packets at the Urucum and TAP AB deposits.

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Gold zones occur as a series of semi-continuous vertical to moderately dipping ore horizons that individually have continuity over tens to hundreds of metres and collectively can exceed a thousand metres. There are repeated zones of such mineralization along a 7 km strike length.

5.A.5 Exploration

Great Panther recognizes the importance of the large, regional exploration tenement portfolio that it now controls. The portfolio covers a trend of approximately 90 km by 20 km covering an underexplored Proterozoic aged greenstone belt. The multiple gold deposits along the 7 km long Tucano sequence, demonstrate the gold potential within the Vila Nova Belt. Typically, Proterozoic or Archean greenstone belts with a significant proven deposit have a higher likelihood of additional deposits or mines. Most belts host a number of gold deposits, often of different size and styles of mineralization. When compared to other similar belts in the Guianas and West Africa, it is evident that the Vila Nova belt lacks the same level of exploration activity. While there is not always a direct correlation, between exploration and discovery, recent exploration activities carried out by Great Panther over the last 12 months, lead Great Panther to believe that the belt requires quality, focused exploration.

Regional programs announced in February 2020 included a re-evaluation of the historical data. The main product developed was an interpretation of the structural framework within the greenstone belt and definition of four deformation events and their relative timing. The combination of this interpretation with structural knowledge both in the mine and surrounding areas led to the identification of the key deformation events most likely associated with gold mineralization. These key structural events were mapped using the aerogeophysical data to define zones that potentially had higher probability to focus hydrothermal fluids. Combining this with interpreted lithology types allowed definition of corridors and targets with higher prospectivity, which are the base for the development of a focused exploration strategy and work program. This new strategy has identified four key pillars to exploration success on the Tucano tenement portfolio.

1. Tenement compliance; the administrative, legal and technical programs required to maintain in good standing the tenement portfolio;

2. Identification of corridors or targets within the belt that have elevated exploration potential;

3. Fast-track advanced exploration targets that are known or are developed out of the above; and

4. Develop quality geologic models to guide the near mine exploration, particularly mine extension and underground resource definition.

In 2020, exploration was focused on resource drilling with four diamond drills (“DD”) and a reverse circulation (“RC”) drill. In the first half of 2020, drilling was on the TAP AB deposits and in the second half of 2020 focus moved to Urucum North and Urucum East. In regional exploration two Final Exploration Reports fell due and work programs were focused on these two exploration licenses, Mutum and Saraminda. In both cases, programs of auger drilling have identified geochemically anomalous gold zones within the weathered zone. These have been followed up by RAB drilling and in December, two lines with five shallow diamond holes were drilled to evaluate the geology and mineralization potential at Mutum.

The 2021 exploration budget has been increased to $8.4 million with the objective of defining new targets through regional soil sampling, fast tracking prioritized targets within a 20 km radius of the mine, replacing mined resources, and confirmation and extension drilling of the higher-grade underground resource. In 2021, over 500 km of regional multi-element soil geochemistry will be carried out over the highly prospective exploration corridors defined in the third quarter of 2020. In parallel, an evaluation program to prioritize targets in the regional exploration area, that could provide ore to the Tucano plant, will be conducted with a view to fast-tracking one or two key targets. Near-mine resource drilling will initially focus on TAP C, between TAP AB and Urucum, as part of a 24,000 m near-mine resource definition program. At Urucum diamond drilling will be conducted on shallower (200-400 m deep) zones of higher-grade ore beneath Urucum pits, where 8,000 m is planned for 2021.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 42 

5.A.6 Drilling

Auger, RAB, RC and DD methods have been employed at Tucano. Auger and RAB drilling are considered exploratory drilling methods used to evaluate early-stage exploration targets. The methods provide geochemical samples in the top 5 m to 30 m of the highly weathered lateritic profile to guide drill target definition. RC and DD drilling are deeper drilling methods and the preferred methods for obtaining gold grade information from known or high potential mineralization zones.

Drilling in 2020 initially focused on the TAP AB deposit with highlights presented in the Company’s June 23, 2020 press release. During the second half of 2020, resource drilling was focused on the testing potential mineralization within the shallow, down plunge extension of mineralization to the north of the Urucum North pit with two diamond drills and an additional two drills on infill resource drilling, and along strike evaluation, of the Urucum East mineralized zone. The drilling intersected various mineralization intervals confirming and extending the Urucum East deposit but failed to detect a sub-parallel ore zone to the west. Positive drill results were received from Urucum North and these are to be modelled to determine if further drilling is warranted and to evaluate the potential impact on the current resource, pit shell. In total, 32,471m of drilling was carried out in 2020. All drilling results up to September 30, 2020 were included in the Mineral Resource and Mineral Reserve estimate for 2020 and included in the Tucano Technical Report.

5.A.7 Sampling Analysis and Data Verification

Great Panther abides by industry standards for the collection, analysis and quality assurance of the sampling processes, analysis procedures, and storage and use of the data. These are discussed in greater detail in the Tucano Technical Report. The company protocols ensure due care in the collection, logging, documentation and handling of samples whether from drilling or reconnaissance programs. (i.e., streams, soils, rock, auger and channel samples).

Sample preparation is carried out on site at Tucano where it has two, geographically separate, preparation facilities, one for mine grade control and the second exclusively for exploration samples, including those to be used in the long-term resource modelling. Sample preparation quality is monitored through the insertion of blank samples into the pulverization process while the laboratories are additionally monitored with the insertion of Reference Samples, duplicate field samples and duplicate lab preparation samples. Quality control samples represent approximately 10% of all samples analysed.

All mineralized samples that may be included in the Mineral Resource estimates and all multi-element geochemistry analyses are carried out by Certified laboratories in Belo Horizonte, Brazil either SGS or ALS.

Great Panther uses the Acquire database management system to maintain and manage all mineral resource and exploration data. Prior to data being accepted for upload into Acquire it passes through validation procedures. In the case of geochemistry data, all quality control samples must be within pre-defined industry standard quality assurance limits prior to being uploaded into the database. In the case of failures, samples are re-analysed, firstly using pulps retained by the laboratory or if required, duplicate samples generated during the preparation process and routinely stored on site.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 43 

5.A.8 Mineral Resources

The Mineral Resources for Tucano include contributions from four deposits as well as material contained within various stockpiles present throughout the property. The Mineral Resources from these four deposits are composed of mineralized material that is envisioned to be extracted by both open pit and underground mining methods. Gold mineralization is contained within oxidized lithologies as well as their fresh, un-weathered equivalents.

Updated grade-block models were prepared for the open pit component of the Urucum deposit, as well as the open pit and the underground component of the TAP AB deposit using drill hole, sample information, and topography that was current as of September 30, 2019. The underground component of the Mineral Resource estimate for the Urucum North deposit was prepared from a grade-block model that used the drill hole and sample information that was current as of November 2, 2015. Drilling completed since the 2015 was reviewed and in the qualified person’s opinion does not materially impact the Mineral Resource estimate.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 44 

MINERAL RESOURCE ESTIMATE AS OF SEPTEMBER 30, 2020

Category	Tonnage (000)	Grade (g/t Au)	Contained Metal (000 oz Au)
Measured
Open Pit	2,309	1.46	108
Underground	-	-	-
Surface Stockpile	2,491	0.53	42
Total Measured	4,800	0.97	150
Indicated
Open Pit	8,793	1.60	453
Underground	2,649	4.11	350
Surface Stockpile	-	-	-
Total Indicated	11,442	2.18	803
Measured & Indicated
Open Pit	11,102	1.57	561
Underground	2,649	4.11	350
Surface Stockpile	2,491	0.53	42
Total Measured & Indicated	16,242	1.83	953
Inferred
Open Pit	647	2.48	52
Underground	5,350	2.80	483
Surface Stockpile	-	0	-
Total Inferred	5,997	2.77	534

Notes:

1. Mineral Resources were classified using CIM Definition Standards.

2. Mineral Resources are inclusive of Mineral Reserves.

3. The effective date of the Mineral Resource estimate is September 30, 2020.

4. Mineral Resources are estimated at various cut-off grades depending on mining method and mineralization style.

5. For open pit development at Urucum, Urucum East and TAP AB, Mineral Resource estimates use a long-term gold price of US$1,750/oz and a US$/Brazilian real exchange rate of 1:4.5 with cutoff grades of 0.3 g/t Au for oxide and 0.4 g/t Au for fresh rock.

6. Underground Mineral Resource estimates for TAP AB use a long-term gold price of US$1,750/oz and a US$/Brazilian real exchange rate of 1:4.5, with cutoff grade of 1.3g/t Au for fresh rock.

7. Since September 30, 2019, no additional drilling data is available for the Urucum underground and Duckhead so Mineral Resource estimates for 2020 remain unchanged from 2019. Estimates use a long-term gold price of US$1,500/oz and a US$/Brazilian real exchange rate of 1:3.8 with cutoff grades of 0.4 g/t Au for oxide and 0.55 g/t Au for fresh rock in the open pit and 2.1 g/t Au for oxide and 1.6 g/t Au for fresh for the underground.

8. A minimum mining width of 3 m was used for preparation of mineralization wireframes.

9. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

10. Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It cannot be assumed that all or part of the Inferred Mineral Resources will ever be upgraded to a higher category.

11. Numbers may not add due to rounding.

5.A.9 Mineral Reserves

The Mineral Reserve estimate for Tucano conforms to the CIM Definition Standards as incorporated by reference into NI 43-101. To convert Mineral Resources to Mineral Reserves, the Qualified Person applied modifying factors of dilution and mineral extraction to only the Measured and Indicated categories of the Mineral Resource. Inferred Mineral Resources are not included in the Mineral Reserves. Tucano consists of both open pit and underground Mineral Resources for which Mineral Reserves have been independently estimated.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 45 

The Mineral Reserve estimate for Tucano is presented in the table below. The open pit estimate is based on the newly developed 2019 resource block models. This Mineral Reserve estimate includes open pit mining in Urucum, TAP AB, Urucum East, and Duckhead and underground mining in the Urucum deposit.

MINERAL RESERVE ESTIMATE AS OF SEPTEMBER 30, 2020

Category	Tonnage (000 t)	Grade (g/t Au)	Contained Metal (000 oz Au)
Proven
Open Pit	1,688	1.61	87
Underground	189	3.78	23
Surface Stockpiles	2,026	0.64	42
Probable
Open Pit	3,880	1.70	212
Underground	1,976	4.17	265
Surface Stockpiles	-	-	-
Proven & Probable
Open Pit	5,568	1.67	299
Underground	2,164	4.13	288
Surface Stockpiles	2,036	0.64	42
Total Proven & Probable	9,758	2.00	629

Notes:

1. Mineral Reserves were classified using the CIM Definition Standards.

2. Mineral Reserve estimation includes mine depletion through to September 30, 2020 and drills results through to July 31, 2020. The effective date of the Mineral Reserve estimate is September 30, 2020.

3. Open pit Mineral Reserves are estimated within designed pits above discard cut-off grades that vary from 0.43 g/t Au to 0.5, g/t Au for oxide ore and 0.58 g/t Au to 0.63 g/t Au for fresh ore. The cut-off grades are based on a gold price of US$1,500/oz Au and operating costs sourced from the current operations and mining contracts at an US$/Brazilian exchange rate of 1:4.5.

4. Mineral Reserves incorporate estimates of dilution and mineral losses.

5. Underground Mineral Reserves were estimated using an incremental cut-off grade of 2.4 g/t Au. The cut-off grades are based on a gold price of US$1,250/oz Au and operating costs sourced from the operations and mining contracts at an US$/Brazilian exchange rate of 1:3.8.

6. A minimum mining width of 20 m was used for open pit Mineral Reserves and 3 m was used for underground Mineral Reserves.

7. The Mineral Reserve estimate includes surface stockpiles.

8. Average metallurgical process recovery is 91.5%.

9. Numbers may not add due to rounding.

5.A.10 Mining Operations

5.A.10.a Open Pit Mining

The Mine is a mature open pit mining operation in a steady state of mining production. The operations are sufficiently established to provide the basis of much of the technical and economic inputs required for the Tucano Technical Report.

Individual pit shell selection was made based on a gold price of US$1,750/oz Au for UCS, US$1,500/oz for Urucum North, TAP AB 1, Duckhead and Urucum East; and US$1,600/oz for TAP AB 3. These pit shells selection was conducted using the July 31, 2020 surfaces. All pit shells are reported with the base price (US$1,500/oz).

The mine planning block models used for the mine design are based on 3-dimensional (“3D”) resource block models for the Tucano deposit and is based on the resource model regularized to the minimum practical size dig block (i.e., selective mining unit), that can be selectively excavated by mining equipment currently employed on site. Each block in the regularized model contains the quantities of diluted mineralized tonnes and grades including the tonnages of mining dilution and ore loss, where ore loss (%) = 100% - mining recovery (%).

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 46 

Mining dilution comprises internal dilution inherited during the model regularization and external (contact) dilution resulting from geological/geometric contacts with waste rock.

Geotechnical and pit design parameters are based on data, information, and results from previous geotechnical studies and incorporate the pre-split drilling and controlled blasting. There is a risk that the failure to attain the design pit slopes could result in pit wall instability and the loss of ore at the pit bottom.

Several geotechnical assessments have been conducted on Tucano. The pit slope design parameters used in Tucano are based on the geotechnical recommendations from third party consultants as more particularly described in the Tucano Technical Report.

Pit Slope Design Parameters – Tucano

Material	Bench Face Angle (°)	Bench Height (m)	Berm Width (m)	Inter-Ramp Angle (°)
Oxide	70	4	3	41.9
Fresh	75	24	10	55.6

All pits have been designed with eight m operating bench heights. To maximize ore selectivity and minimize dilution, it is expected that ore will be mined on four m benches. The catch-berms in fresh rock are stacked at 24 m intervals (Urucum) and 20 m intervals (other pits).

5.A.10.b UCS Pit

The west wall of the UCS pit underwent slope displacement on October 6, 2019. The pit was closed to mining while Great Panther worked toward a remediation plan with the assistance of independent consulting firm Knight Piésold. The pit remains in Mineral Reserves.

Knight Piésold carried out geotechnical drilling and installed piezometers to record water pressures. Using the drilling data, KP modelled the failure mechanism. Failure was slip along an existing structure when the toe of the slope was blasted. A high phreatic level was seen as the main contributing factor that allowed the slip to initiate. There was movement toward the pit, but not a massive slope collapse. Mining of free diggable material commenced in July, 2020 and was suspended in September, 2020 while Knight Piésold completed its analyses. Mining of UCS restarted at 161 masl in late October, 2020 based on the results of geotechnical drilling and analyses performed to that point and the independent consultant provided recommendations regarding slope angles and mining from 161 masl to 111 masl. Draining the pit and monitoring of water levels in piezometer holes is being carried out as mining progresses, and any mining below 111 masl will be evaluated on the basis of whether further drainage is required using horizontal drain holes in order to continue mining safely. If further drainage is required, there is a risk that there may be interruptions of several days, every month or so, if Tucano is required to continue with horizontal drainage.

Mining is expected to be complete in the first quarter of 2022 presuming no disruption in mining activity.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 47 

5.A.10.c LOM Production Schedule

A pit production schedule was generated with the objective of meeting a target ore processing rate of approximately 10,000 tpd at an average 93% annual plant availability. ROM quantities and plant feed estimates are based on Proven and Probable Mineral Reserves.

The ultimate pit designs plus stockpiles contain sufficient ROM quantities to support a 10,000 tpd processing rate through to mid-2023, but mining constraints reduce the rate of ore production so that the actual life of mine is to the end-2023. The open pit Mineral Reserves are included in six pits, with the three largest pits, UCS, Tap AB 1 and TAP AB 3 containing over 80% of the total open pit Mineral Reserves. Oxide ore contributes 57% of the total open pit ore mined. The LOM average strip ratio is 13.2:1. The waste rock dumps are located as close as practical to the open pits to minimize haul distances and haul truck cycle time for each pit phase, considering the pit waste disposal requirements, access road and facility layout, and geotechnical parameters.

The plant feed comprises the ROM ore from the pit and from the stockpiles. The pit ROM production is projected to be a direct feed to the crusher, complemented with the ROM from the stockpiles re-handled on as needed basis.

The contract-operated mining is carried out using conventional open pit methods, consisting of the following activities:

• Drilling performed by conventional production drills.

• Blasting using emulsion explosives and a downhole delay initiation system.

• Loading and hauling operations performed with hydraulic shovel, front-end loader, and rigid frame and articulated haulage trucks.

Open pit mining is currently being undertaken by a mine contractor U&M, one of the largest mining contractors in Brazil. The mining operations are based on the use of hydraulic excavators and a haul truck fleet engaged in conventional open pit mining techniques. Excavated material is loaded to trucks and hauled to either the ROM, ore stockpiles, or the waste dump.

The Company’s personnel monitor the mining contractor and provide engineering support including survey and grade control. The open pit is scheduled to operate 365 days per year, 24 hours per day and the U&M work schedule utilizes four crews working eight-hour shifts.

Equipment productivity and utilization factors and equipment operating hour estimates are based on seasonal conditions (dry, transitional, or wet season during the calendar year), rock type, and various mining conditions including different bench mining width and ramp width.

The mine manpower at the end of December 2020 is 1,471 employees. This includes Tucano and the contractor’s workforce. The ongoing pit operations will require this level of manpower for most of the next two years.

Tucano is expected to produce 110,000 to 120,000 ounces of gold in 2021. For more information, see the “Guidance and Outlook” section of the 2020 MD&A.

5.A.10.d Operating and Capital Costs

Operating costs from 2018 through 2020 are shown below.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 48 

	Mine	Mine	Plant	G&A	Total
	$/t mined	$/t ore	$/t ore	$/t ore	$/t ore	Exchange Rate1
2018	3.77	22.22	14.38	3.59	41.15	3.651
2019	3.27	24.09	18.77	3.64	47.29	3.944
2020	2.81	21.31	13.35	2.52	37.17	5.160

Note:

1. Annual average exchange rates from the US Federal Reserve.

The Company presents operating cost forecasts for its Tucano operations annually. For more information, see the “Guidance and Outlook” section of the 2020 MD&A.

Tucano is an operating open pit gold mine and the open pit capital costs reflect those required to maintain the operations during the LOM plan as set forth below.

Area	Unit	Total	2021	2022
Tailings Dam Expansions	US$ 000	7,796	4,512	3,284
Grinding Expert System	US$ 000	228	228	-
Geotechnical radar	US$ 000	327	327	-
New Crusher	US$ 000	144	144	-
Plant Improvements	US$ 000	433	433	-
Environmental improvements	US$ 000	343	173	170
Power Line	US$ 000	626	346	280
Dispatch System	US$ 000	390	390	-
Others	US$ 000	984	984	-
Pumps	US$ 000	260	260	-
Grizzly	US$ 000	154	154	-
Total Open Pit Capital Cost	US$ 000	11,685	7,951	3,734

Forecasts of operating, capital costs and production are forward-looking statements subject to assumptions, risk and uncertainties which could vary materially from that which is presented. For more information, see “Cautionary Note Regarding Forward-Looking Statements in Section 1.D. of this AIF” and “Risk Factors” in Section 8 of this AIF and the “Guidance and Outlook” section of the 2020 MD&A.

5.A.10.d.i. Underground Mining

The underground mine project is located below the Urucum North open pit. Access would be via a portal located at the north end of the Urucum North pit. The mine layout is based on the following criteria:

• Twin declines accessing the north and south parts of the orebody;

• Portal situated on the north side of the Urucum North open pit;

• North and south exhaust ventilation raises;

• 20 m sublevel interval;

• Stopes accessed by a footwall drive and crosscuts on every sublevel;

• Decline development initiates in Year 1; and

• Mine plan targets Measured, Indicated, and Inferred Mineral Resources down to 500 mRL (750 m below sea level).

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 49 

Geotechnical data from an infill drill program below the Urucum North Pit indicates that the ground conditions at the Urucum North are suitable for open stoping mining methods. Furthermore, stopes measuring 50 m in length and 20 m in height will be feasible. It will be possible to mine multiple stopes simultaneously in the same ore block. As the ore lodes are steeply dipping and relatively narrow, they are suitable for longitudinal longhole open stoping.

The base of weathering is relatively shallow. It occurs less than 50 m over the orebody and less than 30 m over the country-rock. Consequently, it will have minimal effect on the underground mine. Weathering will, however, be a factor for establishing the portal location and the upper sections of ventilation raises. Furthermore, weathering may be present along major faults and on the contacts of pegmatite dykes.

Up-hole retreat will be used in the upper levels of the northern part of the mine. This method permits ore production to commence early in the LOM schedule because mining proceeds in a top-down sequence. Moreover, it can achieve high rates of production as backfill is not required in the mining cycle. A disadvantage of the method, however, is that it requires leaving rib pillars for supporting the sidewalls, which results in an 86% ore recovery.

Conventional Avoca stoping will be used for mining the remainder of the orebody. It permits high ore recovery as it does not require leaving pillars along strike. A pastefill plant will not be needed as the method uses rockfill for backfilling. The Tucano site has an abundance of stockpiled waste from open pit mining available as a source of rockfill.

Sill pillars will be left between ore blocks to permit simultaneous production in multiple mining elevations. These pillars will be partially recovered (estimated at 65% recovery) towards the end of the mine life using Up-hole retreat. As additional information about the resource is acquired, it should be possible to reposition some of the sill pillars in low-grade zones.

The mine design uses a 20 m sublevel interval. This sublevel interval enables accurate drilling of longholes, which will help minimize dilution. The ore drives will be 5 m high; consequently, the typical height of an Up-hole Retreat stope or Avoca bench will be 15 m. A minimum mining width of 2.0 m has been assumed. With assumed skin dilution of 0.5 m from each of the footwall and hanging wall, the actual minimum stope width will be 3.0 m.

The design of the declines allows the mobile equipment to access each of the production levels. Footwall drives and crosscuts on the sublevels provide access to the stopes. The cross-sectional dimensions of the declines and crosscuts will be 5.0 m high x 5.0 m wide, which is adequate for accommodating Volvo AD35 articulated trucks. The ore drives will have a cross-section of 5.0 m high x 4.0 m wide, which is enough for 10-tonne-capacity LHDs as well as the proposed production drill. The trucks will not enter the ore drives.

The following assumptions, based on industry benchmarks, were used to determine the production and development rates and schedules:

• Decline and crosscut advance of 140 m/month.

• Ore drive advance of 60 m/month.

• Production rate from stoping of 10,000 t/month for both Up-Hole retreat and Conventional Avoca.

• Backfilling rate of 12,000 m³ per month per stope for Conventional Avoca.

The schedule is based on operating three development jumbos and two LHDs for both the north and south declines. The annual ore production tonnages vary depending on the number of production fronts that are available in any given year.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 50 

5.A.11 Mineral Processing

The existing Tucano gold processing plant was designed by Ausenco. After approximately four years of operation, an expansion was planned as part of the original feasibility study to install a 3 MW ball mill. This new secondary grinding mill, alongside the 7 MW single stage SAG mill, was installed in order to maintain 3.4 Mtpa throughput capacity treating 90% of the much harder sulphide ore type.

The plant flowsheet was modified in 2018 to deal with the harder sulphide ore type and the key features of these flowsheet changes are as follows:

• An additional 6 MW ball mill to increase original Ausenco design capacity to 3.6 Mtpa and potentially obtain a finer product size of 80% < 75 μm at a higher proportion of sulphide ore to increase cyanide leach gold recovery and kinetics. This was completed in September 2018.

• A pre-leach thickener to allow effective operation of the hydrocyclones which in turn provides higher leach feed pulp % solids. The change in philosophy from the originally proposed tailings thickener to a pre-leach thickener is explained further below. This was completed in September 2018.

• Additional leach residence time by adding one additional pre-leach tank to allow for the higher proposed plant capacity. This was completed November 2018.

• In November 2018, an oxygen plant was added to the CIL as proposed by Ausenco. An additional Liquid Oxygen plant was added in April 2019.

At a plant throughput of 450 tonnes per hour and a slurry density of 45% solids, a total volume of 17,200 m³ is required to provide a leach residence time of 24 hours. The previous CIL provides 15,400 m³; therefore, one additional leach tank, 15 m x 15 m was required. The new tank was located ahead of the existing CIL tanks and used for pre-leaching. This allows a major proportion of gold to go into solution before the resultant pregnant solution comes into contact with the carbon, this speeds up adsorption kinetics.

As outlined above, the commissioning of the new oxygen plant was completed in April 2019, which resulted in a consistent increase of gold recoveries to an average of 92.2% from May 2019 to September 2020.

5.A.12 Infrastructure, Permitting and Compliance Activities

Tucano is currently operating and has all of the required infrastructure to carry on operations in the normal course. Additional surface infrastructure will be required to support underground operation.

Tucano has built a new East Tailings Dam at elevation 137 m which has a total capacity of 5.7M m³ or 2 years storage capacity (i.e. January 2023). The East Dam will increase its capacity by a subsequent lift to El. 145m that provides an additional 3.8M m³ storage capacity or 1.2 years (i.e. April 2024). After the East Dam El. 145 m achieves designed capacity, Tucano plans to extend the tailings storage capacity by commissioning two new dams, East-NW Extension, and West Pond Phase 2 (WPP2), which together will provide tailings storage until 2026-2027, subject to receipt of applicable permits.

Tucano is in possession of all licences required for the operation of the mine, mill, processing plant, and constructed TSFs (including the East Dam to RL 137m) in compliance with Brazilian regulations.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 51 

Continuous monitoring programs are carried out at Tucano, which confirm that there are no material concerns pertaining to non-compliance.

5.B. GMC

The scientific and technical information on the GMC in this Section 5.B. of the AIF is based on the GMC Technical Report described in Section 1.E. of the AIF. The conclusions, projections and estimates as well as certain other information included in this Section of the AIF are presented in summary form and subject to the qualifications, assumptions and exclusions set out in the GMC Technical Report. Readers are recommended to read the GMC Technical Report in its entirety to fully understand the project. The GMC Technical Report in available on SEDAR (sedar.com) or on EDGAR (sec.gov).

5.B.1 The GMC

On October 25, 2005, the Company signed a formal purchase agreement with the Sociedad Cooperativa Minero Metalúrgica Santa Fe de Guanajuato (the “Cooperative”) to purchase 100% of the ownership rights in a group of producing and non-producing silver-gold mines in the Guanajuato Mining District. The total purchase price was $7.3 million, which included 1,107 hectares in two main properties (the Guanajuato and San Ignacio claims), the Cata processing plant (which has a nameplate capacity of 1,200 tpd), workshops and administration facilities, complete mining infrastructure, mining equipment, and certain surface rights. The final payment under this purchase agreement was made in November 2006.

In May 2006, the Company purchased 3.88 hectares of real estate adjacent to the plant at the GMC for a total of $0.7 million from the Cooperative. The decision to buy the extra land was made in order to facilitate any future expansion of the processing plant facilities and to buffer the processing plant site from any possible development nearby.

In December 2007, the Company purchased an additional 0.28 hectares of land immediately adjacent to the plant and below the tailings dam at the GMC from the Cooperative for a total of $0.3 million. The land was primarily purchased to buffer the area from any possible development.

In August 2012, the Company signed a definitive agreement for the purchase of a 100% interest in certain surface rights to a total of 19.4 hectares at San Ignacio, for the construction of a mine portal and ancillary surface facilities.

5.B.2 Property Description, Location, and Access

Central Mexico has a dry climate with an annual precipitation of about 600 mm per year generally falling between June and October. The annual mean temperature is 25°C, but winters can be cool with lows approaching 0°C. Exploration and mining work can be conducted year-round, uninterrupted by weather.

The GMC is located on the Central Plateau of Mexico in the Sierra Guanajuato, approximately 380 km by road northwest of Mexico City. The terrain is moderately rugged, with elevations on the property ranging from 1,600 masl to 2,200 masl. Hillsides are deeply incised by drainage and slopes are moderately to extremely steep. Vegetation consists of grasses, small trees, shrubs, and cacti. Larger trees grow in the valley bottoms where there is more water.

Guanajuato Mine

The property is accessible via city streets in the city of Guanajuato, in Guanajuato State, Mexico. Guanajuato has a population of approximately 184,000 and is located within 50 km, by road, of an international airport at León, Mexico. The mine is easily accessible from major population centres in central Mexico via a system of modern roads.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 52 

San Ignacio Mine

The mine is located approximately 8 km northwest of the city of Guanajuato. Access to the property is provided via a 35-minute drive from the outskirts of the city of Guanajuato (approximately 22 km), mostly by paved road through the towns of Santa Ana and Cristo del Rey. The Company has negotiated surface rights sufficient for mining operations.

The area where Guanajuato and San Ignacio are located is characterized by rolling hills with small-incised drainages, which generally provide windows through thin soil cover to good bedrock exposures.

Mineral feed from both Guanajuato and San Ignacio is blended and processed at the Cata processing plant which is located at Guanajuato.

5.B.2.a Guanajuato Mine

Guanajuato is an underground silver-gold mine situated along the north-eastern side of Guanajuato. The mine consists of a number of mineralization zones along an approximately 4.2 km strike length, which is mined from two operating shafts and two ramps. The location of Guanajuato falls within the second largest (historically) producing silver district in Mexico and the deposits on the Veta Madre trend, the principal host structure, have been mined since the 16th century.

Claim boundaries have been legally surveyed. The 19 mineral claims comprise 680 hectares in a contiguous claim block and expire between 2024 and 2057. The TSF and waste rock dump are contained within the property boundaries in areas where the Company holds surface rights at Guanajuato. There are no known environmental liabilities associated with the mineral claims, other than the provision recognized in the Company’s Annual Financial Statement for the estimated present value of future reclamation and remediation. This value comprises the provision associated with the Cata plant, TSF area and related infrastructure of the GMC, as well as the provision for Guanajuato.

5.B.2.b San Ignacio Mine

San Ignacio lies within La Luz mining camp of the Guanajuato Mining District, located in the southern part of the Mesa Central physiographic province. The Mesa Central is an elevated plateau located in central Mexico. The mineralization on the property consists of epithermal silver-gold veins.

Surface rights owned by the Company are limited to blocks of ground around the old San Ignacio shaft and an additional block over the present underground development (new roads, mine rock dumps, and surface infrastructure). The nine mineral claims comprise 398 hectares and expire between 2031 and 2041. The Company has acquired surface rights sufficient for mining operations. There are no known environmental liabilities associated with the mineral claims, other than the provision recognized in the Annual Financial Statements for the estimated present value of future reclamation and remediation associated with the future retirement of San Ignacio.

5.B.3 History

Exploration in the Guanajuato area dates back to 1548 when silver mineralization was first discovered in the La Luz area by Spanish colonists. Two years later an outcrop of the Veta Madre was found near the current site of the Rayas Mine. Mining took place on a relatively small scale until the early 1700s when the application of explosives for tunneling resulted in a significant increase in production capacity. In the latter portion of the 18th century, Antonio Obregón y Alcocer financed the discovery and development of the Valenciana Mine. This mine became one of the premier silver mines in the world, at the time accounting for a third of global annual silver production. The Spanish controlled mining in the district until 1816 when mining ceased and all production facilities were destroyed during the Mexican War of Independence. The Valenciana Mine was reopened in 1868 with British capital. The British interests operated the mines for ten years but did not result in much success, losing a considerable amount of money. Operations at that time were hampered by a lack of rail facilities and the necessity of hauling heavy equipment from the coast by mule. Mining production declined during the early 1900s due to low prices. At that time, American interests acquired and reopened many of the mines. Old ore dumps and tailings were reprocessed to extract gold and silver; however, the onset of the Civil War in 1910 severely curtailed mining activity in the country, resulting in a decades-long slump in production.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 53 

By the mid-1930s, demands for higher pay and better working conditions resulted in the mines being turned over to the newly formed Cooperative in 1939. The Cooperative operated several mines in the district throughout the latter half of the 20th century and into the early 2000s.

The Company acquired the GMC from the Cooperative in 2005. At the time of the purchase, the GMC suffered from lack of investment and working capital, and had not run at full capacity since 1991. The Company resumed production in 2006.

5.B.4 Geological Setting and Mineralization

The GMC is in the Guanajuato Mining District, which is in the southern part of the Mesa Central physiographic province. The Mesa Central is an elevated plateau of Cenozoic volcanic and volcanoclastic rocks located in central Mexico. It is bounded to the north and east by the Sierra Madre Oriental, to the west by the Sierra Madre Occidental, and to the south by the Trans-Mexican Volcanic Belt.

Rocks within the Mesa Central consist of a Paleocene to Pliocene sequence of dacite-rhyolite, andesite, and basalt, with related intrusive bodies and intercalated local basin fill deposits of coarse sandstones and conglomerates. This Cenozoic volcanic-sedimentary sequence overlies a package of deformed and weakly metamorphosed Mesozoic submarine mafic volcanic and turbidite rocks.

Within the Mesa Central, the GMC is situated within the Sierra de Guanajuato, a northwest-trending anticlinal structure approximately 100 km long and 20 km wide. The strata within the belt are transected by northwest, north, east-to-west, and northeast-trending regional scale faults. It is predominantly the northwest-trending structures that control the position of mineralization. Normal fault movement along northeast-trending faults resulted in the downward displacement of certain blocks and the preservation of strata that was eroded in other areas. The northwest faults and structural intersections along these faults are therefore important locators of mineral camps within the belt.

Cretaceous volcanic rocks of La Luz Basalt underlie San Ignacio. These rocks are part of a volcanic-sedimentary complex that has various tectonic interpretations, but in general preserves a tectonic history probably related to northeastward tectonic thrust emplacement. By contrast, much of the area to the south-east (e.g., in and around Guanajuato) is underlain by a series of Tertiary volcanic rocks that lie unconformably on La Luz Basalt. The lower Guanajuato conglomerate is widespread and is of mid-Eocene to early Oligocene. Later, volcanic rocks were deposited unconformably on the Guanajuato conglomerate in a caldera setting at the intersection of regional northeast and northwest trending mid-Oligocene extensional fracture systems.

Three main northwest-trending precious metal-bearing vein systems occur in the district: the Sierra, Veta Madre, and La Luz systems.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 54 

5.B.4.a Guanajuato Mine

The “Veta Madre” quartz-adularia vein / breccia system is closely associated with the Veta Madre fault and an associated diorite dyke (thickness varying from discontinuous lenses at Guanajuatito to a 50-100m thick body in the Cata, Los Pozos, and Santa Margarita areas), oriented 325-degrees with a 45-degree southwest dip. The Veta Madre forms along the dyke contacts, and in the footwall Esperanza Formation. A series of mineralizing events is thought to have taken place during the Oligocene, a period of intense felsic volcanic activity in the area, and comprised three stages termed pre-ore, ore, and post-ore. Pre-ore mineralization consists of trace silver and gold with accessory quartz and adularia. Mineralized material comprises an early silver-rich phase associated with adularia, as well as a later low-silver variant, which is typified by calcite and quartz. The post-ore mineralization is also precious metal-poor, with accessory calcite, dolomite, and fluorite.

The primary mineralization of economic importance is silver and gold, with silver the more important of the two. Base metals do not normally occur in economic concentrations. Average silver grades of the ore are typically in the 100 g/t Ag to 500 g/t Ag range but locally can be over 1,000 g/t Ag. Gold grades are generally in the 0.5 g/t Au to 2 g/t Au range, except for the Santa Margarita vein where average grades are in the range of 5 g/t Au to 7 g/t Au. Within the mine, drill core and channel samples are not normally analysed for base metals so average grades for Cu, Pb or Zn have not been obtained.

At the Guanajuatito zone the main mineralization occurs in the deformed siltstone and shale of the Esperanza Formation contiguous with the Veta Madre Fault. Six zones were modeled at Guanajuatito, with the Veta Madre and the closely associated footwall FW zone being dominant below the 80 level. At the Cata zone, Veta Madre mineralization occurs along the base of the diorite dyke with the Esperanza Formation, and as seven separately modelled zones within the diorite. A number of these zones are shallow dipping structural splays. The Los Pozos area zones, between Cata and Rayas shafts, are comprised of five vein stockwork to breccia systems (Veta Madre) at the base of the diorite dyke and into the Esperanza Formation, as well as on the upper diorite dyke contact with the Guanajuato Formation conglomerates. The Santa Margarita zones form a complex structural set of three bodies within the diorite dyke and at its upper contact with the Guanajuato Formation conglomerates or basal andesite. These are above the Veta Madre breccia which is at the diorite contact with the footwall Esperanza Formation. The San Cayetano zone occurs deep in the Veta Madre south of the Rayas shaft, and tends to be narrow and often in the upper portion of the Veta Madre. The Promontorio area zones occurs in the hanging-wall Guanajuato Formation conglomerates immediately above the Veta Madre structure at the contact of the Guanajuato Formation and the diorite dyke. At Valenciana there are parallel mineralized structures (Veta Madre) at the Esperanza Formation – diorite contact and into the Esperanza Formation.

The best mineralization is often found related to bends in the Veta Madre orientation such as at San Vicente in the Rayas area, and at Cata and Santa Margarita. These structural bends may be due to changes in rock type competencies, and varying thickness of the diorite dyke.

The vertical extent of the deposits at Guanajuato spans over 700 m (2,200 m to 1,500 m elevations and open to depth). Mineralization occurring above 2,100 m elevation was termed “upper ore”, between 2,100 m and 1,700 m “lower ore”, and below the 1,700 m elevation “deep ore”. Fluid inclusion microscope work from over 850 samples gathered through the mine and in deep drilling from the Santa Margarita area, indicated boiling zones from the 2,100 m to 1500 m (deepest drilling at the GMC) elevations. Structural observations of up to eight stages of crosscutting brecciation, and the variable range of Ag:Au ratios indicate that the mineralization along the Veta Madre is associated with multi-phase structural activity and fluid flow.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 55 

5.B.4.b San Ignacio Mine

San Ignacio is underlain by a package of basalt and andesite volcanic rocks belonging to the lower Cretaceous La Luz andesite. The basalt generally has subtle to well-developed pillow structures that are locally flattened. In a few localities, inter-pillow hyaloclastite is present and is characterized by a fine breccia composed of devitrified glass shards in a fine groundmass. Primary layering and way up indicators are generally difficult to determine from the small outcrops typical of the property, but the San Ignacio stratigraphy is not overturned.

San Ignacio contains structures of the La Luz vein system comprising numerous mineralized fractures in a northwesterly-trending orientation and extending for a known strike length of approximately eight km. Historically productive veins on the property include the Veta Melladito and Veta Plateros. Veins identified in the recent Great Panther drilling are the Melladito, Melladito BO, Intermediate, Intermediate 2, Nombre de Dios, Nombre de Dios 1.5, Nombre de Dios 2, Nombre de Dios 2S, Nombre de Dios 3, Melladito South, 700, Purisima, Purisima HW, Purisima Int., Purisima Bo, and Santo Nino. Mineralization is contained within tabular veins, vein stockwork, and breccias. The 16 veins with structural continuity inferred from surface mapping and diamond drilling from surface, and now with extensive underground development, have been defined up to 2,200 m along strike and 150 m down dip. Six of the veins are very steeply dipping and ten are shallowly dipping and are likely off-shoots of the other veins. The veins are accompanied by hydrothermal alteration, consisting of argillic, phyllic, silicic, and propylitic facies.

The primary economic components are silver and gold with approximately equal contributions of each. Economic mineralization consists of fine-grained disseminations of acanthite and pyrargyrite (silver minerals), electrum (gold-silver mineral), with accessory pyrite, and very minor sphalerite and chalcopyrite. Mineral textures in this zone are typically fracture filling, drusy, and colloform masses.

Average silver grades of the eight veins range from 58 g/t to 237 g/t Ag, while average gold grades range from 1.65 g/t to 3.84 g/t Au.

5.B.4.c Deposit Types

The mineral deposits in the Guanajuato area are classic fissure-hosted low-sulphidation epithermal gold-silver-bearing quartz veins and stockwork. Mineralization consists of fine-grained disseminations of acanthite, electrum, aguilarite, and naumannite with accessory pyrite, and relatively minor sphalerite, galena, and chalcopyrite. Gangue minerals include quartz, calcite, adularia, and sericite. The veins are accompanied by hydrothermal alteration consisting of argillic, phyllic, silicic, and propylitic facies. Mineral textures in this zone are typically fracture-filling, drusy, and coliform masses.

Epithermal systems form near surface, usually in association with hot springs, and at depths of several hundred’s metres below the paleosurface. Hydrothermal processes are driven by remnant heat from volcanic activity, which in the case of Guanajuato occurred in the middle to late Tertiary. Circulating thermal waters, rising through fissures, eventually reach the “boiling level” where the hydrostatic pressure is low enough to allow boiling to occur. This can impart a limit to the vertical extent of the mineralization as the boiling and deposition of minerals is confined to a relatively narrow band of thermal and hydrostatic conditions. In many cases, however, repeated healing and reopening of host structures can occur, which causes cyclical vertical movement of the boiling zone, resulting in mineralization that spans a much broader range of elevations. This appears to have occurred at the Guanajuato Mine.

Epithermal type precious metal deposits in the La Luz vein system and specifically in San Ignacio are strongly vertically controlled and pinch to cm scale at surface, associated with weak shear zones, minor argillic alteration, and weakly anomalous precious metal values. The mineralized vertical interval typically is 100 m to 150 m; however, it can range from 50 m to well beyond 250 m.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 56 

5.B.5 Exploration

5.B.5.a Guanajuato Mine

Exploration work conducted by Great Panther has consisted almost exclusively of diamond drilling, primarily from underground. In late 2018 with the imminent closure of Guanajuato, the old stopes program was re-initiated using geological staff from Guanajuato being seconded into the Exploration group. This program of geological mapping and sampling was carried out on all accessible levels from November 2018 to July 2020 and will continue as further historical levels are checked and rehabilitated.

Underground exploration sampling since the last technical report (effective date October 31, 2019) until July 31, 2020 totals 10,252 samples. The sampling was done as part of a comprehensive review of historical data, and re-mapping and re-sampling of accessible historical areas to develop zones of interest for targeting by core drilling.

5.B.5.b San Ignacio Mine

Great Panther has conducted geological and structural mapping, including sampling of outcrops and from exposures in historical underground workings. Subsequently, the Company completed underground development, geological mapping, sampling and selective mining.

Great Panther completed detailed surface mapping and outcrop rock chip sampling, including mapping and sampling all accessible underground workings pre-2014. Further detailed geological structural mapping was completed in 2015 and was ongoing through 2018.

During 2018 and 2019, exploration efforts were focused on both surface and underground drilling at San Ignacio. Mining is on-going in the northern extent of the project along the Nombre de Dios veins, and an exploration/development ramp is being driven south into the old San Pedro mine area, where the Purisima vein system merges with the Melladito vein system. In 2019 surface exploration efforts were focused on both the Nombre de Dios vein extension north, and on the Melladito and Purisima veins orientation in the old San Pedro Mine area. In 2020, surface drilling has exclusively focused on the old San Pedro mine to old San Ignacio shaft area, along the Purisima vein trend.

5.B.6 Drilling

5.B.6.a Guanajuato Mine

Diamond drilling at Guanajuato is conducted under two general modes of operation: one by the exploration staff (exploration drilling) and the other by the mine staff (production and local expansion drilling). Production drilling is predominantly concerned with definition and extension of the known zones, to guide development and mining and is generally carried out to provide additional confirmation of vein location and geometry as the veins tend to regularly pinch and swell.

Exploration drilling is conducted further from the active mining area with the goal of expanding the Mineral Resource base. Drilling results from both programs along with underground drift samples are used in the estimation of Mineral Resources.

Since the start of 2019 exploration staff have made a concerted effort compiling historical data, geological mapping, sampling and drilling to find extensions of various orebodies and new targets for exploration. Drilling in 2020 has been focused in the Promontorio, Los Pozos, Santa Margarita, and Valenciana areas.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 57 

Exploration drilling is carried out with the use of three underground contract drills. The three contract drills are focused on upgrading mineral resource definition, and in drilling new targets. Upgrading of resources is being carried out at the Los Pozos, Valenciana, and Promontorio zones.

The management, monitoring, surveying, and logging of the current 2010 to 2019 series of UGG prefix exploration holes and production drill holes was carried out under the supervision of the mine geological staff.

Up to mid-2016 all sample and geological data was entered into a DataShed© database via the LogChief software. The GMC geological staff now use an in-house software that loads data directly into Microsoft SQL. The contents of the SQL databases are copied daily to a master SQL database in the Great Panther head office in Vancouver with a backup made every evening.

Assay data files are sent directly from the Cata laboratory into a specific site on the Cata server. Database management personnel take the assays from this site and merge them with the sampling information in the SQL database. The Cata laboratory was managed by SGS until December 31, 2018, and presently by in-house personnel.

5.B.6.b San Ignacio Mine

Great Panther has completed 491 diamond drill holes at San Ignacio. Drilling commenced in October 2010 and the last hole into the database was completed on July 31, 2020. From the total, 292 holes were drilled from surface and 199 from underground.

Drill holes were usually oriented to intersect the veins at a high angle. A total of 54 additional drill holes have been completed at San Ignacio since the previous Mineral Resource Estimate.

The drilling and development programs since 2019 provided the geological information to support a re-interpretation of the mineralized zones. This included the delineation of night veins in the northern portion of the property between grid line 100N and 1150N where 326 of the 491 holes were completed, and seven veins in the southern part of the property (San Pedro area) between 100N and 1100S where 165 holes were completed. The nine northern veins demonstrating structural continuity were identified from diamond drill hole intersections, underground mapping and sampling, and to some extent surface mapping. These veins have a demonstrated a strike length of up to 1,000 m and a dip length of up to 350 m.

Overall, the core recovery of mineralized zones was excellent averaging 92%. There are no factors related to drilling or sampling that could materially influence the accuracy and reliability of the results.

Procedures related to sample and geological data integrity are consistent with those described for the Guanajuato Mine.

5.B.7 Sample Preparation, Analyses and Security

5.B.7.a Guanajuato Mine

The drill core samples were prepared by technicians working under the direction of the mine and exploration geologists. The exploration diamond drill core is of HQ and NQ diameter while the production holes drilled prior to July 2011 generally have an AQ diameter. During July 2011, a BQ diameter rig (Diamec) was added to the production drilling capacity. Until the end of 2018, most of the analytical work was carried out at an on-site laboratory managed for Great Panther by SGS which is located within the confines of the Cata facility. The laboratory is equipped to perform Aqua Regia digest, fire assay, gravimetric and AAS. The laboratory reverted to Company management at the beginning of 2019, and therefore lost its accreditation that was gained under the SGS. The Company has adopted appropriate quality assurance and quality control procedures to compensate. These include sending samples to SGS for assay.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 58 

Both the Geology Department core shed and the Cata laboratory are located within the Cata facility which is fenced and guarded around the clock. The site security is consistent with common practical industry standards.

5.B.7.b San Ignacio Mine

All sampling and analytical work was conducted by employees, contractors, or designates of Great Panther.

Sample preparation prior to dispatch to the analytical laboratories consisted of splitting the sample in half by cutting the core using a rock saw. Quality control measures included the insertion of quarter-core duplicates, standard reference materials, and blanks into the sample stream.

Chain of custody was established upon sample collection with the use of unique sample ID, documentation of samples per shipment to the lab, and sign-off forms for receipt of samples by the laboratory.

Prior to dispatch, the samples were stored within the core storage and logging facility located at the Company’s Cata processing plant site.

Until the end of 2018, most of the analytical work was carried out at a laboratory managed for Great Panther by SGS which is located within the confines of the Cata facility. The laboratory is equipped to perform Aqua Regia digest, fire assay, gravimetric and AAS. The laboratory reverted to Company management at the beginning of 2019, and therefore lost its accreditation that was gained under the SGS. The Company has adopted appropriate quality assurance and quality control procedures to compensate. These include sending samples to SGS for assay.

5.B.8 Mineral Resource Estimates

5.B.8.a Guanajuato Mine

The Guanajuato Mine Mineral Resource Estimate has an effective date of July 31, 2020 and updates the previous resource estimate to reflect depletion due to mining and resource definition resulting from successful exploration activities.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 59 

MINERAL RESOURCE ESTIMATE AS OF JULY 31, 2020 - GUANAJUATO

Classification	Tonnes	Grade Ag (g/t)	Contained Ag (oz)	Grade Au (g/t)	Contained Au (oz)	Grade Ag eq (g/t)	Contained Ag eq (oz)	Grade Au eq (g/t)	Contained Au eq (oz)
Measured	286,139	253	2,328,051	1.63	14,995	400	3,677,663	4.44	40,863
Indicated	147,814	241	1,144,963	1.65	7,816	390	1,851,448	4.33	20,572
Total M&I	433,953	249	3,473,014	1.64	22,811	396	5,529,111	4.40	61,435
Inferred	460,174	220	3,258,101	2.07	30,689	407	6,020,031	4.52	66,889

Notes:

1. Totals may not agree due to rounding.

2. Grades have been estimated in metric units and contained silver and gold estimated in troy ounces (oz).

3. A minimum mining width of 0.50 m and a vein bulk density of 2.64 t/m3 were used in the estimates.

4. Mineral Resources are estimated using cut-offs based on the full operating costs per mining area of US$115/t for Cata, US$115/t for Santa Margarita/San Cayetano, US$89/t for Los Pozos, US$100/t for Guanajuato, US$125/t for Promontorio, and US$102/t for Valenciana.

5. Block model grades converted to US$ value using plant recoveries of 85.5% Ag, 83.9% Au, and net smelter terms negotiated for concentrates.

6. Ag eq oz were calculated using 90:1 Ag:Au ratio. The ratios are reflective of average metal prices for 2020.

7. Metal prices US$17.64/oz silver, and US$1,694 gold (based on CIBC 2021 forecast).

8. Estimates have an effective date of July 31, 2020.

9. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

10. Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or part of the Inferred Mineral Resources will ever be upgraded to a higher category.

5.B.8.b San Ignacio Mine

The San Ignacio Mine Mineral Resource Estimate has an effective date of July 31, 2020 and updates the previous resource estimate to reflect depletion due to mining and resource definition resulting from successful exploration activities.

Updated drilling and interpretation of zones in 2020 has resulted in the addition of Purisima HW, Purisima Int., 700, and Santo Nino zones.

MINERAL RESOURCE ESTIMATE AS OF JULY 31, 2020 – SAN IGNACIO

Classification	Tonnes	Grade Ag (g/t)	Contained Ag (oz)	Grade Au (g/t)	Contained Au (oz)	Grade Ag eq (g/t)	Contained Ag eq (oz)	Grade Au eq (g/t)	Contained Au eq (oz)
Measured	314,802	142	1,435,252	2.64	26,746	384	3,842,386	4.27	42,693
Indicated	73,096	144	338,246	2.19	5,135	349	800,416	3.87	8,894
Total M&I	387,898	142	1,773,498	2.56	31,881	377	4,642,801	4.19	51,587
Inferred	992,835	169	5,406,142	2.33	74,530	384	12,089,792	4.27	134,331

Notes:

1. Totals may not agree due to rounding.

2. Grades have been estimated in metric units and contained silver and gold estimated in troy ounces (oz).

3. A minimum mining width of 0.50 m and a vein bulk density of 2.68 t/m³ were used in the estimates.

4. Mineral Resources are estimated at a full cost cut-off net smelter return (NSR) of US$100/t using metal prices of US$17.64/oz Ag and US$1,694/oz Au (based on CIBC 2021 forecast) and metallurgical recoveries of 85.5% for Ag and 83.9% for Au.

5. Ag eq oz were calculated using 90:1 Ag:Au ratio. The ratios are reflective of average metal prices for 2020.

6. Estimates have an effective date of July 31, 2020.

7. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

8. Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or part of the Inferred Mineral Resources will ever be upgraded to a higher category.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 60 

The Mineral Resource Estimates for Guanajuato and San Ignacio were completed using MicroMine 3D geological software, and the inverse distance cubed estimation technique was utilized in the estimation of grade to each of the blocks in the block models. An NSR calculator was used to convert block grades into NSR (USD/tonne) values (considering mill recoveries, smelter terms, and designated metal prices). Only blocks with NSR values over the designated full operational cost cut-off were used in the Mineral Resource Estimates.

5.B.8.c Consolidated Mineral Resource Estimate for the GMC

CONSOLIDATED MINERAL RESOURCE ESTIMATE AS OF JULY 31, 2020 – THE GMC

Classification	Tonnes	Ag  (g/t)	Ag  (oz)	Au  (g/t)	Au (oz)	Ag eq  (g/t)	Ag eq (oz)	Au eq  (g/t)	Au eq (oz)
Total Measured	600,941	195	3,763,303	2.16	41,741	389	7,520,049	4.32	83,556
Total Indicated	220,910	209	1,483,209	1.83	12,951	373	2,651,863	4.15	29,465
Total M&I	821,851	199	5,246,512	2.07	54,693	385	10,171,912	4.28	113,021
Total Inferred	1,453,008	185	8,664,244	2.25	105,219	388	18,109,823	4.31	201,220

Notes:

1. This consolidated Mineral Resource estimate for GMC includes the estimates of the San Ignacio and Guanajuato mines.

2. Totals may not agree due to rounding.

3. Grades have been estimated in metric units and contained silver and gold estimated in troy ounces (oz).

4. A minimum mining width of 0.50 metres (m) was used in the estimates.

5. For San Ignacio, a vein bulk density of 2.68 t/m³ was used and for Guanajuato, a vein bulk density of 2.64 t/m³ was used in the estimates.

6. For San Ignacio, Mineral Resources are estimated at a full cost cut-off net smelter return (NSR) of US$100/t using metal prices of US$17.64/oz Ag and US$1,694/oz Au (based on CIBC 2021 forecast) and metallurgical recoveries of 85.5% for Ag and 83.9% for Au.

7. For Guanajuato, Mineral Resources are estimated using cut-offs based on the full operating costs per mining area of US$115/t for Cata, US$115/t for Santa Margarita/San Cayetano, US$89/t for Los Pozos, US$100/t for Guanajuato, US$125/t for Promontorio, and US$102/t for Valenciana.

8. For Guanajuato, metal prices US$17.64/oz silver, and US$1,694 gold (based on CIBC 2021 forecast).

9. For Guanajuato, block model grades converted to US$ value using plant recoveries of 85.5% Ag, 83.9% Au, and net smelter terms negotiated for concentrates.

10. Ag eq oz were calculated using 90:1 Ag:Au ratio. The ratios are reflective of average metal prices for 2020.

11. Estimates have an effective date of July 31, 2020.

12. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

13. Inferred Mineral Resources have a great amount of uncertainty as to their existence and as to whether they can be mined economically. It cannot be assumed that all or part of the Inferred Mineral Resources will ever be upgraded to a higher category.

5.B.9 Mineral Reserve Estimates

There are no Mineral Reserve estimates for the GMC. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

The Company made production decisions to enter production at the GMC at both Guanajuato, in 2006, and San Ignacio in 2013. The Company did not base these production decisions on any feasibility study of Mineral Reserves demonstrating economic and technical viability of the mines. Thus, there may be increased uncertainty and risks of achieving any level of recovery of minerals from the mines at the GMC or the costs of such recovery. As the GMC does not have established Mineral Reserves, the Company faces higher risks that anticipated rates of production and production costs will be achieved, each of which risks could have a material adverse impact on the Company’s ability to continue to generate anticipated revenues and cash flow to fund operations from the GMC and ultimately the profitability of these operations.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 61 

5.B.10 Mining Operations

5.B.10.a Guanajuato Mine

Guanajuato consists of a series of interconnected, previously independent, mines including Promontorio, Santa Margarita, Rayas, Los Pozos, Cata, Valenciana and Guanajuatito.

Mining at Guanajuato predominantly comprises cut and fill stoping, with some pillar recovery in historic workings, and a few zones where mineralized extensions are discovered and mined over a period of a few months. Mining is generally more selective using jacklegs. However, where possible, mechanized cut and fill is utilized.

Two main shafts serve access to the active mine areas, while several other old shafts provide ventilation support. The Rayas shaft is used for transportation of personnel and supplies, while the Cata shaft, located just above the processing plant is used to transport the mineralized material for milling. These are currently de-energized and access of men and materials and egress of ore is via the Rayas ramps, San Vicente and Guanajuatito that provide the access at each end of the mine network, including for mobile equipment.

Rock integrity at Guanajuato is considered favorable, but occasionally roof support, in form of rock bolting, and very occasionally wire mesh, is required.

Mining is conducted by contractors, primarily sourced from nearby communities, utilizing equipment owned by the Company and the contractors. Mine contractors and equipment are alternated between the mines, including San Ignacio, to accommodate the mining sequencing.

Guanajuato was placed on a care and maintenance basis from January 2019 to July 2019 to allow for a focused exploration program.

5.B.10.b San Ignacio Mine

Mining at San Ignacio started in the third quarter of 2013 and commercial production was declared in the second quarter of 2014.

The mining method is mechanized cut and fill, with fill provided by waste development. Jacklegs are used in stopes for vertical to 70 degree production holes, and if necessary the hanging wall can be blasted to create a 2.0 m wide stope. Forced air ventilation uses electric fans, and sump pumps operate at 50-60 gpm removing mine water. The two electric air compressors deliver 1,000 cfm at 100 psi. The mine’s electric power is supplied by the Mexican national grid.

Mineralized material is trucked to the Cata processing plant using highway rated trucks with 20 tonne payload.

5.B.10.c Production Summary

The following table reflects a summary of the production at the GMC since 2006.

Year	Tonnes (milled)(1)	Ag (oz)	Au (oz)
2006	86,111	105,480	988
2007	203,968	521,225	3,794
2008	155,079	848,083	5,488
2009	138,517	1,019,751	6,748
2010	144,112	1,019,856	6,619

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 62 

Year Tonnes
(milled)⁽¹⁾ Ag (oz) Au (oz)

2011	169,213	959,490	7,515
2012	174,022	1,004,331	10,350
2013	221,545	1,079,980	15,063
2014	267,812	1,239,009	15,906
2015	309,944	1,708,061	21,126
2016	320,043	1,473,229	21,626
2017	316,810	1,386,964	21,501
2018	301,014	1,096,757	19,073
2019	187,610	590,781	11,588
2020(2)	151,001	520,903	6,779
Total	3,146,801	14,573,903	174,164

Notes:

1. 2006-2015 reported figures reflect tonnes milled, 2016-2020 reported figures reflect tonnes mined which has a small discrepancy to tonnes milled.

2. The operations at the GMC were suspended from April 2, 2020 through June 3, 2020 on account of the directive of the Mexican Federal Government to mitigate the spread of COVID-19.

The Company presents production forecasts for its Mexican operations on a consolidated basis annually. For more information, see the Guidance and Outlook section of the 2020 MD&A.

Readers are cautioned that there are no current estimates of Mineral Reserves for any of the Company’s Mexican mines. The Company made decisions to enter into production at Guanajuato and San Ignacio without having completed final feasibility studies. Accordingly, the Company did not base its production decisions on any feasibility studies of Mineral Reserves demonstrating economic and technical viability of the mines, and anticipates making future production decisions without the benefit of these feasibility studies.

As a result, there may be increased uncertainty and risks of achieving any particular level of recovery of minerals from the Company’s mines or the costs of such recovery. With the exception of Tucano, the Company’s mines do not have established Mineral Reserves and the Company faces higher risks that anticipated rates of production and production costs, such as those provided above, will not be achieved. These risks could have a material adverse impact on the Company’s ability to continue to generate anticipated revenue and cash flow to fund operations from and ultimately achieve or maintain profitable operations.

5.B.11 Recovery Methods

Mineralized material from both Guanajuato and San Ignacio is blended and processed at the Cata processing plant at Guanajuato.

The three-stage crushing plant is designed to produce ball mill feed that is less than 3/8 inch in size. Run-of-mine material is passed through a grizzly, into the 1,000 tonne coarse material bin. Oversize is broken manually or with a backhoe-mounted rock-hammer. The coarse material is approximately minus 18 inch material. From the coarse bin the material is taken by an apron feeder and over a vibrating grizzly to the Pettibone (24 inches by 36 inches) primary jaw crusher. The jaw crusher has a closed setting of four inches. A second 500 tonne capacity coarse material bin is available, complete with a smaller crusher to enable separate handling of material if desired.

The flotation section was greatly improved with the installation of five automated Outotec cells in 2012, which replaced the old sections of rougher cells. The flotation products of these cells are sent, according to their quality, to cleaning cells or recirculated with scavenger products and cleaner tails for regrinding. After the cleaning step, the concentrate is sent to the concentrate thickener section and filtered to remove excess water, leaving final average moisture content of 11%. Final product concentrate is transported by highway trucks to the point of sale according to existing contracts.

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In addition, a small mill for regrinding was installed in April 2012. The middling products (i.e. cleaning cell tails together with the scavenger products) are reground to liberate the valuable sulfides before being recirculated to the head of the flotation circuit.

Over the last eight years, other improvements include: (i) installation of a new electrical substation; (ii) total change of electrical cables; (iii) new tailings pumping system to the tailings dam (fully instrumented); and (iv) the implementation of a single pump station to replace the old system with five pumping stations to reduce electrical consumption.

5.B.12 Infrastructure, Permitting and Compliance Activities

5.B.12.a Overview

The GMC also includes ancillary infrastructure for senior management, technical services, assay laboratory, warehousing, finance, and other administrative services, and are located adjacent to the Cata processing plant. There are other smaller mine buildings located at San Vicente and San Ignacio.

The GMC enjoys proximity to urban development, including power and road infrastructure. Medical facilities are available at a short distance.

5.B.12.b TSF Permitting and Capacity

In February 2016, the Company was advised by the national water authority, CONAGUA, that the Company is required to make applications for permits associated with the occupation and construction of the TSF at the GMC. Subsequently, the Company filed its applications and CONAGUA officials carried out an inspection of the TSF and requested further technical information, which the Company submitted in December 2017. In December 2017, the Company also filed with the Mexican environmental permitting authority, SEMARNAT, an amendment to the environmental impact statement reflecting the proposed normal TSF construction activities.

Approval for the expansion of the TSF at the GMC (lifts 18 and 19) by SEMARNAT has been obtained, subject to also receiving approval by the national water authority, CONAGUA which is pending. In parallel, the Company has completed its review to identify technical alternatives to extend its tailings storage capacity utilizing existing permits and has begun modifying the tailings discharge using cyclones to extend the tailings capacity until June 30, 2021. This will allow more time for receipt of the pending expansion approval from CONAGUA; however, if the expansion approval of the TSF has not been received in a timely manner and prior to June 30, 2021, the Company may need to cease milling operations at the GMC until receipt of the approval from CONAGUA.

The Company believes its existing current tailings footprint can be maintained and can support operations at the GMC until May 2023, subject to receipt of further approvals associated with the expansion of the lifts 18 and 19 of the GMC TSF.

If the permits for expansion of the GMC TSF is not received in a timely manner or conditioned, before June 30, 2021, or it is received but subject to unfavourable conditions, the Company may need to cease milling operations at the GMC until receipt of the CONAGUA expansion approval or the satisfaction of such conditions.

For a discussion of risks associated with the GMC TSF capacity and permitting matters, see Section 8 of the AIF under the heading “Risk Factors – “The Risks Associated with Obtaining and Complying with Tailings and Other Permits”.

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Annual Information Form for the year ended December 31, 2020 64 

5.B.12.c Wastewater Discharge

In June 2016, the Company filed a request for authorization to discharge wastewater in San Ignacio. The authority conducted a technical visit in November 2016. In April 2018, the authority requested additional information, which the Company promptly submitted. In the fourth quarter of 2019, the Company received the authorization to legally discharge wastewater from San Ignacio.

5.B.12.d Voluntary Environmental Audit

In 2016, the Company entered a voluntary environmental audit program in cooperation with PROFEPA, the compliance arm of the SEMARNAT environmental authority. Following the audit, and identification of improvement areas, a mitigation plan was devised to resolve all outstanding improvements over the next few years. This voluntary program was chosen as a proactive measure to correct any deficiencies during which the Company would enjoy a cooperative relationship with the authority, while limiting its exposure to any new citations and penalties.

5.B.13 Exploration and Development

At San Ignacio, exploration efforts will continue in 2021 and include 5,000 m of fill-in surface drilling planned along the Purisima veins south of the development of the San Pedro ramp, deeper in the Purisima/Purisima alto vein system and continue testing for Au-Ag mineralization along 1.1km of Purisima vein north from the old San Ignacio shaft.

At Guanajuato, a concerted effort of sampling and geological mapping in accessible parts of the historical mining areas is near completion and will be followed by a planned 10,000m of underground drilling in 2021 on the most prospective areas, including along the north side of Valenciana, between Valenciana and Cata, and in the Pozos, Promontorio, and Guanajuatito areas.

The consolidated GMC drill programs have a planned expenditure of $2.0 million.

5.C. TOPIA

The scientific and technical information on Topia in this Section 5.C. of the AIF is based on the Topia Technical Report described in Section 1.E. of the AIF. The conclusions, projections and estimates as well as certain other information included in this Section of the AIF are presented in summary form and subject to the qualifications, assumptions and exclusions set out in the Topia Technical Report. Readers are recommended to read the Topia Technical Report in its entirety to fully understand the project. The Topia Technical Report in available on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov).

5.C.1 Topia Mine

Effective February 18, 2004, the Company entered into an option agreement, which granted it the right and option, for a term of one year, to purchase 100% of the ownership rights in and to all the fixed assets, machinery, equipment (including the mill, buildings, offices, houses and quarters for the workers) and Topia Mining Concessions located in the Municipality of Topia, state of Durango, Mexico from Compañía Minera de Canelas y Topia, as optionor, by making cash payments totalling $1.7 million. The Company completed the cash payments on exercise of the option in February 2005. In addition to the payments to the optionor, the Company agreed to assume debt encumbering the property totalling $0.8 million upon signing of the purchase agreement. The debt owing was secured by Topia’s assets. The balance of the debt was repayable out of production from concentrate sales as a 10% NSR royalty. After the debt was repaid, there was no further royalty. The remaining debt balance was fully paid and there are no outstanding conditions to retain title to the property.

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The Company has mineral rights covering the operating mines and associated properties. The Company has surface rights for the land on which the plant sits and agreements for the properties covering the operating mines and tailings facilities.

5.C.2 Project Description, Location and Access

Great Panther holds a 100% interest in Topia through its wholly owned Mexican subsidiary, MMR.

Topia is situated in the Sierra Madre, around the town of Topia, Durango State, Mexico, approximately 235 km northwest of the city of Durango. Ground access is provided via 350 km of paved and gravel road, travelling north from the city of Durango, via Highway 23 to Santiago Papasquiaro, and then west to Topia. Total travel time by road is approximately eight hours. Small aircraft flights from Culiacán and Durango service the town of Topia daily.

The property encompasses 53 contiguous concessions that total approximately 6,686 hectares. The Topia mill and office complex is located at approximately 25° 12’ 54” N latitude and 106° 34’ 20” W longitude.

The Topia area lies within the Sierra Madre Occidental (“SMO”), in a remote region of rugged terrain. Hillsides are quite steep with elevations ranging from 600 masl up to over 2,000 masl.

The climate is generally dry for most of the year, with a wet season from June to September, during which time 200 mm to 500 mm of rain may fall. The annual mean temperature is 17°C, but winters can be cool with frosts and light snow, particularly at higher elevations. Exploration and mining work can be conducted year-round.

Vegetation consists of thickly inter-grown bush, comprising mesquite, prickly pear, nopal and agave, giving way to pine and oak forest at higher elevations.

Land use in the area is predominantly mining, forestry and agriculture.

5.C.3 History

Mining in the region predates European colonization and was first reported in the Topia area in 1538. The first mineral concessions were granted at Topia in the early 1600s.

Production from Topia during the period spanning the latter portion of the 19th century until the Mexican Revolution in 1910 was reportedly between $10 million and $20 million. This is estimated to have been the equivalent of between 15 million and 30 million ounces of silver.

Compañía Minera Peñoles SA (“Peñoles”) acquired the mines in the district in 1944 and completed the construction of a flotation plant in 1951. Peñoles operated at Topia from 1951 to 1990 when the operations were sold to Compañía Minera de Canelas y Topia which carried on operations privately until 1999 when the mine was shut down due to low metal prices. Production for the period 1952 to 1999 totalled 17.6 million ounces of silver and 18,500 ounces of gold.

Following Great Panther’s acquisition of Topia in 2004, Great Panther refurbished and recommissioned the mill during the second half of 2005 and gradually increased the throughput at the plant. At the end of 2005, the mine was put back into production, after having been on care and maintenance for the prior six years. Since 2005, the Company has undertaken the rehabilitation of many of the mines in order to re-access the Argentina, La Dura, Don Benito, El Rosario, San Gregorio, San Miguel, San Jorge, La Prieta, Cantarranas, Animas, Oliva, Las Higueras, San Pablo, Oxi, Oxidada and Recompensa veins and resample parts of the veins as part of a due diligence on sampling carried out by Peñoles. This resampling, combined with the sampling carried out by Peñoles, forms a partial basis for the current Mineral Resource estimate.

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Since 2006, underground exploration and production channel samples have been collected by Great Panther from all stopes and development drifts. This work included new development along the San Gregorio, El Rosario, Cantarranas, Don Benito, Las Higueras, San Pablo, Oxi, Oxidada, La Prieta and Recompensa veins. Exploration diamond drilling programs have targeted the various vein structures.

5.C.4 Geological Setting, Mineralization and Deposit Types

The Topia district lies within the SMO, a north-northwest-trending belt of Cenozoic-age rocks extending from the US border southwards to approximately 21°N latitude. The belt measures roughly 1,200 km long by 200 km to 300 km wide. Rocks within the SMO comprise Eocene to Miocene age flows and tuffs of basaltic to rhyolitic composition with related intrusive bodies. The property is underlain by a km thick package of Cretaceous and Tertiary andesite lavas and pyroclastic rocks which are, in turn, overlain by younger rhyolitic flows and pyroclastics. The volcanic sequence is transected by numerous faults, some of which host the mineralized veins in the district. There are two sets of faults: one striking 320° to 340° and dipping northeast and the other striking 50° to 70° and dipping steeply southeast to vertically. The northeast-trending faults are the principal host structures for precious and base metal mineralization.

The mineral deposits at Topia are adularia-sericite-type, silver-rich, polymetallic epithermal veins. Silver-gold-lead-zinc mineralization is found in fissure-filling veins along sub-parallel faults. Mineralization within the veins consists mainly of massive galena, sphalerite, and tetrahedrite in a gangue of quartz, barite, and calcite. The vein constituents often include adularia and sericite, and the wider fault zones contain significant proportions of clay as both gouge and alteration products.

Ore minerals occur as cavity-filling masses, comprising millimetre-scaled crystals of galena and sphalerite. No definitive metal zoning has been discerned, but the lower parts of the mines are reported to contain higher gold content than at higher elevations.

The veins range in thickness from a few cm to three m. They are very continuous along strike, with the main veins extending more than four km. The Madre vein has been mined for 3.5 km and the Cantarranas vein for 2.4 km. Many of the other veins have been mined intermittently over similar strike lengths. Vertically, the veins grade downward to barren coarse-grained quartz-rich filling and upwards to barren cherty quartz-calcite-barite vein filling. The main host rock is andesite of the Lower Volcanic Series, which is usually competent, making for generally good ground conditions within the mine. In wider sections, with greater clay content and/or zones of structural complexity, ground conditions are less favourable.

5.C.5 Exploration

Exploration work carried out at Topia by Great Panther has comprised diamond drilling, chip sampling, mapping, and underground development. The underground drilling from 2006 to 2014 was focused on short term production and local expansion of the mineralized veins in all mining areas at Topia. Typically, these include interpretation of fault offsets, gaining a better understanding of multiple splays from the primary veins, and a better understanding of grade/width of veins before exploitation. Underground drilling re-commenced in 2018 and is ongoing as of the date of this AIF.

5.C.6 Drilling

Great Panther has been diamond drilling at Topia since 2004. Drill programs were planned and supervised by personnel employed by the Company, its subsidiaries, and/or contractors. The surface drilling programs conducted from 2004 to 2012 and in 2017 were carried out under contract. Underground drill programs were carried out by Topia drillers. Core logging and collar surveys were carried out by Great Panther personnel. All surface holes are NQ-size, although some surface holes were collared as HQ (6.35 cm diameter) and reduced to NQ. Underground drill holes are A size core.

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Core logs, sample intervals, and surveys are entered into a Microsoft SQL database using a proprietary logger. The database is managed and validated by Great Panther mine staff, with the assistance of exploration personnel based in Vancouver.

The core logging and sampling is carried out within a fenced compound at the mill site. Access to the core is restricted to Great Panther employees or contractors. The core shack and sampling facility are adequately equipped and secure. Core recovery in those sections reviewed by the Topia Qualified Person was appropriate, and the sampling was done correctly.

5.C.7 Sampling, Analysis and Data Verification

Sampling comprises both diamond drill and channel samples. Drill holes provide a reliable indication of the vein locations but drifting and raising on vein was required to fully evaluate the quantity and grade of the Mineral Resources.

The channel sampling was conducted either across the back or at waist height across the drift face using a hammer and moil. The protocol for sample lengths was that they were to be no longer than two m. Sample spacing was in the order of 1.5 m to 2.5 m in the more densely sampled areas. The veins tend to be very steeply dipping to vertical, and so these samples are reasonably close to representing the true width of the structure.

The channel samples were processed and assayed at the Topia laboratory. Samples were dried, crushed in two stages, riffle split and pulverized. A sample was taken from the pulp and weighed, while the rest was kept in storage. Samples were analyzed for gold and silver by fire assay and gravimetric finish, or for base metals by atomic absorption.

Diamond drill core samples were marked on the core by geologists. Samples did not cross lithological limits and their lengths were constrained to within a minimum of 10 cm and a maximum of two m. Mineralized structures and the material adjacent to them were always sampled. For sets of veins with less than five m separation, the material between veins was sampled entirely. Samples were taken using a diamond saw to split the core. The samples were prepared at the Topia laboratory.

The total database encompasses three components: diamond drilling, production channel sampling, and the historical development channel sampling completed by the former owner, Peñoles. All three datasets were variably used in the modeling of the various veins and vein splays. Peñoles data in certain mines were minimal.

In the opinion of the Qualified Person at the time, the sampling at Topia was conducted in an appropriate fashion using techniques that are commonly used in the industry. The samples were properly located and oriented and were representative of the mineralization. Assaying is being conducted using conventional methods, in facilities that are properly configured and managed. Performance of the laboratory is being monitored by both internal QA/QC protocols and comparison with an external laboratory.

All phases of the sampling, transport and assaying were carried out under the supervision of Great Panther authorized personnel or authorized contractors. The Topia lab and core handling facility are enclosed within the mill compound, which was constantly supervised and reasonably secure. The sample preparation, analysis, and security procedures at Topia were adequate and consistent with common industry standards.

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Annual Information Form for the year ended December 31, 2020 68 

5.C.8 Mineral Resource Estimates

The estimate of Mineral Resources was last completed for Topia with an effective date of July 31, 2018 (refer to the corresponding Topia Technical Report).

MINERAL RESOURCE ESTIMATE AS OF JULY 31, 2018 - TOPIA

Classification	Tonnes	Grade Ag (g/t)	Grade Au (g/t)	Grade Pb (%)	Grade Zn (%)
Measured	310,600	474	1.36	4.02	4.20
Indicated	165,300	436	1.34	3.57	3.79
Total M&I	475,900	461	1.35	3.87	4.06
Inferred	400,400	434	1.34	2.86	2.97

Notes:

1. Mineral Resources are classified in accordance with the CIM Definition Standards.

2. Area-Specific Bulk Densities as follows: Argentina - 3.06t/m³; 1522 - 3.26t/m3; Durangueno - 3.12t/m³; El Rosario - 3.00t/m3; Hormiguera - 2.56t/m³; La Prieta - 2.85t/m³; Recompensa - 3.30t/m3; Animas - 3.02t/m3; San Miguel - 2.56t/m³.

3. NSR cut-offs include 1522 Mine $193/t, Argentina Mine $172/t, Durangueno Mine $144/t, Recompensa Mine $151/t, Hormiguera Mine $152/t, El Rosario Mine $173/t, La Prieta $235/t, Animas $149/t, and San Miguel $248/t.

4. A minimum mining width of 0.30 m was used.

5. Mineral Resources are estimated using metal prices of: $1,225/oz Au, $15.50/oz Ag, $1.00/lb Pb, and $1.15/lb Zn.

6. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

7. Totals may not agree due to rounding.

The resources were estimated from seven area-specific block models. A set of 52 wireframes representing the mineralized zones (veins) served to constrain both the block models and data subsequently used in Inverse Distance Cubed (ID³) gold, silver, lead and zinc grade interpolations. Each block residing at least partly within one of the 52 wireframes received a grade estimate.

5.C.9 Mineral Reserve Estimates

There are no Mineral Reserve estimates for Topia. Mineral Resources that are not Mineral Reserves have no demonstrated economic viability.

5.C.10 Mining Operations

Topia consists of several mines, which comprise Argentina, 15-22, San Miguel, 9 North, San Juan, Recompensa, Hormiguera, El Rosario, La Prieta, El 80, and Durangueno.

Mining at Topia generally consists of development along very narrow veins. Mining is selective using jacklegs, however, where possible, mechanized cut and fill is deployed. All mines are accessed via adits and ramps, although internal passes are constructed to access the upper and lower ore zones. Rock integrity at the mines at Topia is considered favorable, but on rare occasions roof support, in the form of rock bolting, and occasionally wire mesh, is required.

Mining is conducted by contractors and in-house miners sourced from nearby communities and outside cities, and utilizes equipment owned mostly by the Company. Mine contractors and equipment are alternated between the mines to accommodate the variations in production plans.

For the narrower veins at Topia, mining is conducted by overhand cut and fill stoping with resuing to selectively mine the mineralized material separate from the waste to minimize dilution. Drilling is performed with jackleg drills and mineralized material is hand mucked in the stope and dropped down timber crib muck passes which are developed upwards as the stoping advances. Mineralized material is hand sorted at the face so that only the higher-grade material is removed from the stope. Worker access and ventilation is provided in timber crib man-ways adjacent to the muck passes. The level interval for the stopes is typically 40 m.

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The use of ground support in the small tunnels and narrow stopes is infrequent as the small headings require little support.

From the muck passes the mineralized material is pulled via manual chutes, loaded into small rail cars and hand trammed to a stockpile at the portal. At the surface ore stockpile, the mineralized material may again be hand sorted to remove waste material. The mineralized material is then picked up by front end loader and loaded into highway-style 10 tonnes to 20 tonnes capacity dump trucks to be hauled to the mill.

Along the Argentina and Don Benito veins, in the Argentina and 15-22 Mines respectively, there are significant areas with vein widths ranging from 0.5 to 1.0 m. In these wider areas, mechanized cut and fill mining is applied with resuing to control ore dilution with waste. Mobile equipment used includes small 2 cubic yard LHDs for development and 1 cubic yard and 0.5 cubic yard LHDs for mucking in the stopes. Development access is provided via decline. Ground support consists of rock bolts and mesh as required.

Sublevels are 40 m apart in the mechanized cut and fill areas. Waste is either generated from material beside the vein, which is blasted separately from the mineralized material, or elsewhere from waste development within the mine to remain as backfill.

Lifts in the mechanized cut and fill stope are taken with horizontal holes (breasting) instead of drilling uppers (which is more productive) since it generates a ragged back leading to problems with ground support.

Mineralized material is hauled from the mechanized cut and fill stopes by LHD and then loaded into a truck for haulage to the mill.

5.C.11 Processing and Recovery Operations

The mill employs conventional crushing, grinding, and flotation to produce lead and zinc sulfide concentrates. The operation normally runs seven days a week, 24 hours per day, with a weekly maintenance shift. The conventional wet tailings handling system was transitioned to dry stack by construction of a filtration facility that commenced operation in 2017.

5.C.12 Infrastructure, Permitting and Compliance Activities

5.C.12.a Overview

Topia is a relatively small town of approximately 3,500 people. However, a good portion of the population has worked in mining and there is a good local source of labour. The town is serviced by road, chartered air service, power grid, telephone, and a high-speed microwave communication system. There are restaurants, hostels, and medical services; however, there are no banks or automated banking machines. Great Panther uses a microwave point-to-point service for telephone and internet, and also maintains fixed telephone lines for redundancy. Water is available from numerous springs, streams and adits.

The surface and underground infrastructure at Topia includes the following:

• Extensive underground workings;

• Multiple adits from surface as well as raises, drifts, cross-cuts, sub-levels and ramps;

• Mine ventilation, dewatering and compressed air facilities;

• Conventional and mechanized underground mining equipment;

• Mine, geology, processing and administrative offices;

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• A flotation concentrator with surface bins, crushing facilities, grinding mills, flotation cells and concentrate dewatering circuit;

• A tailings filtration and dry stack storage facility; and

• Connection to the national grid for the supply of electric power.

There are no known environmental liabilities associated with the mineral claims, other than the provision recognized in the Annual Financial Statements for the estimated present value of future reclamation and remediation associated with the future retirement of Topia.

5.C.12.b Topia TSF

All permits are in place for Topia, the latest being the permit issued by SEMARNAT in December 2017 for use of the Phase II TSF for deposition of filtered tailings. Phase II is a dry stack operation using filter cake with an underdrainage system to assist in removing water from Phase I. The deposition includes stacking and compaction of the material.

Phase I of the TSF was closed and contoured during 2018. Based upon recommendations from an independent consulting firm, three additional instrumentation stations in the footprint of the TSF were put in place in 2019 for the purposes of continuous monitoring.

An independent consulting firm will continue to perform an annual review of Phase I, as well as conduct geotechnical reviews and provide design considerations for Phase II.

On March 9, 2020, the Company announced it had temporarily ceased tailings deposition at its Topia Phase II TSF following receipt of a report on the TSF from the independent tailings management and geotechnical consultants engaged by the Company to evaluate the TSF. The report recommended that stacking of tailings of the Phase II area of the TSF be discontinued based on evidence of mass movement underlying Phase I and Phase II of the TSF. Mining and processing activities continued uninterrupted with tailings being deposited at alternative temporary locations until processing activities were halted by the government enforced shutdown due to COVID-19.

During the suspension of non-essential activities due to COVID-19, Great Panther continued monitoring the conditions on Phase II and installed additional geotechnical instrumentation, including several new piezometers and inclinometers, as recognisance work was permitted. In addition, tests were carried out to determine the state of the tailings in Phase I. Extensive work has been carried out to identify and reduce the flow of water into the base of the TSF. The completion of the geological reconnaissance program during the suspension of operations allowed time to implement remedial measures, including the drilling of several dewatering and depressurization wells in and around Phases I and II. Monitoring indicated that it was safe to return stacking in Phase II, which is expected to provide sufficient capacity until the end of 2022. Deposition at Phase II recommenced in August 2020 on the basis of continued positive results of monitoring and an interim stacking plan for Phase II received from a third-party consultant with strict control on sequence and compaction level. The Company has also received the required permit for Phase III, which will be available for use after constructing retaining walls and erosion controls around the base of the facility.

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The Company has implemented precautionary measures to mitigate the risk of movement of the TSF material, including notification and relocation of certain inhabitants who moved back to live below the TSF after having previously been relocated away from the TSF. The company has drilled a series of dewatering wells regionally in the location of Phase I and II and 6 depressurization wells in Phase I, as part of the recommending remediation. The Company also repaired all drainage systems in the regional area by concrete lining and repaired the catchment sumps below Phase II in effort to limit water infiltration into the TSF’s. The final installation of pumps occurred in February 2021. Movement to date and with the return to Phase II deposition has been within in the established Trigger Response Action Plan (“TARP”) parameters. Currently the area is in the “green” category of TARP. Phase III is on top of the old Peñoles TSF and the stacking of filtered tails would also form part of the remediation work required for this TSF. The Company received operation and construction permit from SEMARNAT in the third quarter of 2020. Remediation work including foundation and drainage control will proceed in Q1, 2021 and be completed by July 2021. Phase II and Phase III TSFs have combined dry stacking capacity for several years. There is no assurance that there will not be further movement underlying Phase I and Phase II of the TSF or that the continued remediating and monitoring techniques will be effective. For a discussion of risks associated with the Topia TSF, see Section 8 of this AIF under the headings “Risk Factors - Mining and Mineral Exploration Have Substantial Operational Risks” and “Risk Factors - Risks Associated with Continued use of Topia Tailings and Expansion”.

5.C.12.c Voluntary Environmental Audit

Reviews by the regulatory authorities dating back to 2015, coupled with permitting work undertaken by the Company in connection with the expansion of the Topia TSF, have led to a broader review by the PROFEPA and by the Company of the permitting status for all of Topia operations, environmental compliance (including the historical tailings dating back to periods prior to Great Panther’s ownership) and a clarification of land titles. Devised as a cooperative management strategy, Topia was accepted into a voluntary environmental audit program supported by PROFEPA which commenced during the second quarter of 2017. The Company is working on a compliance program authorized by PROFEPA to address the audit findings. This compliance program includes remediation, and technical reviews as defined by the audit. Progress updates will be submitted to PROFEPA for further review. The Company anticipates that it will be able to achieve full compliance.

5.C.13 Production

5.C.13.a Production

The Company has established a LOM estimate for Topia of 3.0 years as at December 31, 2020 for the purposes of amortizing the mineral, properties, plant and equipment. This LOM estimate does not take into account any additional Mineral Resources which may be discovered through recent and future exploration drilling. The Company re-evaluates its LOM estimate on an annual basis. The Company will commence reclamation and remediation at Topia shortly before the end of its mine life and carries a provision of $6.6 million to cover these costs. The estimate of asset retirement costs is calculated using current cost estimates which are then inflated to the future expected cash flow and then discounted to a current value using a risk-free rate of interest consistent with the expected cash flow timing, all as more particularly described in the Audited Financial Statements.

The provision is based on a closure cost estimate discounted to present value. If no further Mineral Resources are defined, reclamation and remediation at Topia are anticipated to commence in 2024 and continue through to 2047. However, the timing and amount of reclamation and remediation is subject to future changes in the LOM estimate. For example, the addition of Mineral Resources through recent and future exploration drilling could extend the LOM estimate.

For the year ended December 31, 2020, 1.1 million Ag eq oz were produced at Topia.

Readers are cautioned that there are no current estimates of Mineral Reserves for any of the Company’s Mexican mines. The Company made decisions to enter into production at Topia without having completed final feasibility studies. Accordingly, the Company did not base its production decisions on any feasibility studies of Mineral Reserves demonstrating economic and technical viability of the mines, and anticipates making future production decisions without the benefit of these feasibility studies.

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As a result, there may be increased uncertainty and risks of achieving any particular level of recovery of minerals from the Company’s mines or the costs of such recovery. With the exception of Tucano, the Company’s mines do not have established Mineral Reserves and the Company faces higher risks that anticipated rates of production and production costs, such as those provided above, will not be achieved. These risks could have a material adverse impact on the Company’s ability to continue to generate anticipated revenue and cash flow to fund operations from and ultimately achieve or maintain profitable operations.

Below is a summary of the historical production of Topia.

Production – Topia Mine

Year	Tonnage (Tonnes)1	Silver  (Oz)	Gold  (Oz)	Lead  (Tonnes)	Zinc  (Tonnes)
2006	22,445	208,004	406	627	742
2007	33,605	279,441	643	735	847
2008	35,318	366,199	812	876	1,074
2009	30,045	437,079	403	871	1,057
2010	38,281	515,101	597	1,092	1,358
2011	46,968	535,881	500	941	1,315
2012	56,098	555,710	573	962	1,477
2013	62,063	631,235	651	1,116	1,673
2014	67,387	667,636	555	1,154	1,675
2015	65,387	677,967	614	1,198	1,850
2016	55,836	574,031	612	1,033	1,496
2017	53,745	595,721	999	1,291	1,757
2018	73,605	761,107	1,087	1,958	2,361
2019	79,257	938,581	1,344	1,960	2,576
2020	57,391	597,194	835	1,233	1,714
Total	777,431	8,340,887	10,631	17,047	22,972

Note: 

1. Includes purchased ore tonnes milled. Excludes custom milled tonnes.

The Company presents production forecasts for its Mexican operations on a consolidated basis annually. For more information, see the Guidance and Outlook section of the 2020 MD&A.

5.C.14 Exploration and Development

Development plans for Topia during 2021 are limited to ongoing underground mine development and exploration drilling in the normal course of operations. The Company plans to spend $1.0 million in 2021 on a surface drilling program of 5,000 m focused on defining new Mineral Resources in six areas along the strike and down-dip extents of present mining efforts.

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6. ADVANCED-STAGE PROJECTS

6.A. CORICANCHA

6.A.1 Coricancha

Coricancha is a polymetallic mine that includes a 600 tonne per day flotation and gold BIOX® bio-leach plant along with supporting mining infrastructure. Coricancha has been on care and maintenance since August 2013 when it was closed due to falling commodity prices. The Coricancha property comprises more than 3,700 hectares in the prolific Central Polymetallic Belt and production at the mine dates to 1906. Gold-silver-lead-zinc-copper mineralization (approximately 80% gold-silver by value) occurs as massive sulphide veins that have been mined underground by cut and fill methods.

The Company’s Peruvian subsidiary, Great Panther Silver Peru S.A.C. (“GP Peru”), completed the acquisition (the “Coricancha Acquisition”) of all of the issued and outstanding shares of Nyrstar Coricancha S.A. from Nyrstar International B.V. and Nyrstar Netherlands (Holdings) B.V., as sellers (together “Nyrstar”) on June 30, 2017 (the “Completion”). Nyrstar Coricancha S.A. was the 100% owner of Coricancha, gold-silver-lead-zinc-copper mine and mill complex in Peru at Completion.

The Coricancha Acquisition was completed pursuant to a Share Purchase Agreement originally dated December 19, 2016, among the Company, GP Peru, Nyrstar, and Nyrstar Coricancha SA (the “Original SPA”). The Original SPA was amended and restated on June 9, 2017 (the “Amended and Restated SPA”) and further amended by agreement dated June 28, 2017 (the “Second Amendment Agreement”) and further subsequently amended pursuant to an amending letter agreement dated June 27, 2020 (the “Amending Agreement” and collectively, with the Original SPA, the Amended and Restated SPA and the Second Amendment herein referred to as the “SPA”).

The legal name of Nyrstar Coricancha S.A. was changed to Great Panther Coricancha S.A. (“GP Coricancha”) after to the Coricancha Acquisition. In this AIF, Nyrstar Coricancha S.A. is also referred to as GP Coricancha.

6.A.1.a The SPA

The parties entered into the Amended and Restated SPA in order to incorporate certain amendments to facilitate the reorganization of Nyrstar’s investments in Peru in connection with its planned divestitures. The amendments in the Amended and Restated SPA did not materially impact the terms of the acquisition under the Original SPA. The parties entered into the Second Amendment Agreement in order to defer payment of the initial $0.1 million portion (the “Completion Price”) of the Purchase Price (defined in 6.A.1.c below) from Completion to a date no later than five business days following the receipt of a final cost certificate from the Peruvian tax authority that related to the cost base of Nyrstar’s shares in GP Coricancha. The Second Amendment Agreement also included corresponding agreements relating to certain tax matters. The Amending Agreement was concluded to amend and restate the Mine Closure Agreement (defined and described below) and to make certain agreements with respect to the Cancha tailings reclamation obligation and extend a right of Nyrstar to purchase Coricancha tendered concentrates for two- and one-half-year period following the initial five-year period from Completion, subject to certain rights of first offer in favour of Samsung.

A copy of the Original SPA was filed on SEDAR on January 13, 2017. A copy of each of the Amended and Restated Share Purchase Agreement and the First Amendment Agreement were filed on SEDAR on July 10, 2017. A copy of the Amending Agreement and the Amended and Restated Mine Closure Agreement (which is a schedule to the Amending Agreement) are being filed concurrently with this AIF. Readers are advised to refer to the filed agreements for a complete description of the terms of the Acquisition. The forms of the Mine Closure Agreement, Earn-Out Agreement and Nyrstar Parent Guarantee, each as discussed below, are each included as exhibits to the Original SPA and Amended and Restated SPA. The summary of material terms of each of the agreements provided in this AIF is qualified by reference to the entirety of the SPA.

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Reference to the “Amending Agreements” shall be to the Letter Agreement and the Amended and Restated Mine Closure Agreement. Reference to the Coricancha Agreements shall be to each of the acquisition agreements, as amended from time to time including, collectively, the Original SPA, the Amended and Restated SPA, the Second Amendment, the Mine Closure Agreement, the Earn-Out Agreement, the Nyrstar Parent Guarantee, the Letter Agreement and the Amended and Restated Mine Closure Agreement.

Capitalized terms used in the discussion below that are not defined have the meaning prescribed to them in the SPA and related exhibits.

6.A.1.b Closing of the Coricancha Acquisition

The Coricancha Acquisition was completed by Nyrstar transferring all of the issued and outstanding shares of Nyrstar Coricancha S.A. to GP Peru. Concurrently, the following agreements were executed in accordance with the SPA and came into effect on Completion:

• An earn-out agreement between the Company, GP Peru, Nyrstar, and Nyrstar Coricancha S.A., in the form attached to the SPA (the “Earn-Out Agreement”);

• A mine closure agreement between Nyrstar and Nyrstar Coricancha S.A., in the form attached to the SPA (the “Mine Closure Agreement”); and

• A guarantee of Nyrstar NV, the ultimate parent of Nyrstar, in favour of GP Peru and the Company, in the form attached to the SPA (the “Nyrstar Parent Guarantee”).

Nyrstar and the Company also executed a transition services agreement on closing in order to facilitate the transition of management and ownership of Nyrstar Coricancha S.A. to the Company and GP Peru. The transition services agreement was in effect for several months following Completion.

6.A.1.c Acquisition Consideration

Under the terms of the SPA, GP Peru acquired Nyrstar Coricancha SA from Nyrstar for a purchase price (the “Purchase Price”) comprising:

• the Completion Price of $0.1 million, which was paid subsequent to Completion in September 2017; and

• up to $10.0 million in earn-out consideration to be paid under the Earn-Out Agreement, as described further below.

6.A.1.d Earn-Out Agreement

Under the Earn-Out Agreement, GP Coricancha will pay Earn-Out Consideration to Nyrstar that will equal 15% of the free cash flow generated by Coricancha during the five-year period after which Coricancha is cumulative free cash flow positive from completion, to a maximum of $10.0 million. Specific material terms of the Earn-Out Agreement include the following:

• the Earn-Out Consideration will be determined as being equal to 15% of the Free Cash Flow of the Company during the Earn-Out Period, calculated and paid at the end of each relevant fiscal year of the Company during the Earn-Out Period;

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• Free Cash Flow will be determined as the net income or loss of Coricancha, with adjustment for certain amounts specified in the Earn-Out Agreement related to depreciation and amortization, non-cash expenses and losses, deferred income tax and sustaining capital expenditures, each as determined in accordance with IFRS;

• the Earn-Out Period will begin on the Trigger Date (as defined below) and will expire on the earlier of:

• the date that is five years from the Trigger Date; and

• the date on which the Cumulative Free Cash Flow generated from Coricancha since the Trigger Date has equaled an amount such that the Earn-Out Consideration to be paid by the Company to Nyrstar under the Earn-Out Agreement will equal $10.0 million;

• the Trigger Date will be the date on which the aggregate cumulative Free Cash Flow generated by Coricancha from the Date of Commencement of Commercial Production has equaled or exceeded the amount of the Start-Up Expenditures, as defined in the Earn-Out Agreement, incurred by the Company from the date of Completion of the Acquisition to the Date of Commencement of Commercial Production; and

• the Date of Commencement of Commercial Production will be the date after Completion which is the first day of the first three-month period (whether calendar months or otherwise) during which period the average rate of production at Coricancha is at least 400 tonnes per day (with production calculated on the basis of mined material processed through the plant).

The Company will guarantee to Nyrstar the payment by GP Coricancha of the Earn-Out Consideration under the Earn-Out Agreement. To date, no consideration has been paid under the terms of the Earn-Out Agreement.

6.A.1.e Reclamation Agreements

The SPA includes agreements between the Company, GP Peru, GP Coricancha and Nyrstar regarding legacy environmental matters relating to Coricancha. These agreements became effective on Completion and relate to the reclamation of tailings facilities at Coricancha and the funding of the corresponding reclamation costs. These terms include the following material provisions:

• GP Peru will cause GP Coricancha to reclaim the Cancha 1 and Cancha 2 TSF (being part of Coricancha), in accordance with the mine closure plan approved by MEM (the “Cancha Tailings Reclamation Plan”);

• GP Peru will cause GP Coricancha to reclaim the Triana TSF (being part of Coricancha), in accordance with the mine tailings abandonment plan approved by MEM (the “Triana Reclamation Plan”);

• Nyrstar will fund the payment of the Reclamation Costs associated with undertaking the reclamation work required to complete the Cancha Tailings Reclamation Plan and the Triana Reclamation Plan, to a maximum of $20 million; and

• Nyrstar will advance funds to GP Coricancha to fund the Reclamation Costs on a quarterly basis in accordance with agreed upon mechanics set forth in the SPA.

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In addition, Nyrstar has agreed to settle all outstanding fines or sanctions relating to Coricancha, to a maximum of $4.0 million (subject to certain exclusions to which the maximum will not apply).

To date, the Company has completed some of the reclamation work under the Cancha Tailings Reclamation Plan and the Triana Reclamation Plan, and Nyrstar has funded these works in accordance with the SPA.

The Amending Agreements provide that GP Coricancha will use commercially reasonable efforts to seek an amendment to a closure plan for certain legacy tailings facilities that Nyrstar is obligated to fund. The objective of the amendment is to seek a technically superior closure plan for approval by the MEM with potentially lower costs. Further, the Amending Agreements provide that GP Coricancha will defer movement of the Cancha tailings in accordance with the Coricancha Mine Closure Plan, as it may be amended from time to time by the Company, until the earlier of June 30, 2022 or such date as the Company provides notice to Nyrstar of its determination to permanently close Coricancha under the Mine Closure Agreement, as amended, subject to compliance by the Company with Applicable Law and with any direction or order of any Governmental Body that may apply to their reclamation and provided that such deferral will not result in any fines, penalties or other sanctions being imposed on the Company. For a discussion of recent updates in this area, see Section 3B.2 of this AIF under the heading “Developments Subsequent to the Year Ended December 31, 2020”.

6.A.1.f Mine Closure Agreement

The Mine Closure Agreement relates to the mine closure bond required to be maintained by GP Coricancha for Coricancha (the “Mine Closure Bond”) in order to comply with the mine closure bond requirements imposed by MEM. Under the Mine Closure Agreement, Nyrstar agreed to maintain the required Mine Closure Bond up to an amount of $9.7 million for a three-year period following Completion (the “Mine Closure Period”) which period concluded on June 30, 2020.

Under the Amending Agreements, Nyrstar agreed to extend its requirement to continue to post a mine closure bond as security for closure costs at Coricancha beyond the original June 30, 2020 expiry date. The Amending Agreements provide that Nyrstar will maintain a $7.0 million bond until June 30, 2021 and $6.5 million for the following year (as in effect at the relevant time, the “Closing Contribution”), effectively deferring Great Panther’s funding requirements for these amounts until June 30, 2022. Great Panther has provided 80% collateral in the form of a deposit to cover the additional $2.7 million bond requirement as of June 30, 2020. In June 2017, the bond closure amount required by the MEM was increased by $1.2 million, which Great Panther funded. The total bond amount required by the MEM was $10.9 million as of June 30, 2020 and remains unchanged as of the date of this AIF.

GP Coricancha will be responsible for any portion of the Mine Closure Bond required by MEM that is in excess of Nyrstar’s required bond. In accordance with these obligations, Nyrstar is responsible, at its expense, for providing security for the initial Closing Contribution of the Mine Closure Bond and GP Coricancha is responsible, at its expense, for providing security for any excess amount.

In the event that GP Coricancha makes a final, irrevocable decision to permanently close Coricancha during the Mine Closure Period (expiry date June 30, 2022), the following will apply:

• Nyrstar will pay to GP Coricancha the amount of Closing Contribution in full and final release of its obligations under the Mine Closure Bond;

• GP Coricancha will take all steps necessary to establish a new Mine Closure Bond in the amount of Closing Contribution;

• Nyrstar will terminate its original Mine Closure Bond in the amount of Closing Contribution;

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• GP Coricancha will proceed with the mine closure plan for Coricancha secured by the Closing Contribution paid to Coricancha by Nyrstar;

• if the costs of closing Coricancha are less than the Closing Contribution paid by Nyrstar, GP Coricancha will return to Nyrstar the difference; and

• if the costs of closing Coricancha are greater than the Closing Contribution paid by Nyrstar, Coricancha will be responsible for any excess closure costs.

In the event that GP Coricancha does not make a final, irrevocable decision to permanently close Coricancha during the Mine Closure Period, GP Coricancha will make arrangements for the release of the obligations of Nyrstar under its portion of the Mine Closure Bond, which arrangements will be in effect upon expiry of the Mine Closure Period, and GP Coricancha will be required to post the full amount of the required amount of the remediation bond with Peruvian government authorities. Nyrstar will then have no further responsibility or liability in connection with the Mine Closure Bond. Nyrstar will however, retain obligation to fund the payment of the Reclamation Costs associated with undertaking the reclamation work required to complete the Cancha Tailings Reclamation Plan and the Triana Reclamation Plan, to a maximum of $20 million.

In addition, Great Panther has agreed to pay interest on the bond amounts Nyrstar has agreed to continue to fund at an annual rate of 3-month USD LIBOR plus 5%, and to defer any relocation of the legacy tailings until an agreement on a modified closure plan is achieved or there is a legal requirement to move the tailings. The Amending Agreements also provide Nyrstar with certain offer rights for Coricancha concentrates, which are secondary to those of a third party.

6.A.1.g Parent Company Guarantee of Nyrstar NV

Trafigura Group Pte. Ltd. (“Trafigura”) acquired the operating businesses and assets of Nyrstar NV in a restructuring of Nyrstar NV completed effective July 31, 2019. Trafigura completed this acquisition through its 98% ownership of NN2 Newco Limited (“NN2”) as the new parent entity to the Nyrstar entities. In order to reflect the restructuring, NN2 assumed the Parent Company Guarantee, as guarantor, with effect as of July 31, 2019 and Nyrstar NV was released as guarantor. Under the Nyrstar Parent Guarantee, NN2 has guaranteed to the Company, GP Peru and GP Coricancha, as beneficiaries, the punctual payment and performance by Nyrstar of the obligations of Nyrstar under:

• Clause 2 of the Mine Closure Agreement relating to the obligations of Nyrstar to post the Mine Closure Bond and advance the Closure Contribution, in each case to a maximum of $7 million (before June 30, 2021) or $6.5 million (from July 1, 2021 to June 30, 2022);

• Clause 5(h) of the SPA relating to tax indemnification matters; and

• Clause 6 of the SPA relating to the obligations of Nyrstar to fund the Reclamation Costs for Coricancha.

The obligations of NN2 are limited to the following maximum guaranteed amounts:

• $7 million (before June 30, 2021) or $6.5 million (from July 1, 2021 to June 30, 2022) with respect to the guaranteed obligations under clause 2 of the Mine Closure Agreement; and

• $20.0 million with respect to the guaranteed obligations under clause 6 of the SPA relating to Reclamation Costs, of which $1.8 million has been reimbursed to Great Panther by Nyrstar.

The guaranteed obligations with respect to the tax indemnification under clause 5(h) of the SPA will not be subject to the foregoing maximum guaranteed amounts and will be subject to the indemnification provisions of the SPA with respect to these obligations.

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6.A.2 Current Technical Report

The scientific and technical information on Coricancha in Sections 6.A.2 through 6.A.12 of the AIF are based on the Coricancha Technical Report. The conclusions, projections and estimates as well as certain other information included in this Section of the AIF are presented in summary form and subject to the qualifications, assumptions and exclusions set out in the Coricancha Technical Report. Readers are recommended to read the Coricancha Technical Report in its entirety to fully understand the project. The Coricancha Technical Report in available on SEDAR (www.sedar.com) or on EDGAR (www.sec.gov).

6.A.3 Project Description, Location and Access

Coricancha is located in the central Andes of Perú in the District of San Mateo, Huarochirí Province, Department of Lima. The mine has been on care and maintenance since August 2013.

The plant and main site office are located adjacent to the Central Highway, 90km east of the city of Lima, next to the Rímac River in an area known as Tamboraque, and adjacent to the confluence of the Rímac River and its tributary, the Aruri River. The plant is located at 3,000 masl, and the mine accesses are located between 3,140 masl and 3,980 masl.

The mine includes 127 mining concessions, one mining transport concession, and one processing concession. All mining concessions are for metallic substances.

By agreement entered into with Biomin Technologies SA (“Biomin”, now owned by Outotec) dated February 5, 1995, Coricancha was granted the right to use BIOX^® technology. There are no other agreements or encumbrances known that would affect the current mine.

A 1% NSR royalty in favour of Global Resource Fund is payable on production from most of the mining licences, and a royalty of $1/ounce exists for gold processed using BIOX^® technology.

Legacy tailings are stored at Cancha 1 and 2¹ at the Coricancha site – Tamboraque, and at Chinchan Tailings Storage – Phase I.

The property is subject to the following environmental liabilities:

• Coricancha has an approved mining closure plan for mining and processing components, including tailings storage areas Cancha 1 and 2. The closure plan was updated three times to: (i) include Chinchan Tailing Storages Phase I and II; (ii) modify the tailings removal of Cancha 1 and 2 and transfer to Chinchan Tailings Storage; and (iii) modify the waste rock dump closure schedule. Coricancha, in the third Closure Plan Amendment (2014), has assumed a total commitment of $10.9 million of closure warranty on behalf of MEM. A process is underway to modify the closure plan as it relates to the handling of some of the remaining tailings. This is described above in more detail and in Section 3.B.2 of this AIF.

• Coricancha has declared 14 surface waste rock storage sites in its 2010 mining closure plan. Four of them have been reported to have mineralization of potential economic interest. There are an additional four waste dumps that are considered marginal in that the recovered metal content does not cover processing costs, but dealing with them in the plant is cheaper than storage and treatment on surface. In addition, there are six waste dumps that do not have potential for processing, total remaining waste is 150,000t. Nevertheless, the 1996 Estudio Impacto Ambiental declared that all waste rock from mine activities would be stored in the underground mine upon final closure. The Company is reviewing alternate solutions to address this issue. As an alternative, the Company is considering relocating the 150,000t of waste onto Huamuyo alto dump instead of storing them underground.

¹ Cancha 1 and 2 may also have been referred to as Deposito 1 and 2 in past disclosures regarding Coricancha by other owners.

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• Other closure liabilities including the plant, roads, infrastructure, legacy waste dumps and tailings storage, mine openings, and mine water management exist. Some of these require further definition and permitting updates.

The estimated present value of reclamation and remediation costs associated with the future retirement of Coricancha is recognized as a provision on the Company’s Statement of Financial Position. This value comprises the provision associated with the mine, the plant, and tailings storage facilities of Coricancha. The cost of removal of Cancha 1 & 2 tailings to store at Chinchan and to restore Triana is the responsibility of Nyrstar to a maximum of $20 million (remaining funds are $18.2 million). Separately, the Company plans to develop alternatives to propose to MEM to allow for the full reclamation while preserving the stability of the surrounding areas.

A number of permits are in place. The following permits would be necessary if the Company decides to advance Coricancha into production:

• The Chinchan TSFs have limited capacity. The Company must develop a balance between the actual allowed and available capacity of Chinchan Phase I and Chinchan Phase II TSFs and the amount of tailings that must be transferred from Cancha 1 and 2, including any future tailings generated from future mining/processing.

• Any exploration activities require an Environmental Certificate. The Company can request an environmental impact declaration, or Declaracion Impacto Ambiental (“DIA”) or Estudio Impacto Ambiental semi detailed (“EIA-sd”) depending on the extent of work and the potential environmental impact. A DIA could be approved in seven working days, if the permits are for 20 sites or less and if no archeological site is encountered, while an EIA-sd can take an additional 55 working days.

• A future mining plan would likely require new waste dump facilities, which themselves would need to be permitted some time during the life of the operations. These details are presently under study.

6.A.4 History

Coricancha is part of the Viso-Aruri mining district located in the San Mateo District, Department of Lima, Province of Huarochirí, in the central Andes of Peru. Coricancha has been exploited almost continuously since the colonial times. The historical Coricancha mine production for the 60 years prior to 1996 is reported to have ranged from 2,600 to 5,000 tonnes per month.

In late 1995, Coricancha underwent a considerable expansion of process plant capacity from 200 tpd to 600 tpd and the installation of a modern BIOX® plant. After completion of the expansion in 1997, the reported monthly production increased slightly over historic levels, but was not sustainable. The mine was shut down in September 2000 as the owner of Coricancha for the past 45 years, Minera Lizandro Proaño, was forced into bankruptcy due to low metal prices, labour shortages, and operational difficulties in the mine and concentrator.

At the beginning of 2001, Wiese Sudameris Leasing SA, a Peruvian bank which was the major secured creditor, took control of the assets and properties from the bankrupt Minera Lizandro Proaño. Later that year, it entered into an agreement with Peruvian contractor Larizbeascoa & Zapata SAC, to redesign the Coricancha operation.

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After the mine reopened in 2002, the monthly production tonnage increased dramatically to 12,500 tpm. The monthly production then decreased to just over 8,000 tpm during the seven months of operation before being shut down in October 2002 by the government due to environmental issues associated with the Mayoc TSF. In November 2002, the Coricancha mine and mill were shut down and put-on care and maintenance. A water treatment plant to neutralize the mine water has been in continuous operation.

Gold Hawk Resources Inc., acquired Coricancha in early 2007 and commenced development work, then restarted operations in June of 2007 at a production rate of 600 tpd until operations were suspended again in May of 2008 due to surface ground movement observed on the natural hillside above the nearby TSF.

Nyrstar acquired Coricancha in November 2009, and recommenced operations in late 2010 following construction of a new TSF at the Chinchan location and the addition of a copper circuit. Operations at the plant were temporarily reduced to 30% of capacity in the first half of 2011, due to an increased moisture level and compaction problem at the newly commissioned Chinchan TSF resulting from heavy rainfall. During 2012, milling operations temporarily ceased due to concerns about the storage and planned movement of legacy tailings to the new Chinchan facility. At the end of 2012, as part of cost cutting measures, Nyrstar ceased mining mineralized material from Coricancha’s underground deposits and focused on treating historical tailings before moving the waste material to the tailings pond. In August 2013, operations were halted due to the sustained lower precious metal prices, and Coricancha was placed on care and maintenance.

Exploration by the previous owners was very limited and focused on underground drifting and raising on vein structures. A limited, short-hole diamond drilling program was conducted in 2002.

The first formal documented exploration program was conducted by Nyrstar in 2010 and consisted of field mapping, ground magnetic and induced polarization surveys and diamond drilling.

There have been seven independent Mineral Resource and Mineral Reserve estimates prepared for the Coricancha property since 1995. Previous resource estimates (2007, 2009, 2011, and 2013) were prepared using industry standard best practices for exploration and Mineral Resource estimation (i.e., CIM 2003 and CIM Definition Standards) and reported in accordance with internationally recognized guidelines for disclosure of Mineral Resources and Mineral Reserves (i.e., NI 43-101, or JORC). All previous estimates are considered as historical.

6.A.5 Geological Setting, Mineralization and Deposit Types

The regional geology of the Viso-Aruri mining district comprises a package of andesitic volcanic rocks and local basal sedimentary units intruded by monzonite stocks. The Jumasha Formation is found at the base of the Viso-Aruri volcanic sequence and is characterized by tightly folded beds of grey limestone. The limestone outcrops in the Rímac River valley, near the town of San Miguel de Viso.

The approximately 1,500 m thick Rímac Formation overlies the Jumasha limestones and consists of Tertiary-age andesitic volcanics, characterized by alternating layers of massive and porphyritic, grey to greenish-grey-purple andesite. The volcanic beds are approximately 10 m to 40 m thick and are roughly sub-horizontal, dipping slightly to the SW at 15°.

There are two occurrences of intrusive rocks in the area which are thought to have been the source of the polymetallic mineralization, although this has not been confirmed. The first is a small, altered, intrusive stock that has been mapped near the village of Viso on the south side of the mountain (Coricancha is on the north side). The other occurrence consists of the NE-NNE trending, sub-vertical intrusive dikes cutting the volcanic rocks.

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The area has been exposed to tremendous structural compression, which has produced a strong regional scale fracturing pattern and allowed the emplacement of the polymetallic mineralization within quartz (Qtz) sulphide veins as fracture filling. Some of the identified features include the NW-SE Pariachaca-Matucana fault, the NS and NNE trending San Pablo and Huamuyo faults, and the NNE-SSE mineralized fracture zones.

The Coricancha property is almost entirely underlain by the Rímac Formation andesitic volcanics. The base of the sequence consists of brecciated volcanics overlain by andesitic flows, agglomerate and tuff towards the top of the Cerro Huamanjune at approximately 4,500 masl elevation.

Mineralization at Coricancha is that of an anastomosing polymetallic quartz vein system where most of the secondary and tertiary veins branch off either from the main vein or the secondary veins, respectively. The overall system trends towards the NE at approximately 15°, and the veins are primarily sub-vertical to steeply NW dipping. It is thought that the anastomosed vein system is part of a larger tectonic shear zone with associated secondary and tertiary tensional veins.

The three main veins on the Coricancha property include the Wellington, Constancia, and Animas veins. These veins define three structurally dislocated blocks from which a series of secondary and tertiary tensional veins split off. The veins are extensive and are known to extend over 4 km along strike and more than 1.5 km down dip.

Typically, the veins show Qtz-clay-pyrite argillic alteration, which extends up to 2.0 m into the footwall and hanging wall of the veins. The alteration does not contain any significant economic mineralization of note.

Coricancha is a polymetallic hydrothermal, brittle low sulphidation deposit hosted in the andesitic rocks of the Rímac Formation. The veins exhibit pinch-swell type behavior typical of hydrothermal systems found within compressional and extensional structural environments. Vein widths reach upwards of 2.0 m, with a mean width of approximately 0.6 m. The veins are known to split into two or more branches separated by waste rock materials.

The mineralization observed at Coricancha typically comprises the following: Pyrite (iron sulphide); Sphalerite (Zn sulphide); Galena (Pb sulphide); Chalcopyrite (Cu-Fe sulphide); Arsenopyrite (Fe-arsenic sulphide); Tennantite (Cu-As sulfosalt); Tetrahedrite (Cu-Fe-Zn-Ag antimony sulfosalt); Native Au; Native Ag; and Quartz.

6.A.6 Exploration

Prior to Nyrstar’s acquisition of Coricancha, exploration was primarily conducted by mining of veins, horizontal tunnels, and vertical raises, but no systematic formal exploration activities were completed. The first formal documented exploration program was conducted by Nyrstar in 2010 and consisted of field mapping, ground magnetic and induced polarization (“IP”) surveys and diamond drilling.

6.A.7 Drilling

Prior to 2010 and Nyrstar’s acquisition of Coricancha, no systematic drilling was performed on-site. However, some historical drilling was completed, primarily as short holes. Unfortunately, limited or no records exist related to this drilling. None of the pre-2010 drilling has been included in the geological database or geological model due to the lack of information and inability to confirm this data.

Since 2010, several drilling programs have been completed with the primary focus of verifying the lateral and depth continuity of the main veins including, Wellington, Constancia, Animas and Colquipallana. Nyrstar conducted three independent drilling campaigns in 2010, 2011 and 2013. Drilling programs were also completed in 2015 and 2016 in conjunction with Great Panther. From 2010 to 2016, a total of 83 diamond drill holes, totaling 28,197 m of NQ sized core (47.6 mm core diameter) have been drilled within the Coricancha property boundaries. Drill holes were either drilled from surface or underground depending on the target and accessibility.

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Annual Information Form for the year ended December 31, 2020 82 

The results of the drilling programs at Coricancha verify the continuity of the vein system, both laterally and at-depth. The mineralization is shown to extend beyond the previously known limits and has opened up the targets both along strike and at depth.

6.A.8 Sampling, Analysis and Data Verification

The Coricancha core facility is a secure (gated and guarded) facility, with staff and security onsite. The core logging area was arranged to provide areas for logging, core splitting and sampling. Core is stored on covered core racks whilst awaiting logging and sampling; once sampled, the remaining unsampled core was carefully reorganized in the core box and the lids were returned to the boxes before they were transported to the secure core storage facility.

Drill core sampling is conducted in such a manner to ensure that all mineralized intervals are captured and sent to the lab for analysis. Sample intervals are defined such that they do not cross lithological boundaries, with a minimum sample length of 0.35 m and a maximum sample length of 1.5 m.

Core cutting and sample packaging was performed by the Company’s core technicians under the supervision of its geologists. The sealed plastic sample bags were placed in large neoprene rice bags, sealed using zip ties, and labelled clearly to identify the final shipping destination. The full rice bags were stored in a secured and closed room within the core logging facility until a shipment batch was ready for transport. Only designated personnel have access to the storage room. Only employees of the geology area are involved with the sample preparation and sample delivery at the laboratory.

Nyrstar and Great Panther implemented a comprehensive analytical QA/QC program for the drilling and sampling programs, which included the insertion of blind certified reference material (CRM) standards, duplicates, and blanks to evaluate analytical precision, accuracy and potential contamination during the sample preparation and analytical process.

Underground chip samples (channel) are collected for grade control and for Mineral Resource estimation purposes. The sample length is defined according to the lithological breaks and vein continuity. Samples are collected from a 5 cm deep by 20 cm wide channel cut perpendicular to the vein direction. The material is typically chipped out of the channel in small fragments and collected into a maximum 2 kilogram (kg) sample. To ensure representative grade continuity, samples are collected at a distance interval of every 10 m along the target vein.

Each 2 kg sample is sealed in a plastic sample bag with a sample tag and the number recorded in indelible ink on the outside of the bag. Sample bags are placed in rice bags and sealed with zip ties. QA/QC samples were inserted at prescribed intervals into the sample sequence and included with the sample shipment.

For both core and channel samples, a sample shipment form is prepared for each sample batch prior to shipping to SGS in Lima, detailing the included sample numbers per batch. At the laboratory, the sample list is verified against the received samples to confirm the shipment.

During the 2010 and 2011 drilling programs, Nyrstar sent samples to ALS and to SGS in Callao (Lima). As of 2013, all samples were sent to the SGS laboratory in Lima. The SGS laboratory is internationally accredited to ISO/IEC 17025 standard.

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Annual Information Form for the year ended December 31, 2020 83 

The data from drilling, logging and surface/underground sampling programs were reviewed and interpreted independently by Great Panther’s senior geologist and by the Golder Qualified Person. Drill hole lithology and assay data was used to confirm the target intercepts and to reconcile against the surface and underground sampling.

It is the Coricancha Qualified Persons’ opinion that the Nyrstar and Great Panther drilling, core logging and sampling programs were carried out according to appropriate professional methodologies and procedures, including those presented in the CIM Exploration Best Practice Guidelines (August 2000 edition).

6.A.9 Mineral Resource Estimates

The  Mineral Resource Estimate for Coricancha has an effective date of December 20, 2017.

MINERAL RESOURCE ESTIMATE AS OF DECEMBER 20, 2017 - CORICANCHA

Measured
Mine	Tonnes	Au  (g/t)	Ag  (g/t)	Pb  (%)	Zn  (%)	Cu  (%)	Ag eq g/t	Ag eq oz (million)
Constancia	270,336	6.2	219	2.36	3.44	0.43	1,064	9.24
Wellington	92,328	6.1	184	1.69	3.95	0.51	1,028	3.05
Escondida	15,362	0.9	279	0.28	1.35	3.20	832	0.41
Constancia East	16,315	6.0	143	1.97	2.16	0.11	836	0.44
San Jose	6,922	5.8	212	4.49	2.94	0.30	1,078	0.24
Colquipallana	2,944	3.4	220	3.67	5.26	0.21	995	0.09
Total Measured	404,205	5.9	210	2.16	3.43	0.54	1,037	13.49

Indicated
Mine	Tonnes	Au  (g/t)	Ag  (g/t)	Pb  (%)	Zn  (%)	Cu  (%)	Ag eq g/t	Ag eq oz (million)
Constancia	218,545	6.0	188	2.09	3.08	0.34	968	6.80
Wellington	77,080	6.0	186	1.68	3.66	0.52	1,004	2.49
Escondida	21,406	1.0	238	0.24	1.08	2.84	733	0.50
Constancia East	18,636	5.8	137	1.93	1.95	0.11	798	0.48
San Jose	7,673	5.7	217	4.76	2.93	0.30	1,084	0.27
Colquipallana	5,215	3.4	207	3.31	5.14	0.19	953	0.16
Total Indicated	348,554	5.6	189	1.95	3.05	0.52	955	10.71

Inferred
Mine	Tonnes	Au  (g/t)	Ag  (g/t)	Pb  (%)	Zn  (%)	Cu  (%)	Ag eq g/t	Ag eq oz (million)
Constancia	532,422	5.3	215	1.71	3.29	0.40	950	16.25
Wellington	238,811	5.4	219	1.06	3.95	0.78	1,014	7.78
Escondida	96,926	2.2	208	0.26	2.24	1.90	751	2.34
Constancia East	49,234	5.7	125	1.66	1.57	0.21	760	1.20
San Jose	14,174	5.7	213	4.34	2.78	0.28	1,049	0.48
Colquipallana	11,592	3.7	117	2.98	3.15	0.15	743	0.28
Total Inferred	943,160	5.0	209	1.45	3.25	0.64	934	28.36

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Annual Information Form for the year ended December 31, 2020 84 

Notes:

1. Cut-offs are based on an estimated $140 (NSR) $/tonne.

2. Metal prices used to calculate NSR: $1,300 per ounce (oz) Au, $17.00/oz Ag, $1.15 per pound (lb) Pb, $1.50/lb Zn, and $3.00/lb Cu

3. Block model grades converted to USD value using plant recoveries of 92.1% Ag, 80.2% Au, 77.3% Pb, 82.6% Zn, 52.7% Cu.

4. Rock Density for Constancia: 3.3 t/m³, Wellington, Constancia East, Escondida, San Jose: 3.2 t/m³, Colquipallana: 2.9 t/m³.

5. Totals may not agree due to rounding.

6. Grades in metric units.

7. All currencies USD.

8. Ageq oz million is calculated from gpt data

9. AgEq g/t = Ag g/t + (Pb grade x ((Pb price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) +(Zn grade x ((Zn price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) + (Cu grade x ((Cu price per lb/Ag price per oz) x 0.0685714 lbs per Troy Ounce x 10000 g per %)) + (Au grade x (Au price per oz/Ag price per oz)).

The Mineral Resource Estimate was completed using MicroMine 3D geological software, and the inverse distance cubed estimation technique was utilized in the estimation of grade to each of the blocks in the block models.

The Company’s QA/QC program includes the regular insertion of blanks, duplicates, and standards into the sample shipments; diligent monitoring of assay results; and necessary remedial actions. Sample assaying was completed at the independent SGS in Lima, Peru. The gold was analyzed by fusion with 30 g fire assay and atomic absorption spectroscopy (AAS) finish, with the resulting values reported in parts per million (code FAA313). The remaining 52 elements were analyzed by mass spectrometry of inductively coupled plasma (ICPMS) and the resulting values were reported in parts per million (code IMC12B). Any gold results that exceeded the limit of detection were re-analyzed by fire assay with a gravimetric finish (code FAG303). Any silver results that exceeded the limit of detection (>10g/t) were re-analyzed by fire assay with a gravimetric finish (code FAG313). Any other metals that exceeded the limit of detection were re-analyzed by ICP-AAS (code AAS11B).

There are no Mineral Reserve estimates for Coricancha. Mineral Resources that are not Mineral Reserves have no demonstrated economic viability.

6.A.10 Mining Operations

Historical mining methods at Coricancha include cut and fill, shrinkage stoping and variations of resue mining techniques. The latter method is highly selective and applied to maximize grade and minimize dilution in narrow vein mines. Mining methods will be the subject of future studies and will consider similar narrow vein methods of extraction.

In May 2018, the Company completed a PEA to evaluate the restart of Coricancha and completed a bulk sample program in 2019 to further test assumptions in the PEA (the “Bulk Sample Program” or “BSP”) and continues to evaluate the conditions for a restart of Coricancha. The Company does not currently plan to complete a feasibility study in connection with any production decision due to (i) the existing processing plant facility, (ii) the ability to continue on to development and production based on low initial capital costs, and (iii) the Company’s knowledge of the mine and mineral resource base.

The PEA and BSP are preliminary in nature and include Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the results and conclusions of the PEA and BSP will be realized. Mineral Resources that are not Mineral Reserves have no demonstrated economic viability.

In the fourth quarter of 2019, the Company undertook a limited mining and processing campaign of approximately 25,000 tonnes. These activities were temporarily suspended following the Peruvian government-mandated restrictions associated with the National State of Emergency announced on March 16, 2020, in response to the COVID-19 virus, which was lifted on May 24, 2020. Subsequently, the Company resumed the processing campaign and continued with its evaluation activities.

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Annual Information Form for the year ended December 31, 2020 85 

6.A.11 Processing and Recovery Operations

The current mineral processing flow sheet at Coricancha includes base metal sulfide flotation to produce Pb, Zn, Cu and arsenopyrite concentrates. Also, differential flotation is used to separate the Au bearing arsenopyrite (AsPy) from pyrite (Py) with subsequent processing by BIOX® and CIL cyanidation for the recovery of Au and Ag. The most recent series of metallurgical test work was completed in 2009 by SGS Lakefield. The goal of the testing program was to optimize the process flow sheet, grind size and reagent scheme. Implementation of the SGS recommendations was completed before restarting plant operations in 2010. Operating data show that the changes were successful in improving the metal recovery, improving base metal concentrate grades, and increasing Au production.

Review of the most recent Coricancha operating data indicate that the metallurgical performance of the processing plant is very stable with metal recoveries and concentrate grades being very consistent. Owing to the presence of AsPy, arsenic (As) is present as a deleterious element in most of the flotation products.

The front end of the plant is a base metal polymetallic sulfide concentrator producing Pb, Cu, and Zn concentrates. The process plant was expanded to include production of an AsPy concentrate, which is treated via BIOX® to recover refractory Au via CIL technology. The original plant was designed and commissioned in 1999 to process 600 tpd of ore primarily from the Wellington and Constancia Veins. Operations have been intermittent since then and are currently under care and maintenance status. There are no major modifications or additions required to put the plant back into production.

The final tailings consist of the AsPy/Py flotation tailings, Py concentrate, neutralized BIOX® liquor sludge, CIL residue, and mine dewatering neutralization sludge. These are thickened using the tailings thickeners with the addition of flocculant before final dewatering in the tailings plate and frame filters. The tailings filter cake is shipped to the Chinchan TSF.

6.A.12 Infrastructure, Permitting and Compliance Activities

Coricancha is located next to the Central Highway, 90 km east of the city of Lima, adjacent to the Rímac River in an area known as Tamboraque. The mine area is situated near the confluence of the Rímac River and its tributary, the Aruri River. The project infrastructure covers the area of the mining concessions and has the following facilities:

• Crushing and grinding equipment;

• Flotation and bio-oxidation circuits;

• Access road to the mine;

• Historical TSF and waste storage areas;

• Electrical power supply and distribution for the plant and mine, along with power systems including transformers and electrical distribution cables from historical mining activities;

• Water and compressed air distribution systems;

• Utility water is available for the mine and plant;

• Communications Systems (internet based);

• Mine light rail haulage network;

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• Camp and kitchen facilities for mine and plant personnel; and

• First aid facilities/Mine rescue equipment.

Future plans will consider the use of the existing facilities as well as the need for additional infrastructure.

Coricancha has all environmental permits and operation licenses required such as an environmental impact assessment (“EIA”), water supply licenses, mining effluents discharge authorization, certificate of inexistence of archaeological remains, and operation and concession licenses.

A recent environmental monitoring review identified some deficiencies which are being addressed as detailed below.

Cancha 1 and 2 TSFs represent the most important environmental and social risk for Coricancha. This is due to their location (130 m from Rímac River and 50 m above) and the fact that the Rímac River is a source for Lima’s water. To manage that risk, following ground instability in 2008 above the tailings site, MEM ordered the tailings removed and transferred from Cancha 1 and 2 to Chinchan TSF (Phase I and II). To date, a significant portion of the tailings has been removed. The Company has sought approval of a modification to the remediation plan from MEM in accordance with the recommendations of an independent consultant to leave the remainder of the tailings in place to preserve the stability of the hillside. The Company has requested a change of the scheduling of the reclamation work, pending a decision from MEM regarding the proposal to modify the approved remediation plan. Concurrently, the Company has undertaken various legal measures to protect itself from any pending or future fines, penalties, regulatory action, or charges from government authorities which may be initiated as a result of the change in timing of the reclamation under the approved plan, including obtaining an injunction. Subsequent to the year ended December 31, 2020, the Company was notified of a second instance decision in its Constitutional Case which unfavorably dismisses the Company’s constitutional challenge, but requests that the MEM issue a technical report evaluating the remediation plan within two months of the second instance decision. The Company expects that the related injunction will be cancelled in the near future. While the Company has appealed the Constitutional Case proceeding, it will not be possible to appeal the cancellation of the injunction. Separately, the Company plans to develop alternatives to propose to MEM to allow for full reclamation while preserving the stability of the surrounding areas. If the Company cannot resolve this matter favorable in a timely matter, the Company cancellation of the injunction will expose the Company to potential fines, penalties, regulatory action or charges from government authorities and may adversely impact the Company’s stated plans and objectives for Coricancha. For a discussion of key risks concerning Coricancha, see Section 8 of this AIF under the headings “Risk Factors - Political Risk and Government Risk”, “Risk Factors - Risks Associated with the Coricancha Acquisitions” and other risks set forth herein.

Other historical tailings storage locations in the area include Triana (which is approximately 5 m above the Rímac River) and Mayoc (which is approximately 1.3 km from Coricancha). The Triana site has been closed with high density polyethylene and is buttressed with a new upgraded concrete retaining wall, and the deposit itself may require resurfacing work in the future. Mayoc tailings were removed from the area and the site is currently under rehabilitation and remediation.

The location of tailings in the vicinity of the primary waterways and water sources, the regional seismic and atmospheric conditions, and the related past environmental, legal, and social issues, combine to form the most significant risk to the project and its future development, and which is continually under review for assessment and control.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 87 

7. PRIMARY EXPLORATION PROPERTIES

The Company has three primary exploration projects in Mexico, El Horcón, Santa Rosa and Plomo. Given the proximity to the GMC, mineralization from both these projects could conceptually be trucked to and processed at the Cata processing plant.

Considering that El Horcón and Santa Rosa could in future form part of the GMC’s operations, the information for these properties (as disclosed in this section of the AIF) is contained in the 2017 GMC Technical Report. Portions of the following information are based on assumptions, qualifications and procedures which are not fully described herein. The information below is presented in summarized form and reference should be made to the full text of the 2017 GMC Technical Report which is available for review under the Company’s profile on SEDAR located at www.sedar.com.

7.A.1 El Horcón Project

7.A.1.a Property Description and Location

The El Horcón Project is situated north of the city of Leon (Guanajuato State), in the state of Jalisco, Mexico, approximately 470 km northwest of Mexico City. The 16 claims expire between 2051 and 2056. There are no known environmental liabilities associated with the mineral claims.

On December 6, 2017, the Company filed an application to reduce the land holdings in the area; specifically, to cancel the Horcón 4 Fraccion 1 concession. After dropping the Horcón 4 Fraccion 1 concession, the Company retains 15 contiguous claims and one isolated claim, totalling 3,520.72 hectares. The official resolution related to this application is pending.

The principal metals of interest are gold, silver, lead, and zinc. Mineralization occurs along structures, the largest of which is the Veta Madre with a strike length of 5 km.

7.A.1.b History

The earliest known exploitation of veins on the El Horcón Project area was conducted by the Jesuits, during the Spanish reign, from the late 1500’s to their expulsion from Mexico in 1767. No production records are available, and various shallow southwest dipping veins were mined all to the immediate northeast of Great Panther’s drilling. Minor amounts of exploitation have been conducted, both by drifting along the veins and by stoping, on the Diamantillo and San Guillermo veins (including but not limited to the El Horcón, La Luz and Diamantillo underground access tunnels).

In 1932, a mining engineer Charles E. Pouliot, completed a mining study and evaluation of pillars, fill and remaining portions of the Diamantillo, San Guillermo and veins exploited by the Jesuits. It is not known if exploitation ensued. During the latter part of the 20th century, several bulk samples were shipped to various mills for metallurgical evaluation of the sulfide rich veins.

A number of academic geological studies were completed in the late 20th century by the Mexican Geological Survey. In 2004 and 2005, Mauricio Hochschild Mexico (“MHM”) conducted significant geological, structural, and geochemical studies on the veins of the Comanja area, followed by drilling of 12 core holes totalling 3,570 m. In 2008 and 2009, Exmin Resources Inc. (“Exmin”) conducted further geological and geochemical studies, including underground mapping and sampling, and core drilling (5 holes totaling 1,052 m) in an effort to move the project to exploitation, without success.

The Company purchased 100% of the El Horcón Project in 2012, which included most of the exploited veins mentioned above, except for certain internal claims covering portions of the veins.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 88 

7.A.1.c Geological Setting and Mineralization

The El Horcón Project area is underlain by Mesozoic marine sediments and predominantly mafic submarine lava flows, of the La Luz and Esperanza Formations; these are weakly metamorphosed and intensely deformed. This basal sequence is cut by a variety of intrusive bodies ranging in composition from pyroxenite to granite with tonalitic and dioritic intrusive being the most volumetrically significant.

Cenozoic volcanic and volcanogenic sediments unconformably overlie the Mesozoic basement rocks. In the area, the oldest Cenozoic unit is the Paleocene Comanja granite. This was followed by the Eocene extrusion of andesite which was sporadically deposited and contemporaneous with the deposition of the Guanajuato conglomerate in localized grabens. The Guanajuato conglomerate underlies an unconformity beneath a sequence of felsic to mafic volcanic rocks that consists of Oligocene ignimbrites, lava flows and domes.

Within the El Horcón Project area quartz-dominated veins follow fractures and faults and are hosted within the Comanja granite, as well as the surrounding Mesozoic meta-volcanic and meta-sedimentary rocks.

The vein system at El Horcón is a quartz-chalcedony-dominated, structurally controlled, epithermal system hosted by Paleocene Comanja granitic rocks and Mesozoic low-grade metamorphic metasedimentary / metavolcanic basement and consists of three principal vein sets that formed in faults and extension fractures.

• NW-striking, SW-dipping veins with dips generally ranging from 45°-70°+,

• NW-striking, SW-dipping low-dip veins (20°-30°), and

• NE-striking generally steep transverse veins.

Gangue minerals associated with the quartz veining include minor fluorite, hematite, chlorite, calcite, and pyrite, while minerals of economic interest include galena (lead), sphalerite (zinc), and minor chalcopyrite (copper). Petrographic work by MHM indicates that silver is present as acanthite. This undated (likely 2005) MHM report (un-acknowledged author) also indicated four stages of Phase 1, and three stages of Phase 2 vein mineralization. Phase 1 includes base metal and precious metal introduction into the vein structures (gold minerals unknown), while Phase 2 stages include calcite and further barren quartz. Beside silicified cataclastic quartz breccia (sealed fault structures), the quartz-chalcedony shows typical epithermal coliform textures.

The primary vein structures on the El Horcón Project include the Diamantillo, San Guillermo, El Ratones, Madre, Crucero, Del Alto, and Alaska veins. Based upon assay results from the channel samples across the surface expressions of these veins, vein widths, and underground exposures by Exmin, MHM, and the Company, it was decided to focus the initial core drill-hole program on the Diamantillo and San Guillermo veins. The narrow Natividad and Diamantillo HW veins were found both from drill site preparation and core drilling. The veins extend in a NW-SE orientation for approximately 7 km in strike and across approximately 2.5 km in width.

7.A.1.d Exploration

Exploration work conducted by the Company has consisted of an initial thorough re-evaluation of the project by geological mapping, vein re-sampling both on surface and of all accessible underground openings in 2012-2013 (1,623 samples), followed by a surface core diamond drilling program of 24 drill holes totalling 2,160 m (1,177 samples). In 2018, a mapping and sampling surface campaign was completed (558 samples). The mapping is intended to define alteration and geochemical anomalies along veins previously unmapped and sampled by the Company, while fully exploring the potential of the project.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 89 

7.A.1.e Drilling

Diamond drilling at El Horcón was conducted by the Company’s exploration staff. The exploration drilling was conducted on 50-100 m spaced sections, with one to three holes drilled per section, as well as at approximately 50 m spacing vertically between holes. The Company’s 2013 drilling was focused from surface to approximately 100 m below surface along a strike length of 650 m.

The Company’s Phase 1 drill-holes completed from mid-April to mid-June 2013 are prefixed by EH13 and include holes 1-24. Only the relevant MHM drilling was used in the Mineral Resource estimation (no records for the Exmin drilling). The drill contractor for the Company was G4 Drilling based in Hermosillo, Sonora.

The management, monitoring, surveying, and logging of the 2013 series “EH13” prefix exploration holes was carried out under the supervision of the Company’s exploration geological staff.

Procedures related to sample and geological data integrity are consistent with those described for the Guanajuato Mine.

7.A.1.f Sample Preparation, Analyses and Security

The drill core samples were prepared by technicians working under the direction of the Exploration Department geologists. The exploration diamond drill core was HQ diameter.

All of the analytical work was completed by SGS and the quality control measures, and data verification procedures are consistent with those described for Guanajuato.

7.A.1.g Mineral Resource Estimates

Mineral Resources were estimated from four area-specific block models. A set of wireframes representing the mineralized zones served to constrain both the block models and data subsequently used in Inverse Distance Cubed (ID3) Au, Ag, Pb, and Zn grade interpolation. The effective date of the estimate is August 31, 2016.

There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political or other factors that could materially affect the Mineral Resource estimates detailed in this report.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 90 

MINERAL RESOURCE ESTIMATE AS OF AUGUST 31, 2016 – EL HORCÓN

Vein	Tonnage (tonnes)	Ag (g/t)	Ag  (oz)	Au (g/t)	Au (oz)	Pb  (%)	Zn  (%)	Ag eq (g/t)	Ag eq  (oz)
Diamantillo	109,649	89	313,468	3.04	10,705	3.11	4.62	398	1,403,358
Diamantillo HW	4,781	54	8,269	4.59	706	2.65	0.47	459	70,518
Natividad	6,038	136	26,347	3.03	587	1.74	0.13	403	78,139
San Guillermo	41,672	37	50,011	4.44	5,943	1.75	2.53	404	540,899
Total Inferred	162,140	76	398,094	3.44	17,942	2.69	3.79	401	2,092,913

Notes:

1. $110/tonne NSR Cut-off.

2. Silver equivalent was calculated using a 70 to 1 ratio of silver to gold value.

3. Rock Density for all veins for Diamantillo is 2.77 t/m³, San Guillermo 2.78 t/m³, Diamantillo HW is 2.62 t/m³, Natividad 2.57 t/m³.

4. Totals may not agree due to rounding.

5. Grades in metric units.

6. Contained silver and gold in troy ounces.

7. Minimum true width 1.5 m.

8. Metal Prices: $18.00/oz silver, $1,300/oz gold and $0.80/lb lead.

9. Ag eq (g/t) and Ag eq (oz) use only Au, Ag and Pb values.

7.A.1.h Mineral Reserve Estimates

There is no Mineral Reserve estimate for the El Horcón Project.

7.A.1.i Mining Operations

The mining method considered when estimating the Mineral Resource is standard cut and fill with waste provided by the development.

7.A.1.j Infrastructure, Permitting and Compliance Activities

The El Horcón Project is situated along the eastern side of the Sierra Guanajuato mountain range and is accessible via a rough access road 10 km north of Comanja, Jalisco. Comanja is a small village and has a population of approximately 500 people and is located within 40 km, by road, of an international airport at León, Mexico.

In 2017, the Environmental Assessment Manifest and Change of Land Use applications were approved by SEMARNAT. These authorizations allow the future exploration and exploitation on the property.

7.A.1.k Exploration and Development

During July and August of 2016, a program of detailed surface geological mapping (1:500 scale) was continued, along with rock sampling of prospective veins approximately one km southeast along the trends of the Diamantillo / Madre veins. Vein swarms and stockwork were noted with generally weakly anomalous gold, silver, lead, zinc and copper values.

During 2018, work included finalizing the details on the SEMARNAT application regarding exploration and exploitation permits and a work program that included additional surface mapping and sampling to prioritize targets for possible follow-up drilling. No exploration was completed at El Horcón in either 2019 or 2020.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 91 

7.A.2 Santa Rosa Project

In 2011, the Company purchased a 100% interest in the Santa Rosa silver-gold property in Guanajuato State, Mexico, for total consideration of $1.5 million in cash.

7.A.2.a Property Description and Location

The Santa Rosa Project includes a cluster of non-contiguous mineral claims to the northeast of Guanajuato. Most cover segments of historically known veins within the Sierra vein system, as well as one claims located further north staked more from a regional conceptual nature.

The six mineral claims comprise an area of 5,756.74 hectares and expire between 2040 and 2064. There are no known environmental liabilities associated with the mineral claims.

The claims of the Santa Rosa Project are situated along the eastern side of the Sierra Guanajuato mountain range, northeast of Guanajuato, Guanajuato.

7.A.2.b History

The core of the Santa Rosa Project claims covers vein exposures along the Sierra vein system, along the eastern flank of the central Veta Madre vein. Minor amounts of pitting, short adits, and shallow vertical shafts have been completed with a minor amount of vein exploitation. No records are available as to these activities. The Company completed due diligence sampling during 2011 and purchased the Santa Rosa claims during the same year. The Cañada de la Virgen claim was part of the Cooperative claim block (Guanajuato Mine) purchased by the Company in 2005.

7.A.2.c Geological Setting and Mineralization

The stratigraphy of the area presents to the Company basement rocks of the older units including Mesozoic age La Luz and La Esperanza Formations. These formations consist of meta-sedimentary sequences, including shale, andesite and felsic dykes deformed and folded by regional metamorphism. Upper volcanic package rocks in concordant contact include a sequence of the lithic tuff, ignimbrites, and also in some place’s rhyolite dykes and jasperoids. The area generally presents a strong NW structural orientation, with normal faults and a dextral component.

In the second phase of exploration (July 2014), detailed mapping was completed in the Cañada de la Virgen claim and in the Virgin vein development tunnel. The Virgin vein structure with minor quartz is oriented around 320-330° with a dip of 35-45°NE, and an average width of 0.50 m. The vein, inside the tunnel, occurs at the contact of a diorite dike. On surface, there are two separate structures enveloping a quartz stockwork hosted in the meta-sedimentary rocks. The tunnel is 60 m long and there are several inclined shafts where mineralization has been extracted. The wall-rock of the Virgin vein, which outcrops for 400 m, shows propylitic alteration along its length. Host rocks include lithic tuffs, ignimbrites, and associated dykes.

Another vein structure identified during the mapping extends for more than 600 m and is exposed in the Salaverna North tunnel. It is a vein structure of 0.40 m width, with strong silicification and hosted in the meta-sedimentary package. The vein structure, when it reaches the upper rhyolite volcanic rocks becomes a stockwork with hematite, limonite, clays, and fine disseminated pyrite.

7.A.2.d Exploration

In the first stage of the Company’s exploration (2012) on the Cañada de la Virgen claim, a total of 168 rock samples from surface, and 537 core samples from the five diamond drill holes were collected.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 92 

During the second stage of the Company’s exploration (2014), a total of 140 samples were taken from surface and underground.

7.A.2.e Drilling

During 2012, five core holes (HQ) were completed on the Santa Rosa Project, specifically on the Cañada de la Virgen claim. In 2017, a second drilling program comprising five core holes (HQ) was completed on the Cañada de la Virgen area. No results of economic significance were encountered in either program.

7.A.2.f Sample Preparation, Analyses and Security

The drill core samples were prepared by technicians working under the direction of the Exploration Department geologists. The exploration diamond drill core from Santa Rosa was of HQ diameter.

All the analytical work was completed by SGS and the quality control measures, and data verification procedures are consistent with those described for Guanajuato.

7.A.2.g Mineral Resource Estimates

There is no Mineral Resource estimate for the Santa Rosa Project.

7.A.2.h Mineral Reserve Estimates

There is no Mineral Reserve estimate for the Santa Rosa Project.

7.A.2.i Mining Operations

The Santa Rosa Project is exploration in nature and no mining methods have been defined.

7.A.2.j Infrastructure, Permitting and Compliance Activities

The southern claims of the Santa Rosa Project are accessible via road access 20 km northeast of Guanajuato. The city of Guanajuato is serviced by an international airport located on the outskirts of Silao, a 30-minute drive on a toll road from Guanajuato. The more northerly claims in the Santa Rosa Project are located nearer the town of San Felipe, an 80 km drive north of Guanajuato by paved road.

Access to local resources is provided within the city of Guanajuato and the town of San Felipe.

7.A.2.k Exploration and Development

A work program consisting of 960 m of surface man-portable rig core drilling and associated trail building was completed in 2017. No significant results were returned from this drilling.

The Company has no program planned for 2021.

7.A.3 Plomo Project

7.A.3.a Property Description and Location

The Plomo Project which is located in NV Sonora State, Mexico consists of the Plomo and Plomo II mineral claims which total 4,279ha in NW Sonora State, Mexico. The Plomo Project is 100% owned by Great Panther Mining Ltd., through its wholly-owned Mexican subsidiary, Coboro Minerales De Mexico S.A. de C.V.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 93 

7.A.3.b Geological Setting, Mineralization and Deposit Type

The geological setting of the northern Sonora desert is similar in many aspects to that of south eastern California and south western Arizona. The region, typical of the southern basin and range physiographic province is characterized by elongate, north west trending ranges, separated by wide alluvial valleys. Basement rock in the area include Precambrian gneisses, metamorphosed andesites, and granites. These rocks are overlain by younger Proterozoic quartzites and limestones, Paleozoic and Mesozoic carbonate rocks, and Mesozoic volcanic rocks. The Sonora-Mojave mega-shear appears to be a major fault which juxtaposes the Precambrian basement against the Jurassic magmatic terrane. The nature of movement along the shear is uncertain but may be 800km of left-lateral movement during the middle Jurassic time.

The Plomo geology is represented by volcanic/volcaniclastic and intrusive rocks that belong to the Jurassic magmatic arc, with mineralized zones controlled by low angle shear structures. To a large extent the upper plate rhyolite volcanic rock and mineralized shear has been eroded, leaving only remnants of the mineralized shear, and underlying lower plate mafic volcanic rocks. This interpretation comes out of several campaigns of geological mapping culminating in 2012 (described below) and a geochemistry program. A further drill program would test the mineralized shear zone by drilling through several remnant areas of upper plate rocks through the mineralized and altered shear, and into the lower plate volcanic rocks.

7.A.3.c Exploration and Drilling

The Plomo project lies in one of the most prospective gold mineralized areas in Sonora, the Altar gold belt. The region hosts the La Herradura gold mine, held by Grupo Peñoles and Newmont. In 2007, a regional sampling and mapping program was conducted in an approximately five km long and two km wide area, resulting in discovery of several gold anomalous areas in hematite-tourmaline mineralized low angle shear zones. Within this widespread gold anomaly five gold anomalous areas were identified.

In 2008, a first phase drilling program (ten core holes totaling 1,498m) tested these anomalies. Ten diamond drill-holes were completed along a five km long trend. All the holes cut altered low angle shear zones except for one hold located at the Banco de Oro anomaly. Six of the ten holes intersected at least one intercept of two meters with geochemically anomalous gold concentrations.

In 2012, a property wide geological mapping, rock and stream silt sampling program took place to better understand the geology and structures considering the 2008 drilling. This work led to the present understanding of the geology and importantly the flat lying altered and gold mineralized shear between upper “plate” rhyolites and lower “plate” dominate mafic volcanic rocks. The sericite-quartz-tourmaline-hematite sheared small hills in the Pavoreal area, drilled in 2008, have been re-interpreted as remnant vestiges of the flat lying shear. Great Panther is targeting drilling remaining areas of shear located below areas of altered rhyolite upper plate rock.

In 2021, the Company plans to complete detailed geological/alteration/structural mapping to confirm an earlier geological interpretation from 2012, before any surface drill testing.

7.A.3.d Mineral Resource Estimates

There is no Mineral Resource estimate for the Plomo Project.

7.A.3.e Mineral Reserve Estimates

There is no Mineral Reserve estimate for the Plomo Project.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 94 

7.A.3.f Mining Operations

The Plomo Project is exploration in nature and no mining methods have been defined.

8. RISK FACTORS

The operations of the Company are characterized by a number of risks inherent to the nature of the mining industry and to the nature of the Company’s business in particular. The following risk factors, as well as other risks discussed in this AIF, could materially affect the Company’s future operating results and could cause actual events to differ materially from those described in forward-looking statements relating to the Company. These risks and uncertainties are not the only ones faced by the Company. Additional risks and uncertainties not presently known to management or that management currently consider immaterial may also impair the Company’s business operations. If any of these events actually occur, the Company’s business, prospects, financial condition, cash flow and operating results could be materially harmed. Before deciding to invest in securities of the Company, investors should carefully consider such risks and uncertainties.

Metals and Mineral Prices Are Subject to Dramatic and Unpredictable Fluctuations

The market prices of precious metals and other minerals are volatile and cannot be controlled. If the prices of precious metals and other minerals drop significantly, the economic prospects of the Company’s operating mines and projects could be significantly reduced or rendered uneconomic. There is no assurance that even if commercial quantities of ore are discovered, a profitable market may exist for the sale of same. Mineral prices have fluctuated widely, particularly in recent years. The marketability of minerals is also affected by numerous other factors beyond the control of the Company, including government regulations relating to royalties, allowable production and importing and exporting of minerals, the effect of which cannot be accurately predicted.

The Company’s objective is to generally remain unhedged with respect to gold and siler prices. However, the Company may enter into hedging arrangements from time to time and fluctuations in metal prices may result in derivative losses and liabilities in respect of these arrangements due to metal price fluctuations. Correspondingly, determinations not to engage in hedging arrangements may expose the Company to risk of prices in gold and silver which could significantly impact the Company’s cash flow from operations and adversely affect its ability to make debt repayments when due should these prices decline in circumstances when the Company does not have hedging arrangements in place. From time to time, the Company has also sought arrangements to price a proportion of the silver and gold content of its production in advance of contractual pricing periods which can be two to three months from the time of shipment. The arrangements entered into to date have not exceeded more than 33% of the Company’s annual production and have not exceeded more than six months in duration. The Company did not enter any such arrangements in 2020, but may enter into similar arrangements in the future which may exceed the levels and duration of past arrangements. These arrangements may also be subject to realized losses as can involve fixing a future price for a given metal.

Current Global Financial Conditions

In recent years, global financial markets have experienced increased volatility and global financial conditions have been subject to increased instability. These had a profound impact on the global economy. Many industries, including the mining sector, are impacted by these market conditions. Some of the key impacts of financial market turmoil include contraction in credit markets resulting in a widening of credit risk, devaluations and high volatility in global equity, commodity, foreign exchange and precious metal markets and a lack of market liquidity. These factors may impact the ability of the Company to obtain equity or debt financing and, if available, to obtain such financing on terms favourable to the Company. If these increased levels of volatility and market turmoil continue, the Company’s operations and planned growth could be adversely impacted and the trading price of the securities of the Company may be adversely affected.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 95 

COVID-19 and Other Pandemics

Since the outbreak of COVID-19 in late 2019, it has spread rapidly into areas where we have operations and where our offices are located. Government efforts to curtail the spread of COVID-19 resulted in the temporary suspensions of our operations in Mexico for approximately two months and State of Emergency orders in Peru have resulted in Coricancha, which has been on care and maintenance with some limited mining operations, being restricted to conducting exclusively care and maintenance activities to sustain the appropriate safety and environmental systems. In the three months ended December 31, 2020, the Company voluntarily suspended operations in Topia for a period of approximately one month due to the detection of COVID-19 among the workforce in an effort to limit the spread among the workforce and in the local community. Any sustained shut-down or significant curtailment to the Company’s operations will have a material adverse impact on the Company’s production, revenues and financial condition and may materially impact the Company’s ability to meet its production guidance.

The spread of COVID-19 has impacted our employees and contractors, not only as it relates to potential health concerns, but also in terms of limitations on movement, availability of food and other goods, and personal well-being, among others. Our suppliers and service providers have also been impacted.

While COVID-19 has already had significant, direct impacts on our operations, our business, our workforce, and our production, the extent to which COVID-19 will continue to impact our operations will depend on future developments which are highly uncertain and cannot be predicted with confidence. These future developments include, but are not limited to, the duration of the outbreak, new information that may emerge concerning the severity of COVID-19, and the actions taken to contain COVID-19 or treat it. The impact of governmental restrictions and health and safety protocols could improve or worsen relative to our assumptions, depending on how each jurisdiction manages potential outbreaks of COVID-19, the development and adequate supply of vaccines, and the roll-out of vaccination programs in each jurisdiction. We assume operations will continue to be impacted by comprehensive COVID-19 protocols in 2021, which would increase costs and restrict throughput levels.

Our ability to conduct exploration and development programs was also impacted in 2020 due to COVID-related restrictions, protocols, and travel restrictions, and we anticipate that this impact will also be felt in 2021. The Company may experience delays and disruptions in carrying out its planned near mine and regional exploration plans at Tucano which may in turn delay the expansion of its mineral resource base. Further, there is no assurance that exploration and development activities relating to Urucum underground mine will not have to cease at some point during 2021 as a result of government orders directed at controlling COVID-19.

Our ability to continue with our operations and activities, or to successfully maintain our operations on care and maintenance if so required, or to restart or ramp-up any such operations efficiently or economically, or at all, is unknown. Disruptions in the Company’s supply chain, including disruptions from the Company’s suppliers and service providers, as a result of industry closures relating to containment of COVID-19 may result in the declaration by the Company’s suppliers of force majeure in contracts or purchase orders, which may result in the Company’s inability to complete projects in a timely manner. In addition, the Company’s customers may determine to delay their decisions in connection with new projects as they assess the impact of COVID-19 on their businesses.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 96 

Regulatory agencies the Company works with have been impacted by work-from home and other industry closures. As a result, the Company has also experienced delays in 2020 and expects in 2021 it will continue to be impacted by delays, in receiving permits and regulatory responses which could adversely impact its operations and exploration and development plans.

Further, the Company expects that it will continue in 2021 to experience disruptions to its operations as a result of COVID-19 including workforce shortages and the unavailability of contractors and subcontractors, interruption of supplies and the provision of services from third parties upon which the Company relies, regulatory restrictions that governments impose or that the Company voluntarily imposes to address the COVID-19 outbreak and to ensure the safety of employees and others. The Company may experience disruptions in transportation services as a result of COVID-19 that could adversely impact the Company’s ability to deliver gold doré to refineries.

Moreover, the continued presence of, or spread, of COVID-19, and any future emergence and spread of COVID-19 mutations or other pathogens, globally would likely have material adverse effect on both global and regional economies, including those in which we operate, as we have seen already. Such effects would not only affect our business and results of operations, but also the operations of our suppliers, contractors and service providers, including smelter and refining service providers, and the demand for our production. COVID-19 could also negatively impact stock markets, including the trading price of our shares, adversely impact our ability to raise capital, cause continued interest rate volatility and movements that could make obtaining financing or refinancing our debt obligations more challenging or more expensive (if such financing is available at all), and result in any operations affected by COVID-19 becoming subject to quarantine or shut down. Any of these developments, and others, could have a material adverse effect on our business, results of operations and financial condition.

If the Company’s operations are impacted or expected to be impacted, the Company may undertake measures to preserve cash resources including suspension of discretionary spending and other legal means to reduce and minimize contractual spending. However, any extended suspension of operations may ultimately impact on the Company’s ability to repay its debt obligations and other creditors, with the result that the Company’s financial position may be seriously jeopardized.

Tucano Mine Life

The Company significantly reduced its Mineral Reserve and Mineral Resource estimates for Tucano in March 2020, which resulted in a shorter open pit mine plan for Tucano than the forecast production from Mineral Reserves through the end of 2022. The Company announced a further update to its Mineral Reserve and Resources estimates for Tucano in December 2020 which extended the open pit mine life by approximately one year. In order to continue open pit mining at Tucano beyond 2023, the Company will need to expand its Mineral Reserve base or otherwise establish that the material currently classified as Mineral Resources can be economically mined. On January 19, 2021, the Company announced that it plans to complete a 60,000 m drilling program at Tucano in 2021, including plans to further advance near-mine drilling focused on converting existing Mineral Resources into Mineral Reserves, and further advance its regional exploration programs that are focused on increasing the Tucano Mineral Resource base. There is however no assurance that these development and exploration plans will ultimately be successful in increasing the mine life of Tucano or that such development work will result in the estimation of Mineral Reserves demonstrating economic viability. Further, there are uncertainties with respect to the amount of capital expenditures that may be required to be deployed to extend such mine life beyond 2023 and related regulatory and permitted risks associated therewith. As a consequence, the Company may be required to evaluate whether to cease operations at Tucano if it cannot economically operate the mine. Any shut-down or curtailment of Tucano would materially and adversely impact on the financial condition and results of operations of the Company and may result in the Company not being able to pay its obligations, including outstanding debt.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 97 

Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they arise. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis and its expansion plans. As at December 31, 2020, the Company had net working capital (current assets in excess of current liabilities) of approximately $31.4 million, including approximately $63.4 million in cash and short term deposits. At December 31, 2020, the Company has total borrowings of $33.4 million, of which $30.9 million is due over the next twelve months.

The Company believes it has sufficient net working capital to meet operating requirements as they arise for at least the next twelve months, but there can be no assurance that a sudden significant decrease in gold or silver prices, or unforeseen liabilities, or other matters affecting the operations of the business might arise which will have a material impact on the Company’s sufficiency of cash reserves to meet operating requirements. In addition, further acquisitions or significant change in capital plans could significantly change the cash and working capital required by the Company. Government and industry measures to contain the spread of COVID-19 could also cause disruption to the Company’s operations and adversely impact cash flow and liquidity.

The Company has not finalized its open pit mine plan for Tucano beyond 2023 and the capital requirements to extend the mine plan beyond this time are unknown at present. The Company may require additional financing in order to finance these ongoing operations at Tucano and this financing may not be available when required.

As at December 31, 2020, the Company has a provision of $68.3 million on its Statement of Financial Position for the estimated present cost of reclamation and remediation expenditures associated with the future closure of its mineral properties, and plant and equipment, at the GMC, Topia, Tucano and Coricancha. The estimated expenditures are to commence near the end of each mine’s useful life except may be required by applicable law. There is no assurance that the Company will have sufficient capital resources as required to fund these reclamation expenses as and when required.

Inaccuracies in Production and Cost Estimates

The Company prepares estimates of future production and future production costs for specific operations. No assurance can be given that these estimates will be achieved. Production and cost estimates are based on, among other things, the following: the accuracy of Mineral Reserve and Resource estimates; the ability to continue mining activities without disruption; the accuracy of assumptions regarding ground conditions and physical characteristics of mineralization, equipment and mechanical availability, labour, and the accuracy of estimated rates and costs of mining and processing. Actual production and costs may vary from estimates for a variety of reasons, including actual mineralization mined varying from estimates of grade, tonnage, dilution and metallurgical and other characteristics, short-term operating factors relating to the Mineral Reserve and Resources, such as the need for sequential development of mineralized zones and the processing of new or different grades of mineralization; the ability to continue mining in accordance with the Company’s mine plans, the availability of tailings storage facilities and the risks and hazards associated with mining described below under “Mining and Mineral Exploration Have Substantial Operational Risks”. In addition, there can be no assurance that silver recoveries or other metal recoveries in small scale laboratory tests will be duplicated in larger scale tests under on-site conditions or during production, or that the existing known and experienced recoveries will continue. Costs of production may also be affected by a variety of factors, including: variability in grade or dilution, metallurgy, labour costs, costs of supplies and services (such as, fuel and power), general inflationary pressures, changes in regulations and currency exchange rates. Failure to achieve production or cost estimates, or increases in costs, could have an adverse impact on the Company’s future cash flow, earnings, results of operations and financial condition.

Uncertainty Regarding Resource Estimates

Only Mineral Resources have been determined for certain of the Company’s properties, and other than Tucano, no estimate of Mineral Reserves on any property has been completed. Mineral Resource estimates are based on interpretation and assumptions and may yield less mineral production under actual conditions than is currently estimated. In making determinations about whether to advance any projects to development, the Company must rely upon estimated calculations as to the Mineral Resources and grades of mineralization on its properties. Until mineralized zones are mined and processed, Mineral Resources and grades of mineralization must be considered as estimates only. These estimates are imprecise and depend upon geological interpretation and statistical inferences drawn from drilling and sampling which may prove to be unreliable. The Company cannot assure that:

• Mineral Resource or other mineralization estimates will be accurate; or

• Mineralization can be mined or processed profitably.

Any material changes in Mineral Resource estimates and grades of mineralization will affect the economic viability of a mine or a project and its return on capital. The Company’s resource estimates have been determined and valued based on assumed future prices, cut-off grades and operating costs that may prove to be inaccurate. Extended declines in market prices for silver, gold, zinc and lead may render portions of the Company’s mineralization uneconomic and result in reduced reported Mineral Resources.

Any material reductions in estimates of Mineral Resources, or of the Company’s ability to extract such Mineral Resources, could have a material adverse effect on the Company’s results of operations or financial condition. The Company cannot assure that mineral recovery rates achieved in small scale tests will be duplicated in large scale tests under on-site conditions or in production scale.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 98 

Production Decisions Made without Identified Mineral Reserves

There are no current estimates of Mineral Reserves for any of the Company’s Mexican mines and Coricancha. The Company made decisions to enter into production at Topia, Guanajuato and San Ignacio without having completed final feasibility studies. Accordingly, the Company did not base its production decisions on any feasibility studies of Mineral Reserves demonstrating economic and technical viability of the mines. Any future production decisions at Topia, Guanajuato, and San Ignacio are also anticipated to be made without having completed feasibility studies. In addition, the Company may at some point in the future make decisions to extend mine operations at Tucano beyond the mine life of its current Mineral Reserves by mining material that is classified as Mineral Resources without the completion of a feasibility study that would be required to establish whether these Mineral Resources can be converted to Mineral Reserves. As a result, there may be increased uncertainty and risks of achieving any particular level of recovery of minerals from the Company’s mines or the costs of such recovery. As the Company’s mines do not have established Mineral Reserves, except for Tucano, the Company faces higher risks that anticipated rates of production and production costs will not be achieved, each of which risks could have a material adverse impact on the Company’s ability to continue to generate anticipated revenues and cash flow to fund operations from and ultimately achieve or maintain profitable operations.

Sufficiency of Current Capital and Ability to Obtain Financing

The further exploitation, development and exploration of mineral properties in which the Company holds interests or which the Company acquires may depend upon its ability to obtain financing through equity financing and/or debt financing, to enter into joint venture arrangements or to obtain other means of financing. There is no assurance that the Company will be successful in obtaining required financing as and when needed. Volatile precious metals markets may make it difficult or impossible for the Company to obtain financing on favourable terms, or at all.

As at December 31, 2020, the Company had approximately $63.4 million of cash and short-term deposits. During 2020, the Company generated positive cash flow from operating activities, however, this was not sufficient to make scheduled debt repayments and capital investments and the Company needed to raise other sources of capital. There is no assurance that the Company’s cash flow generated from mining activities, along with its current cash and other net working capital, will be sufficient to fund the Company’s operations without requiring any additional capital to meet its planned initiatives, and to fund investment and exploration, evaluation, and development activities for the foreseeable future. The Company’s ability to fund its operations without additional capital will be highly dependent on metal prices and the ability of the Company to maintain cost and grade controls at its operations, and is subject to the Company’s plans and strategy.

In addition, the Company had outstanding debt of $33.4 million as at December 31, 2020. The Company may also enter into new debt arrangements in the future that may further increase its debt payable. In addition, the Company was liable from the fourth quarter of 2019 through February, 2021 under the terms of certain forward foreign exchange contracts used to hedge the Company’s exposure to movements in the USD/BRL exchange rate. As at December 31, 2020, the Company held non-deliverable forward foreign exchange contracts for BRL against USD totaling BRL 88.2 million at various pre-determined rates ranging from BRL 4.37/USD to BRL 4.45/USD, at various maturity dates until February 2021. The fair value of these outstanding non-deliverable forward foreign exchange contracts resulted in a liability of $3.0 million at December 31, 2020. These contracts were settled in cash at each maturity date for an amount equal to the difference between the spot market exchange rate on the settlement date and the contract rate multiplied by the contractual notional amount. Accordingly, cash settlement that is required under hedging arrangements had the potential to impact the Company’s liquidity and financial condition. In 2020, the Company realized losses totalling $21.6 million on BRL/USD forward exchange contracts that matured during the year and recorded unrealized mark-to-market losses of $6.4 million. For January and February 2021, the Company realized a loss of $3.5 million on final settlement of the remaining forward exchange contracts that were outstanding at December 31, 2020. The Company will be dependent upon its future ability to maintain production at its mines in order to generate the cash flow required to repay this indebtedness in accordance with the requirement payment schedules. In the event production cannot be maintained, the Company may be required to complete additional equity financings or sell assets in order to repay these creditors and avoid enforcement actions by these creditors or an insolvency event. There is no assurance that any equity financing would be available to the Company in these circumstances or that the Company would be able to market and sell assets at the prices that the Company would consider to be fair and representative of their market value.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 99 

The Company has completed acquisitions to achieve growth, and accordingly, may continue to evaluate opportunities to execute and complete additional acquisitions, and these may require additional capital. There is no assurance that the Company will be able to obtain additional capital when required. Failure to obtain additional financing on a timely basis may limit, expansion, development and exploration plans, or even to suspend operations.

Mining and Mineral Exploration Have Substantial Operational Risks

Mining and mineral exploration involve many risks, which even a combination of experience, knowledge and careful evaluation may not be able to overcome. These risks include but are not limited to:

• major or catastrophic equipment failures;

• mine failures and slope failures;

• failure of tailings facilities;

• ground fall and cave-ins;

• deleterious elements materializing in the mined resources;

• environmental hazards;

• industrial accidents and explosions;

• encountering unusual or unexpected geological formations;

• labour shortages or strikes;

• government regulations;

• civil disobedience and protests; and

• natural phenomena such as inclement weather conditions, floods, droughts, rockslides and earthquakes.

Tucano experienced a pit slope displacement at UCS in October 2019, as described in Section 5.A.8.b of this AIF. The pit was closed to mining while Great Panther worked toward a remediation plan with the assistance of an independent consulting firm, Knight Piésold. Even though full-scale mining recommenced in October, 2020, there is no assurance that the Company will be able to continue mining and be able to access the UCS Mineral Reserves. The Mineral Reserves in the UCS Pit represent a material portion of the Mineral Reserves planned for production in 2021. If the Mineral Reserves at UCS are unable to be accessed, either as a result of slope displacement or instability or otherwise, it would adversely impact the Company’s production plans, future revenues and financial condition of the Company.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 100 

Draining the pit and monitoring of water levels in piezometer holes is being carried out as mining progresses, and any mining below 111 masl will be evaluated on the basis of whether further drainage is required using for horizontal drain holes in order to continue mining safely. If further drainage is required, there is a risk that there may be interruptions required to continue with horizontal drainage, which would increase the Company’s costs of operations and reduce and substantially delay potential production.

In addition, the Company may experience similar pit wall displacements or other failures at the Tucano open pit mines, with further negative impact to the Company’s ability to mine its Mineral Reserves. Any such events may increase the Company’s costs of operations, delay production plans and reduce potential production.

Monitoring of the TSF at Topia by the Company’s geotechnical consultants detected mass movement of the material underlying the TSF. As a result, the consultants issued a report in March 2020 recommending that the Company cease further deposit of tailings on the TSF. The Company has been working in 2020 with its independent consultant to assess these observations and develop a remediation plan.

During the suspension of non-essential activities due to COVID-19, the Company continued monitoring the conditions on Phase II and installed additional geotechnical instrumentation. In addition, tests were carried out to determine the state of the tailings in Phase I. Extensive work has been carried out to identify and reduce the flow of water into the base of the TSF. Monitoring indicated that it was safe to return to stacking in Phase II, which is expected to provide sufficient capacity until the end of 2022. Deposition at Phase II was restarted on the basis of continued positive results of monitoring and an interim stacking plan for Phase II received from a third-party consultant with strict control on sequence and compaction level. The Company has also received the required permit for Phase III, which will be available for use after constructing retaining walls and erosion controls around the base of the facility.

There is no assurance that the Company will be able to continue deposit of tailings on the TSF or that the ongoing monitoring and there is no assurance that any remediation plan will be successful in preventing further movement of the tailings. Any movement of the material underlying the TSF could result in significant environmental damage, potential loss of life and property and consequential liability to the Company.

These occurrences could result in environmental damage and liabilities, work stoppages and delayed production, increased production costs, damage to, or destruction of, mineral properties or production facilities, personal injury or death, asset write-downs, monetary losses, loss of or suspension of permits as a result of regulatory action, reputational damage and other liabilities. The nature of these risks is such that liabilities could exceed policy limits of the Company’s insurance coverage, in which case the Company could incur significant costs that could prevent profitable operations.

Risks Associated with Continued use of Topia Tailings and Expansion

In December 2017, SEMARNAT granted all permits for the construction and operation of Phase II of the Topia TSF. Phase II is not a conventional tailings dam, but instead a dry stack operation using filter cake. The deposition includes stacking and compaction of the material.

Phase I of the TSF was closed and contoured during 2018 and requires ongoing monitoring consisting of primarily of piezometers and inclinometers, and independent third-party geotechnical reviews.

The planned capacity of the Phase II TSF is sufficient to handle the processing of several years of mined material and additional longer term storage capacity is permitting for Phase III, which will be available for use after constructing retaining walls and erosion controls around the base of the facility. Phase III is on top of the legacy TSF managed by a former owner of the mine, where the proposed tails stacking will be part of the remediation. There are risks associated with future expansions including, but not limited to, identifying and procuring suitable sites, and obtaining the necessary permits for construction and operation.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 101 

On March 9, 2020, the Company announced it had temporarily ceased tailings deposition at its Topia Phase II TSF following receipt of a report on the TSF from an independent tailings management and geotechnical consultant engaged by the Company to regularly evaluate the TSF. The report recommended that stacking of tailings of the Phase II area of the TSF be discontinued based on evidence of mass movement underlying Phase I and Phase II of the TSF.

During the suspension of non-essential activities due to COVID-19, Great Panther continued monitoring the conditions on Phase II and installed additional geotechnical instrumentation. In addition, tests were carried out to determine the state of the tailings in Phase I. Extensive work has been carried out to identify and reduce the flow of water into the base of the TSF. Monitoring indicated that it was safe to return to stacking in Phase II, which is expected to provide sufficient capacity until the end of 2022. Deposition at Phase II was restarted on the basis of continued positive results of monitoring and an interim stacking plan for Phase II received from a third-party consultant with strict control on sequence and compaction level.

The Company cannot provide assurance that it will be successful in preventing further movement of the tailings. Any movement of the material underlying the TSF could result in significant environmental damage, potential loss of life and property and consequential liability to the Company.

These occurrences could result in environmental damage and liabilities, work stoppages and delayed production, increased production costs, damage to, or destruction of, mineral properties or production facilities, personal injury or death, asset write-downs, monetary losses, loss of or suspension of permits as a result of regulatory action, reputational damage and other liabilities. The nature of these risks is such that liabilities could exceed policy limits of the Company’s insurance coverage, in which case the Company could incur significant costs that could prevent profitable operations.

Any shut-down of Topia due to permitting delays or lack of alternate tailings storage solutions would have a material impact on the Company’s revenues and may adversely impact on the Company’s revenues and financial condition.

In addition, reviews by the regulatory authorities dating back to 2015, coupled with permitting work undertaken by the Company in connection with the expansion of the Topia TSF have led to a broader review by PROFEPA of the permitting status for all of Topia operations, environmental compliance (including the historical tailings dating back to periods prior to Great Panther’s ownership) and a clarification of land titles. Devised as a cooperative management strategy, the Topia Mine was accepted into a voluntary environmental audit program supported by PROFEPA which commenced during the second quarter of 2017. The Company is working on a compliance program authorized by PROFEPA to address the audit findings. This compliance program includes remediation, and technical reviews as defined by the audit. Progress updates are submitted to PROFEPA for further review. The Company anticipates that it will be able to achieve full compliance; however, the Company cannot provide complete assurance that upon conclusion of the compliance program further reviews will not lead to future suspensions of operations.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 102 

Political Risk and Government Regulations

The Company’s mining, exploration and development activities are focused in Brazil, Mexico and Peru, and are subject to extensive national and local laws and regulations governing prospects, taxes, labour standards, employee profit sharing and occupational health and safety, including mine safety, land use, environmental protection, including biodiversity, and water, soil and air quality, permitting, management and use of toxic substances and explosives, management and use of natural resources, including water and energy supplies, management of waste, exploration, development, production, and post-closure reclamation of mines, imports and exports, transportation, community rights, human rights, social matters, including historic and cultural preservation, engagement and consultation, local hiring and procurement, development funds, anti-corruption and anti-money laundering, data protection and privacy and others which currently or in the future may have a substantial adverse impact on the Company. To comply with applicable laws and future laws, the Company may be required to make significant capital or operating expenditures or face restrictions on or suspensions of our operations and delays in development of our properties. There is no guarantee that more restrictive, or new constraints on the Company’s operations will not be imposed, including those that might have significant economic impacts on our operations and profitability. In addition, the regulatory and legal framework in some jurisdictions in which we operate are outdated, unclear and at times, inconsistent. A failure to comply with these laws and regulations, including with respect to our past and current operations, and possibly even actions of parties from whom we acquired our mines or properties, could lead to, among other things, the imposition of substantial fines, penalties, sanctions, the revocation of licenses or approvals, expropriation, forced reduction or suspension of operations, and other civil, regulatory or criminal proceedings the extent of which cannot be reasonably predicted.

The Company is seeking approval of a modification to a remediation plan from the MEM for the Coricancha project in accordance with the recommendations of an independent consultant to preserve the stability of nearby areas. The Company has changed the scheduling of the reclamation work, pending a decision from the MEM regarding the proposal to modify the approved remediation plan. To protect itself from any pending or future fines, penalties, regulatory action or charges from government authorities and to request that the MEM issue a decision on the proposed modification of the remediation plan for legacy tailings, the Company initiated a Constitutional Case and successfully obtained an injunction to prevent fines and penalties until MEM issues its decision.

The Company was recently notified of a second instance decision in the Constitutional Case, which unfavourably dismisses the Company’s constitutional challenge. The Company expects that the related injunction will be cancelled. The cancellation of the injunction will expose the Company to potential fines, penalties, regulatory action or charges from government authorities.

Existing and possible future environmental legislation, regulation and action could cause additional expense, capital expenditures, restriction and delays in the activities of the Company, the extent of which cannot be reasonably predicted. Violators may be required to compensate those suffering loss or damage by reason of the Company’s mining activities and may be fined if convicted of an offence under such legislation.

Mining and exploration activities in the countries where the Company operates may be affected in varying degrees by political instabilities and government regulations relating to the mining industry or business activities in general. Any changes in regulations or shifts in political conditions are beyond the Company’s control and may adversely affect the business. Operations may also be affected to varying degrees by government regulations with respect to restrictions on production, price controls, export controls, income taxes, expropriation of property, environmental legislation and mine safety. The status of Brazil, Mexico and Peru as developing countries may make it more difficult for the Company to obtain any required financing for projects. The effect of all these factors cannot be accurately predicted. Notwithstanding the progress achieved in improving Brazilian, Mexican and Peruvian political institutions and in revitalizing their economies, the present administrations or any successor governments may not be able to sustain the progress achieved. The Company does not carry political risk insurance.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 103 

As governments continue to struggle with deficits and concerns over the effects of depressed economies, the mining and metals sector has often been identified as a source of revenue. Taxation and royalties are often subject to change and are vulnerable to increases in both poor and good economic times, especially in many resource rich countries. The addition of new taxes, specifically those aimed at mining companies, could have a material impact on our operations and will directly affect profitability and our financial results. The economic impact of COVID-19 on the global and national economies, the resulting costs to governments and increased fiscal debt is also expected to result in further taxation pressures, the impacts of which could impact our financial performance. For a discussion of recent legal reforms proposed in Mexico, see Section 4.F of this AIF under the heading “Doing Business in Brazil, Mexico and Peru – Mining in Mexico”.

To manage the COVID-19 pandemic, governments in all of the jurisdictions the Company has operations have implemented various regulations, orders, protocols and guidelines, many of which have negatively affected our business and our employees, contractors and local communities. COVID-19 has also impacted governments and national economies, and in addition to impacts on labour, supplies, and services that are needed to conduct the Company’s business, this may also increase the likelihood of additional taxes, duties, royalties, or similar burdens being placed on mining operations in an effort to generate municipal, state and federal revenues and boost economies. For more detailed discussion of the risks related to COVID-19 on the Company’s business, see Section 8 of this AIF under the heading “Risk Factors - COVID-19 and Other Pandemics”.

Risks Associated with Obtaining and Complying with Tailings and Other Permits

The Company’s operations are subject to obtaining and maintaining permits (including environmental permits) from appropriate governmental authorities. There is no assurance that necessary permits will be obtained or that delays will not occur in connection with obtaining all necessary renewals of such permits for the existing operations, or additional permits for any possible future changes to operations, or additional permits associated with new legislation. Additionally, it is possible that previously issued permits may become suspended for a variety of reasons, including through government or court action. There can be no assurance that the Company will continue to hold or obtain, if required to, all permits necessary to develop or continue operating at any particular property.

The Company has been advised by the national water authority, CONAGUA, that the Company is required to make applications for permits associated with the occupation and construction of the TSF at the GMC, including the proposed expansion of the GMC TSF (lifts 18 and 19). Subsequently, the Company filed its applications and CONAGUA officials carried out an inspection of the TSF and requested further technical information, which the Company submitted in December 2017. The duration and success of efforts to obtain the tailings permits are contingent upon many variables not within the Company’s control.

Approval for the expansion of the TSF at the GMC by SEMARNAT has been obtained, subject to also receiving approval by the national water authority, CONAGUA which is pending. In parallel, the Company has completed its review to identify technical alternatives to extend its tailings storage capacity utilizing existing permits and has begun modifying the tailings discharge using cyclones to extend the tailings capacity until June 30, 2021. This will allow more time for receipt of the pending expansion approval; however, if the expansion approval of the TSF has not been received in a timely manner and prior to June 30, 2021, the Company may need to cease milling operations at the GMC until receipt of the expansion approval.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 104 

The Company cannot assure that any tailings permits will be obtained or renewable on reasonable terms, or at all. Permitting authorities may impose conditions on the approval of any such permits which may not be economically feasible or could substantially delay production plans. Delays or a failure to obtain such required permits on reasonable terms, or the expiry, revocation or failure by the Company to comply with the terms of any such permits, if obtained, would adversely affect the Company’s ability to continue operating or expand the TSF at the GMC and could result in a halt of operations at the GMC, each of which could adversely affect the Company’s results of operations.

The Company may require additional water use and discharge permits for its operations at the GMC, particularly during of periods of excessive drought. The Company continues to evaluate whether such permits are necessary. If such permits prove necessary, there can be no assurance that the Company will be able to obtain such permits, which could adversely affect the Company’s operations.

Factors Beyond the Company’s Control

There are a number of factors beyond the Company’s control. These factors include, but are not limited to, changes in government regulation, political changes, high levels of volatility in metal prices, availability of markets, availability of adequate transportation and smelting facilities, availability of capital, environmental and social factors, acts of nature, catastrophic risks, and amendments to existing taxes and royalties. These factors and their effects cannot be accurately predicted.

Environmental and Health and Safety Risks

The Company’s operations are subject to environmental regulations promulgated by government agencies from time to time. There is no assurance that environmental regulations will not change in a manner that could have an adverse effect on the Company’s financial condition, liquidity or results of operations, and a breach of any such regulation may result in the imposition of fines and penalties.

Environmental legislation is constantly expanding and evolving in ways that impose stricter standards and more rigorous enforcement, with higher fines and more severe penalties for non-compliance, and increased scrutiny of proposed projects. There is an increased level of responsibility for companies, and trends towards criminal liability for officers and directors for violations of environmental laws, whether inadvertent or not. The cost of compliance with changes in governmental regulations has the potential to reduce the profitability of the Company’s operations.

Exploration activities and/or the pursuit of commercial production of the Company’s mineral claims may be subject to an environmental review process under environmental assessment legislation. Compliance with an environmental review process may be costly and may delay commercial production. Furthermore, there is the possibility that the Company would not be able to proceed with commercial production upon completion of the environmental review process if government authorities do not approve the proposed mine, or if the costs of compliance with government regulation adversely affect the commercial viability of the proposed mine.

The development and operation of a mine involves significant risks to personnel from accidents or catastrophes such as fires, explosions or collapses. These risks could result in damage or destruction of mineral properties, production facilities, casualties, personal injury, environmental damage, mining delays, increased production costs, monetary losses and legal liability. The Company may not be able to obtain insurance to cover these risks at economically feasible premiums. Insurance against certain environmental risks, including potential liability for pollution and other hazards as a result of the disposal of waste products occurring from production, is not generally available to companies within the mining industry. The Company may be materially adversely affected if it incurs losses related to any significant events that are not covered by its insurance policies.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 105 

The Company has safety programs in place and continues to pursue further improvements on an ongoing basis. Safety meetings with employees and contractors are held on a regular basis to reinforce standards and practices. However, there is no assurance that safety incidents will not be experienced in the future, or that operations might not be materially affected by their occurrence. Further, a safety incident could have an adverse effect on the Company’s financial condition, liquidity or results of operations, and may result in the imposition of fines and penalties.

Risks Which Cannot Be Insured

The Company maintains appropriate insurance for liability and property damage; however, the Company may be subject to liability for hazards that cannot be insured against, which if such liabilities arise, could impact profitability and result in a decline in the value of the Company’s securities. The Company’s operations may involve the use of dangerous and hazardous substances; however, extensive measures are taken to prevent discharges of pollutants in the ground water and the environment. Although the Company will maintain appropriate insurance for liability and property damage in connection with its business, the Company may become subject to liability for hazards that cannot be insured against or which the Company may elect not to insure itself against due to high premium costs or other reasons. In the course of mining and exploration of mineral properties, certain risks and, in particular, unexpected or unusual geological operating conditions including rock bursts, cave-ins, tailings facility failures, fires, flooding and earthquakes, may occur. It is not always possible to fully insure against such risks and the Company may decide not to take out insurance against such risks as a result of high premiums or other reasons.

Risk of Secure Title of Property Interest

There can be no assurance that title to any property interest acquired by the Company or any of its subsidiaries is secured. Although the Company has taken reasonable precautions to ensure that legal title to its properties is properly documented, there can be no assurance that its property interests may not be challenged or impugned. Such property interests may be subject to prior unregistered agreements or transfers or other land claims, and title may be affected by undetected defects and adverse laws and regulations.

In the jurisdictions in which the Company operates, legal rights applicable to mining concessions are different and separate from legal rights applicable to surface lands; accordingly, title holders of mining concessions in such jurisdictions must agree with surface landowners on compensation in respect of mining activities conducted on such land.

Unauthorized Mining

The mining industries in Brazil and Mexico are subject to incursions by illegal miners or “garimpeiros” or “lupios” who gain unauthorized access to mines or exploration areas to steal mineralized material mainly by manual mining methods. The Company has experienced such incursions including an incident in the first quarter of 2014 at the GMC which resulted in both a significant financial loss to the Company and a material impact to the Company’s operations. This was also experienced historically at the Tatarugalzinho exploration project in Brazil. In addition to the risk of losses and disruptions, these illegal miners pose a safety and security risk. The Company has taken security measures at its sites to address this issue and ensure the safety and security of its employees, contractors and assets. These incursions and illegal mining activities can potentially compromise underground structures, equipment and operations, which may lead to production stoppages and impact the Company’s ability to meet production goals.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 106 

Commercialization Risk of Development and Exploration Stage Properties and Ability to Acquire Additional Commercially Mineable Mineral Rights

The Company’s primary mineral properties in Mexico, Topia and the GMC (excluding San Ignacio), have been in the production stage for more than ten years under the ownership of the Company, and have generated positive cash flow from operating activities. However, the commercial viability of these mines was not established by a feasibility study or preliminary economic assessment. Similarly, San Ignacio commenced commercial production in 2014 and has generated positive cash flow from operating activities; however, the commercial viability of this mine was not established by a feasibility study or preliminary economic assessment. Coricancha was a past producing mine that is currently on care and maintenance. There is no assurance that the Company’s evaluation efforts will be sufficient to bring Coricancha into production.

Mineral exploration and development involve a high degree of risk. There is no assurance that commercially viable quantities of ore will be discovered at Coricancha, or the Company’s other exploration projects, or that its exploration or development projects will be brought into commercial production.

Most exploration projects do not result in the discovery of commercially mineable ore deposits and no assurance can be given that any anticipated level of recovery of ore reserves will be realized or that any identified mineral deposit will ever qualify as mineable. Estimates of Mineral Reserves and Mineral Resources, and production costs can also be affected by such factors as environmental permitting regulations and requirements, weather, environmental factors, social dynamics in local communities, negotiations with landowners, unforeseen technical difficulties, unusual or unexpected geological formations and work interruptions.

Material changes in commodity prices, Mineral Resources, grades, dilution or recovery rates, or other project parameters may affect the economic viability of any project. The Company’s future growth and productivity will depend, in part, on the ability to identify and acquire additional commercially mineable mineral rights, and on the costs and results of continued exploration and potential development programs. Mineral exploration and development is highly speculative in nature and is frequently non-productive. Substantial expenditures are required to:

• establish Mineral Resources through drilling and metallurgical and other testing techniques;

• determine metal content and metallurgical recovery processes to extract metal from the ore;

• evaluate the economic feasibility; and

• construct, renovate, expand or modify mining and processing facilities.

In addition, if potentially economic mineralization is discovered, it would take several years from the initial phases of exploration until production is possible. During this time, the economic feasibility of production may change. As a result of these uncertainties, there can be no assurance that the Company will successfully acquire additional commercially mineable properties.

Development projects usually have no operating history upon which to base estimates of future cash flow. Estimates of Proven and Probable Mineral Reserves, Measured and Indicated Mineral Resources, and Inferred Mineral Resources are, to a large extent, based upon detailed geological and engineering analysis. Further, Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. At this time, other than Tucano, the Company’s properties do not have defined Mineral Reserves. Due to the uncertainty of Inferred Mineral Resources, there is no assurance that Inferred Mineral Resources will ever be upgraded to either Measured or Indicated Mineral Resources or to Proven or Probable Mineral Reserves.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 107 

Because mines have limited lives, the Company must continually replace and expand its Mineral Resources as production continues. The LOM estimates for the Company’s mines may not be correct. The ability of the Company to maintain or increase its annual production of metals and the Company’s future growth and productivity will be dependent in significant part on its ability to identify and acquire additional commercially mineable mineral rights, to bring new mines into production, to expand Mineral Resources at existing mines, and on the costs and results of continued exploration and potential development programs. The inability to identify Mineral Resources in quantities sufficient to bring a mineral property into production may result in the write down of the value of the mineral property.

Risks Associated with the Coricancha Acquisition

The Company completed the acquisition of Coricancha on June 30, 2017. The Company’s decision to acquire Coricancha was subject to a number of assumptions, including anticipated exploration results, the expected cost and timing of restarting operations, anticipated processing and production rates that may be achieved at Coricancha upon reactivation, the working capital position of Coricancha at closing, the ultimate cost of reclaiming legacy tailings facilities, potential increases to the Coricancha resource base, the anticipated cost of the mine closure bond, the indemnification obligations of Nyrstar under the Share Purchase Agreement (described in Section 6.A.1 of this AIF) and current environmental conditions and liabilities at Coricancha. While Nyrstar, as the former owner of Coricancha, has agreed to indemnify the Company with respect to certain reclamation costs, these indemnification obligations are capped. While the Company presently believes the ultimate reclamation costs for which Nyrstar is responsible to indemnify Coricancha will be less than the indemnity cap, there is no assurance that this will be the case. The recent dismissal of the Constitutional Case proceeding will require the Company to consider additional and/or alternative reclamation measures which may or may not be accepted by the authorities, and may subject the Company to further fines and penalties. The Company is uncertain to the ultimate cost of these alternatives and if these will even be accepted by the authorities. In the case there are accepted their cost may ultimately exceed the amount of the Nyrstar indemnity. In addition, there may be disagreements between the Company and Nyrstar as to the amount of Nyrstar’s indemnification obligations under the Share Purchase Agreement. In addition, the parent guarantor of the Nyrstar entities has been replaced with a subsidiary of Trafigura that has acquired the Nyrstar entities as part of a sale by Nyrstar NV of its assets in a reorganization transaction with Trafigura. There is no assurance that the Trafigura guarantor will have the financial resources necessary to discharge any claim under the guarantee should the Nyrstar entities fail to discharge their obligations.

If any of these assumptions prove incorrect, the Company may not be able to achieve profitable operations at Coricancha. The acquisition of Coricancha is subject to a number of risks that may result in a materially adverse impact on the Company, including potential political risks involving the Company’s operations in a foreign jurisdiction, technical and operational difficulties that may be encountered with reactivation of Coricancha, uncertainty of production and cost estimates and the potential for unexpected costs and expenses, uncertainty in Mineral Resource estimation, physical risks inherent in mining operations, currency fluctuations, fluctuations in the price of silver, gold and base metals, completion of economic evaluations, changes in project parameters as plans continue to be refined, permitting risks, the inability or failure to obtain adequate financing on a timely basis, unanticipated increases in the cost of the tailings reclamation, increased mine closure costs and related bond requirements, potential fines, penalties, regulatory actions or charges from government authorities in connection with the failure to move the Cancha 1 and 2 tailings as contemplated in the mine closure plan and the other risks and uncertainties described elsewhere in this AIF, any of which could have a material adverse impact on the Company and its results of operations.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 108 

The Company is required to make a decision as to whether to permanently close the Coricancha mine under its Amended and Restated Mine Closure Agreement with Nyrstar by June 30, 2022 but, has agreed it will not make such decision before July 1, 2021. If a decision to permanently close the mine is made, after July 1, 2021 and before June 30, 2022, Nyrstar will fund closure costs up to $6.5 million but Coricancha will be required to post an additional $6.5 million of the total required $10.9 million bond with Peruvian government authorities. If no decision is made to permanently close Coricancha, then Coricancha will likewise be required to post the entire amount of the $10.9 million bond. Accordingly, either option will require a financial commitment from the Company which may divert capital and management time away from the funding of mining operations and other revenue generating activities and which may have an adverse impact on the Company’s liquidity position. In addition, any costs of permanently closing Coricancha may be greater than the $6.5 million that Nyrstar would be required to fund in the event of a decision to permanently close the mine by June 30, 2022.

In addition, although the Company has completed the Coricancha Technical Report in the form of a preliminary economic assessment at Coricancha and the BSP it is currently evaluating the conditions under which a restart of Coricancha production can be implemented. The Company may not conduct a preliminary feasibility study or feasibility study in connection with its decision. Mineral properties that are placed into production without the benefit of a feasibility study have historically had a higher risk of failure. There is no assurance the Company will achieve any particular level of production at Coricancha or that operations there will be profitable. The preliminary economic assessment completed includes Inferred Mineral Resources which are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. Further, there is no certainty that the results of the preliminary economic assessment or the BSP will ever be realized.

Financing Risks Associated with Tucano

There can be no assurance that the Company will be able to secure the funds necessary to finance the optimization, planned exploration, further capital investment and development of Tucano and scheduled debt repayments in a manner that will increase value to shareholders. In addition, Tucano will have significant working capital needs, given its 2021 production profile with a much greater proportion of production in the second half of the year. Capital costs required to extend mine life at Tucano beyond 2023 are presently unknown as the mine plan to access additional ore has not been finalized. These capital requirements may require the Company to obtain additional financing, and there is no assurance that this financing will be available when required.

Substantial expenditures will be required to optimize, develop and to continue with the exploration of Tucano and near mine exploration targets. In order to explore and develop Tucano, the Company may be required to expend significant amounts for, among other things, geological, geochemical and geophysical analysis, drilling, assaying, and, if warranted, further mining and infrastructure feasibility studies. The Company may not benefit from any of these investments if it is unable to identify commercially exploitable mineralized material. If successful in identifying Mineral Reserves, it may require additional capital to construct infrastructure necessary to extract recoverable metal from those Mineral Reserves.

The ability of the Company to achieve sufficient cash flow from internal sources and obtain necessary funding through equity financing, joint ventures, debt financing, or other means, depends upon a number of factors, including the state of the worldwide economy and the price of gold, silver and other metals. The Company may not be successful in achieving sufficient cash flow from internal sources and obtaining the required financing as and when needed for these or other purposes on terms that are favorable to it or at all, in which case its ability to continue operating may be adversely affected. Failure to achieve sufficient cash flow and obtain such additional financing could result in delay or indefinite postponement of further exploration or potential development and may cause the Company to forfeit rights in some or all of its properties or reduce or terminate some or all of its planned operations.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 109 

Exploration and Development Risks Associated with Tucano

Resource exploration and development is a speculative business, characterized by a number of significant risks including, among other things, unprofitable efforts resulting not only from the failure to discover mineral deposits but also from finding mineral deposits that, though present, are insufficient in quantity and quality to return a profit from production. The marketability of minerals acquired or discovered by the Company with respect to Tucano may be affected by numerous factors that are beyond the control of the Company and that cannot be accurately predicted, such as market fluctuations, the proximity and capacity of milling facilities, mineral markets and processing equipment, and such other factors as government regulations, including regulations relating to royalties, allowable production, importing and exporting minerals and environmental protection, the combination of which factors may result in the Company not receiving an adequate return of investment capital.

The business of exploration for minerals and mining involves a high degree of risk. Few properties that are explored are ultimately developed into producing mines. There is no assurance that the mineral exploration and development activities of the Company will result in discoveries of commercial bodies of ore. The long-term profitability of the Company’s operations will in part be directly related to the costs and success of its exploration programs, which may be affected by a number of factors.

Substantial expenditures are required to establish Mineral Reserves through drilling and to develop the mining and processing facilities and infrastructure at any site chosen for mining. Although substantial benefits may be derived from the discovery of a major mineralized deposit, no assurance can be given that minerals will be discovered in sufficient quantities to justify commercial operations or that funds required for development can be obtained on a timely basis.

In addition, any determination to proceed with the development of the Urucum underground mine at Tucano will require the completion of a feasibility study to demonstrate the technical and economic feasibility of the project. There is no assurance that this feasibility will be established or that the Company will be able to raise the capital to fund the development of the Urucum underground mine should feasibility be established.

Ability to Service Debt and Meet Financial Covenants

The Company has incurred significant debt on the acquisition of Tucano, on a consolidated basis, and anticipates continuing to rely on debt financing to support mining operations at Tucano. Great Panther’s ability to continue to service this debt and meet its financial covenants and other obligations will depend on its future performance and cash flow which to a certain extent are subject to general economic, financial, competitive, legislative, regulatory and other factors, including the price of gold, silver and other metals, many of which are beyond its control. Great Panther’s historical financial results (on a pro forma basis) have been, and it is anticipated that Great Panther’s future financial results will continue to be, subject to fluctuations. Cash flow can vary and Tucano has a limited life of mine based on its current Mineral Reserves. Accordingly, the Company’s business may not generate sufficient cash flow from operations to enable it to satisfy its debt and other obligations, including reclamation obligations. Any inability to secure sufficient debt funding (including to refinance on acceptable terms) or to service its existing and new debt may have a material adverse effect on Great Panther’s financial performance and prospects or its ability to continue to meet its financial covenants.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 110 

Litigation Risk

As discussed in Section 15 of this AIF, the Company is party to various legal proceedings in connection with its mining properties. The Company disclosed certain of these legal proceedings but has not disclosed other legal proceedings on the basis that they do not represent claims in excess of 10% of the assets of the Company. The Company has made various assessments as to the probability of the outcomes of these legal proceedings in connection with the preparation of its Audited Financial Statements. There is no assurance that the Company’s assessment of the probability of these outcomes, and the amounts for which the Company may become liable to pay, will be accurate and representative of the actual outcomes in these legal proceedings. Adverse decisions in these legal proceedings could result in significant damages being awarded against the Company which could in have a material adverse impact on the Company’s financial condition and results of operations. While the Company may be able to appeal any awards of decisions against the Company, there is no assurance that these appeals would be successful. In addition, the Company’s inability to overturn the decision of the Federal labour court regarding the prohibition of cyanide usage at Tucano following the date that is one year following the date of any final appeal could result in the Company being required to cease operations at Tucano if an alternative to cyanide treatment cannot be identified and implemented in a cost-effective manner (of which there is no assurance). While the Company views such an order as being unprecedented in Brazil, the Company’s failure to over-turn the order on appeal would have a material adverse impact on the Company’s financial condition and results of operations.

All industries, including the mining industry, are subject to legal claims, with and without merit. The Company may become involved in additional legal disputes in the future. Defence and settlement costs can be substantial, even with respect to claims that have no merit. Due to the inherent uncertainty of the litigation process, the resolution of any particular legal proceeding may have a material effect on the Company’s financial position or results of operations.

The Company may be subject to governmental and regulatory investigations, civil claims, lawsuits and other proceedings in the ordinary course of its business. The results of these legal proceedings cannot be predicted with certainty due to the uncertainty inherent in regulatory actions and litigation, the difficulty of predicting decisions of regulators, judges and juries and the possibility that decisions may be reversed on appeal.

Management is committed to conducting business in an ethical and responsible manner, which it believes will reduce the risk of legal disputes. However, if the Company is subject to legal disputes, there can be no assurances that these matters will not have a material adverse effect on the Company’s business, financial condition, results of operations, cash flow or prospects.

Corruption and Fraud in Brazil relating to Ownership of Real Estate

Under Brazilian law, real property ownership is normally transferred by means of a transfer deed, and subsequently registered at the appropriate real estate registry office under the corresponding real property record. There are uncertainties, corruption and fraud relating to title ownership of real estate in Brazil, mostly in rural areas. In certain cases, a real estate registry office may register deeds with errors, including duplicate and/or fraudulent entries, and, therefore, deed challenges frequently occur, leading to judicial actions. Property disputes over title ownership are frequent in Brazil, and, as a result, there is a risk that errors, fraud or challenges could adversely affect the Company’s ability to operate, although ownership of mining rights are separate from ownership of land.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 111 

Restrictions to the Acquisition of Rural Properties by Foreign Investors or Brazilian Companies under Foreign Control

Non-resident individuals and non-domiciled foreign legal entities are subject to restrictions for the acquisition or lease for agricultural purpose, or arrendamento, of rural properties in Brazil. Limitations also apply to legal entities domiciled in Brazil controlled by foreign investors, such as the Company’s subsidiaries through which the Company will operate in Brazil. The limitations are set forth mainly in Law No. 5,709/1971 and in Decree No. 74,965/1974.

Until 2010, limitations imposed on the acquisition of rural property did not apply to Brazilian companies under foreign control. However, an opinion issued by the General Counsel of the Federal Government Office of Brazil significantly changed the interpretation of the applicable laws at the time. Accordingly, Brazilian companies that have the majority of their capital stock owned by foreign individuals and legal entities domiciled abroad are deemed “foreign investors” for the purposes of application of the restrictions on the acquisition of rural property in Brazil. The legality of such opinion has been and is currently being challenged, however prior challenges to the opinion have been unsuccessful.

A foreign investor or a Brazilian company under foreign control may only acquire rural property in Brazil without breaching the aforementioned opinion if certain conditions are met, including, among others, prior approval by the Brazilian Ministries or, in certain cases, by the Brazilian Congress. Pursuant to applicable legislation, any agreements regarding the direct or indirect ownership of rural properties by foreign individuals or entities may be considered null and void, as well as any agreements regarding corporate changes which might result in indirect acquisition or arrendamento of rural lands by foreign investors. Accordingly, the Company’s ownership of any such rural properties in Brazil may be subject to legal challenges which could result in a material adverse effect on the Company’s business, results of operations, financial condition and cash flow.

Termination of Mining Concessions

The Company’s mining concessions may be terminated in certain circumstances. Under the laws of Brazil, Mineral Resources belong to the federal government and governmental concessions are required to explore for, and exploit, Mineral Reserves. The Company will hold mining, exploration and other related concessions in each of the jurisdictions where the Company operates and where it will carry on development projects and prospects. The concessions the Company will hold in respect of its operations, development projects and prospects may be terminated under certain circumstances. Termination of any one or more of the Company’s mining, exploration or other concessions could have a material adverse effect on the Company’s financial condition or results of operations.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 112 

Inflation in Brazil

In the past, high levels of inflation have adversely affected the economies and financial markets of Brazil, and the ability of its government to create conditions that stimulate or maintain economic growth. Moreover, governmental measures to curb inflation and speculation about possible future governmental measures have contributed to the negative economic impact of inflation in Brazil and have created general economic uncertainty. As part of these measures, the Brazilian government has at times maintained a restrictive monetary policy and high interest rates that have limited the availability of credit and economic growth. Brazil may experience high levels of inflation in the future. Inflationary pressures may weaken investor confidence in Brazil and lead to further government intervention in the economy, including interest rate increases, restrictions on tariff adjustments to offset inflation, intervention in foreign exchange markets and actions to adjust or fix currency values, which may trigger or exacerbate increases in inflation, and consequently have an adverse impact on the Company. In an inflationary environment, the value of uncollected accounts receivable, as well as of unpaid accounts payable, declines rapidly. If Brazil experiences high levels of inflation in the future and price controls are imposed, the Company may not be able to adjust the rates the Company charges the Company’s customers to fully offset the impact of inflation on the Company’s cost structures, which could adversely affect the Company’s results of operations or financial condition.

Fluctuations in the Price of Consumed Commodities

Prices and availability of commodities or inputs consumed or used in connection with exploration, development and mining, such as natural gas, diesel, oil, electricity, and reagents fluctuate and affect the costs of production at the Company’s operations. These fluctuations can be unpredictable, are beyond the control of the Company, can occur over short periods of time and may have a materially adverse impact on operating costs or the timing and costs of various projects.

Fluctuation in Foreign Currency Exchange Rates

The Company maintains bank accounts in Canadian, US, Australian, Mexican, Brazilian and Peruvian currencies. The Company earns revenue in US dollars while its costs are incurred in local currencies such the Canadian dollar, Australian dollar, Mexican peso, Brazilian real and Peruvian sol. An appreciation of these local currencies against the US dollar will increase operating, financing and capital expenditures as reported in US dollars. A decrease of these local currencies against the US dollar will result in a loss to the Company to the extent that the Company holds funds in such currencies.

The Company has, from time to time, used hedging instruments to manage its foreign exchange risk. Such instruments can be subject to material gains and losses. In particular, the Company was liable from the fourth quarter of 2019 through February, 2021 under the terms of certain forward foreign exchange contracts used to hedge the Company’s exposure to movements in the USD/BRL exchange rate. As at December 31, 2020, the Company held non-deliverable forward foreign exchange contracts for BRL against USD totaling BRL 88.2 million at various pre-determined rates ranging from BRL 4.37/USD to BRL 4.45/USD, at various maturity dates until February 2021. The fair value of these outstanding non-deliverable forward foreign exchange contracts resulted in a liability of $3.0 million at December 31, 2020. To the extent that the Company enters into future hedging instruments, it may again incur significant losses on derivative instruments and incur derivative liabilities based on exchange rate fluctuations.

Dependence on Key Personnel

The Company’s success and viability depends, in large part, on its ability to attract and maintain qualified key management personnel. Competition for such personnel is intense and may impact the ability to attract and retain such personnel. The Company’s growth and viability has depended, and will continue to depend, on the efforts of key personnel. The loss of any key personnel may have a material adverse effect on the Company, its business and its financial position. The Company has employment contracts with these employees but does not have key-man life insurance. The Company provides these employees with long-term incentive compensation which generally vests over several years and is designed to retain these employees and align their interests with those of the Company’s shareholders.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 113 

Conflicts of Interest of Directors and Officers

Certain of the Company’s directors and officers may continue to be involved in a wide range of business activities through their direct and indirect participation in corporations, partnerships or joint arrangements, some of which are in the same business as the Company. Situations may arise in connection with potential acquisitions and investments where the other interests of these directors and officers may conflict with the interests of the Company. The directors and officers of the Company are required by law and the Company’s Code of Business Conduct and Ethics to act in the best interests of the Company. They may have the same obligations to the other companies and entities for which they act as directors or officers. The discharge by the directors and officers of their obligations to the Company may result in a breach of their obligations to these other companies and entities and, in certain circumstances, this could expose the Company to liability to those companies and entities. Similarly, the discharge by the directors and officers of their obligations to these other companies and entities could result in a breach of their obligation to act in the best interests of the Company. Such conflicting legal obligations may expose the Company to liability to others and impair its ability to achieve its business objectives.

Concentration of Customers

The Company sells gold doré and refined concentrates containing silver, gold, lead and zinc to metals traders and smelters. During the year ended December 31, 2020, five customers accounted for 99% of the Company’s revenues. The Company believes that a limited number of customers will continue to represent a significant portion of its total revenue. The Company does not consider itself economically dependent upon any single customer or combination of customers due to the existence of other potential metals traders or smelters capable of purchasing the Company’s supply. However, the Company could be subject to limited refinery or smelter availability and capacity, it could face the risk of a potential interruption of business from a third party beyond its control, or it may not be able to maintain its current significant customers or secure significant new customers on similar terms, any of which may have a material adverse effect on the Company’s business, financial condition, operating results and cash flow.

Risks Associated with Transportation and Storage of Doré or Concentrate

The doré and concentrates produced by the Company have significant value and are transported by road, by air, and/or by ship to refineries and smelters in local countries and overseas. The geographic location of the Company’s operating mines in Brazil and Mexico, and air and trucking routes taken through the country to the refinery, smelters and ports for delivery, give rise to risks including doré or concentrate theft, road blocks and terrorist attacks, losses caused by adverse weather conditions, delays in delivery of shipments, and environmental liabilities in the event of an accident or spill.

The ability of the Company to transport doré and concentrates may also be at risk due to regional quarantine measures related to the COVID-19 pandemic which could be imposed by various levels of governments in the jurisdictions in which the Company operates.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 114 

Theft of Doré or Concentrate

The Company may have significant doré and concentrate inventories at its facilities or on consignment at other warehouses awaiting shipment. The Company has experienced theft of concentrates in the past and has taken additional steps to secure its doré and concentrate, whether in storage or in transit. The Company has insurance coverage; however, recovery of the full market value may not always be possible. Despite risk mitigation measures, there remains a continued risk that theft of doré or concentrate may have a material impact on the Company’s financial results.

Illegal Activity in the Countries in Which the Company Operates Could Have an Adverse Effect on Operations

The Company’s primary mineral exploration and exploitation activities are conducted in Brazil, Mexico and Peru and are exposed to various levels of political, economic and other risks and uncertainties. These risks include but are not limited to, hostage taking, murder, illegal mining, high rates of inflation, corruption of government officials, blackmail, extortion and other illegal activity. Corruption of foreign officials could affect or delay required permits, service levels by foreign officials, and protection by police and other government services.

Mexico continues to undergo sometimes violent internal struggles between the government and organized crime with drug cartel relations and other unlawful activities. The number of kidnappings, violence and threats of violence throughout Mexico is of particular concern and appears to be on the rise. While the Company takes measures to protect both personnel and property, there is no guarantee that such measures will provide an adequate level of protection for the Company or its personnel. The occurrence of illegal activity against the Company or its personnel cannot be accurately predicted and could have an adverse effect on the Company’s operations.

In January 2016, a small amount of explosives was stolen from the GMC. While the Company has taken additional security measures, there is no assurance that theft of explosives will not occur again. Explosives are highly regulated, and any theft or loss of explosives may be subject to investigation by Mexican regulatory authorities. The Mexican regulatory authorities may elect at their discretion to exercise administrative action during or after such an investigation. Administrative action could include fines and possibly suspension of the Company’s explosives permit during the investigation period or longer, which would negatively impact the Company’s operations.

Compliance with Anti-Corruption Laws

The Company’s operations are governed by, and involve interaction with, many levels of government in Brazil, Mexico and Peru. The Company is subject to various anti-corruption laws and regulations such as the Canadian Corruption of Foreign Public Officials Act and the United States’ Foreign Corrupt Practices Act, each of which prohibit a company and its employees or intermediaries from bribing or making improper payments to foreign officials or other persons to obtain or retain business or gain some other business advantage. In addition, the Extractive Sector Transparency Measures Act recently introduced by the Canadian government contributes to global efforts to increase transparency and deter corruption in the extractive sector by requiring extractive entities active in Canada to publicly disclose, on an annual basis, specific payments made to all governments in Canada and abroad. According to Transparency International, Brazil, Mexico and Peru are each perceived as having fairly high levels of corruption relative to Canada. The Company cannot predict the nature, scope or effect of future regulatory requirements to which the Company’s operations might be subject or the manner in which existing laws might be administered or interpreted.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 115 

Failure to comply with the applicable anti-corruption laws and regulations could expose the Company and its senior management to civil or criminal penalties or other sanctions, which could materially and adversely affect the Company’s business, financial condition and results of operations. Likewise, any investigation of any alleged violations of the applicable anti-corruption legislation by Canadian or foreign authorities could also have an adverse impact on the Company’s business, reputation, financial condition and results of operations. Although the Company has adopted policies to mitigate such risks, such measures may not be effective in ensuring that the Company, its employees or third-party agents will comply with such laws.

Information and Cyber Security

The secure processing, maintenance and transmission of information and data is critical to the Company’s business. Furthermore, the Company and its third-party service providers collect and store sensitive data in the ordinary course of the Company’s business, including personal information of the Company’s employees, as well as proprietary and confidential business information relating to the Company and in some cases, the Company’s customers, suppliers, investors and other stakeholders. This may also include confidential information of prospective merger and acquisition targets or candidates with which the Company may have entered into confidentiality agreements. With the increasing dependence and interdependence on electronic data communication and storage, including the use of cloud-based services and personal devices, the Company is exposed to evolving technological risks relating to this information and data. These risks include targeted attacks on the Company’s systems or on systems of third parties that the Company relies on, failure or non-availability of a key information technology systems, or a breach of security measures designed to protect the Company’s systems. While the Company employ security measures in respect of its information and data, including implementing systems to monitor and detect potential threats, the performance of periodic audits, and penetration testing, the Company cannot be certain that it will be successful in securing this information and data and there may be instances where the Company is exposed to malware, cyber-attacks or other unauthorized access or use of the Company’s information and data. Any data breach or other improper or unauthorized access or use of the Company’s information could have a material adverse effect on the Company’s business and could severely damage the Company’s reputation, compromise the Company’s network or systems and result in a loss or escape of sensitive information, a misappropriation of assets or incidents of fraud, disrupt the Company’s normal operations, and cause the Company to incur additional time and expense to remediate and improve the Company’s information systems. In addition, the Company could also be subject to legal and regulatory liability in connection with any such cyber-attack or breach, including potential breaches of laws relating to the protection of personal information.

Acquisition Strategy

As part of Great Panther’s business strategy, the Company has made acquisitions in the past and continues to seek new acquisition opportunities in the Americas. The opportunities sought by the Company include operating mines, as well as exploration and development opportunities, with a primary focus on silver and/or gold. As a result, the Company may from time to time acquire additional mineral properties or the securities of issuers which hold mineral properties. In pursuit of such opportunities, the Company may fail to select appropriate acquisition candidates or negotiate acceptable arrangements, including arrangements to finance acquisitions or integrate the acquired businesses and their personnel into the Company, and may fail to assess the value, strengths, weaknesses, contingent and other liabilities and potential profitability of acquisition candidates, or to achieve identified and anticipated operating and financial synergies, and may incur unanticipated costs, diversion of management attention from existing businesses, the potential loss of the Company’s key employees or of those of the acquired business. Acquisitions may also lead to the issuance of a large number of the Company’s common shares, which would result in dilution to existing shareholders. The Company cannot assure that it can complete any acquisition or business arrangement that it pursues, or is pursuing, on favourable terms, or that any acquisitions or business arrangements completed will ultimately benefit the Company. Acquisitions may involve a number of special risks, circumstances or legal liabilities. These and other risks related to acquiring and operating acquired properties and companies could have a material adverse effect on the Company’s results of operations and financial condition. Further, to acquire properties and companies, the Company may be required to use available cash, incur debt, issue additional securities, enter into off-take, royalty agreements or metal streaming agreements, or a combination of any one or more of these. This could affect the Company’s future flexibility and ability to raise capital, to operate, explore and develop its properties and could dilute existing shareholders and decrease the price of the common shares of the Company. There may be no right for the Company’s shareholders to evaluate the merits or risks of any future acquisition undertaken by the Company, except as required by applicable laws and regulations.

Community Relations and Social License to Operate

The Company’s relationship with the communities in which it operates is important to ensure the future success of its existing operations and the construction and development of its projects. While the Company believes its relationships with the communities in which it operates are strong, there is an increasing level of public concern relating to the perceived effect of mining activities on the environment and on communities impacted by such activities. Certain non-governmental organizations (“NGOs”), some of which oppose globalization and resource development, are often vocal critics of the mining industry and its practices. Adverse publicity generated by such NGOs or others related to extractive industries generally, or its operations specifically, could have an adverse effect on the Company’s reputation or financial condition and may impact its relationship with the communities in which it operates. While the Company believes that it operates in a socially responsible manner, there is no guarantee that the Company’s efforts in this respect will mitigate this potential risk.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 116 

Volatility of Share Price

Trading prices of Great Panther’s shares may fluctuate in response to a number of factors, many of which are beyond the control of the Company. In addition, the stock market in general, and the market for precious metals producers in particular has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of such companies. These broad market and industry factors may adversely affect the market price of the Company’s shares, regardless of operating performance.

In the past, following periods of volatility in the market price of a company’s securities, securities class-action litigation has been known to be initiated. Such litigation, if instituted, could result in substantial costs and a diversion of management’s attention and resources.

Substantial Decommissioning and Reclamation Costs

The Company reviews and reassesses its reclamation obligations at each of its mines based on updated mine life estimates, rehabilitation and closure plans. As at December 31, 2020, the Company had recorded a provision in the amount of $68.3 million for the estimated present value of future reclamation and remediation costs associated with the expected retirement of its mineral properties, plants, and equipment.

The costs of performing the decommissioning and reclamation must be funded by the Company’s operations. These costs can be significant and are subject to change. The Company cannot predict what level of decommissioning and reclamation may be required in the future by regulators. If the Company is required to comply with significant additional regulations or if the actual cost of future decommissioning and reclamation is significantly higher than current estimates, this could have an adverse impact on the Company’s future cash flow, earnings, results of operations and financial condition.

Officers and Directors Are Indemnified Against All Costs, Charges and Expenses Incurred by Them

The Company’s articles contain provisions limiting the liability of its officers and directors for all acts, receipts, neglects or defaults of themselves and all the other officers or directors for any other loss, damage or expense incurred by the Company which happen in the execution of the duties of such officers or directors, as do indemnification agreements between the directors and officers and the Company. Such limitations on liability may reduce the likelihood of derivative litigation against the Company’s officers and directors and may discourage or deter shareholders from suing the officers and directors based upon breaches of their duties to the Company, though such an action, if successful, might otherwise benefit the Company and its shareholders.

Enforcement of Legal Actions or Suits

It may be difficult to enforce suits against the Company or its directors and officers. The Company is organized and governed under the laws of under the Business Corporations Act of British Columbia, Canada and is headquartered in this jurisdiction. Primarily all the Company’s directors and officers are residents of Canada, and all of the Company’s assets are located outside of the United States. Consequently, it may be difficult for United States investors to realize in the United States upon judgments of United States courts predicated upon civil liabilities under the United States Securities Exchange Act of 1934, as amended. There is substantial doubt whether an original action could be brought successfully in Canada against any of such persons predicated solely upon such civil liabilities.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 117 

Dilution of Shareholders’ Interests as a Result of Issuance of Incentive Stock Options, Restricted Share Units (“RSUs”), Performance Share Units (“PSUs”) and Deferred Share Units (“DSUs”) to Employees, Directors, Officers and Consultants

The Company has granted, and in the future may grant, to directors, officers, insiders, employees, and consultants, options to purchase common shares as non-cash incentives to those persons. Such options have been, and may in future be, granted at exercise prices equal to market prices, or at prices as allowable under the policies of the TSX. The issuance of additional shares will cause existing shareholders to experience dilution of their ownership interests. As at December 31, 2020, there are outstanding share options exercisable into 3,355,469 common shares which, if exercised, would represent approximately 1.0% of the Company’s issued and outstanding shares as of that date.

The Company has also granted, and in the future may grant, to directors, officers, insiders, and employees, RSUs, PSUs and DSUs as incentive awards for service to those persons. Upon settlement, these awards entitle the recipient to receive common shares, a cash equivalent, or combination thereof. The choice of settlement method is at the Company’s sole discretion. As at December 31, 2020, there are vested RSUs, PSUs and DSUs outstanding which could result in the issuance of up to 2,426,489 common shares. If exercised, these would represent approximately 0.68% of the Company’s issued and outstanding shares as of that date.

If all these incentive awards are exercised and issued, such issuance will cause a reduction in the proportionate ownership and voting power of all other shareholders. The dilution may result in a decline in the market price of the Company’s common shares.

Dilution of Shareholders’ Interests as a Result of Issuances of Additional Shares

Depending on the Company’s exploration, development and capital investment plans, acquisition activities, and operating and working capital requirements, the Company may issue additional common shares as a means of raising capital. In the event that the Company is required to issue additional shares or decides to enter into joint venture arrangements with other parties in order to raise financing through the sale of equity securities, investors’ interests in the Company will be diluted and investors may suffer dilution in their net book value per share depending on the price at which such securities are sold.

Trading of the Company’s Shares May Be Restricted by the SEC’s “Penny Stock” Regulations Which May Limit a Stockholder’s Ability to Buy and Sell the Shares

The SEC has adopted regulations which generally define “penny stock” to be any equity security that has a market price (as defined) less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exceptions. The Company’s securities are covered by the penny stock rules, which impose additional sales practice requirements on broker-dealers who sell to persons other than established customers and “accredited investors” (as defined). The penny stock rules require a broker-dealer to provide very specific disclosure to a customer who wishes to purchase a penny stock, prior to the purchase. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for the stock that is subject to these penny stock rules. Consequently, these penny stock rules may affect the ability of broker-dealers to trade the Company’s securities.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 118 

The Company Does Not Expect to Declare or Pay Any Dividends

The Company has not declared or paid any dividends on its common stock since inception, and does not anticipate paying any such dividends for the foreseeable future.

Credit and Counterparty Risk

Credit risk is the risk of financial loss if a customer or counterparty fails to meet its contractual obligations. The Company’s credit risk relates primarily to cash and cash equivalents, trade receivables in the ordinary course of business, and value added tax refunds primarily due from the Mexico taxation authorities, and other receivables. The Company sells and receives payment upon delivery of its doré and concentrates primarily through international organizations. These are generally large and established organizations with good credit ratings. Payments of receivables are scheduled, routine and received within the specific terms of the contract. If a customer or counterparty does not meet its contractual obligations, or if they become insolvent, the Company may incur losses for products already shipped and be forced to sell greater volumes of concentrate than intended in the spot market, or there may be no market for the concentrates, and the Company’s future operating results may be materially adversely impacted as a result.

Internal Controls over Financial Reporting

The Company documented and tested its internal controls over financial reporting during its most recent fiscal year in order to satisfy the requirements of Section 404 of the Sarbanes-Oxley Act (“SOX”). SOX requires an annual assessment by management and an independent assessment by the Company’s independent auditors of the effectiveness of the Company’s internal controls over financial reporting. For the year ended December 31, 2020, the Company qualified as an “emerging growth company” under the United States Securities Exchange Act of 1934 and therefore is eligible to forego the requirements for independent assessment of its internal controls over financial reporting under SOX. Notwithstanding, the Company has undergone an independent assessment of its internal controls over financial reporting under SOX for the year ended December 31, 2020 by its independent auditors, but to the extent it retains its “emerging growth company” status, may not do so in future periods.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 119 

The Company may fail to achieve and maintain the adequacy of its internal controls over financial reporting as such standards are modified, supplemented, or amended from time to time, and the Company may not be able to ensure that it can conclude on an ongoing basis that its internal controls over financial reporting are effective. The Company’s failure to maintain effective internal controls over financial reporting could result in the loss of investor confidence in the reliability of its financial statements, which in turn could harm the Company’s business and negatively impact the trading price of its common shares. In addition, any failure to implement required new or improved controls, or difficulties encountered in their implementation, could harm the Company’s operating results or cause it to fail to meet its reporting obligations. There can be no assurance that the Company will be able to remediate material weaknesses, if any, identified in future periods, or maintain all the controls necessary for continued compliance, and there can be no assurance that the Company will be able to retain sufficient skilled finance and accounting personnel, especially in light of the increased demand for such personnel among publicly traded companies. Future acquisitions of companies may provide the Company with challenges in implementing the required processes, procedures and controls in its acquired operations. Acquired companies may not have disclosure controls and procedures or internal control over financial reporting that are as thorough or effective as those required by the securities laws currently applicable to the Company.

No evaluation can provide complete assurance that the Company’s internal control over financial reporting will detect or uncover all failures of persons within the Company to disclose material information otherwise required to be reported. The effectiveness of the Company’s controls and procedures could also be limited by simple errors or faulty judgment. The challenges involved in implementing appropriate internal controls over financial reporting will likely increase with the Company’s plans for ongoing development of its business and this will require that the Company continues to improve its internal controls over financial reporting. Although the Company intends to devote substantial time and incur costs, as necessary, to ensure ongoing compliance, the Company cannot be certain that it will be successful in complying with SOX.

Climate Change

Extreme weather events (for example, prolonged drought, or the increased frequency and intensity of storms) have the potential to disrupt the Company’s operations and the transportation routes that the Company uses. The Company’s ability to conduct mining operations depends upon access to the volumes of water that are necessary to operate its mines and processing facilities. Changes in weather patterns and extreme weather events, either due to normal variances in weather or due to global climate change, could adversely impact the Company’s ability to secure the necessary volumes of water to operate its facilities.

The Coricancha mine has in the past experienced damage from flooding during periods of excessive rain. Increased precipitation, either due to normal variances in weather or due to global climate change, could result in flooding that may adversely impact mining operations and could damage the Company’s facilities, plant and operating equipment. Accordingly, extreme weather events and climate change may increase the costs of operations and may disrupt operating activities, either of which would adversely impact the profitability of the Company.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 120 

9. DIVIDENDS

Holders of the Company’s common shares are entitled to receive such dividends as may be declared from time to time by the Board, in its discretion, out of funds legally available for that purpose. The Company intends to retain future earnings, if any, for use in the operation and expansion of its business and does not intend to pay any cash dividends in the foreseeable future.

10. DESCRIPTION OF CAPITAL STRUCTURE

The Company’s authorized share capital consists of an unlimited number of common shares without par value, an unlimited number of Class A preferred shares without par value issuable in series, and an unlimited number of Class B preferred shares without par value issuable in series. As at December 31, 2020, the issued share capital consisted of 355,032,512 common shares. No Class A preferred shares or Class B preferred shares were issued or outstanding.

Common Shares

Subject to the rights of the holders of the Class A preferred shares and the Class B preferred shares of the Company, holders of common shares of the Company are entitled to dividends if, as and when declared by the directors. Holders of common shares of the Company are entitled to one vote per common share at meetings of shareholders except at meetings at which only holders of a specified class of shares are entitled to vote. Upon liquidation, dissolution or winding-up of the Company, subject to the rights of holders of the Class A preferred shares and the Class B preferred shares, holders of common shares of the Company are to share rateably in the remaining assets of the Company as are distributable to holders of common shares. The common shares are not subject to redemption or retraction rights, rights regarding purchase for cancellation or surrender, or any exchange or conversion rights.

Class A Preferred Shares

Class A preferred shares may be issued from time to time in one or more series, and the directors may fix from time to time before such issue the number of Class A preferred shares of each series and the designation, rights and privileges attached thereto including any voting rights, dividend rights, redemption, purchase or conversion rights, sinking fund or other provisions. The Class A preferred shares rank in priority over common shares and any other shares ranking by their terms junior to the Class A preferred shares as to dividends and return of capital upon liquidation, dissolution or winding up of the Company or any other return of capital or distribution of the assets of the Company.

Class B Preferred Shares

Class B preferred shares may be issued from time to time in one or more series, and the directors may fix from time to time before such issue the number of Class B preferred shares of each series and the designation, rights and privileges attached thereto including any voting rights, dividend rights, redemption, purchase or conversion rights, sinking fund or other provisions. The Class B preferred shares rank in priority over common shares and any other shares ranking by their terms junior to the Class B preferred shares as to dividends and return of capital upon liquidation, dissolution or winding up of the Company or any other return of capital or distribution of the assets of the Company.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 121 

11. MARKET FOR SECURITIES

11.A. TRADING PRICE AND VOLUME

The Company’s common shares trade on the TSX and the NYSE American, trading under the symbols GPR and GPL, respectively.

The following table sets forth the price ranges in Canadian dollars and trading volume of the common shares of the Company as reported by the TSX for the periods indicated:

Period	High	Low	Volume
	(CAD$)	(CAD$)
January 2020	0.85	0.65	4,183,185
February 2020	0.85	0.56	4,160,369
March 2020	0.73	0.3175	7,528,492
April 2020	0.85	0.41	6,737,419
May 2020	0.77	0.54	12,157,476
June 2020	0.69	0.54	11,694,010
July 2020	1.20	0.68	16,157,198
August 2020	1.42	1.10	16,339,541
September 2020	1.375	1.07	8,632,175
October 2020	1.22	0.97	6,438,258
November 2020	1.20	0.97	5,090,973
December 2020	1.18	0.99	6,411,669

The following table sets forth the price ranges in US dollars and trading volume of the common shares of the Company as reported by the NYSE American for the periods indicated:

Period	High	Low	Volume
	(US$)	(US$)
January 2020	0.655	0.495	28,295,070
February 2020	0.649	0.42	23,611,752
March 2020	0.5473	0.2261	42,312,210
April 2020	0.62	0.29	39,428,549
May 2020	0.55	0.384	77,489,893
June 2020	0.51	0.3998	61,341,057
July 2020	0.90	0.476	85,950,235
August 2020	1.07	0.7706	89,991,254
September 2020	1.05	0.805	52,229,458
October 2020	0.9299	0.74	35,609,919
November 2020	0.93	0.75	28,708,751
December 2020	0.92	0.781	36,507,593

11.B. PRIOR SALES

The following table sets forth the date, price and number of stock options that were granted by the Company during the financial year ended December 31, 2020:

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 122 

Stock Options⁽¹⁾

Date of Issuance	Exercise Price per Security (C$)	Aggregate Number
April 9, 2020	$0.54 per share	5,579,000
April 21, 2020	$0.67 per share	576,000
July 6, 2020	$0.73 per share	100,000
Total:		6,255,000

Note:

1. As at December 31, 2020, the Company had 9,708,633 stock options outstanding.

The following table sets forth the date and number of restricted share units, performance share units and deferred share units granted by the Company in the financial year ended December 31, 2020:

Restricted Share Units, Performance Share Units and Deferred Share Units

Date of Issuance	Type of Securities Issued (1)	Number of Securities Issued
April 9, 2020	Deferred Share Units	1,525,366
April 9, 2020	Performance Share Units	1,278,200
April 9, 2020	Restricted Share Units	1,403,500
April 21, 2020	Deferred Share Units	318,420
April 21, 2020	Performance Share Units	232,500
April 21, 2020	Restricted Share Units	232,500
May 22, 2020	Deferred Share Units	86,753
July 1, 2020	Deferred Share Units	237,400
Total:		5,314,639

Note:

1. As at December 31, 2020, the Company had 2,420,189 Deferred Share Units outstanding, 1,904,500 Performance Share Units outstanding and 1,911,434 Restricted Stock Units outstanding.

As at December 31, 2020, the Company had 9,749,727 warrants to purchase Common Shares outstanding and no warrants were granted by the Company in the financial year ended December 31, 2020.

12. ESCROWED SECURITIES

As at December 31, 2020, there were no escrowed securities or securities subject to contractual restriction on transfer.

13. DIRECTORS AND OFFICERS

13.A. NAMES, OCCUPATIONS AND SECURITY HOLDINGS

At the date of this AIF, the directors and executive officers of the Company are as follows:

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Annual Information Form for the year ended December 31, 2020 123 

Name and Residence	Office Held with the Company	Principal Occupation or Employment for the Past Five Years
DAVID GAROFALO, CPA, CA, ICD.D British Columbia, Canada	Board Chair and Director of the Company since April 2020	Chairman and CEO, Gold Royalty Corp. since August 2020 Chairman and Chief Executive Officer, Marshall Precious Metals Fund since December 2019 President and CEO and Director, Goldcorp Inc. from January 2016 to April 2019 President, CEO and Director, Hudbay Minerals Inc. from July 2010 to December 2015
JOSEPH GALLUCCI, MBA (1), (3) Quebec, Canada	Director of the Company since April 2020	Managing Director, Head of Mining, Investment Banking, Laurentian Bank Securities Inc. since March 2019 Principal, Managing Director, Investment Banking, Eight Capital from December 2016 to January 2019 Managing Director, Head of Metals and Mining Research, Dundee Capital Markets from June 2012 to December 2016
R.W. (BOB) GARNETT, CPA, CA, ICD.D (1), (3) British Columbia, Canada	Director of the Company since May 2011 Lead Independent Director from November 2019 to April 2020 Board Chair from February 2012 to July 2019	Commissioner, British Columbia Financial Institutions Commission from May 2012 to June 2018 President, Sagebrush Golf and Sporting Club from September 2012 to 2015 and Chief Financial Officer from 2006 to 2012 Director, Media Valet Inc. (formerly VRX Worldwide Inc.) since 2009
ALAN HAIR, CEng MIMMM, ICD.D (2), (4), (5) Ontario, Canada	Director of the Company since April 2020	Independent Director, Gold Royalty Corp. since November 2020 Independent Director, Bear Creek Mining Corporation since September 2019 President & Chief Executive Officer, Hudbay Minerals Inc. from January 2016 to July 2019 Chief Operating Officer, Hudbay Minerals Inc. from June 2012 to December 2015
ROBERT HENDERSON, P.Eng British Columbia, Canada	President, Chief Executive Officer and Director of the Company since April 2020	President, Chief Executive Officer and Director of the Company since April 2020 President & CEO, Amerigo Resources Ltd. from October 1, 2015 to December 2019 Director of BQE Water Inc. since 2018
JOHN JENNINGS, MBA, CFA (1), (2) British Columbia, Canada	Director of the Company since June 2012	Practice Lead, Board Director and Executive Search with WATSON Advisors Inc. since October 2017 Senior Client Partner, Korn Ferry International from 2012 to May 2017
W. JAMES MULLIN (3), (4), (5) British Columbia, Canada	Director of the Company since August 2013	Retired Professional Engineer in the Province of British Columbia Served as Senior Vice President of North American Operations for Newmont Mining Corporation until his retirement in 2001 Independent consultant in the mining industry, and owned and operated a mid-sized cattle ranch

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Annual Information Form for the year ended December 31, 2020 124 

Name and Residence Office Held with the Company Principal Occupation or Employment for the Past Five Years

ELISE REES, FCPA, FCA, ICD.D (1), (2) British Columbia, Canada	Director of the Company since April 2017	Director of Enmax Corporation since September 2015 Director and Board Chair of EasyPark, Parking Corporation of Vancouver from 2013 to 2018 Director of Westland Insurance since 2016 to 2021 Director of the Greater Vancouver Board of Trade from 2015 to 2019 BC Market Leader & Managing Partner Transaction Advisory Practice, at Ernst & Young LLP from 1998 to June 2016
KEVIN ROSS, B.Sc. (Hon) Min Eng., MBA (3), (4), (5) British Columbia, Canada	Director of the Company since May 2019	Chief Operating Officer of Orca Gold Inc. since August 2016 Director, Montage Gold Corp., a subsidiary of Orca Gold Inc., since August 2019 Chief Operating Officer, RB Energy Inc. from 2014 to 2015
JIM A. ZADRA, CPA, CA British Columbia, Canada	Chief Financial Officer	Chief Financial Officer of the Company since July 2012 Corporate Secretary of the Company from September 2011 to July 2020 Vice President, Finance of the Company from September 2011 to July 2012 Director and Audit Committee Chair of Good Natured Products Inc. since March 2016
NEIL HEPWORTH, M.Sc. Engineering (Mining), C. Eng. Sesimbra, Setubal, Portugal	Chief Operating Officer	Chief Operating Officer since October 2019 Self-Employed Consultant/Interim Positions from 2016 to 2019 Chief Operating Officer/Vice President Technical Jaguar Mining Inc. from 2016 to 2019
SHANNON D. WEBBER British Columbia, Canada	Vice President, Legal and Corporate Secretary	Vice President, Legal and Corporate Secretary since July 2020 Adjunct Faculty Member, Allard School of Law, UBC since September 2020 General Counsel, Alterra Power Corp. from May 2014 to May 2018

Notes:

1. Member of Audit Committee

2. Member of People and Culture Committee

3. Member of Nominating and Corporate Governance Committee

4. Member of the Safety, Health, Environment and Social Committee

5. Member of the Technical Operations Committee

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In addition, the Board will, from time-to-time, appoint ad-hoc committees for specific purposes as circumstances require.

Each of the directors is elected to hold office until the next annual meeting of the Company or until a successor is duly elected or appointed. The next annual meeting of the Company is expected to be held in June 2021.

As of March 11, 2021, the directors and executive officers as a group beneficially own, directly or indirectly, or exercise control or direction over 967,425 common shares representing 0.27% of the common shares outstanding before giving effect to the exercise of options to purchase common shares held by such directors and executive officers. The statement as to the number of common shares beneficially owned, directly or indirectly, or over which control or direction is exercised by the directors and executive officers of the Company as a group is based upon information furnished by the directors and executive officers.

13.B. CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES OR SANCTIONS

Other than set forth below, none of Great Panther’s directors or executive officers:

(a) are, as at the date of this AIF, or have been, within 10 years before the date of this AIF, a director, chief executive officer or chief financial officer of any company (including Great Panther) that,

(i) was subject to cease trade order, an order similar to a cease trade order, or an order that denied the relevant company access to any exemption under securities legislation (collectively, an “Order”) that was issued while the director or executive officer was acting in the capacity as director, chief executive officer or chief financial officer; or

(ii) was subject to an Order that was issued after the director or executive officer ceased to be a director, chief executive officer or chief financial officer and which resulted from an event that occurred while that person was acting in the capacity as director, chief executive officer or chief financial officer;

(b) are, as at the date of this AIF, or has been within 10 years before the date of this AIF, a director or executive officer of any company (including Great Panther) that, while that person was acting in that capacity, or within a year of that person ceasing to act in that capacity, became bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency or was subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold its assets; or

(c) have, within the 10 years before the date of this AIF, become bankrupt, made a proposal under any legislation relating to bankruptcy or insolvency, or become subject to or instituted any proceedings, arrangement or compromise with creditors, or had a receiver, receiver manager or trustee appointed to hold the assets of the director or executive officer.

In addition, none of Great Panther’s directors and executive officers has been subject to:

(d) any penalties or sanctions imposed by a court relating to securities legislation or by a securities regulatory authority or has entered into a settlement agreement with a securities’ regulatory authority; or

(e) any other penalties or sanctions imposed by a court or regulatory body that would likely be considered important to a reasonable shareholder in making an investment decision.

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As of the date of this AIF, Great Panther is not aware of any shareholder holding a sufficient number of securities of Great Panther to affect materially the control of Great Panther.

Mr. Ross is a director of the Company. Mr. Ross was previously the Chief Operating Officer of RB Energy Inc., (“RBI”) from April 2014 to May 2015. On October 14, 2014, RBI applied for and obtained an Initial Order (the “Initial Order”) to commence proceedings under the Companies’ Creditors Arrangement Act (the “CCAA”) in the Québec Superior Court (the “Court”). On October 15, 2014, RBI announced that the Court issued an Amended and Restated Initial Order in respect of RBI and certain of its subsidiaries under the CCAA, which granted an initial stay of creditor proceedings to November 13, 2014. The Initial Order was subsequently extended to April 30, 2015. On May 8, 2015, the Court appointed a receiver, Duff & Phelps Canada Restructuring Inc., under the Bankruptcy and Insolvency Act, and terminated the CCAA proceedings. The TSX-de-listed RBI’s common shares effective at the close of business on November 24, 2014 for failure to meet the continued listing requirements of the TSX. Mr. Ross ceased employment as Chief Operating Officer of RBI in May 2015.

Mr. Garofalo is a director of the Company. He was a director of Colossus Minerals Inc. (“Colossus”) from December 2012 to November 2013. On January 14, 2014, Colossus announced that it had filed a notice of intention to make a proposal under the Bankruptcy and Insolvency Act (Canada), which was intended to enable Colossus to pursue a restructuring process. Colossus’ proposal and plan of reorganization (“Plan”) was approved by creditors on February 25, 2014 and, following the approval of the Ontario Superior Court of Justice (Commercial List) in March 2014, was implemented by Colossus in April 2014. The Plan effectively converted all of Colossus’ outstanding debt, and its obligations under a precious metals stream agreement, into equity of Colossus.

13.C. CONFLICTS OF INTEREST

To the best of the Company’s knowledge, and other than as disclosed herein, there are no known existing or potential material conflicts of interest between the Company (or a subsidiary of the Company) and any director or officer of the Company (or a subsidiary of the Company), except that certain of the directors and officers serve as directors, officers or members of management of other public companies and therefore it is possible that a conflict may arise between their duties as a director or officer of the Company and their duties as a director, officer, promoter or member of management of such other companies.

The directors and officers of the Company are aware of the existence of laws governing accountability of directors and officers for corporate opportunity and requiring disclosure by directors of conflicts of interest and the Company relies upon such laws in respect of any directors’ and officers’ conflicts of interest or in respect of any breaches of duty by any of its directors and officers. All such conflicts have been disclosed by such directors and officers in accordance with the Business Corporations Act (British Columbia) and they have governed themselves in respect thereof to the best of their ability in accordance with the obligations imposed upon them by law.

14. AUDIT COMMITTEE INFORMATION

14.A. AUDIT COMMITTEE CHARTER

The Audit Committee is ultimately responsible for the policies and practices relating to integrity of financial and regulatory reporting, as well as internal controls to achieve the objectives of safeguarding of corporate assets, reliability of information, and compliance with policies and laws.

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The Audit Committee’s charter sets out its mandate and responsibilities and is attached as Schedule “A” to this AIF.

14.B. MEMBERS OF THE AUDIT COMMITTEE

The members of the Company’s Audit Committee are Elise Rees (Chair), Joseph Gallucci, Bob Garnett, and John Jennings. Each of these individuals are independent and financially literate within the meaning of National Instrument 52-110 Audit Committees. The relevant education and experience of each Audit Committee member are outlined below:

Elise Rees, FCPA, FCA, ICD.D (Audit Committee Chair)

Ms. Rees is an experienced director, having served on the boards of a number of profit and not-for-profit organizations, including as Board Chair, Treasurer, and Audit and Finance Committee Chair. She currently serves on the boards of Enmax Corporation and was a Director of The Greater Vancouver Board of Trade until November 2019, Director of Westland Insurance until 2021, as well as a director of Alcanna Inc. from August 2018 to February 2019. Ms. Rees retired from Ernst & Young LLP in June 2016 after a thirty-five-year career in professional accountancy. She spent eighteen years as a Partner with Ernst & Young, LLP with the last 14 years of her tenure focused on acquisitions, mergers and corporate reorganizations. She has a breadth of experience in a large variety of industries with specific focus on mining, infrastructure, transportation, technology, real estate, retail and distribution. Ms. Rees has been recognized for her leadership with the designation of Fellow Chartered Professional Accountant and Fellow Chartered Accountant in 2007; Community Builder Award, Association of Women in Finance (2012); Influential Woman in Business Award (2007); and the Ernst & Young Rosemarie Meschi Award for Advancing Gender Diversity (2007). She was also recognized as one of the Top 100 Most Powerful Women in Canada in 2015 by Women’s Executive Network. Ms. Rees has a B.A. (Hons) from the University of Strathclyde, Scotland and is a graduate of the ICD-Rotman Directors Education Program with the designation of ICD.D.

Joseph Gallucci, MBA

Mr. Gallucci is a capital markets executive with over 15 years of experience in investment banking and equity research focused on mining, base metals, precious metals and bulk commodities on a global scale. He is currently the Managing Director and Head of Mining Investment Banking at Laurentian Bank Securities Inc. His career has spanned across various firms including BMO Capital Markets, GMP Securities, Dundee Securities, and he was a founding principal of Eight Capital where he led their Mining Investment Banking Team. In his previous roles, he has acquired experience in corporate finance, mergers, acquisitions, business and operational development, financings and corporate strategy. He was directly involved in raising over $1 billion for mining companies with focused expertise on Canadian base metal companies. Prior to investment banking, Mr. Gallucci spent over a decade in equity research with a focus on global mining at both GMP and Dundee Securities. At Dundee Securities, he was a Managing Director and Head of the Metals and Mining Research Team, where he oversaw the entire mining franchise. He holds a Bachelor of Commerce degree from Concordia University and an MBA in Investment Management from the Goodman Institute of Investment Management.

R.W. (Bob) Garnett, CPA, CA, ICD.D

Mr. Garnett is a Chartered Professional Accountant in the Province of British Columbia (1973) and obtained a Bachelor of Arts (Commerce) from Simon Fraser University in 1972. In 2007, he graduated from the ICD-Rotman Directors Education Program with the designation of ICD.D. In 2012, he was appointed a Commissioner of the Financial Institutions Commission by the Lieutenant Governor in Council on the recommendation of the Minister of Finance of the Province of British Columbia, which appointment expired in June 2018. Mr. Garnett also currently serves on the board of Media Valet Inc., a Vancouver based company that provides cloud-based digital asset management software to many of the world’s leading brands and chairs the Audit Committee. Mr. Garnett also served as President of a world-class ranked golf facility located near Merritt, British Columbia from 2012 to 2015.

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John Jennings, MBA, CFA

Mr. Jennings is employed as Practice Co-Lead, Board Director and Executive Search with WATSON Advisors Inc., a leading consulting firm focused on corporate governance and recruiting board directors and executive talent. Prior to joining WATSON in October 2017, he was a Senior Client Partner with Korn Ferry International from 2012 to May 2017. Upon earning his B.Sc. (Chemistry) from Western University, Mr. Jennings started a career in precious metals mining operations before becoming a sell-side mining analyst in Toronto. Following completion of his Master of Business Administration from London Business School, he entered a 26-year career in investment banking with leading firms in the UK and Canada, including as CEO of an investment firm. Mr. Jennings is an experienced director, having served on the boards of a number of profit and purpose-driven organizations, including as Board Chair, and Audit and Finance Committee Chair. He currently serves on the Executive Committee of the BC Chapter of the Institute of Corporate Directors and the Faculty Advisory Board of the Sauder School of Business at the University of British Columbia. He holds the designation of Chartered Financial Analyst.

14.C. PRE-APPROVAL POLICY

The Audit Committee has adopted specific policies for the engagement of non-audit services to be provided to the Company by the external auditor.

Annually, the Audit Committee pre-approves a budget for specified non-audit services within which limits the Company may contract the services of the Company’s external auditor.

14.D. EXTERNAL AUDITOR SERVICE FEES

The following table sets out the aggregate fees billed to the Company by its external auditor, KPMG LLP, in each of the last two fiscal years:

Category	Year ended December 31, 2020	Year ended December 31, 2019
Audit Fees(1)	C$ 991,875	C$ 1,065,000
Audit-Related Fees	Nil	Nil
Tax Fees(2)	Nil	Nil
All Other Fees(3)	C$ 19,000	C$ 18,000
Total	C$ 1,010,875	C$ 1,083,000

Notes: 

1. “Audit Fees” include fees billed by the Company’s auditor for the 2020 and 2019 periods related to the audits of the Company’s consolidated financial statements and internal controls over financial reporting, and the reviews of the Company’s interim financial statements.

2. “Tax Fees” are not billed to the Company as tax services are not provided to the Company by the Company’s auditor.

3. “All Other Fees” include fees billed for the involvement with payroll audits of the Company’s Mexican subsidiaries.

15. LEGAL PROCEEDINGS AND REGULATORY ACTIONS

During the financial year ended December 31, 2020, the Company was party to the following legal proceedings that relate to the Tucano mine, as described in the Company’s audited consolidated financial statements for the years ended December 31, 2020 and 2019 (the “Audited Financial Statements”). Additional information regarding the accounting for these legal proceedings is included in the Audited Financial Statements. In addition to these legal proceedings, the Company may from time to time become and is, party to litigation incidental to its business. Such other litigation matters are presently deemed by the Company to not be material on the basis that they do not involve any claim on an individual basis for damages in excess of ten per cent of the current assets of the Company.

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15.A. Various Claims related to Brazil Indirect Taxes and Labour Matters

As a result of the Acquisition, the Company has various litigation claims for a number of governmental assessments related to indirect taxes, and labour disputes associated with former employees and contract labor in Brazil.

The indirect tax matter principally relates to claims for the state sales tax, Imposto Sobre Operações Relativas à Circulação de Mercadorias e Serviços de Transporte Interestadual de Intermunicipal e de Comunicações (“ICMS”), which are mostly related to rate differences. For these claims, the possibility of loss was not considered probable by the Company’s Brazilian attorneys, and no provision has been recognized in the Audited Financial Statements.

The labour matters principally relate to claims made by former employees and contract labour for the equivalent payment of all social security and other related labour benefits, as well as consequential tax claims, as if they were regular employees. As of December 31, 2020, the items for which a loss was probable related to the labour disputes, inclusive of any related interest, amounted to approximately $1.6 million, for which a provision was recognized.

15.B. Environmental Damages - William Creek

In May 2009, The State of Amapá Public Prosecutor (“MPAP”) filed a public civil action seeking payment for environmental damages caused to William Creek, as well as to other creeks located in the region of influence of the Zamin Amapá Mineração (“Zamin”) and Tucano mines. The alleged damage is related to the modification of the creek’s riverbed, soiling and sedimentation. In January 2018, the Amapá State Court ordered Mina Tucano to pay a fine of approximately $1.1 million (BRL 6.0 million plus interest and inflation counted as from the date of the damage) to the State Environmental Fund. As at December 31, 2020, the updated value with interest and inflation is approximately $5.7 million (BRL 29.7 million). The Company is in the process of appealing and the likelihood of total loss is not considered probable based on legal advice received. However, an adjusted lower fine is considered probable and the Company has accrued the amount payable considered more likely than not in long-term other liabilities, representing the Company’s best estimate of the cost to settle the claim.

15.C. Archaeological Sites Damage

In May 2016 and June 2016, respectively, The Brazilian Federal Public Prosecutor (“MPF”) filed public civil actions seeking compensation to be paid by Zamin, the State of Amapá and Mina Tucano for damages to 34 archaeological sites as a result of activities in 2006-2009 at the Amapá-MMX Iron Ore Project currently owned by Zamin and as a result of activities in 2004-2010 at the Amapari Project and for the State of Amapá failing to take proper action during the respective environmental licensing procedures (the “Archaeological Civil Actions”).

In the three months ended December 31, 2020, the 6th Federal Lower Court of Macapá ratified a settlement agreement between Tucano and the MPF in respect of the Archeological Civil Actions (the “Settlement Agreement”). Under the terms of the Settlement Agreement, as full and final settlement of the Archaeological Civil Actions, Mina Tucano agreed to earmark BRL 8 million, no later than December 31, 2021, for implementation of socio-environmental measures for the benefit of the State of Amapá community, including a combination of community food donations in the first three months following ratification and those socio-environmental measures defined by mutual agreement of Tucano and MPF for the benefit of the communities in the Municipalities of Pedra Branca do Amapari and Serra do Navio funded in the second half of 2021. The Instituto do Patrimônio Histórico e Artístico Nacional - Historic and Artistic National Heritage Institute (“IPHAN”) have sought clarification of the settlement agreement requesting certain of the settlement funds be designated specifically to IPHAN.

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In related proceedings, Mina Tucano is in the process of appealing fines and damages arising in Federal Court of Appeal. The likelihood of total loss is not considered probable based on legal advice received. However, an adjusted lower fine is considered probable and the Company has accrued the amount payable considered more likely than not in long-term other liabilities, representing the Company’s best estimate of the cost to settle the claim.

15.D. Cyanide Usage

In October 2018, the public prosecutor’s office of labor affairs for the State of Amapá filed a public civil action seeking payment for potential damages and medical costs in relation to the Company’s employees’ exposure to cyanide used in the processing of its gold. In August 2019, a regional labour court ordered Mina Tucano to pay compensation of approximately BRL 4 million plus interest and inflation for these damages, in addition to surveillance and funding medical costs of any diseases to Mina Tucano’s internal and outsourced employees and former employees, and to stop using cyanide in its production process within one year from the final non-appealable decision on the proceedings. Mina Tucano is in the process of appealing to a Federal Superior Labour Court all aspects of the regional labour court decision. In March 2020, it was accepted that the appeal, exclusively with respect to whether or not the use of cyanide may continue, be admitted for consideration by the Federal Superior Labour Court and the balance of the decision has not yet been accepted for consideration and is under appeal. Mina Tucano is not aware of any circumstances of former or current employees who have suffered health consequences from exposure to cyanide at the Company’s operations. In addition, the Company notes that the use of cyanide in the processing of gold is common in the industry within Brazil and is not prohibited by any federal law in Brazil and that the Company complies with proper safety standards in the use and handling of cyanide in its operations. The Company believes the claims are without merit and that it is too early in the process to be able to determine the ultimate outcome. This assessment will be reviewed after a decision is reached on whether an appeal will be admitted to Superior Labor Court.

16. INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS

Other than as stated elsewhere in this AIF and in the Annual Financial Statements, to the best of the Company’s knowledge, none of the Company’s directors, executive officers or any shareholder who beneficially owns or controls or directs, directly or indirectly, more than 10% of any class or series of voting securities of the Company, or any of their respective associates or affiliates, had any material interest, directly or indirectly, in any transaction within the three most recently completed financial years or during the current financial year that has materially affected or is reasonably expected to affect the Company.

17. TRANSFER AGENTS AND REGISTRARS

The transfer of the Company’s common shares is managed by Computershare Investor Services. The register of transfers for the common shares of the Company is located at 510 Burrard Street, 3rd Floor, Vancouver, British Columbia, Canada, V6C 3B9.

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18. MATERIAL CONTRACTS

18.A. LIST OF MATERIAL CONTRACTS

Below is a list of material contracts entered into and still in effect, which have been filed on SEDAR in accordance with the requirements of Section 12.2 of NI 51-102, each as defined below, unless otherwise noted:

1. Scheme Implementation Deed and Scheme;

2. MACA Agreement;

3. Coricancha Agreements; and

4. ATM Agreement.

Except as set forth above, the Company is not at present party to any other material contracts, other than material contracts entered into in the ordinary course of business and upon which the Company’s business is not substantially dependent.

18.B. DESCRIPTION OF MATERIAL CONTRACTS

18.B.1.a Scheme Implementation Deed, Scheme and MACA Agreement

The Company entered into a scheme implementation deed on September 23, 2018 to acquire all of the issued ordinary shares of Beadell, a gold mining company that was listed on the Australian Securities Exchange, which owned Tucano, by means of a scheme under the Australian Corporations Act 2001 (“Scheme”). In connection with the acquisition of Beadell, the Company also entered into the MACA Agreement.

On February 11, 2019, the Scheme was approved by the Company’s shareholders (96% in favour) and on February 12, 2019, the Scheme was also approved by 97% of the number of votes cast, and 75% of the number of Beadell shareholders present and voting, at the meeting of Beadell shareholders. On March 5, 2019, the Acquisition was completed.

Pursuant to the Scheme Implementation Deed and Scheme:

• Beadell shareholders received 0.0619 of the Company’s common shares for each Beadell share held (the “Exchange Ratio”). Upon completion of the Scheme, Beadell shareholders received approximately 103.6 million of the Company’s common shares equal to approximately 38% of the Company’s pro-forma outstanding common shares.

• Under concurrent arrangements, each Beadell warrant holder received a number of Company share purchase warrants equal to the number of their Beadell warrants multiplied by the Exchange Ratio at a price adjusted in accordance with the Exchange Ratio, and otherwise on the same terms and conditions as the original warrant. The Company issued the following pursuant to these arrangements on completion of the Scheme: (a) warrants to purchase 3,428,032 Great Panther Shares with an exercise price of $1.317 and an expiry date of May 17, 2022; and (b) warrants to purchase 6,321,695 Great Panther Shares with an exercise price of $1.317 and an expiry date of June 27, 2022. See Section 11.B of this Agreement for the issued and outstanding share purchase warrants.

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Some of the key closing conditions that were completed or satisfied included:

• The modification to MACA Limited’s (“MACA”) outstanding $54.7 million Australian dollar (A$) loan due from Beadell on terms satisfactory to Great Panther. On November 19, 2018, an agreement to modify the terms was reached and Great Panther, Beadell, Mina Tucano, MACA and Mineracão e Construcão Civil Limitada executed the Amended and Restated Deed of Acknowledgement of Debt, termination and Release of Open Pit Mining Services Contract dated effective March 5, 2019 (the “MACA Agreement”). Under the MACA Agreement, MACA agreed to consent to the change of control of Beadell, keep the loan in place with a term to June 2022, and other amendments with effect from the date of completion of the Scheme. During 2020, the Company repaid A$18.5 million under the MACA Agreement and an aggregate of A$3.8 million is required to be paid in 2021. On December 31, 2019, the Company agreed to convert up to A$15.0 million of the outstanding balance into common shares at a price equal to 95% of the 20-trading day volume weighted average price of the Company’s shares on the NYSE American with MACA limited to converting A$5.0 million in any quarter. Beadell remains liable for the full principal amount of the loan, however the Company guaranteed the first A$6.0 million in payments following the Acquisition, which payments have been completed. Under the terms of the MACA Agreement, the Company is required to pay to MACA an amount equal to 10% of the proceeds of future debt or equity financings (other than through the ATM Agreement defined below), net of direct costs and expenses of undertaking such financings, including legal, brokerage and advisor fees.

• Under the terms of the indenture agreement governing Beadell’s outstanding $10.0 million convertible debentures, the Company was required to make an offer to purchase all convertible debentures at a price equal to 105% of the principal amount, plus accrued and unpaid interest, upon the change of control. All of the holders of the convertible debentures accepted the Company’s repurchase offer.

• Consent to the change of control on behalf of Beadell’s senior secured lenders in Brazil (Santander and ITAU) was obtained and the loan was fully repaid in the second quarter of 2019.

Under the terms of the MACA Agreement, the loan amount is repayable on a change of control of Great Panther, Beadell or Mina Tucano.

18.B.1.b Coricancha Agreements

The Coricancha Agreements are defined and described in Section 6.A.1 of this AIF.

18.B.1.c ATM Agreement

On July 9, 2019, the Company entered into an At-the-Market Offering Agreement (the “ATM Agreement”) with H.C. Wainwright & Co. and Eight Capital. Under the ATM Agreement, the Company is entitled, at its discretion and from time-to-time during the term of the ATM Agreement, to sell common shares of the Company equal to the lesser of: i) 10% of the aggregate market value of the Company’s outstanding common shares as at the last trading day of the month before the month in which the first trade under the offering is made; and ii) aggregate gross proceeds of US$25 million. No shares have been sold under the ATM Agreement to the date of this AIF.

19. INTERESTS OF EXPERTS

The following is a list of the persons or companies named as having prepared or certified a report, valuation, statement or opinion described or included in a filing, or referred to in a filing, made under National Instrument 51-102 by the Company during, or relating to, Company’s most recently completed financial year, and whose profession or business gives authority to the report, valuation, statement or opinion made by the person or company:

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(i) Auditors: KPMG LLP is the external auditor of the Company and reported on the Company’s audited financial statements for the years ended December 31, 2020 and 2019 filed on SEDAR.

(ii) Tucano Technical Report Authors: Messrs. Fernando A. Cornejo, M.Eng., P. Eng., Neil Hepworth, M.Sc., C. Eng., MIMMM, Carlos H. B. Pires, B.Sc. Hons, MAusIMM CP. (Geo), Nicholas R. Winer, B.Sc Hons., FAusIMM, each of whom is from Great Panther and Reno Pressacco, M.Sc.(A), P.Geo. and Tudorel Ciuculescu, M.Sc., P.Geo., each respectively, from Roscoe Postle Associates Inc., co-authored the technical report entitled “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of The Tucano Gold Mine, Amapá State, Brazil” dated February 2, 2021, with an effective date of September 30, 2020.

(iii) Topia Technical Report Author, GMC Technical Report Co-Author and 2017 GMC Technical Report Author: Robert F. Brown, P.Eng. authored the technical report entitled “NI 43-101 Report on the Topia Mine Mineral Resource Estimates” dated February 28, 2019, with an effective date of July 31, 2018 and the technical report entitled “NI 43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine, and El Horcón and Santa Rosa Projects”, dated February 20, 2017, with an effective date of the information related to the El Horcón and Santa Rosa Projects of August 31, 2016 and co-authored the technical report entitled “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato and San Ignacio Operations, Guanajuato State, Mexico” dated December 22, 2020, with an effective date of July 31, 2020.

(iv) GMC Technical Report Co-Author: Mohammad Nourpour co-authored the technical report entitled “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato and San Ignacio Operations, Guanajuato State, Mexico” dated December 22, 2020, with an effective date of July 31, 2020.

(v) Coricancha Technical Report Authors: Ronald Turner, MAusIMM CP (Geo) from Golder; Daniel Saint Don, P. Eng., previously from Golder; and Jeffrey Woods, P.E., previously from Golder co-authored the technical report entitled “NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex”, dated July 13, 2018. The Coricancha Technical Report was submitted by Golder as Report Assembler of the work prepared by or under the supervision of the foregoing authors and Qualified Persons.

To the Company’s knowledge, each of the aforementioned firms or persons did not hold more than 1% of the outstanding securities of the Company or of any associate or affiliate of the Company when they prepared the reports referred to above or following the preparation of such reports. None of the aforementioned firms or persons received any direct or indirect interest in any securities of the Company or of any associate or affiliate of the Company in connection with the preparation of such reports.

Mr. Hepworth, Chief Operating Officer of Great Panther; Mr. Cornejo, Vice President of Operations, Brazil; Mr. Winer, Vice President of Exploration, Brazil; Mr. Pires, Master Geologist, Mina Tucano Ltda; Mr. Nourpour, Resource Geologist; and Mr. Brown, Resource Consultant, are each current or former employees of the Company or its subsidiaries. Based on information provided by the relevant persons, except as set forth above, none of the aforementioned firms or persons, nor any directors, officers or employees of such firms are currently expected to be elected, appointed or employed as a director, officer or employee of the Company or of any associate or affiliate of the Company.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 134 

KPMG LLP are the auditors of the Company and have confirmed with respect to the Company that they are independent within the meaning of the relevant rules and related interpretations prescribed by the relevant professional bodies in Canada and any applicable legislation or regulations and also that they are independent accountants with respect to the Company under all relevant US professional and regulatory standards.

20. ADDITIONAL INFORMATION

Additional information relating to the Company may be found on SEDAR at www.sedar.com.

Additional information including directors’ and officers’ remuneration and indebtedness, principal holders of the Company’s securities, and securities authorized for issuance under equity compensation plans, as applicable, is contained in the Company’s information circular for its most recent annual general meeting.

Additional financial information is provided in the Audited Financial Statements and 2020 MD&A which may be obtained upon request from Great Panther’s head office or may be viewed on the Company’s website (www.greatpanther.com) or on the SEDAR website under the issuer’s profile (www.sedar.com).

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 135 

SCHEDULE “A” CHARTER OF THE AUDIT COMMITTEE

GREAT PANTHER MINING LIMITED (the “Company”)

CHARTER OF THE AUDIT COMMITTEE

1. Mandate

The mandate of the Audit Committee (the “Committee”) of the board of directors (the “Board”) of the Great Panther Mining Limited (the “Company”) is to:

a. assist the Board in fulfilling its oversight responsibilities in respect of:

i. the quality and integrity of the Company’s financial statements, financial reporting processes and systems of internal controls and disclosure controls regarding risk management, finance, accounting, and legal and regulatory compliance;

ii. ensuring the independence and qualifications of the Company’s external auditors and appointing the external auditor;

iii. requiring the rotation of the audit partner every five years as required under Section 203 of the Sarbanes-Oxley Act of 2002 and that the External Auditor provide a plan for the orderly transition of audit engagement team members;

iv. the review of the periodic audits performed by the Company’s external auditors and the Company’s internal accounting department; and

v. management’s development and implementation of policies and processes in respect of accounting and financial reporting matters

vi. overseeing the non-audit services provided by the independent auditor;

vii. reviewing with management management’s evaluation of the effectiveness of internal controls; and

viii. assessing the Company’s enterprise risk management framework.

b. provide and establish open channels of communication between the Company’s management, internal accounting department, external auditor and directors;

c. oversight of all filings and disclosure documents required to be prepared by the Company pursuant to all applicable federal, provincial and state securities legislation and the rules and regulations of all securities commissions having jurisdiction over the Company;

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 136 

d. review and confirm the adequacy of procedures for the review of all public disclosure of financial information extracted or derived from the Company’s financial statements, and to periodically assess the adequacy of those procedures; and

e. establish procedures for:

i. the receipt, retention and treatment of complaints or concerns received by the Company regarding accounting, internal accounting controls or auditing matters, including, but not limited to, concerns about questionable accounting or auditing practices; and

ii. the confidential, anonymous submission by employees of the Company of such complaints or concerns.

The Committee will primarily fulfil its mandate by performing the duties set out in Section 7 hereof.

The Board and management of the Company will ensure that the Committee has adequate funding to fulfil its mandate.

2. Composition

The Committee will be comprised of members of the Board, the number of which will be determined from time to time by resolution of the Board, but will in no event be less than three directors. The composition of the Committee will be determined by the Board such that the membership and independence requirements set out in the rules and regulations, in effect from time to time, of any securities commissions (including, but not limited to, the Securities and Exchange Commission and the British Columbia Securities Commission) and any exchanges upon which the Company’s securities are listed (including, but not limited to, the Toronto Stock Exchange and the NYSE American) are satisfied (the said securities commissions and exchanges are hereinafter collectively referred to as the “Regulators”). All members shall, to the satisfaction of the Board of Directors, be “financially literate” as defined in NI 52-110 and meet the NYSE American financial literacy requirements. At least one member of the Committee shall have accounting or related financial management expertise to qualify as a “financial expert” as defined under SEC Regulation S-K.

3. Term of Office

The members of the Committee will be appointed or re-appointed by the Board on an annual basis. Each member of the Committee will continue to be a member thereof until such member’s successor is appointed, or until such member resigns or is removed by the Board. The Board may remove or replace any member of the Committee at any time. However, a member of the Committee will automatically cease to be a member of the Committee upon either ceasing to be a director of the Board or ceasing to meet the requirements established, from time to time, by any Regulators. Vacancies on the Committee will be filled by the Board.

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 137 

4. Committee Chair

The Board, or if it fails to do so, the members of the Committee, will appoint a chair from the members of the Committee. If the chair of the Committee is not present at any meeting of the Committee, an acting chair for the meeting will be chosen by majority vote of the Committee from among the members present. In the case of a deadlock in respect of any matter or vote, the chair will refer the matter to the Board for resolution. The Committee may appoint a secretary who need not be a member of the Board or Committee.

The Chair of the Committee:

a. provides leadership to the Committee with respect to its functions as described in this Charter and as otherwise may be appropriate, including overseeing the logistics of the operations of the Committee;

b. chairs meetings of the Committee, unless not present, including in camera sessions, and reports to the Board following each meeting of the Committee on the findings, activities and any recommendations of the Committee;

c. ensures that the Committee meets as often as it deems necessary, but will not meet less than once quarterly;

d. in consultation with the Chair of the Board and the Committee members, establishes a calendar for holding meetings of the Committee;

e. establishes the agenda for each meeting of the Committee, with input from other Committee members, the Chair of the Board, and any other parties as applicable;

f. acts as liaison and maintains communication with the Chair of the Board and the Board to optimize the effectiveness of the Committee. This includes reporting to the full Board on all proceedings and deliberations of the Committee at the first meeting of the Board after each Committee meeting and at such other times and in such manner as the Committee considers advisable;

g. reports annually to the Board on the role of the Committee and the effectiveness of the Committee role in contributing to the objectives and responsibilities of the Board as a whole;

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 138 

h. ensures that the members of the Committee understand and discharge their duties and obligations;

i. fosters ethical and responsible decision making by the Committee and its individual members;

j. together with the Corporate Governance and Nominating Committee and its individual members ensures that resources and expertise are available to the Committee so that it may conduct its work effectively and efficiently and pre-approves work to be done for the Committee by consultants;

k. facilitates effective communication between members of the Committee and management; and

l. performs such other duties and responsibilities as may be delegated to the Chair by the Board from time to time.

5. Meetings

The time and place of meetings of the Committee and the procedures at such meetings will be determined, from time to time, by the members thereof, provided that:

a. a quorum for meetings will be a majority of the members of the Committee, present in person or by telephone or other telecommunication device that permits all persons participating in the meeting to speak to and hear each other. The Committee will act on the affirmative vote of a majority of members present at a meeting at which a quorum is present. The Committee may also act by unanimous written consent in lieu of meeting;

b. the Committee may meet as often as it deems necessary, but will not meet less than once quarterly;

c. the Committee shall meet within 45 days following the end of each of the first three financial quarters to review and discuss the unaudited financial results for the preceding quarter and the related MD&A and shall meet within 90 days following the end of the fiscal year end to review and discuss the audited financial results for the year and related MD&A prior to their publishing;

d. the Committee may ask members of management or others to attend meetings and provide pertinent information as necessary. For purposes of performing their audit related duties, members of the Committee shall have full access to all corporate information and shall be permitted to discuss such information and any other matters relating to the financial position of the Company with senior employees, officers and independent auditors of the Company;

e. as part of its job to promote and foster open communication, the Committee should meet at least annually (or more frequently as required) with management, the internal auditor and the independent auditor in separate executive sessions to discuss any matters that the Committee or each of these groups believe should be discussed privately. In addition, the Committee or at least its Chair should meet with the independent auditor and management quarterly to review the Company’s financial statements;

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 139 

f. notice of the time and place of every meeting will be given in writing and delivered in person or by facsimile or other means of electronic transmission to each member of the Committee at least 48 hours prior to the time of such meeting; and

g. the Committee will maintain written minutes of its meetings, which minutes will be filed with the minutes of the meetings of the Board. The Committee will make regular reports of its meetings to the Board, directly or through its chair, accompanied by any recommendations to the Board approved by the Committee.

6. Authority

The Committee will have the authority to:

a. retain (at the Company’s expense) its own legal counsel, accountants and other consultants that the Committee believes, in its sole discretion, are needed to carry out its duties and responsibilities;

b. conduct investigations that it believes, in its sole discretion, are necessary to carry out its responsibilities;

c. take whatever actions it deems appropriate, in its sole discretion, to foster an internal culture within the Company that results in the development and maintenance of a superior level of financial reporting standards, sound business risk practices and ethical behaviour; and

d. request that any director, officer or employee of the Company, or other persons whose advice and counsel are sought by the Committee (including, but not limited to, the Company’s legal counsel and the external auditors) meet with the Committee and any of its advisors and respond to their inquiries.

7. Specific Duties

In fulfilling its mandate, the Committee will, among other things:

a. with respect to the external auditor:

i. select the external auditors, based upon criteria developed by the Committee;

ii. approve all audit and non-audit services in advance of the provision of such services and the fees and other compensation to be paid to the external auditors;

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 140 

iii. oversee the services provided by the external auditors for the purpose of preparing or issuing an audit report or related work; and

iv. review the performance of the external auditors, including, but not limited to, the partner of the external auditors in charge of the audit, and, in its discretion, approve any proposed discharge of the external auditors when circumstances warrant, and appoint any new external auditors. Notwithstanding any other provision of this Charter, the external auditor will be ultimately accountable to the Board and the Committee, as representatives of the shareholders of the Company, and those representatives will have the ultimate authority and responsibility to select, evaluate and, where appropriate, replace the external auditor (or to nominate the external auditor to be proposed for shareholder approval);

b. periodically review and discuss with the external auditors all significant relationships that the external auditors have with the Company to determine the independence of the external auditors. Without limiting the generality of the foregoing, the Committee will ensure that it receives, on an annual basis, a formal written statement from the external auditors that sets out all relationships between the external auditor and the Company, and receives an opinion on the financial statements consistent with all professional standards that are applicable to the external auditors (including, but not limited to, those established by any securities legislation and regulations, the Canadian Institute of Chartered Professional Accountants – Chartered Accountants, Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States) and the American Institute of Certified Public Accountants, and those set out in the International Financial Reporting Standards as issued by the International Accounting Standards Board);

c. evaluate, in consultation with the Company’s management, internal accounting department and external auditors, the effectiveness of the Company’s processes for assessing significant risks or exposures and the steps taken by management to monitor, control and minimize such risks; and obtain, annually, a letter from the external auditors as to the adequacy of such controls

d. in connection with its risk management function, the Committee shall periodically, and no less than once a year, consider and discuss risks and the steps management has taken to monitor and control such exposures, including the top risks identified by management and the policies and practices adopted by the Company to mitigate those risks. These risks should include, without limitation, consideration of:

A. management’s assessment of risks and steps taken to address significant risks or exposure;

B. financial risks associated with investing, hedging or other financial instruments;

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 141 

C. privacy cyber security risk exposures and measures taken to protect the security and integrity of the Company’s management information systems and Company data;

D. management’s assessment of internal control risks and exposures and steps taken by management to minimize such risks;

E. litigation and reputational risks;

F. climate change and carbon taxes/carbon usage restrictions risk;

G. the Company’s crisis management and response plans and business continuity plans (including work stoppage and disaster recovery plans); and

H. the availability and or adequacy of insurance coverage for insurable risks.

e. consider, in consultation with the Company’s external auditors and internal accounting department, the audit scope and plan of the external auditors and the internal accounting department;

f. coordinate with the Company’s external auditors the conduct of any audits to ensure completeness of coverage and the effective use of audit resources;

g. assist in the resolution of disagreements between the Company’s management and the external auditors regarding the preparation of financial statements; and in consultation with the external auditors, review any significant disagreement between management and the external auditors in connection with the preparation of the financial statements, including management’s responses thereto;

h. after the completion of the annual audit, review separately with each of the Company’s management, external auditors and internal accounting department the following:

i. the Company’s annual financial statements and related footnotes;

ii. the external auditors’ audit of the financial statements and their report thereon;

iii. any significant changes required in the external auditors’ audit plan;

iv. any significant difficulties encountered during the course of the audit, including, but not limited to, any restrictions on the scope of work or access to required information;

v. the Company’s guidelines and policies governing the process of risk assessment and risk management; and

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 142 

i. other matters related to the conduct of the audit that must be communicated to the Committee in accordance with the standards of any regulatory body (including, but not limited to, securities legislation and regulations, the Canadian Institute of Chartered Professional Accountants - Chartered Accountants, International Financial Reporting Standards as issued by the International Accounting Standards Board, Canadian generally accepted auditing standards, the Public Company Accounting Oversight Board (United States), and the American Institute of Certified Public Accountants);

j. consider and review with the Company’s external auditors (without the involvement of the Company’s management and internal accounting department):

i. the adequacy of the Company’s internal controls and disclosure controls, including, but not limited to, the adequacy of computerized information systems and security;

ii. the truthfulness and accuracy of the Company’s financial statements; and

iii. any related significant findings and recommendations of the external auditors and internal accounting department, together with management’s responses thereto;

k. consider and review with the Company’s management and internal accounting department:

i. significant findings during the year and management’s responses thereto;

ii. any changes required in the planned scope of their audit plan;

iii. the internal accounting department’s budget and staffing; and

iv. the internal auditor department’s compliance with the appropriate internal auditing standards;

l. establish systems for the regular reporting to the Committee by each of the Company’s management, external auditors and internal accounting department of any significant judgments made by management in the preparation of the financial statements and the opinions of each as to appropriateness of such judgments;

m. review (for compliance with the information set out in the Company’s financial statements and in consultation with the Company’s management, external auditors and internal accounting department, as applicable) all filings made with Regulators and government agencies, and other published documents that contain the Company’s financial statements before such filings are made or documents published (including, but not limited to:

i. any certification, report, opinion or review rendered by the external auditors;

ii. any press release announcing earnings (especially those that use the terms “pro forma”, “adjusted information” and “not prepared in compliance with generally accepted accounting principles”); and

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 143 

iii. all financial information and earnings guidance intended to be provided to analysts, the public or to rating agencies);

n. prepare and include in the Company’s annual proxy statement or other filings made with Regulators any report from the Committee or other disclosures required by all applicable federal, provincial and state securities legislation and the rules and regulations of Regulators having jurisdiction over the Company;

o. review with the Company’s management:

i. the adequacy of the Company’s insurance and fidelity bond coverage, reported contingent liabilities and management’s assessment of contingency planning;

ii. management’s plans in respect of any changes in accounting practices or policies and the financial impact of such changes;

iii. any major areas in that, in management’s opinion, have or may have a significant effect upon the financial statements of the Company; and

iv. any litigation or claim (including, but not limited to, tax assessments) that could have a material effect upon the financial position or operating results of the Company;

p. annually review the Company’s directors’ and officers’ third-party liability insurance to ensure adequacy of coverage.

q. The Committee shall periodically, and no less than once a year, consider and discuss the Company’s legal and ethics compliance matters. The Committee should meet at least once a year with the Company’s legal counsel to discuss these matters. These matters should include, without limitation, consideration of:

(i) legal and regulatory compliance matters that could have a material impact on the Company’s business, operations or financial statements;

I. the effectiveness of the Company’s disclosure controls and procedures in ensuring compliance by the Company with securities law and stock exchange disclosure requirements; and

J. an annual review of the appropriateness and effectiveness of the Company’s compliance policies.

r. at least annually, review with the Company’s legal counsel and accountants all legal, tax or regulatory matters that may have a material impact on the Company’s financial statements, operations and compliance with applicable laws and regulations;

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 144 

s. review and update periodically a Code of Business Conduct and Ethics for the directors, officers and employees of the Company; and review management’s monitoring of compliance with the Code of Ethics and Business Conduct;

t. review and update periodically the procedures for the receipt, retention and treatment of complaints and concerns by employees received by the Company regarding accounting, internal accounting controls or auditing matters, including, but not limited to, concerns regarding questionable accounting or auditing practices;

u. consider possible conflicts of interest between the Company’s directors and officers and the Company; and approve for such parties, in advance, all related party transactions;

v. review policies and procedures in respect of the expense accounts of the Company’s directors and officers, including, but not limited to, the use of corporate assets;

w. review annually and update this Charter and recommend any proposed changes to the Board for approval, in accordance with the requirements of all applicable federal, provincial and state securities legislation and the rules and regulations of Regulators having jurisdiction over the Company; and

perform such other functions, consistent with this Charter, the Company’s constating documents and governing laws, as the Committee deems necessary or appropriate.

Last presented by the Committee for review and approval to, and so approved by, the Board of Directors on November 4, 2020 (previously on October 29, 2019).

Great Panther Mining Limited
Annual Information Form for the year ended December 31, 2020 145 

EX-99.2

Exhibit 99.2

GREAT PANTHER MINING LIMITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED

DECEMBER 31, 2020 and 2019

Expressed in US Dollars

GREAT PANTHER MINING LIMITED

MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING

The preparation and presentation of the accompanying consolidated financial statements and Management’s Discussion and Analysis (“MD&A”) are the responsibility of management and have been approved by the Board of Directors of Great Panther Mining Limited (the "Company").

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board. They include certain amounts that are based on estimates and judgments of management. Financial information presented in the MD&A is consistent with that contained in the consolidated financial statements.

Management is responsible for establishing and maintaining adequate internal control over financial reporting. Under the supervision and with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, management has a process in place to evaluate internal control over financial reporting based on the criteria established by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO 2013"), the Internal Control-Integrated Framework. We, as Chief Executive Officer and Chief Financial Officer, will certify our annual filings with the CSA and SEC as required in Canada by National Instrument 52-109 and in the United States as required by the Securities Exchange Act of 1934.

The Company’s Audit Committee is appointed by the Board of Directors annually and is comprised of four independent directors. The Audit Committee meets quarterly to review the Company’s consolidated financial statements and Management’s Discussion and Analysis, and on an annual basis, the independent auditors’ report. The Audit Committee recommends to the Board of Directors the independent auditors to be appointed by the shareholders at each annual meeting and reviews the independence and effectiveness of their work. The independent auditors have unrestricted access to the Company, the Audit Committee, and the Board of Directors.

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934 (the “Exchange Act”).

Under the supervision and with the participation of our Company's Chief Executive Officer and Chief Financial Officer, management conducted an evaluation of the effectiveness of our internal control over financial reporting, as of December 31, 2020, based on the framework set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO 2013"). Based on this evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2020.

KPMG LLP, an independent registered public accounting firm, has audited the effectiveness of our internal control over financial reporting as of December 31, 2020, as stated in their report which appears herein.

/s/ Robert Henderson	/s/ Jim A. Zadra
Chief Executive Officer	Chief Financial Officer
March 3, 2021	March 3, 2021

 

KPMG LLP	Telephone	(604) 691-3000
Chartered Professional Accountants	Fax	(604) 691-3031
PO Box 10426 777 Dunsmuir Street	Internet	www.kpmg.ca
Vancouver BC V7Y 1K3
Canada

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

Great Panther Mining Limited:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated statements of financial position of Great Panther Mining Limited (the Company) as of December 31, 2020 and 2019, the related consolidated statements of income (loss), comprehensive income (loss), changes in shareholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2020, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and its financial performance and its cash flows for each of the years in the two-year period ended December 31, 2020, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated March 3, 2021 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

 

Great Panther Mining Limited
Page 2

Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

Chartered Professional Accountants

Vancouver, Canada
March 3, 2021

We are uncertain as to the year we or our predecessor firms began serving consecutively as the auditor of the Company’s financial statements; however, we are aware that we have been Great Panther Mining Limited’s auditor consecutively since at least 1997.

 

KPMG LLP	Telephone	(604) 691-3000
Chartered Professional Accountants	Fax	(604) 691-3031
PO Box 10426 777 Dunsmuir Street	Internet	www.kpmg.ca
Vancouver BC V7Y 1K3
Canada

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors Great Panther Mining Limited:

Opinion on Internal Control Over Financial Reporting

We have audited Great Panther Mining Limited’s (the Company) internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statements of financial position of the Company as of December 31, 2020 and 2019, the related consolidated statements of income (loss), comprehensive income (loss), changes in shareholders’ equity and cash flows for each of the years in the two-year period ended December 31, 2020, and the related notes (collectively, the consolidated financial statements), and our report dated March 3, 2021 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

 

Great Panther Mining Limited
Page 2

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Chartered Professional Accountants

Vancouver, Canada
March 3, 2021

Great Panther MINING Limited

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Expressed in thousands of US dollars)

As at December 31, 2020 and 2019

	December 31, 2020			December 31, 2019
ASSETS
Current assets:
Cash and cash equivalents	$	63,396		$	36,970
Restricted cash		1,024			115
Trade and other receivables (note 6)		15,644			21,756
Inventories (note 7)		33,743			35,120
Other current assets (note 8)		5,675			11,380
		119,482			105,341
Other receivables (note 6)		11,836			10,155
Mineral properties, plant and equipment (note 9)		110,559			133,810
Exploration and evaluation assets (note 10)		26,334			15,659
Other assets (note 11)		12,209			5,777
	$	280,420		$	270,742
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Trade payables and accrued liabilities (note 12(a))	$	53,221		$	49,533
Current portion of borrowings (note 13)		30,933			38,066
Derivative liabilities (note 14)		2,974			–
Reclamation and remediation provisions – current (note 15)		958			4,927
		88,086			92,526
Other liabilities (note 12(b))		6,117			17,078
Borrowings (note 13)		2,465			4,627
Reclamation and remediation provisions (note 15)		67,367			50,647
Deferred tax liabilities (note 23)		4,682			5,365
		168,717			170,243
Shareholders’ equity:
Share capital (note 16)		268,872			252,186
Reserves		11,604			17,420
Deficit		(168,773	)		(169,107	)
		111,703			100,499
	$	280,420		$	270,742

The accompanying notes are an integral part of these consolidated financial statements.

Commitments and contingencies (note 27)

Subsequent events (note 32)

Approved by the Board of Directors

“David Garofalo”	“Elise Rees”
David Garofalo, Director	Elise Rees, Director

1 

Great Panther MINING Limited

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Expressed in thousands of US dollars, except per share amounts)

For the years ended December 31, 2020 and 2019

	2020			2019
Revenue (note 17)	$	260,805		$	198,653
Cost of sales
Production costs (note 18)		136,633			157,137
Amortization and depletion		40,305			34,671
		176,938			191,808
Mine operating earnings		83,867			6,845
General and administrative expenses (note 19)		12,926			17,557
Exploration, evaluation, and development expenses
Exploration and evaluation expenses (note 20)		10,370			12,787
Mine development costs		2,884			1,487
Change in reclamation and remediation provisions		41			9,752
		13,295			24,026
Impairment of goodwill (note 21)		–			38,682
Business acquisition costs (note 5)		–			2,923
Care and maintenance costs		693			795
Operating earnings (loss)		56,953			(77,138	)
Finance and other income (expense)
Finance income		347			726
Finance expense		(3,981	)		(5,752	)
Other income (expense) (note 22)		(49,194	)		(8,114	)
		(52,828	)		(13,140	)
Income (loss) before income taxes		4,125			(90,278	)
Income tax expense (note 23)		3,791			744
Net income (loss) for the period	$	334		$	(91,022	)
Earnings (loss) per share – basic (note 16(e))	$	0.00		$	(0.33	)
Earnings (loss) per share – diluted (note 16(e))	$	0.00		$	(0.33	)

The accompanying notes are an integral part of these consolidated financial statements.

2 

Great Panther MINING Limited

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Expressed in thousands of US dollars)

For the years ended December 31, 2020 and 2019

	2020			2019
Net income (loss) for the year	$	334		$	(91,022	)
Other comprehensive income (loss) (“OCI”), net of tax
Foreign currency translation		(7,057	)		(6,150	)
Change in fair value of financial assets designated as fair value through OCI, net of tax		1			(1	)
		(7,056	)		(6,151	)
Total comprehensive (loss) for the year	$	(6,722	)	$	(97,173	)

The accompanying notes are an integral part of these consolidated financial statements.

3 

Great Panther MINING Limited

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Expressed in thousands of US dollars, except number of common shares)

For the years ended December 31, 2020 and 2019

	Share capital				Reserves
	Number of common shares (000s)		Amount		Share options and warrants			Foreign currency translation			Fair value			Total reserves			Deficit			Total shareholders’ equity
Balance, January 1, 2019		169,165	$	130,912	$	16,833		$	3,178		$	(182	)	$	19,829		$	(78,085	)	$	72,656
Shares and warrants issued pursuant to the acquisition of Beadell Resources Limited (note 5)		103,593		93,235		2,646			–			–			2,646			–			95,881
Shares issued upon conversion of MACA Limited (“MACA”) borrowings		14,078		10,524		–			–			–			–			–			10,524
Shares issued for bought deal financing (note 16(f))		23,000		15,939		–			–			–			–			–			15,939
Share options exercised		917		702		(196	)		–			–			(196	)		–			506
Restricted and deferred share units settled		1,188		874		(434	)		–			–			(434	)		–			440
Share-based compensation		–		–		1,726			–			–			1,726			–			1,726
Comprehensive loss		–		–		–			(6,150	)		(1	)		(6,151	)		(91,022	)		(97,173	)
Balance, December 31, 2019		311,941	$	252,186	$	20,575		$	(2,972	)	$	(183	)	$	17,420		$	(169,107	)	$	100,499
Balance, January 1, 2020		311,941	$	252,186	$	20,575		$	(2,972	)	$	(183	)	$	17,420		$	(169,107	)	$	100,499
Shares issued for bought deal financing (note 16(f))		40,250		14,705		–			–			–			–			–			14,705
Restricted and deferred share units settled		1,474		978		(978	)		–			–			(978	)		–			–
Shares issued upon settlement of obligation		88		39		–			–			–			–			–			39
Share options exercised		1,280		964		(244	)		–			–			(244	)		–			720
Share-based compensation		–		–		2,462			–			–			2,462			–			2,462
Comprehensive income (loss)		–		–		–			(7,057	)		1			(7,056	)		334			(6,722	)
Balance, December 31, 2020		355,033	$	268,872	$	21,815		$	(10,029	)	$	(182	)	$	11,604		$	(168,773	)	$	111,703

The accompanying notes are an integral part of these consolidated financial statements.

4 

Great Panther MINING Limited

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of US dollars)

For the years ended December 31, 2020 and 2019

	2020			2019
Cash flows from operating activities:
Net income (loss) for the year	$	334		$	(91,022	)
Items not involving cash:
Amortization and depletion		40,751			35,185
Impairment of goodwill (note 5)		–			38,682
Change in reclamation and remediation provision		41			9,752
Loss (gain) on derivative instruments		27,980			(2,354	)
Unrealized foreign exchange loss		13,300			2,785
Income tax expense		3,791			744
Share-based compensation		2,462			1,726
Other non-cash items (note 29(a))		6,264			8,462
Interest received		346			686
Interest paid		(3,944	)		(5,692	)
Loss on settlement of derivative instruments		(21,552	)		–
Income taxes paid		(728	)		(440	)
		69,045			(1,486	)
Changes in non-cash working capital:
Trade and other receivables		(1,335	)		4,568
Reclamation and remediation provisions		(902	)		–
Inventories		(5,063	)		10,521
Other current assets		(2,468	)		212
Trade payables and accrued liabilities		9,612			(28	)
Net cash provided by operating activities		68,889			13,787
Cash flows from investing activities:
Cash restricted for Coricancha environmental bond		(21	)		371
Cash received on acquisition of Beadell		–			1,441
Redemptions of (investments in) short-term deposits and restricted cash, net		–			25,941
Repayment received prior to Acquisition on loan advanced to Beadell		–			3,069
Advances to Beadell prior to Acquisition		–			(354	)
Additions to mineral properties, plant and equipment		(41,948	)		(25,910	)
Net cash provided by (used in) investing activities		(41,969	)		4,558
Cash flows from financing activities:
Proceeds from bought deal financing, net (note 16(f))		14,705			15,939
Payment of lease liabilities		(5,774	)		(6,190	)
Proceeds from borrowings		36,013			32,210
Repayment of borrowings		(44,836	)		(48,444	)
Proceeds from exercise of share options		720			504
Net cash provided by (used in) financing activities		828			(5,981	)
Effect of foreign currency translation on cash and cash equivalents		(1,322	)		82
Increase in cash and cash equivalents		26,426			12,446
Cash and cash equivalents, beginning of year		36,970			24,524
Cash and cash equivalents, end of year	$	63,396		$	36,970

The accompanying notes are an integral part of these consolidated financial statements.

Supplemental cash flow information (note 29)

5 

Great Panther mining Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

1. NATURE OF OPERATIONS

Great Panther Mining Limited (“Great Panther” or the “Company”) is a public company listed on the Toronto Stock Exchange (“TSX”) trading under the symbol GPR, and on the NYSE American trading under the symbol GPL and is incorporated and domiciled in Canada. The Company’s registered and records office is located at 1330 – 200 Granville Street, Vancouver, BC.

On March 5, 2019 (the “Acquisition Date”), the Company changed its name from Great Panther Silver Limited to Great Panther Mining Limited following the completion of the acquisition of Beadell Resources Limited (“Beadell”) (the “Acquisition”), a gold mining company that was listed on the Australian Securities Exchange and operated the wholly owned Tucano gold mine (“Tucano”) and related exploration properties in Amapá state, northern Brazil (note 5).

Additionally, the Company has two wholly-owned mining operations in Mexico: the Topia mine (“Topia”), and the Guanajuato Mine Complex (the “GMC”), which comprises the Guanajuato mine, the San Ignacio mine (“San Ignacio”), and the Cata processing plant. Topia, located in the Sierra Madre Mountains in the state of Durango in northwestern Mexico, produces concentrates containing silver, gold, lead and zinc. The GMC, located in central Mexico, produces silver and gold concentrate.

The Company also wholly owns the Coricancha Mine Complex (“Coricancha”), a gold-silver-copper-lead-zinc mine and 600 tonnes per day processing facility in the central Andes of Peru, approximately 90 kilometres east of Lima. Coricancha was acquired by the Company in June 2017, having been placed on care and maintenance by its previous owner in August 2013. The Company filed a positive Preliminary Economic Assessment on Coricancha in May 2018, and in July 2018, commenced a trial stope and bulk sample program (“BSP”) to further de-risk the project. The BSP was completed in June 2019 and the Company continues to evaluate a restart of the Argosy in Canada. The El Horcón property is located 100 kilometres by road northwest of Guanajuato, Santa Rosa is located 15 kilometres northeast of Guanajuato, and the Plomo property is located in Sonora, Mexico. The Argosy property is located in the Red Lake Mining District in northwestern Ontario, Canada.

These consolidated financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realization of assets and the settlement of liabilities in the normal course of business.

In March 2020, the World Health Organization declared a global pandemic following the emergence and rapid spread of a novel strain of the coronavirus respiratory disease (“COVID-19”). The Company continues to closely monitor the developments of COVID-19 with a focus on the jurisdictions in which the Company operates and its head office location in Canada. The worldwide spread of COVID-19 is prompting governments to implement different measures to curb the spread of COVID-19 regularly. During this period of uncertainty, the Company’s priority is to continue to safeguard the health and safety of personnel and host communities, support and enforce government actions to slow the spread of COVID-19 and assess and mitigate the risks to the business continuity. As the extent and duration of the impacts from COVID-19 remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from those estimates.

2. BASIS OF PREPARATION

These consolidated financial statements have been prepared by management of the Company in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These consolidated financial statements were approved by the Company’s Board of Directors on March 3, 2021.

6 

Great Panther mining Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

3. SIGNIFICANT ACCOUNTING POLICIES

The Company has consistently applied the following accounting policies to all periods presented in these consolidated financial statements, except for the new accounting standards newly adopted on January 1, 2020 as described in notes 3(r) below.

(a) Basis of consolidation

These consolidated financial statements include the accounts of the Company. All material intercompany transactions, balances, revenues, and expenses have been eliminated upon consolidation.

Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee, and has the ability to affect those returns through its power over the investee.

Great Panther Mining Limited is the ultimate parent entity of the group. At December 31, 2020, the principal subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows:

Name	Location	Ownership		Principal Activity
Mina Tucano Ltda (formerly Beadell Brasil Ltda)	Brazil	100	%	Mining company
Mineral Mexicana el Rosario S.A. de C.V.	Mexico	100	%	Mining company
Great Panther Coricancha S.A.	Peru	100	%	Exploration company

(b) Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis except for financial assets and liabilities that are measured at fair values at each reporting date.

(c) Foreign currency translation

These consolidated financial statements are presented in US dollars (“USD”) which is the Canadian parent company’s presentation currency and functional currency. The functional currency of the Company’s principal subsidiary in Mexico is the USD. The functional currency of the Company’s Brazilian subsidiaries is the Brazilian real (“BRL”).

i) Transactions and balances

Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in net income.

7 

Great Panther mining Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

ii) Translation of subsidiary results into the presentation currency

The operating results and statements of financial position of the Company’s subsidiaries which have a functional currency that differs from the Company’s presentation currency are translated into the presentation currency as follows:

· Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of the statement of financial position;

· Income and expenses for each statement of comprehensive income are translated at average exchange rates, unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and

· All resulting exchange differences are recognized as a separate component of equity.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognized in a separate component of equity, foreign currency translation reserve. When a foreign operation is sold, such exchange differences are recognized in net income as part of the gain or loss on the sale.

(d) Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits, and money market instruments, with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Transaction costs are expensed when incurred. Cash and cash equivalents are designated as financial assets at amortized cost.

(e) Inventories

Inventories consist of:

· Gold bullion, gold in circuit, ore stockpiles, and concentrate inventories which are stated at the lower of weighted average cost and net realizable value. Costs include production costs and amortization and depletion directly attributable to the inventory production process. Net realizable value is the expected selling price for the finished product less the costs to put the product into saleable form and delivery to the selling location.

· Materials and supplies inventory, which includes the cost of consumables used in operations are stated at the lower of weighted average cost and replacement cost which approximates net realizable value. Major spare parts and standby equipment are included in property, plant, and equipment when they are expected to be used over more than one period, if they can only be used in connection with an item of property, plant and equipment.

· Silver bullion coins and bars are recorded at lower of cost and net realizable value.

(f) Mineral properties, plant and equipment

i) Mineral properties

Mine development costs are capitalized if management determines that there is sufficient evidence to support probability of generating positive economic returns in the future. Mineral Resources and Reserves are considered to have economic potential when the technical feasibility and commercial viability of extraction is demonstrable considering long-term metal prices. Therefore, prior to capitalizing such costs, management determines whether the following conditions have been met: there is a probable future benefit that will contribute to future cash inflows; the Company can obtain the benefit and control access to it; and the transaction or event giving rise to the benefit has already occurred.

In the event that the Company does not have sufficient evidence to support the probability of generating positive economic returns in the future, mine development costs are expensed to profit or loss. Mine development costs include expenditures associated with accessing Mineral Resources and gaining further information regarding the ore body, whether by means of ramp development, drilling or sampling. Development costs at the GMC are currently expensed.

8 

Great Panther mining Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

Producing mineral properties acquired through business acquisitions are recognized at fair value on the acquisition date. Where applicable, the estimated cost of mine reclamation and remediation for the property is included in the cost of mineral properties.

The Company defers certain related stripping costs during the production phase of its Tucano surface mine operation to future periods. Stripping costs that generate a benefit of improved access to future components of an ore body and meet the definition of an asset are recognized as stripping activity assets. Stripping activity assets are depreciated on a units of production basis over the useful life of the identifiable component of the ore body that becomes more accessible as a result of the stripping activity. Stripping activity assets form part of mineral properties, plant and equipment.

ii) Plant and equipment

Plant and equipment is originally recorded at cost at the time of construction, purchase, or acquisition, and is subsequently measured at cost less accumulated amortization and impairment. Cost includes all costs required to bring the plant and equipment into a condition and location where it is capable of operating according to its intended use.

Costs incurred for major overhauls of existing equipment or infrastructure are capitalized as plant and equipment and are subject to amortization once they are commissioned. Costs associated with routine maintenance and repairs are charged to operations as incurred.

iii) Amortization and depletion

The Company's mineral properties in Mexico are depleted using the straight-line method over the estimated remaining life of the mine. The Company’s mineral properties at Tucano are depleted on a units of production basis over the economically recoverable reserves.

Plant and equipment directly related to the Mexico mining operations is amortized using the straight-line method over the shorter of the estimated remaining life of the mine and the estimated remaining useful life of the asset. Plant and equipment directly related to the Tucano mining operations is amortized on a units of production basis over the economically recoverable reserves of the mine concerned, except in the case of assets whose useful life is shorter than the estimated remaining life of the mine, in which case the straight-line method over the remaining useful life of the asset is used.

All other equipment, buildings and furniture and fixtures which do not relate directly to the mining operations are amortized on a straight-line basis over the remaining estimated useful life of the asset, except for land which is not amortized.

When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in profit or loss.

(g) Exploration and evaluation assets

i) Exploration properties

Exploration properties represent properties for which the Company has not yet performed sufficient exploration work to determine whether significant mineralization exists. Exploration properties are carried at the cost of acquisition and included in exploration and evaluation assets. Exploration expenditures incurred on such properties are expensed as incurred as exploration expenditures in profit or loss. Examples of exploration expenditures that are expensed under this policy include topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching; and sampling. The Company considers its Coricancha, Santa Rosa, El Horcón, Plomo and Argosy projects to be in this category as at December 31, 2020, and consequently, expenses all costs associated with these projects as they are incurred.

9 

Great Panther mining Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

ii) Evaluation properties

Evaluation properties represent properties for which the Company has identified Mineral Resources or Reserves of such quantity and grade or quality that it has reasonable prospects for economic extraction. Mineral Resources and Reserves are considered to have reasonable prospects for economic extraction when the Company has sufficient information to determine that extraction is viable and feasible at expected long-term metal prices. Expenditures made in relation to evaluating the technical feasibility and commercial viability of extracting a Mineral Resource or Reserve are capitalized and included in exploration and evaluation assets. Evaluation expenditures include the costs of drilling, sampling and other costs related to defining and delineating the mineral deposit.

When the technical feasibility and commercial viability of the extraction of Mineral Resources or Reserves associated with the Company’s evaluation properties are demonstrable and management has made a decision to proceed with development, the capitalized costs associated with evaluation assets are reclassified from exploration and evaluation assets to mineral properties. They are tested for impairment at that time.

iii) Amortization and depletion

Exploration and evaluation assets are not subject to depletion or amortization, but rather are tested for impairment when circumstances indicate that the carrying value may not be recoverable.

(h) Leased assets

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

- The contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;

- The Company has the right to obtain substantially all the economic benefits from use of the asset throughout the period of use; and

- The Company has the right to direct the use of the asset. The Company has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used.

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use assets are subsequently depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of the future economic benefits. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

10 

Great Panther mining Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company has elected to apply the practical expedient not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

(i) Impairment of non-financial assets

Exploration and evaluation assets are tested for impairment when circumstances indicate that the carrying value may not be recoverable. When facts and circumstances suggest that the carrying amount of an asset exceeds its recoverable amount, the Company performs an impairment test by comparing the recoverable amount to the carrying amount of the relevant exploration and evaluation property. When the carrying value exceeds the recoverable amount of the relevant exploration and evaluation property, an impairment charge is recorded and the property is written down to its recoverable amount. In addition, exploration and evaluation assets are tested for impairment at the date they are transferred to mineral properties, plant and equipment.

The Company’s mineral properties, plant and equipment are reviewed for any indication of impairment at each financial reporting date or at any time if an indicator of impairment is considered to exist. If any such indicators exist, an estimate of the recoverable amount is undertaken, being the higher of an asset’s fair value less costs of disposal and the asset’s value in use. If the asset’s carrying amount exceeds its recoverable amount then an impairment loss is recognized in net income or loss for the period, and the carrying value of the asset on the statement of financial position is reduced to its recoverable amount. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. Fair value of mineral properties is generally determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset, including any expansion prospects, discounted by an appropriate pre-tax discount rate to arrive at a net present value.

Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Value in use is determined by applying assumptions specific to the Company’s continued use which includes future development. As such, these assumptions may differ from those used in calculating fair value.

In testing for indicators of impairment and performing impairment calculations, assets are grouped into cash-generating units, which are identified as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. The estimates of future discounted cash flows are subject to risks and uncertainties including estimated production, grades, recoveries, future metals prices, discount rates, exchange rates and operating costs.

Non-financial assets other than goodwill that have suffered an impairment are evaluated for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. When a reversal of a previous impairment is recorded, the reversal amount is adjusted for depreciation that would have been recorded had the impairment not been recorded.

11 

Great Panther mining Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

(j) Share-based compensation

Equity-settled share-based compensation arrangements such as the Company’s stock option plan, restricted share unit plan, and deferred share unit plan are measured at fair value at the date of grant and recorded within equity. The restricted share unit plan includes restricted share units without performance-based criteria and performance share units, where the number of units that ultimately vest is dependent on the relative performance of the Company compared with a peer group of companies. The fair value at grant date of all share-based compensation is recognized as compensation expense over the vesting period, with a corresponding credit to shareholders’ equity. The amount recognized as an expense is adjusted to reflect share options forfeited. The Company estimates the fair value of share options granted using the Black-Scholes option pricing model. The Company estimates the fair value of equity settled performance share units (“PSU”) using a Monte Carlo valuation model at the date of grant.

(k) Revenue recognition

The Company recognizes revenue from the sale of precious metals, consisting of metal concentrates and refined gold, when the customer obtains control.

For the metal concentrates sales, the customer obtains control upon delivery at the customer’s designated warehouse. The amount of revenue recorded upon initial recognition is based on the forward metal prices at that time and the estimated metal content. The payment terms are based on the individual customer contracts. For provisional payments, terms are typically 15 days from the date of provisional invoice, and for final payments, terms are typically five business days after the final weights, assays and prices are known and invoiced. Adjustments related to changes in metal prices and metal content up to the final settlement are recorded in revenue.

For the refined gold, the customer obtains control when the refined gold has been physically delivered, which is also the date when title has passed to the buyer and the Company has issued an invoice pursuant to a transaction confirmation that fixes the quantity and price of the gold for each delivery. The amount of revenue recorded upon delivery is based on this transaction confirmation. The Company has no significant continuing involvement after delivery and no adjustments to revenue are made subsequent to initial recognition.

(l) Reclamation and remediation provisions

The Company's mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Company recognizes the cost of future reclamation and remediation as a liability when: the Company has a legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and, a reasonable estimate of the obligation can be made. The liability is measured initially by discounting expected costs to the net present value using pre-tax rates and risk assumptions specific to the liability. The resulting cost is capitalized to the carrying value of the related assets or expensed to profit or loss where there is no carrying value of the related assets, or where the cost is not recoverable. In subsequent periods, the liability is adjusted for accretion of the discount with the offsetting amount charged to the statement of comprehensive income as a finance cost. Any change in the amount or timing of the underlying cash flows is adjusted to the carrying value of the liability, with the offsetting amount recorded as an adjustment to the reclamation and remediation provision cost included in mineral properties or exploration, evaluation and development expenses. Any amount charged to the carrying value of assets is depreciated over the remaining life of the relevant assets.

It is reasonably possible that the ultimate cost of remediation and reclamation could change in the future due to uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities, changes in remediation technology and changes in discount rates. The Company reviews its reclamation and remediation provision at least annually and as evidence becomes available indicating that its expected reclamation and remediation costs may have changed. Any such changes in costs could materially impact the future amounts recorded as reclamation and remediation provision.

12 

Great Panther mining Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

(m) Financial instruments

The Company’s financial instruments consist of cash and cash equivalents, short-term deposits, marketable securities, trade and other receivables, loan receivable, restricted cash, trade and other payables, as well as derivative instruments.

i) Classification

The Company determines the classification of its financial instruments at initial recognition. Upon initial recognition, a financial asset is classified as measured at: amortized cost, fair value through profit and loss (“FVTPL”), or fair value through other comprehensive income (loss) (“FVOCI”). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial liability is classified as measured at amortized cost or FVTPL.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVTPL:

· it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

· its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL:

· it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

· its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

An equity investment that is held for trading is measured at FVTPL. For other equity investments that are not held for trading, the Company may irrevocably elect to designate them as FVOCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has elected to measure them at FVTPL.

ii) Measurement

Initial measurement

On initial recognition, all financial assets and financial liabilities are measured at fair value adjusted for directly attributable transaction costs except for financial assets and liabilities classified as FVTPL, in which case the transaction costs are expensed as incurred.

13 

Great Panther mining Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

Subsequent measurement

The following accounting policies apply to the subsequent measurement of financial instruments:

Financial assets at FVTPL	These assets are subsequently measured at fair value.  Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method.  The amortized cost is reduced by impairment losses.  Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss.  Any gain or loss on derecognition is recognized in profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value.  Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment.  Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value.  Interest income is calculated using the effective interest rate method; foreign exchange gains and losses and impairment are recognized in profit or loss.  Other net gains and losses are recognized in OCI.  On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Impairment of financial instruments

The Company assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired.

For financial assets measured at amortized cost, and debt investments at FVOCI, the Company applies the expected credit loss model.

(n) Provisions

Provisions are liabilities that are uncertain in time or amount. The Company records a provision when (i) the Company has a present obligation (legal or constructive) as a result of a past event; (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (iii) a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each reporting date and adjusted to reflect management’s current best estimate of the cost to settle the present obligation. Where discounting has been used, the carrying amount of a provision is accreted to reflect the passage of time and the accretion expense is included in finance costs in the consolidated statements of income (loss).

(o) Income taxes

Income tax is recognized in net income or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized directly in equity.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantially enacted at the reporting date.

Deferred tax assets and liabilities are determined based on differences between the financial statement carrying values of existing assets and liabilities and their respective income tax bases (temporary differences), and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to be in effect when the temporary differences are likely to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is included in net income in the period in which the change is substantively enacted. The amount of deferred tax assets recognized is limited to the amount that is, in management’s estimation, probable that future taxable profits will be available against which the asset can be utilized.

Deferred tax assets and liabilities are offset (i) when there is a legally enforceable right to set off current tax assets against current tax liabilities, (ii) when they relate to income taxes levied by the same taxation authority, and (iii) the Company intends to settle its current tax assets and liabilities on a net basis.

14 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

(p) Earnings per share

Earnings per share is calculated based on the weighted average number of shares outstanding during the period. The Company follows the treasury stock method for the calculation of diluted earnings per share. Under this method, dilution is calculated based upon the net number of common shares issued should “in-the-money” options and warrants be exercised and the proceeds be used to repurchase common shares at the average market price during the period. Dilution from convertible securities is calculated based on the number of shares to be issued after taking into account the reduction of the related after-tax interest expense.

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed in a manner similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from restricted and deferred stock units and the assumed exercise of share options and warrants, if dilutive.

(q) Segment reporting

The Company has identified operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer and the executive management team (the chief operating decision-maker – “CODM”) in assessing performance and in determining allocation of resources. The CODM considers the business from both a geographic and product perspective and assesses the performance of the operating segments based on measures such as net property, plant and equipment, as well as operating results. All operating segments’ operating results are reviewed regularly by the Company’s senior management to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. The Company has determined operating segments based on this information.

Segment results that are reported to senior management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items are comprised mainly of corporate office expenses.

(r) New and revised accounting standards not yet effective

i) Property, plant and equipment - proceeds before intended use

On May 14, 2020, the IASB issued a narrow scope amendment to IAS 16, Property, Plant and Equipment: Proceeds before Intended Use. The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and the related cost in profit or loss. The effective date of the amendment is for annual periods beginning on or after January 1, 2022. The amendment must be applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the consolidated financial statements in which the amendment is first applied. The Company will adopt this narrow scope amendment on the date it becomes effective. The amendment is not currently applicable to the Company; however, it may be applicable in the future should the Company receive proceeds from selling items produced prior to an asset being ready for its intended use.

ii) Interest rate benchmark reform

On August 27, 2020, the IASB issued 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) with amendments that address issues that might affect financial reporting related to financial instruments and hedge accounting resulting from the reform of an interest rate benchmark, including its replacement with alternative benchmark rates. The amendments are effective for annual periods beginning on or after January 1, 2021, and are to be applied retrospectively. The Company is currently assessing the impact of the amendments on the Company's consolidated financial statements.

(s) Accounting standards issued and adopted

i)    IFRS 3, Business Combinations

In October 2019, the IASB issued amendments to the definition of a business in IFRS 3 – Business Combinations (“IFRS 3”). The amendments to IFRS 3 are effective for annual reporting periods beginning on or after January 2020. The modifications are intended to assist entities in determining whether a transaction should be accounted for as a business combination or as an asset acquisition. The modifications are effective for acquisition transactions on or after January 1, 2020. Effective January 1, 2020, the Company prospectively adopted the new IFRS 3 accounting standard which did not have an impact on the consolidated financial statements for the year ended December 31, 2020. 

15 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

4. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions which affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Estimates are based on historical experience and other factors considered to be reasonable, and are reviewed on an ongoing basis. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

The Company has identified the following areas where significant estimates, assumptions and judgments are made and where actual results may differ from the estimates under different assumptions and conditions and may materially affect financial results of the Company reported in future periods.

(a) Resource and reserve estimation

The accuracy of resource and reserve estimates is a function of the quantity and quality of available data and assumptions made and judgments used in the geological and engineering interpretation and may be subject to revision based on various factors. Changes in resource estimates may impact the carrying value of a mineral property, plant and equipment, the calculation of amortization and depletion, the capitalization of mine development costs, and the timing of cash flows related to reclamation and remediation provision.

(b) Useful lives of mineral properties, plant and equipment

The Company estimates the remaining life of its producing mineral properties on an annual basis using a combination of quantitative and qualitative factors including historical results, Mineral Resource and Reserve estimates, and management’s intent to operate the property. The estimated remaining life of the producing mineral property is used to calculate amortization and depletion expense, assess impairment charges and the carrying values of assets, and forecast the timing of the payment of reclamation and remediation costs.

There are numerous uncertainties inherent in the estimation of the remaining lives of the producing mineral properties, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, or production costs may change the economic status of the Mineral Resource and Reserves, estimates, economic potential of production from areas not included in the National Instrument 43-101 (“NI 43-101”) reports, and management’s intent to operate a property, and may ultimately have a material impact on the estimated remaining lives of the properties.

(c) Reclamation and remediation provision

The amounts recorded for reclamation and remediation provisions are based on estimates prepared by third-party environmental specialists, if available, or by persons within the Company who have the relevant skills and experience. These estimates are based on remediation activities required by environmental laws, the expected timing of cash flows, and the pre-tax risk-free interest rates on which the estimated cash flows have been discounted. These estimates also include an assumption of the rate at which costs may inflate in future periods. Actual results could differ from these estimates. The estimates require extensive judgment about the nature, cost and timing of the work to be completed, and may change with future changes to costs, environmental laws and regulations and remediation practices.

(d) Review of asset carrying values and assessment of impairment

The Company reviews each asset or cash generating unit at each reporting date to determine whether there are any indicators of impairment. If any such indication exists, a formal estimate of recoverable amount is performed and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of an asset or cash generating unit is measured at the higher of fair value less costs to sell and value in use.

The determination of fair value less costs of disposal and value in use requires management to make estimates and assumptions about expected production and sales volumes, metal prices, ore tonnage and grades, recoveries, operating costs, reclamation and remediation costs, future capital expenditures and appropriate discount rates for future cash flows. The estimates and assumptions are subject to risk and uncertainty, and as such there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reduced with the impact recorded in profit or loss.

16 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

(e) Income taxes and recoverability of deferred tax assets

In assessing the probability of realizing income tax assets, the Company makes estimates related to expected future taxable income, potential tax planning opportunities, estimated timing of reversals of temporary differences, and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. Where applicable tax laws and regulations are unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur, which may materially affect the amounts of income tax assets recognized. In addition, future changes in tax laws could limit the Company’s ability to realize the benefits from deferred tax assets.

(f) Determination of functional currencies

The determination of an entity’s functional currency is a matter of judgment based on an assessment of the specific facts and circumstances relevant to determining the primary economic environment of each entity within the group. The Company reconsiders the functional currencies used when there is a change in events or conditions considered in determining the primary economic environment of each entity.

(g) Leases

The determination of whether a contract contains a lease under IFRS 16 is a matter of judgment based on the assessment of the specific terms and conditions in the contract.

(h) Purchase price accounting

Significant judgments were made by management on the purchase price accounting in arriving at estimated acquisition date fair values for the net assets acquired and liabilities assumed on the Acquisition of Beadell.

(i) Contingencies

Significant judgments were made by management in the determinations of the likelihood of loss for provisions and contingent liabilities related to the litigation and matters assumed upon the Acquisition (note 27(b)(iv)) and acquisition of Coricancha (note 27(b)(iii)).

17 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

5. ACQUISITION OF BEADELL RESOURCES LIMITED

On the Acquisition Date, the Company acquired 100% of the issued and outstanding common shares of Beadell through the issuance of 103,593,043 Great Panther common shares to Beadell shareholders, representing approximately 38% of the post-Acquisition issued and outstanding Great Panther shares. The share exchange represented a ratio of 0.0619 Great Panther shares for each Beadell share (the “Exchange Ratio”). Additionally, the Company issued 9,749,727 share purchase warrants at an exercise price of $1.317 per share to replace the warrants previously issued by Beadell. The number of Company share purchase warrants issued were equal to the number of the outstanding Beadell warrants on the Acquisition Date multiplied by the Exchange Ratio, at a price adjusted in accordance with the Exchange Ratio, on the same terms and conditions as the original warrants.

The Acquisition is a business combination and has been accounted for in accordance with the measurement and recognition provisions of IFRS 3, Business Combinations. IFRS 3 requires that the purchase consideration be allocated to the assets acquired and liabilities assumed in a business combination based upon their estimated fair values at the date of acquisition. Acquisition costs consisting of advisory, legal, accounting, valuation, and other professional or consulting fees directly associated with the transaction to acquire Beadell of $2,923 were expensed as incurred during the year ended December 31, 2019.

On December 5, 2018, prior to the Acquisition, the Company entered into a loan agreement pursuant to which the Company advanced Beadell and its subsidiary, Mina Tucano Ltda (formerly Beadell Brasil Ltda) (“Mina Tucano”), as joint and several borrowers, a non-revolving term loan in the principal amount of $5,000 for their general working capital requirements. Prior to the Acquisition, the Company received partial repayment of $3,000 of the principal amount advanced and payment of accrued interest of $69, and the remaining principal balance of $2,000 was paid on July 11, 2019. Additionally, prior to the Acquisition, the Company also made a cash advance to Beadell of $354 in February 2019. The total outstanding balance at Acquisition of $2,370 (after adjusting for foreign exchange differences) was considered part of the exchange in the business combination and was therefore included in the liabilities assumed on the Acquisition Date.

Pursuant to IFRS 3, adjustments made within the measurement period of one year from the Acquisition Date, which ends on March 5, 2020, are recognized as if the accounting for the business combination had been completed at the acquisition date. In March 2020, the Company received a mineral resource and reserve estimate report for Tucano prepared by independent mining consultant firm, Roscoe Postle & Associates (“RPA”). The report is dated effective September 30, 2019 and provides updated information regarding the resources and reserves at Tucano that was not available at the initial reporting of the preliminary purchase price allocation at March 31, 2019. The Company also received an updated reclamation obligation report for Tucano during the fourth quarter of 2019. The revised resource and reserve estimates presented in the report by RPA and the revised reclamation obligation gave rise to adjustments to amounts recognized for net identifiable assets and liabilities compared to those previously recognized on acquisition on a preliminary basis. The most significant changes to the purchase price allocation includes a decrease in mineral property, plant and equipment of $29,492, an increase in the reclamation and remediation provision of $6,534, an increase in deferred income tax liability of $3,457, and an adjustment to increase goodwill by $38,682.

The following table summarizes the preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on the preliminary estimates of fair value and the adjustments made pursuant to the revised estimate of mineral resources and reserves and reclamation obligation, at the Acquisition Date to arrive at the final purchase price allocation: 

18 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

	Preliminary Purchase Price Allocation			Adjustments			Definitive Purchase Price Allocation
103,593,043 common shares issued (1)	$	93,235		$	–		$	93,235
9,749,727 warrants issued		2,646			–			2,646
Consideration		95,881			–			95,881
Cash and cash equivalents		1,441			–			1,441
Trade and other receivables		26,733			(124	)		26,609
Inventories		36,820			1,354			38,174
Other current assets		1,227			(352	)		875
Restricted cash		61			–			61
Mineral properties, plant and equipment		143,147			(29,492	)		113,655
Right-of-use assets		18,397			–			18,397
Exploration and evaluation assets		309			–			309
Other receivables – non-current		735			125			860
Trade payables and accrued liabilities		(29,024	)		(126	)		(29,150	)
Borrowings		(69,473	)		–			(69,473	)
Lease liabilities		(18,397	)		–			(18,397	)
Deferred income tax liability		–			(3,457	)		(3,457	)
Great Panther loan advance		(2,370	)		–			(2,370	)
Reclamation and remediation provision		(6,375	)		(6,534	)		(12,909	)
Other liabilities and provisions		(7,350	)		(76	)		(7,426	)
Net identifiable assets acquired		95,881			(38,682	)		57,199
Goodwill		–			38,682			38,682
	$	95,881		$	–		$	95,881

⁽¹⁾ The common shares were valued at the closing price of the Company’s shares on the NYSE American on March 5, 2019 was ($0.90).

The report by RPA identified a significant difference in the amount of economically recoverable resources and reserves acquired and as a result of this difference, the fair value of the mineral properties was re-measured. The decrease in fair value for the mineral properties and recognition of a higher reclamation obligation resulted in goodwill being recognized. The goodwill was determined to be impaired during the quarter ended March 31, 2019.

The Company’s reported consolidated statement of profit (loss) for the nine months ended September 30, 2019 as originally reported has been adjusted as if the adjustment to the purchase price allocation and the accounting for the business combination had been completed at the Acquisition Date. The following table details amounts previously reported for the nine months ended September 30, 2019 together with the profit or loss adjustments arising on the finalization of the accounting for the business combination:

	Preliminary Purchase Price Allocation			Adjustments			Definitive Purchase Price Allocation
Revenue	$	132,974		$	–		$	132,974
Cost of sales
Production costs		97,051			2,496			99,547
Amortization and depletion		21,238			61			21,299
Share-based compensation		238			–			238
General and administrative expenses		8,574			–			8,574
Exploration, evaluation, and development expenses		10,148			–			10,148
Impairment of goodwill		–			38,682			38,682
Business acquisition costs		2,863			–			2,863
Care and maintenance costs		599			–			599
Finance and other expense		12,280			808			13,088
Loss before income taxes		(20,017	)		(42,047	)		(62,064	)
Income tax expense		891			–			891
Net loss for the year	$	(20,908	)	$	(42,047	)	$	(62,955	)

The revenue and net loss of Beadell since the Acquisition Date included in the Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2019 are disclosed in note 30.

The revenue and net loss of the combined entity for the year ended December 31, 2019 as though the Acquisition had been as at January 1, 2019 would be $228,691 and $96,124, respectively.

19 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

6. TRADE AND OTHER RECEIVABLES

	December 31, 2020		December 31, 2019
Current
Trade receivables	$	2,011	$	4,605
Value-added tax receivable		3,839		4,894
PIS / COFINS – Brazil (a)		8,732		10,889
Judicial deposits – Brazil		302		389
Other		760		979
		15,644		21,756
Non-Current
PIS / COFINS – Brazil (a)		9,058		8,988
Income taxes recoverable – Brazil		2,764		1,152
Other		14		15
	$	11,836	$	10,155

(a) PIS/COFINS

The PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security) are Brazilian federal taxes that apply to all companies in the private sector. PIS is a mandatory employer contribution to an employee savings initiative, and COFINS is a contribution to finance the social security system. Companies are required to calculate and remit PIS and COFINS based on monthly gross revenues. The Company’s Brazilian gold sales are zero-rated for PIS/COFINS purposes; however, the current legislation allows for input tax credits to offset the amounts due by applying rates of 1.65% for PIS and 7.65% for COFINS, respectively, to some of the purchases in Brazil. As such, the Company has PIS/COFINS credits recorded as receivables.

The Company continues to pursue the refund of its PIS/COFINS receivables. To the extent the Company is unable to receive refunds for all of its PIS/COFINS assets, the Company expects that PIS/COFINS assets will be recovered through the Company generating future Brazilian federal tax liabilities, which can be offset against the Company’s PIS/COFINS assets if the Company elects to do so.

7. INVENTORIES

	December 31, 2020		December 31, 2019
Concentrate	$	578	$	968
Ore stockpiles		11,562		15,417
Materials and supplies		18,538		15,400
Gold in circuit		1,266		902
Gold bullion		1,794		2,430
Silver bullion		5		3
	$	33,743	$	35,120

During the year ended December 31, 2020, the inventory recognized as cost of sales was $161.8 million (2019 – $154.1 million), which includes production costs and amortization and depletion directly attributable to the inventory production process.

20 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

8. OTHER CURRENT ASSETS

	December 31, 2020		December 31, 2019
Prepaid expenses and deposits	$	3,569	$	818
Reimbursement rights (note 11(a))		1,918		6,465
Derivative assets (note 14)		–		3,454
Marketable securities		1		1
Other current assets		187		642
	$	5,675	$	11,380

9. MINERAL PROPERTIES, PLANT AND EQUIPMENT

	Mineral properties – depletable			Mineral properties – non depletable			Plant and equipment			Land and buildings			Furniture, fixtures and equipment			Right-of- use assets			Total
Cost
Balance, January 1, 2020	$	58,237		$	43,186		$	83,335		$	22,548		$	5,636		$	22,685		$	235,627
Additions		32,754			–			3,499			5,692			3			890			42,838
Change in remediation provision		3,546			–			(342	)		–			–			–			3,204
Foreign exchange translation difference		(6,375	)		(9,317	)		(10,411	)		(4,443	)		(132	)		(4,670	)		(35,348	)
Balance, December 31, 2020	$	88,162		$	33,869		$	76,081		$	23,797		$	5,507		$	18,905		$	246,321
Accumulated depreciation
Balance, January 1, 2020	$	38,964		$	–		$	44,769		$	5,726		$	4,549		$	7,809		$	101,817
Amortization and depletion		15,790			–			15,435			4,508			430			4,881			41,044
Foreign exchange translation difference		(1,129	)		–			(3,286	)		(891	)		(46	)		(1,747	)		(7,099	)
Balance, December 31, 2020	$	53,625		$	–		$	56,918		$	9,343		$	4,933		$	10,943		$	135,762
Carrying value, December 31, 2020	$	34,537		$	33,869		$	19,163		$	14,454		$	574		$	7,962		$	110,559

21 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

	Mineral properties – depletable			Mineral properties – non depletable			Plant and equipment			Land and buildings			Furniture, fixtures and equipment			Right-of- use assets			Total
Cost
Balance, January 1, 2019	$	36,066		$	–		$	35,184		$	2,573		$	4,987		$	1,150		$	79,960
Acquisition of Beadell		3,676			46,608			46,726			16,145			500			18,397			132,052
Additions		16,346			–			4,401			4,940			223			4,498			30,408
Change in remediation provision		2,996			–			30			–			–			–			3,026
Disposals		–			–			(185	)		(3	)		(44	)		(33	)		(265	)
Foreign exchange translation difference		(847	)		(3,422	)		(2,281	)		(1,107	)		(30	)		(1,327	)		(9,554	)
Balance, December 31, 2019	$	58,237		$	43,186		$	83,335		$	22,548		$	5,636		$	22,685		$	235,627
Accumulated depreciation
Balance, January 1, 2019	$	32,051		$	–		$	27,593		$	1,653		$	4,121		$	–		$	65,418
Amortization and depletion		6,820			–			17,434			4,095			464			7,878			36,691
Disposals		–			–			(185	)		–			(41	)		(6	)		(232	)
Foreign exchange translation difference		93			–			(73	)		(22	)		5			(63	)		(60	)
Balance, December 31, 2019	$	38,964		$	–		$	44,769		$	5,726		$	4,549		$	7,809		$	101,817
Carrying value, December 31, 2019	$	19,273		$	43,186		$	38,566		$	16,822		$	1,087		$	14,876		$	133,810

(a) Changes in estimate

i) Updated Mineral Resource and Reserve estimates for 2020

On March 9, 2020, the Company provided an update on the Mineral Resource for the GMC, with effective dates of October 31, 2019, and July 31, 2019, for the Guanajuato Mine and San Ignacio, respectively. Management reviewed the remaining useful life of the GMC and determined that it remains at two years as at December 31, 2019, unchanged from the previous estimate.

On March 9, 2020, the Company provided an update on the Mineral Resource and Reserves for Tucano, with an effective date of September 30, 2019, following which management reviewed the remaining useful life of Tucano. The estimate of the useful life of Tucano was determined to be two years as at December 31, 2019.

ii) Updated Mineral Resource and Reserve estimates for 2021

On November 23, 2020, the Company provided an update on the Mineral Resource for the GMC, with an effective date of July 31, 2020. The estimate of the useful life of the GMC was determined to be two years as at December 31, 2020. The estimate of the useful life of the GMC increased by one year compared to the previous estimate.

On December 15, 2020, the Company provided an update on the Mineral Resource and Reserves for Tucano, with an effective date of September 30, 2020, following which management reviewed the remaining useful life of Tucano. The estimate of the useful life of Tucano was determined to be three years as at December 31, 2020. The estimate of the useful life of Tucano increased by two years compared to the previous estimate.

22 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

(b) Leases

i) Right-of-use assets

	Mining equipment			Power generators			Vehicles			Office & Communication			Land easements			Total
Balance, January 1, 2020	$	7,376		$	5,035		$	1,095		$	658		$	712		$	14,876
Additions		801			–			–			89			–			890
Amortization and depletion		(2,663	)		(1,437	)		(378	)		(266	)		(137	)		(4,881	)
Foreign exchange translation difference		(1,589	)		(1,090	)		(241	)		(3	)		–			(2,923	)
Balance, December 31, 2020	$	3,925		$	2,508		$	476		$	478		$	575		$	7,962

	Mining equipment			Power generators			Vehicles			Office & Communication			Land easements			Total
Balance, January 1, 2019	$	–		$	–		$	–		$	881		$	269		$	1,150
Acquisition of Beadell		8,402			7,732			1,923			340			–			18,397
Additions		3,853			57			–			–			588			4,498
Disposals		–			–			–			(27	)		–			(27	)
Amortization and depletion		(4,244	)		(2,264	)		(707	)		(518	)		(145	)		(7,878	)
Foreign exchange translation difference		(635	)		(490	)		(121	)		(18	)		–			(1,264	)
Balance, December 31, 2019	$	7,376		$	5,035		$	1,095		$	658		$	712		$	14,876

ii) Lease liabilities

	December 31, 2020		December 31, 2019
Maturity analysis – contractual undiscounted cash flows
Less than one year	$	5,855	$	6,707
One to five years		5,475		12,558
More than five years		98		123
Total undiscounted lease liabilities		11,428		19,388
Lease liabilities in the Consolidated Statement of Financial Position		11,221		17,986
Current (note 12 (a))		5,296		5,499
Non-current (note 12 (b))	$	5,925	$	12,487

23 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

iii) Amount recognized in the Consolidated Statements of Comprehensive Income

	2020		2019
Interest on lease liabilities	$	1,332	$	1,564
Variable lease payments not included in the measurement of lease liabilities		49,723		43,889
Expenses relating to short-term leases		15,564		12,953
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets		11		13

Expenses relating to short-term leases for the year ended December 31, 2020, of $15.6 million (2019 - $13.0 million) include costs for mining services and haulage in the amount of $14.5 million (2019 - $11.9 million). The Company has elected not to separate the lease component from the non-lease component for short-term leases that have a lease term of less than one year.

10. EXPLORATION AND EVALUATION ASSETS

	Santa Rosa Property		El Horcón Property		Coricancha		Tucano			Total
Balance, January 1, 2019	$	988	$	1,124	$	12,953	$	–		$	15,065
Acquisition of Beadell (note 5)		–		–		–		309			309
Change in reclamation and remediation provision		–		–		304		–			304
Foreign exchange translation difference		–		–		–		(19	)		(19	)
Balance, December 31, 2019	$	988	$	1,124	$	13,257	$	290		$	15,659
Change in reclamation and remediation provision		–		–		10,739		–			10,739
Foreign exchange translation difference		–		–		–		(64	)		(64	)
Balance, December 31, 2020	$	988	$	1,124	$	23,996	$	226		$	26,334

11. OTHER ASSETS

	December 31, 2020		December 31, 2019
Restricted cash	$	31	$	927
Reimbursement rights (a)		12,178		4,705
Deferred tax assets		–		145
	$	12,209	$	5,777

(a) Reimbursement rights

Pursuant to the acquisition of Coricancha, the vendor, Nyrstar N.V. (“Nyrstar”) agreed to reimburse the Company for:

· the cost of movement and reclamation of certain legacy tailings facilities should the regulatory authorities require these to be moved, up to a maximum of $20.0 million; and

· all fines or sanctions that arise before or after closing resulting from activities or ownership of Coricancha prior to June 30, 2017, up to a maximum of $4.0 million.

24 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

12. TRADE PAYABLES AND ACCRUED LIABILITIES AND OTHER LIABILITIES

(a) Trade payables and accrued liabilities

	December 31, 2020		December 31, 2019
Trade payables	$	27,478	$	27,311
Accrued liabilities		14,758		13,181
Taxes payable		3,306		499
Lease liabilities		5,296		5,499
Other payables		2,383		3,043
	$	53,221	$	49,533

(b) Other liabilities

	December 31, 2020		December 31, 2019
Lease liabilities	$	5,925	$	12,487
Accrued liabilities		192		4,591
	$	6,117	$	17,078

25 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

13. BORROWINGS

	MACA			Unsecured bank facilities			Bank overdraft			IXM Note			Bradesco			Samsung			Total
Balance, January 1, 2020	$	16,060		$	16,034		$	589		$	10,010		$	–		$	–		$	42,693
Borrowings		–			22,044			219			–			2,500			11,250			36,013
Interest accrued		449			891			–			548			223			583			2,694
Principal repayments		(12,686	)		(20,500	)		(846	)		(10,000	)		–			(804	)		(44,836	)
Interest payments		(628	)		(953	)		–			(558	)		(319	)		(561	)		(3,019	)
Foreign exchange		(185	)		–			38			–			–			–			(147	)
Balance, December 31, 2020	$	3,010		$	17,516		$	–		$	–		$	2,404		$	10,468		$	33,398
Current	$	3,010		$	17,516		$	–		$	–		$	736		$	9,671		$	30,933
Non-current	$	–		$	–		$	–		$	–		$	1,668		$	797		$	2,465

Note	(a)			(b)								(c)			(d)
Currency	AUD			USD			USD			USD		USD			USD
Nominal interest rate		5.5	%		5.4	%		13.7	%		3-month LIBOR plus 5%		3.7	%		3-month LIBOR plus 5%
Year of maturity		2021			2021			2020			2020		2023			2022

(a) MACA

The Company made cash repayments to MACA totalling $12.7 million (A$18.5 million) during the year ended December 31, 2020, including $1.5 million (A$2.1 million), which represented 10% of the net cash proceeds from the bought deal financing (note 16(f)) required to be paid to MACA and applied against the outstanding balance of the loan under the amended loan agreement.

(b) Unsecured bank facilities

The Company has unsecured, revolving, interest-bearing bank facilities totalling $17.5 million. The unsecured bank facilities are interest bearing at a weighted average fixed interest rate of 5.4% per annum and are repayable through December 2021. Subsequent to December 31, 2020, facilities totalling $1.4 million matured and were not renewed.

(c) Bradesco

On March 11, 2020, the Company received a loan from Bradesco in the amount of $10.0 million, with net loan proceeds of $2.5 million as $7.5 million is required to be retained as cash collateral. The loan matures on February 24, 2023, and is required to be repaid in nine quarterly repayments of $1.1 million commencing March 5, 2021. The return of the cash collateral will be proportionate to the quarterly loan repayments, resulting in net quarterly repayments of $0.3 million commencing March 5, 2021. The loan principal of $10.0 million bears interest at 3.7% per annum, and the cash collateral of $7.5 million bears interest from 1.55% to 2.40% per annum. The cash collateral of $7.5 million has been netted against the $10.0 million borrowings at December 31, 2020.

26 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

(d) Samsung

On January 6, 2020, the Company entered an $11.3 million gold doré prepayment agreement with Samsung (the “Agreement”). In consideration of delivery and sale of approximately 3,000 ounces of gold contained in doré per month over a two-year period commencing January 2020 from Tucano, Samsung has agreed to advance $11.3 million (the “Advance”) to Great Panther. Gold deliveries are sold at a 0.65% discount to the benchmark price of gold at the time of delivery. The Advance will be repaid in equal instalments of $0.8 million commencing December 2020 until January 2022 such that all amounts outstanding to Samsung will be repaid in full. The Advance bears interest at an annual rate of 3-month USD LIBOR plus 5% and is secured by a pledge of all equity interests in Great Panther’s Brazilian subsidiary that owns Tucano. Great Panther has a full option for early repayment of the Advance, subject to a 3% penalty applied to the outstanding balance. The Agreement also provides Samsung with a right of offer for concentrates produced from Coricancha in certain circumstances. The transaction was completed on February 4, 2020, upon the funding of the Advance.

14. DERIVATIVE INSTRUMENTS

A significant portion of the Company’s capital, exploration, operating and administrative expenditures are incurred in BRL and Mexican peso (“MXN”), while revenues from the sale of refined gold and metal concentrates are denominated in USD. The fluctuation of the USD in relation to the BRL and MXN consequently impacts the reported financial performance of the Company. To manage the Company’s exposure to changes in the BRL and MXN exchange rate, the Company has entered, for time to time, into forward contracts to purchase foreign currencies in exchange for USD at various rates and maturity dates.

As at December 31, 2020, non-deliverable forward foreign exchange contracts for BRL against USD totalling BRL 88.2 million (December 31, 2019 – BRL 418.2 million) at various pre-determined rates ranging from BRL 4.37/USD to BRL 4.45/USD, at various maturity dates until February 2021, were outstanding. The fair value of these contracts resulted in a liability of $3.0 million at December 31, 2020 (December 31, 2019 – asset of $3.5 million). A non-deliverable forward foreign exchange contract does not require physical delivery of the designated currencies at maturity.

The objective of the Company’s BRL/USD hedging strategy, which was executed in the fourth quarter of 2019 and first quarter of 2020, was to reduce exposure to any appreciation in the BRL, which was at or near record lows relative to the USD. This allowed the Company to gain better certainty with regard to the Company’s projected operating cash-flows and capital expenditures for Tucano at a time of lower gold prices. The Company has not entered any additional forward contracts since January 2020.

27 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

15. RECLAMATION AND REMEDIATION PROVISIONS

The Company’s reclamation and remediation provisions relates to site restoration, clean-up, ongoing treatment, and monitoring at Tucano in Brazil, the GMC and Topia in Mexico, and Coricancha in Peru.

	December 31, 2020						December 31, 2019
	Total		Current		Non-current		Total		Current		Non-current
Tucano	$	15,241	$	–	$	15,241	$	17,079	$	–	$	17,079
GMC		8,184		348		7,836		8,725		–		8,725
Topia		6,601		–		6,601		4,697		–		4,697
Coricancha		38,299		610		37,689		25,073		4,927		20,146
	$	68,325	$	958	$	67,367	$	55,574	$	4,927	$	50,647

	December 31, 2020			December 31, 2019
Balance, beginning of year	$	55,574		$	27,420
Acquisition of Beadell (note 5)		–			12,909
Change in estimates		16,607			13,389
Accretion		1,517			1,840
Reclamation work performed		(902	)		–
Foreign exchange		(4,471	)		16
Balance, end of year	$	68,325		$	55,574

In 2020, the change in reclamation estimates at the GMC, Topia, Coricancha and Tucano were $0.3 million decrease (2019 – $6.7 million), $2.2 million increase (2019 – $3.2 million), $13.7 million increase (2019 – $0.6 million), and $1.0 million increase (2019 – $2.9 million), respectively. The change in reclamation estimates at the GMC reduced the carrying value of the related property and equipment. The change in estimates for Topia and Tucano were capitalized to mineral properties, plant and equipment, and for Coricancha, the change in estimate was capitalized to exploration and evaluation assets.

28 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

The reclamation and remediation provision for the GMC and Topia operations is based on the following assumptions:

	2020			2019
Total estimated future cash flows	$	18,895		$	15,745
Expected settlement of obligations (years)		2021 – 2043			2021 – 2045
Weighted average risk-free rate (discount rate)
GMC		4.6	%		1.9	%
Topia		4.8	%		2.1	%

A 1% change in the discount rate while holding the other assumptions constant would decrease or increase the provision by $0.6 million.

The reclamation and remediation provision for Coricancha is based on the following assumptions:

	2020			2019
Total estimated future cash flows	$	42,725		$	33,795
Expected settlement of obligations (years)		2021 – 2049			2020 – 2049
Weighted average risk-free rate (discount rate)		0.8	%		3.4	%

For Coricancha, a portion of the reclamation and remediation provision is offset by a reimbursement rights receivable (note 11(a)). Of the total estimated cash flows of $42.7 million, $12.2 million is reimbursable.

A 1% change in the discount rate would decrease or increase the provision by $3.0 million while holding the other assumptions constant.

The reclamation and remediation provision for Tucano is based on the following assumptions:

	2020			2019
Total estimated cash flows	$	22,594		$	19,731
Expected settlement of obligations (years)		2024 – 2029			2024 – 2029
Weighted average risk-free rate (discount rate)		6.7	%		6.7	%

A 1% change in the discount rate would decrease or increase the provision by $0.7 million while holding the other assumptions constant.

16. SHARE CAPITAL

(a) Authorized share capital

The Company has an unlimited number of common shares without par value authorized for issue. The Company has an unlimited number of Class A and Class B preferred shares without par value authorized for issue. Each class can be issuable in series. No preferred shares have ever been issued.

(b) Share options

In June 2020, upon approval by shareholders, the Company adopted an Omnibus Incentive Plan (the “Omnibus Plan”) to supplement and eventually replace the then-existing stock option plan (the "2016 Plan"). Pursuant to the Omnibus Plan, the Company may grant stock options (“Options”), restricted share units (“RSUs”), PSUs, and deferred share units (“DSUs”) to eligible employees, officers, directors, or consultants. The maximum number of common shares that the Company may issue is limited to 8% of the outstanding common shares, less the number of stock options already outstanding pursuant to the 2016 Plan and the Omnibus Plan, less twice the number of common shares counted as RSU, PSU, and DSU awards. There are additional limits with respect to insiders, individual grants, annual grants, and the number of which may be awarded to non-executive directors.

Options granted under the 2016 Plan will remain outstanding and be governed by the terms of the 2016 Plan. Options granted after the adoption of the Omnibus Plan will be governed by the Omnibus Plan.

29 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

Pursuant to the Omnibus Plan, options are non-transferable. The exercise price of options shall not be less than the closing price of the common shares on the Toronto Stock Exchange on the last business day immediately preceding the date of grant. Grant date share price is the closing market price on the day the options were granted. Options have expiry dates of no later than ten years after the date of grant and will cease to be exercisable three months following the termination of the participant’s employment or engagement.

Pursuant to the 2016 Plan, options are non-transferable, subject to permitted transferees, and the aggregate may not exceed 10% of the outstanding shares at the time of an option grant, and the aggregate to any one person may not exceed 5% of the outstanding shares. The exercise price of options is determined by the Board but shall not be less than the closing price of the common shares on the Toronto Stock Exchange on the last business day immediately preceding the date of grant. Grant date share price is the closing market price on the day the options were granted. Options have expiry dates of no later than five years after the date of grant and cease to be exercisable 90 days following the termination of the participant’s employment or engagement.

	2020					2019
	Options (000’s)			Weighted average exercise price		Options (000’s)			Weighted average exercise price
Outstanding, January 1		8,316		C$	1.20		8,322		C$	1.27
Granted		6,255			0.56		3,491			1.01
Forfeited/Expired		(3,582	)		0.78		(2,580	)		1.33
Exercised		(1,280	)		0.74		(917	)		0.73
Outstanding, December 31		9,709		C$	1.00		8,316		C$	1.20
Exercisable, December 31		3,355		C$	1.65		5,210		C$	1.24

Range of exercise prices	Options outstanding (000’s)		Weighted average remaining contractual life (years)		Options exercisable (000’s)		Weighted average exercise price
C$0.54 to $0.61		4,552		4.27		–	C$	–
C$0.62 to $1.07		2,080		3.79		526		0.97
C$1.08 to $1.59		641		2.72		522		1.37
C$1.60 to $1.90		1,379		2.07		1,250		1.61
C$1.91 to $2.19		1,057		0.61		1,057		2.18
		9,709		3.36		3,355	C$	1.65

During the year ended December 31, 2020, the Company recorded share-based compensation expense relating to share options of $0.7 million (2019 – $0.6 million).

The weighted average fair value of options granted during the year ended December 31, 2020, was C$0.23 (2019 – C$0.38). The grant date fair value of share options granted was determined using a Black Scholes option pricing model using the following weighted average assumptions:

30 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

	2020			2019
Risk-free interest rate		0.45	%		1.36	%
Expected life (years)		3.11			3.05
Annualized volatility		62	%		54	%
Forfeiture rate		17	%		15	%

The annualized volatility assumption is based on the historical volatility of the Company’s common share price on the Toronto Stock Exchange. The risk-free interest rate assumption is based on government bonds with a remaining term equal to the expected life of the options.

(c) Restricted share units ("RSUs"), Performance based restricted share unit (“PSUs”) and Deferred share units ("DSUs")

RSUs are awards for service which upon vesting and settlement entitle the recipient to receive common shares, a cash equivalent, or a combination thereof. Vesting conditions for RSUs are set by the Board but cannot exceed three years. The choice of settlement method is at the Company's sole discretion. The RSUs granted to date vest in several tranches over three years. An estimated forfeiture rate calculated and updated based on historical forfeitures and cancellations was used in the determination of fair value for the purposes of computing share-based compensation expense in the consolidated financial statements.

PSUs are granted to senior executives, and vest after a performance period of up to three years. The number of units that will ultimately vest ranges between 0% - 200% based on relative performance against a peer group of companies. The PSUs granted may only be settled through the issuance of common shares. Performance results at the end of the performance period relative to the predetermined performance criteria and the application of the corresponding performance multiplier determine how many PSUs vest for each participant.

DSUs are awards to participants for directorship which settle upon termination of service of the participant. Vesting conditions for DSUs are set by the Board. Upon settlement, DSUs entitle the recipient to receive common shares, a cash equivalent, or a combination thereof. The choice of settlement method is at the Company's sole discretion. Timing of settlement after vesting occurs is at the discretion of the participant and can be any time between the date of termination of service of the participant and December 15th of the following calendar year. The DSUs granted to date have vested immediately.

The fair values of the DSUs and RSUs granted to employees and directors have been estimated by reference to the fair value on the grant date of the equity instruments granted. The fair value of PSU was measured based on the fair value at the grant date using the Monte Carlo simulation technique on stock prices. The Company has no history of paying dividends, and consequently, no amounts in respect of dividends were included in the estimates of fair value of the equity instruments granted.

31 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

The following table summarizes information about the RSUs outstanding at December 31, 2020 and 2019:

	2020					2019
	Number of units			Weighted average grant date fair value ($/unit)		Number of units			Weighted average grant date fair value ($/unit)
Balance at January 1		1,243,530		C$	1.19		733,667		C$	1.59
Granted		1,636,000			0.56		2,429,640			1.02
Settled		(779,596	)		1.10		(1,187,459	)		1.14
Cancelled		(188,500	)		1.02		(732,318	)		1.16
Outstanding at December 31		1,911,434		C$	0.70		1,243,530		C$	1.19

The following table summarizes information about the PSUs outstanding at December 31, 2020 and 2019:

	2020					2019
	Number of units			Weighted average grant date fair value ($/unit)		Number of units		Weighted average grant date fair value ($/unit)
Balance at January 1		531,000		C$	1.14		–	C$	–
Granted		1,510,700			0.56		531,000		1.14
Cancelled		(137,200	)		0.89		–		–
Outstanding at December 31		1,904,500		C$	0.70		531,000	C$	1.14

The following table summarizes information about the DSUs outstanding at December 31, 2020 and 2019:

	2020					2019
	Number of units			Weighted average grant date fair value ($/unit)		Number of units			Weighted average grant date fair value ($/unit)
Balance at January 1		946,150		C$	1.19		251,400		C$	1.59
Granted		2,167,939			0.57		732,550			1.05
Settled		(693,900	)		0.69		(37,800	)		1.16
Outstanding at December 31		2,420,189		C$	0.78		946,150		C$	1.19

During the year ended December 31, 2020, the Company recorded share-based compensation expense relating to RSUs and DSUs of $1.4 million (2019 – $1.2 million). Share-based compensation expense of $0.4 million (2019 - $nil) relating to PSUs was recorded based on the estimated number of PSUs expected to vest.

32 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

(d) Share purchase warrants

As part of the Acquisition, the Company issued 9,749,727 share purchase warrants at an exercise price of $1.317 per share to replace the warrants previously issued by Beadell.

6,321,965 share purchase warrants have an expiry date of May 17, 2022, and 3,428,032 share purchase warrants have an expiry date of June 27, 2022.

(e) Earnings (loss) per share

	2020		2019
Income (loss) attributable to equity owners	$	334	$	(91,022	)
Weighted average number of shares (000's)		337,834		273,380
Earnings (loss) per share ‒ basic	$	0.00	$	(0.33	)

	2020		2019
Earnings (loss) attributable to equity owners	$	334	$	(91,022	)
Weighted average number of shares (000's)		337,834		273,380
Effect of dilutive stock options, RSUs and DSUs		6,362		–
Weighted average diluted number of shares (000's)		344,196		273,380
Earnings (loss) per share ‒ diluted	$	0.00	$	(0.33	)

Anti-dilutive share purchase options, warrants, deferred share units, restricted share units and performance share units have not been included in the diluted earnings per share calculation.

(f) Financings

On July 9, 2019, the Company entered into the ATM Agreement, under which the Company will be entitled, at its discretion and from time-to-time during the term of the ATM Agreement, to sell common shares of the Company on the market for a period of two years equal to the lesser of i) 10% of the aggregate market value of the Company’s outstanding common shares as at the last trading day of the month before the month in which the first trade under the offering is made, and ii) aggregate gross proceeds of $25.0 million. As at December 31, 2020, the Company has not issued any common shares under the ATM Facility.

On August 8, 2019, the Company closed a bought deal financing for aggregate gross proceeds of $17.3 million, pursuant to which the Company issued 23,000,000 common shares of the Company at the price of $0.75 per share. The Company paid a cash commission to the underwriters equal to 5% of the gross proceeds of the financing and recognized net proceeds of $15.9 million after deducting share issuance costs.

33 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

On May 20, 2020, the Company closed a bought deal financing for aggregate gross proceeds of $16.1 million, pursuant to which the Company issued 40,250,000 common shares of the Company at the price of $0.40 per share. The Company paid a cash commission to the underwriters equal to 6% of the gross proceeds of the financing and recognized net proceeds of $14.7 million after deducting share issuance costs.

17. REVENUE

The Company generates revenue primarily from the sale of precious metals, consisting of metal concentrates and refined gold.

In the following table, revenue is disaggregated by the geographic location of the Company’s mines and major products.

	2020									2019
	Brazil			Mexico			Total			Brazil			Mexico			Total
Gold	$	223,272		$	12,841		$	236,113		$	153,504		$	16,724		$	170,228
Silver		487			22,473			22,960			93			23,028			23,121
Lead		–			2,180			2,180			–			3,617			3,617
Zinc		–			3,161			3,161			–			4,861			4,861
Ore processing revenue		–			34			34			–			102			102
Smelting and refining charges		(69	)		(4,031	)		(4,100	)		(200	)		(3,524	)		(3,724	)
Revenue from contracts with customers	$	223,690		$	36,658		$	260,348		$	153,397		$	44,808		$	198,205
Changes in fair value from provisional pricing		–			457			457			–			448			448
Total revenue	$	223,690		$	37,115		$	260,805		$	153,397		$	45,256		$	198,653

The amount of revenue recognized in the year ended December 31, 2020, from performance obligations satisfied (or partially satisfied) in the previous period, due to the current period settlement of metal concentrate revenue recognized in the prior periods was a reduction of revenue of $0.2 million. At December 31, 2020, the Company had $2.5 million in revenue subject to provisional pricing in relation to the sale of concentrates.

34 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

For the years ended December 31, 2020 and 2019, the Company had revenue contracts with five customers (2019 - three customers) that accounted for the majority of the total revenues as follows:

Customer	Geographical Market	2020			2019
Customer A	Brazil	$	122,303		$	–
Customer B	Brazil		64,426			–
Customer C	Brazil		36,961			153,397
Customer D	Mexico (Guanajuato)		21,281			2,549
Customer E	Mexico (Topia)		13,950			–
Customer F	Mexico (Guanajuato)		(9	)		18,445
Customer F	Mexico (Topia)		(110	)		19,892
Customer G	Mexico (Guanajuato)		–			2,571
Customer G	Mexico (Topia)		1,969			1,697
Customer H	Mexico (Topia)		34			102
		$	260,805		$	198,653

The trade accounts receivable balance of $2.0 million at December 31, 2020 related to Customers B, D, E and G (December 31, 2019 – $4.6 million, related to Customers F and G).

18. PRODUCTION COSTS

	2020		2019
Raw materials and consumables	$	51,826	$	58,046
Salaries and employee benefits		16,321		17,403
Contractors		55,315		58,952
Repairs and maintenance		1,171		801
Site administration		3,962		3,815
Royalties		5,918		7,572
Mining duties		160		168
Share-based compensation		336		358
		135,009		147,115
Less: Change in inventories		1,624		10,022
Total production costs	$	136,633	$	157,137

The Company’s operations in Mexico were suspended during April and May 2020 due to government orders due to the COVID-19 pandemic, which affected the country's entire mining industry. During the shutdown, the Company incurred unabsorbed fixed costs of $1.5 million for these operations included in the total production costs, which otherwise would have been recorded to inventory but were expensed as incurred.

The Company also voluntarily suspended production at Topia for a five-week period in the fourth quarter of 2020 to mitigate the spread of COVID-19 in the local community. The Company also expensed fixed costs during this period of suspension.

35 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

19. GENERAL AND ADMINISTRATIVE EXPENSES

	2020		2019
Salaries and employee benefits	$	4,042	$	5,617
Professional fees		1,674		1,707
Office and other expenses		4,758		8,397
Amortization		446		514
Share-based compensation		2,006		1,322
Total general and administrative expenses	$	12,926	$	17,557

20. EXPLORATION AND EVALUATION EXPENSES

	2020		2019
Salaries and employee benefits	$	2,223	$	2,878
Raw materials and consumables		892		1,237
Professional fees		4,411		5,978
Office and other expenses		2,724		2,648
Share-based compensation		120		46
Total exploration and evaluation expenses	$	10,370	$	12,787

21. IMPAIRMENT OF GOODWILL

During the year ended December 31, 2019, the Company recorded an impairment of goodwill of $38.7 million that arose on the Acquisition.

36 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

22. OTHER INCOME (EXPENSE)

	2020			2019
Accretion expense	$	(2,629	)	$	(3,404	)
Gain (loss) on derivative instruments		(27,980	)		2,353
Foreign exchange loss		(16,397	)		(3,852	)
Other expense		(2,188	)		(3,211	)
	$	(49,194	)	$	(8,114	)

23. INCOME TAXES

(a) Income tax expense

	2020		2019
Current expense:
Income tax	$	3,647	$	135
Withholding tax		–		427
		3,647		562
Deferred tax expense (recovery):
Income tax		144		78
Withholding tax		–		104
		144		182
Income tax expense	$	3,791	$	744

37 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

The reconciliation of income taxes calculated at the Canadian statutory tax rate to the income tax expense shown in these consolidated financial statements is as follows:

	2020			2019
Net income (loss) before tax	$	4,125		$	(90,278	)
Canadian statutory income tax rate		27	%		27	%
Anticipated income tax at statutory rate	$	1,115		$	(24,181	)
Permanent differences		(3,011	)		11,750
Differences between Canadian and foreign tax rates		1,562			(3,035	)
Change in estimate		1,399			53
Impact of foreign exchange on local currencies		3,310			3,087
Change in deferred tax assets not recognized		(1,401	)		13,425
Other items		817			(355	)
Income tax expense	$	3,791		$	744
Effective tax rate		92	%		-1	%

(b) Deferred income tax assets and liabilities

The significant components of deferred tax assets and liabilities are:

	December 31, 2020			December 31, 2019
Deferred income tax assets	$	-		$	49
Deferred special mining duty asset (liabilities)		-			96
Total deferred income tax assets		-			145
Deferred income tax liabilities		(2,488	)		(3,208	)
Deferred withholding tax liabilities		(2,194	)		(2,157	)
Total deferred income tax liabilities		(4,682	)		(5,365	)
Net deferred income tax assets (liabilities)	$	(4,682	)	$	(5,220	)

(c) The following temporary differences and tax losses give rise to deferred income tax assets and liabilities:

	December 31, 2020			December 31, 2019
Tax losses carried forward	$	18,968		$	19,394
Withholding tax liability		(2,195	)		(2,157	)
Mineral properties, plant and equipment		(20,298	)		(24,557	)
Other taxable temporary differences		(1,157	)		(220	)
Other deductible temporary differences		–			2,320
Net deferred income tax liabilities	$	(4,682	)	$	(5,220	)

38 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

Losses expire as follows:

		2020				2019
Type of losses	Country	Expiry dates		Amount		Expiry dates		Amount
Non-capital losses	Canada		2026 to 2040	$	29,730		2026 to 2039	$	2,843
	Mexico		2023 to 2030	$	24,870		2020 to 2028	$	21,560
	Brazil		indefinite	$	79,382		indefinite	$	102,357
	Peru		indefinite	$	73,491		indefinite	$	74,965
Capital losses	Canada		indefinite	$	–		indefinite	$	1,171

(d) Unrecognized deferred tax assets:

The Company recognizes tax benefits on losses or other deductible amounts where it is probable the deferred tax assets will be realized. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax assets are recognized consist of the following amounts:

	December 31, 2020		December 31, 2019
Tax losses carried forward	$	217,961	$	130,131
Mineral properties, plant and equipment		45,429		90,647
Other deductible temporary differences		104,949		143,553
Unrecognized temporary differences	$	368,339	$	364,331

24. FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (interest rate, yield curves), or inputs that are derived principally from or corroborated observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

39 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

The following describes the methods and assumptions used to estimate the fair value of Level 2 financial instruments.

Financial asset or liability	Methods and assumptions used to estimate fair value
Trade receivables	Trade receivables arising from the sales of metal concentrates are subject to provisional pricing, and the final selling price is adjusted at the end of the quotation period.  The Company marks these to market at each reporting date based on a quoted forward price.  The Company’s trade receivables are valued using quoted market prices on the London Metal Exchange.
Derivative instruments	The Company’s derivative assets and derivative liabilities are comprised of forward foreign exchange contracts and put options for gold.  The fair value of the Company’s forward exchange contracts and put options for gold are determined using forward exchange rates and forward gold prices, respectively, at each reporting date.
Borrowings	The Company’s borrowings are comprised of long-term loans, convertible debentures and debt facilities.  Borrowings are initially recognized at fair value, net of transaction costs incurred.  Subsequent to initial measurement, borrowings are recorded at amortized cost using the effective interest rate method.

During the years ended December 31, 2020 and 2019, there were no transfers of amounts between Level 1, Level 2, and Level 3 of the fair value hierarchy. The following tables show the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and financial liabilities not measured at fair value is not presented if the carrying amount is a reasonable approximation of fair value.

The Company’s financial instruments include cash and cash equivalents, marketable securities, trade receivables, restricted cash, trade payables, borrowings and derivative instruments. The carrying values of the Company’s financial instruments approximate their fair values due to the short-term nature of the items or the inclusion of interest rates that approximate market rates.

In evaluating fair value information, considerable judgment is required to interpret the market data used to develop the estimates. The use of different market assumptions and valuation techniques may have a material effect on the estimated fair value amounts.

The following table summarizes the Company’s financial instruments as at December 31, 2020:

	Fair value through OCI		Fair value through P&L		Amortized cost		Total		Fair value hierarchy
Financial Assets
Cash and cash equivalents	$	–	$	–	$	63,396	$	63,396		n/a
Marketable securities		1		–		–		1		Level 1
Trade receivables		–		–		2,011		2,011		Level 2
Restricted cash		–		–		1,055		1,055		n/a
Financial Liabilities
Trade payables and accrued liabilities	$	–	$	–	$	42,428	$	42,428		n/a
Derivative liabilities		–		2,974		–		2,974		Level 2
Borrowings		–		–		33,398		33,398		Level 2

25. CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to:

· ensure there are adequate capital resources to support the Company’s ability to continue as a going concern;

· maintain adequate levels of cash to support the acquisition, exploration and development of mineral properties, exploration and evaluation assets, and the operation of producing mines;

· maintain investor, creditor and market confidence to sustain future development of the business; and

· provide returns to shareholders and benefits for other stakeholders.

40 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

In assessing the capital structure of the Company, management includes in its assessment the components of shareholders’ equity and debt, net of cash and cash equivalents and short-term deposits. Tucano, Topia and the GMC are in production, but exploration and development activities are also performed at these and other exploration properties in order to identify further reserves and resources. Additionally, for Coricancha, which has been on care and maintenance since August 2013, the Company continues to evaluate the timeline and conditions for a potential re-start. The Company plans to use existing cash, including cash raised from equity and debt financing during the year ended December 31, 2020, as well as funds from future sales of precious metals to fund operations, development and exploration activities, and capital expenditures.

The Company manages its capital in a manner that provides sufficient funding for operational activities. Annual capital and operating expenditure budgets, and rolling forecasts, are used to determine the necessary capital requirements. These budgets are approved by management and the Board and updated for changes in the underlying assumptions, economic conditions and risk characteristics of the underlying assets, as necessary. Since the Acquisition, based on current projected operating cash flows and anticipated capital expenditures, the Company obtained equity and debt financing as described in notes 13 and 16(f). The Company will continue to focus on internally generating operating cash flow to minimize its future reliance on equity and debt financing. However, the Company may determine that it requires further financing through the offering of its share capital via the ATM Facility, and/or other equity and debt financing in order to meet long-term objectives.

The Company’s capital structure is dependent on expected business growth and changes in the business environment. As at December 31, 2020, the Company was not subject to externally imposed capital requirements.

26. FINANCIAL RISK MANAGEMENT

The Board has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

The Company is exposed to certain financial risks, including credit risk, liquidity risk, and market risks such as currency risk, interest rate risk, and commodity price risk.

(a) Credit risk

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company's exposures to credit risk arise from cash and short-term investments, trade accounts receivable, and loan receivable. Lesser exposures arise from holdings of marketable securities, and other receivables.

The risk is assessed by performing an aging analysis of trade receivables, and through the review of credit ratings of the counterparties with which the Company does business.

The Company manages such credit risks by diversifying bank deposits and placing funds only in large Canadian, Brazilian and Mexican financial institutions. The Company’s investments are subject to internal investment guidelines, and they mature at various dates but rarely in excess of one year.

All of the Company’s precious metal sales are to large international metals trading companies and smelters that have been in business for many years. For the sale of metal concentrates, the Company typically receives provisional payments, within days after delivery, of up to 95% of the value of each shipment. For the sale of refined gold, the Company typically receives payment in full on the day of delivery. Historically, the Company has not had difficulty collecting receivables from its customers, nor have customers defaulted on any payments.

41 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

There is no trade receivable related to the refined gold sales as at December 31, 2020. The aging of trade receivables from metal concentrate sales is as follows:

	December 31, 2020		December 31, 2019
0 to 30 days	$	1,343	$	4,121
31 to 60 days		400		389
61 to 90 days		142		150
over 90 days		126		(55	)
	$	2,011	$	4,605

There has been no notable change in the Company's approach to credit risk management since the prior year.

(b) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company's exposure to liquidity risk arises from its trade and other payables. The Company regularly prepares rolling cash flows to identify and assess such liquidity risks.

The Company manages liquidity risk by preparing annual budgets for approval by the Board and preparing cash flow and liquidity forecasts on a quarterly basis.

There has been no notable change in the Company's approach to credit risk management since the prior year.

(c) Currency risk

Currency risk is the risk that foreign exchange rates will fluctuate significantly from expectations. The Company's exposure to currency risk arises from its operations in Canada, Brazil, Mexico and Peru, where payments to vendors and employees are often in local currency; yet, substantially all of the Company's revenues are realized in USD. Further, the Company holds a portion of its cash in currencies other than USD.

To manage this risk, the Company holds as small of an amount as practical in foreign currencies. To mitigate the Company’s exposure to changes in the exchange rates of BRL and MXN against USD, the Company may and has entered into forward currency contracts as it deems prudent. There are limits on the extent of such contracts, in excess of which Board approval is required.

For financial instruments denominated in foreign currencies as at December 31, 2020, a 10% change in the prevailing exchange rates as at December 31, 2020, with all other variables held constant, would have the following impact on the Company’s earnings:

Change in net income arising from:	Canadian dollars (“CAD”)			Brazilian real			Australian dollars (“AUD”)			Mexican pesos			Peruvian soles (“PEN”)
10% appreciation of the USD against the currency	$	68		$	1,255		$	(78	)	$	(150	)	$	287
10% depreciation of the USD against the currency	$	(80	)	$	(1,222	)	$	78		$	157		$	(287	)

The closing exchange rates for December 31, 2020, of BRL/USD of 5.197 (2019: 4.031), MXN/USD of 19.935 (2019: 18.876), AUD/USD of 1.2981 (2019: 1.423), PEN/USD of 3.621 (2019: 3.319), and CAD/USD of 1.277 (2019: 1.299) were used in the above analysis.

42 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

(d) Interest rate risk

Interest rate risk is the possibility that change in market interest rates will affect future cash flows. The Company is exposed to interest rate risk on its cash and cash equivalents, short-term deposits and borrowings. The Company’s approach is to invest cash in savings accounts and guaranteed investment certificates at fixed and floating rates of interest over varying maturities. The Company manages this risk by monitoring changes in interest rates and by maintaining a relatively short duration for the Company's portfolio of cash equivalent securities. Many of these instruments can be immediately redeemed and those of a fixed-term do not exceed one year. The Company is exposed to interest rate risk on its variable interest rate borrowings, specifically the MACA loan (note 13(a)). Additionally, the unsecured bank facilities (note 13(b)) are expected to roll over as they become due and are therefore subject to interest rate changes.

There has been no notable change in the Company's approach to interest rate risk management since the prior year.

For interest-bearing financial instruments as at December 31, 2020, an increase or decrease in interest rate of 1% applied would increase or decrease net income and comprehensive income by $0.1 million.

(e) Commodity price risk

The Company is subject to risk from fluctuations in the market prices of gold, silver, lead and zinc. Such fluctuations directly affect the Company's reported revenues.

The profitability of the Company’s operations is highly correlated to the market prices of these metals, as is the ability of the Company to develop its mineral properties and exploration and evaluation assets. The value of trade receivables at the reporting date also depends on changes in metal prices until finalization of sales prices per the contractual quotational period.

If metal prices decline for a prolonged period below the cost of production of the Company's mines, it may not be economically feasible to continue production.

The Company has a stated policy that it will not engage in long-term hedging of gold and silver prices.

There was no notable change in the Company’s approach to commodity price risk management from the prior year until December 31, 2020.

For provisionally priced trade receivables, a 10% change in the prevailing commodity prices as at December 31, 2020, with all other variables held constant, would have the following impact on the Company’s earnings:

	10% change in gold		10% change  in silver		10% change  in lead		10% change in zinc
Change in net income	$	549	$	991	$	69	$	153

43 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

27. COMMITMENTS AND CONTINGENCIES

(a) Commitments

As at December 31, 2020, the Company had the following commitments:

	Total		1 year		2-3 years		4-5 years		Thereafter
Operating lease payments	$	32	$	32	$	–	$	–	$	–
Drilling services		710		710		–		–		–
Equipment purchases		1,420		1,420		–		–		–
Total commitments	$	2,162	$	2,162	$	–	$	–	$	–

On June 29, 2020, the Company announced it had reached an agreement with Nyrstar International B.V. and Nyrstar Netherlands (Holdings) B.V. (together, “Nyrstar”) and NN2 Newco Limited, the parent of the Nyrstar entities, to amend certain agreements (the “Amending Agreements”) in respect of the Company’s remediation obligations in connection with Great Panther’s 2017 acquisition of Coricancha from Nyrstar. The Amending Agreements include amendments to the Share Purchase Agreement under which the Company purchased Coricancha from Nyrstar and the related agreement for Coricancha under which Nyrstar agreed to fund a portion of the bond to secure remediation costs for Coricancha in the future in respect of a permanent closure of the mine.

Under the Amending Agreements, Nyrstar has agreed to extend its requirement to post remediation bond obligations as security for closure costs at Coricancha beyond the original June 30, 2020 expiry date. The Amending Agreements provide that Nyrstar will maintain a $7.0 million bond until June 30, 2021 and $6.5 million for the following year, effectively deferring Great Panther’s funding requirements for these amounts until June 30, 2022, unless Great Panther makes a decision to permanently close Coricancha. Great Panther has provided 80% collateral in the form of a deposit to cover its additional $2.7 million bond requirement as of June 30, 2020. In June 2017, the bond closure amount required by the Ministerio de Energía y Minas de Perú (the “MEM”) was increased by $1.2 million, which Great Panther funded. The total bond amount required by the MEM was $10.9 million as of December 31, 2020.

(b) Contingencies

i) GMC

Tailings storage

In February 2016, the Mexican national water authority, Comisión Nacional del Agua (“CONAGUA”), required that the Company make formal applications for permits associated with the occupation and construction of the tailings storage facility (“TSF”) at the GMC. The Company filed its applications, and the authorities conducted an inspection of the TSF and requested further technical information, which the Company submitted in December 2017. In July 2017, the Company submitted to the Mexican environmental permitting authority, Secretaría del Medio Ambiente y Recursos Naturales (“SEMARNAT”), an amendment to the Environmental Impact Statement (“EIS”) requesting an expansion of the existing TSF (Lifts 18 and 19). This was accepted by SEMARNAT subject to approval by CONAGUA and, in February 2019, CONAGUA requested additional technical information.

44 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

The Company has been working with permitting authorities to expand the capacity of the GMC’s existing TSF. In parallel, the Company has completed its review to identify technical alternatives to extend its tailings storage capacity utilizing existing permits and has begun modifying the tailings discharge using cyclones to extend the tailings capacity until June 30, 2021. This will allow more time for receipt of the pending expansion approval; however, if the expansion approval of the TSF has not been received prior to June 30, 2021 or is conditioned, the Company may need to cease milling operations at the GMC until receipt of the CONAGUA expansion approval or the satisfaction of such conditions.

Additional water use permits

Since the February 2016 correspondence with CONAGUA, the Company has also determined through its own undertakings that additional CONAGUA permits may be needed in connection with water discharge and water use at the GMC’s TSF. The Company is assessing technical options and is confirming if additional water use permits are required. The Company believes that it will be able to address or mitigate the need for any necessary water discharge and use permits without any impact to its operations but cannot provide complete assurance that there is no risk in this regard. In the fourth quarter of 2019, the Company received the authorization to discharge wastewater from San Ignacio.

(ii) Topia

Topia was accepted into a voluntary environmental audit program supported by the Mexican environmental compliance authority, the Procuraduría Federal de Protección al Ambiente (“PROFEPA”). Devised as a cooperative management strategy, the audit commenced in 2017. The Company completed remediating the important environmental legacy issues, but has not reached full compliance with the audit within the time-frame proposed. The Company anticipates that it will be able to achieve full compliance; however, the Company cannot provide complete assurance that upon completion of the compliance program, further reviews will not lead to future suspensions of operations.

On March 9, 2020, the Company disclosed it ceased depositing tailings on the Topia Phase II TSF following a recommendation from the Company's independent tailings management and geotechnical consultants. This was due to an increase in the rate of movement in material below the TSF that was assumed to be related to increase in groundwater pressures. During the suspension of non-essential activities due to COVID-19, Great Panther continued monitoring the conditions on Phase I and Phase II and installed additional geotechnical instrumentation. In addition, tests were carried out to determine the state of the tailings in Phase I and extensive work was carried out to identify the source and reduce the flow of water into the base of the TSF. Consequently, Phase II was restarted on the basis of positive results of monitoring and a stacking plan for Phase II received from a third-party consultant with strict control on sequence and compaction level. The Company has also received the required permit for Phase III, which is expected to be available for use after constructing retaining walls and erosion controls around the base of the facility.

There is no assurance that any remediation plan for Phase I or that the stacking plan for Phase II will be successful in preventing further movement of the tailings. Any movement of the material underlying the TSF could result in significant environmental damage, potential loss of life and property and consequential liability to the Company.

(iii) Coricancha

Coricancha has been on care and maintenance since August 2013 and is subject to oversight by the Organismo de Evaluación y Fiscalización Ambiental (“OEFA”), the Peruvian public agency responsible for environmental assessment and inspection, and by the Organismo Supervisor de la Inversión en Energía y Minería (“OSINERGMIN”), which is the Peruvian regulatory body with oversight responsibility over energy and mining companies.

45 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

Fines and sanctions

Nyrstar has agreed to reimburse the Company for all fines or sanctions that resulted from activities or ownership of Coricancha prior to June 30, 2017, up to a maximum of $4.0 million. Accordingly, a reimbursement right in the amount of $1.5 million has been recorded in respect of the following fines or sanctions:

· $1.3 million for fines and sanctions which may be levied by OSINERGMIN. Also, there are open administrative and judicial proceedings by OSINERGMIN, the outcomes of which are not yet readily determinable.

· $0.2 million for fines and sanctions to be levied by OEFA. In addition, there are open administrative and judicial proceedings by OEFA, the outcomes of which are not yet readily determinable.

The Company has accrued for and recorded a further reimbursement right of $0.4 million for certain civil lawsuits filed by individuals and former suppliers.

Legacy tailings facilities

The Company has undertaken the reclamation of certain legacy tailings facilities at Coricancha under a remediation plan approved by the MEM, the relevant regulatory body. In addition, as part of the purchase of Coricancha, the Company has an agreement with Nyrstar for the reimbursement of the cost of these reclamation activities. The Company is seeking approval of a modification to a remediation plan from the MEM in accordance with the recommendations of an independent consultant to preserve the stability of nearby areas. The Company has changed the scheduling of the reclamation work, pending a decision from the MEM regarding the proposal to modify the approved remediation plan. To protect itself from any pending or future fines, penalties, regulatory action or charges from government authorities and to request the MEM issue a decision of the proposed modification to the remediation plan for legacy tailings, the Company initiated a Constitutional Case and was successfully awarded an injunction to prevent fines and penalties until MEM issues its decision. The Company was notified of a second instance decision in the Constitutional Case to dismiss the Constitutional Case. The Company has the opportunity to appeal this decision and is considering the merits of an appeal. The Company expects that the related injunction will be cancelled in the near future. While it is possible to appeal the Constitutional Case proceeding, it will not be possible to appeal the cancellation of the injunction.  The cancellation of the injunction will expose the Company to potential fines, penalties, regulatory action or charges from government authorities. The decision requests that the MEM issue a technical report evaluating the proposed modifications to the remediation plan within two months of the decision. Separately, the Company plans to develop alternatives to propose to MEM to allow for the full reclamation while preserving the stability of the surrounding areas. Although the Company has all necessary permits to restart Coricancha, if this matter is not resolved favourably, it may impact the Company’s stated plans and objectives for Coricancha.

(iv) Tucano

Various claims related to Brazil indirect taxes and labour matters

As a result of the Acquisition, the Company has various litigation claims for a number of governmental assessments pertaining to indirect taxes, and labour disputes associated with former employees and contract labour in Brazil.

The indirect tax matter principally relates to claims for the state sales tax, Imposto Sobre Operações Relativas à Circulação de Mercadorias e Serviços de Transporte Interestadual de Intermunicipal e de Comunicações (“ICMS”), which are mostly related to rate differences. For these claims, the possibility of loss was not considered probable by the Company’s Brazilian attorneys, and no provision has been recognized.

The labour matters principally relate to claims made by former employees and contract labour for the equivalent payment of all social security and other related labour benefits, as well as consequential tax claims, as if they were regular employees. As of December 31, 2020, the items for which a loss was probable related to the labour disputes, inclusive of any related interest, amounted to approximately $1.6 million, for which a provision was recognized.

In connection with the above proceedings, a total of $0.3 million (December 31, 2019 - $0.4 million) of escrow cash deposits were made as of December 31, 2020 (note 6). Generally, any escrowed amounts would be refundable to the extent the matters are resolved in the Company’s favour.

46 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

Environmental damages - William Creek

In May 2009, the State of Amapá Public Prosecutor (“MPAP”) filed a public civil action seeking payment for environmental damages caused to William Creek, as well as to other creeks located in the region of influence of Zamin Amapá Mineração (“Zamin”) and Tucano mines. The alleged damage is related to the modification of the creek’s riverbed, soiling and sedimentation. In January 2018, the Amapá State Court ordered Tucano to pay a fine of approximately $1.1 million (BRL 6.0 million plus interest and inflation counted as from the date of the damage) to the State Environmental Fund. As at December 31, 2020, the updated value with interest and inflation is approximately $5.7 million (BRL 29.7 million). The Company is in the process of appealing, and the likelihood of total loss is not considered probable based on legal advice received. However, the best estimate of the loss is less than the full amount claimed, and the Company has accrued the best estimate of the cost to settle the claim.

Archaeological sites damage

In May 2016 and June 2016, the Brazilian Federal Public Prosecutor (“MPF”) filed public civil actions seeking compensation to be paid by Zamin, the State of Amapá and Tucano for damages to 34 archaeological sites as a result of activities in 2006-2009 at the Amapá-MMX Iron Ore Project currently owned by Zamin and as a result of activities in 2004-2010 at the Amapari Project and for the State of Amapá failing to take proper action during the environmental licensing procedures (the “Archaeological Civil Actions”). During the three months ended December 31, 2020, the 6th Lower Court in the Judiciary Section of the State of Amapá ratified a settlement agreement between Tucano and the MPF in respect of the Archeological Civil Actions (the “Settlement Agreement”). Under the terms of the Settlement Agreement, as full and final settlement of the Archaeological Civil Actions, Tucano agreed to earmark BRL 8.0 million, no later than December 31, 2021, for implementation of socio-environmental measures for the benefit of the State of Amapá community, including a combination of community food donations in the first three months following ratification and those socio-environmental measures defined by mutual agreement of Tucano and MPF for the benefit of the communities in the Municipalities of Pedra Branca do Amapari and Serra do Navio funded in the second half of 2021. The Instituto do Patrimônio Histórico e Artístico Nacional - Historic and Artistic National Heritage Institute (“IPHAN”) have sought clarification of the settlement agreement requesting certain of the settlement funds be designated specifically to IPHAN.

In related proceedings, Tucano is in the process of appealing fines and damages arising in the Federal Court of Appeal. The likelihood of total loss is not considered probable based on legal advice received. However, the best estimate of the loss is less than the full amount claimed and the Company has accrued the best estimate of costs to settle the claim.

Cyanide usage

In October 2018, the public prosecutor’s office of labour affairs for the State of Amapá filed a public civil action seeking payment for potential damages and medical costs in relation to the Company’s employees’ exposure to cyanide used in the processing of its gold. In August 2019, a regional labour court ordered Tucano to pay compensation of approximately BRL 4.0 million plus interest and inflation for these damages, in addition to surveillance and funding medical costs of any diseases to Tucano’s internal and outsourced employees and former employees, and to stop using cyanide in its production process within one year from the final non-appealable decision on the proceedings. Tucano is in the process of appealing to a Federal Superior Labour Court all aspects of the regional labour court decision. In March 2020, it was accepted that the appeal, exclusively with respect to whether or not the use of cyanide may continue, be admitted for consideration by the Federal Superior Labour Court and the balance of the decision has not yet been accepted for consideration and is under appeal. Tucano is not aware of any circumstances of former or current employees who have suffered health consequences from exposure to cyanide at the Company’s operations. In addition, the Company notes that the use of cyanide in the processing of gold is common in the industry within Brazil and is not prohibited by any federal law in Brazil and that the Company complies with proper safety standards in the use and handling of cyanide in its operations. The Company believes the claims are without merit and that it is too early in the process to be able to determine the outcome. As the matter progresses, the Company will review its assessment.

47 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

28. RELATED PARTY TRANSACTIONS

Key management personnel include the Company’s Directors, President and Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, and vice presidents. Amounts owing to key management personnel are included in trade and other payables. The Company is committed to making severance payments amounting to approximately $3.4 million to certain officers and management in the event of a change in control of the Company. Compensation to key management personnel consisted of the following:

	2020		2019
Salaries and benefits	$	3,059	$	1,674
Contract completion bonus – interim CEO		171		–
Directors’ fees		531		478
Termination benefits		–		658
Share-based compensation		1,935		1,227
	$	5,696	$	4,037

Directors fees during the year ended December 31, 2020 include $nil for special committee fees (2019 – $0.1 million).

48 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

29. SUPPLEMENTAL CASH FLOW INFORMATION

(a) Other non-cash items

	2020			2019
Accretion	$	2,629		$	3,404
Finance expense		3,981			5,752
Finance income		(347	)		(726	)
Loss on disposal of fixed assets		1			32
	$	6,264		$	8,462

(b) Non-cash investing and financing activities

	2020		2019
Change in reclamation and remediation provision included within mineral properties and plant and equipment, exploration and evaluation assets	$	13,943	$	3,330
Change in lease liability related to right-of-use assets		890		4,498
Shares issued upon settlement of obligation		39		–
Repayment of MACA borrowings by way of issuance of shares		–		10,524

49 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

30. OPERATING SEGMENTS

The Company’s operations are all within the mining sector, consisting of three operating segments, two of which are located in Mexico, one of which is located in Brazil, plus one segment associated with Coricancha in Peru, one Exploration segment and one Corporate segment. Due to diversities in geography and production processes, the Company operates Tucano, the GMC, and Topia mines separately, with separate budgeting and evaluation of results of operations and exploration activities. The Coricancha segment contains the net assets associated with Coricancha, and the cost of its exploration, evaluation and development activities are separately budgeted and reported. The Corporate segment provides financial, human resources and technical support to the three mining operations and Coricancha. The GMC operation produces silver and gold in concentrate, and the Topia operation produces silver, gold, lead and zinc in concentrate for refining off-site. The Tucano operation produces gold doré. The Exploration segment includes the Company’s mineral exploration and evaluation assets at Santa Rosa, El Horcón, Plomo and Argosy.

	Operations
	Tucano		GMC			Topia			Coricancha			Exploration			Corporate			Total
2020
External revenue	$	–	$	21,219		$	15,896		$	–		$	–		$	223,690		$	260,805
Intersegment revenue		210,623		–			–			–			–			(210,623	)		–
Amortization and depletion		35,986		1,564			2,745			198			–			258			40,751
Exploration and evaluation expenses		669		2,540			341			5,982			187			651			10,370
Non-cash change in reclamation and remediation provision		–		41			–			–			–			–			41
Care and maintenance costs		–		693			–			–			–			–			693
Finance income		121		–			–			–			–			226			347
Finance expense		2,597		–			–			188			–			1,196			3,981
Net income (loss) before income taxes		46,549		(2,621	)		(734	)		(6,503	)		(667	)		(31,899	)		4,125
Income tax expense (recovery)		3,751		26			14			–			–			–			3,791
Net income (loss)		42,798		(2,647	)		(748	)		(6,503	)		(667	)		(31,899	)		334
Additions to non-current assets		42,109		4			3,794			10,831			–			43			56,781
As at December 31, 2020
Total assets	$	167,524	$	4,597		$	14,456		$	44,705		$	2,126		$	47,012		$	280,420
Total liabilities	$	87,304	$	16,535		$	2,244		$	43,333		$	500		$	18,801		$	168,717

50 

Great Panther MINING Limited

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Tabular amounts expressed in thousands of US dollars, except where otherwise noted)

As at and for the year ended December 31, 2020 and 2019

	Operations
	Tucano			GMC			Topia			Coricancha			Exploration			Corporate			Total
2019
External revenue	$	99,572		$	23,543		$	21,713		$	–		$	–		$	53,825		$	198,653
Intersegment revenue		49,818			–			–			–			–			(49,818	)		–
Amortization and depletion		30,816			1,436			2,431			253			4			245			35,185
Exploration and evaluation expenses		608			2,550			889			8,557			176			7			12,787
Non-cash change in reclamation and remediation provision		–			6,829			2,923			–			–			–			9,752
Care and maintenance costs		–			795			–			–			–			–			795
Impairment of goodwill		38,682			–			–			–			–			–			38,682
Interest income		14			–			–			4			–			708			726
Finance costs		5,741			–			–			2			–			9			5,752
Loss before income taxes		(66,473	)		(7,436	)		(2,796	)		(9,524	)		(264	)		(3,785	)		(90,278	)
Income tax expense		–			122			91			–			–			531			744
Net loss		(66,473	)		(7,558	)		(2,887	)		(9,524	)		(264	)		(4,316	)		(91,022	)
Additions to non-current assets		28,593			317			3,963			1,195			–			821			34,889
As at December 31, 2019
Total assets	$	177,683		$	7,060		$	15,304		$	28,414		$	2,159		$	40,122		$	270,742
Total liabilities	$	107,354		$	15,772		$	2,445		$	29,556		$	–		$	15,116		$	170,243

31. SEASONALITY OF OPERATIONS

The Company’s Tucano operation is subject to seasonal fluctuations as a result of weather conditions. Specifically, Tucano’s production is stronger in the second half of a calendar year as the dry season enables higher rates of mining productivity and the mine plan is characterized by lower strip ratios and access to higher grades in the open pits. Accordingly, Tucano typically has more favourable operating results in the second half of the year.

51 

EX-99.3

Exhibit 99.3

 

GREAT PANTHER MINING LIMITED

MANAGEMENT’S DISCUSSION AND ANALYSIS 

FOR THE YEAR ENDED DECEMBER 31, 2020

GREAT PANTHER MINING LIMITED	Page 1
Management’s Discussion & Analysis

TABLE OF CONTENTS

PROFILE	3
SIGNIFICANT EVENTS	4
OPERATIONAL AND FINANCIAL HIGHLIGHTS	8
MINING OPERATIONS	9
ADVANCED PROJECTS	17
RESULTS OF OPERATIONS	18
SELECTED ANNUAL INFORMATION	26
SUMMARY OF SELECTED QUARTERLY INFORMATION	27
GUIDANCE AND OUTLOOK	29
LIQUIDITY AND CAPITAL RESOURCES	30
TRANSACTIONS WITH RELATED PARTIES	34
CRITICAL ACCOUNTING ESTIMATES	34
CHANGES IN ACCOUNTING POLICIES	34
NEW ACCOUNTING STANDARDS	34
FINANCIAL INSTRUMENTS	34
SECURITIES OUTSTANDING	35
NON-GAAP MEASURES	35
INTERNAL CONTROLS OVER FINANCIAL REPORTING	41
TECHNICAL INFORMATION	41
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS	41
CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES	47

GREAT PANTHER MINING LIMITED	Page 2
Management’s Discussion & Analysis

MANAGEMENT'S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) should be read in conjunction with the annual audited consolidated financial statements of Great Panther Mining Limited (“Great Panther” or the “Company”) for the year ended December 31, 2020, and the notes related thereto, which are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), and the most recent annual Form 40-F/Annual Information Form (“AIF”) on file with the US Securities and Exchange Commission (“SEC”) and Canadian provincial securities regulatory authorities.

All information in this MD&A is current as at March 4, 2021, unless otherwise indicated. All dollar amounts are expressed in US dollars (“USD”) unless otherwise noted. References may be made to the Brazilian real (“BRL”), Mexican peso (“MXN”), Australian dollar (“AUD”) and Canadian dollar (“CAD”).

This MD&A contains forward-looking statements and should be read in conjunction with the Cautionary Statement on Forward-Looking Statements section at the end of this MD&A.

This MD&A contains references to non-Generally Accepted Accounting Principles (“non-GAAP”) measures. Refer to the section entitled Non-GAAP Measures for explanations of these measures and reconciliations to the Company’s reported financial results. As these non-GAAP measures do not have standardized meanings under IFRS, they may not be directly comparable to similarly titled measures used by others. Non-GAAP measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

Some tables and summaries contained in this MD&A may not sum exactly, due to rounding.

PROFILE

Great Panther is an intermediate precious metals mining and exploration company listed on the Toronto Stock Exchange trading under the symbol GPR, and on the NYSE American trading under the symbol GPL. The Company has three wholly owned mining operations including the Tucano gold mine (“Tucano”), which produces gold doré and is located in Amapá State in northern Brazil. In Mexico, Great Panther operates the Topia mine (“Topia”) in the state of Durango, which produces concentrates containing silver, gold, lead and zinc, and the Guanajuato Mine Complex (the “GMC”) in the state of Guanajuato. The GMC comprises the Guanajuato mine (“Guanajuato”), the San Ignacio mine (“San Ignacio”), and the Cata processing plant, which produces silver and gold concentrates.

On March 5, 2019, Great Panther acquired Beadell Resources Limited (“Beadell”) (the “Acquisition”), a gold mining company previously listed on the Australian Securities Exchange, which owned and operated Tucano. Tucano is part of an expansive set of exploration tenements, which are highly prospective and located in an under-explored ‘Birimian age’ greenstone terrane.

Great Panther also owns the Coricancha Mine Complex (“Coricancha”), a gold-silver-copper-lead-zinc mine and 600 tonnes per day processing facility. Coricancha is located in the central Andes of Peru, approximately 90 kilometres east of Lima. Coricancha is on care and maintenance, and the Company is evaluating the conditions under which a restart of production can be implemented.

Great Panther also owns several exploration properties which include: El Horcón, Santa Rosa, and Plomo in Mexico, and Argosy in Canada. The El Horcón property is located 100 kilometres by road northwest of Guanajuato, Santa Rosa is located 15 kilometres northeast of Guanajuato, and the Plomo property is located in Sonora, Mexico. The Argosy property is located in the Red Lake Mining District in northwestern Ontario, Canada.

Additional information on the Company, including its AIF, can be found on SEDAR at www.sedar.com and EDGAR at www.sec.gov/edgar.shtml or on the Company’s website at www.greatpanther.com.

GREAT PANTHER MINING LIMITED	Page 3
Management’s Discussion & Analysis

SIGNIFICANT EVENTS

Management and Board Member Changes

On April 21, 2020, the Company announced changes to the Board of Directors and senior management team. Rob Henderson was appointed President and CEO effective April 21, 2020.  Mr. Henderson is a professional engineer and seasoned mining executive with 35 years of experience in operations, capital projects, and mining finance.  Most recently, Mr. Henderson was President and CEO of Amerigo Resources Ltd., a copper producer with assets in Chile.  He oversaw a successful $95.0 million debt financing to complete a major expansion project, safely increased production, lowered cash costs and extended the life of the operation to 2036. Prior to Amerigo, Mr. Henderson was SVP Technical Services with Kinross Gold Corporation. Board Chair and Interim President and CEO Jeffrey Mason stepped down from both roles and resigned from the Board of Directors; however, continued to provide consulting services to the Company to ensure a smooth transition of the executive duties to Mr. Henderson. 

On April 21, 2020, the Company also appointed David Garofalo to the Board and as Board Chair.  Mr. Garofalo was previously President and CEO of Goldcorp Inc. until its sale to Newmont Corporation, creating the world's largest gold mining company. In addition to Mr. Garofalo, the Company also appointed Joseph Gallucci and Alan Hair to the Board. Mr. Gallucci has significant experience in mining investment banking and capital markets. He is currently a Managing Director and Head of Mining, Investment Banking at Laurentian Bank Securities Inc. Mr. Hair is a corporate director, and the former Chief Executive Officer of Hudbay Minerals Inc. and has extensive experience in leading mining companies.

Mr. Robert Archer did not stand for re-election to the Company’s board of directors at the 2020 annual general meeting of shareholders. Mr. Archer continues to provide services to the Company in an advisory capacity.

COVID-19 Response and Considerations

Great Panther has been closely monitoring the effects of the spread of the coronavirus respiratory disease (“COVID-19”) with a focus on the jurisdictions in which the Company operates and its head office location in Canada.  The rapid worldwide spread of COVID-19 has resulted in governments implementing restrictive measures to curb the spread of the virus.  During this period of uncertainty, Great Panther’s priority is to safeguard the health and safety of personnel and host communities, support and enforce government actions to slow the spread of COVID-19 and assess and mitigate the risks to our business continuity. As of the date of this MD&A, mining and processing operations at Tucano, the GMC, and Topia are operating without any significant impacts related to COVID-19.

In response to the increased rate of spread of COVID-19 infection, including the high incidence of infection in areas where the Company operates, Great Panther has developed and implemented COVID-19 prevention, monitoring and response plans following the guidelines of the World Health Organization and the governments and regulatory agencies of each country in which it operates to ensure a safe work environment. There is no assurance the Company’s plans and protocols will be effective in stopping the spread of the COVID-19 virus. The Company may experience an increase in COVID-19 infection amongst its employees and contractors even with the adoption of enhanced safety protocols and safeguards.

On April 2, 2020, the Company commenced an orderly suspension of mining and processing activities at the GMC and Topia in compliance with the directive of the Mexican Federal Government announced on March 31, 2020, to mitigate the spread of COVID-19.  The first directive, which affected the mining industry across Mexico, required suspension of activities until April 30, 2020, and was subsequently extended to May 30, 2020.  On June 3, 2020, the Company restarted mining operations in Mexico following a government order adding mining to the list of essential services.  The restart followed a phased approach to accommodate new protocols in response to COVID-19. 

On November 16, 2020, the Company voluntarily suspended operations in Topia due to the detection of COVID-19 among the workforce in an effort to limit the spread among the workforce and in the local community. On December 17, 2020, the Company re-started Topia operations.

The Company has prepared contingency plans if there is a full or partial shutdown at any of its operations and is prepared to act quickly to implement them.  If authorities seek to restrict mining activities to mitigate the spread of COVID-19 or if the Company faces workforce shortages as a result of the spread, the Company will endeavour to do so in a manner to satisfy authorities and address workforce availability without executing a complete shutdown. The Company cannot provide assurance that there will not be interruptions to its operations in the future.

GREAT PANTHER MINING LIMITED	Page 4
Management’s Discussion & Analysis

Tucano Gold Mine

Exploration and Mineral Reserve and Resource Updates

In January 2020, Great Panther announced plans for a $6.6 million 2020 exploration drill program for Tucano, comprised of both "near-mine" and "regional" targets.

On June 23, 2020, Great Panther announced initial drill results from the 2020 drill program at Tucano. The drilling included 7,236 metres of near-mine diamond and reverse circulation drilling at the Tapereba (“TAP”) AB1 and AB3 open pits and 6,333 metres of rotary air blast and auger drilling on regional exploration targets. A full table of all significant intercepts drilled can be found on the Company's website.

On December 15, 2020, the Company released an updated Mineral Reserve and Mineral Resource estimate (the “MRMR”) for Tucano, with an effective date of September 30, 2020 (the “2020 MRMR”). After adjustments for mining depletion since September 30, 2019, the effective date of the Company’s last Mineral Reserve estimate announced on March 9, 2020 (the “2019 MRMR”):

• Proven and Probable Mineral Reserves were estimated to contain 629,000 gold ounces, which represented a decline of roughly 17,000 gold ounces relative to the 2019 MRMR. (comprised of 3.9 million tonnes at an average grade of 1.2 g/t gold in the Proven Mineral Reserve category and 5.9 million tonnes at an average grade of 2.53 g/t gold in the Probable Mineral Reserve category)

• Measured and Indicated (“M&I”) Mineral Resources (inclusive of Mineral Reserves) were estimated to contain approximately 953,000 gold ounces, consistent with the 2019 MRMR. (comprised of 4.8 million tonnes at an average grade of 0.97 g/t gold in the Measured Mineral Resource category and 11.4 million tonnes at an average grade of 2.18 g/t gold in the Indicated Mineral Resource category)

• Inferred Mineral Resources were estimated to contain 534,000 gold ounces, a 34% decrease since the 2019 MRMR. (comprised of 5.997 million tonnes at an average grade of 2.77 g/t gold in the Inferred Mineral Resource category)

In January 2021, Great Panther announced its 2021 exploration program at Tucano with plans for 60,000 metres of drilling focused on the key objectives of continuing to extend the Tucano open pit mine life, further proving up the underground with a view to extending the high-grade zones, and making meaningful inroads into key regional targets in the expansive Tucano regional land package.

On February 2, 2021, Great Panther filed a technical report in respect of the 2020 MRMR, titled “Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil” (the “Tucano Technical Report”). The Tucano Technical Report is available on SEDAR at www.sedar.com and EDGAR at www.sec.gov.

Guanajuato Mine Complex

On March 9, 2020, the Company released an updated Mineral Resource estimate for the GMC, with effective dates of October 31, 2019, and July 31, 2019, for Guanajuato and San Ignacio, respectively (the “2019 GMC MRE”).

On November 23, 2020, the Company released an updated Mineral Resource estimate for the GMC, with an effective dates of July 31, 2020 (the “2020 GMC MRE”), based on 199 holes totalling 19,913 metres of drilling since the previous 2019 GMC MRE. After adjustments for mining depletion since the effective dates of the 2019 GMC MRE:

• M&I Mineral Resources were estimated to contain 10.2 million silver equivalent ounces (“Ag eq oz”), a 17% increase over the previous estimate. (The 2020 GMC MRE is comprised of 600,941 tonnes at an average grade of 195 g/t silver and 2.16g/t gold in the Measured Mineral Resource category and 220,910 tonnes at an average grade of 209 g/t silver and 1.83g/t gold in the Indicated Mineral Resource category.)

• Inferred Mineral Resources were estimated to contain 18.1 million Ag eq oz represented a more than doubling of the previous estimate. (comprised of 1,453,008 tonnes at an average grade of 185g/t silver and 2.25g/t gold)

On December 22, 2020, Great Panther filed a technical report in respect of the 2020 MRE, titled “NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato and San Ignacio Operations, Guanajuato State, Mexico” (the “GMC Technical Report”). The GMC Technical Report is available on SEDAR at www.sedar.com and EDGAR at www.sec.gov. 

GREAT PANTHER MINING LIMITED	Page 5
Management’s Discussion & Analysis

The Company has been working with permitting authorities to expand the capacity of its existing GMC tailings storage facilities (“TSF”). In parallel, the Company has completed its review to identify technical alternatives to extend its tailings storage capacity utilizing existing permits and has begun modifying the tailings discharge using cyclones to extend the tailings capacity until June 30, 2021. This will allow more time for receipt of the pending expansion approval; however, if the expansion approval of the TSF has not been received prior to June 30, 2021 or is conditioned, the Company may need to cease milling operations at the GMC until receipt of the expansion approval or satisfaction of conditions.

Topia

Phase II and Phase III Tailings Storage Facilities

As disclosed on March 9, 2020, Great Panther ceased depositing tailings on the Topia Phase II TSF following a recommendation from the Company's independent tailings management and geotechnical consultants.

During the suspension of non-essential activities due to COVID-19, Great Panther continued monitoring the conditions on Phase II and installed additional geotechnical instrumentation. In addition, tests were carried out to determine the state of the tailings in Phase I. Extensive work has been carried out to identify and reduce the flow of water into the base of the TSF. Monitoring indicates it is safe to return to stacking in Phase II, which is expected to provide sufficient capacity until the end of 2022. Deposition at Phase II was restarted on the basis of continued positive results of monitoring and an interim stacking plan for Phase II received from a third-party consultant with strict control on sequence and compaction level. The Company has also received the required permit for Phase III, which will be available for use after constructing retaining walls and erosion controls around the base of the facility.  

The Company cannot provide assurance that it will be successful in preventing further movement of the tailings and the risk of suspension of operations. Any movement of the material underlying the TSF could result in significant environmental damage, potential loss of life and property and consequential liability to the Company. There is no assurance that Phase II will be available for stacking of tailings through to the end of 2022, or that Phase III will be available when Phase II is no longer available.

Coricancha

On June 29, 2020, the Company announced it had reached an agreement with Nyrstar International B.V. and Nyrstar Netherlands (Holdings) B.V. (together, "Nyrstar") and NN2 Newco Limited, the parent of the Nyrstar entities, to amend certain agreements (the "Amending Agreements") in respect of the Company's remediation obligations in connection with Great Panther's 2017 acquisition of Coricancha from Nyrstar. The Amending Agreements include amendments to the Share Purchase Agreement under which the Company purchased Coricancha from Nyrstar and the related agreement for Coricancha under which Nyrstar agreed to fund a portion of the bond to secure remediation costs for Coricancha in the future in respect of a permanent closure of the mine.

Under the Amending Agreements, Nyrstar has agreed to extend its requirement to post-remediation bond obligations as security for closure costs at Coricancha beyond the original June 30, 2020 expiry date. The Amending Agreements provide that Nyrstar will maintain a $7.0 million bond until June 30, 2021 and $6.5 million for the following year, effectively deferring Great Panther's funding requirements for these amounts until June 30, 2022 unless Great Panther makes a decision to permanently close Coricancha. Great Panther has provided 80% collateral in the form of a deposit to cover the additional $2.7 million bond requirement as of June 30, 2020. In June 2017, the bond closure amount required by the Ministerio de Energía y Minas de Perú (the “MEM”) was increased by $1.2 million, which Great Panther funded. The total bond amount required by the MEM was $10.9 million as of June 30, 2020 and remains unchanged as of the date of this MD&A.

The Amending Agreements provide that Great Panther will use commercially reasonable efforts to seek an amendment to a closure plan for certain legacy tailings facilities that Nyrstar is obligated to fund. The objective of the amendment is to seek a technically superior closure plan for approval by the MEM with potentially lower costs. The Amending Agreements also provide that Great Panther will defer movement certain legacy tailings until the earlier of June 30, 2022 or notice of closure of Coricancha (described below), subject to applicable law, direction of governmental authorities and provided such deferral will not result in any fines, penalties or other sanctions on Great Panther. Refer to the section titled Advanced Projects, Coricancha for recent developments on this matter.

In addition, Great Panther has agreed to pay interest on the bond amounts Nyrstar has agreed to continue to fund at an annual rate of 3-month USD LIBOR plus 5%, and to defer any relocation of the legacy tailings until an agreement on a modified closure plan is achieved or there is a legal requirement to move the tailings. The Amending Agreements also provide Nyrstar with certain offer rights for Coricancha concentrates, which are secondary to those of a third party. The Amending Agreements do not impact the maximum reclamation obligation that Nyrstar is obligated to fund under the Share Purchase Agreement. In addition, the Amending Agreements have deferred the date by which the Company is permitted to make a decision as to whether to permanently close the Coricancha mine under its Mine Closure Agreement with Nyrstar from June 30, 2020, to June 30, 2022, with the corresponding agreement that the Company will not make such a decision prior to June 30, 2021. If a decision to permanently close the mine is made, Nyrstar will fund closure costs up to the revised amount of its bond funding obligation, and Coricancha will be required to post the full amount of the required amount of the remediation bond with Peruvian government authorities. If no decision is made to permanently close Coricancha by June 30, 2022, then Coricancha will likewise be required to post the full amount of the required reclamation bond.

GREAT PANTHER MINING LIMITED	Page 6
Management’s Discussion & Analysis

Coricancha is on care and maintenance while Great Panther evaluates conditions for a restart of the mine. The evaluation has included a Preliminary Economic Assessment (“PEA”) completed in 2018 and a Bulk Sample Program (“BSP”) completed in June 2019. In the fourth quarter of 2019, the Company initiated a limited mining and processing campaign of approximately 25,000 tonnes. These activities were temporarily suspended following the Peruvian government-mandated restrictions associated with the National State of Emergency announced on March 16, 2020, in response to the COVID-19 virus, which was lifted on May 24, 2020. Subsequently, the Company resumed the processing campaign and continued with its evaluation activities.

If the conditions for restart are not satisfied, the Company may examine options for closure. The Company may initiate a restart of Coricancha without first establishing reserves due to (i) the existing processing plant facility, (ii) the low initial capital costs to re-establish underground workings, and (iii) the Company’s knowledge of the mine and resource base. If a restart of operations does occur and its production decision is not based on any feasibility studies of Mineral Reserves demonstrating economic and technical viability, there may be increased uncertainty and risks with respect to revenues, cash flows and profitability of such operations, the potential to achieve any particular level of recovery, the costs of such recovery, the rates and costs of production and the life of mine plan, developed and studied as part of the BSP.

The PEA and BSP are preliminary in nature and include Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the results and conclusions of the PEA and BSP will be realized. Mineral Resources that are not Mineral Reserves have no demonstrated economic viability.

Gold Doré Prepayment Facility

On February 4, 2020, the Company completed an $11.25 million gold doré prepayment agreement (the "Agreement") with Samsung C&T U.K. Ltd. ("Samsung"), a wholly owned subsidiary of Samsung C&T Corporation, headquartered in Seoul, South Korea and a part of the Samsung Group.

In consideration of delivery and sale of approximately 3,000 ounces of gold contained in doré per month over a 2-year period commencing January 2020 from Tucano, Samsung has advanced an $11.25 million prepayment (the "Advance") to Great Panther. Gold deliveries are sold at a 0.65% discount to the benchmark price of gold at the time of delivery. The Advance will be repaid in equal instalments of $0.8 million per month commencing December 2020 until January 2022, such that all amounts outstanding to Samsung will be repaid in full. The Advance bears interest at an annual rate of 3-month USD LIBOR plus 5% and is secured by a pledge of all equity interests in Great Panther's Brazilian subsidiary that owns Tucano. Great Panther has a full option for early repayment of the Advance, subject to a 3% penalty applied to the outstanding balance. The Agreement also provides Samsung with a right of offer for concentrates produced from Coricancha in certain circumstances. Samsung has the option to offset proceeds from gold doré purchases with amounts owing under the Advance in certain limited circumstances.

Bought Deal Offering

On May 20, 2020, Great Panther completed an equity bought deal offering (the “Offering”) of 40,250,000 common shares at $0.40 per share for aggregate gross proceeds of $16.1 million. The Company paid a cash commission to the underwriters equal to 6% of the gross proceeds. The intended use of net proceeds from the Offering is for (i) near-mine and regional exploration programs at Tucano and (ii) improvement of the Company's working capital balances, and (iii) general corporate purposes. The Company used $1.5 million of the net proceeds of the Offering to repay existing unsecured debt under the Company’s amended credit agreement with MACA Limited (“MACA”), a former contractor at Tucano and approximately $3.1 million was used for near-mine and regional exploration expenditures. The Offering was made by way of a prospectus supplement dated May 14, 2020, to the Company's existing Canadian short form base shelf prospectus and a corresponding registration statement on Form F-10, as amended (File No. 333-231830) with the SEC, each dated July 2, 2019.

GREAT PANTHER MINING LIMITED	Page 7
Management’s Discussion & Analysis

Fatal Accident

Great Panther experienced a fatal accident at the GMC during the second quarter of 2020 as a result of a vehicle accident during care and maintenance activities. Great Panther personnel immediately followed mine rescue protocols, and authorities arrived at the mine to review the site of the accident. A full internal investigation was completed. The Company considers the health and safety of its workers and others in the communities in which it operates to be a top priority. The Company provides safety training and continuously updates safety procedures and practices.

Inaugural Sustainability Report

On September 14, 2020, Great Panther announced the publication of its first Sustainability Report highlighting the initiatives, progress and commitments in the areas of health, safety, environmental, social and governance management. The 2019 Sustainability Report is available on the Company’s website, under the heading Sustainability.

Great Panther’s 2019 Sustainability Report was prepared in accordance with the ‘Core’ Global Reporting Initiative (“GRI”) Standards and the GRI Mining & Metals Sector Disclosures. The report is Great Panther’s annual commitment to transparent disclosure on non-financial performance across material topics identified by the Company’s internal and external stakeholders.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

Summary of Financial Results

(in thousands, except per oz, per share and exchange rate figures)		Q4 2020		Q4 2019			Change	% Change			2020		2019	1		Change	% Change
Revenue	$	68,708	$	65,679		$	3,029	5	%	$	260,805	$	198,653		$	62,152	31	%
Mine operating earnings before non-cash items2	$	32,433	$	8,447		$	23,986	284	%	$	124,508	$	41,874		$	82,634	197	%
Mine operating earnings	$	22,144	$	(5,046	)	$	27,190	n/a		$	83,867	$	6,845		$	77,022	1125	%
Net income (loss)	$	13,611	$	(28,068	)	$	41,679	n/a		$	334	$	(91,022	)	$	91,356	n/a
Adjusted net income (loss)2	$	6,102	$	(32,403	)	$	38,505	n/a		$	22,524	$	(47,260	)	$	69,784	n/a
Adjusted EBITDA2	$	26,513	$	(5,338	)	$	31,851	n/a		$	98,019	$	7,919		$	90,100	1138	%
Free cash-flow2	$	9,057	$	2,405		$	6,652	277	%	$	26,941	$	(12,123	)	$	39,064	n/a
Cash flow from operating activities	$	17,972	$	7,785		$	10,187	131	%	$	68,889	$	13,787		$	55,102	400	%
Cash and short-term deposits at end of period	$	63,396	$	36,970		$	26,426	71	%	$	63,396	$	36,970		$	26,426	71	%
Net working capital at end of period	$	31,396	$	12,815		$	18,581	145	%	$	31,396	$	12,815		$	18,581	145	%
Earnings (loss) per share – basic	$	0.04	$	(0.09	)	$	0.13	-144	%	$	0.00	$	(0.33	)	$	0.33	-100	%
Earnings (loss) per share – diluted	$	0.04	$	(0.09	)	$	0.13	-144	%	$	0.00	$	(0.33	)	$	0.33	-100	%
Average realized gold price per oz3	$	1,884	$	1,485		$	399	27	%	$	1,785	$	1,419		$	366	26	%
Average realized silver price per oz3	$	25.06	$	17.71		$	7.35	42	%	$	21.28	$	16.45		$	4.83	29	%
Brazilian real (BRL)/USD	$	5.40	$	4.12		$	1.28	31	%	$	5.16	$	3.94		$	1.22	31	%
Mexican peso (MXN)/USD	$	20.59	$	19.27		$	1.32	7	%	$	21.41	$	19.26		$	2.15	11	%

¹ The comparative data presented for the year ended December 31, 2019 is for the period from March 5, 2019 to December 31, 2019, the period for which the Company owned Tucano following the acquisition of Beadell.

² The Company has included the non-GAAP performance measures mine operating earnings before non-cash items, adjusted net income (loss), adjusted EBITDA, and free cash-flow throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

³ Average realized gold and silver prices are prior to smelting and refining charges.

GREAT PANTHER MINING LIMITED	Page 8
Management’s Discussion & Analysis

MINING OPERATIONS

Consolidated operations

		Q4 2020		Q4 2019		Change		% Change			2020		20191			Change		% Change
Total material mined – Tucano (tonnes)		6,605,369		5,857,185		748,184		13	%		25,483,176		19,343,355	1		6,139,821		32	%
Ore mined – Tucano (tonnes)		749,510		715,346		34,164		5	%		1,858,037		1,876,031	1		(17,994	)	-1	%
Ore mined – Mexico (tonnes)		50,868		64,843		(13,975	)	-22	%		207,864		262,877			(55,013	)	-21	%
Tonnes milled – Tucano		901,854		860,634		41,220		5	%		3,359,041		2,520,981	1		838,060		33	%
Tonnes milled – Mexico (excluding custom milling)		49,498		67,564		(18,066	)	-27	%		208,392		266,867			(58,475	)	-22	%
Tonnes milled – consolidated operations (excluding custom milling)		951,352		928,198		23,154		2	%		3,567,433		2,787,848	1		779,585		28	%
Consolidated production
Gold (ounces)		33,703		37,089		(3,386	)	-9	%		133,031		118,494	1		14,537		12	%
Silver (ounces)		225,477		423,231		(197,754	)	-47	%		1,118,098		1,529,362			(411,264	)	-27	%
Lead (tonnes)		212		487		(275	)	-56	%		1,233		1,960			(727	)	-37	%
Zinc (tonnes)		294		650		(356	)	-55	%		1,714		2,576			(862	)	-33	%
Gold equivalent ounces (“Au eq oz”) produced2		36,997		44,697		(7,700	)	-17	%		150,051		146,853	1		3,198		2	%
Consolidated sales
Gold ounces sold		33,374		38,992		(5,618	)	-14	%		132,436		120,056	1		12,380		10	%
Au eq oz sold2		36,549		45,625		(9,076	)	-20	%		148,579		145,746	1		2,833		2	%
Cost metrics
Cash cost per gold ounce sold3	$	905	$	1,268	$	(363	)	-29	%	$	833	$	1,071		$	(238	)	-22	%
All-in sustaining costs (“AISC”) per gold ounce sold, excluding corporate G&A expenditures3	$	1,248	$	1,615	$	(367	)	-23	%	$	1,228	$	1,383		$	(155	)	-11	%
AISC per gold ounce sold3	$	1,318	$	1,703	$	(385	)	-23	%	$	1,328	$	1,484		$	(156	)	-11	%

¹ The comparative data presented for the year ended December 31, 2019 is for the period from March 5, 2019 to December 31, 2019, the period for which the Company owned Tucano following the Acquisition.

² Gold equivalent ounces are referred to throughout this document. For 2020, Au eq oz were calculated using a 1:90 Au:Ag ratio, and ratios of 1:0.0006412 and 1:0.0007554 for the price/ounce of gold to price/pound of lead and zinc, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations. The ratios are reflective of average metal prices for 2020. Comparatively, Au eq oz for 2019 were calculated using a 1:80 Au:Ag ratio, and ratios of 1:0.000795 and 1:0.00102258 for the price/ounce of gold to price/pound of lead and zinc, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations. The ratios are reflective of average metal prices for 2019.

³ The Company has included the non-GAAP performance measures cash cost per gold ounce sold, AISC per gold ounce sold excluding corporate G&A expenditures, AISC per gold ounce sold, cash cost per payable silver ounce, and AISC per payable silver ounce throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

GREAT PANTHER MINING LIMITED	Page 9
Management’s Discussion & Analysis

Tucano

		Q4 2020			Q4 2019			Change		% Change			2020			20191			Change		% Change
Mining and processing
Ore mined (tonnes)		749,510			715,346			34,164		5	%		1,858,037			1,876,031	1		(17,994	)	-1	%
Ore mined grade (g/t)		1.31			1.36			(0.05	)	-4	%		1.66			1.54			0.12		8	%
Total waste mined (tonnes)		5,803,286			5,139,284			664,002		13	%		23,562,964			17,438,667			6124,297		35	%
Total material mined (tonnes)		6,605,369			5,857,185			784,184		13	%		25,483,176			19,343,355			6,139,821		32	%
Strip ratio		7.7			7.2			0.5		7	%		12.7			9.3			3.4		37	%
Tonnes milled		901,854			860,634			41,220		5	%		3,359,041			2,520,981			838,060		33	%
Plant head grade (g/t)		1.23			1.33			(0.10	)	-8	%		1.28			1.41			(0.13	)	-9	%
Plant gold recovery (%)		89.5	%		92.8	%		-3.3	%	-4	%		90.8	%		92.4	%		-1.6	%	-2	%
Production
Gold ounces		32,017			34,181			(2,164	)	-6	%		125,417			105,561	1		19,856		19	%
Sales
Gold ounces		31,802			36,213			(4,411	)	-12	%		125,176			108,021	1		17,155		16	%
Cost metrics
Cash cost per gold ounce sold2	$	879		$	1,340		$	(461	)	-34	%	$	849		$	1,118		$	(269	)	-24	%
AISC per gold ounce sold2	$	1,171		$	1,681		$	(510	)	-30	%	$	1,200		$	1,406		$	(206	)	-15	%

Metal Production

Tucano gold production for the year ended December 31, 2020, increased by 19% as the comparative data presented for the year ended December 31, 2019, is for the period from March 5, 2019, to December 31, 2019, the period for which the Company owned Tucano following the Acquisition.

Tucano gold production in the fourth quarter of 2020 decreased by 6% primarily because of lower gold grade and recovery as a result of the processing of lower grade stockpiles to supplement for lower ore mining rates due to mining at the base of the Urucum Central North pit, which is more limited in terms of mining capacity. These factors were partly offset by higher throughput.

Cash cost per gold ounce sold

Cash cost per gold ounce sold for the year ended December 31, 2020, decreased by $269 mainly due to the weakening of the BRL against the USD, which had the effect of reducing production costs in USD terms by $263 per gold ounce sold, lower BRL production costs ($2 per gold ounce sold), higher by-product credits primarily as a result of higher silver ounces produced ($3 per gold ounce sold) and lower smelting and refining charges ($1 per gold ounce sold).

Cash cost per gold ounce sold in the fourth quarter of 2020 decreased by $461 mainly due to lower BRL production costs ($140 per gold ounce sold), higher by-product credits primarily as a result of higher silver prices and ounces produced ($2 per gold ounce sold), lower smelting and refining charges ($1 per gold ounce sold), and the weakening of the BRL against the USD, which had the effect of reducing production costs in USD terms by $318 per gold ounce sold.

¹ The comparative data presented for the year ended December 31, 2019 is for the period from March 5, 2019 to December 31, 2019, the period for which the Company owned Tucano following the Acquisition.

² The Company has included the non-GAAP performance measures cash cost per gold ounce sold, AISC per gold ounce sold excluding corporate G&A expenditures, AISC per gold ounce sold, cash cost per payable silver ounce, and AISC per payable silver ounce throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

GREAT PANTHER MINING LIMITED	Page 10
Management’s Discussion & Analysis

AISC per gold ounce sold

AISC per gold ounce sold for the year ended December 31, 2020, decreased by $206 per gold ounce sold primarily due to the $269 decrease in cash cost as described above, and lower mine-level general and administrative (“G&A”) expenses as the comparative period included an accrual of $5.6 million for Brazil legal claims ($27 per gold ounce sold). These were partly offset by higher stripping costs ($78 per gold ounce sold), higher capital expenditures ($7 per gold ounce sold) and, increases in other costs ($5 per gold ounce sold).

AISC per gold ounce sold in the fourth quarter of 2020 decreased by $510 per gold ounce sold primarily due to the $461 decrease in cash cost as described above, lower mine-level G&A expenses as explained above ($89 per gold ounce sold), lower capital expenditures ($15 per gold ounce sold), and lower lease liability payments ($7 per gold ounce sold). These were partly offset by higher stripping and exploration costs ($58 per gold ounce sold), and increases in other costs ($4 per gold ounce sold).

Tucano Urucum Central South Pit

Mining of free diggable material commenced in July and was suspended in September while an independent consultant completed its analyses. Mining of Urucum Central South (“UCS”) restarted at 161 metres above sea level (“MASL”) in late October based on the results of geotechnical drilling and analyses performed to that point and the independent consultant provided recommendations regarding slope angles and mining from 161 MASL to 111 MASL. Draining the pit and monitoring of water levels in piezometer holes is being carried out as mining progresses. Any mining below 111 MASL will be evaluated on the basis of whether further drainage is required for horizontal drain holes in order to continue mining safely. These measures have been undertaken in response to an incident of slope instability as reported in the Company’s news releases on October 7, 2019, and October 15, 2019.

Exploration

Metres	Q4 2020		Q4 2019		FY 2020		FY 2019
Total metres of exploration drilling		9,637		8,224		32,471		18,037

Drilling was focused on testing the shallow, down plunge extension of mineralization to the north of the Urucum North pit with two diamond drills. An additional two drills carried out infill resource drilling and along strike evaluation of the Urucum East mineralized zone. The drilling intersected various mineralization intervals confirming and extending the Urucum East deposit but failed to detect a sub-parallel ore zone to the west. Positive drill results were received from Urucum North and these are to be modelled to determine if further drilling is warranted and to evaluate the potential impact on the current resource pit shell. The program comprised 5,574 metres of drilling.

Regional exploration drilling focused on rotary air blast (“RAB”) (3,000 metres) and diamond drilling (788 metres) at Saraminda and Mutum with auger (275 metres), soil and stream sediment programs at Janaina and Bigorna to ensure compliance with government requirements. The RAB drilling program initiated at Saraminda has the objective of defining a small surficial resource associated with two areas of historical garimpeiro activity. In parallel, multi-element soil geochemistry was interpreted indicating a 1,200 metres anomalous corridor linking the two former garimpeiro areas and suggesting a ballooning of the gold soil geochemistry anomaly over intersecting regional structures in the middle of the zone. RAB drilling is ongoing.

At Mutum, auger and RAB drilling results from the previously reported programs, delineated a 300 metre by 100 metre geochemistry anomaly at 2 metres to 16 metres below surface cover. In December, a diamond drill was mobilized to drill five scout holes in 788 metres to test the target and geology.

GREAT PANTHER MINING LIMITED	Page 11
Management’s Discussion & Analysis

The 2021 Tucano exploration program is budgeted for $8.4 million with the objective of defining new targets through regional soil sampling, fast-tracking prioritized targets within a 20-kilometer radius of the mine, replacing mined resources, and confirmation and extension drilling of the high-grade underground resource. The program includes a 24,000 metre near-mine resource definition program with drilling focused on TAP C, between TAP AB and Urucum and diamond drilling on shallower (200-400 metre deep) zones of higher-grade ore beneath Urucum, where 8,000 metres is planned. In addition, over 500 kilometres of planned regional multi-element soil geochemistry is to be carried out over the highly prospective exploration corridors defined in the third quarter of 2020, together with teams to fast-track prioritized regional targets that could provide ore to the Tucano plant.

GREAT PANTHER MINING LIMITED	Page 12
Management’s Discussion & Analysis

Guanajuato Mine Complex

Although Great Panther’s primary metal produced by value is gold as a result of the Acquisition, the Company continues to use and report cost metrics per payable silver ounce to manage and evaluate operating performance at the GMC, as silver continues to represent a significant portion of its production.

	Q4 2020			Q4 2019			Change			% Change			2020			2019			Change			% Change
Tonnes mined		40,909			47,460			(6,551	)		-14	%		150,804			185,587			(34,783	)		-19	%
Tonnes milled		39,539			48,710			(9,171	)		-19	%		151,001			187,610			(36,609	)		-20	%
Production
Silver (ounces)		128,214			180,454			(52,240	)		-29	%		520,905			590,781			(69,876	)		-12	%
Gold (ounces)		1,559			2,640			(1,081	)		-41	%		6,779			11,588			(4,809	)		-41	%
Silver equivalent ounces (“Ag eq oz”)1		268,524			391,637			(123,113	)		-31	%		1,131,028			1,517,853			(386,825	)		-25	%
Average ore grades
Silver (g/t)		117			136			(19	)		-14	%		125			116			9			8	%
Gold (g/t)		1.46			2.00			(0.54	)		-27	%		1.66			2.26			(0.60	)		-27	%
Metal recoveries
Silver		85.9	%		84.4	%		1.5	%		2	%		85.5	%		84.7	%		0.8	%		1	%
Gold		84.3	%		84.1	%		0.2	%		0	%		84.0	%		85.2	%		-1.2	%		-1	%
Sales
Payable silver ounces		117,430			169,162			(51,732	)		-31	%		501,622			556,582			(54,960	)		-10	%
Gold ounces sold		1,472			2,544			(1,072	)		-42	%		6,628			11,052			(4,424	)		-40	%
Ag eq oz sold1		249,932			372,681			(122,749	)		-33	%		1,098,156			1,440,705			(342,549	)		-24	%
Cost metrics
Cash cost per payable silver ounce2	$	22.36		$	6.75		$	15.61			231	%	$	10.67		$	6.74		$	3.93			58	%
AISC per payable silver ounce2	$	33.88		$	10.72		$	23.16			216	%	$	21.88		$	13.21		$	8.67			66	%

Metal Production

Metal production for the year ended December 31, 2020 decreased by 25% mainly due to lower throughput following the temporary suspension of mining operations in Mexico for the months of April and May 2020 as a result of the COVID-19 pandemic, and lower gold grades and recoveries. These were partly offset by higher silver grades and recoveries.

Metal production in the fourth quarter of 2020 decreased by 31% mainly due to lower silver and gold grades, and lower throughput as productivity was affected by health and safety protocols implemented to safeguard against the spread of COVID-19. These were partly offset by higher silver recoveries.

Cash cost per payable silver ounce

Cash cost per payable silver ounce for the year ended December 31, 2020 increased by $3.93 per payable silver ounce primarily due to lower by-product credits ($4.24 per oz) as a result of lower gold ore grades and gold production, higher smelting and refining charges ($0.86 per oz), and higher MXN production costs ($2.11 per oz). These factors were partially offset by the weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $3.27 per oz.

¹ Silver equivalent ounces are referred to throughout this document. For 2020, Ag eq oz are calculated using a 90:1 Ag:Au ratio and ratios of 1:0.0577 and 1:0.0680 for the price/ounce of silver to lead and zinc price/pound, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations. The ratios are reflective of average metal prices for 2020. Comparatively, Ag eq oz for 2019 are calculated using a 80:1 Ag:Au ratio and ratios of 1:0.0636 and 1:0.0818 for the price/ounce of silver to lead and zinc price/pound, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations. The ratios are reflective of average metal prices for 2019.

² The Company has included the non-GAAP performance measures cash cost per gold ounce sold, AISC per gold ounce sold excluding corporate G&A expenditures, AISC per gold ounce sold, cash cost per payable silver ounce, and AISC per payable silver ounce throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

GREAT PANTHER MINING LIMITED	Page 13
Management’s Discussion & Analysis

Cash cost per payable silver ounce in the fourth quarter of 2020 increased by $15.61 per payable silver ounce primarily due to lower by-product credits ($1.19 per oz), higher MXN production costs and lower ounces sold ($17.36 per oz), and higher smelting and refining charges ($1.19 per oz). These factors were partially offset by the weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $1.74 per oz.

AISC per payable silver ounce

AISC per silver payable ounce of $21.88 for 2020 exceeded guidance of $13.00 - $14.00 provided earlier in the year due primarily to production shortfalls noted above, in addition to the care and maintenance costs incurred during the COVID-19 related suspension of operations.

AISC per payable silver ounce for the year ended December 31, 2020 increased by $8.67 per payable silver ounce primarily due to the increase in cash cost ($3.93 per oz) as described above, higher sustaining exploration, evaluation and development (“EE&D”) expenses ($2.25 per oz), higher sustaining capital expenditures ($0.34 per oz), higher Guanajuato care and maintenance costs ($1.05 per oz), and lower number of payable silver ounces, which increased AISC on a per payable silver ounce basis ($1.10 per oz).

AISC per payable silver ounce in the fourth quarter of 2020 increased by $23.16 per payable silver ounce primarily due to the increase in cash cost ($15.61 per oz) as described above, higher sustaining EE&D expenses ($5.16 per oz), and lower number of payable silver ounces ($3.64 per oz). These factors were partially offset by lower Guanajuato care and maintenance costs ($1.16 per oz), and lower sustaining capital expenditures ($0.23 per oz).

Exploration

Metres of exploration drilling	Q4 2020		Q4 2019		FY 2020		FY 2019
Guanajuato		5,308		3,306		12,155		8,832
San Ignacio		3,763		1,040		7,255		7,535
Total metres of exploration drilling		9,071		4,346		19,410		16,367

For the quarter ended December 31, 2020 and the year ended December 31, 2020, the number of metres of exploration drilling increased compared with the same periods in 2019. For the quarter ended December 31, 2020, San Ignacio has exceeded the planned meters of drilling.

The increases in drilling metres were in line with the Company’s plans to increase exploration at the GMC with the objective of increasing Mineral Resources. As previously noted, the Company announced the results of an updated Mineral Resource Estimate (“MRE”) for the GMC on November 23, 2020, with an increase in Measured and Indicated, and Inferred Resources. Further details can be found in the Company’s press release and NI 43-101 Technical Report filed in respect of the MRE. Development and drilling costs for the GMC are expensed.

Permitting

As previously disclosed, while the GMC waits for the Comisión Nacional del Agua (“CONAGUA”) permits, the Company has completed its review to identify technical alternatives to extend its tailings storage capacity under existing permits and has begun modifying the tailings discharge using cyclones to extend the tailings capacity until June 30, 2021. This allows more time for receipt of the pending expansion approval; however, if the expansion approval of the TSF has not been received prior to June 30, 2021 or is conditioned, the Company may need to cease milling operations at the GMC until receipt of the expansion approval or satisfaction of such conditions.

GREAT PANTHER MINING LIMITED	Page 14
Management’s Discussion & Analysis

Topia

Although Great Panther’s primary metal produced by value is gold as a result of the Acquisition, the Company continues to use and report cost metrics per payable silver ounce to manage and evaluate operating performance at Topia, as silver continues to represent its primary metal produced by value.

	Q4 2020			Q4 2019			Change			% Change			2020			2019			Change			% Change
Tonnes mined		9,959			17,383			(7,424	)		-43	%		57,060			77,290			(20,230	)		-26	%
Tonnes milled		9,959			18,854			(8,895	)		-47	%		57,391			79,257			(21,866	)		-28	%
Custom milling		–			472			(472	)		-100	%		–			1,429			(1,429	)		-100	%
Total tonnes milled		9,959			19,326			(9,367	)		-48	%		57,391			80,686			(23,295	)		-29	%
Production
Silver (ounces)		97,263			242,776			(145,513	)		-60	%		597,194			938,581			(341,387	)		-36	%
Gold (ounces)		127			267			(140	)		-52	%		835			1,344			(509	)		-38	%
Lead (tonnes)		212			487			(275	)		-56	%		1,233			1,960			(727	)		-37	%
Zinc (tonnes)		294			650			(356	)		-55	%		1,714			2,576			(862	)		-33	%
Silver equivalent ounces1		179,657			449,621			(269,964	)		-60	%		1,085,985			1,785,483			(699,498	)		-39	%
Average ore grades
Silver (g/t)		337			424			(87	)		-21	%		352			392			(40	)		-10	%
Gold (g/t)		0.81			0.81			–			0	%		0.84			0.94			(0.10	)		-11	%
Lead (%)		2.31			2.74			(0.43	)		-16	%		2.31			2.65			(0.34	)		-13	%
Zinc (%)		3.42			3.64			(0.22	)		-6	%		3.25			3.44			(0.19	)		-6	%
Metal recoveries
Silver		90.0	%		94.4	%		-4.4	%		-5	%		92.0	%		93.9	%		-1.9	%		-2	%
Gold		48.7	%		54.2	%		-5.5	%		-10	%		54.1	%		55.9	%		-1.8	%		-3	%
Lead		92.2	%		94.3	%		-2.1	%		-2	%		93.0	%		93.2	%		-0.2	%		0	%
Zinc		86.2	%		94.7	%		-8.5	%		-9	%		92.0	%		94.3	%		-2.3	%		-2	%
Sales
Payable silver ounces		98,593			212,882			(114,289	)		-54	%		571,087			857,440			(286,353	)		-33	%
Gold ounces sold		100			235			(135	)		-57	%		632			983			(351	)		-36	%
Ag eq oz sold1		171,424			375,001			(203,577	)		-54	%		984,289			1,539,768			(555,479	)		-36	%
Cost metrics
Cash cost per payable silver ounce1	$	21.07		$	11.31		$	9.76			86	%	$	14.77		$	12.09		$	2.68			22	%
AISC per payable silver ounce2	$	29.28		$	13.71		$	15.57			114	%	$	19.75		$	15.35		$	4.40			29	%

Metal Production

Topia’s metal production for the year ended December 31, 2020 decreased by 39% in large part due to lower throughput following the temporary suspension of mining operations in Mexico for the months of April and May 2020 as a result of a federal mandate to restrict non-essential businesses because of the COVID-19 pandemic. In addition, the Company voluntarily suspended operations for five weeks in the fourth quarter of 2020 to mitigate the spread of COVID-19 at its operations and in the local community. The decrease in production is also a result of lower grades for all metals and lower silver, gold and zinc recoveries.

¹ Silver equivalent ounces are referred to throughout this document. For 2020, Ag eq oz are calculated using a 90:1 Ag:Au ratio and ratios of 1:0.0577 and 1:0.0680 for the price/ounce of silver to lead and zinc price/pound, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations. The ratios are reflective of average metal prices for 2020. Comparatively, Ag eq oz for 2019 are calculated using a 80:1 Ag:Au ratio and ratios of 1:0.0636 and 1:0.0818 for the price/ounce of silver to lead and zinc price/pound, respectively, and applied to the relevant metal content of the concentrates produced, expected to be produced, or sold from operations. The ratios are reflective of average metal prices for 2019.

¹ The Company has included the non-GAAP performance measures cash cost per gold ounce sold, AISC per gold ounce sold excluding corporate G&A expenditures, AISC per gold ounce sold, cash cost per payable silver ounce, and AISC per payable silver ounce throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

GREAT PANTHER MINING LIMITED	Page 15
Management’s Discussion & Analysis

Metal production in the fourth quarter of 2020 decreased by 60% primarily due to suspension of operations noted above, as well as lower recoveries for all metals and lower silver, lead and zinc grades.

Cash cost per payable silver ounce

Cash cost per payable silver ounce for the year ended December 31, 2020 increased by $2.68 per payable silver ounce and is generally attributed to the lower production levels as a result of the COVID-19 related suspensions of operations, which reduced production levels while fixed operations costs and other costs were maintained. In particular, this resulted in lower payable silver ounces ($6.06 per oz impact) and lower by-product revenue ($6.13 per oz). In addition, cash cost was impacted by higher smelting and refining charges ($0.34 per oz) and lower ore processing revenue ($0.12 per oz). These factors were partially offset by lower MXN denominated production costs ($5.36 per oz), and the weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $4.61 per oz.

Cash cost per payable silver ounce in the fourth quarter of 2020 increased by $9.76 per payable silver ounce primarily due to lower payable silver ounces ($13.11 per oz), lower by-product revenue ($8.73 per oz), and lower ore processing revenue ($0.36 per oz). These factors were partially offset by the weakening of the MXN to the USD, which had the effect of decreasing production costs in USD terms by $2.65 per oz, lower MXN denominated production costs ($8.92 per oz), and lower smelting and refining charges ($0.87 per oz).

AISC per payable silver ounce

AISC per payable silver ounce for the year ended December 31, 2020 increased by $4.40 per payable silver ounce primarily due to the increase in cash cost ($2.68 per oz) as described above, lower number of payable silver ounces, which increased AISC on a per payable silver ounce basis ($1.64 per oz), and care and maintenance costs ($1.45 per oz). These factors were partly offset by lower sustaining EE&D expenses ($0.93 per oz) and lower sustaining capital expenditures ($0.44 per oz).

AISC per payable silver ounce in the fourth quarter of 2020 increased by $15.57 per payable silver ounce primarily due to the increase in cash cost ($9.76 per oz) as described above, lower number of payable silver ounces, which increased AISC on a per payable silver ounce basis ($2.78 per oz), care and maintenance costs ($2.52 per oz), and higher sustaining capital expenditures ($1.78 per oz). These factors were partly offset by lower sustaining EE&D expenses ($1.27 per oz).

Exploration

Metres of exploration drilling	Q4 2020		Q4 2019		FY 2020		FY 2019
Total metres of exploration drilling		146		1,146		941		5,344

The decrease in metres of exploration drilling in 2020 compared with the same period in 2019 and the original drill program was mainly due to delays in obtaining a permit from the Mexican environmental permitting authority, Secretaría del Medio Ambiente y Recursos Naturales (“SEMARNAT”), as a result of COVID-19 government-related shutdowns. As such, only one small drill rig was used at Topia. Drilling will be accelerated starting in February 2021 to make up for the lower metres drilled during 2020.

Permitting

The Company has received the permit for the Phase III TSF, which will be available after constructing retaining walls and erosion controls around the base of the facility.  For additional information on the Topia TSFs, see Significant Events section of this MD&A.

GREAT PANTHER MINING LIMITED	Page 16
Management’s Discussion & Analysis

ADVANCED PROJECTS

Coricancha

Great Panther acquired Coricancha in June 2017. In July 2018, the Company filed a PEA that outlined the potential for three million Ag eq oz of annual production. In June 2019, the BSP was completed and confirmed the key operating assumptions for Coricancha contained in the PEA. The Company also identified the potential to increase the life of mine by developing a mine plan for the resources not incorporated into the PEA, which utilizes only approximately 28% of the overall resource. Under the BSP, a total of 5,089 tonnes of mineralized material was mined from the Constancia and Escondida veins and processed through the plant. The program produced 15,561 ounces of silver, 303 ounces of gold, 107,319 pounds of lead, and 99,889 pounds of zinc through the production of zinc and lead concentrates. In the third quarter of 2019, the Company sold the majority of the metal concentrate produced from the BSP.

The PEA and the BSP are preliminary in nature and include Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the results and conclusions of the PEA and the BSP will be realized. Mineral Resources that are not Mineral Reserves have no demonstrated economic or technical viability.

The Company may initiate a restart of Coricancha without first establishing Mineral Reserves due to (i) the existing processing plant facility, (ii) the low initial capital cost to re-establish underground workings, and (iii) the Company’s knowledge of the mine and resource base. If a restart of operations does occur and its production decision is not based on any feasibility studies of Mineral Reserves demonstrating economic and technical viability, there may be increased uncertainty and risks with respect to revenue, cash flows and profitability of such operations, the potential to achieve any particular level of recovery, the costs of such recovery, the rates and costs of production and the life of mine plan, developed and studied as part of the BSP.

In the fourth quarter of 2019, the Company undertook a limited mining and processing campaign of approximately 25,000 tonnes. The campaign was suspended in the first quarter of 2020 as a result of Peruvian government-mandated restrictions associated with COVID-19 and resumed in the second quarter of 2020. Refer to the Significant Events section of this MD&A for further information on this processing campaign and the current status of Coricancha.

The Company has undertaken the reclamation of certain legacy tailings facilities at Coricancha under a remediation plan approved by the MEM, the relevant regulatory body. In addition, as part of the purchase of Coricancha, the Company has an agreement with Nyrstar for the reimbursement of the cost of these reclamation activities. The Company is seeking approval of a modification to a remediation plan from the MEM in accordance with the recommendations of an independent consultant to preserve the stability of nearby areas. The Company has changed the scheduling of the reclamation work, pending a decision from the MEM regarding the proposal to modify the approved remediation plan. To protect itself from any pending or future fines, penalties, regulatory action or charges from government authorities and to request the MEM issue a decision of the proposed modification to the remediation plan for legacy tailings, the Company initiated a Constitutional Case and was successfully awarded an injunction to prevent fines and penalties until MEM issues its decision. Subsequent to the year ended December 31, 2020, the Company was notified of a second instance decision in the Constitutional Case which unfavourably dismissed the Company’s Constitutional Case. The decision requests that the MEM issue a technical report evaluating the proposed modifications to the remediation plan within two months of the decision. The Company has the opportunity to appeal this decision and is considering the merits of an appeal. The Company expects that the related injunction will be cancelled in the near future. While it is possible to appeal the Constitutional Case proceeding, it will not be possible to appeal the cancellation of the injunction.  The cancellation of the injunction will expose the Company to potential fines, penalties, regulatory action or charges from government authorities. Separately, the Company plans to develop alternatives to propose to MEM to allow for the full reclamation while preserving the stability of the surrounding areas.

GREAT PANTHER MINING LIMITED	Page 17
Management’s Discussion & Analysis

RESULTS OF OPERATIONS

Year ended December 31, 2020

	FY 2020												FY 2019												%
	Tucano			GMC			Topia			Total			Tucano1			GMC			Topia			Total			Change
Sales quantities
Gold (ounces)		125,176			6,628			632			132,436			108,021			11,052			983			120,056			10	%
Silver (ounces)		23,797			501,622			571,087			1,096,506			5,243			556,582			857,440			1,419,265			-23	%
Lead (tonnes)		–			–			1,185			1,185			–			–			1,802			1,802			-34	%
Zinc (tonnes)		–			–			1,371			1,371			–			–			1,946			1,946			-30	%
Au eq oz sold		125,440			12,202			10,937			148,579			108,086			18,009			19,651			145,746			2	%
Revenue (000s)
Gold revenue	$	223,272		$	11,889		$	1,137		$	236,298		$	153,504		$	15,554		$	1,354		$	170,412			39	%
Silver revenue		487			10,816			12,036			23,339			93			9,162			14,089			23,344			0	%
Lead revenue		–			–			2,146			2,146			–			–			3,581			3,581			-40	%
Zinc revenue		–			–			3,088			3,088			–			–			4,938			4,938			-37	%
Ore processing revenue		–			–			34			34			–			–			102			102			-67	%
Smelting and refining charges		(69	)		(1,486	)		(2,545	)		(4,100	)		(200	)		(1,173	)		(2,351	)		(3,724	)		10	%
Total revenue	$	223,690		$	21,219		$	15,896		$	260,805		$	153,397		$	23,543		$	21,713		$	198,653			31	%
Average realized metal prices and FX rates
Gold (per ounce)										$	1,785											$	1,419			26	%
Silver (per ounce)										$	21.28											$	16.45			29	%
Lead (per pound)										$	0.82											$	0.90			-9	%
Zinc (per pound)										$	1.02											$	1.15			-11	%
USD/CAD											1.341												1.327			1	%
USD/BRL											5.156												3.943			31	%
USD/MXN											21.409												19.259			11	%

¹ The comparative data presented for the year ended December 31, 2019 is for the period from March 5, 2019 to December 31, 2019, the period for which the Company owned Tucano following the Acquisition.

GREAT PANTHER MINING LIMITED	Page 18
Management’s Discussion & Analysis

(000s)		FY 2020			FY 20191			Change		% Change
Revenue	$	260,805		$	198,653		$	62,152		31	%
Production costs		136,297			156,779			(20,482	)	-13	%
Mine operating earnings before non-cash items2		124,508			41,874			82,634		197	%
Amortization and depletion		40,305			34,671			5,634		16	%
Share-based compensation		336			358			(22	)	-6	%
Mine operating earnings		83,867			6,845			77,022		1,125	%
Mine operating earnings before non-cash items (% of revenue)		48	%		21	%
Mine operating earnings (% of revenue)		32	%		3	%
G&A expenses		12,926			17,557			(4,631	)	-26	%
EE&D expenses		13,295			24,026			(10,731	)	-45	%
Impairment of goodwill		–			38,682			(38,682	)	-100	%
Business acquisition costs		–			2,923			(2,923	)	-100	%
Care and maintenance costs		693			795			(102	)	-13	%
Finance and other expense		52,828			13,140			39,688		302	%
Tax expense		3,791			744			3,047		410	%
Net income (loss)	$	334		$	(91,022	)	$	91,356		-100	%
Adjusted net income (loss) 2	$	22,524		$	(47,260	)	$	69,784		n/a
Adjusted EBITDA2	$	98,019		$	7,919		$	90,100		1,138	%
Free cash-flow2	$	26,941		$	(12,123	)	$	39,064		n/a

Revenue

(000s)		Gold		Silver			Other metals			Smelting and refining costs			Total
Increase (decrease) in revenue related to:
Price	$	48,218	$	5,275		$	(601	)	$	–		$	52,892
Volumes sold		17,669		(5,281	)		(2,685	)		–			9,703
Other		–		–			(67	)		(376	)		(443	)
	$	65,887	$	(6	)	$	(3,353	)	$	(376	)	$	62,152
Revenue – Year ended December 31, 2019													198,653
Revenue – Year ended December 31, 2020												$	260,805

Revenue increased by $62.2 million mainly due to higher gold production and sales at Tucano ($24.7 million) and higher realized gold and silver prices ($53.5 million). These factors were partly offset by lower sales volume from the Mexican operations ($15.0 million), lower realized prices for lead and zinc ($0.6 million), and higher smelting and refining charges ($0.4 million).

Production costs

Production costs decreased by $20.5 million primarily due to the weakening of the BRL and MXN relative to the USD, which reduced production costs in USD terms ($35.5 million), lower sales volume from the Mexican operations ($10.8 million), and lower BRL production costs at Tucano ($0.4 million). These were partially offset by higher sales volume at Tucano ($19.4 million), unabsorbed fixed costs incurred at Topia and the GMC during the April and May COVID-19 related shutdowns ($1.3 million), and higher MXN production costs at the GMC and Topia ($5.5 million).

¹ The comparative data presented for the year ended December 31, 2019 is for the period from March 5, 2019 to December 31, 2019, the period for which the Company owned Tucano following the Acquisition.

² The Company has included non-GAAP performance measures such as mine operating earnings before non-cash items, adjusted net income (loss), adjusted EBITDA, and free cash-flow throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

GREAT PANTHER MINING LIMITED	Page 19
Management’s Discussion & Analysis

Amortization and depletion

Amortization and depletion increased by $5.6 million primarily due to higher sales of gold, partly offset by the reduction in depreciation as a result of the increase in the estimated useful life of Tucano based on the 2020 MRMR update announced in the fourth quarter.

Mine operating earnings

Mine operating earnings before non-cash items were $124.5 million compared with $41.9 million. The components of mine operating earnings before non-cash items being revenue and production costs are analyzed above.

Mine operating earnings, including non-cash items, were $83.9 million compared with $6.8 million.

General and administrative expenses

G&A expenses decreased by $4.6 million, or 26%, as the comparative period included a $5.6 million accrual for Brazil legal claims and a $0.6 million non-recurring severance charge as a result of management changes. G&A expenses also decreased as a result of a $1.7 million decrease in G&A expenses related to the Australian head office of the former parent company of Tucano for which the primary severance and other post-acquisition contractual costs came to an end in the second quarter of 2020 following the closure of the office in the second quarter of 2019. These were partly offset by a $2.1 million increase in insurance premiums, a $0.7 million increase in share-based compensation included in G&A, a $0.3 million increase in audit and taxation fees, and a $0.2 million increase in filing fees.

Exploration, evaluation and development expenses

EE&D expenses decreased by $10.7 million, or 45%, mainly due to a $9.7 million decrease in Mexico reclamation and remediation provision estimate recorded in EE&D, a $2.6 million decrease in Coricancha expenditures, and a $0.5 million decrease in Topia exploration. These decreases were partly offset by a $0.6 million increase in San Ignacio development expenses, a $0.8 million increase in Guanajuato development expenses, a $0.5 million estimated reclamation and remediation provision for Argosy property, and a $0.2 million increase in Guanajuato exploration drilling.

Impairment of goodwill

In the first quarter of 2019, the Company recorded an impairment of goodwill of $38.7 million related to Tucano. For accounting purposes, the Company re-evaluated its initial assessment of the purchase price allocation of Tucano following receipt of the 2019 MRMR for Tucano dated effective September 30, 2019. The Company’s updated assessment of the carrying value of Tucano assigned a value of $85.4 million to the Tucano depreciable mineral properties, plant and equipment on the Acquisition and $43.2 million to non-depreciable mineral properties reflecting the underground reserves and resources, open pit resources, and near-mine and regional exploration potential. The assessment resulted in a reduction of the carrying value of Tucano’s mineral properties, plant and equipment from $167.3 million to $132.1 million and recognition of a $3.5 million deferred income tax liability. Goodwill of $38.7 million, being the difference between the fair value of net identifiable assets acquired and the original share exchange value plus assumed debt, was impaired at March 31, 2019.

Business acquisition costs

Business acquisition costs for the year ended December 31, 2019 of $2.9 million related to the Acquisition.

GREAT PANTHER MINING LIMITED	Page 20
Management’s Discussion & Analysis

Finance and other income (expense)

(000s)		2020			2019			Change		% Change
Interest income	$	347		$	726		$	(379	)	-52	%
Finance costs		(3,981	)		(5,752	)		1,771		-31	%
Accretion expense		(2,629	)		(3,404	)		775		-23	%
Gain (loss) on derivative instruments		(27,980	)		2,353			(30,333	)	-1,289	%
Foreign exchange loss		(16,397	)		(3,852	)		(12,545	)	326	%
Other expense		(2,188	)		(3,211	)		1,023		-32	%
Total finance and other expense	$	(52,828	)	$	(13,140	)	$	(39,688	)	302	%

Finance and other income expense primarily reflects gain or loss on derivative instruments, finance income or expense and foreign exchange losses. During the year ended December 31, 2020, the Company realized losses on BRL/USD forward contracts totalling $21.6 million and recorded unrealized mark-to-market losses of $6.4 million.

As at December 31, 2020, Great Panther held non-deliverable forward foreign exchange contracts for BRL against USD totalling BRL 88.2 million (December 31, 2019 – BRL 418.2 million) at various pre-determined rates ranging from BRL 4.37/USD to BRL 4.45/USD, at various maturity dates until February 2021. The fair value of these outstanding non-deliverable forward foreign exchange contracts resulted in a liability of $3.0 million at December 31, 2020 (December 31, 2019 – asset of $3.5 million). A non-deliverable forward foreign exchange contract does not require physical delivery of the designated currencies at maturity. The objective of the Company’s BRL/USD hedging strategy, which was executed in the fourth quarter of 2019 and first quarter of 2020, was to reduce exposure to any appreciation in the BRL, which was at or near record lows relative to the USD. This allowed the Company to gain better certainty with regard to the Company’s projected operating cash flows and capital expenditures for Tucano at a time of lower gold prices. The Company has not entered any additional forward contracts since January 2020.

The foreign exchange loss related primarily to the translation of foreign currency-denominated borrowings and net working capital into the BRL functional currency of the Company’s operations in Brazil.

There were also decreases in other expenses in this category primarily consisting of interest expenses related to borrowings and past-due payables of $1.8 million, the write-off of Tucano’s Imposto de Circulação de Mercadorias e Serviços de Transporte Interestadual de Intermunicipal e de Comunicações (“ICMS”) of which $2.0 million was determined to be unrecoverable, accretion expense on reclamation and remediation provision of $0.3 million and accretion expense on lease liabilities of $0.5 million.

Tax expense

Income tax expense was $3.8 million compared with an expense of $0.7 million. The majority of the income before taxes of 2020 was attributable to the operations in Brazil, where the statutory corporate tax rate is 34% and tax loss carryforwards are limited in application to 30% of taxable income in any one year. The Company’s effective tax rate of 2020 was 92% and was higher than the statutory rate in Brazil due to losses at the Company’s subsidiaries other than Brazil where the Company has not recognized the benefit of tax losses and other tax attributes for accounting. Refer to note 23 of the consolidated financial statements for the year ended December 31, 2020 for further details.

Net income (loss)

The Company recorded a net income of $0.3 million compared with a net loss of $91.0 million.

Adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”)

Adjusted EBITDA increased by $90.1 million primarily due to an $82.6 million increase in mine operating earnings before non-cash items, a $1.0 million decrease in other expenses, a $1.1 million decrease in EE&D expenses before non-cash items (such as non-cash share-based compensation and changes in estimates of reclamation provisions), a $5.2 million decrease in G&A cash expenses and a $0.1 million decrease in care and maintenance costs at the GMC.

GREAT PANTHER MINING LIMITED	Page 21
Management’s Discussion & Analysis

Three months ended December 31, 2020

	Q4 2020												Q4 2019												% Change
	Tucano			GMC			Topia			Total			Tucano			GMC			Topia			Total
Sales quantities
Gold (ounces)		31,802			1,472			100			33,374			36,213			2,544			235			38,992			-14	%
Silver (ounces)		5,943			117,430			98,593			221,966			5,243			169,162			212,882			387,287			-43	%
Lead (tonnes)		–			–			204			204			–			–			419			419			-51	%
Zinc (tonnes)		–			–			252			252			–			–			469			469			-46	%
Au eq oz sold		31,868			2,777			1,905			36,550			36,279			4,658			4,688			45,625			-20	%
Revenue (000s)
Gold revenue	$	59,920		$	2,768		$	187		$	62,875		$	53,753		$	3,786		$	354		$	57,893			9	%
Silver revenue		152			2,975			2,435			5,562			93			2,954			3,810			6,857			-19	%
Lead revenue		–			–			393			393			–			–			832			832			-53	%
Zinc revenue		–			–			826			826			–			–			1,081			1,081			-24	%
Ore processing revenue		–			–			–			–			–			–			36			36			-100	%
Smelting and refining charges		(1	)		(378	)		(569	)		(948	)		(21	)		(344	)		(655	)		(1,020	)		-7	%
Total revenue	$	60,071		$	5,365		$	3,272		$	68,708		$	53,825		$	6,396		$	5,458		$	65,679			5	%
Average realized metal prices and FX rates
Gold (per ounce)										$	1,884											$	1,485			27	%
Silver (per ounce)										$	25.06											$	17.71			42	%
Lead (per pound)										$	0.87											$	0.90			-3	%
Zinc (per pound)										$	1.48											$	1.05			41	%
USD/CAD											1.306												1.321			-1	%
USD/BRL											5.396												4.117			31	%
USD/MXN											20.594												19.268			7	%

GREAT PANTHER MINING LIMITED	Page 22
Management’s Discussion & Analysis

(000s)		Q4 2020			Q4 2019			Change		% Change
Revenue	$	68,708		$	65,679		$	3,029		5	%
Production costs		36,275			57,232			(20,957	)	-37	%
Mine operating earnings before non-cash items1		32,433			8,447			23,986		284	%
Amortization and depletion		10,180			13,373			(3,193	)	-24	%
Share-based compensation		109			120			(11	)	-9	%
Mine operating earnings		22,144			(5,046	)		27,190		-539	%
Mine operating earnings before non-cash items (% of revenue)		47	%		13	%
Mine operating earnings (% of revenue)		32	%		-8	%
G&A expenses		2,287			8,983			(6,696	)	-75	%
EE&D expenses		3,214			13,878			(10,664	)	-77	%
Business acquisition costs		–			60			(60	)	-100	%
Care and maintenance costs		–			197			(197	)	-100	%
Finance and other expense		1,732			51			1,681		n/a
Tax expense (recovery)		1,300			(147	)		1,447		n/a
Net income (loss)	$	13,611		$	(28,068	)	$	41,679		n/a
Adjusted net income (loss)1	$	6,102		$	(32,403	)	$	38,505		n/a
Adjusted EBITDA1	$	26,513		$	(5,338	)	$	31,851		n/a
Free cash-flow1	$	9,057		$	2,405		$	6,652		277	%

Revenue

(000's)		Gold			Silver			Other metals			Smelting and refining costs		Total
Increase (decrease) in revenue related to:
Price	$	13,329		$	1,642		$	231		$	–	$	15,202
Volumes sold		(8,347	)		(2,936	)		(925	)		–		(12,208	)
Other		–			–			(36	)		71		35
	$	4,982		$	(1,294	)	$	(730	)	$	71	$	3,029
Revenue – Q4 2019													65,679
Revenue – Q4 2020												$	68,708

Revenue generated in the fourth quarter of 2020 was $68.7 million compared with $65.7 million for the fourth quarter of 2019. The increase in revenue of $3.0 million over the same period last year was attributed to higher realized gold and silver prices ($15.0 million), and higher realized price for zinc ($0.2 million). These factors were partly offset by lower metal sales volumes from a decrease in metal production ($12.2 million).

Production costs

Production costs for the fourth quarter of 2020 decreased by $21.0 million compared with the fourth quarter of 2019. The decrease was predominantly attributable to the weakening of the BRL and MXN relative to the USD, which reduced production costs ($10.4 million), lower BRL production costs at Tucano ($4.5 million), and lower sales volume ($9.6 million). These were partially offset by higher MXN production costs at the GMC and Topia ($2.1 million and $1.4 million, respectively).

¹ The Company has included non-GAAP performance measures such as mine operating earnings before non-cash items, adjusted net loss, adjusted EBITDA and free cash-flow throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

GREAT PANTHER MINING LIMITED	Page 23
Management’s Discussion & Analysis

Amortization and depletion

Amortization and depletion for the fourth quarter of 2020 decreased compared with the fourth quarter of 2019, primarily due to the lower sales of gold for the quarter, and the increase in the estimated useful life of Tucano based on the 2020 MRMR update announced in the fourth quarter of 2020.

Mine operating earnings

Mine operating earnings before non-cash items for the fourth quarter of 2020 was $32.4 million compared with $8.4 million for the fourth quarter of 2019. The components of mine operating earnings before non-cash items being revenue and production costs are analyzed above.

Mine operating earnings for the fourth quarter of 2020, including non-cash items, was $22.1 million compared with negative $5.0 million for the fourth quarter of 2019.

General and administrative expenses

G&A expenses for the fourth quarter of 2020 decreased by $6.7 million, or 75%, as the comparative period included a $5.6 million accrual for Brazilian legal claims and a $0.6 million non-recurring severance charges as a result of management changes. A $0.9 million decrease in G&A expenses related to the Australian head office of Beadell for which the primary severance and other post-acquisition contractual costs came to an end in the second quarter of 2020 following the closure of the office in the second quarter of 2019. In addition, there was a $0.4 million decrease in consulting, legal and recruitment fees. These were partly offset by a $0.4 million increase in share-based compensation included in G&A, and a $0.4 million increase in insurance premiums.

Exploration, evaluation and development expenses

EE&D expenses for the fourth quarter of 2020 decreased by $10.7 million, or 77%, compared with the same period in 2019, mainly due to a $9.8 million decrease in Mexico reclamation and remediation provision estimate recorded in EE&D, and a $2.3 million decrease in Coricancha expenditures.

Business acquisition costs

Business acquisition costs for the fourth quarter of 2019 of $0.1 million related to the Acquisition.

Finance and other expense

(000s)		Q4 2020			Q4 2019			Change		% Change
Interest income	$	113		$	110		$	3		3	%
Finance costs		(1,485	)		(1,988	)		503		-25	%
Accretion expense		(642	)		(965	)		323		-33	%
Gain on derivative instruments		2,582			4,035			(1,453	)	-36	%
Foreign exchange loss		(1,301	)		(484	)		(817	)	169	%
Other expense		(999	)		(759	)		(240	)	32	%
Total Finance and other expense	$	(1,732	)	$	(51	)	$	(1,681	)	3,296	%

Finance and other expense for the fourth quarter increased by $1.7 million, compared with the same period in 2019, primarily due to a $1.5 million decrease in derivative instrument gains as a result of the BRL/USD forward foreign exchange contracts, which were marked to market at the prevailing exchange rate at December 31, 2020 (5.20 BRL/USD), a $0.2 million increase in other expense, and a $0.8 million increase in foreign exchange losses that mainly arose from the translation of foreign currency-denominated borrowings and net working capital into the BRL functional currency of our operations in Brazil. These were partly offset by a $0.5 million decrease in finance costs related to interest expense on borrowings and past-due payables, and a $0.3 million decrease in accretion expense.

GREAT PANTHER MINING LIMITED	Page 24
Management’s Discussion & Analysis

Tax expense

Income tax expense for the fourth quarter of 2020 increased by $1.4 million.

Net income (loss)

For the fourth quarter of 2020, the Company recorded net income of $13.6 million compared with a net loss of $28.1 million for the fourth quarter of 2019.

Adjusted earnings before interest, taxes, depreciation and amortization

Adjusted EBITDA was $26.5 million in the fourth quarter of 2020 compared with negative $5.3 million in the fourth quarter of 2019. The increase reflects a $24.0 million increase in mine operating earnings before non-cash items, a $0.9 million decrease in EE&D expenses before non-cash items (such as non-cash share-based compensation and changes in estimates of reclamation provisions), a $7.0 million decrease in G&A cash expenses, and a $0.2 million decrease in care and maintenance costs at the GMC. These were partly offset by a $0.2 million increase in other expenses.

GREAT PANTHER MINING LIMITED	Page 25
Management’s Discussion & Analysis

SELECTED ANNUAL INFORMATION

The following table sets out selected annual financial results, which have been prepared in accordance with IFRS, except as noted:

(in 000’s, except per-share amounts)	2020			2019			2018
Revenue	$	260,805		$	198,653		$	59,434
Production costs		136,297			156,779			47,414
Mine operating earnings before non-cash items1		124,508			41,874			12,020
Amortization and depletion and share-based compensation		40,641			35,029			3,835
Mine operating earnings		83,867			6,845			8,185
G&A expenses		12,926			17,557			6,389
EE&D expenses		13,295			24,026			11,708
Impairment of goodwill		–			38,682			–
Finance and other income (expense)		(52,828	)		(13,140	)		1,846
Net income (loss)		334			(91,022	)		(10,063	)
Basic and diluted loss per share		0.00			(0.33	)		(0.06	)
Adjusted net income (loss)1		22,524			(47,260	)		(9,668	)
Adjusted earnings (loss) per share1		0.07			(0.17	)		(0.06	)
Adjusted EBITDA1		98,019			7,919			(5,054	)
Free cash-flow1		26,941			(12,123	)		(1,742	)
		December 31, 2020			December 31, 2019			December 31, 2018
Cash and short-term deposits		63,396			36,970			50,581
Total assets		280,420			270,742			112,776
Total non-current liabilities		80,631			77,717			25,000
Working capital		31,396			12,815			63,271

¹ The Company has included the non-GAAP performance measures cash cost per gold ounce sold, cash cost per payable silver ounce, AISC per gold ounce sold, excluding corporate G&A expenditures, AISC per gold ounce sold, AISC per payable silver ounce, mine operating earnings before non-cash items, adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA, and free cash-flow throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s reported financial results in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

GREAT PANTHER MINING LIMITED	Page 26
Management’s Discussion & Analysis

SUMMARY OF SELECTED QUARTERLY INFORMATION

(000s, except per-share amounts)	Q4 2020			Q3 2020			Q2 2020			Q1 2020			Q4 2019			Q3 20193			Q2 20193			Q1 20193
Revenue	$	68,708		$	77,019		$	67,028		$	48,050		$	65,679		$	71,002		$	45,278		$16,694
Production costs		36,275			34,948			31,273			33,802			57,232			51,794			34,550		13,203
Mine operating earnings before non-cash items1		32,433			42,071			35,755			14,248			8,447			19,208			10,728		3,491
Amortization and depletion and share-based compensation		10,289			10,179			11,894			8,278			13,493			11,736			7,826		1,974
Mine operating earnings (loss)		22,144			31,892			23,861			5,970			(5,046	)		7,472			2,902		1,517
G&A expenses		2,287			3,456			3,589			3,594			8,983			2,876			3,193		2,505
EE&D expenses		3,214			4,044			2,541			3,495			13,878			2,901			4,488		2,759
Impairment of goodwill		–			–			–			–			–			–			–		38,682
Finance and other income (expense)		(1,731	)		(3,449	)		(8,500	)		(39,148	)		(51	)		(10,080	)		(422	)	(2,587)
Net income (loss) for the period		13,611			18,635			8,552			(40,464	)		(28,068	)		(9,171	)		(5,758	)	(48,026)
Basic and diluted earnings (loss) per share		0.04			0.05			0.03			(0.13	)		(0.09	)		(0.03	)		(0.02	)	(0.24)
Adjusted net income (loss)1		6,102			12,540			11,430			(7,548	)		(32,403	)		(920	)		(8,965	)	(4,974)
Adjusted earnings (loss) per share1		0.02			0.04			0.03			(0.02	)		(0.10	)		(0.00	)		(0.03	)	(0.02)
Adjusted EBITDA1		26,513			34,934			30,191			6,380			(5,338	)		12,909			2,044		(1,698)
Free cash-flow1		9,057			10,984			11,574			(4,674	)		2,405			8,636			(10,529	)	(12,636)

		Q4 2020		Q3 2020		Q2 2020		Q1 2020		Q4 2019		Q3 20193		Q2 20193	Q1 20193
Tonnes milled2		951,352		888,746		847,174		880,162		928,198		813,260		782,568	263,821
Production
Gold (ounces)		33,703		34,031		36,357		28,940		37,089		39,651		33,461	8,293
Silver (ounces)		225,477		375,247		142,457		374,917		423,231		418,032		349,668	338,431
Lead (tonnes)		212		457		163		401		487		539		453	481
Zinc (tonnes)		294		565		223		632		650		689		575	662
Au eq oz		36,997		39,788		38,541		34,725		44,697		47,374		39,922	14,860
Sales
Gold ounces sold		33,374		35,179		37,076		26,807		38,992		43,025		29,850	8,189
Au eq oz sold		36,549		40,489		39,316		32,225		45,625		50,118		35,759	14,244
Cost metrics
Cash cost per gold ounce sold1	$	905	$	712	$	729	$	1,045	$	1,268	$	1,014	$	950	$868
AISC per gold ounce sold excluding corporate G&A expenditures1	$	1,248	$	1,023	$	1,027	$	1,749	$	1,615	$	1,310	$	1,153	$1,506
AISC per gold ounce sold1	$	1,318	$	1,123	$	1,126	$	1,886	$	1,703	$	1,377	$	1,260	$1,816

¹ The Company has included the non-GAAP performance measures cash cost per gold ounce sold, cash cost per payable silver ounce, AISC per gold ounce sold excluding corporate G&A expenditures, AISC per gold ounce sold, AISC per payable silver ounce, mine operating earnings before non-cash items, adjusted net income (loss), adjusted earnings (loss) per share, adjusted EBITDA, and free cash-flow throughout this document. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. As these are not standardized measures, they may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

² Excludes purchased ore.

³ The quarterly information for 2019 was restated to reflect the adjustments related to the Tucano 2019 MRMR that impacted the period from March 5, 2019 to September 30, 2019. Refer to the December 31, 2019 MD&A for further details of the impact.

GREAT PANTHER MINING LIMITED	Page 27
Management’s Discussion & Analysis

Trends in revenue over the last eight quarters

Revenue varies based on the metal production level, timing of the sales of refined gold and metal concentrates, metal prices and terms of sales agreements. The climate in Mexico allows mining and exploration activities to be conducted throughout the year, and therefore, there are no meaningful seasonal effects on metal production from the Company’s Mexican operations. In Brazil, Tucano is affected by seasonal weather. During the wet season (normally from January through June), production rates are lower than during the dry season (normally July until December). Prior to the Acquisition, the Company’s trend in revenue was mainly impacted by the fluctuation in prices for silver and gold.

The majority of the metal production for the first quarter of 2019 were from the Mexican operations. Since the acquisition of Tucano on March 5, 2019, metal production from the second quarter of 2019 up to the fourth quarter of 2020 was in the 34,700 – 47,400 Au eq oz range. Metal production for the third and fourth quarters of 2019 also increased due to the successful commissioning of the supplemental oxygen system at Tucano, which enabled the processing of higher-grade sulphide ore. Metal production decreased in the first quarter of 2020 due to the UCS pit issue at Tucano from the fourth quarter of 2019, as noted in the Company’s news releases on October 7, 2019, and October 15, 2019, and lower metal production at Topia.

Trends in net income over the last eight quarters

The Company’s net income is mainly dependent on fluctuations in metal prices, rates of metal production, variability in the Mineral Resource, EE&D activities, and foreign exchange rates, and since the Acquisition, seasonality of production has become a significant factor, as discussed above. The Company also incurred significant EE&D expenditures in relation to the Coricancha BSP from the third quarter of 2018 until its completion in the second quarter of 2019, and additional costs associated with the ore processing campaign which commenced in the fourth quarter of 2019. Production costs in Mexico have increased in more recent quarters as a result of higher variability in Mineral Resources at the GMC, costs of temporary shutdowns affecting production costs, personnel restructuring costs, and mining contractor rate increases at both the GMC and Topia.

To mitigate its exposure to foreign exchange risk, the Company from time to time enters into forward currency contracts. To the end of the first quarter of 2019, these were primarily for MXN. Commencing the second quarter of 2019, the Company entered into contracts for BRL. Such contracts can result in foreign exchange gains and losses, as these contracts are marked to market at the end of each reporting period. Foreign exchange gains or losses are included in finance and other income. Foreign exchange gains and losses also arise from the translation of foreign currency denominated transactions and balances into the functional currencies of the Company and its subsidiaries.

The Company’s EE&D expenditures have been primarily incurred in relation to Coricancha care and maintenance and project expenditures after its acquisition in June 2017, with the exception of the fourth quarter of 2019 when adjustments to Mexican reclamation provisions were recorded in the amount of $9.7 million.

Since the acquisition of Tucano on March 5, 2019, G&A expenditures were fairly consistent over the last eight quarters with the exception of non-recurring G&A charges related to management changes and accruals made for Brazilian legal claims in the fourth quarter of 2019.

GREAT PANTHER MINING LIMITED	Page 28
Management’s Discussion & Analysis

GUIDANCE AND OUTLOOK

Outlook

In 2021, consolidated gold equivalent production from the Tucano, Topia and GMC mines is expected to be 135,000 to 150,000 Au eq oz, with the second half of 2021 expected to account for a least 55% of the annual production guidance. The mine plan for Tucano also reflects more stripping in the first half of 2021 and therefore AISC is expected to be higher than the annual guidance in the first half of 2021. The Mineral Reserve and Resource update for Tucano announced in December has allowed for an extension of the life of the Urucum and Tapereba pits that have been mined at Tucano over the last several years, and the latest mine plan will see a transition to mining higher grades in 2022 and 2023.

These production and cost guidance estimates are forward-looking statements and information. They should be read in conjunction with the Cautionary Statement on Forward-Looking Statements section at the end of this MD&A. The Company may revise guidance during the year to reflect actual results to date and those anticipated for the remainder of the year.

Readers are cautioned that there are no current estimates of Mineral Reserves for any of the Company’s Mexican mines. As a result, there may be increased uncertainty and risks of achieving any particular level of recovery of minerals from the Company’s mines or the costs of such recovery. Mineral Resources that are not Mineral Reserves have no demonstrated economic or technical viability. These risks could have a material adverse impact on the Company’s ability to generate anticipated revenues and cash flows to fund operations and ultimately achieve or maintain profitable operations.

2021 Guidance	Tucano		Mexico		Consolidated
Gold eq production (oz)1		110,000-120,000		25,000-30,000		135,000-150,000
Silver production (k oz)		–		1,500-1,600		1,500-1,600
Gold production (oz)		110,000-120,000		8,000-10,000		118,000-130,000
AISC ($/ Au oz sold)2		$1,350-1,450		N/A		$1,350-1,450
Exploration (operating mines) ($ millions)	$	8.4	$	3.0	$	11.4

The production and cost guidance for 2021 assumes no COVID-19 related shutdowns, ongoing geotechnical control/stability of the UCS pit and the Company’s ability to successfully access the mineralization in the UCS pit without additional costs or interruption and permitting of additional tailings storage capacity at the GMC.

¹ Gold equivalent ounces for 2021 are calculated using a 1:85 ratio of the silver price to the gold price, which is representative of the average ratio for the respective metal prices for 2020, and approximate ratios for the price/ounce of gold to price/pound of lead and zinc, respectively, for 2020.

² AISC is a non-GAAP measure and is widely used in the mining industry as a benchmark for performance, but does not have a standardized meaning as prescribed by IFRS as an indicator of performance and accordingly may not be directly comparable to similarly titled measures used by others and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Refer to the Non-GAAP Measures section of this MD&A for an explanation of these measures and reconciliation to the Company’s financial results reported in accordance with IFRS. The Company’s AISC guidance assumes a Brazilian real to US dollar exchange rate of 4.75. Actual results may differ.

GREAT PANTHER MINING LIMITED	Page 29
Management’s Discussion & Analysis

LIQUIDITY AND CAPITAL RESOURCES

Net working capital including cash and cash equivalents

(000s)		December 31, 2020		December 31, 2019		Change
Cash and cash equivalents	$	63,396	$	36,970	$	26,426
Net working capital	$	31,396	$	12,815	$	18,581
Adjusted net working capital1	$	34,369	$	9,361	$	25,008

Cash and cash equivalents increased by $26.4 million during 2020 primarily due to $68.9 million of cash provided by operating activities, $14.7 million of net proceeds from the bought deal financing, $11.3 million of gross proceeds from the gold doré prepayment facility with Samsung, and $0.7 million in proceeds from the exercise of stock options. These contributions to cash were partially offset by capital investments of $41.9 million, including $29.1 million of capitalized stripping costs at Tucano, $20.1 million in net principal repayments on borrowings, $5.8 million in lease liability payments, and a $1.3 million reduction in cash as a result of foreign currency translation. Cash provided by operating activities is net of realized losses on the Company’s non-deliverable BRL forward contracts and a premium paid for gold put options for the year ended December 31, 2020 totalling $21.6 million.

The $18.6 million increase in net working capital is primarily attributed to the increase in cash and cash equivalents partially offset by the mark-to-market adjustment on the Company’s non-deliverable BRL forward contracts at December 31, 2020.

Operating activities

For the year ended December 31, 2020, cash flows provided by operating activities before changes in non-cash working capital amounted to $69.0 million, compared with outflows of $1.5 million in 2019. This $70.5 million increase is primarily due to higher realized gold and silver prices and gold ounces sold, in addition to lower cash cost per gold ounce sold. Including a $0.1 million decrease in non-cash working capital, cash flow from operating activities was $68.9 million.

Cash flow from operating activities, before changes in non-cash working capital, was $17.8 million in the quarter ended December 31, 2020, up $25.6 million over the comparable period of 2019. This increase is attributable to higher realized gold and silver prices, as well as lower cash cost per gold ounce sold. Including changes in non-cash working capital, cash flow from operating activities was $18.0 million for the fourth quarter of 2020.

Investing activities

The Company invests excess cash in short-term deposits and similar instruments as part of its routine cash management procedures. As these instruments are acquired or mature at various times and periods, cash flows provided by or used in investing activities vary significantly from quarter to quarter.

Excluding movements in short-term deposits, for the year ended December 31, 2020, the Company invested $41.9 million in plant and equipment, including $29.1 million of capitalized stripping at Tucano. The investing cash outflows during 2019 related to $25.9 million in additions of plant and equipment (including $13.3 million of capitalized stripping at Tucano), partially offset by $2.7 million of partial repayment received on the loan advanced to Beadell prior to the Acquisition, $1.4 million in cash received upon the Acquisition, and a $0.4 million net cash recovery in relation to the Coricancha environmental bond.

For the quarter ended December 31, 2020, the Company’s cash outflows in respect of investing activities included $9.2 million for additions to mineral properties, plant and equipment (including $4.7 million of capitalized stripping costs at Tucano). For the fourth quarter of 2019, the comparative figures included $5.4 million in additions to plant and equipment (including $1.1 million of capitalized stripping costs at Tucano).

¹ The Company has included the non-GAAP performance measure Adjusted Net Working Capital which is calculated as Net Working Capital, less the fair value of derivative assets and liabilities. Refer to the Non-GAAP Measures section of this MD&A for an explanation of this measure and reconciliation to the Company’s financial results reported in accordance with IFRS.

GREAT PANTHER MINING LIMITED	Page 30
Management’s Discussion & Analysis

Financing activities

For the year ended December 31, 2020, cash flows provided by financing activities amounted to $0.8 million consisting of $14.7 million of net cash proceeds from the bought-deal financing in the second quarter of 2020, $11.3 million of gross proceeds from the gold doré prepayment facility with Samsung, $24.7 million of drawings on credit facilities and $0.7 million in proceeds from the exercise of stock options, partly offset by $44.8 million in principal repayments on borrowings and $5.8 million in lease liability payments. The financing cash outflow during 2019 related to the net cash repayment of borrowings of $16.2 million, and payment of lease liabilities of $6.2 million, partly offset by the net cash proceeds from the bought deal financing of $15.9 million, and proceeds from the exercise of stock options of $0.5 million.

Cash flows used in financing activities of $13.1 million during the fourth quarter of 2020 is primarily attributed to $11.9 million net cash repayment of borrowings, and $1.4 million payment of lease liabilities, partly offset by $0.2 million in proceeds from the exercise of stock options. The $7.4 million cash flow from financing activities in the fourth quarter of 2019 related to the $10.0 million promissory note from IXM S.A. (“IXM”), partly offset by net cash repayments on Tucano borrowings of $0.8 million, and the payment of lease liabilities of $1.8 million.

Offering – use of proceeds

The net proceeds from the Offering after deducting the underwriters’ fee and expenses were $14.7 million. The following table provides a reconciliation between the Company’s planned use of the net proceeds from the Offering and the actual use of proceeds as of December 31, 2020.

($ millions)	Intended Use of Proceeds		Total Spend to December 31, 2020
Near-mine and regional exploration programs at Tucano	$	6.6	$	2.1
Working capital and general corporate purposes 1		6.2		6.2
Total 2	$	12.8	$	8.3

¹ Under the terms of the Amended and Restated Deed of Acknowledgement of Debt, Termination and Release of Open Pit Mining Services Contract dated effective March 5, 2019 (the “MACA Agreement”) between the Company, its subsidiaries, Mina Tucano Ltda. and Beadell Resources Ltd., and MACA Mineracao e constucao Civil Limitada and MACA Limited (together, “MACA”), the Company is required to pay to MACA an amount equal to 10% of the proceeds of the Offering, net of direct costs and expenses of undertaking the Offering, including legal, brokerage and advisor fees.

² The difference between the net proceeds of $14.7 million and the intended use of proceeds of $12.8 million relates to over-allotment. The additional proceeds attributed to the over-allotment have been used for general working capital purposes which includes the repayment of the IXM note.

GREAT PANTHER MINING LIMITED	Page 31
Management’s Discussion & Analysis

The Company plans to continue to evaluate its needs for additional financing beyond the proceeds of the Offering from time-to-time. The Company will also evaluate, from time-to-time, sales of the common shares under the Company’s At-the-market financing facility (the “ATM Facility”) in order to improve the Company’s liquidity and working capital position. To date, the Company has not issued any shares under the ATM Facility (further discussed below). To the extent that cash flows generated from operations during 2021 are less than anticipated and the Company does not complete sales under the ATM Facility, the Company may be required to seek alternative sources of financing.

Trends in liquidity and capital resources

As at December 31, 2020, cash and cash equivalents were $63.4 million and net working capital totalled $31.4 million. The Company has $30.9 million of current borrowings at December 31, 2020, $3.3 million was repaid subsequent to the end of the year, and there are approximately $28.8 million of remaining repayments due in 2021. The Company has unsecured, revolving, interest-bearing bank facilities totalling $3.0 million that are repayable from January 2021 to March 2021. To date, the Company has been generally able to renew or replace these facilities, but cannot provide assurance that it will be able to do so in the future. The unsecured bank facilities are interest bearing at a weighted average fixed interest rate of 5.8% per annum. Subsequent to December 31, 2020, facilities totalling $1.4 million matured and were not renewed.

The Company expects to generate positive cash flows from its mining operations in 2021 prior to capital investments, exploration and evaluation and development costs, and debt repayment obligations, at current metal prices and at current exchange rates for the BRL and MXN to the USD. This also assumes no further significant disruptions to production related to government measures to reduce the spread of COVID-19, such as the temporary measures that affected Mexico and Peru and possible measures affecting Tucano discussed in this MD&A. The Company may raise additional debt or equity over the next twelve months to improve working capital, fund planned capital investments and exploration programs for its operating mines, for acquisitions and to meet scheduled debt repayment obligations.

As previously discussed under Results of Operations section, the Company has entered into forward currency contracts to reduce its exposure to the fluctuation in BRL to USD exchange rates. These contracts are settled in cash at each maturity date for an amount equal to the difference between the spot market exchange rate on the settlement date and the contract rate multiplied by the contractual notional amount. For January and February 2021, the Company realized a loss of $3.5 million on final settlement of the remaining forward exchange contracts. The Company has not entered into any additional forward exchange contracts since January 2020.

Additional capital may be needed in the event the Company determines it will undertake other projects that are currently not part of its plans and guidance, or if the Company undertakes an acquisition. Sources of capital include the ATM Facility entered into by the Company in July 2019 and accessing the private and public capital markets for debt and equity over the next twelve months. Adverse movement in metal prices, unforeseen impacts to the Company’s operation, and/or the inability to renew or extend existing credit facilities that become due may increase the need to raise new external sources of capital, and the inability to access sources of capital could adversely impact the Company’s liquidity and require the Company to curtail capital and exploration program, and other discretionary expenditures.

In the second quarter of 2019, the Company entered into the agreement governing the ATM Facility under which it can sell common shares equal to the lesser of i) 10% of the aggregate market value of the Company’s outstanding common shares as at the last trading day of the month before the month in which the first trade under the offering is made, and ii) aggregate gross proceeds of $25.0 million. In the second quarter of 2020 and the third quarter of 2019, the Company completed bought deal financings for gross proceeds of $16.1 million and $17.3 million, respectively.

The Company is actively pursuing refunds of two Brazilian taxes, the Program of Social Integration (“PIS”) and Contribution for the Financing of Social Security (“COFINS”). Efforts to date have been successful in decreasing these receivables.

The Company completed the acquisition of Tucano in March 2019, which resulted in significant growth in the business. Over the next 12 months, the Company expects to focus on continued Tucano optimization and exploration. In Mexico, a key focus will be the completion of Topia Phase III TSF, the exploration program at the GMC, and the overall improvement of the performance of the Mexican operations. In Peru, the Company will be further evaluating the potential for a restart of Coricancha.

GREAT PANTHER MINING LIMITED	Page 32
Management’s Discussion & Analysis

The Company’s operating cash flows are very sensitive to the prices of gold and silver, and foreign exchange rate fluctuations, as well as fluctuations in ore grades and other operating factors. Consequently, any cash flow outlook the Company provides may vary significantly. Spending and capital investment plans may also be adjusted in response to changes in operating cash flow expectations. An increase in average gold and silver prices from current levels may result in an increase in planned expenditures and, conversely, weaker average silver prices and gold prices could result in a reduction of planned expenditures.

Contractual obligations

(000s)		Total		1 year		2-3 years		4-5 years		Thereafter
Operating lease payments	$	32	$	32	$	–	$	–	$	–
Drilling services		710		710		–		–		–
Equipment purchases		1,420		1,420		–		–		–
Debt obligations		33,399		30,934		2,465		–		–
Capital lease obligations		11,221		5,296		5,925		–		–
Other financial obligations		38,625		38,434		191		–		–
Total	$	85,407	$	76,826	$	8,581	$	–	$	–

Under the terms of the acquisition agreement for Coricancha (the “Coricancha Acquisition Agreement”), Nyrstar (the “Vendor”) agreed to indemnify the Company for up to $20.0 million on account of certain reclamation and remediation expenses incurred in connection with Coricancha. As at December 31, 2020, the Company’s consolidated financial statements reflect a reimbursement right in the amount of $12.2 million in respect of these reclamation and remediation obligations that will be recoverable from the Vendor when these expenditures are incurred. Since closing the acquisition on June 30, 2017, the Company has received $1.8 million in reimbursements from the Vendor in respect of reclamation and remediation costs incurred by the Company at Coricancha.

Under the Coricancha Acquisition Agreement, the Vendor also agreed to indemnify the Company for up to $4.0 million in respect of legal claims and fines and sanctions that the Company may be required to pay in connection with Coricancha. As at December 31, 2020, the Company has recorded a reimbursement right in the amount of $1.9 million in respect of certain legal claims, fines and sanctions that will be recoverable from the Vendor upon the conclusion of these claims.

Pursuant to the acquisition of Coricancha on June 30, 2017, the Vendor agreed to maintain a remediation bond in the amount of $9.7 million for Coricancha until at least June 30, 2020. On June 29, 2020, the Company reached an agreement with the Vendor to defer post-remediation bond funding requirements beyond the original June 30, 2020, expiry date. The Vendor will maintain a $7.0 million bond until June 30, 2021, and $6.5 million for the following year, effectively deferring the Company’s funding requirements for these amounts until June 30, 2022 unless Great Panther makes a decision to permanently close Coricancha. The amount of the remediation bond amount was increased in June 2017 to $10.9 million. If a decision to permanently close the mine is made, Nyrstar will fund closure costs up to the revised amount of its bond funding obligation, and Coricancha will be required to post the full amount of the required amount of the remediation bond with Peruvian government authorities. If no decision is made to permanently close Coricancha by June 30, 2022, then Coricancha will likewise be required to post the full amount of the required reclamation bond. Refer to the Significant Events – Coricancha section of this MD&A for more information.

Off-balance sheet arrangements

Other than as disclosed, the Company had no material off-balance sheet arrangements as at the date of this MD&A that have, or are reasonably likely to have, a current or future effect on the financial performance or financial condition of the Company.

GREAT PANTHER MINING LIMITED	Page 33
Management’s Discussion & Analysis

TRANSACTIONS WITH RELATED PARTIES

The Company had no material transactions with related parties.

CRITICAL ACCOUNTING ESTIMATES

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions which affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates are based on historical experience and other factors considered to be reasonable and are reviewed on an ongoing basis. Actual results may differ from these estimates.

Refer to note 4 of the 2020 annual audited consolidated financial statements for a detailed discussion of the areas in which critical accounting estimates are made and where actual results may differ from the estimates under different assumptions and conditions and may materially affect financial results of its statement of financial position reported in future periods.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

CHANGES IN ACCOUNTING POLICIES

The Company adopted the new IFRS 3 – Business Combinations accounting standard effective January 1, 2020. The adoption of this standard did not have a material impact on the consolidated financial statements for the year ended December 31, 2020.

NEW ACCOUNTING STANDARDS

There are no new accounting standards that had a material impact on the Company’s consolidated financial statements for the year ended December 31, 2020.

FINANCIAL INSTRUMENTS

(000s)	Fair value1		Basis of measurement	Associated risks
Cash and cash equivalents	$	63,396	Amortized cost	Credit, currency, interest rate
Marketable securities	$	1	Fair value through other comprehensive income (loss)	Exchange
Trade receivables	$	2,011	Amortized cost	Credit, commodity price
Derivative assets	$	–	Fair value through profit or loss	Credit, currency, interest rate
Restricted cash	$	1,055	Amortized cost	Credit, currency, interest rate
Trade payables and accrued liabilities	$	42,428	Amortized cost	Currency, liquidity
Derivative liabilities	$	2,974	Fair value through profit or loss	Credit, currency, interest rate
Borrowings	$	33,398	Amortized cost	Currency, liquidity, interest rate

The Company may be exposed to risks of varying degrees of significance from financial instruments. Management’s close involvement in the operations allows for the identification of risks and variances from expectations. A discussion of the types of risks the Company is exposed to, and how such risks are managed by the Company, is provided in note 26 of the annual audited consolidated financial statements for the year ended December 31, 2020.

¹ As at December 31, 2020.

GREAT PANTHER MINING LIMITED	Page 34
Management’s Discussion & Analysis

SECURITIES OUTSTANDING

As of the date of this MD&A, the Company had 355,070,413 common shares issued and outstanding.  There were 9,668,786 options, 1,950,464 restricted share units, 1,904,500 performance-based restricted share units, 2,437,234 deferred share units and 9,749,727 share purchase warrants outstanding.

NON-GAAP MEASURES

The Company has included certain non-GAAP performance measures throughout this MD&A, including EBITDA, adjusted EBITDA, adjusted net loss, adjusted net loss per share, adjusted net working capital, mine operating earnings before non-cash items, free cash-flow, cash cost per gold ounce sold, cash cost per payable silver ounce, AISC per gold ounce sold, AISC per payable silver ounce and AISC per gold ounce sold excluding corporate G&A expenditures, each as defined in this section. The Company employs these measures internally to measure its operating and financial performance and to assist in business decision making. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors and other stakeholders also use these non-GAAP measures as information to evaluate the Company’s operating and financial performance. As there are no standardized methods of calculating these non-GAAP measures, the Company’s procedures may differ from those used by others and, therefore, the use of these measures may not be directly comparable to similarly titled measures used by others. Accordingly, these non-GAAP measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS.

EBITDA and Adjusted EBITDA

EBITDA provides an indication of the Company’s continuing capacity to generate income from operations before taking into account the Company’s financing decisions and costs of amortizing capital assets. Accordingly, EBITDA comprises net income (loss) excluding interest expense, interest income, amortization and depletion, and income taxes. Adjusted EBITDA adjusts EBITDA to exclude share-based compensation expense, foreign exchange gains and losses, impairment charges, changes in reclamation estimates recorded in EE&D, and non-recurring items. Under IFRS, entities must reflect within compensation expense the cost of share-based compensation. In the Company’s circumstances, share-based compensation can involve significant amounts that will not be settled in cash but are settled by the issuance of shares in exchange. The Company discloses adjusted EBITDA to aid in understanding the results of the Company.

(000s)		Q4 2020			Q4 2019			FY 2020			FY 2019
Net income (loss) for the period	$	13,611		$	(28,068	)	$	334		$	(91,022	)
Income tax expense		1,300			(147	)		3,791			744
Interest income		(113	)		(110	)		(347	)		(726	)
Finance costs		2,127			2,954			6,610			9,156
Amortization of mineral properties, plant and equipment		10,285			13,553			40,751			35,185
EBITDA	$	27,210		$	(11,818	)	$	51,139		$	(46,663	)
Business acquisition costs		–			60			–			2,923
Unrealized foreign exchange loss (gain)		1,302			484			16,397			3,852
Unrealized derivative instruments loss (gain)		(2,582	)		(4,035	)		27,980			(2,353	)
Share-based compensation		599			218			2,462			1,726
Impairment of goodwill		–			–			–			38,682
Change in reclamation and remediation provision recorded in EE&D		(16	)		9,753			41			9,752
Adjusted EBITDA	$	26,513		$	(5,338	)	$	98,019		$	7,919

GREAT PANTHER MINING LIMITED	Page 35
Management’s Discussion & Analysis

Free cash-flow

Free cash flow is a non-GAAP measure to analyze cash flows generated from operations and is calculated by deducting additions to mineral properties, plant and equipment from net cash provided by (used in) operating activities. Management believes this to be a useful indicator of the Company’s ability to operate without reliance on additional borrowing or usage of existing cash.

(000s)		Q4 2020			Q4 2019			FY 2020			FY 2019
Net cash provided by operating activities	$	17,972		$	7,785		$	68,889		$	13,787
Additions to mineral properties, plant and equipment		(8,915	)		(5,380	)		(41,948	)		(25,910	)
Free cash-flow	$	9,057		$	2,405		$	26,941		$	(12,123	)

GREAT PANTHER MINING LIMITED	Page 36
Management’s Discussion & Analysis

Adjusted net income (loss) and adjusted earnings (loss) per share

The Company uses adjusted net income (loss) and adjusted earnings (loss) per share to supplement information in its consolidated financial statements. The Company excludes the following from net earnings to provide a measure that allows the Company to evaluate the operating results of the underlying core operations: i) share-based compensation, ii) unrealized loss on derivative instruments, iii) unrealized foreign exchange loss, iv) business acquisition costs and v) impairment of goodwill.

(000s)		Q4 2020			Q4 2019			FY 2020		FY 2019
Net income (loss) for the period	$	13,611		$	(28,068	)	$	334	$	(91,022	)
Adjusted for the following items:
Impairment of goodwill		–			–			–		38,682
Business acquisition costs		–			60			–		2,923
Unrealized loss (gain) on derivative instruments		(8,656	)		(4,035	)		6,428		(2,354	)
Unrealized foreign exchange loss (gain)		548			(578	)		13,300		2,785
Share-based compensation		599			218			2,462		1,726
Adjusted net income (loss)	$	6,102		$	(32,403	)	$	22,524	$	(47,260	)
Weighted average number of shares (000s)		354,761			311,573			337,834		273,380
Adjusted earnings (loss) per share	$	0.02		$	(0.10	)	$	0.07	$	(0.17	)
Diluted adjusted earnings (loss) per share	$	0.02		$	(0.10	)	$	0.07	$	(0.17	)

Mine operating earnings before non-cash items

Mine operating earnings before non-cash items provide a measure of the Company’s mine operating earnings on a cash basis. This measure is provided to better assess the cash generation ability of the Company’s operations, before G&A expenses, EE&D expenses, share-based compensation, and amortization. A reconciliation of mine operating earnings is provided in the Results of Operations section.

Cash cost per gold ounce sold, AISC per gold ounce sold and AISC per gold ounce sold, excluding corporate G&A expenditures

The Company uses cash costs per gold ounce sold and AISC per gold ounce sold to manage and evaluate operating performance at each of its mines. These metrics are widely reported measures in the precious metals mining industry as benchmarks for performance but do not have standardized meanings. Cash costs is calculated based on the total cash operating costs with the deduction of revenue attributable to sales of by-product metals, net of the respective smelting and refining charges.

AISC is an extension of cash costs which includes additional costs that reflect the varying costs of producing gold over the life-cycle of a mine. These include sustaining capital expenditures, sustaining EE&D expenditures, G&A costs and other costs that are not typically reported as cash costs. Sustaining expenditures are those costs incurred to sustain and maintain existing assets at current productive capacity and constant planned levels of productive output. Non-sustaining expenditures are those which result in a material increase in the life of assets, materially increase resources or reserves, productive capacity, or future earning potential, or which result in significant improvements in recovery or grade. Non-sustaining expenditures and are not included in the calculation of AISC.

AISC excluding corporate G&A expenditures reflects the AISC at the Company’s operating mines. The calculation starts with cash cost net of by-product revenues and adds accretion of reclamation provisions, lease liability payments, sustaining EE&D expenses, and sustaining capital expenditures for the operating mines. Sustaining expenditures are those costs incurred to sustain and maintain existing assets at current productive capacity and constant planned levels of productive output.

GREAT PANTHER MINING LIMITED	Page 37
Management’s Discussion & Analysis

The following reconciles production costs reported in the consolidated financial statements to cash costs per gold ounce sold, AISC per gold ounce sold, and AISC per gold ounce sold, excluding corporate G&A expenditures for the year ended December 31, 2020 and 2019:

	FY 2020												FY 2019
	Tucano			Mexico			Excluding Corporate costs			Including Corporate costs			Tucano			Mexico			Excluding Corporate costs			Including Corporate costs
Production costs (sales basis)	$	106,732		$	28,050		$	134,782		$	134,782		$	120,662		$	36,119		$	156,781		$	156,781
Smelting and refining charges		69			4,031			4,100			4,100			200			3,524			3,724			3,724
Revenue from custom milling		–			(34	)		(34	)		(34	)		–			(102	)		(102	)		(102	)
By-product revenues		(487	)		(28,085	)		(28,572	)		(28,572	)		(93	)		(31,770	)		(31,863	)		(31,863	)
Cash operating costs, net of by-product revenue (A)	$	106,314		$	3,962		$	110,276		$	110,276		$	120,769		$	7,771		$	128,540		$	128,540
G&A costs		–			–			–			10,474			5,600			–			5,600			15,721
Lease liability payments		5,433			74			5,507			5,740			5,777			96			5,873			6,094
Share-based compensation		–			–			–			2,462			–			–			–			1,726
Accretion		943			112			1,055			1,055			–			62			62			62
Sustaining EE&D costs		615			4,083			4,698			4,749			214			3,355			3,569			3,557
Stripping costs		29,108			–			29,108			29,108			13,264			–			13,264			13,264
Sustaining capital expenditures		7,749			1,990			9,739			9,739			6,274			2,098			8,372			8,372
Care and maintenance costs		–			2,208			2,208			2,208			–			795			795			795
All-in sustaining costs (B)	$	150,162		$	12,429		$	162,591		$	175,811		$	151,898		$	14,177		$	166,075		$	178,131
Gold ounces sold (C)		125,176			7,260			132,436			132,436			108,021			12,035			120,056			120,056
Cash cost per gold ounce sold (A÷C)	$	849		$	546		$	833		$	833		$	1,118		$	646		$	1,071		$	1,071
AISC per gold ounce sold (B÷C)	$	1,200		$	1,712		$	1,228		$	1,328		$	1,406		$	1,178		$	1,383		$	1,484

GREAT PANTHER MINING LIMITED	Page 38
Management’s Discussion & Analysis

The following reconciles production costs reported in the consolidated financial statements to cash costs per gold ounce sold, AISC per gold ounce sold, and AISC per gold ounce sold, excluding corporate G&A expenditures for the three months ended December 31, 2020 and 2019:

	Q4 2020												Q4 2019
	Tucano			Mexico			Excluding Corporate costs			Including Corporate costs			Tucano			Mexico			Excluding Corporate costs			Including Corporate costs
Production costs (sales basis)	$	28,095		$	7,930		$	36,025		$	36,025		$	48,593		$	8,639		$	57,232		$	57,232
Smelting and refining charges		1			947			948			948			21			999			1,020			1,020
Revenue from custom milling		–			–			–			–			–			(36	)		(36	)		(36	)
By-product revenues		(152	)		(6,629	)		(6,781	)		(6,781	)		(93	)		(8,677	)		(8,770	)		(8,770	)
Cash operating costs, net of by-product revenue (A)	$	27,944		$	2,248		$	30,192		$	30,192		$	48,521		$	925		$	49,446		$	49,446
G&A costs		–			–			–			1,741			5,600			–			5,600			8,760
Lease liability payments		1,294			11			1,305			1,365			1,719			14			1,733			1,787
Share-based compensation		–			–			–			599			–			–			–			218
Accretion		234			49			283			283			–			6			6			6
Sustaining EE&D costs		286			1,340			1,626			1,562			214			606			820			823
Stripping costs		4,658			–			4,658			4,658			1,085			–			1,085			1,085
Sustaining capital expenditures		2,815			514			3,329			3,329			3,725			360			4,085			4,085
Care and maintenance costs		–			249			249			249			–			197			197			197
All-in sustaining costs (B)	$	37,231		$	4,411		$	41,642		$	43,978		$	60,864		$	2,108		$	62,972		$	66,407
Gold ounces sold (C)		31,802			1,572			33,374			33,374			36,213			2,779			38,992			38,992
Cash cost per gold ounce sold (A÷C)	$	879		$	1,430		$	905		$	905		$	1,340		$	333		$	1,268		$	1,268
AISC per gold ounce sold (B÷C)	$	1,171		$	2,806		$	1,248		$	1,318		$	1,681		$	759		$	1,615		$	1,703

GREAT PANTHER MINING LIMITED	Page 39
Management’s Discussion & Analysis

Cash cost per payable silver ounce and AISC per payable silver ounce

Although the Company’s primary metal produced by value is gold after the Acquisition, the Company still uses cash cost per payable silver ounce and AISC per payable silver ounce to manage and evaluate operating performance at its operating mines in Mexico because silver continues to represent a significant portion of production at these mines.

The following table reconciles cash operating costs, net of by-product revenue to AISC per payable silver ounce for the year and three months ended December 31, 2020 and 2019:

	Q4 2020						Q4 2019						FY 2020						FY 2019
	GMC			Topia			GMC			Topia			GMC			Topia			GMC			Topia
Production costs (sales basis)	$	5,016		$	2,914		$	4,584		$	4,055		$	15,757		$	12,293		$	18,132		$	17,987
Smelting and refining charges		378			569			344			655			1,486			2,545			1,173			2,351
Revenue from custom milling		–			–			–			(36	)		–			(34	)		–			(102	)
By-product revenues		(2,768	)		(1,406	)		(3,786	)		(2,267	)		(11,889	)		(6,371	)		(15,554	)		(9,873	)
Cash operating costs net of by-product revenue (A)	$	2,626		$	2,077		$	1,142		$	2,407		$	5,354		$	8,433		$	3,751		$	10,363
Lease liability payments		1			10			2			12			1			73			16			80
Accretion		31			18			3			3			56			56			33			29
Sustaining EE&D costs		1,289			51			416			190			3,835			248			2,559			796
Sustaining capital expenditures		32			482			54			306			347			1,643			201			1,897
Care and maintenance costs		–			249			197			–			1,382			826			795			–
All-in sustaining costs (B)	$	3,980		$	2,887		$	1,814		$	2,918		$	10,990		$	11,278		$	7,355		$	13,165
Payable silver ounces sold (C)		117,430			98,593			169,162			212,882			501,622			571,087			556,582			857,440
Cash cost per payable silver ounce (A÷C)	$	22.36		$	21.07		$	6.75		$	11.31		$	10.67		$	14.77		$	6.74		$	12.09
AISC per payable silver ounce (B÷C)	$	33.88		$	29.28		$	10.72		$	13.71		$	21.88		$	19.75		$	13.21		$	15.35

GREAT PANTHER MINING LIMITED	Page 40
Management’s Discussion & Analysis

INTERNAL CONTROLS OVER FINANCIAL REPORTING

Disclosure controls and procedures within the Company have been designed to provide reasonable assurance that all relevant information is identified to its President and Chief Executive Officer (“CEO”) and its Chief Financial Officer (“CFO”) to ensure appropriate and timely decisions are made regarding public disclosure.

Internal controls over financial reporting have been designed by management under the supervision of, and with the participation of the Company's CEO and CFO, to provide reasonable assurance regarding the reliability of the Company’s financial reporting and its preparation of financial statements for external purposes in accordance with IFRS.

There have been no changes that occurred during the year ended December 31, 2020 that have materially affected, or are reasonably likely to materially affect, internal controls over financial reporting.

Management's Report on Disclosure Controls and Procedures

Management, under the supervision of and with the participation of the Company's CEO and CFO, evaluated the effectiveness of the Company's disclosure controls and procedures and concluded, as at December 31, 2020, that such disclosure controls and procedures were effective.

Management's Report on Internal Controls Over Financial Reporting

Under the supervision and with the participation of our Company's CEO and CFO, management conducted an evaluation of the effectiveness of its internal control over financial reporting, as of December 31, 2020, based on the framework set forth in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO 2013"). Based on this evaluation, management concluded that our internal control over financial reporting was effective as of December 31, 2020.

KPMG LLP, an independent registered public accounting firm, has audited the effectiveness of our internal control over financial reporting as of December 31, 2020, as stated in their report included in the Company’s annual audited consolidated financial statements for the year ended December 31, 2020.

TECHNICAL INFORMATION

The scientific and technical information contained in this MD&A has been reviewed and approved by Neil Hepworth, M.Sc., C. Eng., the Company’s Chief Operating Officer, and Nicholas Winer, FAusIMM, the Company’s Vice President, Exploration each of whom is a Qualified Person, as the term is defined in Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”).

For more detailed information regarding the Company’s material mineral properties, and technical information related thereto, including information concerning associated QA/QC and data verification matters, the key assumptions, parameters and methods used by the Company to estimate Mineral Reserves and Mineral Resources, and for a detailed description of known legal, political, environmental, and other risks that could materially affect the Company’s business and the potential development of the Company’s Mineral Reserves and Resources, please refer to the Company’s most recent AIF and the Tucano Technical Report and the GMC Technical Report, each of which is filed at www.sedar.com or the Company’s most recent reports on Form 40-F and Form 6-K filed with the SEC.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

Certain of the statements and information in this document constitute “forward-looking statements” within the meaning of the United States "Private Securities Litigation Reform Act" of 1995 and “forward-looking information” within Canadian securities laws (collectively, “forward-looking statements”). All statements, other than statements of historical fact, addressing activities, events or developments that the Company expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements are often, but not always, identified by the words “anticipates”, “believes”, “expects”, “may”, “likely”, “plans”, “intends”, “expects”, “may”, “forecast”, “project”, “budgets”, “guidance”, “targets”, “potential”, and “outlook”, or similar words, or statements that certain events or conditions “may”, “might”, “could”, “can”, “would”, or “will” occur. Forward-looking statements reflect the Company’s current expectations and assumptions, and are subject to a number of known and unknown risks, uncertainties and other factors, which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements.

In particular, this MD&A includes forward-looking statements, principally under the section titled Guidance and Outlook, but also elsewhere in this document relating to estimates, forecasts, and statements as to management’s expectations, opinions and assumptions with respect to the future production of gold, silver, lead and zinc; profit, operating costs and cash flows; grade improvements; sales volume and selling prices of products; capital and exploration expenditures, plans, timing, progress, and expectations for the development of the Company’s mines and projects, including its planned exploration and drilling program (metres drilled); plans to evaluate future financing opportunities, including the potential to use the ATM Facility; the timing of production and the cash and total costs of production; sensitivity of earnings to changes in commodity prices and exchange rates; the impact of foreign currency exchange rates; expenditures to increase or determine reserves and resources; sufficiency of available capital resources; title to claims; expansion and acquisition plans; and the future plans and expectations for the Company’s properties and operations. Examples of specific information in this MD&A and or incorporated by reference to the annual audited consolidated financial statements for the year ended December 31, 2020, that may constitute forward-looking statements are:

GREAT PANTHER MINING LIMITED	Page 41
Management’s Discussion & Analysis

Regarding Tucano:

• expectations regarding the mine life for Tucano, the ability to successfully transition to mining higher grades in 2022 and 2023, and the ability to operate Tucano after 2023 based on converting Mineral Resources into Mineral Reserves within the mine plan;

• expectations regarding the ongoing geotechnical control of UCS and related slope stability, the ability to continue mining and the ability to continue to include the UCS pit as part of the Mineral Resource and Mineral Reserve Estimate;

• expectations regarding the production profile for Tucano and its ability to meet the production and cost guidance for 2021;

• expectations of Tucano’s significant exploration potential, including regional, and multiple in-mine and near-mine opportunities with the potential to extend the mine life the mine life by converting Mineral Resources to Mineral Reserves or discovering new Mineral Resources and its plans in 2021 targeting these opportunities;

• plans to continue infill drilling and related expectations and timing regarding the potential for an underground mine and possible plans to make a decision to complete a feasibility study, following completion of an underground targeted drill program;

• expectation that we will be successful in our Federal appeal regarding among other matters the ban on the use of cyanide in respect of our Tucano operations; and

• expectations regarding capital and operating expenditures at Tucano.

Regarding the GMC:

• expectations that the Company will maintain operations while it continues to wait for the results of the CONAGUA evaluation of the technical information submitted for the expansion of the GMC TSF (lifts 18 and 19) and that the Company can successfully extend is current tailings storage capacity using cyclones through to June 2021 while it awaits CONAGUA approval;

• expectations that the current tailings footprint at the GMC can be maintained and can support operations at the GMC until May 2023, which capacity is subject to receipt of further permits and approvals;

• expectations that permits associated with the use and expansion of the TSF at the GMC will be granted in due course and on favourable terms, with no suspension of the GMC operations;

• expectations that additional Mineral Resources may be identified at the GMC, including whether or not such Mineral Resources can be defined as Mineral Reserves, and expectations that these Mineral Resources can be mined without first completing a feasibility study and converting these Mineral Resources into Mineral Reserves;

• expectations that the Company will receive any additional water use and discharge permits required to maintain operations at the GMC; and

• expectations regarding the results of exploration programs at Guanajuato in 2021.

Regarding Topia:

• expectations regarding continued mining and grade recoveries at Topia given the absence of Mineral Reserves;

• expectations that the Phase II TSF can be operated as planned on the basis of positive results of monitoring and the availability of the Phase III TSF, which is expected to be available for use after constructing retaining walls and erosion controls around the base of the facility, without interruption; and

• expectations that the Company will be able to achieve compliance with the voluntary environmental audit program authorized by the Procuraduría Federal de Protección al Ambiente and that upon completion of the compliance program, further reviews will not lead to future suspensions of operations.

Regarding Coricancha:

• expectation that pending proposals for modification of an approved closure plan will conclude with the approval of the MEM, which may also resolve any related fines or penalties;

• expectations regarding the availability of funds to restart production, the timing of any production decision, and the ability to restart a commercially viable mine;

• expectations regarding the costs to restart Coricancha;

• expectations that Coricancha can be restarted and operated on the operating assumptions confirmed by the BSP which are preliminary in nature and are not based on Mineral Resources that have been defined as Mineral Reserves and include Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them;

GREAT PANTHER MINING LIMITED	Page 42
Management’s Discussion & Analysis

• expectations regarding recoveries from Nyrstar in relation to its Coricancha indemnification obligations and the potential funding obligations under bonds posted with the MEM as security for closure and reclamation obligations;

• opportunities relating to optimization of mining, future exploration and the expansion of the mine life indicated under the PEA. which is preliminary in nature and are not based on Mineral Resources that have been defined as Mineral Reserves and include Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them;

• expectations regarding the impact of the Constitutional Case and the consequence of the removal of the injunction; and

• expectations regarding the reclamation process, including the timing and cost to complete required reclamation.

Regarding general corporate matters:

• guidance provided in the Guidance and Outlook section of this MD&A, such as the production, cash cost, AISC, sustaining capital and exploration growth costs as well as the ability of the Company to meet consolidated guidance and individual mine guidance;

• expectations that the Company will be able to generate positive cash flows from operations in 2021 prior to capital investments, exploration and evaluation and development costs, and debt repayment obligations, at current metal prices and at current exchange rates for the BRL and MXN to the USD;

• the Company’s plans to evaluate and pursue acquisition opportunities to complement its existing portfolio;

• expectations that along with its cash flows generated from mining activities, and its current cash and other net working capital, including cash raised from equity and debt financing and the ATM Facility, that it will have sufficient capital resources to fund capital investments and projects and to repay indebtedness and carry out the programs and plans necessary to maintain and grow operations;

• expectations that the Company’s operations will not be impacted materially by government or industry measures to control the spread of COVID-19, including the impact of future orders of federal governments to curtail or cease mining operations in Brazil or Mexico;

• estimates made by management in the preparation of the Company’s financial statements relating to the assessments of provisions for loss and contingent liabilities relating to legal proceedings and the estimation of the carrying value of the Company’s mineral properties;

• estimates concerning reclamation and remediation obligations and the assumptions underlying such estimates;

• expectations that metallurgical, environmental, permitting, legal, title, taxation, socio-economic, political, social, marketing or other issues will not materially affect the Company’s estimates or Mineral Reserves and Mineral Resources or its future mining plans;

• expectations regarding future debt or equity financings, including any sales under the Company’s existing ATM Facility to improve working capital, fund planned capital investments and exploration programs for its operating mines, for acquisitions and to meet scheduled debt repayment obligations;

• expectations regarding access to additional capital to fund further expansion or development plans and general working capital needs; and

• expectations in respect of permitting and development activities.

These forward-looking statements and information reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include:

• the assumptions underlying the Company’s Guidance and Outlook continuing to be accurate;

• continued operations at all three of the Company’s mines for 2021 without significant interruption due to COVID-19 or any other reason;

GREAT PANTHER MINING LIMITED	Page 43
Management’s Discussion & Analysis

• continued operations at Tucano in accordance with the Company’s mine plan, including the expectations regarding the ongoing geotechnical control of UCS where mining re-started in late October;

• the accuracy of the Company’s Mineral Reserve and Mineral Resource estimates and the assumptions upon which they are based;

• the Company’s ability to mine Tucano in accordance with the production schedule set out in the Tucano Technical Report;

• ore grades and recoveries; prices for silver, gold, and base metals remaining as estimated;

• currency exchange rates remaining as estimated;

• capital, decommissioning and reclamation estimates;

• the Company will not be required to further impair Tucano as the current open-pit Mineral Reserves are depleted;

• prices for energy inputs, labour, materials, supplies and services (including transportation);

• national and international transportation arrangements to deliver Tucano’s gold doré to international refineries continue to remain available, despite inherent risks due to COVID-19;

• international refineries that the Company uses continue to operate and refine the Company’s gold doré, and in a timely manner such that the Company is able to realize revenue from the sale of its refined metal in the timeframe anticipated, despite inherent risks due to COVID-19;

• all necessary permits, licenses and regulatory approvals for the Company’s operations are received in a timely manner on favourable terms, including the granting of permits for the GMC TSF in time and without condition to prevent interruption to operations;

• the Company’s ability to comply with environmental, health and safety laws;

• the Topia Phase III TSF will be available when the Phase II TSF is no longer available;

• Tucano will be able to continue to use cyanide in its operations;

• management’s estimates in connection with the assessment of provisions for loss and contingent liabilities relating to legal proceedings will not differ materially from the ultimate loss or damages incurred by the Company;

• the Company will meet its production forecasts and generate the anticipated cash flows from operations for 2021 with the result that the Company will be able to meet its scheduled debt payments when due;

• management’s estimates regarding the carrying value of its mineral properties will not change in future financial periods, such that it would result in further write-downs and consequential impairment loss;

• the accuracy of the information included or implied in the various published technical reports;

• the geological, operational and price assumptions on which these technical reports are based;

• conditions in the financial markets;

• the ability to attract and retain skilled staff;

• the ability to procure equipment and operating supplies and that there are no unanticipated material variations in the cost of energy or supplies;

• the ability to secure contracts for the sale of the Company’s products (metals concentrates and gold doré);

• the execution and outcome of current or future exploration activities;

• the ability to obtain adequate financing for planned activities and to complete further exploration programs;

• the Company’s ability to maintain adequate internal control over financial reporting, and disclosure controls and procedures;

• the ability of contractors to perform their contractual obligations; and

• operations not being disrupted by issues such as workforce shortages, mechanical failures, labour or social disturbances, illegal occupations or mining, seismic events, and adverse weather conditions.

These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements expressed or implied by such forward-looking statements to be materially different. Such factors include, among others, risks and uncertainties relating to:

• open pit mining operations at Tucano have a limited established mine life and the Company may not be able to extend the mine life for Tucano open pit operations beyond 2023 as anticipated or maintain production levels consistent with past production as Mineral Reserves are depleted;

• the Company may experience an increase in COVID-19 infection amongst its employees and contractors even with the adoption of enhanced safety protocols and safeguards;

GREAT PANTHER MINING LIMITED	Page 44
Management’s Discussion & Analysis

• the Company cannot provide assurance that there will not be interruptions to its operations in the future as a result of COVID-19 including: (i) the impact restrictions that governments may impose or the Company voluntarily imposes to address COVID-19 which if sustained or resulted in a significant curtailment could have a material adverse impact on the Company’s production, revenue and financial condition and may materially impact the Company’s ability to meet its production guidance included herein and complete near-mine and regional exploration plans at Tucano; (ii) shortages of employees; (iii) unavailability of contractors and subcontractors; (iv) interruption of supplies and the provision of services from third parties upon which the Company relies; (v) restrictions that governments impose to address the COVID-19 outbreak; (vi) disruptions in transportation services that could impact the Company’s ability to deliver gold doré and metal concentrates to refineries; (vii) restrictions that the Company and its contractors and subcontractors impose to ensure the safety of employees and others; (viii) restrictions on operations imposed by governmental authorities; (ix) delays in permitting; and (x) the Company may not be able to modify its operations in order to maintain production, including the availability to modify work shifts at Tucano, if necessary;

• the Company’s ability to appropriately capitalize and finance its operations, including the risk that the Company is: (i) unable to renew or extend existing credit facilities that become due which may increase the need to raise new external sources of capital; or (ii) unable to access sources of capital which could adversely impact the Company’s liquidity and require the Company to curtail capital and exploration program, and other discretionary expenditures;

• planned exploration activities may not result in the conversion of existing Mineral Resources into Mineral Reserves or discovery of new Mineral Resources;

• the Company may be unable to meet its production forecasts or to generate the anticipated cash flows from operations, and as a result, the Company may be unable to meet its scheduled debt payments when due or to meet financial covenants to which the Company is subject;

• the inherent risk that estimates of Mineral Reserves and Resources may not be accurate and accordingly that mine production and recovery will not be as estimated or predicted;

• gold, silver and base metal prices may decline or may be less than forecasted or may experience unpredictable fluctuations;

• fluctuations in currency exchange rates (including the USD to BRL exchange rate) may increase costs of operations;

• even though the geotechnical consultant has given the approval to restart mining the UCS pit in the last week of October, there is no assurance that the Company will be able to continue mining through to the first quarter of 2022 as planned and be able to access the UCS Mineral Reserves which may adversely impact the Company’s production plans, future revenue and financial condition;

• challenging operational viability of Mexican operations;

• operational and physical risks inherent in mining operations (including pit wall collapses, tailings storage facility failures, environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather) may result in unforeseen costs, shutdowns, delays in production and exposure to liability;

• there is no assurance that the Company will be able to identify or complete acquisition opportunities or, if completed that such acquisition will be accretive to the Company;

• management’s estimates regarding the carrying value of its mineral properties may be subject to change in future financial periods, which may result in further write-downs and consequential impairment loss;

• management’s estimates in connection with the assessment of provisions for loss and contingent liabilities relating to legal proceedings may differ materially from the ultimate loss or damages incurred by the Company;

• potential political and social risks involving Great Panther’s operations in a foreign jurisdiction;

• the potential for unexpected and excessive costs and expenses and the possibility of project delays;

• employee and contractors relations;

• relationships with, and claims by, local communities;

• the Company’s ability to obtain and maintain all necessary permits, licenses and regulatory approvals in a timely manner and on favourable terms, including the granting of permits for the GMC TSF in time and without conditions which if not granted or conditioned could result in an interruption of operations and the ability to maintain those permits, licenses and regulatory approvals and the conditions required thereunder;

GREAT PANTHER MINING LIMITED	Page 45
Management’s Discussion & Analysis

• changes in laws, regulations and government practices in the jurisdictions in which the Company operates, including the potential labour reforms in Mexico which could increase costs of our operations, the impacts of which could be significant;

•  legal restrictions related to mining;

• the inability to operate the Topia Phase II TSF as planned, or to commence stacking at Topia Phase III when Phase II TSF is no longer available;

• diminishing quantities or grades of mineralization as properties are mined;

• operating or technical difficulties in mineral exploration and changes in project parameters as plans continue to be refined;

• acts of foreign governments;

• political risk;

• labour or social unrest;

• illegal mining, including the potential for safety and security risks related thereto;

• uncertainties related to title to the Company’s mineral properties and the surface rights thereon, including the Company’s ability to acquire, economically acquire or maintain/renew, the surface rights to certain of the Company’s exploration and development projects, as well as the surface rights associated with the Company’s operations and facilities;

• unanticipated operational difficulties due to adverse weather conditions, failure of plant or mine equipment and unanticipated events related to health, safety, and environmental matters;

• uncertainty of revenue, cash flows and profitability, the potential to achieve any particular level of recovery, the costs of such recovery, the rates of production and costs of production, where production decisions are not based on any feasibility studies of Mineral Reserves demonstrating economic and technical viability;

• cash flows may vary and the Company’s business may not generate sufficient cash flow from operations to enable it to satisfy its debt and other obligations;

• an unfavourable decision by the MEM with respect to the proposed modification to the Coricancha closure plan;

•  fines, penalties, regulatory actions or charges against the Company’s Coricancha subsidiary arising from the removal of the injunction, including the potential for cumulative fines and penalties outside the control of the Company and its subsidiary; 

• reclamation costs exceed the amounts estimated and exceed the amount which Nyrstar has agreed to reimburse;

• failure of counterparties to perform their contractual obligations, including risk that Nyrstar is unable to fund its indemnity obligations under the agreements related to the acquisition of Coricancha, as such have been amended from time to time, and the guarantors thereunder do not have the necessary financial resources to discharge their obligations under the guarantees;

• litigation risk, including the risk that the Company will not be successful in resolving its existing litigation or that it will become subject to further litigation in the future;

• certain of the Company’s directors and officers may continue to be involved in a wide range of business activities through their direct and indirect participation in corporations, partnerships or joint arrangements, some of which are in the same business as the Company and situations may arise in connection with potential acquisitions and investments where the other interests of these directors and officers may conflict with the interests of the Company;

• deterioration of general economic conditions, including increased volatility and global financial conditions; and

• the Company’s ability to operate as anticipated,

and other risks and uncertainties, including those described in respect of Great Panther in its most recent AIF, and subsequent material change reports filed with the Canadian Securities Administrators available at www.sedar.com and reports on Form 40-F and Form 6-K filed with the SEC and available at www.sec.gov.

This list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements or information. Forward-looking statements or information are statements about the future and are inherently uncertain, and actual achievements of the Company or other future events or conditions may differ materially from those reflected in the forward-looking statements or information.

GREAT PANTHER MINING LIMITED	Page 46
Management’s Discussion & Analysis

The Company’s forward-looking statements and information are based on the assumptions, beliefs, expectations and opinions of management as of the date of this MD&A. The Company will update forward-looking statements and information if and when, and to the extent required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are expressly qualified by this cautionary statement.

Further information can be found in the section entitled “Risk Factors” in the most recent Form 40-F/AIF on file with the SEC and Canadian provincial securities regulatory authorities. Readers are advised to carefully review and consider the risk factors identified in the Form 40-F/AIF for a discussion of the factors that could cause the Company’s actual results, performance and achievements to be materially different from any anticipated future results, performance or achievements expressed or implied by the forward-looking statements. It is recommended that prospective investors consult the complete discussion of the Company’s business, financial condition and prospects that is included in the Form 40-F/AIF.

CAUTIONARY NOTE TO UNITED STATES INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES

As a British Columbia corporation and a “reporting issuer” under Canadian securities laws, the Company is required to provide disclosure regarding its mineral properties in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. In accordance with NI 43-101, the Company uses the terms Mineral Reserves and Resources as they are defined in accordance with the CIM Definition Standards on Mineral Reserves and Resources (the “CIM Definition Standards”) adopted by the Canadian Institute of Mining, Metallurgy and Petroleum.

The SEC has adopted amendments to its disclosure rules to modernize the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the United States Securities Exchange Act of 1934 (the “U.S. Exchange Act”). These amendments became effective on February 25, 2019 (the “SEC Modernization Rules”). The SEC Modernization Rules have replaced the historical property disclosure requirements for mining registrants that were included in SEC Industry Guide 7 (“Guide 7”), which have been rescinded. As a “foreign private issuer” that is eligible to file reports with the SEC pursuant to the multi-jurisdictional disclosure system (the “MJDS”), the Company is not required to provide disclosure on its mineral properties under the SEC Modernization Rules and will continue to provide disclosure under NI 43-101. If the Company ceases to be a foreign private issuer or loses its eligibility to file its annual report on Form 40-F pursuant to the MJDS, then the Company will be subject to the SEC Modernization Rules, which differ from the requirements of NI 43-101.

The SEC Modernization Rules include the adoption of terms describing Mineral Reserves and Mineral Resources that are substantially similar to the corresponding terms under the CIM Definition Standards. As a result of the adoption of the SEC Modernization Rules, SEC now recognizes estimates of Measured Mineral Resources, Indicated Mineral Resources and Inferred Mineral Resources. In addition, the SEC has amended its definitions of Proven Mineral Reserves and Probable Mineral Reserves to be substantially similar to the corresponding CIM Definitions.

United States investors are cautioned that while the terms used in the SEC Modernization Rules are “substantially similar” to CIM Definition Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM Definition Standards.  Accordingly, there is no assurance any Mineral Resources that the Company may report as “Measured Mineral Resources”, “Indicated Mineral Resources” and “Inferred Mineral Resources” under NI 43-101 would be the same had the Company prepared the resource estimates under the standards adopted under the SEC Modernization Rules. United States investors are also cautioned that while the SEC will now recognize “measured mineral resources”, “indicated mineral resources” and “inferred mineral resources”, investors should not assume that any part or all of the mineral deposits in these categories would ever be converted into a higher category of Mineral Resources or into Mineral Reserves. Mineralization described by these terms has a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. Accordingly, investors are cautioned not to assume that any “Measured Mineral Resources”, “Indicated Mineral Resources”, or “Inferred Mineral Resources” that the Company reports are or will be economically or legally mineable.

Further, “Inferred Resources” have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically.  Therefore, United States investors are also cautioned not to assume that all or any part of the inferred resources exist. In accordance with Canadian securities laws, estimates of “Inferred Mineral Resources” cannot form the basis of feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101.

In addition, disclosure of “contained ounces” is permitted disclosure under Canadian regulations; however, the SEC has historically only permitted issuers to report mineralization as in place tonnage and grade without reference to unit measures.

GREAT PANTHER MINING LIMITED	Page 47
Management’s Discussion & Analysis

EX-99.4

Exhibit 99.4

CERTIFICATION

I, Robert Henderson, certify that:

(1)	I have reviewed this Annual Report on Form 40-F of Great Panther Mining Limited for the year ended December 31, 2020.
(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report.
(4)	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting.
(5)	The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the issuer’s auditors and the audit committee of issuer’s board of directors (or persons performing the equivalent functions):
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date: March 11, 2021

By:	“Robert Henderson”
Name:	Robert Henderson
Title:	Chief Executive Officer

EX-99.5

Exhibit 99.5

CERTIFICATION

I, Jim Zadra, certify that:

(1)	I have reviewed this Annual Report on Form 40-F of Great Panther Mining Limited for the year ended December 31, 2020.
(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this report.
(4)	The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15 (e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the issuer and have:
	(a)	designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	(b)	designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	(c)	evaluated the effectiveness of the issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	(d)	disclosed in this report any change in the issuer’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the issuer’s internal control over financial reporting.
(5)	The issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the issuer’s auditors and the audit committee of issuer’s board of directors (or persons performing the equivalent functions):
	(a)	all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the issuer’s ability to record, process, summarize and report financial information; and
	(b)	any fraud, whether or not material, that involves management or other employees who have a significant role in the issuer’s internal control over financial reporting.

Date: March 11, 2021

By:	“Jim Zadra”
Name:	Jim Zadra
Title:	Chief Financial Officer

EX-99.6

Exhibit 99.6

CERTIFICATION
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Robert Henderson, Chief Executive Officer of Great Panther Mining Limited (the “Company”), hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(i) the Annual Report on Form 40-F of the Company for the fiscal year ended December 31, 2020 (the “Annual Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	“Robert Henderson”
Name:	Robert Henderson
Title:	Chief Executive Officer
Date:	March 11, 2021

EX-99.7

Exhibit 99.7

CERTIFICATION
PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Jim Zadra, Chief Financial Officer of Great Panther Mining Limited (the “Company”), hereby certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(i) the Annual Report on Form 40-F of the Company for the fiscal year ended December 31, 2020 (the “Annual Report”) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(ii) the information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

By:	“Jim Zadra”
Name:	Jim Zadra
Title:	Chief Financial Officer
Date:	March 11, 2021

EX-99.8

Exhibit 99.8

 

KPMG LLP Chartered Professional Accountants PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone (604) 691-3000 Fax               (604) 691-3031 Internet       www.kpmg.ca

Consent of Independent Registered Public Accounting Firm

We consent to the use of our reports, each dated March 3, 2021, with respect to the consolidated financial statements of Great Panther Mining Limited (the “Company”) as at and for the years ended December 31, 2020 and 2019 and the effectiveness of internal control over financial reporting as at December 31, 2020, included in this annual report on Form 40-F dated March 11, 2021.

We also consent to the incorporation by reference of such reports in the Registration Statement on Form F-10 (No. 333-231830) of the Company.

/s/ KPMG LLP

Chartered Professional Accountants

March 11, 2021

Vancouver, Canada

EX-99.9

Exhibit 99.9

CONSENT OF ROBERT F. BROWN

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical reports (the “Technical Reports”):

• NI 43-101 Report on the Topia Mine Mineral Resource Estimates, dated February 28, 2019.

• NI 43-101 Technical Report on the Guanajuato Mine Complex Claims and Mineral Resource Estimations for the Guanajuato Mine, San Ignacio Mine, and El Horcón and Santa Rosa Projects, dated February 20, 2017.

• NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato and San Ignacio Operations, Guanajuato State, Mexico, dated December 22, 2020.

and to references to the Technical Reports, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Reports in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated this 11^th day of March, 2021

“Signed Robert Brown”

Robert F. Brown, P. Eng.

EX-99.10

Exhibit 99.10

CONSENT OF RONALD TURNER

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation or summary of the portions prepared by me [Items 1.1, 1.2, 1.3, 1.6, 4.1, 5.0, 6.0, 7.0, 8.0, 9.0, 10.0, 11.0, 12.0, and 14.0 (excluding Item 14.7)] of the following technical report (the “Technical Report”):

• Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex, dated July 13, 2018.

and to references to the Technical Report, or portions thereof prepared by me [Items 1.1, 1.2, 1.3, 1.6, 4.1, 5.0, 6.0, 7.0, 8.0, 9.0, 10.0, 11.0, 12.0, and 14.0 (excluding Item 14.7)], in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”).

Dated the 11^th day of March, 2021

“Signed Ronald Turner”

Ronald Turner, MAusI MM CP(Geo)

EX-99.11

Exhibit 99.11

CONSENT OF DANIEL SAINT DON

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the “Technical Report”):

· NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex” dated July 13, 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 11^th day of March, 2021

“Signed Daniel Saint Don”

Daniel Saint Don, P.Eng.

EX-99.12

Exhibit 99.12

CONSENT OF JEFFREY L. WOODS  

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the “Technical Report”):

· NI 43-101 Technical Report Summarizing the Preliminary Economic Assessment of the Coricancha Mine Complex dated July 13, 2018.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated this 11^th day of March, 2021

“Signed Jeffrey L. Woods”

Jeffrey L. Woods, SME, MMSA

EX-99.13

Exhibit 99.13

CONSENT OF RENO PRESSACCO

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the“Technical Report”):

· Amended and Restated Technical Report on The 2020 Mineral Reserves and Mineral Resources of The Tucano Gold Mine, Amapá State, Brazil dated February 2, 2021.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 11^th day of March, 2021

“Signed Reno Pressacco”

Reno Pressacco, M.Sc.(A), P.Geo.

EX-99.14

Exhibit 99.14  

CONSENT OF TUDOREL CIUCULESCU

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the “Technical Report”):

· Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of The Tucano Gold Mine, Amapá State, Brazil” dated February 2, 2021.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 11^th day of March, 2021

“Signed Tudorel Ciuculescu”

Tudorel Ciuculescu, B.Sc, M.Sc., P. Geo.

EX-99.15

Exhibit 99.15

CONSENT OF FERNANDO A. CORNEJO 

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the “Technical Report”):

· Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil dated February 2, 2021.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 11^th day of March, 2021

“Signed Fernando A. Cornejo”

Fernando A. Cornejo, M.Eng. P.Eng.

EX-99.16

Exhibit 99.16

CONSENT OF NEIL HEPWORTH

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the “Technical Report”):

· Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil dated February 2, 2021.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated this 11^th day of March, 2021

“Signed Neil Hepworth”

Neil Hepworth, M.Sc., CEng MIMMM

EX-99.17

Exhibit 99.17

CONSENT OF CARLOS H. B. PIRES

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the “Technical Report”):

· Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil dated February 2, 2021.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated this 11^th day of March, 2021.

“Signed Carlos H. B. Pires”

Carlos H. B. Pires, B.Sc. Hons, MAusIMM CP. (Geo).

EX-99.18

Exhibit 99.18

CONSENT OF NICHOLAS WINER

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the “Technical Report”):

· Amended and Restated Technical Report on the 2020 Mineral Reserves and Mineral Resources of the Tucano Gold Mine, Amapá State, Brazil dated February 2, 2021.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated the 11^th day of March, 2021

“Signed Nicholas Winer”

Nicholas R. Winer, B.Sc Hons., FAusIMM 

EX-19.19

Exhibit 99.19

CONSENT OF MOHAMMAD NOURPOUR

To:	United States Securities and Exchange Commission
Re:	Great Panther Mining Ltd. (the “Company”) Annual Report on Form 40-F Consent of Expert

This consent is provided in connection with the Company’s annual report on Form 40-F for the year ended December 31, 2020 to be filed by the Company with the United States Securities and Exchange Commission (the “SEC”) and any amendments thereto (the “Annual Report”). The Annual Report incorporates by reference, among other things, the Company’s Annual Information Form for the year ended December 31, 2020 (the “AIF”), and the Company’s Management Discussion and Analysis for the year ended December 31, 2020 (the “MD&A”).

I hereby consent to the use of my name in connection with the quotation, summary or incorporation by reference of the portions prepared by me of the following technical report (the “Technical Report”):

• NI 43-101 Mineral Resource Update Technical Report on the Guanajuato Mine Complex, Guanajuato and San Ignacio Operations, Guanajuato State, Mexico”, dated December 22, 2020.

and to references to the Technical Report, or portions thereof, in the Annual Report, the AIF, the MD&A and the Company’s registration statement on Form F-10 registration statement, as amended (SEC No. 333-231830) (the “Registration Statement”) and to the inclusion and incorporation by reference of the information derived from the Technical Report in the Annual Report, the AIF, the MD&A and the Registration Statement.

Dated this 11^th day of March, 2021

“Signed Mohammad Nourpour”

Mohammad Nourpour, P. Geo.

XML

Document and Entity Information	12 Months Ended
	Dec. 31, 2020 shares
Document and Entity Information
Document Type	40-F
Amendment Flag	false
Document Period End Date	Dec. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Entity Registrant Name	GREAT PANTHER MINING Ltd
Entity Central Index Key	0001300050
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Common Stock, Shares Outstanding	0
Entity Emerging Growth Company	true
Entity Ex Transition Period	false

XML

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 63,396	$ 36,970
Restricted cash	1,024	115
Trade and other receivables (note 6)	15,644	21,756
Inventories (note 7)	33,743	35,120
Other current assets (note 8)	5,675	11,380
Total current assets	119,482	105,341
Non-current assets:
Other receivables (note 6)	11,836	10,155
Mineral properties, plant and equipment (note 9)	110,559	133,810
Exploration and evaluation assets (note 10)	26,334	15,659
Other assets (note 11)	12,209	5,777
Total Assets	280,420	270,742
Current liabilities:
Trade payables and accrued liabilities (note 12 (a))	53,221	49,533
Current portion of borrowings (note 13)	30,933	38,066
Derivative liabilities (note 14)	2,974
Reclamation and remediation provisions - current (note 15)	958	4,927
Total current liabilities	88,086	92,526
Non-current liabilities:
Other liabilities (note 12(b))	6,117	17,078
Borrowings (note 13)	2,465	4,627
Reclamation and remediation provisions (note 15)	67,367	50,647
Deferred tax liabilities (note 23)	4,682	5,365
Total liabilities	168,717	170,243
Shareholders' equity:
Share capital (note 16)	268,872	252,186
Reserves	11,604	17,420
Deficit	(168,773)	(169,107)
Total Equity	111,703	100,499
Total Liabilities and Stockholders Equity	$ 280,420	$ 270,742

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CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
Revenue (note 17)	$ 260,805	$ 198,653
Production costs (note 18)	136,633	157,137
Amortization and depletion	40,305	34,671
Cost of sales	176,938	191,808
Mine operating earnings	83,867	6,845
General and administrative expenses (note 19)	12,926	17,557
Exploration and evaluation expenses (note 20)	10,370	12,787
Mine development costs	2,884	1,487
Change in reclamation and remediation provisions	41	9,752
Exploration, evaluation, and development expenses	13,295	24,026
Impairment of goodwill (note 21)		38,682
Business acquisition costs (note 5)		2,923
Care and maintenance costs	693	795
Operating earnings (loss)	56,953	(77,138)
Finance and other income (expense)
Finance income	347	726
Finance expense	(3,981)	(5,752)
Other income (expense) (note 22)	(49,194)	(8,114)
Total Finance and other (expense) income	(52,828)	(13,140)
Income (loss) before income taxes	4,125	(90,278)
Income tax expense (note 23)	3,791	744
Net income (loss) for the period	$ 334	$ (91,022)
Earnings per share
Earnings (loss) per share - basic (note 16(e))	$ 0.00	$ (0.33)
Earnings (loss) per share- diluted (note 16(e))	$ 0.00	$ (0.33)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net income (loss) for the year	$ 334	$ (91,022)
Other comprehensive income (loss) ("OCI"), net of tax
Foreign currency translation	(7,057)	(6,150)
Change in fair value of financial assets designated as fair value through OCI, net of tax	1	(1)
Total other comprehensive (loss), net of tax	(7,056)	(6,151)
Total comprehensive (loss) for the year	$ (6,722)	$ (97,173)

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Issued capital [member]	Reserve of share-based payments [member]	Reserve of exchange differences on translation [member]	At fair value [member]	Capital reserve [member]	Deficit [member]	Total
Beginning Balance at Dec. 31, 2018	$ 130,912	$ 16,833	$ 3,178	$ (182)	$ 19,829	$ (78,085)	$ 72,656
Beginning Balance (shares) at Dec. 31, 2018	169,165
Shares and warrants issued pursuant to the acquisition of Beadell Resources Limited (note 5)	$ 93,235	2,646			2,646		95,881
Shares and warrants issued pursuant to the acquisition of Beadell Resources Limited (note 5) (shares)	103,593
Shares issued upon conversion of MACA Limited borrowings	$ 10,524						10,524
Shares issued upon conversion of MACA Limited borrowings (shares)	14,078
Share options exercised	$ 702	(196)			(196)		506
Share options exercised (shares)	917
Shares issued for bought deal financing (note 16(f))	$ 15,939						15,939
Shares issued for bought deal financing (note 16(f)) (shares)	23,000
Restricted and deferred share units settled	$ 874	(434)			(434)		440
Restricted and deferred share units settled (shares)	1,188
Share-based compensation		1,726			1,726		1,726
Comprehensive income (loss)			(6,150)	(1)	(6,151)	(91,022)	(97,173)
Ending Balance at Dec. 31, 2019	$ 252,186	20,575	(2,972)	(183)	17,420	(169,107)	100,499
Ending Balance (shares) at Dec. 31, 2019	311,941
Share options exercised	$ 964	(244)			(244)		720
Share options exercised (shares)	1,280
Shares issued for bought deal financing (note 16(f))	$ 14,705						14,705
Shares issued for bought deal financing (note 16(f)) (shares)	40,250
Restricted and deferred share units settled	$ 978	(978)			(978)
Restricted and deferred share units settled (shares)	1,474
Shares issued upon settlement of obligation	$ 39						39
Shares issued upon settlement of obligation (shares)	88
Share-based compensation		2,462			2,462		2,462
Comprehensive income (loss)			(7,057)	1	(7,056)	334	(6,722)
Ending Balance at Dec. 31, 2020	$ 268,872	$ 21,815	$ (10,029)	$ (182)	$ 11,604	$ (168,773)	$ 111,703
Ending Balance (shares) at Dec. 31, 2020	355,033

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net income (loss) for the year	$ 334	$ (91,022)
Items not involving cash:
Amortization and depletion	40,751	35,185
Impairment of goodwill (note 5)		38,682
Change in reclamation and remediation provisions	41	9,752
Loss (gain) on derivative instruments	27,980	(2,354)
Unrealized foreign exchange loss	13,300	2,785
Income tax expense	3,791	744
Share-based compensation	2,462	1,726
Other non-cash items (note 29(a))	6,264	8,462
Interest received	346	686
Interest paid	(3,944)	(5,692)
Loss on settlement of derivative instruments	(21,552)
Income taxes paid	(728)	(440)
Cash flows from (used in) operations before changes in working capital	69,045	(1,486)
Changes in non-cash working capital:
Trade and other receivables	(1,335)	4,568
Reclamation and remediation provisions	(902)
Inventories	(5,063)	10,521
Other current assets	(2,468)	212
Trade payables and accrued liabilities	9,612	(28)
Net cash provided by operating activities	68,889	13,787
Cash flows from investing activities:
Cash restricted for Coricancha environmental bond	(21)	371
Cash received on acquisition of Beadell		1,441
Redemptions of (investments in) short-term deposits and restricted cash, net		25,941
Repayment received prior to Acquisition on loan advanced to Beadell		3,069
Advances to Beadell prior to Acquisition		(354)
Additions to mineral properties, plant and equipment	(41,948)	(25,910)
Net cash provided by (used in) investing activities	(41,969)	4,558
Cash flows from financing activities:
Proceeds from bought deal financing, net (note 16(f))	14,705	15,939
Payment of lease liabilities	(5,774)	(6,190)
Proceeds from borrowings	36,013	32,210
Repayment of borrowings	(44,836)	(48,444)
Proceeds from exercise of share options	720	504
Net cash provided by (used in) financing activities	828	(5,981)
Effect of foreign currency translation on cash and cash equivalents	(1,322)	82
Increase in cash and cash equivalents	26,426	12,446
Cash and cash equivalents, beginning of year	36,970	24,524
Cash and cash equivalents, end of year	$ 63,396	$ 36,970

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NATURE OF OPERATIONS

12 Months Ended

Dec. 31, 2020

NATURE OF OPERATIONS

NATURE OF OPERATIONS

1.       NATURE OF OPERATIONS

Great Panther Mining Limited ("Great Panther" or the "Company”) is a public company listed on the Toronto Stock Exchange (“TSX”) trading under the symbol GPR, and on the NYSE American trading under the symbol GPL and is incorporated and domiciled in Canada. The Company’s registered and records office is located at 1330 – 200 Granville Street, Vancouver, BC.

On March 5, 2019 (the “Acquisition Date”), the Company changed its name from Great Panther Silver Limited to Great Panther Mining Limited following the completion of the acquisition of Beadell Resources Limited (“Beadell”) (the “Acquisition”), a gold mining company that was listed on the Australian Securities Exchange and operated the wholly owned Tucano gold mine (“Tucano”) and related exploration properties in Amapá state, northern Brazil (note 5).

Additionally, the Company has two wholly-owned mining operations in Mexico: the Topia mine (“Topia”), and the Guanajuato Mine Complex (the "GMC”), which comprises the  Guanajuato mine, the San Ignacio mine (“San Ignacio”), and the Cata processing plant. Topia , located in the Sierra Madre Mountains in the state of Durango in northwestern Mexico, produces concentrates containing silver, gold, lead and zinc. The GMC, located in central Mexico, produces a  silver and gold concentrate.

The Company also wholly owns the Coricancha Mine Complex (“Coricancha”), a gold-silver-copper-lead-zinc mine and 600 tonnes per day processing facility in the central Andes of Peru, approximately 90 kilometres east of Lima. Coricancha was acquired by the Company in June 2017, having been placed on care and maintenance by its previous owner in August 2013. The Company filed a positive Preliminary Economic Assessment on Coricancha in May 2018, and in July 2018, commenced a trial stope and bulk sample program ("BSP”) to further de-risk the project. The BSP was completed in June 2019 and the Company continues to evaluate a restart of the Argosy in Canada. The El Horcón property is located 100 kilometres by road northwest of Guanajuato, Santa Rosa is located 15 kilometres northeast of Guanajuato, and the Plomo property is located in Sonora, Mexico. The Argosy property is located in the Red Lake Mining District in northwestern Ontario, Canada.

These consolidated financial statements have been prepared on a going concern basis, which contemplates the continuity of normal business activity and the realization of assets and the settlement of liabilities in the normal course of business.

In March 2020, the World Health Organization declared a global pandemic following the emergence and rapid spread of a novel strain of the coronavirus respiratory disease ("COVID-19"). The Company continues to closely monitor the developments of COVID-19 with a focus on the jurisdictions in which the Company operates and its head office location in Canada. The worldwide spread of COVID-19 is prompting governments to implement different measures to curb the spread of COVID-19 regularly.  During this period of uncertainty, the Company’s priority is to continue to safeguard the health and safety of personnel and host communities, support and enforce government actions to slow the spread of COVID-19 and assess and mitigate the risks to the business continuity. As the extent and duration of the impacts from COVID-19 remain unclear, the Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from those estimates.

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BASIS OF PRESENTATION

12 Months Ended

Dec. 31, 2020

BASIS OF PRESENTATION

BASIS OF PRESENTATION

2.       BASIS OF PREPARATION

These consolidated financial statements have been prepared by management of the Company in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”).

These consolidated financial statements were approved by the Company’s Board of Directors  on March 3, 2021.

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SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

3.      SIGNIFICANT ACCOUNTING POLICIES

The Company has consistently applied the following accounting policies to all periods presented in these consolidated financial statements, except for the new accounting standards newly adopted on January 1, 2020 as described in notes 3(r) below.

(a)     Basis of consolidation

These consolidated financial statements include the accounts of the Company. All material intercompany transactions, balances, revenues, and expenses have been eliminated upon consolidation.

Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee, and has the ability to affect those returns through its power over the investee.

Great Panther Mining Limited is the ultimate parent entity of the group. At December 31, 2020, the principal subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows:

Name	Location	Ownership	Principal Activity
Mina Tucano Ltda (formerly Beadell Brasil Ltda)	Brazil	100%	Mining company
Mineral Mexicana el Rosario S.A. de C.V.	Mexico	100%	Mining company
Great Panther Coricancha S.A.	Peru	100%	Exploration company

(b)     Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis except for financial assets and liabilities that are measured at fair values at each reporting date.

(c)     Foreign currency translation

These consolidated financial statements are presented in US dollars ("USD") which is the Canadian parent company’s presentation currency and functional currency. The functional currency of the Company’s principal subsidiary in Mexico is the USD. The functional currency of the Company’s Brazilian subsidiaries is the Brazilian real (“BRL”).

i)      Transactions and balances

Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in net income.

ii)     Translation of subsidiary results into the presentation currency

The operating results and statements of financial position of the Company’s subsidiaries which have a functional currency that differs from the Company’s presentation currency are translated into the presentation currency as follows:

· Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of the statement of financial position;

· Income and expenses for each statement of comprehensive income are translated at average exchange rates, unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and

· All resulting exchange differences are recognized as a separate component of equity.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognized in a separate component of equity, foreign currency translation reserve. When a foreign operation is sold, such exchange differences are recognized in net income as part of the gain or loss on the sale.

(d)     Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits, and money market instruments, with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Transaction costs are expensed when incurred. Cash and cash equivalents are designated as financial assets at amortized cost.

(e)     Inventories

Inventories consist of:

· Gold bullion, gold in circuit, ore stockpiles, and concentrate inventories which are stated at the lower of weighted average cost and net realizable value. Costs include production costs and amortization and depletion directly attributable to the inventory production process. Net realizable value is the expected selling price for the finished product less the costs to put the product into saleable form and delivery to the selling location.

· Materials and supplies inventory, which includes the cost of consumables used in operations are stated at the lower of weighted average cost and replacement cost which approximates net realizable value. Major spare parts and standby equipment are included in property, plant, and equipment when they are expected to be used over more than one period, if they can only be used in connection with an item of property, plant and equipment.

· Silver bullion coins and bars are recorded at lower of cost and net realizable value.

(f)      Mineral properties, plant and equipment

i)      Mineral properties

Mine development costs are capitalized if management determines that there is sufficient evidence to support probability of generating positive economic returns in the future. Mineral Resources and Reserves are considered to have economic potential when the technical feasibility and commercial viability of extraction is demonstrable considering long-term metal prices. Therefore, prior to capitalizing such costs, management determines whether the following conditions have been met: there is a probable future benefit that will contribute to future cash inflows; the Company can obtain the benefit and control access to it; and the transaction or event giving rise to the benefit has already occurred.

In the event that the Company does not have sufficient evidence to support the probability of generating positive economic returns in the future, mine development costs are expensed to profit or loss. Mine development costs include expenditures associated with accessing Mineral Resources and gaining further information regarding the ore body, whether by means of ramp development, drilling or sampling. Development costs at the GMC are currently expensed.

Producing mineral properties acquired through business acquisitions are recognized at fair value on the acquisition date. Where applicable, the estimated cost of mine reclamation and remediation for the property is included in the cost of mineral properties. 

The Company defers certain related stripping costs during the production phase of its Tucano surface mine operation to future periods. Stripping costs that generate a benefit of improved access to future components of an ore body and meet the definition of an asset are recognized as stripping activity assets. Stripping activity assets are depreciated on a units of production basis over the useful life of the identifiable component of the ore body that becomes more accessible as a result of the stripping activity. Stripping activity assets form part of mineral properties, plant and equipment.

ii)     Plant and equipment

Plant and equipment is originally recorded at cost at the time of construction, purchase, or acquisition, and is subsequently measured at cost less accumulated amortization and impairment. Cost includes all costs required to bring the plant and equipment into a condition and location where it is capable of operating according to its intended use.

Costs incurred for major overhauls of existing equipment or infrastructure are capitalized as plant and equipment and are subject to amortization once they are commissioned. Costs associated with routine maintenance and repairs are charged to operations as incurred.

iii)     Amortization and depletion

The Company's mineral properties in Mexico are depleted using the straight-line method over the estimated remaining life of the mine. The Company’s mineral properties at Tucano are depleted on a units of production basis over the economically recoverable reserves.

Plant and equipment directly related to the Mexico mining operations is amortized using the straight-line method over the shorter of the estimated remaining life of the mine and the estimated remaining useful life of the asset. Plant and equipment directly related to the Tucano mining operations is amortized on a units of production basis over the economically recoverable reserves of the mine concerned, except in the case of assets whose useful life is shorter than the estimated remaining life of the mine, in which case the straight -line method over the remaining useful life of the asset is used.

All other equipment, buildings and furniture and fixtures which do not relate directly to the mining operations are amortized on a straight-line basis over the remaining estimated useful life of the asset, except for land which is not amortized.

When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in profit or loss.

(g)     Exploration and evaluation assets

i)      Exploration properties

Exploration properties represent properties for which the Company has not yet performed sufficient exploration work to determine whether significant mineralization exists. Exploration properties are carried at the cost of acquisition and included in exploration and evaluation assets. Exploration expenditures incurred on such properties are expensed as incurred as exploration expenditures in profit or loss. Examples of exploration expenditures that are expensed under this policy include topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching; and sampling. The Company considers its Coricancha, Santa Rosa, El Horcón, Plomo and Argosy projects to be in this category as at December 31, 2020, and consequently, expenses all costs associated with these projects as they are incurred.

ii)     Evaluation properties

Evaluation properties represent properties for which the Company has identified Mineral Resources or Reserves of such quantity and grade or quality that it has reasonable prospects for economic extraction. Mineral Resources and Reserves are considered to have reasonable prospects for economic extraction when the Company has sufficient information to determine that extraction is viable and feasible at expected long-term metal prices. Expenditures made in relation to evaluating the technical feasibility and commercial viability of extracting a Mineral Resource or Reserve are capitalized and included in exploration and evaluation assets. Evaluation expenditures include the costs of drilling, sampling and other costs related to defining and delineating the mineral deposit.

When the technical feasibility and commercial viability of the extraction of Mineral Resources or Reserves associated with the Company’s evaluation properties are demonstrable and management has made a decision to proceed with development, the capitalized costs associated with evaluation assets are reclassified from exploration and evaluation assets to mineral properties. They are tested for impairment at that time.

iii)    Amortization and depletion

Exploration and evaluation assets are not subject to depletion or amortization, but rather are tested for impairment when circumstances indicate that the carrying value may not be recoverable.

(h)     Leased assets

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

· The contract involves the use of an identified asset - this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;

· The Company has the right to obtain substantially all the economic benefits from use of the asset throughout the period of use; and

· The Company has the right to direct the use of the asset. The Company has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used.

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use assets are subsequently depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of the future economic benefits. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company has elected to apply the practical expedient not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

(i)      Impairment of non-financial assets

Exploration and evaluation assets are tested for impairment when circumstances indicate that the carrying value may not be recoverable. When facts and circumstances suggest that the carrying amount of an asset exceeds its recoverable amount, the Company performs an impairment test by comparing the recoverable amount to the carrying amount of the relevant exploration and evaluation property. When the carrying value exceeds the recoverable amount of the relevant exploration and evaluation property, an impairment charge is recorded and the property is written down to its recoverable amount. In addition, exploration and evaluation assets are tested for impairment at the date they are transferred to mineral properties, plant and equipment.

The Company’s mineral properties, plant and equipment are reviewed for any indication of impairment at each financial reporting date or at any time if an indicator of impairment is considered to exist. If any such indicators exist, an estimate of the recoverable amount is undertaken, being the higher of an asset’s fair value less costs of disposal and the asset’s value in use. If the asset’s carrying amount exceeds its recoverable amount then an impairment loss is recognized in net income or loss for the period, and the carrying value of the asset on the statement of financial position is reduced to its recoverable amount. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. Fair value of mineral properties is generally determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset, including any expansion prospects, discounted by an appropriate pre-tax discount rate to arrive at a net present value.

Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Value in use is determined by applying assumptions specific to the Company’s continued use which includes future development. As such, these assumptions may differ from those used in calculating fair value.

In testing for indicators of impairment and performing impairment calculations, assets are grouped into cash-generating units, which are identified as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. The estimates of future discounted cash flows are subject to risks and uncertainties including estimated production, grades, recoveries, future metals prices, discount rates, exchange rates and operating costs.

Non-financial assets other than goodwill that have suffered an impairment are evaluated for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. When a reversal of a previous impairment is recorded, the reversal amount is adjusted for depreciation that would have been recorded had the impairment not been recorded.

(j)      Share-based compensation

Equity-settled share-based compensation arrangements such as the Company’s stock option plan, restricted share unit plan, and deferred share unit plan are measured at fair value at the date of grant and recorded within equity. The restricted share unit plan includes restricted share units without performance-based criteria and performance share units, where the number of units that ultimately vest is dependent on the relative performance of the Company compared with a peer group of companies. The fair value at grant date of all share-based compensation is recognized as compensation expense over the vesting period, with a corresponding credit to shareholders’ equity. The amount recognized as an expense is adjusted to reflect share options forfeited. The Company estimates the fair value of share options granted using the Black-Scholes option pricing model. The Company estimates the fair value of equity settled performance share units (“PSU”) using a Monte Carlo valuation model at the date of grant.

(k)     Revenue recognition

The Company recognizes revenue from the sale of precious metals, consisting of metal concentrates and refined gold, when the customer obtains control.

For the metal concentrates sales, the customer obtains control upon delivery at the customer’s designated warehouse. The amount of revenue recorded upon initial recognition is based on the forward metal prices at that time and the estimated metal content. The payment terms are based on the individual customer contracts. For provisional payments, terms are typically 15 days from the date of provisional invoice, and for final payments, terms are typically five business days after the final weights, assays and prices are known and invoiced. Adjustments related to changes in metal prices and metal content up to the final settlement are recorded in revenue.

For the refined gold, the customer obtains control when the refined gold has been physically delivered, which is also the date when title has passed to the buyer and the Company has issued an invoice pursuant to a transaction confirmation that fixes the quantity and price of the gold for each delivery. The amount of revenue recorded upon delivery is based on this transaction confirmation. The Company has no significant continuing involvement after delivery and no adjustments to revenue are made subsequent to initial recognition.

(l)      Reclamation and remediation provisions

The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Company recognizes the cost of future reclamation and remediation as a liability when: the Company has a legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and, a reasonable estimate of the obligation can be made. The liability is measured initially by discounting expected costs to the net present value using pre-tax rates and risk assumptions specific to the liability. The resulting cost is capitalized to the carrying value of the related assets or expensed to profit or loss where there is no carrying value of the related assets, or where the cost is not recoverable. In subsequent periods, the liability is adjusted for accretion of the discount with the offsetting amount charged to the statement of comprehensive income as a finance cost. Any change in the amount or timing of the underlying cash flows is adjusted to the carrying value of the liability, with the offsetting amount recorded as an adjustment to the reclamation and remediation provision cost included in mineral properties or exploration, evaluation and development expenses. Any amount charged to the carrying value of assets is depreciated over the remaining life of the relevant assets.

It is reasonably possible that the ultimate cost of remediation and reclamation could change in the future due to uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities, changes in remediation technology and changes in discount rates. The Company reviews its reclamation and remediation provision at least annually and as evidence becomes available indicating that its expected reclamation and remediation costs may have changed. Any such changes in costs could materially impact the future amounts recorded as reclamation and remediation provision.

(m)    Financial instruments

The Company’s financial instruments consist of cash and cash equivalents, short-term deposits, marketable securities, trade and other receivables, loan receivable, restricted cash, trade and other payables, as well as derivative instruments.

i)      Classification

The Company determines the classification of its financial instruments at initial recognition. Upon initial recognition, a financial asset is classified as measured at: amortized cost, fair value through profit and loss (“FVTPL”), or fair value through other comprehensive income (loss) (“FVOCI”). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial liability is classified as measured at amortized cost or FVTPL.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVTPL:

· it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

· its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL:

· it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

· its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

An equity investment that is held for trading is measured at FVTPL. For other equity investments that are not held for trading, the Company may irrevocably elect to designate them as FVOCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has elected to measure them at FVTPL.

ii)     Measurement

Initial measurement

On initial recognition, all financial assets and financial liabilities are measured at fair value adjusted for directly attributable transaction costs except for financial assets and liabilities classified as FVTPL, in which case the transaction costs are expensed as incurred.

Subsequent measurement

The following accounting policies apply to the subsequent measurement of financial instruments:

Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value. Interest income is calculated using the effective interest rate method; foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Impairment of financial instruments

The Company assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired.

For financial assets measured at amortized cost, and debt investments at FVOCI, the Company applies the expected credit loss model.

(n)     Provisions

Provisions are liabilities that are uncertain in time or amount. The Company records a provision when (i) the Company has a present obligation (legal or constructive) as a result of a past event; (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (iii) a reliable estimate can be made of the amount of the obligation.  Provisions are reviewed at each reporting date and adjusted to reflect management’s current best estimate of the cost to settle the present obligation. Where discounting has been used, the carrying amount of a provision is accreted to reflect the passage of time and the accretion expense is included in finance costs in the consolidated statements of income (loss).

(o)     Income taxes

Income tax is recognized in net income or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized directly in equity.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantially enacted at the reporting date.

Deferred tax assets and liabilities are determined based on differences between the financial statement carrying values of existing assets and liabilities and their respective income tax bases (temporary differences), and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to be in effect when the temporary differences are likely to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is included in net income in the period in which the change is substantively enacted. The amount of deferred tax assets recognized is limited to the amount that is, in management’s estimation, probable that future taxable profits will be available against which the asset can be utilized.

Deferred tax assets and liabilities are offset (i) when there is a legally enforceable right to set off current tax assets against current tax liabilities, (ii) when they relate to income taxes levied by the same taxation authority, and (iii) the Company intends to settle its current tax assets and liabilities on a net basis.

(p)     Earnings per share

Earnings per share is calculated based on the weighted average number of shares outstanding during the period. The Company follows the treasury stock method for the calculation of diluted earnings per share. Under this method, dilution is calculated based upon the net number of common shares issued should “in-the-money” options and warrants be exercised and the proceeds be used to repurchase common shares at the average market price during the period. Dilution from convertible securities is calculated based on the number of shares to be issued after taking into account the reduction of the related after-tax interest expense.

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed in a manner similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from restricted and deferred stock units and the assumed exercise of share options and warrants, if dilutive.

(q)     Segment reporting

The Company has identified operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer and the executive management team (the chief operating decision-maker – “CODM”) in assessing performance and in determining allocation of resources. The CODM considers the business from both a geographic and product perspective and assesses the performance of the operating segments based on measures such as net property, plant and equipment, as well as operating results. All operating segments’ operating results are reviewed regularly by the Company’s senior management to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. The Company has determined operating segments based on this information.

Segment results that are reported to senior management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items are comprised mainly of corporate office expenses.

(r)     New and revised accounting standards not yet effective

i)    Property, plant and equipment - proceeds before intended use

On May 14, 2020, the IASB issued a narrow scope amendment to IAS 16, Property, Plant and Equipment: Proceeds before Intended Use.  The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and the related cost in profit or loss.  The effective date of the amendment is for annual periods beginning on or after January 1, 2022.  The amendment must be applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the consolidated financial statements in which the amendment is first applied.  The Company will adopt this narrow scope amendment on the date it becomes effective.  The amendment is not currently applicable to the Company; however, it may be applicable in the future should the Company receive proceeds from selling items produced prior to an asset being ready for its intended use.

ii)    Interest rate benchmark reform

On August 27, 2020, the IASB issued 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) with amendments that address issues that might affect financial reporting related to financial instruments and hedge accounting resulting from the reform of an interest rate benchmark, including its replacement with alternative benchmark rates.  The amendments are effective for annual periods beginning on or after January 1, 2021, and are to be applied retrospectively.  The Company is currently assessing the impact of the amendments on the Company's consolidated financial statements.

(s)     Accounting standards issued and adopted

i)    IFRS 3, Business Combinations

In October 2019, the IASB issued amendments to the definition of a business in IFRS 3 – Business Combinations (“IFRS 3”). The amendments to IFRS 3 are effective for annual reporting periods beginning on or after January 2020. The modifications are intended to assist entities in determining whether a transaction should be accounted for as a business combination or as an asset acquisition. The modifications are effective for acquisition transactions on or after January 1, 2020.  Effective January 1, 2020, the Company prospectively adopted the new IFRS 3 accounting standard which did not have an impact on the consolidated financial statements for the year ended December 31, 2020.

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SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

12 Months Ended

Dec. 31, 2020

SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

4.      SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGMENTS

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions which affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period.

Estimates are based on historical experience and other factors considered to be reasonable, and are reviewed on an ongoing basis. Revisions to estimates and the resulting effects on the carrying amounts of the Company’s assets and liabilities are accounted for prospectively.

The Company has identified the following areas where significant estimates, assumptions and judgments are made and where actual results may differ from the estimates under different assumptions and conditions and may materially affect financial results of the Company reported in future periods.

(a) Resource and reserve estimation

The accuracy of resource and reserve estimates is a function of the quantity and quality of available data and assumptions made and judgments used in the geological and engineering interpretation and may be subject to revision based on various factors. Changes in resource estimates may impact the carrying value of a mineral property, plant and equipment, the calculation of amortization and depletion, the capitalization of mine development costs, and the timing of cash flows related to reclamation and remediation provision.

(b) Useful lives of mineral properties, plant and equipment

The Company estimates the remaining life of its producing mineral properties on an annual basis using a combination of quantitative and qualitative factors including historical results, Mineral Resource and Reserve estimates, and management’s intent to operate the property. The estimated remaining life of the producing mineral property is used to calculate amortization and depletion expense, assess impairment charges and the carrying values of assets, and forecast the timing of the payment of reclamation and remediation costs.

There are numerous uncertainties inherent in the estimation of the remaining lives of the producing mineral properties, and assumptions that are valid at the time of estimation may change significantly when new information becomes available. Changes in the forecast prices of commodities, exchange rates, or production costs may change the economic status of the Mineral Resource and Reserves, estimates, economic potential of production from areas not included in the National Instrument 43‑101 (“NI 43‑101”) reports, and management’s intent to operate a property, and may ultimately have a material impact on the estimated remaining lives of the properties.

(c) Reclamation and remediation provision

The amounts recorded for reclamation and remediation provisions are based on estimates prepared by third-party environmental specialists, if available, or by persons within the Company who have the relevant skills and experience. These estimates are based on remediation activities required by environmental laws, the expected timing of cash flows, and the pre-tax risk-free interest rates on which the estimated cash flows have been discounted. These estimates also include an assumption of the rate at which costs may inflate in future periods. Actual results could differ from these estimates. The estimates require extensive judgment about the nature, cost and timing of the work to be completed, and may change with future changes to costs, environmental laws and regulations and remediation practices.

(d) Review of asset carrying values and assessment of impairment

The Company reviews each asset or cash generating unit at each reporting date to determine whether there are any indicators of impairment. If any such indication exists, a formal estimate of recoverable amount is performed and an impairment loss is recognized to the extent that the carrying amount exceeds the recoverable amount. The recoverable amount of an asset or cash generating unit is measured at the higher of fair value less costs to sell and value in use.

The determination of fair value less costs of disposal and value in use requires management to make estimates and assumptions about expected production and sales volumes, metal prices, ore tonnage and grades, recoveries, operating costs, reclamation and remediation costs, future capital expenditures and appropriate discount rates for future cash flows. The estimates and assumptions are subject to risk and uncertainty, and as such there is the possibility that changes in circumstances will alter these projections, which may impact the recoverable amount of the assets. In such circumstances, some or all of the carrying value of the assets may be further impaired or the impairment charge reduced with the impact recorded in profit or loss.

(e) Income taxes and recoverability of deferred tax assets

In assessing the probability of realizing income tax assets, the Company makes estimates related to expected future taxable income, potential tax planning opportunities, estimated timing of reversals of temporary differences, and the likelihood that tax positions taken will be sustained upon examination by applicable tax authorities. Where applicable tax laws and regulations are unclear or subject to ongoing varying interpretations, it is reasonably possible that changes in these estimates can occur, which may materially affect the amounts of income tax assets recognized. In addition, future changes in tax laws could limit the Company’s ability to realize the benefits from deferred tax assets.

(f) Determination of functional currencies

The determination of an entity’s functional currency is a matter of judgment based on an assessment of the specific facts and circumstances relevant to determining the primary economic environment of each entity within the group. The Company reconsiders the functional currencies used when there is a change in events or conditions considered in determining the primary economic environment of each entity.

(g) Leases

The determination of whether a contract contains a lease under IFRS 16 is a matter of judgment based on the assessment of the specific terms and conditions in the contract.

(h) Purchase price accounting

Significant judgments were made by management on the purchase price accounting in arriving at estimated acquisition date fair values for the net assets acquired and liabilities assumed on the Acquisition of Beadell.

(i) Contingencies

Significant judgments were made by management in the determinations of the likelihood of loss for provisions and contingent liabilities related to the litigation and matters assumed upon the Acquisition (note 27(b)(iv)) and acquisition of Coricancha (note 27(b)(iii)).

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ACQUISITION OF BEADELL RESOURCES LIMITED

12 Months Ended

Dec. 31, 2020

ACQUISITION OF BEADELL RESOURCES LIMITED

ACQUISITION OF BEADELL RESOURCES LIMITED

5.       ACQUISITION OF BEADELL RESOURCES LIMITED

On the Acquisition Date, the Company acquired 100% of the issued and outstanding common shares of Beadell through the issuance of 103,593,043 Great Panther common shares to Beadell shareholders, representing approximately 38% of the post-Acquisition issued and outstanding Great Panther shares.  The share exchange represented a ratio of 0.0619 Great Panther shares for each Beadell share (the “Exchange Ratio”).  Additionally, the Company issued 9,749,727 share purchase warrants at an exercise price of $1.317 per share to replace the warrants previously issued by Beadell.  The number of Company share purchase warrants issued were equal to the number of the outstanding Beadell warrants on the Acquisition Date multiplied by the Exchange Ratio, at a price adjusted in accordance with the Exchange Ratio, on the same terms and conditions as the original warrants.

The Acquisition is a business combination and has been accounted for in accordance with the measurement and recognition provisions of IFRS 3, Business Combinations.  IFRS 3 requires that the purchase consideration be allocated to the assets acquired and liabilities assumed in a business combination based upon their estimated fair values at the date of acquisition. Acquisition costs consisting of advisory, legal, accounting, valuation, and other professional or consulting fees directly associated with the transaction to acquire Beadell of $2,923 were expensed as incurred during the year ended December 31, 2019. 

On December 5, 2018, prior to the Acquisition, the Company entered into a loan agreement pursuant to which the Company advanced Beadell and its subsidiary, Mina Tucano Ltda (formerly Beadell Brasil Ltda) (“Mina Tucano”), as joint and several borrowers, a non-revolving term loan in the principal amount of $5,000 for their general working capital requirements.  Prior to the Acquisition, the Company received partial repayment of $3,000 of the principal amount advanced and payment of accrued interest of $69, and the remaining principal balance of $2,000 was paid on July 11, 2019.  Additionally, prior to the Acquisition, the Company also made a cash advance to Beadell of $354 in February 2019.  The total outstanding balance at Acquisition of $2,370 (after adjusting for foreign exchange differences) was considered part of the exchange in the business combination and was therefore included in the liabilities assumed on the Acquisition Date.

Pursuant to IFRS 3, adjustments made within the measurement period of one year from the Acquisition Date, which ends on March 5, 2020, are recognized as if the accounting for the business combination had been completed at the acquisition date.  In March 2020, the Company received a mineral resource and reserve estimate report for Tucano prepared by independent mining consultant firm, Roscoe Postle & Associates (“RPA”). The report is dated effective September 30, 2019 and provides updated information regarding the resources and reserves at Tucano that was not available at the initial reporting of the preliminary purchase price allocation at March 31, 2019.  The Company also received an updated reclamation obligation report for Tucano during the fourth quarter of 2019. The revised resource and reserve estimates presented in the report by RPA and the revised reclamation obligation gave rise to adjustments to amounts recognized for net identifiable assets and liabilities compared to those previously recognized on acquisition on a preliminary basis.  The most significant changes to the purchase price allocation includes a decrease in mineral property, plant and equipment of $29,492, an increase in the reclamation and remediation provision of $6,534, an increase in deferred income tax liability of $3,457, and an adjustment to increase goodwill by $38,682.  

The following table summarizes the preliminary allocation of the purchase price to the assets acquired and liabilities assumed based on the preliminary estimates of fair value and the adjustments made pursuant to the revised estimate of mineral resources and reserves and reclamation obligation, at the Acquisition Date to arrive at the final purchase price allocation:

	Preliminary				Definitive
	Purchase Price				Purchase Price
	Allocation		Adjustments		Allocation
103,593,043 common shares issued (1)	$	93,235	$	—	$	93,235
9,749,727 warrants issued		2,646		—		2,646
Consideration		95,881		—		95,881
Cash and cash equivalents		1,441		—		1,441
Trade and other receivables		26,733		(124)		26,609
Inventories		36,820		1,354		38,174
Other current assets		1,227		(352)		875
Restricted cash		61		—		61
Mineral properties, plant and equipment		143,147		(29,492)		113,655
Right-of-use assets		18,397		—		18,397
Exploration and evaluation assets		309		—		309
Other receivables – non-current		735		125		860
Trade payables and accrued liabilities		(29,024)		(126)		(29,150)
Borrowings		(69,473)		—		(69,473)
Lease liabilities		(18,397)		—		(18,397)
Deferred income tax liability		—		(3,457)		(3,457)
Great Panther loan advance		(2,370)		—		(2,370)
Reclamation and remediation provision		(6,375)		(6,534)		(12,909)
Other liabilities and provisions		(7,350)		(76)		(7,426)
Net identifiable assets acquired		95,881		(38,682)		57,199
Goodwill		—		38,682		38,682
	$	95,881	$	—	$	95,881

(1) The common shares were valued at the closing price of the Company’s shares on the NYSE American on March 5, 2019 was ($0.90).

The report by RPA identified a significant difference in the amount of economically recoverable resources and reserves acquired and as a result of this difference, the fair value of the mineral properties was re-measured. The decrease in fair value for the mineral properties and recognition of a higher reclamation obligation resulted in goodwill being recognized. The goodwill was determined to be impaired during the quarter ended March 31, 2019.

The Company’s reported consolidated statement of profit (loss) for the nine months ended September 30, 2019 as originally reported has been adjusted as if the adjustment to the purchase price allocation and the accounting for the business combination had been completed at the Acquisition Date.  The following table details amounts previously reported for the nine months ended September 30, 2019 together with the profit or loss adjustments arising on the finalization of the accounting for the business combination:

	Preliminary				Definitive
	Purchase Price				Purchase Price
	Allocation			Adjustments	Allocation
Revenue	$	132,974	$	—	$	132,974
Cost of sales
Production costs		97,051		2,496		99,547
Amortization and depletion		21,238		61		21,299
Share-based compensation		238		—		238
General and administrative expenses		8,574		—		8,574
Exploration, evaluation, and development expenses		10,148		—		10,148
Impairment of goodwill		—		38,682		38,682
Business acquisition costs		2,863		—		2,863
Care and maintenance costs		599		—		599
Finance and other expense		12,280		808		13,088
Loss before income taxes		(20,017)		(42,047)		(62,064)
Income tax expense		891		—		891
Net loss for the year	$	(20,908)	$	(42,047)	$	(62,955)

The revenue and net loss of Beadell since the Acquisition Date included in the Consolidated Statement of Comprehensive Income (Loss) for the year ended December 31, 2019 are disclosed in note 30.

The revenue and net loss of the combined entity for the year ended December 31, 2019 as though the Acquisition had been as at January 1, 2019 would be $228,691 and $96,124, respectively.

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TRADE AND OTHER RECEIVABLES

12 Months Ended

Dec. 31, 2020

TRADE AND OTHER RECEIVABLES

TRADE AND OTHER RECEIVABLES

6.      TRADE AND OTHER RECEIVABLES

	December 31,		December 31,
	2020		2019
Current
Trade receivables	$	2,011	$	4,605
Value-added tax receivable		3,839		4,894
PIS / COFINS - Brazil (a)		8,732		10,889
Judicial deposits - Brazil		302		389
Other		760		979
		15,644		21,756
Non-Current
PIS / COFINS - Brazil (a)		9,058		8,988
Income taxes recoverable - Brazil		2,764		1,152
Other		14		15
	$	11,836	$	10,155

(a)    PIS/COFINS

The PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security) are Brazilian federal taxes that apply to all companies in the private sector. PIS is a mandatory employer contribution to an employee savings initiative, and COFINS is a contribution to finance the social security system.  Companies are required to calculate and remit PIS and COFINS based on monthly gross revenues.  The Company’s Brazilian gold sales are zero-rated for PIS/COFINS purposes; however, the current legislation allows for input tax credits to offset the amounts due by applying rates of 1.65% for PIS and 7.65% for COFINS, respectively, to some of the purchases in Brazil.  As such, the Company has PIS/COFINS credits recorded as receivables.

The Company continues to pursue the refund of its PIS/COFINS receivables.  To the extent the Company is unable to receive refunds for all of its PIS/COFINS assets, the Company expects that PIS/COFINS assets will be recovered through the Company generating future Brazilian federal tax liabilities, which can be offset against the Company’s PIS/COFINS assets if the Company elects to do so.

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INVENTORIES

12 Months Ended

Dec. 31, 2020

INVENTORIES

INVENTORIES

7.      INVENTORIES

	December 31,		December 31,
	2020		2019
Concentrate	$	578	$	968
Ore stockpiles		11,562		15,417
Materials and supplies		18,538		15,400
Gold in circuit		1,266		902
Gold bullion		1,794		2,430
Silver bullion		5		3
	$	33,743	$	35,120

During the year ended December 31, 2020, the inventory recognized as cost of sales was $161.8 million (2019 – $154.1 million), which includes production costs and amortization and depletion directly attributable to the inventory production process.

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OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2020

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS

8.      OTHER CURRENT ASSETS

	December 31,		December 31,
	2020		2019
Prepaid expenses and deposits	$	3,569	$	818
Reimbursement rights (note 11(a))		1,918		6,465
Derivative assets (note 14)		—		3,454
Marketable securities		1		1
Other current assets		187		642
	$	5,675	$	11,380

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MINERAL PROPERTIES, PLANT AND EQUIPMENT

12 Months Ended

Dec. 31, 2020

MINERAL PROPERTIES, PLANT AND EQUIPMENT

MINERAL PROPERTIES, PLANT AND EQUIPMENT

9.      MINERAL PROPERTIES, PLANT AND EQUIPMENT

									Furniture,
	Mineral		Mineral						fixtures
	properties –			properties –	Plant and		Land and		and		Right-of-use
	depletable		non depletable		equipment		buildings		equipment		assets		Total
Cost
Balance, January 1, 2020	$	58,237	$	43,186	$	83,335	$	22,548	$	5,636	$	22,685	$	235,627
Additions		32,754		—		3,499		5,692		3		890		42,838
Change in remediation provision		3,546		—		(342)		—		—		—		3,204
Foreign exchange translation difference		(6,375)		(9,317)		(10,411)		(4,443)		(132)		(4,670)		(35,348)
Balance, December 31, 2020	$	88,162	$	33,869	$	76,081	$	23,797	$	5,507	$	18,905	$	246,321
Accumulated depreciation
Balance, January 1, 2020	$	38,964	$	—	$	44,769	$	5,726	$	4,549	$	7,809	$	101,817
Amortization and depletion		15,790		—		15,435		4,508		430		4,881		41,044
Foreign exchange translation difference		(1,129)		—		(3,286)		(891)		(46)		(1,747)		(7,099)
Balance, December 31, 2020	$	53,625	$	—	$	56,918	$	9,343	$	4,933	$	10,943	$	135,762
Carrying value, December 31, 2020	$	34,537	$	33,869	$	19,163	$	14,454	$	574	$	7,962	$	110,559
Cost
Balance, January 1, 2019	$	36,066	$	—	$	35,184	$	2,573	$	4,987	$	1,150	$	79,960
Acquisition of Beadell		3,676		46,608		46,726		16,145		500		18,397		132,052
Additions		16,346		—		4,401		4,940		223		4,498		30,408
Change in remediation provision		2,996		—		30		—		—		—		3,026
Disposals		—		—		(185)		(3)		(44)		(33)		(265)
Foreign exchange translation difference		(847)		(3,422)		(2,281)		(1,107)		(30)		(1,327)		(9,554)
Balance, December 31, 2019	$	58,237	$	43,186	$	83,335	$	22,548	$	5,636	$	22,685	$	235,627
Accumulated depreciation
Balance, January 1, 2019	$	32,051	$	—	$	27,593	$	1,653	$	4,121	$	—	$	65,418
Amortization and depletion		6,820		—		17,434		4,095		464		7,878		36,691
Disposals		—		—		(185)		—		(41)		(6)		(232)
Foreign exchange translation difference		93		—		(73)		(22)		5		(63)		(60)
Balance, December 31, 2019	$	38,964	$	—	$	44,769	$	5,726	$	4,549	$	7,809	$	101,817
Carrying value, December 31, 2019	$	19,273	$	43,186	$	38,566	$	16,822	$	1,087	$	14,876	$	133,810

(a)      Changes in estimate

i)      Updated Mineral Resource and Reserve estimates for 2020

On March 9, 2020, the Company provided an update on the Mineral Resource for the GMC, with effective dates of October 31, 2019, and July 31, 2019, for the Guanajuato Mine and San Ignacio, respectively.  Management reviewed the remaining useful life of the GMC and determined that it remains at two years as at December 31, 2019, unchanged from the previous estimate.

On March 9, 2020, the Company provided an update on the Mineral Resource and Reserves for Tucano, with an effective date of September 30, 2019, following which management reviewed the remaining useful life of Tucano. The estimate of the useful life of Tucano was determined to be two years as at December 31, 2019.

ii)     Updated Mineral Resource and Reserve estimates for 2021

On November 23, 2020, the Company provided an update on the Mineral Resource for the GMC, with an effective date of July 31, 2020. The estimate of the useful life of the GMC was determined to be two years as at December 31, 2020. The estimate of the useful life of the GMC increased by one year compared to the previous estimate.

On December 15, 2020, the Company provided an update on the Mineral Resource and Reserves for Tucano, with an effective date of September 30, 2020, following which management reviewed the remaining useful life of Tucano.  The estimate of the useful life of Tucano was determined to be three years as at December 31, 2020. The estimate of the useful life of Tucano increased by two years compared to the previous estimate.

(b)     Leases

i)     Right-of-use assets

	Mining		Power				Office  &		Land
	equipment		generators		Vehicles		Communication		easements		Total
Balance, January 1, 2020	$	7,376	$	5,035	$	1,095	$	658	$	712	$	14,876
Additions		801		—		—		89		—		890
Amortization and depletion		(2,663)		(1,437)		(378)		(266)		(137)		(4,881)
Foreign exchange translation difference		(1,589)		(1,090)		(241)		(3)		—		(2,923)
Balance, December 31, 2020	$	3,925	$	2,508	$	476	$	478	$	575	$	7,962

	Mining		Power				Office &		Land
	equipment		generators		Vehicles		Communication		easements		Total
Balance, January 1, 2019	$	—	$	—	$	—	$	881	$	269	$	1,150
Acquisition of Beadell		8,402		7,732		1,923		340		—		18,397
Additions		3,853		57		—		—		588		4,498
Disposals		—		—		—		(27)		—		(27)
Amortization and depletion		(4,244)		(2,264)		(707)		(518)		(145)		(7,878)
Foreign exchange translation difference		(635)		(490)		(121)		(18)		—		(1,264)
Balance, December 31, 2019	$	7,376	$	5,035	$	1,095	$	658	$	712	$	14,876

ii)     Lease liabilities

	December 31,		December 31,
	2020		2019
Maturity analysis – contractual undiscounted cash flows
Less than one year	$	5,855	$	6,707
One to five years		5,475		12,558
More than five years		98		123
Total undiscounted lease liabilities		11,428		19,388
Lease liabilities in the Consolidated Statement of Financial Position		11,221		17,986
Current (note 12 (a))		5,296		5,499
Non-current (note 12 (b))	$	5,925	$	12,487

iii)     Amount recognized in the Consolidated Statements of Comprehensive Income

	2020		2019
Interest on lease liabilities	$	1,332	$	1,564
Variable lease payments not included in the measurement of lease liabilities		49,723		43,889
Expenses relating to short-term leases		15,564		12,953
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets		11		13

Expenses relating to short-term leases for the year ended December 31, 2020, of $15.6 million (2019 - $13.0 million) include costs for mining services and haulage in the amount of $14.5 million (2019 - $11.9 million). The  Company has elected not to separate the lease component from the non-lease component for short-term leases that have a lease term of less than one year.

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EXPLORATION AND EVALUATION ASSETS

12 Months Ended

Dec. 31, 2020

EXPLORATION AND EVALUATION ASSETS

EXPLORATION AND EVALUATION ASSETS

10.      EXPLORATION AND EVALUATION ASSETS

	Santa
	Rosa		El Horcón
	Property		Property		Coricancha		Tucano		Total
Balance, January 1, 2019	$	988	$	1,124	$	12,953	$	—	$	15,065
Acquisition of Beadell (note 5)		—		—		—		309		309
Change in reclamation and remediation provision		—		—		304		—		304
Foreign exchange translation difference		—		—		—		(19)		(19)
Balance, December 31, 2019	$	988	$	1,124	$	13,257	$	290	$	15,659
Change in reclamation and remediation provision		—		—		10,739		—		10,739
Foreign exchange translation difference		—		—		—		(64)		(64)
Balance, December 31, 2020	$	988	$	1,124	$	23,996	$	226	$	26,334

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OTHER ASSETS

12 Months Ended

Dec. 31, 2020

OTHER ASSETS

OTHER ASSETS

11.     OTHER ASSETS

	December 31,		December 31,
	2020		2019
Restricted cash	$	31	$	927
Reimbursement rights (a)		12,178		4,705
Deferred tax assets		—		145
	$	12,209	$	5,777

(a) Reimbursement rights

Pursuant to the acquisition of Coricancha, the vendor, Nyrstar N.V. (“Nyrstar”) agreed to reimburse the Company for:

· the cost of movement and reclamation of certain legacy tailings facilities should the regulatory authorities require these to be moved, up to a maximum of $20.0 million; and

· all fines or sanctions that arise before or after closing resulting from activities or ownership of Coricancha prior to June 30, 2017, up to a maximum of $4.0 million.

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TRADE PAYABLES AND ACCRUED LIABILITIES AND OTHER LIABILITIES

12 Months Ended

Dec. 31, 2020

TRADE PAYABLES AND ACCRUED LIABILITIES AND OTHER LIABILITIES

TRADE PAYABLES AND ACCRUED LIABILITIES AND OTHER LIABILITIES

12.     TRADE PAYABLES AND ACCRUED LIABILITIES AND OTHER LIABILITIES

(a) Trade payables and accrued liabilities

	December 31,		December 31,
	2020		2019
Trade payables	$	27,478	$	27,311
Accrued liabilities		14,758		13,181
Taxes payable		3,306		499
Lease liabilities		5,296		5,499
Other payables		2,383		3,043
	$	53,221	$	49,533

(b) Other liabilities

	December 31,		December 31,
	2020		2019
Lease liabilities	$	5,925	$	12,487
Accrued liabilities		192		4,591
	$	6,117	$	17,078

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BORROWINGS

12 Months Ended

Dec. 31, 2020

BORROWINGS

BORROWINGS

13.    BORROWINGS

				Unsecured bank			Bank
	MACA			facilities			overdraft			IXM Note			Bradesco			Samsung			Total
Balance, January 1, 2020	$	16,060		$	16,034		$	589		$	10,010		$	—		$	—		$	42,693
Borrowings		—			22,044			219			—			2,500			11,250			36,013
Interest accrued		449			891			—			548			223			583			2,694
Principal repayments		(12,686)			(20,500)			(846)			(10,000)			—			(804)			(44,836)
Interest payments		(628)			(953)			—			(558)			(319)			(561)			(3,019)
Foreign exchange		(185)			—			38			—			—			—			(147)
Balance, December 31, 2020	$	3,010		$	17,516		$	—		$	—		$	2,404		$	10,468		$	33,398
Current	$	3,010		$	17,516		$	—		$	—		$	736		$	9,671		$	30,933
Non-current	$	—		$	—		$	—		$	—		$	1,668		$	797		$	2,465
Note		(a)			(b)									(c)			(d)
Currency		AUD			USD			USD			USD			USD			USD
Nominal interest rate		5.5	%		5.4	%		13.7	%		3-month LIBOR plus 5	%		3.7	%		3-month LIBOR plus 5	%
Year of maturity		2021			2021			2020			2020			2023			2022

(a)     MACA

The Company made cash repayments to MACA totalling $12.7 million (A$18.5 million) during the year ended December 31, 2020, including $1.5 million (A$2.1 million), which represented 10% of the net cash proceeds from the bought deal financing (note 16(f)) required to be paid to MACA and applied against the outstanding balance of the loan under the amended loan agreement.

(b)      Unsecured bank facilities

The Company has unsecured, revolving, interest-bearing bank facilities totalling $17.5 million. The unsecured bank facilities are interest bearing at a weighted average fixed interest rate of 5.4% per annum and are repayable through December 2021.  Subsequent to December 31, 2020, facilities totalling $1.4 million matured and were not renewed.

(c)     Bradesco

On March 11, 2020, the Company received a loan from Bradesco in the amount of $10.0 million, with net loan proceeds of $2.5 million as $7.5 million is required to be retained as cash collateral.  The loan matures on February 24, 2023, and is required to be repaid in nine quarterly repayments of $1.1 million commencing March 5, 2021.  The return of the cash collateral will be proportionate to the quarterly loan repayments, resulting in net quarterly repayments of $0.3 million commencing March 5, 2021.  The loan principal of $10.0 million bears interest at 3.7% per annum, and the cash collateral of $7.5 million bears interest from 1.55% to 2.40% per annum.  The cash collateral of $7.5 million has been netted against the $10.0 million borrowings at December 31, 2020.

(d)     Samsung

On January 6, 2020, the Company entered an $11.3 million gold doré prepayment agreement with Samsung (the "Agreement"). In consideration of delivery and sale of approximately 3,000 ounces of gold contained in doré per month over a two-year period commencing January 2020 from Tucano, Samsung has agreed to advance $11.3 million (the "Advance") to Great Panther. Gold deliveries are sold at a 0.65% discount to the benchmark price of gold at the time of delivery. The Advance will be repaid in equal instalments of $0.8 million commencing December 2020 until January 2022 such that all amounts outstanding to Samsung will be repaid in full. The Advance bears interest at an annual rate of 3-month USD LIBOR plus 5% and is secured by a pledge of all equity interests in Great Panther's Brazilian subsidiary that owns Tucano. Great Panther has a full option for early repayment of the Advance, subject to a 3% penalty applied to the outstanding balance. The Agreement also provides Samsung with a right of offer for concentrates produced from Coricancha in certain circumstances. The transaction was completed on February 4, 2020, upon the funding of the Advance.

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DERIVATIVE INSTRUMENTS

12 Months Ended

Dec. 31, 2020

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS

14.     DERIVATIVE INSTRUMENTS

A significant portion of the Company’s capital, exploration, operating and administrative expenditures are incurred in BRL and Mexican peso ("MXN"), while revenues from the sale of refined gold and metal concentrates are denominated in USD.  The fluctuation of the USD in relation to the BRL and MXN consequently impacts the reported financial performance of the Company.  To manage the Company’s exposure to changes in the BRL and MXN exchange rate, the Company has entered, for time to time, into forward contracts to purchase foreign currencies in exchange for USD at various rates and maturity dates.

As at December 31, 2020, non-deliverable forward foreign exchange contracts for BRL against USD totalling BRL 88.2 million (December 31, 2019 – BRL 418.2 million) at various pre-determined rates ranging from BRL 4.37/USD to BRL 4.45/USD, at various maturity dates until February 2021, were outstanding.  The fair value of these contracts resulted in a liability of  $3.0 million at December 31, 2020 (December 31, 2019 - asset of $3.5 million).  A non-deliverable forward foreign exchange contract does not require physical delivery of the designated currencies at maturity.

The objective of the Company’s BRL/USD hedging strategy, which was executed in the fourth quarter of 2019 and first quarter of 2020, was to reduce exposure to any appreciation in the BRL, which was at or near record lows relative to the USD.  This allowed the Company to gain better certainty with regard to the Company’s projected operating cash-flows and capital expenditures for Tucano at a time of lower gold prices.  The Company has not entered any additional forward contracts since January 2020.

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RECLAMATION AND REMEDIATION PROVISIONS

12 Months Ended

Dec. 31, 2020

RECLAMATION AND REMEDIATION PROVISIONS

RECLAMATION AND REMEDIATION PROVISIONS

15.    RECLAMATION AND REMEDIATION PROVISIONS

The Company’s reclamation and remediation provisions relates to site restoration, clean-up, ongoing treatment, and monitoring at Tucano in Brazil, the GMC and Topia in Mexico, and Coricancha in Peru.

	December 31, 2020						December 31, 2019
	Total		Current		Non-current		Total		Current		Non-current
Tucano	$	15,241	$	—	$	15,241	$	17,079	$	—	$	17,079
GMC		8,184		348		7,836		8,725		—		8,725
Topia		6,601		—		6,601		4,697		—		4,697
Coricancha		38,299		610		37,689		25,073		4,927		20,146
	$	68,325	$	958	$	67,367	$	55,574	$	4,927	$	50,647

	December 31,		December 31,
	2020		2019
Balance, beginning of year	$	55,574	$	27,420
Acquisition of Beadell (note 5)		—		12,909
Change in estimates		16,607		13,389
Accretion		1,517		1,840
Reclamation work performed		(902)		—
Foreign exchange		(4,471)		16
Balance, end of year	$	68,325	$	55,574

In 2020, the change in reclamation estimates at the GMC, Topia, Coricancha and Tucano were $0.3 million decrease (2019 – $6.7 million), $2.2 million increase (2019 – $3.2 million), $13.7 million increase (2019 – $0.6 million), and $1.0 million increase (2019 – $2.9 million), respectively.  The change in reclamation estimates at the GMC reduced the carrying value of the related property and equipment. The change in estimates for Topia and Tucano were capitalized to mineral properties, plant and equipment, and for Coricancha, the change in estimate was capitalized to exploration and evaluation assets.

The reclamation and remediation provision for the GMC and Topia operations is based on the following assumptions:

	2020			2019
Total estimated future cash flows	$	18,895		$	15,745
Expected settlement of obligations (years)		2021 - 2043			2021 – 2045
Weighted average risk-free rate (discount rate)
GMC		4.6	%		1.9	%
Topia		4.8	%		2.1	%

A  1% change in the discount rate while holding the other assumptions constant would decrease or increase the provision by $0.6 million.

The reclamation and remediation provision for Coricancha is based on the following assumptions:

	2020			2019
Total estimated future cash flows	$	42,725		$	33,795
Expected settlement of obligations (years)		2021 - 2049			2020 – 2049
Weighted average risk-free rate (discount rate)		0.8	%		3.4	%

For Coricancha, a portion of the reclamation and remediation provision is offset by a reimbursement rights receivable (note 11(a)). Of the total estimated cash flows of $42.7 million, $12.2 million is reimbursable.

A  1% change in the discount rate would decrease or increase the provision by $3.0 million while holding the other assumptions constant.

The reclamation and remediation provision for Tucano is based on the following assumptions:

	2020			2019
Total estimated cash flows	$	22,594		$	19,731
Expected settlement of obligations (years)		2024 - 2029			2024 - 2029
Weighted average risk-free rate (discount rate)		6.7	%		6.7	%

A  1% change in the discount rate would decrease or increase the provision by $0.7 million while holding the other assumptions constant.

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SHARE CAPITAL

12 Months Ended

Dec. 31, 2020

SHARE CAPITAL

SHARE CAPITAL

16.    SHARE CAPITAL

(a)     Authorized share capital

The Company has an unlimited number of common shares without par value authorized for issue. The Company has an unlimited number of Class A and Class B preferred shares without par value authorized for issue. Each class can be issuable in series. No preferred shares have ever been issued.

(b)     Share options

In June 2020, upon approval by shareholders, the Company adopted an Omnibus Incentive Plan (the “Omnibus Plan”) to supplement and eventually replace the then-existing stock option plan (the "2016 Plan"). Pursuant to the Omnibus Plan, the Company may grant stock options (“Options”), restricted share units (“RSUs”), PSUs, and deferred share units (“DSUs”) to eligible employees, officers, directors, or consultants. The maximum number of common shares that the Company may issue is limited to 8% of the outstanding common shares, less the number of stock options already outstanding pursuant to the 2016 Plan and the Omnibus Plan, less twice the number of common shares counted as RSU, PSU, and DSU awards. There are additional limits with respect to insiders, individual grants, annual grants, and the number of which may be awarded to non-executive directors.

Options granted under the 2016 Plan will remain outstanding and be governed by the terms of the 2016 Plan. Options granted after the adoption of the Omnibus Plan will be governed by the Omnibus Plan.

Pursuant to the Omnibus Plan, options are non-transferable. The exercise price of options shall not be less than the closing price of the common shares on the Toronto Stock Exchange on the last business day immediately preceding the date of grant. Grant date share price is the closing market price on the day the options were granted. Options have expiry dates of no later than ten years after the date of grant and will cease to be exercisable three months following the termination of the participant’s employment or engagement.

Pursuant to the 2016 Plan, options are non-transferable, subject to permitted transferees, and the aggregate may not exceed 10% of the outstanding shares at the time of an option grant, and the aggregate to any one person may not exceed 5% of the outstanding shares. The exercise price of options is determined by the Board but shall not be less than the closing price of the common shares on the Toronto Stock Exchange on the last business day immediately preceding the date of grant. Grant date share price is the closing market price on the day the options were granted. Options have expiry dates of no later than five years after the date of grant and cease to be exercisable 90 days following the termination of the participant’s employment or engagement.

	2020			2019
		Weighted			Weighted
	Options	average		Options	average
	(000’s)		exercise price	(000’s)	exercise price
Outstanding, January 1	8,316	C$	1.20	8,322	C$	1.27
Granted	6,255		0.56	3,491		1.01
Forfeited/Expired	(3,582)		0.78	(2,580)		1.33
Exercised	(1,280)		0.74	(917)		0.73
Outstanding, December 31	9,709	C$	1.00	8,316	C$	1.20
Exercisable, December 31	3,355	C$	1.65	5,210	C$	1.24

		Weighted
		average
	Options	remaining	Options		Weighted
	outstanding	contractual life	exercisable		average
Range of exercise prices	(000’s)	(years)	(000’s)		exercise price
C$0.54 to $0.61	4,552	4.27	—	C$	—
C$0.62 to $1.07	2,080	3.79	526		0.97
C$1.08 to $1.59	641	2.72	522		1.37
C$1.60 to $1.90	1,379	2.07	1,250		1.61
C$1.91 to $2.19	1,057	0.61	1,057		2.18
	9,709	3.36	3,355	C$	1.65

During the year ended December 31, 2020, the Company recorded share-based compensation expense relating to share options of $0.7 million (2019 – $0.6 million).

The weighted average fair value of options granted during the year ended December 31, 2020, was C$0.23 (2019 –  C$0.38). The grant date fair value of share options granted was determined using a Black Scholes option pricing model using the following weighted average assumptions:

	2020		2019
Risk-free interest rate	0.45	%	1.36	%
Expected life (years)	3.11		3.05
Annualized volatility	62	%	54	%
Forfeiture rate	17	%	15	%

The annualized volatility assumption is based on the historical volatility of the Company’s common share price on the Toronto Stock Exchange. The risk-free interest rate assumption is based on government bonds with a remaining term equal to the expected life of the options.

(c)      Restricted share units ("RSUs"), Performance based restricted share unit (“PSUs”) and Deferred share units ("DSUs")

RSUs are awards for service which upon vesting and settlement entitle the recipient to receive common shares, a cash equivalent, or a combination thereof. Vesting conditions for RSUs are set by the Board but cannot exceed three years. The choice of settlement method is at the Company’s sole discretion. The RSUs granted to date vest in several tranches over three years. An estimated forfeiture rate calculated and updated based on historical forfeitures and cancellations was used in the determination of fair value for the purposes of computing share-based compensation expense in the consolidated financial statements.

PSUs are granted to senior executives, and vest after a performance period of up to three years. The number of units that will ultimately vest ranges between 0% - 200% based on relative performance against a peer group of companies.  The PSUs granted may only be settled through the issuance of common shares. Performance results at the end of the performance period relative to the predetermined performance criteria and the application of the corresponding performance multiplier determine how many PSUs vest for each participant. 

DSUs are awards to participants for directorship which settle upon termination of service of the participant.  Vesting conditions for DSUs are set by the Board.  Upon settlement, DSUs entitle the recipient to receive common shares, a cash equivalent, or a combination thereof.  The choice of settlement method is at the Company's sole discretion.  Timing of settlement after vesting occurs is at the discretion of the participant and can be any time between the date of termination of service of the participant and December 15th of the following calendar year.  The DSUs granted to date have vested immediately.

The fair values of the DSUs and RSUs granted to employees and directors have been estimated by reference to the fair value on the grant date of the equity instruments granted. The fair value of PSU was measured based on the fair value at the grant date using the Monte Carlo simulation technique on stock prices. 

The Company has no history of paying dividends, and consequently, no amounts in respect of dividends were included in the estimates of fair value of the equity instruments granted.

The following table summarizes information about the RSUs outstanding at December 31, 2020 and 2019:

	2020			2019
		Weighted			Weighted
		average grant			average grant
	Number of	date fair value		Number of	date fair value
	units	($/unit)		units	($/unit)
Balance at January 1	1,243,530	C$	1.19	733,667	C$	1.59
Granted	1,636,000		0.56	2,429,640		1.02
Settled	(779,596)		1.10	(1,187,459)		1.14
Cancelled	(188,500)		1.02	(732,318)		1.16
Outstanding at December 31	1,911,434	C$	0.70	1,243,530	C$	1.19

The following table summarizes information about the PSUs outstanding at December 31, 2020 and 2019:

	2020			2019
					Weighted
		Weighted			average
		average grant			grant date fair
	Number of	date fair value		Number of	value
	units	($/unit)		units	($/unit)
Balance at January 1	531,000	C$	1.14	—	C$	—
Granted	1,510,700		0.56	531,000		1.14
Cancelled	(137,200)		0.89	—		—
Outstanding at December 31	1,904,500	C$	0.70	531,000	C$	1.14

The following table summarizes information about the DSUs outstanding at December 31, 2020 and 2019:

	2020			2019
			Weighted			Weighted
			average grant			average grant
	Number of		date fair value	Number of		date fair value
	units		($/unit)	units		($/unit)
Balance at January 1	946,150	C$	1.19	251,400	C$	1.59
Granted	2,167,939		0.57	732,550		1.05
Settled	(693,900)		0.69	(37,800)		1.16
Outstanding at December 31	2,420,189	C$	0.78	946,150	C$	1.19

During the year ended December 31, 2020, the Company recorded share-based compensation expense relating to RSUs and DSUs of $1.4 million (2019 – $1.2 million). Share-based compensation expense of $0.4 million (2019 - $nil) relating to PSUs was recorded based on the estimated number of PSUs expected to vest.

(d)     Share purchase warrants

As part of the Acquisition, the Company issued 9,749,727 share purchase warrants at an exercise price of $1.317 per share to replace the warrants previously issued by Beadell. 6,321,965 share purchase warrants have an expiry date of May 17, 2022, and 3,428,032 share purchase warrants have an expiry date of June 27, 2022.

(e)     Earnings (loss) per share

	2020		2019
Income (loss) attributable to equity owners	$	334	$	(91,022)
Weighted average number of shares (000's)		337,834		273,380
Earnings (loss) per share ‒ basic	$	0.00	$	(0.33)

	2020		2019
Earnings (loss) attributable to equity owners	$	334	$	(91,022)
Weighted average number of shares (000's)		337,834		273,380
Effect of dilutive stock options, RSUs and DSUs		6,362		—
Weighted average diluted number of shares (000's)		344,196		273,380
Earnings (loss) per share ‒ diluted	$	0.00	$	(0.33)

Anti-dilutive share purchase options, warrants, deferred share units, restricted share units and performance share units have not been included in the diluted earnings per share calculation.

(f)     Financings

On July 9, 2019, the Company entered into the ATM Agreement, under which the Company will be entitled, at its discretion and from time-to-time during the term of the ATM Agreement, to sell common shares of the Company on the market for a period of two years equal to the lesser of i) 10% of the aggregate market value of the Company’s outstanding common shares as at the last trading day of the month before the month in which the first trade under the offering is made, and ii) aggregate gross proceeds of $25.0 million.  As at December 31, 2020, the Company has not issued any common shares under the ATM Facility.

On August 8, 2019, the Company closed a bought deal financing for aggregate gross proceeds of $17.3 million, pursuant to which the Company issued 23,000,000 common shares of the Company at the price of $0.75 per share.  The Company paid a cash commission to the underwriters equal to 5% of the gross proceeds of the financing and recognized net proceeds of $15.9 million after deducting share issuance costs.

On May 20, 2020, the Company closed a bought deal financing for aggregate gross proceeds of $16.1 million, pursuant to which the Company issued 40,250,000 common shares of the Company at the price of $0.40 per share. The Company paid a cash commission to the underwriters equal to 6% of the gross proceeds of the financing and recognized net proceeds of $14.7 million after deducting share issuance costs.

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REVENUE

12 Months Ended

Dec. 31, 2020

REVENUE

REVENUE

17.    REVENUE

The Company generates revenue primarily from the sale of precious metals, consisting of metal concentrates and refined gold. 

In the following table, revenue is disaggregated by the geographic location of the Company's mines and major products.

	2020						2019
		Brazil		Mexico		Total		Brazil		Mexico		Total
Gold	$	223,272	$	12,841	$	236,113	$	153,504	$	16,724	$	170,228
Silver		487		22,473		22,960		93		23,028		23,121
Lead		—		2,180		2,180		—		3,617		3,617
Zinc		—		3,161		3,161		—		4,861		4,861
Ore processing revenue		—		34		34		—		102		102
Smelting and refining charges		(69)		(4,031)		(4,100)		(200)		(3,524)		(3,724)
Revenue from contracts with customers	$	223,690	$	36,658	$	260,348	$	153,397	$	44,808	$	198,205
Changes in fair value from provisional pricing		—		457		457		—		448		448
Total revenue	$	223,690	$	37,115	$	260,805	$	153,397	$	45,256	$	198,653

The amount of revenue recognized in the year ended December 31, 2020, from performance obligations satisfied (or partially satisfied) in the previous period, due to the current period settlement of metal concentrate revenue recognized in the prior periods was a reduction of revenue of $0.2 million. At December 31, 2020, the Company had $2.5 million in revenue subject to provisional pricing in relation to the sale of concentrates.

For the years ended December 31, 2020 and 2019, the Company had revenue contracts with five customers (2019 - three customers) that accounted for the majority of the total revenues as follows:

Customer	Geographical Market	2020		2019
Customer A	Brazil	$	122,303	$	—
Customer B	Brazil		64,426		—
Customer C	Brazil		36,961		153,397
Customer D	Mexico (Guanajuato)		21,281		2,549
Customer E	Mexico (Topia)		13,950		—
Customer F	Mexico (Guanajuato)		(9)		18,445
Customer F	Mexico (Topia)		(110)		19,892
Customer G	Mexico (Guanajuato)		—		2,571
Customer G	Mexico (Topia)		1,969		1,697
Customer H	Mexico (Topia)		34		102
		$	260,805	$	198,653

The trade accounts receivable balance of $2.0 million at December 31, 2020 related to Customers B, D, E and G (December 31, 2019 – $4.6 million, related to Customers F and G).

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PRODUCTION COSTS

12 Months Ended

Dec. 31, 2020

PRODUCTION COSTS

PRODUCTION COSTS

18.      PRODUCTION COSTS

	2020		2019
Raw materials and consumables	$	51,826	$	58,046
Salaries and employee benefits		16,321		17,403
Contractors		55,315		58,952
Repairs and maintenance		1,171		801
Site administration		3,962		3,815
Royalties		5,918		7,572
Mining duties		160		168
Share-based compensation		336		358
		135,009		147,115
Less: Change in inventories		1,624		10,022
Total production costs	$	136,633	$	157,137

The Company’s operations in Mexico were suspended during April and May 2020 due to government orders due to the COVID-19 pandemic, which affected the country's entire mining industry. During the shutdown, the Company incurred unabsorbed fixed costs of $1.5 million for these operations included in the total production costs, which otherwise would have been recorded to inventory but were expensed as incurred. 

The Company also voluntarily suspended production at Topia for a five-week period in the fourth quarter of 2020 to mitigate the spread of COVID-19 in the local community.  The Company also expensed fixed costs during this period of suspension. 

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GENERAL AND ADMINISTRATIVE EXPENSES

12 Months Ended

Dec. 31, 2020

GENERAL AND ADMINISTRATIVE EXPENSES

GENERAL AND ADMINISTRATIVE EXPENSES

19.      GENERAL AND ADMINISTRATIVE EXPENSES

	2020		2019
Salaries and employee benefits	$	4,042	$	5,617
Professional fees		1,674		1,707
Office and other expenses		4,758		8,397
Amortization		446		514
Share-based compensation		2,006		1,322
Total general and administrative expenses	$	12,926	$	17,557

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EXPLORATION AND EVALUATION EXPENSES

12 Months Ended

Dec. 31, 2020

EXPLORATION AND EVALUATION EXPENSES

EXPLORATION AND EVALUATION EXPENSES

20.     EXPLORATION AND EVALUATION EXPENSES

	2020		2019
Salaries and employee benefits	$	2,223	$	2,878
Raw materials and consumables		892		1,237
Professional fees		4,411		5,978
Office and other expenses		2,724		2,648
Share-based compensation		120		46
Total exploration and evaluation expenses	$	10,370	$	12,787

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IMPAIRMENT OF GOODWILL

12 Months Ended

Dec. 31, 2020

IMPAIRMENT OF GOODWILL

IMPAIRMENT OF GOODWILL

21.     IMPAIRMENT OF GOODWILL

During the year ended December 31, 2019, the Company recorded an impairment of goodwill of $38.7 million that arose on the Acquisition.

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OTHER INCOME (EXPENSE)

12 Months Ended

Dec. 31, 2020

OTHER INCOME (EXPENSE)

OTHER INCOME (EXPENSE)

22.     OTHER INCOME (EXPENSE)

	2020		2019
Accretion expense	$	(2,629)	$	(3,404)
Gain (loss) on derivative instruments		(27,980)		2,353
Foreign exchange loss		(16,397)		(3,852)
Other expense		(2,188)		(3,211)
	$	(49,194)	$	(8,114)

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INCOME TAXES

12 Months Ended

Dec. 31, 2020

INCOME TAXES

INCOME TAXES

23.     INCOME TAXES

(a)     Income tax expense

	2020		2019
Current expense:
Income tax	$	3,647	$	135
Withholding tax		—		427
		3,647		562
Deferred tax expense (recovery):
Income tax		144		78
Withholding tax		—		104
		144		182
Income tax expense	$	3,791	$	744

The reconciliation of income taxes calculated at the Canadian statutory tax rate to the income tax expense shown in these consolidated financial statements is as follows:

	2020			2019
Net income (loss) before tax	$	4,125		$	(90,278)
Canadian statutory income tax rate		27	%		27	%
Anticipated income tax at statutory rate	$	1,115		$	(24,181)
Permanent differences		(2,084)			11,750
Differences between Canadian and foreign tax rates		3,144			(3,035)
Change in estimate		1,668			53
Impact of foreign exchange on local currencies		2,739			3,087
Change in deferred tax assets not recognized		(2,451)			13,425
Other items		(340)			(355)
Income tax expense	$	3,791		$	744
Effective tax rate		92	%		(1)	%

(b)     Deferred income tax assets and liabilities

The significant components of deferred tax assets and liabilities are:

	December 31,		December 31,
	2020		2019
Deferred income tax assets	$	—	$	49
Deferred special mining duty asset (liabilities)		—		96
Total deferred income tax assets		—		145
Deferred income tax liabilities		(2,488)		(3,208)
Deferred withholding tax liabilities		(2,194)		(2,157)
Total deferred income tax liabilities		(4,682)		(5,365)
Net deferred income tax assets (liabilities)	$	(4,682)	$	(5,220)

(c)   The following temporary differences and tax losses give rise to deferred income tax assets and liabilities:

	December 31,		December 31,
	2020		2019
Tax losses carried forward	$	18,968	$	19,394
Withholding tax liability		(2,194)		(2,157)
Mineral properties, plant and equipment		(20,298)		(24,557)
Other taxable temporary differences		(1,158)		(220)
Other deductible temporary differences		—		2,320
Net deferred income tax liabilities	$	(4,682)	$	(5,220)

Losses expire as follows:

		2020			2019
Type of losses	Country	Expiry dates	Amount		Expiry dates	Amount
Non-capital losses	Canada	2026 to 2040	$	29,730	2026 to 2039	$	2,843
	Mexico	2023 to 2030	$	24,870	2020 to 2028	$	21,560
	Brazil	indefinite	$	79,382	indefinite	$	102,357
	Peru	indefinite	$	73,491	indefinite	$	74,965
Capital losses	Canada	indefinite	$	—	indefinite	$	1,171

(d)     Unrecognized deferred tax assets:

The Company recognizes tax benefits on losses or other deductible amounts where it is probable the deferred tax assets will be realized. The Company’s unrecognized deductible temporary differences and unused tax losses for which no deferred tax assets are recognized consist of the following amounts:

	December 31,		December 31,
	2020		2019
Tax losses carried forward	$	217,342	$	130,131
Mineral properties, plant and equipment		45,429		90,647
Other deductible temporary differences		105,725		143,553
Unrecognized temporary differences	$	368,496	$	364,331

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FAIR VALUE MEASUREMENTS

12 Months Ended

Dec. 31, 2020

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

24.    FAIR VALUE MEASUREMENTS

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (an exit price) regardless of whether that price is directly observable or estimated using another valuation technique.

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (interest rate, yield curves), or inputs that are derived principally from or corroborated observable market data or other means. Level 3 inputs are unobservable (supported by little or no market activity). The fair value hierarchy gives the highest priority to Level 1 inputs and the lowest priority to Level 3 inputs.

The following describes the methods and assumptions used to estimate the fair value of Level 2 financial instruments.

Financial asset or liability	Methods and assumptions used to estimate fair value
Trade receivables	Trade receivables arising from the sales of metal concentrates are subject to provisional pricing, and the final selling price is adjusted at the end of the quotation period.  The Company marks these to market at each reporting date based on a quoted forward price.  The Company’s trade receivables are valued using quoted market prices on the London Metal Exchange.
Derivative instruments	The Company's derivative assets and derivative liabilities are comprised of forward foreign exchange contracts and put options for gold.  The fair value of the Company's forward exchange contracts and put options for gold are determined using forward exchange rates and forward gold prices, respectively, at each reporting date.
Borrowings	The Company’s borrowings are comprised of long-term loans, convertible debentures and debt facilities.  Borrowings are initially recognized at fair value, net of transaction costs incurred.  Subsequent to initial measurement, borrowings are recorded at amortized cost using the effective interest rate method.

During the years ended December 31, 2020 and 2019, there were no transfers of amounts between Level 1, Level 2, and Level 3 of the fair value hierarchy. The following tables show the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. Fair value information for financial assets and financial liabilities not measured at fair value is not presented if the carrying amount is a reasonable approximation of fair value.

The Company’s financial instruments include cash and cash equivalents, marketable securities, trade receivables, restricted cash, trade payables, borrowings and derivative instruments.  The carrying values of the Company’s financial instruments approximate their fair values due to the short-term nature of the items or the inclusion of interest rates that approximate market rates.

In evaluating fair value information, considerable judgment is required to interpret the market data used to develop the estimates. The use of different market assumptions and valuation techniques may have a material effect on the estimated fair value amounts.

The following table summarizes the Company’s financial instruments as at December 31, 2020:

	Fair value		Fair value
	through		through		Amortized				Fair value
	OCI		P&L		cost		Total		hierarchy
Financial Assets
Cash and cash equivalents	$	—	$	—	$	63,396	$	63,396	n/a
Marketable securities		1		—		—		1	Level 1
Trade receivables		—		—		2,011		2,011	Level 2
Restricted cash		—		—		1,055		1,055	n/a
Financial Liabilities
Trade payables and accrued liabilities	$	—	$	—	$	42,428	$	42,428	n/a
Derivative liabilities		—		2,974		—		2,974	Level 2
Borrowings		—		—		33,398		33,398	Level 2

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CAPITAL MANAGEMENT

12 Months Ended

Dec. 31, 2020

CAPITAL MANAGEMENT

CAPITAL MANAGEMENT

25.    CAPITAL MANAGEMENT

The Company’s objectives when managing capital are to:

· ensure there are adequate capital resources to support the Company’s ability to continue as a going concern;

· maintain adequate levels of cash to support the acquisition, exploration and development of mineral properties, exploration and evaluation assets, and the operation of producing mines;

· maintain investor, creditor and market confidence to sustain future development of the business; and

· provide returns to shareholders and benefits for other stakeholders.

In assessing the capital structure of the Company, management includes in its assessment the components of shareholders’ equity and debt, net of cash and cash equivalents and short-term deposits. Tucano, Topia and the GMC are in production, but exploration and development activities are also performed at these and other exploration properties in order to identify further reserves and resources.  Additionally, for Coricancha, which has been on care and maintenance since August 2013, the Company continues to evaluate the timeline and conditions for a potential re-start. The Company plans to use existing cash, including cash raised from equity and debt financing during the year ended December 31, 2020, as well as funds from future sales of precious metals to fund operations, development and exploration activities, and capital expenditures. 

The Company manages its capital in a manner that provides sufficient funding for operational activities.  Annual capital and operating expenditure budgets, and rolling forecasts, are used to determine the necessary capital requirements.  These budgets are approved by management and the Board and updated for changes in the underlying assumptions, economic conditions and risk characteristics of the underlying assets, as necessary.  Since the Acquisition, based on current projected operating cash flows and anticipated capital expenditures, the Company obtained equity and debt financing as described in notes 13 and 16(f).  The Company will continue to focus on internally generating operating cash flow to minimize its future reliance on equity and debt financing.  However, the Company may determine that it requires further financing through the offering of its share capital via the ATM Facility, and/or other equity and debt financing in order to meet long-term objectives.

The Company’s capital structure is dependent on expected business growth and changes in the business environment. As at December 31, 2020, the Company was not subject to externally imposed capital requirements.

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FINANCIAL RISK MANAGEMENT

12 Months Ended

Dec. 31, 2020

FINANCIAL RISK MANAGEMENT

FINANCIAL RISK MANAGEMENT

26.    FINANCIAL RISK MANAGEMENT

The Board has overall responsibility for the establishment and oversight of the Company’s risk management framework and reviews the Company’s policies on an ongoing basis.

The Company is exposed to certain financial risks, including credit risk, liquidity risk, and market risks such as currency risk, interest rate risk, and commodity price risk.

(a)     Credit risk

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. The Company’s exposures to credit risk arise from cash and short-term investments, trade accounts receivable, and loan receivable. Lesser exposures arise from holdings of marketable securities, and other receivables.

The risk is assessed by performing an aging analysis of trade receivables, and through the review of credit ratings of the counterparties with which the Company does business.

The Company manages such credit risks by diversifying bank deposits and placing funds only in large Canadian, Brazilian and Mexican financial institutions. The Company’s investments are subject to internal investment guidelines, and they mature at various dates but rarely in excess of one year.

All of the Company’s precious metal sales are to large international metals trading companies and smelters that have been in business for many years. For the sale of metal concentrates, the Company typically receives provisional payments, within days after delivery, of up to 95% of the value of each shipment. For the sale of refined gold, the Company typically receives payment in full on the day of delivery. Historically, the Company has not had difficulty collecting receivables from its customers, nor have customers defaulted on any payments.

There is no trade receivable related to the refined gold sales as at December 31, 2020.  The aging of trade receivables from metal concentrate sales is as follows:

	December 31,		December 31,
	2020		2019
0 to 30 days	$	1,343	$	4,121
31 to 60 days		400		389
61 to 90 days		142		150
over 90 days		126		(55)
	$	2,011	$	4,605

There has been no notable change in the Company’s approach to credit risk management since the prior year.

(b)     Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.  The Company's exposure to liquidity risk arises from its trade and other payables.  The Company regularly prepares rolling cash flows to identify and assess such liquidity risks.

The Company manages liquidity risk by preparing annual budgets for approval by the Board and preparing cash flow and liquidity forecasts on a quarterly basis.

There has been no notable change in the Company's approach to credit risk management since the prior year.

(c)     Currency risk

Currency risk is the risk that foreign exchange rates will fluctuate significantly from expectations.  The Company's exposure to currency risk arises from its operations in Canada, Brazil, Mexico and Peru, where payments to vendors and employees are often in local currency; yet, substantially all of the Company's revenues are realized in USD.  Further, the Company holds a portion of its cash in currencies other than USD.

To manage this risk, the Company holds as small of an amount as practical in foreign currencies.  To mitigate the Company’s exposure to changes in the exchange rates of BRL and MXN against USD, the Company may and has entered into forward currency contracts as it deems prudent.  There are limits on the extent of such contracts, in excess of which Board approval is required.

For financial instruments denominated in foreign currencies as at December 31, 2020, a 10% change in the prevailing exchange rates as at December 31, 2020, with all other variables held constant, would have the following impact on the Company’s earnings:

	Canadian				Australian				Peruvian
	dollars		Brazilian			dollars	Mexican		soles
Change in net income arising from:	("CAD")		real		("AUD")		pesos		("PEN")
10% appreciation of the USD against the currency	$	68	$	1,255	$	(78)	$	(150)	$	287
10% depreciation of the USD against the currency	$	(80)	$	(1,222)	$	78	$	157	$	(287)

The closing exchange rates for December 31, 2020, of BRL/USD of 5.197 (2019: 4.031), MXN/USD of 19.935 (2019: 18.876), AUD/USD of 1.2981 (2019: 1.423), PEN/USD of 3.621 (2019: 3.319), and CAD/USD of 1.277 (2019: 1.299) were used in the above analysis.

(d)     Interest rate risk

Interest rate risk is the possibility that change in market interest rates will affect future cash flows. The Company is exposed to interest rate risk on its cash and cash equivalents, short-term deposits and borrowings. The Company’s approach is to invest cash in savings accounts and guaranteed investment certificates at fixed and floating rates of interest over varying maturities. The Company manages this risk by monitoring changes in interest rates and by maintaining a relatively short duration for the Company's portfolio of cash equivalent securities. Many of these instruments can be immediately redeemed and those of a fixed-term do not exceed one year. The Company is exposed to interest rate risk on its variable interest rate borrowings, specifically the MACA loan (note 13(a)). Additionally, the unsecured bank facilities (note 13(b)) are expected to roll over as they become due and are therefore subject to interest rate changes.

There has been no notable change in the Company’s approach to interest rate risk management since the prior year.

For interest-bearing financial instruments as at December 31, 2020, an increase or decrease in interest rate of 1% applied would increase or decrease net income and comprehensive income by $0.1 million.

(e)     Commodity price risk

The Company is subject to risk from fluctuations in the market prices of gold, silver, lead and zinc. Such fluctuations directly affect the Company’s reported revenues.

The profitability of the Company’s operations is highly correlated to the market prices of these metals, as is the ability of the Company to develop its mineral properties and exploration and evaluation assets. The value of trade receivables at the reporting date also depends on changes in metal prices until finalization of sales prices per the contractual quotational period.

If metal prices decline for a prolonged period below the cost of production of the Company’s mines, it may not be economically feasible to continue production.

The Company has a stated policy that it will not engage in long-term hedging of gold and silver prices.

There was no notable change in the Company’s approach to commodity price risk management from the prior year until December 31, 2020.

For provisionally priced trade receivables, a 10% change in the prevailing commodity prices as at December 31, 2020, with all other variables held constant, would have the following impact on the Company’s earnings:

	10% change		10% change		10% change		10% change
	in gold		in silver		in lead		in zinc
Change in net income	$	549	$	991	$	69	$	153

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2020

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

27.    COMMITMENTS AND CONTINGENCIES

(a)     Commitments

As at December 31, 2020, the Company had the following commitments:

	Total		1 year		2-3 years		4-5 years		Thereafter
Operating lease payments	$	32	$	32	$	—	$	—	$	—
Drilling services		710		710		—		—		—
Equipment purchases		1,420		1,420		—		—		—
Total commitments	$	2,162	$	2,162	$	—	$	—	$	—

On June 29, 2020, the Company announced it had reached an agreement with Nyrstar International B.V. and Nyrstar Netherlands (Holdings) B.V. (together, "Nyrstar") and NN2 Newco Limited, the parent of the Nyrstar entities, to amend certain agreements (the "Amending Agreements") in respect of the Company's remediation obligations in connection with Great Panther's 2017 acquisition of Coricancha from Nyrstar. The Amending Agreements include amendments to the Share Purchase Agreement under which the Company purchased Coricancha from Nyrstar and the related agreement for Coricancha under which Nyrstar agreed to fund a portion of the bond to secure remediation costs for Coricancha in the future in respect of a permanent closure of the mine.

Under the Amending Agreements, Nyrstar has agreed to extend its requirement to post remediation bond obligations as security for closure costs at Coricancha beyond the original June 30, 2020 expiry date. The Amending Agreements provide that Nyrstar will maintain a $7.0 million bond until June 30, 2021 and $6.5 million for the following year, effectively deferring Great Panther's funding requirements for these amounts until June 30, 2022, unless Great Panther makes a decision to permanently close Coricancha. Great Panther has provided 80% collateral in the form of a deposit to cover its additional $2.7 million bond requirement as of June 30, 2020. In June 2017, the bond closure amount required by the Ministerio de Energía y Minas de Perú (the "MEM") was increased by $1.2 million, which Great Panther funded. The total bond amount required by the MEM was $10.9 million as of December 31, 2020.

(b)     Contingencies

i)      GMC

Tailings storage

In February 2016, the Mexican national water authority, Comisión Nacional del Agua (“CONAGUA”), required that the Company make formal applications for permits associated with the occupation and construction of the tailings storage facility (“TSF”) at the GMC.  The Company filed its applications, and the authorities conducted an inspection of the TSF and requested further technical information, which the Company submitted in December 2017.  In July 2017, the Company submitted to the Mexican environmental permitting authority, Secretaría del Medio Ambiente y Recursos Naturales (“SEMARNAT”), an amendment to the Environmental Impact Statement (“EIS”) requesting an expansion of the existing TSF (Lifts 18 and 19).  This was accepted by SEMARNAT subject to approval by CONAGUA and, in February 2019, CONAGUA requested additional technical information. 

The Company has been working with permitting authorities to expand the capacity of the GMC’s existing TSF.  In parallel, the Company has completed its review to identify technical alternatives to extend its tailings storage capacity utilizing existing permits and has begun modifying the tailings discharge using cyclones to extend the tailings capacity until June 30, 2021.  This will allow more time for receipt of the pending expansion approval; however, if the expansion approval of the TSF has not been received prior to June 30, 2021 or is conditioned, the Company may need to cease milling operations at the GMC until receipt of the CONAGUA expansion approval or the satisfaction of such conditions.

Additional water use permits

Since the February 2016 correspondence with CONAGUA, the Company has also determined through its own undertakings that additional CONAGUA permits may be needed in connection with water discharge and water use at the GMC’s TSF. The Company is assessing technical options and is confirming if additional water use permits are required. The Company believes that it will be able to address or mitigate the need for any necessary water discharge and use permits without any impact to its operations but cannot provide complete assurance that there is no risk in this regard. In the fourth quarter of 2019, the Company received the authorization to discharge wastewater from San Ignacio.

(ii)     Topia

Topia was accepted into a voluntary environmental audit program supported by the Mexican environmental compliance authority, the Procuraduría Federal de Protección al Ambiente (“PROFEPA”).  Devised as a cooperative management strategy, the audit commenced in 2017.  The Company completed remediating the important environmental legacy issues, but has not reached full compliance with the audit within the time-frame proposed.   The Company anticipates that it will be able to achieve full compliance; however, the Company cannot provide complete assurance that upon completion of the compliance program, further reviews will not lead to future suspensions of operations.

On March 9, 2020, the Company disclosed it ceased depositing tailings on the Topia Phase II TSF following a recommendation from the Company's independent tailings management and geotechnical consultants.  This was due to an increase in the rate of movement in material below the TSF that was assumed to be related to increase in groundwater pressures.  During the suspension of non-essential activities due to COVID-19, Great Panther continued monitoring the conditions on Phase I and Phase II and installed additional geotechnical instrumentation.  In addition, tests were carried out to determine the state of the tailings in Phase I and extensive work was carried out to identify the source and reduce the flow of water into the base of the TSF.  Consequently, Phase II was restarted on the basis of positive results of monitoring and a stacking plan for Phase II received from a third-party consultant with strict control on sequence and compaction level.  The Company has also received the required permit for Phase III, which is expected to be available for use after constructing retaining walls and erosion controls around the base of the facility.

There is no assurance that any remediation plan for Phase I or that the stacking plan for Phase II will be successful in preventing further movement of the tailings.  Any movement of the material underlying the TSF could result in significant environmental damage, potential loss of life and property and consequential liability to the Company.

(iii)     Coricancha

Coricancha has been on care and maintenance since August 2013 and is subject to oversight by the Organismo de Evaluación y Fiscalización Ambiental ("OEFA"), the Peruvian public agency responsible for environmental assessment and inspection, and by the Organismo Supervisor de la Inversión en Energía y Minería ("OSINERGMIN"), which is the Peruvian regulatory body with oversight responsibility over energy and mining companies.

Fines and sanctions

Nyrstar has agreed to reimburse the Company for all fines or sanctions that resulted from activities or ownership of Coricancha prior to June 30, 2017, up to a maximum of $4.0 million. Accordingly, a reimbursement right in the amount of $1.5 million has been recorded in respect of the following fines or sanctions:

· $1.3 million for fines and sanctions which may be levied by OSINERGMIN. Also, there are open administrative and judicial proceedings by OSINERGMIN, the outcomes of which are not yet readily determinable.

· $0.2 million for fines and sanctions to be levied by OEFA. In addition, there are open administrative and judicial proceedings by OEFA, the outcomes of which are not yet readily determinable.

The Company has accrued for and recorded a further reimbursement right of $0.4 million for certain civil lawsuits filed by individuals and former suppliers.

Legacy tailings facilities

The Company has undertaken the reclamation of certain legacy tailings facilities at Coricancha under a remediation plan approved by the MEM, the relevant regulatory body.  In addition, as part of the purchase of Coricancha, the Company has an agreement with Nyrstar for the reimbursement of the cost of these reclamation activities.  The Company is seeking approval of a modification to a remediation plan from the MEM in accordance with the recommendations of an independent consultant to preserve the stability of nearby areas.  The Company has changed the scheduling of the reclamation work, pending a decision from the MEM regarding the proposal to modify the approved remediation plan.  To protect itself from any pending or future fines, penalties, regulatory action or charges from government authorities and to request the MEM issue a decision of the proposed modification to the remediation plan for legacy tailings, the Company initiated a Constitutional Case and was successfully awarded an injunction to prevent fines and penalties until MEM issues its decision.  The Company was notified of a second instance decision in the Constitutional Case to dismiss the Constitutional Case.   The Company has the opportunity to appeal this decision and is considering the merits of an appeal.  The Company expects that the related injunction will be cancelled in the near future.  While it is possible to appeal the Constitutional Case proceeding, it will not be possible to appeal the cancellation of the injunction.  The cancellation of the injunction will expose the Company to potential fines, penalties, regulatory action or charges from government authorities.  The decision requests that the MEM issue a technical report evaluating the proposed modifications to the remediation plan within two months of the decision.  Separately, the Company plans to develop alternatives to propose to MEM to allow for the full reclamation while preserving the stability of the surrounding areas.  Although the Company has all necessary permits to restart Coricancha, if this matter is not resolved favourably, it may impact the Company’s stated plans and objectives for Coricancha.

(iv)    Tucano

Various claims related to Brazil indirect taxes and labour matters

As a result of the Acquisition, the Company has various litigation claims for a number of governmental assessments pertaining to indirect taxes, and labour disputes associated with former employees and contract labour in Brazil.

The indirect tax matter principally relates to claims for the state sales tax, Imposto Sobre Operações Relativas à Circulação de Mercadorias e Serviços de Transporte Interestadual de Intermunicipal e de Comunicações (“ICMS”), which are mostly related to rate differences.  For these claims, the possibility of loss was not considered probable by the Company’s Brazilian attorneys, and no provision has been recognized.

The labour matters principally relate to claims made by former employees and contract labour for the equivalent payment of all social security and other related labour benefits, as well as consequential tax claims, as if they were regular employees.  As of December 31, 2020, the items for which a loss was probable related to the labour disputes, inclusive of any related interest, amounted to approximately $1.6 million, for which a provision was recognized.

In connection with the above proceedings, a total of $0.3 million (December 31, 2019 - $0.4 million) of escrow cash deposits were made as of December 31, 2020 (note 6). Generally, any escrowed amounts would be refundable to the extent the matters are resolved in the Company’s favour.   

Environmental damages - William Creek

In May 2009, the State of Amapá Public Prosecutor (“MPAP”) filed a public civil action seeking payment for environmental damages caused to William Creek, as well as to other creeks located in the region of influence of Zamin Amapá Mineração (“Zamin”) and Tucano mines.  The alleged damage is related to the modification of the creek’s riverbed, soiling and sedimentation.  In January 2018, the Amapá State Court ordered Tucano to pay a fine of approximately $1.1 million (BRL 6.0 million plus interest and inflation counted as from the date of the damage) to the State Environmental Fund. As at December 31, 2020, the updated value with interest and inflation is approximately $5.7 million (BRL 29.7 million). The Company is in the process of appealing, and the likelihood of total loss is not considered probable based on legal advice received. However, the best estimate of the loss is less than the full amount claimed, and the Company has accrued the best estimate of the cost to settle the claim.

Archaeological sites damage

In May 2016 and June 2016, the Brazilian Federal Public Prosecutor (“MPF”) filed public civil actions seeking compensation to be paid by Zamin, the State of Amapá and Tucano for damages to 34 archaeological sites as a result of activities in 2006-2009 at the Amapá-MMX Iron Ore Project currently owned by Zamin and as a result of activities in 2004-2010 at the Amapari Project and for the State of Amapá failing to take proper action during the environmental licensing procedures (the “Archaeological Civil Actions”).  During the three months ended December 31, 2020, the 6th Lower Court in the Judiciary Section of the State of Amapá ratified a settlement agreement between Tucano and the MPF in respect of the Archeological Civil Actions (the “Settlement Agreement”).  Under the terms of the Settlement Agreement, as full and final settlement of the Archaeological Civil Actions, Tucano agreed to earmark BRL 8.0 million, no later than December 31, 2021, for implementation of socio-environmental measures for the benefit of the State of Amapá community, including a combination of community food donations in the first three months following ratification and those socio-environmental measures defined by mutual agreement of Tucano and MPF for the benefit of the communities in the Municipalities of Pedra Branca do Amapari and Serra do Navio funded in the second half of 2021.  The Instituto do Patrimônio Histórico e Artístico Nacional - Historic and Artistic National Heritage Institute (“IPHAN”) have sought clarification of the settlement agreement requesting certain of the settlement funds be designated specifically to IPHAN.

In related proceedings, Tucano is in the process of appealing fines and damages arising in the Federal Court of Appeal.  The likelihood of total loss is not considered probable based on legal advice received.  However, the best estimate of the loss is less than the full amount claimed and the Company has accrued  the best estimate of costs to settle the claim.

Cyanide usage

In October 2018, the public prosecutor’s office of labour affairs for the State of Amapá filed a public civil action seeking payment for potential damages and medical costs in relation to the Company’s employees’ exposure to cyanide used in the processing of its gold.  In August 2019, a regional labour court ordered Tucano to pay compensation of approximately BRL 4.0 million plus interest and inflation for these damages, in addition to surveillance and funding medical costs of any diseases to Tucano’s internal and outsourced employees and former employees, and to stop using cyanide in its production process within one year from the final non-appealable decision on the proceedings. Tucano is in the process of appealing to a Federal Superior Labour Court all aspects of the regional labour court decision.  In March 2020, it was accepted that the appeal, exclusively with respect to whether or not the use of cyanide may continue, be admitted for consideration by the Federal Superior Labour Court and the balance of the decision has not yet been accepted for consideration and is under appeal.  Tucano is not aware of any circumstances of former or current employees who have suffered health consequences from exposure to cyanide at the Company’s operations.  In addition, the Company notes that the use of cyanide in the processing of gold is common in the industry within Brazil and is not prohibited by any federal law in Brazil and that the Company complies with proper safety standards in the use and handling of cyanide in its operations.  The Company believes the claims are without merit and that it is too early in the process to be able to determine the outcome. As the matter progresses, the Company will review its assessment.

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

28.     RELATED PARTY TRANSACTIONS

Key management personnel include the Company’s Directors, President and Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, and vice presidents. Amounts owing to key management personnel are included in trade and other payables. The Company is committed to making severance payments amounting to approximately $3.4 million to certain officers and management in the event of a change in control of the Company.

Compensation to key management personnel consisted of the following:

	2020		2019
Salaries and benefits	$	3,059	$	1,674
Contract completion bonus - interim CEO		171		—
Directors’ fees		531		478
Termination benefits		—		658
Share-based compensation		1,935		1,227
	$	5,696	$	4,037

Directors fees during the year ended December 31, 2020 include $nil for special committee fees (2019 – $0.1 million).

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SUPPLEMENTAL CASH FLOW INFORMATION

12 Months Ended

Dec. 31, 2020

SUPPLEMENTAL CASH FLOW INFORMATION

SUPPLEMENTAL CASH FLOW INFORMATION

29.    SUPPLEMENTAL CASH FLOW INFORMATION

(a)     Other non-cash items

	2020		2019
Accretion	$	2,629	$	3,404
Finance expense		3,981		5,752
Finance income		(347)		(726)
Loss on disposal of fixed assets		1		32
	$	6,264	$	8,462

(b)     Non-cash investing and financing activities

	2020		2019
Change in reclamation and remediation provision included within mineral properties, plant and equipment and exploration and evaluation assets	$	13,943	$	3,330
Change in lease liability related to right-of-use assets		890		4,498
Shares issued upon settlement of obligation		39		—
Repayment of MACA borrowings by way of issuance of shares		—		10,524

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OPERATING SEGMENTS

12 Months Ended

Dec. 31, 2020

OPERATING SEGMENTS

OPERATING SEGMENTS

30.    OPERATING SEGMENTS

The Company’s operations are all within the mining sector, consisting of three operating segments, two of which are located in Mexico, one of which is located in Brazil, plus one segment associated with Coricancha in Peru, one Exploration segment and one Corporate segment. Due to diversities in geography and production processes, the Company operates Tucano, the GMC, and Topia mines separately, with separate budgeting and evaluation of results of operations and exploration activities. The Coricancha segment contains the net assets associated with Coricancha, and the cost of its exploration, evaluation and development activities are separately budgeted and reported. The Corporate segment provides financial, human resources and technical support to the three mining operations and Coricancha. The GMC operation produces silver and gold in concentrate, and the Topia operation produces silver, gold, lead and zinc in concentrate for refining off-site. The Tucano operation produces gold doré. The Exploration segment includes the Company’s  mineral exploration and evaluation assets at Santa Rosa, El Horcón, Plomo and Argosy.

	Operations
	Tucano		GMC			Topia	Coricancha		Exploration		Corporate		Total
2020
External revenue	$	—	$	21,219	$	15,896	$	—	$	—	$	223,690	$	260,805
Intersegment revenue		210,623		—		—		—		—		(210,623)		—
Amortization and depletion		35,986		1,564		2,745		198		—		258		40,751
Exploration and evaluation expenses		669		2,540		341		5,982		187		651		10,370
Non-cash change in reclamation and remediation provision		—		41		—		—		—		—		41
Care and maintenance costs		—		693		—		—		—		—		693
Finance income		121		—		—		—		—		226		347
Finance expense		2,597		—		—		188		—		1,196		3,981
Net income (loss) before income taxes		46,549		(2,621)		(734)		(6,503)		(667)		(31,899)		4,125
Income tax expense (recovery)		3,751		26		14		—		—		—		3,791
Net income (loss)		42,798		(2,647)		(748)		(6,503)		(667)		(31,899)		334
Additions to non-current assets		42,109		4		3,794		10,831		—		43		56,781
As at December 31, 2020
Total assets	$	167,524	$	4,597	$	14,456	$	44,705	$	2,126	$	47,012	$	280,420
Total liabilities	$	87,304	$	16,535	$	2,244	$	43,333	$	500	$	18,801	$	168,717

	Operations
	Tucano		GMC			Topia	Coricancha		Exploration		Corporate		Total
2019
External revenue	$	99,572	$	23,543	$	21,713	$	—	$	—	$	53,825	$	198,653
Intersegment revenue		49,818		—		—		—		—		(49,818)		—
Amortization and depletion		30,816		1,436		2,431		253		4		245		35,185
Exploration and evaluation expenses		608		2,550		889		8,557		176		7		12,787
Non-cash change in reclamation and remediation provision		—		6,829		2,923		—		—		—		9,752
Care and maintenance costs		—		795		—		—		—		—		795
Impairment of goodwill		38,682		—		—		—		—		—		38,682
Interest income		14		—		—		4		—		708		726
Finance costs		5,741		—		—		2		—		9		5,752
Loss before income taxes		(66,473)		(7,436)		(2,796)		(9,524)		(264)		(3,785)		(90,278)
Income tax expense		—		122		91		–		—		531		744
Net loss		(66,473)		(7,558)		(2,887)		(9,524)		(264)		(4,316)		(91,022)
Additions to non-current assets		28,593		317		3,963		1,195		—		821		34,889
As at December 31, 2019
Total assets	$	177,683	$	7,060	$	15,304	$	28,414	$	2,159	$	40,122	$	270,742
Total liabilities	$	107,354	$	15,772	$	2,445	$	29,556	$	—	$	15,116	$	170,243

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SEASONALITY OF OPERATIONS

12 Months Ended

Dec. 31, 2020

SEASONALITY OF OPERATIONS

SEASONALITY OF OPERATIONS

31.    SEASONALITY OF OPERATIONS

The Company’s Tucano operation is subject to seasonal fluctuations as a result of weather conditions.  Specifically, Tucano’s production is stronger in the second half of a calendar year as the dry season enables higher rates of mining productivity and the mine plan is characterized by lower strip ratios and access to higher grades in the open pits.  Accordingly, Tucano typically has more favourable operating results in the second half of the year.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2020

SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidation

(a)     Basis of consolidation

These consolidated financial statements include the accounts of the Company. All material intercompany transactions, balances, revenues, and expenses have been eliminated upon consolidation.

Subsidiaries are included in the consolidated financial results of the Company from the effective date of acquisition or control and up to the effective date of disposition or loss of control. Control is achieved when the Company has power over the investee, is exposed to or has rights to variable returns from its involvement with an investee, and has the ability to affect those returns through its power over the investee.

Great Panther Mining Limited is the ultimate parent entity of the group. At December 31, 2020, the principal subsidiaries of the Company, their geographic locations, and the ownership interests held by the Company, were as follows:

Name	Location	Ownership	Principal Activity
Mina Tucano Ltda (formerly Beadell Brasil Ltda)	Brazil	100%	Mining company
Mineral Mexicana el Rosario S.A. de C.V.	Mexico	100%	Mining company
Great Panther Coricancha S.A.	Peru	100%	Exploration company

Basis of measurement

(b)     Basis of measurement

These consolidated financial statements have been prepared on the historical cost basis except for financial assets and liabilities that are measured at fair values at each reporting date.

Foreign currency translation

(c)     Foreign currency translation

These consolidated financial statements are presented in US dollars ("USD") which is the Canadian parent company’s presentation currency and functional currency. The functional currency of the Company’s principal subsidiary in Mexico is the USD. The functional currency of the Company’s Brazilian subsidiaries is the Brazilian real (“BRL”).

i)      Transactions and balances

Foreign currency transactions are translated into the relevant functional currency using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in net income.

ii)     Translation of subsidiary results into the presentation currency

The operating results and statements of financial position of the Company’s subsidiaries which have a functional currency that differs from the Company’s presentation currency are translated into the presentation currency as follows:

· Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of the statement of financial position;

· Income and expenses for each statement of comprehensive income are translated at average exchange rates, unless the average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions; and

· All resulting exchange differences are recognized as a separate component of equity.

On consolidation, exchange differences arising from the translation of the net investment in foreign entities are recognized in a separate component of equity, foreign currency translation reserve. When a foreign operation is sold, such exchange differences are recognized in net income as part of the gain or loss on the sale.

Cash and cash equivalents

(d)     Cash and cash equivalents

Cash and cash equivalents include cash on hand, demand deposits, and money market instruments, with maturities from the date of acquisition of three months or less, which are readily convertible to known amounts of cash and are subject to insignificant changes in value. Transaction costs are expensed when incurred. Cash and cash equivalents are designated as financial assets at amortized cost.

Inventories

(e)     Inventories

Inventories consist of:

· Gold bullion, gold in circuit, ore stockpiles, and concentrate inventories which are stated at the lower of weighted average cost and net realizable value. Costs include production costs and amortization and depletion directly attributable to the inventory production process. Net realizable value is the expected selling price for the finished product less the costs to put the product into saleable form and delivery to the selling location.

· Materials and supplies inventory, which includes the cost of consumables used in operations are stated at the lower of weighted average cost and replacement cost which approximates net realizable value. Major spare parts and standby equipment are included in property, plant, and equipment when they are expected to be used over more than one period, if they can only be used in connection with an item of property, plant and equipment.

· Silver bullion coins and bars are recorded at lower of cost and net realizable value.

Mineral properties, plant and equipment

(f)      Mineral properties, plant and equipment

i)      Mineral properties

Mine development costs are capitalized if management determines that there is sufficient evidence to support probability of generating positive economic returns in the future. Mineral Resources and Reserves are considered to have economic potential when the technical feasibility and commercial viability of extraction is demonstrable considering long-term metal prices. Therefore, prior to capitalizing such costs, management determines whether the following conditions have been met: there is a probable future benefit that will contribute to future cash inflows; the Company can obtain the benefit and control access to it; and the transaction or event giving rise to the benefit has already occurred.

In the event that the Company does not have sufficient evidence to support the probability of generating positive economic returns in the future, mine development costs are expensed to profit or loss. Mine development costs include expenditures associated with accessing Mineral Resources and gaining further information regarding the ore body, whether by means of ramp development, drilling or sampling. Development costs at the GMC are currently expensed.

Producing mineral properties acquired through business acquisitions are recognized at fair value on the acquisition date. Where applicable, the estimated cost of mine reclamation and remediation for the property is included in the cost of mineral properties. 

The Company defers certain related stripping costs during the production phase of its Tucano surface mine operation to future periods. Stripping costs that generate a benefit of improved access to future components of an ore body and meet the definition of an asset are recognized as stripping activity assets. Stripping activity assets are depreciated on a units of production basis over the useful life of the identifiable component of the ore body that becomes more accessible as a result of the stripping activity. Stripping activity assets form part of mineral properties, plant and equipment.

ii)     Plant and equipment

Plant and equipment is originally recorded at cost at the time of construction, purchase, or acquisition, and is subsequently measured at cost less accumulated amortization and impairment. Cost includes all costs required to bring the plant and equipment into a condition and location where it is capable of operating according to its intended use.

Costs incurred for major overhauls of existing equipment or infrastructure are capitalized as plant and equipment and are subject to amortization once they are commissioned. Costs associated with routine maintenance and repairs are charged to operations as incurred.

iii)     Amortization and depletion

The Company's mineral properties in Mexico are depleted using the straight-line method over the estimated remaining life of the mine. The Company’s mineral properties at Tucano are depleted on a units of production basis over the economically recoverable reserves.

Plant and equipment directly related to the Mexico mining operations is amortized using the straight-line method over the shorter of the estimated remaining life of the mine and the estimated remaining useful life of the asset. Plant and equipment directly related to the Tucano mining operations is amortized on a units of production basis over the economically recoverable reserves of the mine concerned, except in the case of assets whose useful life is shorter than the estimated remaining life of the mine, in which case the straight -line method over the remaining useful life of the asset is used.

All other equipment, buildings and furniture and fixtures which do not relate directly to the mining operations are amortized on a straight-line basis over the remaining estimated useful life of the asset, except for land which is not amortized.

When assets are retired or sold, the costs and related accumulated depreciation are eliminated from the accounts and any resulting gain or loss is reflected in profit or loss.

Exploration and evaluation assets

(g)     Exploration and evaluation assets

i)      Exploration properties

Exploration properties represent properties for which the Company has not yet performed sufficient exploration work to determine whether significant mineralization exists. Exploration properties are carried at the cost of acquisition and included in exploration and evaluation assets. Exploration expenditures incurred on such properties are expensed as incurred as exploration expenditures in profit or loss. Examples of exploration expenditures that are expensed under this policy include topographical, geological, geochemical and geophysical studies; exploratory drilling; trenching; and sampling. The Company considers its Coricancha, Santa Rosa, El Horcón, Plomo and Argosy projects to be in this category as at December 31, 2020, and consequently, expenses all costs associated with these projects as they are incurred.

ii)     Evaluation properties

Evaluation properties represent properties for which the Company has identified Mineral Resources or Reserves of such quantity and grade or quality that it has reasonable prospects for economic extraction. Mineral Resources and Reserves are considered to have reasonable prospects for economic extraction when the Company has sufficient information to determine that extraction is viable and feasible at expected long-term metal prices. Expenditures made in relation to evaluating the technical feasibility and commercial viability of extracting a Mineral Resource or Reserve are capitalized and included in exploration and evaluation assets. Evaluation expenditures include the costs of drilling, sampling and other costs related to defining and delineating the mineral deposit.

When the technical feasibility and commercial viability of the extraction of Mineral Resources or Reserves associated with the Company’s evaluation properties are demonstrable and management has made a decision to proceed with development, the capitalized costs associated with evaluation assets are reclassified from exploration and evaluation assets to mineral properties. They are tested for impairment at that time.

iii)    Amortization and depletion

Exploration and evaluation assets are not subject to depletion or amortization, but rather are tested for impairment when circumstances indicate that the carrying value may not be recoverable.

Leased assets

(h)     Leased assets

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

· The contract involves the use of an identified asset - this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;

· The Company has the right to obtain substantially all the economic benefits from use of the asset throughout the period of use; and

· The Company has the right to direct the use of the asset. The Company has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used.

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured based on the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use assets are subsequently depreciated to the earlier of the end of the useful life of the right-of-use asset or the lease term using the straight-line method as this most closely reflects the expected pattern of consumption of the future economic benefits. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, or if the Company changes its assessment of whether it will exercise a purchase, extension or termination option.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company has elected to apply the practical expedient not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets. The lease payments associated with these leases are recognized as an expense on a straight-line basis over the lease term.

Impairment of non-financial assets

(i)      Impairment of non-financial assets

Exploration and evaluation assets are tested for impairment when circumstances indicate that the carrying value may not be recoverable. When facts and circumstances suggest that the carrying amount of an asset exceeds its recoverable amount, the Company performs an impairment test by comparing the recoverable amount to the carrying amount of the relevant exploration and evaluation property. When the carrying value exceeds the recoverable amount of the relevant exploration and evaluation property, an impairment charge is recorded and the property is written down to its recoverable amount. In addition, exploration and evaluation assets are tested for impairment at the date they are transferred to mineral properties, plant and equipment.

The Company’s mineral properties, plant and equipment are reviewed for any indication of impairment at each financial reporting date or at any time if an indicator of impairment is considered to exist. If any such indicators exist, an estimate of the recoverable amount is undertaken, being the higher of an asset’s fair value less costs of disposal and the asset’s value in use. If the asset’s carrying amount exceeds its recoverable amount then an impairment loss is recognized in net income or loss for the period, and the carrying value of the asset on the statement of financial position is reduced to its recoverable amount. Fair value is determined as the amount that would be obtained from the sale of the asset in an arm’s length transaction between knowledgeable and willing parties. Fair value of mineral properties is generally determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset, including any expansion prospects, discounted by an appropriate pre-tax discount rate to arrive at a net present value.

Value in use is determined as the present value of the estimated future cash flows expected to arise from the continued use of the asset in its present form and from its ultimate disposal. Value in use is determined by applying assumptions specific to the Company’s continued use which includes future development. As such, these assumptions may differ from those used in calculating fair value.

In testing for indicators of impairment and performing impairment calculations, assets are grouped into cash-generating units, which are identified as the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows from other assets. The estimates of future discounted cash flows are subject to risks and uncertainties including estimated production, grades, recoveries, future metals prices, discount rates, exchange rates and operating costs.

Non-financial assets other than goodwill that have suffered an impairment are evaluated for possible reversal of the impairment whenever events or changes in circumstances indicate that the impairment may have reversed. When a reversal of a previous impairment is recorded, the reversal amount is adjusted for depreciation that would have been recorded had the impairment not been recorded.

Share-based compensation

(j)      Share-based compensation

Equity-settled share-based compensation arrangements such as the Company’s stock option plan, restricted share unit plan, and deferred share unit plan are measured at fair value at the date of grant and recorded within equity. The restricted share unit plan includes restricted share units without performance-based criteria and performance share units, where the number of units that ultimately vest is dependent on the relative performance of the Company compared with a peer group of companies. The fair value at grant date of all share-based compensation is recognized as compensation expense over the vesting period, with a corresponding credit to shareholders’ equity. The amount recognized as an expense is adjusted to reflect share options forfeited. The Company estimates the fair value of share options granted using the Black-Scholes option pricing model. The Company estimates the fair value of equity settled performance share units (“PSU”) using a Monte Carlo valuation model at the date of grant.

Revenue recognition

(k)     Revenue recognition

The Company recognizes revenue from the sale of precious metals, consisting of metal concentrates and refined gold, when the customer obtains control.

For the metal concentrates sales, the customer obtains control upon delivery at the customer’s designated warehouse. The amount of revenue recorded upon initial recognition is based on the forward metal prices at that time and the estimated metal content. The payment terms are based on the individual customer contracts. For provisional payments, terms are typically 15 days from the date of provisional invoice, and for final payments, terms are typically five business days after the final weights, assays and prices are known and invoiced. Adjustments related to changes in metal prices and metal content up to the final settlement are recorded in revenue.

For the refined gold, the customer obtains control when the refined gold has been physically delivered, which is also the date when title has passed to the buyer and the Company has issued an invoice pursuant to a transaction confirmation that fixes the quantity and price of the gold for each delivery. The amount of revenue recorded upon delivery is based on this transaction confirmation. The Company has no significant continuing involvement after delivery and no adjustments to revenue are made subsequent to initial recognition.

Reclamation and remediation provisions

(l)      Reclamation and remediation provisions

The Company’s mining and exploration activities are subject to various laws and regulations governing the protection of the environment. The Company recognizes the cost of future reclamation and remediation as a liability when: the Company has a legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and, a reasonable estimate of the obligation can be made. The liability is measured initially by discounting expected costs to the net present value using pre-tax rates and risk assumptions specific to the liability. The resulting cost is capitalized to the carrying value of the related assets or expensed to profit or loss where there is no carrying value of the related assets, or where the cost is not recoverable. In subsequent periods, the liability is adjusted for accretion of the discount with the offsetting amount charged to the statement of comprehensive income as a finance cost. Any change in the amount or timing of the underlying cash flows is adjusted to the carrying value of the liability, with the offsetting amount recorded as an adjustment to the reclamation and remediation provision cost included in mineral properties or exploration, evaluation and development expenses. Any amount charged to the carrying value of assets is depreciated over the remaining life of the relevant assets.

It is reasonably possible that the ultimate cost of remediation and reclamation could change in the future due to uncertainties associated with defining the nature and extent of environmental disturbance, the application of laws and regulations by regulatory authorities, changes in remediation technology and changes in discount rates. The Company reviews its reclamation and remediation provision at least annually and as evidence becomes available indicating that its expected reclamation and remediation costs may have changed. Any such changes in costs could materially impact the future amounts recorded as reclamation and remediation provision.

Financial instruments

(m)    Financial instruments

The Company’s financial instruments consist of cash and cash equivalents, short-term deposits, marketable securities, trade and other receivables, loan receivable, restricted cash, trade and other payables, as well as derivative instruments.

i)      Classification

The Company determines the classification of its financial instruments at initial recognition. Upon initial recognition, a financial asset is classified as measured at: amortized cost, fair value through profit and loss (“FVTPL”), or fair value through other comprehensive income (loss) (“FVOCI”). The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. A financial liability is classified as measured at amortized cost or FVTPL.

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as FVTPL:

· it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

· its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as FVTPL:

· it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

· its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

An equity investment that is held for trading is measured at FVTPL. For other equity investments that are not held for trading, the Company may irrevocably elect to designate them as FVOCI. This election is made on an investment-by-investment basis.

All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

Financial liabilities are measured at amortized cost, unless they are required to be measured at FVTPL (such as instruments held for trading or derivatives) or the Company has elected to measure them at FVTPL.

ii)     Measurement

Initial measurement

On initial recognition, all financial assets and financial liabilities are measured at fair value adjusted for directly attributable transaction costs except for financial assets and liabilities classified as FVTPL, in which case the transaction costs are expensed as incurred.

Subsequent measurement

The following accounting policies apply to the subsequent measurement of financial instruments:

Financial assets at FVTPL	These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Financial assets at amortized cost	These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.
Equity investments at FVOCI	These assets are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in OCI and are never reclassified to profit or loss.
Debt investments at FVOCI	These assets are subsequently measured at fair value. Interest income is calculated using the effective interest rate method; foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in OCI. On derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Impairment of financial instruments

The Company assesses at each reporting date whether there is objective evidence that a financial asset or a group of financial assets is impaired.

For financial assets measured at amortized cost, and debt investments at FVOCI, the Company applies the expected credit loss model.

Provisions

(n)     Provisions

Provisions are liabilities that are uncertain in time or amount. The Company records a provision when (i) the Company has a present obligation (legal or constructive) as a result of a past event; (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and (iii) a reliable estimate can be made of the amount of the obligation.  Provisions are reviewed at each reporting date and adjusted to reflect management’s current best estimate of the cost to settle the present obligation. Where discounting has been used, the carrying amount of a provision is accreted to reflect the passage of time and the accretion expense is included in finance costs in the consolidated statements of income (loss).

Income taxes

(o)     Income taxes

Income tax is recognized in net income or loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized directly in equity.

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payable or receivable is the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantially enacted at the reporting date.

Deferred tax assets and liabilities are determined based on differences between the financial statement carrying values of existing assets and liabilities and their respective income tax bases (temporary differences), and tax loss carry forwards. Deferred tax assets and liabilities are measured using enacted or substantively enacted tax rates expected to be in effect when the temporary differences are likely to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is included in net income in the period in which the change is substantively enacted. The amount of deferred tax assets recognized is limited to the amount that is, in management’s estimation, probable that future taxable profits will be available against which the asset can be utilized.

Deferred tax assets and liabilities are offset (i) when there is a legally enforceable right to set off current tax assets against current tax liabilities, (ii) when they relate to income taxes levied by the same taxation authority, and (iii) the Company intends to settle its current tax assets and liabilities on a net basis.

Earnings per share

(p)     Earnings per share

Earnings per share is calculated based on the weighted average number of shares outstanding during the period. The Company follows the treasury stock method for the calculation of diluted earnings per share. Under this method, dilution is calculated based upon the net number of common shares issued should “in-the-money” options and warrants be exercised and the proceeds be used to repurchase common shares at the average market price during the period. Dilution from convertible securities is calculated based on the number of shares to be issued after taking into account the reduction of the related after-tax interest expense.

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed in a manner similar to basic earnings per share except that the weighted average shares outstanding are increased to include additional shares from restricted and deferred stock units and the assumed exercise of share options and warrants, if dilutive.

Segment reporting

(q)     Segment reporting

The Company has identified operating segments based on the internal reports that are reviewed and used by the Chief Executive Officer and the executive management team (the chief operating decision-maker – “CODM”) in assessing performance and in determining allocation of resources. The CODM considers the business from both a geographic and product perspective and assesses the performance of the operating segments based on measures such as net property, plant and equipment, as well as operating results. All operating segments’ operating results are reviewed regularly by the Company’s senior management to make decisions about resources to be allocated to the segment and to assess its performance, and for which discrete financial information is available. The Company has determined operating segments based on this information.

Segment results that are reported to senior management include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items are comprised mainly of corporate office expenses.

New and revised accounting standards not yet effective

(r)     New and revised accounting standards not yet effective

i)    Property, plant and equipment - proceeds before intended use

On May 14, 2020, the IASB issued a narrow scope amendment to IAS 16, Property, Plant and Equipment: Proceeds before Intended Use.  The amendment prohibits deducting from the cost of property, plant and equipment amounts received from selling items produced while preparing the asset for its intended use. Instead, amounts received will be recognized as sales proceeds and the related cost in profit or loss.  The effective date of the amendment is for annual periods beginning on or after January 1, 2022.  The amendment must be applied retrospectively, but only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after the beginning of the earliest period presented in the consolidated financial statements in which the amendment is first applied.  The Company will adopt this narrow scope amendment on the date it becomes effective.  The amendment is not currently applicable to the Company; however, it may be applicable in the future should the Company receive proceeds from selling items produced prior to an asset being ready for its intended use.

ii)    Interest rate benchmark reform

On August 27, 2020, the IASB issued 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) with amendments that address issues that might affect financial reporting related to financial instruments and hedge accounting resulting from the reform of an interest rate benchmark, including its replacement with alternative benchmark rates.  The amendments are effective for annual periods beginning on or after January 1, 2021, and are to be applied retrospectively.  The Company is currently assessing the impact of the amendments on the Company's consolidated financial statements.

Accounting standards issued and adopted

(s)     Accounting standards issued and adopted

i)    IFRS 3, Business Combinations

In October 2019, the IASB issued amendments to the definition of a business in IFRS 3 – Business Combinations (“IFRS 3”). The amendments to IFRS 3 are effective for annual reporting periods beginning on or after January 2020. The modifications are intended to assist entities in determining whether a transaction should be accounted for as a business combination or as an asset acquisition. The modifications are effective for acquisition transactions on or after January 1, 2020.  Effective January 1, 2020, the Company prospectively adopted the new IFRS 3 accounting standard which did not have an impact on the consolidated financial statements for the year ended December 31, 2020.

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SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2020

SIGNIFICANT ACCOUNTING POLICIES

Disclosure of subsidiaries

Name	Location	Ownership	Principal Activity
Mina Tucano Ltda (formerly Beadell Brasil Ltda)	Brazil	100%	Mining company
Mineral Mexicana el Rosario S.A. de C.V.	Mexico	100%	Mining company
Great Panther Coricancha S.A.	Peru	100%	Exploration company

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ACQUISITION OF BEADELL RESOURCES LIMITED (Tables)

12 Months Ended

Dec. 31, 2020

ACQUISITION OF BEADELL RESOURCES LIMITED

Schedule of assets acquired and liabilities assumed

	Preliminary				Definitive
	Purchase Price				Purchase Price
	Allocation		Adjustments		Allocation
103,593,043 common shares issued (1)	$	93,235	$	—	$	93,235
9,749,727 warrants issued		2,646		—		2,646
Consideration		95,881		—		95,881
Cash and cash equivalents		1,441		—		1,441
Trade and other receivables		26,733		(124)		26,609
Inventories		36,820		1,354		38,174
Other current assets		1,227		(352)		875
Restricted cash		61		—		61
Mineral properties, plant and equipment		143,147		(29,492)		113,655
Right-of-use assets		18,397		—		18,397
Exploration and evaluation assets		309		—		309
Other receivables – non-current		735		125		860
Trade payables and accrued liabilities		(29,024)		(126)		(29,150)
Borrowings		(69,473)		—		(69,473)
Lease liabilities		(18,397)		—		(18,397)
Deferred income tax liability		—		(3,457)		(3,457)
Great Panther loan advance		(2,370)		—		(2,370)
Reclamation and remediation provision		(6,375)		(6,534)		(12,909)
Other liabilities and provisions		(7,350)		(76)		(7,426)
Net identifiable assets acquired		95,881		(38,682)		57,199
Goodwill		—		38,682		38,682
	$	95,881	$	—	$	95,881

(1) The common shares were valued at the closing price of the Company’s shares on the NYSE American on March 5, 2019 was ($0.90).

Schedule of details about amounts previously reported together with the revised amounts as if the accounting for the business combination had been accounted for as at the acquisition date

	Preliminary				Definitive
	Purchase Price				Purchase Price
	Allocation			Adjustments	Allocation
Revenue	$	132,974	$	—	$	132,974
Cost of sales
Production costs		97,051		2,496		99,547
Amortization and depletion		21,238		61		21,299
Share-based compensation		238		—		238
General and administrative expenses		8,574		—		8,574
Exploration, evaluation, and development expenses		10,148		—		10,148
Impairment of goodwill		—		38,682		38,682
Business acquisition costs		2,863		—		2,863
Care and maintenance costs		599		—		599
Finance and other expense		12,280		808		13,088
Loss before income taxes		(20,017)		(42,047)		(62,064)
Income tax expense		891		—		891
Net loss for the year	$	(20,908)	$	(42,047)	$	(62,955)

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TRADE AND OTHER RECEIVABLES (Tables)

12 Months Ended

Dec. 31, 2020

TRADE AND OTHER RECEIVABLES

Disclosure of detailed information about trade and other receivables

	December 31,		December 31,
	2020		2019
Current
Trade receivables	$	2,011	$	4,605
Value-added tax receivable		3,839		4,894
PIS / COFINS - Brazil (a)		8,732		10,889
Judicial deposits - Brazil		302		389
Other		760		979
		15,644		21,756
Non-Current
PIS / COFINS - Brazil (a)		9,058		8,988
Income taxes recoverable - Brazil		2,764		1,152
Other		14		15
	$	11,836	$	10,155

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INVENTORIES (Tables)

12 Months Ended

Dec. 31, 2020

INVENTORIES

Disclosure of detailed information about inventories

	December 31,		December 31,
	2020		2019
Concentrate	$	578	$	968
Ore stockpiles		11,562		15,417
Materials and supplies		18,538		15,400
Gold in circuit		1,266		902
Gold bullion		1,794		2,430
Silver bullion		5		3
	$	33,743	$	35,120

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OTHER CURRENT ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

OTHER CURRENT ASSETS

Schedule of other current assets

	December 31,		December 31,
	2020		2019
Prepaid expenses and deposits	$	3,569	$	818
Reimbursement rights (note 11(a))		1,918		6,465
Derivative assets (note 14)		—		3,454
Marketable securities		1		1
Other current assets		187		642
	$	5,675	$	11,380

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MINERAL PROPERTIES, PLANT AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2020

MINERAL PROPERTIES, PLANT AND EQUIPMENT

Disclosure of detailed information about property, plant and equipment

									Furniture,
	Mineral		Mineral						fixtures
	properties –			properties –	Plant and		Land and		and		Right-of-use
	depletable		non depletable		equipment		buildings		equipment		assets		Total
Cost
Balance, January 1, 2020	$	58,237	$	43,186	$	83,335	$	22,548	$	5,636	$	22,685	$	235,627
Additions		32,754		—		3,499		5,692		3		890		42,838
Change in remediation provision		3,546		—		(342)		—		—		—		3,204
Foreign exchange translation difference		(6,375)		(9,317)		(10,411)		(4,443)		(132)		(4,670)		(35,348)
Balance, December 31, 2020	$	88,162	$	33,869	$	76,081	$	23,797	$	5,507	$	18,905	$	246,321
Accumulated depreciation
Balance, January 1, 2020	$	38,964	$	—	$	44,769	$	5,726	$	4,549	$	7,809	$	101,817
Amortization and depletion		15,790		—		15,435		4,508		430		4,881		41,044
Foreign exchange translation difference		(1,129)		—		(3,286)		(891)		(46)		(1,747)		(7,099)
Balance, December 31, 2020	$	53,625	$	—	$	56,918	$	9,343	$	4,933	$	10,943	$	135,762
Carrying value, December 31, 2020	$	34,537	$	33,869	$	19,163	$	14,454	$	574	$	7,962	$	110,559
Cost
Balance, January 1, 2019	$	36,066	$	—	$	35,184	$	2,573	$	4,987	$	1,150	$	79,960
Acquisition of Beadell		3,676		46,608		46,726		16,145		500		18,397		132,052
Additions		16,346		—		4,401		4,940		223		4,498		30,408
Change in remediation provision		2,996		—		30		—		—		—		3,026
Disposals		—		—		(185)		(3)		(44)		(33)		(265)
Foreign exchange translation difference		(847)		(3,422)		(2,281)		(1,107)		(30)		(1,327)		(9,554)
Balance, December 31, 2019	$	58,237	$	43,186	$	83,335	$	22,548	$	5,636	$	22,685	$	235,627
Accumulated depreciation
Balance, January 1, 2019	$	32,051	$	—	$	27,593	$	1,653	$	4,121	$	—	$	65,418
Amortization and depletion		6,820		—		17,434		4,095		464		7,878		36,691
Disposals		—		—		(185)		—		(41)		(6)		(232)
Foreign exchange translation difference		93		—		(73)		(22)		5		(63)		(60)
Balance, December 31, 2019	$	38,964	$	—	$	44,769	$	5,726	$	4,549	$	7,809	$	101,817
Carrying value, December 31, 2019	$	19,273	$	43,186	$	38,566	$	16,822	$	1,087	$	14,876	$	133,810

Schedule of Lease liability

i)     Right-of-use assets

	Mining		Power				Office  &		Land
	equipment		generators		Vehicles		Communication		easements		Total
Balance, January 1, 2020	$	7,376	$	5,035	$	1,095	$	658	$	712	$	14,876
Additions		801		—		—		89		—		890
Amortization and depletion		(2,663)		(1,437)		(378)		(266)		(137)		(4,881)
Foreign exchange translation difference		(1,589)		(1,090)		(241)		(3)		—		(2,923)
Balance, December 31, 2020	$	3,925	$	2,508	$	476	$	478	$	575	$	7,962

	Mining		Power				Office &		Land
	equipment		generators		Vehicles		Communication		easements		Total
Balance, January 1, 2019	$	—	$	—	$	—	$	881	$	269	$	1,150
Acquisition of Beadell		8,402		7,732		1,923		340		—		18,397
Additions		3,853		57		—		—		588		4,498
Disposals		—		—		—		(27)		—		(27)
Amortization and depletion		(4,244)		(2,264)		(707)		(518)		(145)		(7,878)
Foreign exchange translation difference		(635)		(490)		(121)		(18)		—		(1,264)
Balance, December 31, 2019	$	7,376	$	5,035	$	1,095	$	658	$	712	$	14,876

ii)     Lease liabilities

	December 31,		December 31,
	2020		2019
Maturity analysis – contractual undiscounted cash flows
Less than one year	$	5,855	$	6,707
One to five years		5,475		12,558
More than five years		98		123
Total undiscounted lease liabilities		11,428		19,388
Lease liabilities in the Consolidated Statement of Financial Position		11,221		17,986
Current (note 12 (a))		5,296		5,499
Non-current (note 12 (b))	$	5,925	$	12,487

iii)     Amount recognized in the Consolidated Statements of Comprehensive Income

	2020		2019
Interest on lease liabilities	$	1,332	$	1,564
Variable lease payments not included in the measurement of lease liabilities		49,723		43,889
Expenses relating to short-term leases		15,564		12,953
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets		11		13

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EXPLORATION AND EVALUATION ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

EXPLORATION AND EVALUATION ASSETS

Disclosure of detailed information about exploration and evaluation expenditure

	Santa
	Rosa		El Horcón
	Property		Property		Coricancha		Tucano		Total
Balance, January 1, 2019	$	988	$	1,124	$	12,953	$	—	$	15,065
Acquisition of Beadell (note 5)		—		—		—		309		309
Change in reclamation and remediation provision		—		—		304		—		304
Foreign exchange translation difference		—		—		—		(19)		(19)
Balance, December 31, 2019	$	988	$	1,124	$	13,257	$	290	$	15,659
Change in reclamation and remediation provision		—		—		10,739		—		10,739
Foreign exchange translation difference		—		—		—		(64)		(64)
Balance, December 31, 2020	$	988	$	1,124	$	23,996	$	226	$	26,334

Disclosure of detailed information about business combinations

	Preliminary				Definitive
	Purchase Price				Purchase Price
	Allocation		Adjustments		Allocation
103,593,043 common shares issued (1)	$	93,235	$	—	$	93,235
9,749,727 warrants issued		2,646		—		2,646
Consideration		95,881		—		95,881
Cash and cash equivalents		1,441		—		1,441
Trade and other receivables		26,733		(124)		26,609
Inventories		36,820		1,354		38,174
Other current assets		1,227		(352)		875
Restricted cash		61		—		61
Mineral properties, plant and equipment		143,147		(29,492)		113,655
Right-of-use assets		18,397		—		18,397
Exploration and evaluation assets		309		—		309
Other receivables – non-current		735		125		860
Trade payables and accrued liabilities		(29,024)		(126)		(29,150)
Borrowings		(69,473)		—		(69,473)
Lease liabilities		(18,397)		—		(18,397)
Deferred income tax liability		—		(3,457)		(3,457)
Great Panther loan advance		(2,370)		—		(2,370)
Reclamation and remediation provision		(6,375)		(6,534)		(12,909)
Other liabilities and provisions		(7,350)		(76)		(7,426)
Net identifiable assets acquired		95,881		(38,682)		57,199
Goodwill		—		38,682		38,682
	$	95,881	$	—	$	95,881

(1) The common shares were valued at the closing price of the Company’s shares on the NYSE American on March 5, 2019 was ($0.90).

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OTHER ASSETS (Tables)

12 Months Ended

Dec. 31, 2020

OTHER ASSETS

Schedule of other assets

	December 31,		December 31,
	2020		2019
Restricted cash	$	31	$	927
Reimbursement rights (a)		12,178		4,705
Deferred tax assets		—		145
	$	12,209	$	5,777

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TRADE PAYABLES AND ACCRUED LIABILITIES AND OTHER LIABILITIES (Tables)

12 Months Ended

Dec. 31, 2020

TRADE PAYABLES AND ACCRUED LIABILITIES AND OTHER LIABILITIES

Disclosure of accrued expenses and other liabilities

	December 31,		December 31,
	2020		2019
Trade payables	$	27,478	$	27,311
Accrued liabilities		14,758		13,181
Taxes payable		3,306		499
Lease liabilities		5,296		5,499
Other payables		2,383		3,043
	$	53,221	$	49,533

	December 31,		December 31,
	2020		2019
Lease liabilities	$	5,925	$	12,487
Accrued liabilities		192		4,591
	$	6,117	$	17,078

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BORROWINGS (Tables)

12 Months Ended

Dec. 31, 2020

BORROWINGS

Schedule of detailed information about borrowings

				Unsecured bank			Bank
	MACA			facilities			overdraft			IXM Note			Bradesco			Samsung			Total
Balance, January 1, 2020	$	16,060		$	16,034		$	589		$	10,010		$	—		$	—		$	42,693
Borrowings		—			22,044			219			—			2,500			11,250			36,013
Interest accrued		449			891			—			548			223			583			2,694
Principal repayments		(12,686)			(20,500)			(846)			(10,000)			—			(804)			(44,836)
Interest payments		(628)			(953)			—			(558)			(319)			(561)			(3,019)
Foreign exchange		(185)			—			38			—			—			—			(147)
Balance, December 31, 2020	$	3,010		$	17,516		$	—		$	—		$	2,404		$	10,468		$	33,398
Current	$	3,010		$	17,516		$	—		$	—		$	736		$	9,671		$	30,933
Non-current	$	—		$	—		$	—		$	—		$	1,668		$	797		$	2,465
Note		(a)			(b)									(c)			(d)
Currency		AUD			USD			USD			USD			USD			USD
Nominal interest rate		5.5	%		5.4	%		13.7	%		3-month LIBOR plus 5	%		3.7	%		3-month LIBOR plus 5	%
Year of maturity		2021			2021			2020			2020			2023			2022

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RECLAMATION AND REMEDIATION PROVISIONS (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure of other provisions [line items]

Disclosure of detailed information about reclamation and remediation provisions, by site

	December 31, 2020						December 31, 2019
	Total		Current		Non-current		Total		Current		Non-current
Tucano	$	15,241	$	—	$	15,241	$	17,079	$	—	$	17,079
GMC		8,184		348		7,836		8,725		—		8,725
Topia		6,601		—		6,601		4,697		—		4,697
Coricancha		38,299		610		37,689		25,073		4,927		20,146
	$	68,325	$	958	$	67,367	$	55,574	$	4,927	$	50,647

Disclosure of detailed information about reclamation and remediation provisions

	December 31,		December 31,
	2020		2019
Balance, beginning of year	$	55,574	$	27,420
Acquisition of Beadell (note 5)		—		12,909
Change in estimates		16,607		13,389
Accretion		1,517		1,840
Reclamation work performed		(902)		—
Foreign exchange		(4,471)		16
Balance, end of year	$	68,325	$	55,574

Topia Mine [Member]

Disclosure of other provisions [line items]

Disclosure of detailed information about assumptions of reclamation and remediation provisions

	2020			2019
Total estimated future cash flows	$	18,895		$	15,745
Expected settlement of obligations (years)		2021 - 2043			2021 – 2045
Weighted average risk-free rate (discount rate)
GMC		4.6	%		1.9	%
Topia		4.8	%		2.1	%

Coricancha Mining Complex [Member]

Disclosure of other provisions [line items]

Disclosure of detailed information about assumptions of reclamation and remediation provisions

	2020			2019
Total estimated future cash flows	$	42,725		$	33,795
Expected settlement of obligations (years)		2021 - 2049			2020 – 2049
Weighted average risk-free rate (discount rate)		0.8	%		3.4	%

Tucano [Member]

Disclosure of other provisions [line items]

Disclosure of detailed information about assumptions of reclamation and remediation provisions

	2020			2019
Total estimated cash flows	$	22,594		$	19,731
Expected settlement of obligations (years)		2024 - 2029			2024 - 2029
Weighted average risk-free rate (discount rate)		6.7	%		6.7	%

XML

SHARE CAPITAL (Tables)

12 Months Ended

Dec. 31, 2020

Disclosure of classes of share capital [line items]

Disclosure of number and weighted average exercise prices of share options

	2020			2019
		Weighted			Weighted
	Options	average		Options	average
	(000’s)		exercise price	(000’s)	exercise price
Outstanding, January 1	8,316	C$	1.20	8,322	C$	1.27
Granted	6,255		0.56	3,491		1.01
Forfeited/Expired	(3,582)		0.78	(2,580)		1.33
Exercised	(1,280)		0.74	(917)		0.73
Outstanding, December 31	9,709	C$	1.00	8,316	C$	1.20
Exercisable, December 31	3,355	C$	1.65	5,210	C$	1.24

Disclosure of range of exercise prices of outstanding share options

		Weighted
		average
	Options	remaining	Options		Weighted
	outstanding	contractual life	exercisable		average
Range of exercise prices	(000’s)	(years)	(000’s)		exercise price
C$0.54 to $0.61	4,552	4.27	—	C$	—
C$0.62 to $1.07	2,080	3.79	526		0.97
C$1.08 to $1.59	641	2.72	522		1.37
C$1.60 to $1.90	1,379	2.07	1,250		1.61
C$1.91 to $2.19	1,057	0.61	1,057		2.18
	9,709	3.36	3,355	C$	1.65

Disclosure of detailed information about options, valuation assumptions

	2020		2019
Risk-free interest rate	0.45	%	1.36	%
Expected life (years)	3.11		3.05
Annualized volatility	62	%	54	%
Forfeiture rate	17	%	15	%

Earnings per share

	2020		2019
Income (loss) attributable to equity owners	$	334	$	(91,022)
Weighted average number of shares (000's)		337,834		273,380
Earnings (loss) per share ‒ basic	$	0.00	$	(0.33)

	2020		2019
Earnings (loss) attributable to equity owners	$	334	$	(91,022)
Weighted average number of shares (000's)		337,834		273,380
Effect of dilutive stock options, RSUs and DSUs		6,362		—
Weighted average diluted number of shares (000's)		344,196		273,380
Earnings (loss) per share ‒ diluted	$	0.00	$	(0.33)

Deferred share units [Member]

Disclosure of classes of share capital [line items]

Disclosure of number and weighted average exercise prices of share options

	2020			2019
			Weighted			Weighted
			average grant			average grant
	Number of		date fair value	Number of		date fair value
	units		($/unit)	units		($/unit)
Balance at January 1	946,150	C$	1.19	251,400	C$	1.59
Granted	2,167,939		0.57	732,550		1.05
Settled	(693,900)		0.69	(37,800)		1.16
Outstanding at December 31	2,420,189	C$	0.78	946,150	C$	1.19

Restricted share units [Member]

Disclosure of classes of share capital [line items]

Disclosure of number and weighted average exercise prices of share options

	2020			2019
		Weighted			Weighted
		average grant			average grant
	Number of	date fair value		Number of	date fair value
	units	($/unit)		units	($/unit)
Balance at January 1	1,243,530	C$	1.19	733,667	C$	1.59
Granted	1,636,000		0.56	2,429,640		1.02
Settled	(779,596)		1.10	(1,187,459)		1.14
Cancelled	(188,500)		1.02	(732,318)		1.16
Outstanding at December 31	1,911,434	C$	0.70	1,243,530	C$	1.19

Performance Share Units [Member]

Disclosure of classes of share capital [line items]

Disclosure of number and weighted average exercise prices of share options

	2020			2019
					Weighted
		Weighted			average
		average grant			grant date fair
	Number of	date fair value		Number of	value
	units	($/unit)		units	($/unit)
Balance at January 1	531,000	C$	1.14	—	C$	—
Granted	1,510,700		0.56	531,000		1.14
Cancelled	(137,200)		0.89	—		—
Outstanding at December 31	1,904,500	C$	0.70	531,000	C$	1.14

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REVENUE (Tables)

12 Months Ended

Dec. 31, 2020

REVENUE

Disclosure of disaggregation of revenue from contracts with customers

	2020						2019
		Brazil		Mexico		Total		Brazil		Mexico		Total
Gold	$	223,272	$	12,841	$	236,113	$	153,504	$	16,724	$	170,228
Silver		487		22,473		22,960		93		23,028		23,121
Lead		—		2,180		2,180		—		3,617		3,617
Zinc		—		3,161		3,161		—		4,861		4,861
Ore processing revenue		—		34		34		—		102		102
Smelting and refining charges		(69)		(4,031)		(4,100)		(200)		(3,524)		(3,724)
Revenue from contracts with customers	$	223,690	$	36,658	$	260,348	$	153,397	$	44,808	$	198,205
Changes in fair value from provisional pricing		—		457		457		—		448		448
Total revenue	$	223,690	$	37,115	$	260,805	$	153,397	$	45,256	$	198,653

Schedule of Revenue by Major Customers by Reporting Segments

Customer	Geographical Market	2020		2019
Customer A	Brazil	$	122,303	$	—
Customer B	Brazil		64,426		—
Customer C	Brazil		36,961		153,397
Customer D	Mexico (Guanajuato)		21,281		2,549
Customer E	Mexico (Topia)		13,950		—
Customer F	Mexico (Guanajuato)		(9)		18,445
Customer F	Mexico (Topia)		(110)		19,892
Customer G	Mexico (Guanajuato)		—		2,571
Customer G	Mexico (Topia)		1,969		1,697
Customer H	Mexico (Topia)		34		102
		$	260,805	$	198,653

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PRODUCTION COSTS (Tables)

12 Months Ended

Dec. 31, 2020

PRODUCTION COSTS

Schedule of production cost

	2020		2019
Raw materials and consumables	$	51,826	$	58,046
Salaries and employee benefits		16,321		17,403
Contractors		55,315		58,952
Repairs and maintenance		1,171		801
Site administration		3,962		3,815
Royalties		5,918		7,572
Mining duties		160		168
Share-based compensation		336		358
		135,009		147,115
Less: Change in inventories		1,624		10,022
Total production costs	$	136,633	$	157,137

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GENERAL AND ADMINISTRATIVE EXPENSES (Tables)

12 Months Ended

Dec. 31, 2020

GENERAL AND ADMINISTRATIVE EXPENSES

Schedule of general and administrative expenses

	2020		2019
Salaries and employee benefits	$	4,042	$	5,617
Professional fees		1,674		1,707
Office and other expenses		4,758		8,397
Amortization		446		514
Share-based compensation		2,006		1,322
Total general and administrative expenses	$	12,926	$	17,557

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EXPLORATION AND EVALUATION EXPENSES (Tables)

12 Months Ended

Dec. 31, 2020

EXPLORATION AND EVALUATION EXPENSES

Schedule of Exploration and evaluation expenses

	2020		2019
Salaries and employee benefits	$	2,223	$	2,878
Raw materials and consumables		892		1,237
Professional fees		4,411		5,978
Office and other expenses		2,724		2,648
Share-based compensation		120		46
Total exploration and evaluation expenses	$	10,370	$	12,787

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OTHER INCOME (EXPENSE) (Tables)

12 Months Ended

Dec. 31, 2020

OTHER INCOME (EXPENSE)

Schedule of other income expense

	2020		2019
Accretion expense	$	(2,629)	$	(3,404)
Gain (loss) on derivative instruments		(27,980)		2,353
Foreign exchange loss		(16,397)		(3,852)
Other expense		(2,188)		(3,211)
	$	(49,194)	$	(8,114)

XML

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2020

INCOME TAXES

Disclosure of detailed information about reconciliation of income taxes computed as statutory tax rate

	2020			2019
Net income (loss) before tax	$	4,125		$	(90,278)
Canadian statutory income tax rate		27	%		27	%
Anticipated income tax at statutory rate	$	1,115		$	(24,181)
Permanent differences		(2,084)			11,750
Differences between Canadian and foreign tax rates		3,144			(3,035)
Change in estimate		1,668			53
Impact of foreign exchange on local currencies		2,739			3,087
Change in deferred tax assets not recognized		(2,451)			13,425
Other items		(340)			(355)
Income tax expense	$	3,791		$	744
Effective tax rate		92	%		(1)	%

Disclosure of deferred taxes

	December 31,		December 31,
	2020		2019
Deferred income tax assets	$	—	$	49
Deferred special mining duty asset (liabilities)		—		96
Total deferred income tax assets		—		145
Deferred income tax liabilities		(2,488)		(3,208)
Deferred withholding tax liabilities		(2,194)		(2,157)
Total deferred income tax liabilities		(4,682)		(5,365)
Net deferred income tax assets (liabilities)	$	(4,682)	$	(5,220)

Disclosure of temporary difference, unused tax losses and unused tax credits

	December 31,		December 31,
	2020		2019
Tax losses carried forward	$	18,968	$	19,394
Withholding tax liability		(2,194)		(2,157)
Mineral properties, plant and equipment		(20,298)		(24,557)
Other taxable temporary differences		(1,158)		(220)
Other deductible temporary differences		—		2,320
Net deferred income tax liabilities	$	(4,682)	$	(5,220)

Disclosure of detailed information about effective income tax expense recovery

	2020		2019
Current expense:
Income tax	$	3,647	$	135
Withholding tax		—		427
		3,647		562
Deferred tax expense (recovery):
Income tax		144		78
Withholding tax		—		104
		144		182
Income tax expense	$	3,791	$	744

Disclosure of unused tax losses

		2020			2019
Type of losses	Country	Expiry dates	Amount		Expiry dates	Amount
Non-capital losses	Canada	2026 to 2040	$	29,730	2026 to 2039	$	2,843
	Mexico	2023 to 2030	$	24,870	2020 to 2028	$	21,560
	Brazil	indefinite	$	79,382	indefinite	$	102,357
	Peru	indefinite	$	73,491	indefinite	$	74,965
Capital losses	Canada	indefinite	$	—	indefinite	$	1,171

Disclosure of detailed information about temporary differences of unrecognized deferred tax assets

	December 31,		December 31,
	2020		2019
Tax losses carried forward	$	217,342	$	130,131
Mineral properties, plant and equipment		45,429		90,647
Other deductible temporary differences		105,725		143,553
Unrecognized temporary differences	$	368,496	$	364,331

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FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2020

FAIR VALUE MEASUREMENTS

Disclosure of detailed information about financial instruments

	Fair value		Fair value
	through		through		Amortized				Fair value
	OCI		P&L		cost		Total		hierarchy
Financial Assets
Cash and cash equivalents	$	—	$	—	$	63,396	$	63,396	n/a
Marketable securities		1		—		—		1	Level 1
Trade receivables		—		—		2,011		2,011	Level 2
Restricted cash		—		—		1,055		1,055	n/a
Financial Liabilities
Trade payables and accrued liabilities	$	—	$	—	$	42,428	$	42,428	n/a
Derivative liabilities		—		2,974		—		2,974	Level 2
Borrowings		—		—		33,398		33,398	Level 2

XML

FINANCIAL RISK MANAGEMENT (Tables)

12 Months Ended

Dec. 31, 2020

FINANCIAL RISK MANAGEMENT

Disclosure of credit risk exposure

	December 31,		December 31,
	2020		2019
0 to 30 days	$	1,343	$	4,121
31 to 60 days		400		389
61 to 90 days		142		150
over 90 days		126		(55)
	$	2,011	$	4,605

Disclosure of detailed information about foreign currency risk

	Canadian				Australian				Peruvian
	dollars		Brazilian			dollars	Mexican		soles
Change in net income arising from:	("CAD")		real		("AUD")		pesos		("PEN")
10% appreciation of the USD against the currency	$	68	$	1,255	$	(78)	$	(150)	$	287
10% depreciation of the USD against the currency	$	(80)	$	(1,222)	$	78	$	157	$	(287)

Disclosure of detailed information about commodity price risk

	10% change		10% change		10% change		10% change
	in gold		in silver		in lead		in zinc
Change in net income	$	549	$	991	$	69	$	153

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COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2020

COMMITMENTS AND CONTINGENCIES

Disclosure of commitments and contingencies

	Total		1 year		2-3 years		4-5 years		Thereafter
Operating lease payments	$	32	$	32	$	—	$	—	$	—
Drilling services		710		710		—		—		—
Equipment purchases		1,420		1,420		—		—		—
Total commitments	$	2,162	$	2,162	$	—	$	—	$	—

XML

RELATED PARTY TRANSACTIONS (Tables)

12 Months Ended

Dec. 31, 2020

RELATED PARTY TRANSACTIONS

Disclosure of information about key management personnel

	2020		2019
Salaries and benefits	$	3,059	$	1,674
Contract completion bonus - interim CEO		171		—
Directors’ fees		531		478
Termination benefits		—		658
Share-based compensation		1,935		1,227
	$	5,696	$	4,037

XML

SUPPLEMENTAL CASH FLOW INFORMATION (Tables)

12 Months Ended

Dec. 31, 2020

SUPPLEMENTAL CASH FLOW INFORMATION

Disclosure of detailed information about supplemental cash flow information

	2020		2019
Accretion	$	2,629	$	3,404
Finance expense		3,981		5,752
Finance income		(347)		(726)
Loss on disposal of fixed assets		1		32
	$	6,264	$	8,462

Disclosure of detailed information about non cash transactions

	2020		2019
Change in reclamation and remediation provision included within mineral properties, plant and equipment and exploration and evaluation assets	$	13,943	$	3,330
Change in lease liability related to right-of-use assets		890		4,498
Shares issued upon settlement of obligation		39		—
Repayment of MACA borrowings by way of issuance of shares		—		10,524

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OPERATING SEGMENTS (Tables)

12 Months Ended

Dec. 31, 2020

OPERATING SEGMENTS

Disclosure of detailed information about entity reportable segments, assets and liabilities

	Operations
	Tucano		GMC			Topia	Coricancha		Exploration		Corporate		Total
2020
External revenue	$	—	$	21,219	$	15,896	$	—	$	—	$	223,690	$	260,805
Intersegment revenue		210,623		—		—		—		—		(210,623)		—
Amortization and depletion		35,986		1,564		2,745		198		—		258		40,751
Exploration and evaluation expenses		669		2,540		341		5,982		187		651		10,370
Non-cash change in reclamation and remediation provision		—		41		—		—		—		—		41
Care and maintenance costs		—		693		—		—		—		—		693
Finance income		121		—		—		—		—		226		347
Finance expense		2,597		—		—		188		—		1,196		3,981
Net income (loss) before income taxes		46,549		(2,621)		(734)		(6,503)		(667)		(31,899)		4,125
Income tax expense (recovery)		3,751		26		14		—		—		—		3,791
Net income (loss)		42,798		(2,647)		(748)		(6,503)		(667)		(31,899)		334
Additions to non-current assets		42,109		4		3,794		10,831		—		43		56,781
As at December 31, 2020
Total assets	$	167,524	$	4,597	$	14,456	$	44,705	$	2,126	$	47,012	$	280,420
Total liabilities	$	87,304	$	16,535	$	2,244	$	43,333	$	500	$	18,801	$	168,717

	Operations
	Tucano		GMC			Topia	Coricancha		Exploration		Corporate		Total
2019
External revenue	$	99,572	$	23,543	$	21,713	$	—	$	—	$	53,825	$	198,653
Intersegment revenue		49,818		—		—		—		—		(49,818)		—
Amortization and depletion		30,816		1,436		2,431		253		4		245		35,185
Exploration and evaluation expenses		608		2,550		889		8,557		176		7		12,787
Non-cash change in reclamation and remediation provision		—		6,829		2,923		—		—		—		9,752
Care and maintenance costs		—		795		—		—		—		—		795
Impairment of goodwill		38,682		—		—		—		—		—		38,682
Interest income		14		—		—		4		—		708		726
Finance costs		5,741		—		—		2		—		9		5,752
Loss before income taxes		(66,473)		(7,436)		(2,796)		(9,524)		(264)		(3,785)		(90,278)
Income tax expense		—		122		91		–		—		531		744
Net loss		(66,473)		(7,558)		(2,887)		(9,524)		(264)		(4,316)		(91,022)
Additions to non-current assets		28,593		317		3,963		1,195		—		821		34,889
As at December 31, 2019
Total assets	$	177,683	$	7,060	$	15,304	$	28,414	$	2,159	$	40,122	$	270,742
Total liabilities	$	107,354	$	15,772	$	2,445	$	29,556	$	—	$	15,116	$	170,243

XML

NATURE OF OPERATIONS (Details)	1 Months Ended
	Jun. 30, 2017 t
Coricancha Mining Complex [Member]
Disclosure Of Nature Of Operations [Line Items]
Tonnes processed per day	600

XML

SIGNIFICANT ACCOUNTING POLICIES - Principal subsidiaries (Details)	12 Months Ended
	Dec. 31, 2020
Mina Tucano Ltda Formerly Beadell Brasil Ltda [Member
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary	100.00%
Mineral Mexicana el Rosario, S.A. de C.V. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary	100.00%
Great Panther Coricancha S.A. [Member]
Disclosure of subsidiaries [line items]
Proportion of ownership interest in subsidiary	100.00%

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ACQUISITION OF BEADELL RESOURCES LIMITED - Business Combination (Details) - USD ($) $ in Thousands	Mar. 05, 2019	Dec. 31, 2020	Dec. 31, 2019
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract]
Deferred income tax liabilities		$ (2,488)	$ (3,208)
BEADELL RESOURCES LIMITED [Member]
Disclosure of detailed information about business combination [line items]
Number of shares issued on acquisition	103,593,043
103,593,043 common shares issued	$ 93,235
Number of share purchase warrants issued	9,749,727
9,749,727 warrants issued	$ 2,646
Consideration	95,881
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract]
Cash and cash equivalents	1,441
Trade and other receivables	26,609
Inventories	38,174
Other current assets	875
Restricted cash	61
Mineral properties, plant and equipment	113,655
Right-of-use assets	18,397
Exploration and evaluation assets	309
Other receivables - non-current	860
Trade payables and accrued liabilities	(29,150)
Borrowings	(69,473)
Lease liabilities	(18,397)
Deferred income tax liabilities	(3,457)
Great Panther loan advance	(2,370)
Reclamation and remediation provision	(12,909)
Other liabilities and provisions	(7,426)
Net identifiable assets acquired	57,199
Goodwill	38,682
Consideration	95,881
BEADELL RESOURCES LIMITED [Member] | Preliminary Purchase Price Allocation
Disclosure of detailed information about business combination [line items]
103,593,043 common shares issued	93,235
9,749,727 warrants issued	2,646
Consideration	95,881
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract]
Cash and cash equivalents	1,441
Trade and other receivables	26,733
Inventories	36,820
Other current assets	1,227
Restricted cash	61
Mineral properties, plant and equipment	143,147
Right-of-use assets	18,397
Exploration and evaluation assets	309
Other receivables - non-current	735
Trade payables and accrued liabilities	(29,024)
Borrowings	(69,473)
Lease liabilities	(18,397)
Great Panther loan advance	(2,370)
Reclamation and remediation provision	(6,375)
Other liabilities and provisions	(7,350)
Net identifiable assets acquired	95,881
Consideration	95,881
BEADELL RESOURCES LIMITED [Member] | Adjustments
Amounts recognised as of acquisition date for each major class of assets acquired and liabilities assumed [abstract]
Trade and other receivables	(124)
Inventories	1,354
Other current assets	(352)
Mineral properties, plant and equipment	(29,492)
Other receivables - non-current	125
Trade payables and accrued liabilities	(126)
Deferred income tax liabilities	(3,457)
Reclamation and remediation provision	(6,534)
Other liabilities and provisions	(76)
Net identifiable assets acquired	(38,682)
Goodwill	$ 38,682

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ACQUISITION OF BEADELL RESOURCES LIMITED - Amounts previously reported together with the revised amounts as if the accounting for the business combination had been accounted for as at Acquisition date (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about business combination [line items]
Revenue	$ 132,974	$ 260,805	$ 198,653
Cost of sales
Production costs	99,547	136,633	157,137
Amortization and depletion	21,299	40,305	34,671
Share-based compensation	238
General and administrative expenses	8,574	12,926	17,557
Exploration, evaluation, and development expenses	10,148	13,295	24,026
Impairment of goodwill	38,682		38,682
Business acquisition costs	2,863		2,923
Care and maintenance costs	599	693	795
Finance and other expense	13,088	(52,828)	(13,140)
Loss before income taxes	(62,064)	4,125	(90,278)
Income tax expense	891	3,791	744
Net loss for the year	(62,955)	$ 334	$ (91,022)
Preliminary Purchase Price Allocation
Disclosure of detailed information about business combination [line items]
Revenue	132,974
Cost of sales
Production costs	97,051
Amortization and depletion	21,238
Share-based compensation	238
General and administrative expenses	8,574
Exploration, evaluation, and development expenses	10,148
Business acquisition costs	2,863
Care and maintenance costs	599
Finance and other expense	12,280
Loss before income taxes	(20,017)
Income tax expense	891
Net loss for the year	(20,908)
Adjustments
Cost of sales
Production costs	2,496
Amortization and depletion	61
Impairment of goodwill	38,682
Finance and other expense	808
Loss before income taxes	(42,047)
Net loss for the year	$ (42,047)

XML

ACQUISITION OF BEADELL RESOURCES LIMITED - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands				1 Months Ended	12 Months Ended
	Jul. 11, 2019	Mar. 05, 2019	Dec. 05, 2018	Feb. 28, 2019	Dec. 31, 2019
Disclosure of detailed information about business combination [line items]
Cash advance					$ 354
Closing share price		$ 0.90
BEADELL RESOURCES LIMITED [Member]
Disclosure of detailed information about business combination [line items]
Percentage of voting equity interests acquired		100.00%
Number of shares issued on acquistion		103,593,043
Percetntage of post acquisition shares issued and outstanding		38.00%
Share exchange ratio		0.0619
Number of share purchase warrants issued		9,749,727
Excercise Share Price		$ 1.317
Payment of acquisition cost		$ 2,923
Non-revolving Term Loan			$ 5,000
Repayment of principal amount received			3,000
Payment of accrued interest received			69
Cash advance	$ 2,000		$ 2,370	$ 354
Revenue					228,691
Profit (loss) of acquiree since acquisition date					$ 96,124

XML

TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
TRADE AND OTHER RECEIVABLES
Trade receivables	$ 2,011	$ 4,605
Value-added tax receivables	3,839	4,894
PIS / COFINS - Brazil (a)	8,732	10,889
Judicial Deposit - Brazil (b)	302	389
Other	760	979
Total trade and other receivables	15,644	21,756
PIS / COFINS Brazil (a)	9,058	8,988
Income taxes recoverable - Brazil	2,764	1,152
Other	14	15
Non-current restricted cash and cash equivalents	$ 11,836	$ 10,155

XML

TRADE AND OTHER RECEIVABLES - Additional informaton (Details)	12 Months Ended
	Dec. 31, 2020
TRADE AND OTHER RECEIVABLES
Percentage of rate on Program of Social Integration.	1.65
Percentage of rates on contribution for the financing of Social Security	7.65%

XML

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
INVENTORIES
Concentrate	$ 578	$ 968
Ore stockpiles	11,562	15,417
Materials and supplies	18,538	15,400
Gold in circuit	1,266	902
Gold bullion	1,794	2,430
Silver bullion	5	3
Total inventories	$ 33,743	$ 35,120

XML

INVENTORIES - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
INVENTORIES
Inventory recognized as cost of sales	$ 161.8	$ 154.1

XML

OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
OTHER CURRENT ASSETS
Prepaid expenses and deposits	$ 3,569	$ 818
Reimbursement rights (note 11(a))	1,918	6,465
Derivative assets (note 14)		3,454
Marketable securities	1	1
Other current assets	187	642
Total other current assets	$ 5,675	$ 11,380

XML

MINERAL PROPERTIES, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	$ 133,810
Additions	890	$ 4,498
Property, plant and equipment at end of period	110,559	133,810
At cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	235,627	79,960
Acquisition of Beadell		132,052
Additions	42,838	30,408
Change in reclamation provision	3,204	3,026
Disposals		(265)
Foreign exchange translation difference	(35,348)	(9,554)
Property, plant and equipment at end of period	246,321	235,627
Accumulated depreciation and amortisation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	101,817	65,418
Amortization and depletion	41,044	36,691
Disposals		(232)
Foreign exchange translation difference	(7,099)	(60)
Property, plant and equipment at end of period	135,762	101,817
Mineral Properties Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	19,273
Property, plant and equipment at end of period	34,537	19,273
Mineral Properties Depletable [Member] | At cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	58,237	36,066
Acquisition of Beadell		3,676
Additions	32,754	16,346
Change in reclamation provision	3,546	2,996
Foreign exchange translation difference	(6,375)	(847)
Property, plant and equipment at end of period	88,162	58,237
Mineral Properties Depletable [Member] | Accumulated depreciation and amortisation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	38,964	32,051
Amortization and depletion	15,790	6,820
Foreign exchange translation difference	(1,129)	93
Property, plant and equipment at end of period	53,625	38,964
Mineral Properties Non-Depletable [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	43,186
Property, plant and equipment at end of period	33,869	43,186
Mineral Properties Non-Depletable [Member] | At cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	43,186
Acquisition of Beadell		46,608
Foreign exchange translation difference	(9,317)	(3,422)
Property, plant and equipment at end of period	33,869	43,186
Mineral properties, plant and equipment
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	38,566
Property, plant and equipment at end of period	19,163	38,566
Mineral properties, plant and equipment | At cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	83,335	35,184
Acquisition of Beadell		46,726
Additions	3,499	4,401
Change in reclamation provision	(342)	30
Disposals		(185)
Foreign exchange translation difference	(10,411)	(2,281)
Property, plant and equipment at end of period	76,081	83,335
Mineral properties, plant and equipment | Accumulated depreciation and amortisation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	44,769	27,593
Amortization and depletion	15,435	17,434
Disposals		(185)
Foreign exchange translation difference	(3,286)	(73)
Property, plant and equipment at end of period	56,918	44,769
Land and buildings [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	16,822
Property, plant and equipment at end of period	14,454	16,822
Land and buildings [member] | At cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	22,548	2,573
Acquisition of Beadell		16,145
Additions	5,692	4,940
Disposals		(3)
Foreign exchange translation difference	(4,443)	(1,107)
Property, plant and equipment at end of period	23,797	22,548
Land and buildings [member] | Accumulated depreciation and amortisation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	5,726	1,653
Amortization and depletion	4,508	4,095
Foreign exchange translation difference	(891)	(22)
Property, plant and equipment at end of period	9,343	5,726
Furniture, fixtures and equipment [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	1,087
Property, plant and equipment at end of period	574	1,087
Furniture, fixtures and equipment [member] | At cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	5,636	4,987
Acquisition of Beadell		500
Additions	3	223
Disposals		(44)
Foreign exchange translation difference	(132)	(30)
Property, plant and equipment at end of period	5,507	5,636
Furniture, fixtures and equipment [member] | Accumulated depreciation and amortisation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	4,549	4,121
Amortization and depletion	430	464
Disposals		(41)
Foreign exchange translation difference	(46)	5
Property, plant and equipment at end of period	4,933	4,549
Right Of Use Asssets [Member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	14,876
Property, plant and equipment at end of period	7,962	14,876
Right Of Use Asssets [Member] | At cost [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	22,685	1,150
Acquisition of Beadell		18,397
Additions	890	4,498
Disposals		(33)
Foreign exchange translation difference	(4,670)	(1,327)
Property, plant and equipment at end of period	18,905	22,685
Right Of Use Asssets [Member] | Accumulated depreciation and amortisation [member]
Disclosure of detailed information about property, plant and equipment [line items]
Property, plant and equipment at beginning of period	7,809
Amortization and depletion	4,881	7,878
Disposals		(6)
Foreign exchange translation difference	(1,747)	(63)
Property, plant and equipment at end of period	$ 10,943	$ 7,809

XML

MINERAL PROPERTIES, PLANT AND EQUIPMENT (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Right-of-use assets
Beginning balance	$ 14,876	$ 1,150
Acquisition of Beadell (note 5)		18,397
Additions	890	4,498
Disposals		27
Amortization and depletion	(4,881)	(7,878)
Foreign exchange translation difference	(2,923)	(1,264)
Ending balance	7,962	14,876
Lease liabilities
Total undiscounted lease liabilities	11,428	19,388
Lease liabilities in the Consolidated Statement of Financial Position	11,221	17,986
Current (note 12 (a))	5,296	5,499
Non-current (note 12 (b))	5,925	12,487
Interest on lease liabilities	1,332	1,564
Variable lease payments not included in the measurement of lease liabilities	49,723	43,889
Expenses relating to short-term leases	15,564	12,953
Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets	11	13
Less than one year
Lease liabilities
Total undiscounted lease liabilities	5,855	6,707
One to five years
Lease liabilities
Total undiscounted lease liabilities	5,475	12,558
More than five years
Lease liabilities
Total undiscounted lease liabilities	98	123
Mining property [member]
Right-of-use assets
Beginning balance	7,376
Acquisition of Beadell (note 5)		8,402
Additions	801	3,853
Amortization and depletion	(2,663)	(4,244)
Foreign exchange translation difference	(1,589)	(635)
Ending balance	3,925	7,376
Power generating assets [member]
Right-of-use assets
Beginning balance	5,035
Acquisition of Beadell (note 5)		7,732
Additions		57
Amortization and depletion	(1,437)	(2,264)
Foreign exchange translation difference	(1,090)	(490)
Ending balance	2,508	5,035
Vehicles [member]
Right-of-use assets
Beginning balance	1,095
Acquisition of Beadell (note 5)		1,923
Amortization and depletion	(378)	(707)
Foreign exchange translation difference	(241)	(121)
Ending balance	476	1,095
Communication and network equipment [member]
Right-of-use assets
Beginning balance	658	881
Acquisition of Beadell (note 5)		340
Additions	89
Disposals		27
Amortization and depletion	(266)	(518)
Foreign exchange translation difference	(3)	(18)
Ending balance	478	658
Land [member]
Right-of-use assets
Beginning balance	712	269
Additions		588
Amortization and depletion	(137)	(145)
Ending balance	$ 575	$ 712

XML

MINERAL PROPERTIES, PLANT AND EQUIPMENT - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about property, plant and equipment [line items]
Expenses relating to short-term leases	$ 15,564	$ 12,953
Short-term lease payment related to mining services	$ 14,500	$ 11,900
Guanajuato Mine Complex [Member] | Mining property [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life	2 years	2 years
Increased useful life	1 year
Tucano [Member] | Mining property [member]
Disclosure of detailed information about property, plant and equipment [line items]
Useful life	3 years	2 years
Increased useful life	2 years

XML

EXPLORATION AND EVALUATION ASSETS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about intangible assets [line items]
Exploration and evaluation assets, beginning of period	$ 15,659	$ 15,065
Acquisition of Beadell (note 5)		309
Change in reclamation and remediation provision	10,739	304
Foreign exchange translation difference	(64)	(19)
Exploration and evaluation assets, end of period	26,334	15,659
Santa Rosa Property [Member]
Disclosure of detailed information about intangible assets [line items]
Exploration and evaluation assets, beginning of period	988	988
Exploration and evaluation assets, end of period	988	988
El Horcon Property [Member]
Disclosure of detailed information about intangible assets [line items]
Exploration and evaluation assets, beginning of period	1,124	1,124
Exploration and evaluation assets, end of period	1,124	1,124
Coricancha [Member]
Disclosure of detailed information about intangible assets [line items]
Exploration and evaluation assets, beginning of period	13,257	12,953
Change in reclamation and remediation provision	10,739	304
Exploration and evaluation assets, end of period	23,996	13,257
Tucano [Member]
Disclosure of detailed information about intangible assets [line items]
Exploration and evaluation assets, beginning of period	290
Acquisition of Beadell (note 5)		309
Foreign exchange translation difference	(64)	(19)
Exploration and evaluation assets, end of period	$ 226	$ 290

XML

OTHER ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
OTHER ASSETS
Restricted cash	$ 31	$ 927
Reimbursement rights	12,178	4,705
Deferred tax assets		145
Other assets	$ 12,209	$ 5,777

XML

OTHER ASSETS - Additional Information (Details) - Nyrstar N. V. [Member] - USD ($) $ in Millions	Dec. 31, 2020	Jun. 30, 2017
Disclosure of reimbursement rights [line items]
Outstanding fines or sanctions settled		$ 4.0
Maximum
Disclosure of reimbursement rights [line items]
Reclamation funds available	$ 20.0
Outstanding fines or sanctions settled		$ 4.0

XML

TRADE PAYABLES AND ACCRUED LIABILITIES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
TRADE PAYABLES AND ACCRUED LIABILITIES AND OTHER LIABILITIES
Trade payables	$ 27,478	$ 27,311
Accrued liabilities	14,758	13,181
Taxes payable	3,306	499
Lease liabilities	5,296	5,499
Other payables	2,383	3,043
Total trade and other current payables	53,221	49,533
Lease liabilities	5,925	12,487
Accrued liabilities	192	4,591
Total trade and other non-current payables	$ 6,117	$ 17,078

XML

BORROWINGS (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about borrowings [line items]
Beginning balance	$ 42,693
Borrowings	36,013
Interest accrued	2,694
Principal repayments	(44,836)
Interest payments	(3,019)
Foreign exchange	(147)
Closing balance	33,398
Current	30,933
Non-current	2,465	$ 4,627
MACA Limited loan
Disclosure of detailed information about borrowings [line items]
Beginning balance	16,060
Borrowings	0
Interest accrued	449
Principal repayments	(12,686)
Interest payments	(628)
Foreign exchange	(185)
Closing balance	3,010
Current	3,010
Non-current	$ 0
Nominal interest rate	5.50%
Unsecured bank facilities
Disclosure of detailed information about borrowings [line items]
Beginning balance	$ 16,034
Borrowings	22,044
Interest accrued	891
Principal repayments	(20,500)
Interest payments	(953)
Foreign exchange	0
Closing balance	17,516
Current	17,516
Non-current	$ 0
Nominal interest rate	5.40%
Bank overdraft
Disclosure of detailed information about borrowings [line items]
Beginning balance	$ 589
Borrowings	219
Principal repayments	(846)
Interest payments	0
Foreign exchange	38
Closing balance	0
Current	0
Non-current	$ 0
Nominal interest rate	13.70%
IXM Note
Disclosure of detailed information about borrowings [line items]
Beginning balance	$ 10,010
Borrowings	0
Interest accrued	548
Principal repayments	(10,000)
Interest payments	(558)
Foreign exchange	0
Closing balance	0
Current	0
Non-current	$ 0
Nominal interest rate	5.00%
Bradesco
Disclosure of detailed information about borrowings [line items]
Borrowings	$ 2,500
Interest accrued	223
Principal repayments	0
Interest payments	(319)
Foreign exchange	0
Closing balance	2,404
Current	736
Non-current	$ 1,668
Nominal interest rate	3.70%
Samsung
Disclosure of detailed information about borrowings [line items]
Borrowings	$ 11,250
Interest accrued	583
Principal repayments	(804)
Interest payments	(561)
Foreign exchange	0
Closing balance	10,468
Current	9,671
Non-current	$ 797
Nominal interest rate	5.00%
Adjustment to nominal interest rate basis	5.00%

XML

BORROWINGS (Details) - Additional Information $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) oz	Dec. 31, 2019 USD ($)	Mar. 11, 2020 USD ($)	Jan. 06, 2020 USD ($)
Disclosure of detailed information about borrowings [line items]
Outstanding loan	$ 33,398	$ 42,693
Net proceeds from borrowings	36,013	32,210
MACA Limited loan
Disclosure of detailed information about borrowings [line items]
Outstanding loan	$ 3,010	16,060
Interest Rate	5.50%
Unsecured bank facilities
Disclosure of detailed information about borrowings [line items]
Outstanding loan	$ 17,516	$ 16,034
Weighted average fixed interest rate (as a percent)	5.40%
Matured borrowings	$ 1,400
Interest Rate	5.40%
Bradesco
Disclosure of detailed information about borrowings [line items]
Outstanding loan	$ 2,404		$ 10,000
Net proceeds from borrowings	2,500
Cash collateral amount	7,500
Quarterly repayments of borrowings	1,100
Quarterly repayments of Cash Collateral amount	300
Principal amount	$ 10,000
Interest Rate	3.70%
Gross borrowings	$ 10,000
Bradesco | Minimum
Disclosure of detailed information about borrowings [line items]
Interest rate on cash collateral amount	1.55
Bradesco | Maximum
Disclosure of detailed information about borrowings [line items]
Interest rate on cash collateral amount	2.40
Samsung
Disclosure of detailed information about borrowings [line items]
Outstanding loan	$ 10,468			$ 11,300
Adjustment to nominal interest rate basis	5.00%
Interest Rate	5.00%
Consideration of delivery and sale of gold units | oz	3,000
Loans and advances	$ 11,300
Discount rate	0.65%
Advances to be repaid in equal installments	$ 800
Penalty on Early Repayment of Advances	3.00%

XML

DERIVATIVE INSTRUMENTS (Details) R$ in Millions	12 Months Ended
	Dec. 31, 2020 BRL (R$)	Dec. 31, 2019 BRL (R$)	Dec. 31, 2020 USD ($) $ / R$	Dec. 31, 2019 USD ($)
Disclosure of detailed information about hedges [line items]
Non deliverable forward foreign exchange contract | R$	R$ 88.2	R$ 418.2
At fair value [member]
Disclosure of detailed information about hedges [line items]
Prices specified in forward agreements to purchase financial assets for cash			$ 3,000,000	$ 3,500,000
Minimum
Disclosure of detailed information about hedges [line items]
Closing foreign exchange rate | $ / R$			4.37
Maximum
Disclosure of detailed information about hedges [line items]
Prices specified in forward agreements to purchase financial assets for cash			$ 4.45

XML

RECLAMATION AND REMEDIATION PROVISIONS (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Disclosure of other provisions [line items]
Total provision for decommissioning, restoration and rehabilitation costs	$ 68,325	$ 55,574	$ 27,420
Current Reclamation and remediation provision	958	4,927
Non-current Reclamation and remediation provision	67,367	50,647
Tucano [Member]
Disclosure of other provisions [line items]
Total provision for decommissioning, restoration and rehabilitation costs	15,241	17,079
Non-current Reclamation and remediation provision	15,241	17,079
Guanajuato Mine Complex [Member]
Disclosure of other provisions [line items]
Total provision for decommissioning, restoration and rehabilitation costs	8,184	8,725
Current Reclamation and remediation provision	348
Non-current Reclamation and remediation provision	7,836	8,725
Coricancha Mining Complex [Member]
Disclosure of other provisions [line items]
Total provision for decommissioning, restoration and rehabilitation costs	38,299	25,073
Current Reclamation and remediation provision	610	4,927
Non-current Reclamation and remediation provision	37,689	20,146
Topia Mine [Member]
Disclosure of other provisions [line items]
Total provision for decommissioning, restoration and rehabilitation costs	6,601	4,697
Non-current Reclamation and remediation provision	$ 6,601	$ 4,697

XML

RECLAMATION AND REMEDIATION PROVISIONS - Reclamation and remediation provision roll-forward (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
RECLAMATION AND REMEDIATION PROVISIONS
Reclamation and remediation provision, beginning balance	$ 55,574	$ 27,420
Acquisition of Beadell (note 5)		12,909
Change in estimates	16,607	13,389
Accretion expense	1,517	1,840
Reclamation work performed	(902)
Foreign exchange	4,471	(16)
Reclamation and remediation provision, ending balance	$ 68,325	$ 55,574

XML

RECLAMATION AND REMEDIATION PROVISIONS - Assumptions (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
GMC and Topia operations [Member]
Disclosure of other provisions [line items]
Total estimated cash flows, before inflation	$ 18,895	$ 15,745
Coricancha Mining Complex [Member]
Disclosure of other provisions [line items]
Total estimated cash flows, before inflation	$ 42,725	$ 33,795
Weighted average risk-free rate (discount rate)	0.80%	3.40%
Guanajuato Mine Complex [Member]
Disclosure of other provisions [line items]
Weighted average risk-free rate (discount rate)	4.60%	1.90%
Topia Mine [Member]
Disclosure of other provisions [line items]
Weighted average risk-free rate (discount rate)	4.80%	2.10%
Tucano [Member]
Disclosure of other provisions [line items]
Total estimated cash flows, before inflation	$ 22,594	$ 19,731
Weighted average risk-free rate (discount rate)	6.70%
Minimum | GMC and Topia operations [Member]
Disclosure of other provisions [line items]
Expected settlement of obligations (years)	2021	2021
Minimum | Coricancha Mining Complex [Member]
Disclosure of other provisions [line items]
Expected settlement of obligations (years)	2021	2020
Minimum | Tucano [Member]
Disclosure of other provisions [line items]
Expected settlement of obligations (years)	2024
Maximum | GMC and Topia operations [Member]
Disclosure of other provisions [line items]
Expected settlement of obligations (years)	2043	2045
Maximum | Coricancha Mining Complex [Member]
Disclosure of other provisions [line items]
Expected settlement of obligations (years)	2049	2049
Maximum | Tucano [Member]
Disclosure of other provisions [line items]
Expected settlement of obligations (years)	2029

XML

RECLAMATION AND REMEDIATION PROVISIONS - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of other provisions [line items]
Change in estimates	$ 16,607	$ 13,389
GMC and Topia operations [Member]
Disclosure of other provisions [line items]
Percentage change in the discount rate	1.00%
Increase (decrease) through change in discount rate, reclamation and remediation provision	$ 600
Coricancha Mining Complex [Member]
Disclosure of other provisions [line items]
Change in estimates	13,700	600
Reimbursable amount	$ 12,200
Percentage change in the discount rate	1.00%
Increase (decrease) through change in discount rate, reclamation and remediation provision	$ 3,000
Tucano [Member]
Disclosure of other provisions [line items]
Change in estimates	$ 1,000	2,900
Percentage change in the discount rate	1.00%
Increase (decrease) through change in discount rate, reclamation and remediation provision	$ 700
Guanajuato Mine Complex [Member]
Disclosure of other provisions [line items]
Change in estimates	300	6,700
Topia Mine [Member]
Disclosure of other provisions [line items]
Change in estimates	$ 2,200	$ 3,200

XML

SHARE CAPITAL (Details) Unit14 in Thousands	12 Months Ended
	Dec. 31, 2020 $ / shares	Dec. 31, 2019 $ / shares
SHARE CAPITAL
Number of share options outstanding in share-based payment arrangement at beginning of period	8,316	8,322
Weighted average exercise price of share options outstanding in share-based payment arrangement at beginning of period	$ 1.20	$ 1.27
Number of share options granted in share-based payment arrangement	6,255	3,491
Weighted average exercise price of share options granted in share-based payment arrangement	$ 0.56	$ 1.01
Number of share options forfeited in share-based payment arrangement	(3,582)	(2,580)
Weighted average exercise price of share options forfeited in share-based payment arrangement	$ 0.78	$ 1.33
Number of share options exercised in share-based payment arrangement	(1,280)	(917)
Weighted average exercise price of share options exercised in share-based payment arrangement	$ 0.74	$ 0.73
Number of share options outstanding in share-based payment arrangement at end of period	9,709	8,316
Weighted average exercise price of share options outstanding in share-based payment arrangement at end of period	$ 1.00	$ 1.20
Number of share options exercisable in share-based payment arrangement	3,355	5,210
Weighted average exercise price of share options exercisable in share-based payment arrangement	$ 1.65	$ 1.24

XML

SHARE CAPITAL - Options by exercise price (Details) $ / shares in Units, Unit14 in Thousands, $ in Millions	12 Months Ended
	Dec. 31, 2020 $ / shares	Dec. 31, 2020 USD ($) $ / shares	Dec. 31, 2019 USD ($) $ / shares	Dec. 31, 2018
Disclosure of classes of share capital [line items]
Number of share options outstanding in share-based payment arrangement	9,709	9,709	8,316	8,322
Weighted average remaining contractual life of outstanding share options		0 years
Number of share options exercisable in share-based payment arrangement	3,355	3,355	5,210
Weighted average fair value of options granted in period | (per share)	$ 1.65	$ 0.23	$ 0.38
Share-based compensation expense for share options | $		$ 0.7	$ 0.6
C$0.54 to $0.61
Disclosure of classes of share capital [line items]
Number of share options outstanding in share-based payment arrangement	4,552	4,552
Weighted average remaining contractual life of outstanding share options		0 years
C$0.62 to $1.07
Disclosure of classes of share capital [line items]
Number of share options outstanding in share-based payment arrangement	2,080	2,080
Weighted average remaining contractual life of outstanding share options		0 years
Number of share options exercisable in share-based payment arrangement	526	526
Weighted average fair value of options granted in period	$ 0.97
C$1.08 to $1.59
Disclosure of classes of share capital [line items]
Number of share options outstanding in share-based payment arrangement	641	641
Weighted average remaining contractual life of outstanding share options		0 years
Number of share options exercisable in share-based payment arrangement	522	522
Weighted average fair value of options granted in period	$ 1.37
C$1.60 to $1.90
Disclosure of classes of share capital [line items]
Number of share options outstanding in share-based payment arrangement	1,379	1,379
Weighted average remaining contractual life of outstanding share options		0 years
Number of share options exercisable in share-based payment arrangement	1,250	1,250
Weighted average fair value of options granted in period	$ 1.61
C$1.91 to $2.19
Disclosure of classes of share capital [line items]
Number of share options outstanding in share-based payment arrangement	1,057	1,057
Weighted average remaining contractual life of outstanding share options		0 years
Number of share options exercisable in share-based payment arrangement	1,057	1,057
Weighted average fair value of options granted in period	$ 2.18

XML

SHARE CAPITAL - Assumptions (Details)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
SHARE CAPITAL
Risk-free interest rate	0.45%	1.36%
Expected life (years)	3 years 1 month 10 days	3 years 18 days
Annualized volatility	62.00%	54.00%
Forfeiture rate	17.00%	15.00%

XML

SHARE CAPITAL - DSUs and RSUs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Deferred share units [Member]
Disclosure of classes of share capital [line items]
Number of units outstanding, beginning of period	946,150	251,400
Units outstanding, weighted average grant date fair value, beginning of period	$ 1.19	$ 1.59
Units granted in period	2,167,939	732,550
Units granted in period, weighted average grant date fair value	$ 0.57	$ 1.05
Number Of Units Settled	(693,900)	(37,800)
Units Settled In Period Weighted Average Grant Date Fair Value	$ 0.69	$ 1.16
Number of units outstanding, end of period	2,420,189	946,150
Units outstanding, weighted average grant date fair value, end of period	$ 0.78	$ 1.19
Performance Share Units [Member]
Disclosure of classes of share capital [line items]
Number of units outstanding, beginning of period	531,000
Units outstanding, weighted average grant date fair value, beginning of period	$ 1.14
Units granted in period	1,510,700	531,000
Units granted in period, weighted average grant date fair value	$ 0.56	$ 1.14
Units cancelled in period	(137,200)
Units cancelled in period, weighted average grant date fair value	$ 0.89
Number of units outstanding, end of period	1,904,500	531,000
Units outstanding, weighted average grant date fair value, end of period	$ 0.70	$ 1.14
Restricted share units [Member]
Disclosure of classes of share capital [line items]
Number of units outstanding, beginning of period	1,243,530	733,667
Units outstanding, weighted average grant date fair value, beginning of period	$ 1.19	$ 1.59
Units granted in period	1,636,000	2,429,640
Units granted in period, weighted average grant date fair value	$ 0.56	$ 1.02
Number Of Units Settled	(779,596)	(1,187,459)
Units Settled In Period Weighted Average Grant Date Fair Value	$ 1.10	$ 1.14
Units cancelled in period	(188,500)	(732,318)
Units cancelled in period, weighted average grant date fair value	$ 1.02	$ 1.16
Number of units outstanding, end of period	1,911,434	1,243,530
Units outstanding, weighted average grant date fair value, end of period	$ 0.70	$ 1.19

XML

SHARE CAPITAL - Loss per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
SHARE CAPITAL
Income (loss) attributable to equity owners	$ (62,955)	$ 334	$ (91,022)
Weighted average number of shares (000's)		337,834	273,380
Earnings (loss) per share - basic		$ 0.00	$ (0.33)
Incremental shares from options		6,362
Weighted average diluted number of shares (000's)		344,196	273,380
Earnings (loss) per share - diluted		$ 0.00	$ (0.33)

XML

SHARE CAPITAL - Additional Information (Details) $ / shares in Units, $ in Thousands						9 Months Ended	12 Months Ended
	Jun. 27, 2022 shares	May 17, 2022 shares	May 20, 2020 USD ($) shares	Aug. 08, 2019 USD ($) shares	Jul. 09, 2019 USD ($)	Sep. 30, 2019 USD ($)	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($)
Disclosure of classes of share capital [line items]
Expense from share-based payment transactions with employees						$ 238
At-the-Market Offering Agreement [Member]
Disclosure of classes of share capital [line items]
Number of shares issued | shares			40,250,000	23,000,000
Percentage of sale Of Stock					10.00%
Gross Proceeds From Issuing of Shares			$ 16,100	$ 17,300	$ 25,000
Share price.			0.40%	0.75%
Percentage of Commission Paid On Gross Proceeds			6	5
Proceeds from issuing shares			$ 14,700	$ 15,900
Omnibus Plan [Member]
Disclosure of classes of share capital [line items]
Duration in which options will cease to be exercisable							3 months
Omnibus Plan [Member] | Maximum
Disclosure of classes of share capital [line items]
Expiry duration							10 years
Plan 2016 [Member]
Disclosure of classes of share capital [line items]
Duration in which options will cease to be exercisable							90 days
Plan 2016 [Member] | Maximum
Disclosure of classes of share capital [line items]
Outstanding common stock (as a percentage)							10.00%
Expiry duration							5 years
Percentage limit an employee can own of outstanding shares							5.00%
Ordinary shares [member] | Omnibus Plan [Member] | Maximum
Disclosure of classes of share capital [line items]
Outstanding common stock (as a percentage)							8.00%
Preference shares [member]
Disclosure of classes of share capital [line items]
Number of shares issued | shares							0
Warrants [Member]
Disclosure of classes of share capital [line items]
Warrants, grants in period, exercise price | $ / shares							$ 1.317
Warrants issued | shares	3,428,032	6,321,965					9,749,727
Restricted Share Units and Deferred Share Units [Member]
Disclosure of classes of share capital [line items]
Expense from share-based payment transactions with employees							$ 1,400	$ 1,200
Performance Share Units [Member]
Disclosure of classes of share capital [line items]
Expense from share-based payment transactions with employees							$ 400	$ 0
Performance Share Units [Member] | Maximum
Disclosure of classes of share capital [line items]
Vesting period							3 years
Percentage Of Units Vested							200.00%
Performance Share Units [Member] | Minimum
Disclosure of classes of share capital [line items]
Percentage Of Units Vested							0.00%

XML

REVENUE (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Disclosure of disaggregation of revenue from contracts with customers [line items]
Smelting and refining charges		$ (4,100)	$ (3,724)
Revenue from contracts with customers		260,348	198,205
Changes in fair value from provisional pricing		457	448
Total revenue	$ 132,974	260,805	198,653
Brazil
Disclosure of disaggregation of revenue from contracts with customers [line items]
Smelting and refining charges		(69)	(200)
Revenue from contracts with customers		223,690	153,397
Total revenue		223,690	153,397
MEXICO
Disclosure of disaggregation of revenue from contracts with customers [line items]
Smelting and refining charges		(4,031)	(3,524)
Revenue from contracts with customers		36,658	44,808
Changes in fair value from provisional pricing		457	448
Total revenue		37,115	45,256
Gold [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		236,113	170,228
Gold [Member] | Brazil
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		223,272	153,504
Gold [Member] | MEXICO
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		12,841	16,724
Silver [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		22,960	23,121
Silver [Member] | Brazil
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		487	93
Silver [Member] | MEXICO
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		22,473	23,028
Lead [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		2,180	3,617
Lead [Member] | MEXICO
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		2,180	3,617
Zinc [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		3,161	4,861
Zinc [Member] | MEXICO
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		3,161	4,861
Ore processing revenue
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		34	102
Ore processing revenue | MEXICO
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		$ 34	$ 102

XML

REVENUE - Revenue by customer (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Disclosure of disaggregation of revenue from contracts with customers [line items]
Total revenue	$ 132,974	$ 260,805	$ 198,653
Revenue from contracts with customers		260,348	198,205
Customers A [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		122,303
Customers B [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		64,426
Customers C [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		36,961	153,397
Customers D [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		21,281	2,549
Customers E [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		13,950
Customers F [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		(9)	18,445
Customers F Two [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		(110)	19,892
Customers G [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers			2,571
Customers G Two [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		1,969	1,697
Customers H [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Revenue from contracts with customers		$ 34	$ 102

XML

REVENUE - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($) customer	Dec. 31, 2019 USD ($) customer
Disclosure of disaggregation of revenue from contracts with customers [line items]
Trade receivables	$ 2,011	$ 4,605
Revenue from performance obligations satisfied or partially satisfied in previous periods	$ 200
Customers with revenue contract | customer	5	3
Provisional Pricing [Member]
Disclosure of disaggregation of revenue from contracts with customers [line items]
Contract with Customer Liabilities Revenue Subject to Provisional Pricing	$ 2,500

XML

PRODUCTION COSTS (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Disclosure of products and services [line items]
Production Cost Before Change In Inventories		$ 135,009	$ 147,115
Less: Change in inventories		1,624	10,022
Production Expenses	$ 99,547	136,633	157,137
Unabsorbed fixed costs		1,500
Raw Materials And Consumables [Member]
Disclosure of products and services [line items]
Production Cost Before Change In Inventories		51,826	58,046
Salaries And Employee Benefits [Member]
Disclosure of products and services [line items]
Production Cost Before Change In Inventories		16,321	17,403
Contractors [Member]
Disclosure of products and services [line items]
Production Cost Before Change In Inventories		55,315	58,952
Repairs And Maintenance [Member]
Disclosure of products and services [line items]
Production Cost Before Change In Inventories		1,171	801
Site Administration [Member]
Disclosure of products and services [line items]
Production Cost Before Change In Inventories		3,962	3,815
Royalties [Member]
Disclosure of products and services [line items]
Production Cost Before Change In Inventories		5,918	7,572
Mining Duties [Member]
Disclosure of products and services [line items]
Production Cost Before Change In Inventories		160	168
Share Based Compensation [Member]
Disclosure of products and services [line items]
Production Cost Before Change In Inventories		$ 336	$ 358

XML

GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Disclosure of products and services [line items]
Total selling, general and administrative expense	$ 8,574	$ 12,926	$ 17,557
Salaries And Employee Benefits [Member]
Disclosure of products and services [line items]
Total selling, general and administrative expense		4,042	5,617
Professional Fees [Member]
Disclosure of products and services [line items]
Total selling, general and administrative expense		1,674	1,707
Office And Other Expenses [Member]
Disclosure of products and services [line items]
Total selling, general and administrative expense		4,758	8,397
Amortization [Member]
Disclosure of products and services [line items]
Total selling, general and administrative expense		446	514
Share Based Compensation [Member]
Disclosure of products and services [line items]
Total selling, general and administrative expense		$ 2,006	$ 1,322

XML

EXPLORATION AND EVALUATION EXPENSES (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of products and services [line items]
Total exploration, evaluation, and development expenses	$ 10,370	$ 12,787
Salaries And Employee Benefits [Member]
Disclosure of products and services [line items]
Total exploration, evaluation, and development expenses	2,223	2,878
Raw Materials And Consumables [Member]
Disclosure of products and services [line items]
Total exploration, evaluation, and development expenses	892	1,237
Professional Fees [Member]
Disclosure of products and services [line items]
Total exploration, evaluation, and development expenses	4,411	5,978
Office And Other Expenses [Member]
Disclosure of products and services [line items]
Total exploration, evaluation, and development expenses	2,724	2,648
Share Based Compensation [Member]
Disclosure of products and services [line items]
Total exploration, evaluation, and development expenses	$ 120	$ 46

XML

IMPAIRMENT OF GOODWILL (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2019
IMPAIRMENT OF GOODWILL
Impairment of goodwill	$ 38,682	$ 38,682

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OTHER INCOME (EXPENSE) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
OTHER INCOME (EXPENSE)
Accretion expense	$ (2,629)	$ (3,404)
Gain (loss) on derivative instruments	(27,980)	2,353
Foreign exchange loss	(16,397)	(3,852)
Other expense	(2,188)	(3,211)
Other income (expense)	$ (49,194)	$ (8,114)

XML

INCOME TAXES (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Current expense		$ 3,647	$ 562
Deferred tax expense (recovery):		144	182
Income tax expense	$ 891	3,791	744
Income tax [Member]
Income Taxes [Line Items]
Current expense		3,647	135
Deferred tax expense (recovery):		$ 144	78
Withholding tax [Member]
Income Taxes [Line Items]
Current expense			427
Deferred tax expense (recovery):			$ 104

XML

INCOME TAXES - Reconciliation of effective rate (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Net income (loss) before tax		$ 4,125	$ (90,278)
Canadian statutory income tax rate		27.00%	27.00%
Anticipated income tax at statutory rate		$ 1,115	$ (24,181)
Permanent differences		(2,084)	11,750
Differences between Canadian and foreign tax rates		3,144	(3,035)
Change in estimate		1,668	53
Impact of foreign exchange on local currencies		2,739	3,087
Change in deferred tax assets not recognized		(2,451)	13,425
Other items		(340)	(355)
Income tax expense	$ 891	$ 3,791	$ 744
Effective tax rate		92.00%	(1.00%)

XML

INCOME TAXES - Deferred income tax assets and liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Deferred income tax assets		$ 49
Deferred special mining duty asset (liabilities)		96
Total deferred income tax assets		145
Deferred income tax liabilities	$ (2,488)	(3,208)
Deferred withholding tax liabilities	(2,194)	(2,157)
Total deferred income tax liabilities	(4,682)	(5,365)
Net deferred income tax assets (liabilities)	$ (4,682)	$ (5,220)

XML

INCOME TAXES - Temporary differences and tax losses (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Deferred income tax assets		$ 145
Deferred tax liabilities	$ (2,194)	(2,157)
Net deferred income tax liabilities	(4,682)	(5,220)
Tax losses carried forward
Income Taxes [Line Items]
Deferred income tax assets	18,968	19,394
Withholding tax liability [Member]
Income Taxes [Line Items]
Deferred tax liabilities	(2,194)	(2,157)
Mineral properties, plant and equipment
Income Taxes [Line Items]
Deferred tax liabilities	(20,298)	(24,557)
Other Taxable Temporary Differences [Member]
Income Taxes [Line Items]
Deferred tax liabilities	$ (1,158)	(220)
Other deductible temporary differences
Income Taxes [Line Items]
Deferred income tax assets		$ 2,320

XML

INCOME TAXES - Losses expire (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Deferred tax assets		$ 145
Noncapital Losses In Canada [Member]
Income Taxes [Line Items]
Deferred tax assets	$ 29,730	2,843
Noncapital Losses In Mexico [Member]
Income Taxes [Line Items]
Deferred tax assets	24,870	21,560
Noncapital Losses In Brazil [Member]
Income Taxes [Line Items]
Deferred tax assets	79,382	102,357
Noncapital Losses In Peru [Member]
Income Taxes [Line Items]
Deferred tax assets	$ 73,491	74,965
Capital losses in Canada [Member]
Income Taxes [Line Items]
Deferred tax assets		$ 1,171

XML

INCOME TAXES - Unrecognized deferred tax assets (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Income Taxes [Line Items]
Unrecognized temporary differences	$ 368,496	$ 364,331
Tax losses carried forward
Income Taxes [Line Items]
Unused tax losses for which no deferred tax asset recognised	217,342	130,131
Mineral properties, plant and equipment
Income Taxes [Line Items]
Unused tax losses for which no deferred tax asset recognised	45,429	90,647
Other deductible temporary differences
Income Taxes [Line Items]
Unused tax losses for which no deferred tax asset recognised	$ 105,725	$ 143,553

XML

FAIR VALUE MEASUREMENTS - Summary of Company's Financial Instruments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Disclosure of fair value measurement of assets [line items]
Cash and cash equivalents	$ 63,396,000	$ 36,970,000
Marketable securities	1,000
Trade receivables	2,011,000	4,605,000
Restricted cash	1,055,000
Trade payables and accrued liabilities	42,428,000
Derivative liabilities	2,974,000
Borrowings	33,398,000	42,693,000
Transfers out of Level 1 into Level 2 of fair value hierarchy, assets held at end of reporting period	0	0
Transfers out of Level 1 into Level 2 of fair value hierarchy, liabilities held at end of reporting period	0	0
Transfers out of Level 2 into Level 1 of fair value hierarchy, assets held at end of reporting period	0	0
Transfers out of Level 2 into Level 1 of fair value hierarchy, liabilities held at end of reporting period	0	0
Transfers into Level 3 of fair value hierarchy, assets	0	0
Transfers into Level 3 of fair value hierarchy, liabilities	0	0
Transfers out of Level 3 of fair value hierarchy, assets	0	0
Transfers out of Level 3 of fair value hierarchy, liabilities	0	$ 0
Fair value through OCI
Disclosure of fair value measurement of assets [line items]
Cash and cash equivalents	0
Marketable securities	1,000
Trade receivables	0
Restricted cash	0
Trade payables and accrued liabilities	0
Derivative liabilities	0
Borrowings	0
Fair value through P&L
Disclosure of fair value measurement of assets [line items]
Cash and cash equivalents	0
Marketable securities	0
Trade receivables	0
Restricted cash	0
Trade payables and accrued liabilities	0
Derivative liabilities	2,974,000
Borrowings	0
Amortized cost
Disclosure of fair value measurement of assets [line items]
Cash and cash equivalents	63,396,000
Marketable securities	0
Trade receivables	2,011,000
Restricted cash	1,055,000
Trade payables and accrued liabilities	42,428,000
Derivative liabilities	0
Borrowings	$ 33,398,000

XML

FINANCIAL RISK MANAGEMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
Disclosure of risk management strategy related to hedge accounting [line items]
Trade accounts receivable and VAT	$ 2,011	$ 4,605
Not later than one month [member]
Disclosure of risk management strategy related to hedge accounting [line items]
Trade accounts receivable and VAT	1,343	4,121
Later than one month and not later than two months [member]
Disclosure of risk management strategy related to hedge accounting [line items]
Trade accounts receivable and VAT	400	389
Later than two months and not later than three months [member]
Disclosure of risk management strategy related to hedge accounting [line items]
Trade accounts receivable and VAT	142	150
Later than three months [member]
Disclosure of risk management strategy related to hedge accounting [line items]
Trade accounts receivable and VAT	$ 126	$ (55)

XML

FINANCIAL RISK MANAGEMENT - Change from prevailing exchange rates (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2020 USD ($)
Disclosure of risk management strategy related to hedge accounting [line items]
Prevailing Exchange Rate	10.00%
Appreciation of the USD against the currency [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Confidence interval	10.00%
Appreciation of the USD against the currency [Member] | Canadian dollars per US dollar [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	$ 68
Appreciation of the USD against the currency [Member] | Brazilian Real [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	1,255
Appreciation of the USD against the currency [Member] | Australian Dollars [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	(78)
Appreciation of the USD against the currency [Member] | Mexican pesos per US dollar [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	(150)
Appreciation of the USD against the currency [Member] | Peruvian soles per US dollar [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	$ 287
Depreciation of the USD against the currency [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Confidence interval	10.00%
Depreciation of the USD against the currency [Member] | Canadian dollars per US dollar [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	$ (80)
Depreciation of the USD against the currency [Member] | Brazilian Real [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	(1,222)
Depreciation of the USD against the currency [Member] | Australian Dollars [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	78
Depreciation of the USD against the currency [Member] | Mexican pesos per US dollar [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	157
Depreciation of the USD against the currency [Member] | Peruvian soles per US dollar [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Change in net income due to depreciation	$ (287)

XML

FINANCIAL RISK MANAGEMENT - Change in prevailing commodity prices (Details) - Commodity price risk [member] $ in Thousands	Dec. 31, 2020 USD ($)
Silver [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Confidence interval	10.00%
Value at risk	$ 991
Gold [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Confidence interval	10.00%
Value at risk	$ 549
Lead [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Confidence interval	10.00%
Value at risk	$ 69
Zinc [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Confidence interval	10.00%
Value at risk	$ 153

XML

FINANCIAL RISK MANAGEMENT - Additional Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2020 USD ($)	Dec. 31, 2019
Disclosure of risk management strategy related to hedge accounting [line items]
Proportion of advance payments of receivables	95.00%
Prevailing commodity prices	10.00%
Interest rate risk [member]
Disclosure of risk management strategy related to hedge accounting [line items]
Confidence interval	1.00%
Change in net income due to depreciation	$ 0.1
Maximum | Interest rate risk [member]
Disclosure of risk management strategy related to hedge accounting [line items]
Fixed financial instrument term	1 year
Canadian dollars per US dollar [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Closing foreign exchange rate	1.277	1.299
Brazilian Real [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Closing foreign exchange rate	5.197	4.031
Australian Dollars [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Closing foreign exchange rate	1.2981	1.423
Mexican Pesos [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Closing foreign exchange rate	19.935	18.876
Peruvian soles per US dollar [Member]
Disclosure of risk management strategy related to hedge accounting [line items]
Closing foreign exchange rate	3.621	3.319

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COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands	Dec. 31, 2020 USD ($)
Disclosure of contingent liabilities [line items]
Capital commitments	$ 2,162
Less than one year
Disclosure of contingent liabilities [line items]
Capital commitments	2,162
Operating lease payments [Member]
Disclosure of contingent liabilities [line items]
Capital commitments	32
Operating lease payments [Member] | Less than one year
Disclosure of contingent liabilities [line items]
Capital commitments	32
Drilling services [Member]
Disclosure of contingent liabilities [line items]
Capital commitments	710
Drilling services [Member] | Less than one year
Disclosure of contingent liabilities [line items]
Capital commitments	710
Equipment purchases [Member]
Disclosure of contingent liabilities [line items]
Capital commitments	1,420
Equipment purchases [Member] | Less than one year
Disclosure of contingent liabilities [line items]
Capital commitments	$ 1,420

XML

COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Thousands, R$ in Millions	1 Months Ended			6 Months Ended	12 Months Ended
	Oct. 31, 2018 BRL (R$)	Jan. 31, 2018 BRL (R$)	Jan. 31, 2018 USD ($)	Jun. 30, 2017 USD ($)	Dec. 31, 2020 BRL (R$)	Dec. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Disclosure of contingent liabilities [line items]
Judicial Deposit						$ 302		$ 389
Compensation to each defendant for collective nonpecuniary loss to Amapas citizens and Brazilians in general | R$					R$ 8.0
Collateral in the form of deposit to cover additional requirement of bond( as a percentage )					80.00%
Amount of additional bond requirement							$ 2,700
Increased portion of bond closure amount				$ 1,200
Total commitments of bond requirement						10,900
Fines and Sanctions [Member]
Disclosure of contingent liabilities [line items]
Reimbursement rights				1,500
Fines and sanctions which may be levied by OSINERGMIN [Member]
Disclosure of contingent liabilities [line items]
Reimbursement rights						1,300
Fines and sanctions to be levied by OEFA [Member]
Disclosure of contingent liabilities [line items]
Reimbursement rights						200
Certain civil lawsuits filed by individuals and former suppliers [Member]
Disclosure of contingent liabilities [line items]
Reimbursement rights						400
Various claims related to Brazil indirect taxes and labour matters [Member]
Disclosure of contingent liabilities [line items]
Other provisions						1,600
Escrow cash deposits						300		$ 400
Environmental damages [Member]
Disclosure of contingent liabilities [line items]
Interest and inflation to the State Environmental Fund		R$ 6.0	$ 1,100
Updated value of fine payable including interest and inflation					R$ 29.7	5,700
Cyanide Usage [Member]
Disclosure of contingent liabilities [line items]
Amount of fine payable excluding interest and inflation | R$	R$ 4.0
Cyanide Usage [Member] | Maximum
Disclosure of contingent liabilities [line items]
Period to stop usage of cyanide in production process	1 year
Nyrstar N. V. [Member]
Disclosure of contingent liabilities [line items]
Remediation bond agreement						6,500	7,000
Outstanding fines or sanctions settled				4,000
Remediation bond agreement						$ 6,500	$ 7,000
Nyrstar N. V. [Member] | Maximum
Disclosure of contingent liabilities [line items]
Outstanding fines or sanctions settled				$ 4,000

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RELATED PARTY TRANSACTIONS - Key management compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Salaries and benefits	$ 3,059	$ 1,674
Contract completion bonus - interim CEO	171
Directors fees	531	478
Termination benefits		658
Share-based compensation	1,935	1,227
Key management personnel compensation	$ 5,696	$ 4,037

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RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($)	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
RELATED PARTY TRANSACTIONS
Key management personnel compensation, contingent termination benefits	$ 3,400,000
Special committee fees	$ 0	$ 100,000

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SUPPLEMENTAL CASH FLOW INFORMATION - Other non-cash items (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
SUPPLEMENTAL CASH FLOW INFORMATION
Accretion	$ 2,629	$ 3,404
Finance expense	3,981	5,752
Finance income	(347)	(726)
Loss on disposal of fixed assets	1	32
Other non-cash items	$ 6,264	$ 8,462

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SUPPLEMENTAL CASH FLOW INFORMATION - Non-cash investing and financing activities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Notes to Financial Statements [Abstract]
Change in reclamation and remediation provision included within mineral properties, plant and equipment and exploration and evaluation assets	$ 13,943	$ 3,330
Change in lease liability related to right-of-use assets	890	4,498
Shares issued upon settlement of obligation	$ 39
Repayment of MACA borrowings by way of issuance of shares		$ 10,524

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OPERATING SEGMENTS (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2019 USD ($)	Dec. 31, 2020 USD ($) segment	Dec. 31, 2019 USD ($)
Disclosure of geographical areas [line items]
Number of operating segments | segment		3
Number of exploration segments | segment		1
Number of Coricancha segments | segment		1
Number of corporate segments | segment		1
External revenue	$ 132,974	$ 260,805	$ 198,653
Amortization and depletion		40,751	35,185
Exploration and evaluation expenses		10,370	12,787
Non-cash change in reclamation and remediation provision		41	9,752
Care and maintenance costs	599	693	795
Impairment of goodwill	38,682		38,682
Finance income		347	726
Finance expense/costs		3,981	5,752
Net income (loss) before income taxes	(62,064)	4,125	(90,278)
Income tax expense (recovery	891	3,791	744
Net income (loss)	$ (62,955)	334	(91,022)
Additions to non-current assets		56,781	34,889
Total assets		280,420	270,742
Total liabilities		168,717	170,243
Exploration, evaluation and development expenses [Member]
Disclosure of geographical areas [line items]
Exploration and evaluation expenses		10,370	12,787
Exploration [Member]
Disclosure of geographical areas [line items]
Amortization and depletion			4
Net income (loss) before income taxes		(667)	(264)
Net income (loss)		(667)	(264)
Total assets		2,126	2,159
Total liabilities		500
Exploration [Member] | Exploration, evaluation and development expenses [Member]
Disclosure of geographical areas [line items]
Exploration and evaluation expenses		187	176
Corporate One [Member]
Disclosure of geographical areas [line items]
External revenue		223,690	53,825
Amortization and depletion		258	245
Finance income		226	708
Finance expense/costs		1,196	9
Net income (loss) before income taxes		(31,899)	(3,785)
Income tax expense (recovery			531
Net income (loss)		(31,899)	(4,316)
Additions to non-current assets		43	821
Total assets		47,012	40,122
Total liabilities		18,801	15,116
Corporate One [Member] | Exploration, evaluation and development expenses [Member]
Disclosure of geographical areas [line items]
Exploration and evaluation expenses		651	7
Elimination of intersegment amounts [member] | Corporate One [Member]
Disclosure of geographical areas [line items]
External revenue		(210,623)	(49,818)
Tucano Gold Mine [Member]
Disclosure of geographical areas [line items]
External revenue			99,572
Amortization and depletion		35,986	30,816
Impairment of goodwill			38,682
Finance income		121	14
Finance expense/costs		2,597	5,741
Net income (loss) before income taxes		46,549	(66,473)
Income tax expense (recovery		3,751
Net income (loss)		42,798	(66,473)
Additions to non-current assets		42,109	28,593
Total assets		167,524	177,683
Total liabilities		87,304	107,354
Tucano Gold Mine [Member] | Exploration, evaluation and development expenses [Member]
Disclosure of geographical areas [line items]
Exploration and evaluation expenses		669	608
Tucano Gold Mine [Member] | Elimination of intersegment amounts [member]
Disclosure of geographical areas [line items]
External revenue		210,623	49,818
Guanajuato Mine Complex [Member]
Disclosure of geographical areas [line items]
External revenue		21,219	23,543
Amortization and depletion		1,564	1,436
Non-cash change in reclamation and remediation provision		41	6,829
Care and maintenance costs		693	795
Net income (loss) before income taxes		(2,621)	(7,436)
Income tax expense (recovery		26	122
Net income (loss)		(2,647)	(7,558)
Additions to non-current assets		4	317
Total assets		4,597	7,060
Total liabilities		16,535	15,772
Guanajuato Mine Complex [Member] | Exploration, evaluation and development expenses [Member]
Disclosure of geographical areas [line items]
Exploration and evaluation expenses		2,540	2,550
Topia Mine [Member]
Disclosure of geographical areas [line items]
External revenue		15,896	21,713
Amortization and depletion		2,745	2,431
Non-cash change in reclamation and remediation provision			2,923
Net income (loss) before income taxes		(734)	(2,796)
Income tax expense (recovery		14	91
Net income (loss)		(748)	(2,887)
Additions to non-current assets		3,794	3,963
Total assets		14,456	15,304
Total liabilities		2,244	2,445
Topia Mine [Member] | Exploration, evaluation and development expenses [Member]
Disclosure of geographical areas [line items]
Exploration and evaluation expenses		341	889
Coricancha Mining Complex [Member]
Disclosure of geographical areas [line items]
Amortization and depletion		198	253
Finance income			4
Finance expense/costs		188	2
Net income (loss) before income taxes		(6,503)	(9,524)
Net income (loss)		(6,503)	(9,524)
Additions to non-current assets		10,831	1,195
Total assets		44,705	28,414
Total liabilities		43,333	29,556
Coricancha Mining Complex [Member] | Exploration, evaluation and development expenses [Member]
Disclosure of geographical areas [line items]
Exploration and evaluation expenses		$ 5,982	$ 8,557