Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Q3 2024 Earnings Presentation
26 slides from Pan American Silver's earnings presentation, Nov 6, 2024
Slide 1: Q3 2024 Earnings Review
1 Q3 2024 EARNINGS REVIEW CONFERENCE CALL // NOVEMBER 6, 2024 NYSE: PAAS | TSX: PAAS
Slide 2: Cautionary Note
2 CAUTIONARY NOTE These forward-looking statements and information reflect Pan American’s current laws, regulations and government practices in the jurisdictions where we operate, views with respect to future events and are necessarily based upon a number of including environmental, export and impor
Slide 3: Q3 2024 Takeaways
3 Q3 2024 TAKEAWAYS // Record Free Cash Flow of $151.5M (1) Production of 5.5 million ounces silver Adjusted earnings of $115.1M, or and 225 thousand ounces gold $0.32 per share(2) Silver Segment Cash Costs of $15.88 per Reported Mineral Reserves and ounce and Gold Segment Cash Costs of Resources as
Slide 4: Consolidated Financial Results
4 CONSOLIDATED FINANCIAL RESULTS in millions of US$, except per share amounts Q3 2024 Revenue 716.1 Mine operating earnings 175.7 Net earnings 57.1 Basic earnings per share(1) 0.16 Adjusted earnings(2) 115.1 Basic adjusted earnings per share(1)(2) 0.32 Net cash generated from operating activities 22
Slide 5: Production
5 PRODUCTION Silver Production Gold Production (koz) (koz) Q3 2024 Q3 2024 La Colorada 1,329 0.9 Cerro Moro 804 17.0 Huaron 888 - San Vicente(1) 811 - Jacobina 1 50.4 El Peñon 995 26.8 Timmins 2 33.9 Shahuindo 69 35.9 La Arena 12 22.7 Minera Florida 115 19.1 Dolores 442 18.4 Total(2) 5,467 225.0 1.
Slide 6: Cash Cost and AISC
6 CASH COST AND AISC Cash Costs(1) AISC(1) ($ per ounce) ($ per ounce) Q3 2024 Q3 2024 1. Cash Costs and AISC are non-GAAP measures. Please refer La Colorada(2) 19.59 22.25 to the “Alternative Performance (Non-GAAP) Measures” section of the MD&A for the period ended September 30, Cerro Moro 18.84 20
Slide 7: Metal Prices & Metal Sold
7 METAL PRICES & METAL SOLD Realized Metal Quantities of Metal Prices(1) Sold(2) Q3 2024 Q3 2024 Silver $ 29.52 4,846 Gold $ 2,475 217.9 Zinc $ 2,897 8.9 Lead $ 2,062 4.7 Copper $ 9,273 1.0 1. Metal price stated as dollars per ounce for silver and gold, and dollars per tonne for zinc, lead and coppe
Slide 8: Q3 2024 Finished Goods and Concentrates Inventory Balance
8 Q3 2024 FINISHED GOODS AND CONCENTRATES INVENTORY BALANCE Mine/Product Payable Metal Quantities of Produced(1) Metal Sold Inventory build/(draw)(3) Revenue Effect koz koz koz US$M Silver Gold Silver Inventory build of 385 koz Inventory build of 6.7 koz La Colorada 1,244 1,225 19 ($0.6) Cerro Moro
Slide 9: Q3 2024 Consolidated Cash Flows
9 Q3 2024 CONSOLIDATED CASH FLOWS Sustaining Cash Flow Performance Growth, Business Development, and Other $700 $269 $600 ($75) $500 ($36) $491 $470 ($26) ($10) ($13) ($7) $400 $369 Millions $300 $200 $100 $0 Cash and STI at June 30, Adjusted operating cash Sustaining capital and Dividends paid Net
Slide 10: YTD 2024 Consolidated Cash Flows
10 YTD 2024 CONSOLIDATED CASH FLOWS Sustaining Cash Flow Performance Growth, Business Development, and Other $1,200 $695 $1,000 ($201) $800 ($122) ($109) Millions $600 $575 ($99) ($24) ($5) $470 $441 ($73) ($24) ($8) $400 $200 $0 (1) Cash and STI at Adjusted operating Sustaining capital Net changes
Slide 11: Q3 2024 Reconciliation of Adjusted Earnings to GAAP Net Earnings
11 Q3 2024 RECONCILIATION OF ADJUSTED EARNINGS TO GAAP NET EARNINGS Q3 2024 basic adjusted earnings of $0.32/share (1) 1.6 0.6 0.6 3.0 4.3 $115.1 11.6 ( . ) ( 3. ) ( 0. ) 46. Millions $57.1 (2) 1. Adjusted earnings and basic adjusted loss per share are non-GAAP financial measures. Please refer to th
Slide 12: YTD 2024 Reconciliation of Adjusted Earnings to GAAP Net Earnings
12 YTD 2024 RECONCILIATION OF ADJUSTED EARNINGS TO GAAP NET EARNINGS YTD 2024 basic adjusted earnings of $0.44/share (1,2) 3. 2. . 6. .4 $159.8 4 .3 ( 1 .3) ( 13.2) 46. Millions 63.4 $4.9 (3) 1. Adjusted earnings and basic adjusted loss per share are non-GAAP financial measures. Please refer to the
Slide 13: Strong Financial Position
13 STRONG FINANCIAL POSITION (1) Cash + short-term Revolving investments Credit TOTAL AVAILABLE $470M Facility LIQUIDITY Cash + short-term investments of $470M $750M $1,220M(3) Total debt(2) of $815M related to senior notes and construction loans & leases $283M with 4.625% coupon maturing in Decembe
Slide 14: 2024 Operating Outlook
14 2024 OPERATING OUTLOOK(1) Silver Production Gold Production Cash Costs AISC (million ounces) (thousand ounces) ($ per ounce)(2) ($ per ounce)(2) Silver Segment: La Colorada (Mexico) 5.3 – 5.7 2 16.60 - 19.30 21.00 - 24.00 Cerro Moro (Argentina) 3.2 – 3.5 93 – 115 3.20 - 6.70 8.00 - 11.50 Huaron (
Slide 15: 2024 Capital Expenditure & Operating Forecast
15 2024 CAPITAL EXPENDITURE & OPERATING FORECAST(1) Expenditures ($ millions) Sustaining Capital Project capital invested to advance La Colorada (Mexico) 22.5 – 23.0 strategic goals: Cerro Moro (Argentina) 14.0 – 15.5 Huaron (Peru) 17.5 – 18.5 • Upgrading processing plant at San Vicente (Bolivia)(2)
Slide 16: Strategic Priorities
16 STRATEGIC PRIORITES // Pan American’s vision is to be the world’s premier silver mining company, with a reputation for excellence in discovery, engineering, innovation and sustainable development Focus on the safe, efficient and environmentally sound operation of our mines ➢ achieve our 2024 Oper
Slide 17: Q&A
Q&A To join the queue: Press * and 1 on your touch-tone telephone. You will hear a tone acknowledging your request. If you wish to remove yourself from the queue, press * and 2
Slide 18: Shareholder Returns
18 SHAREHOLDER RETURNS Dividend Policy Share Buyback (Normal Course Issuer Bid) Pan American supplements a base dividend of $0.10 per Pan American believes that the market price of its common common share with a variable dividend, paid on a quarterly shares, from time to time, may not fully reflect
Slide 19: Pan American Silver Mineral Reserves as of June 30, 2024
19 PAN AMERICAN SILVER MINERAL RESERVES as of June 30, 2024 1
Slide 20: Pan American Silver Measured + Indicated Resources
20 20 PAN AMERICAN SILVER MEASURED + INDICATED RESOURCES as of June 30, 20241
Slide 21: Pan American Silver Measured + Indicated Resources
21 21 PAN AMERICAN SILVER MEASURED + INDICATED RESOURCES as of June 30, 20241
Slide 22: Pan American Silver Inferred Mineral Resources
22 PAN AMERICAN SILVER INFERRED MINERAL RESOURCES as of June 30, 20241 (5)
Slide 23: Metal Price Assumptions Used to Estimate Mineral Reserves & Resources
23 METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES as of June 30, 2024
Slide 24: Metal Price Assumptions Used to Estimate Mineral Reserves & Resources
24 METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES as of June 30, 2024
Slide 25: General Notes Applicable to the Foregoing Tables
25 25 GENERAL NOTES APPLICABLE TO THE FOREGOING TABLES: All mineral reserves and mineral resources have been estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards") and reported in accordance wi
Slide 26: Archived Recording
ARCHIVED RECORDING The audio and presentation archive of this conference call and webcast will be accessible on our website at: https://www.panamericansilver.com/investors/events-and-presentations/