Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Investor Presentation (January 2024)
43 slides from Pan American Silver's investor presentation, January 2024
Slide 1: Investor Presentation January 2024
INVESTOR PRESENTATION // FEBRUARY 2023 I N V E S T O R P R E S E N TAT I O N // JANUARY 2024
Slide 2: Cautionary Note and Non-GAAP Measures
2 things, production estimates for silver, gold and other metals, Cash Costs and in prices for energy inputs, labour, materials, supplies and services (including AISC, estimates for and uses of sustaining and project capital, and anticipated transportation); fluctuations in currency markets (such as
Slide 3: Cautionary Note Continued
3 CONTINUED Further to recent amendments, mineral property disclosure requirements in the United States (the “U.S. Rules”) are governed by subpart 1300 of NOT AN OFFER OR A SOLICITATION Regulation S-K of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) which differ from the CI
Slide 4: Portfolio offers scale and quality in the Americas
CANADA 4 Head Office Timmins Dolores La Colorada Skarn Deposit // Pan American’s portfolio offers scale & quality in the Americas, MEXICO GUATEMALA where we have been operating for nearly 3 decades Escobal (C&M) • 11 producing mines • 2 catalysts with potential for material 9% 3% 24% Shahuindo growt
Slide 5: Silver and Gold Production Q4 and FY 2023
5 Silver Production Gold Production (thousand ounces) (thousand ounces) Q4 2023 FY 2023 Q4 2023 FY 2023 Silver Segment: La Colorada (Mexico) 806 4,392 0.4 2.3 Cerro Moro (Argentina) 886 3,547 30.3 84.6 Huaron (Peru) 905 3,608 0.2 1.1 San Vicente (Bolivia)(2) 738 2,978 -- 0.1 Manantial Espejo (Argent
Slide 6: 2024 Production and Cost Guidance
6 // forecasting an increase in silver and gold production relative to 2023 and strong performance on costs (1) Ag Au 21.0 – 23.0 Moz 880 – 1,000 Koz ANNUAL CONSOLIDATED ANNUAL CONSOLIDATED PRODUCTION PRODUCTION $11.70 - $14.10 per oz $1,165 - $1,260 per oz SILVER SEGMENT CASH COSTS1 GOLD SEGMENT CA
Slide 7: Total Available Liquidity
7 $386M Revolving TOTAL AVAILABLE Cash + ~$90M in annual savings from lower care & maintenance costs Credit short-term Facility LIQUIDITY investments and reduced interest expense + ~40-60M annually in synergy $750M savings from Yamana transaction $1,136M(3) Total debt(2) of $809.1M related to senior
Slide 8: La Colorada ventilation improvement expected mid 2024
8 // significant improvement in mine operating conditions expected following completion mid 2024 The fully concrete-lined 5.5-metre diameter ventilation shaft was completed in 2023. Ventilation fans to be installed on This infrastructure is strategically located shaft by mid-2024. to exhaust hot, hu
Slide 9: La Colorada Skarn Preliminary Economic Assessment Highlights
99 ZACATECAS, MEXICO // Preliminary Economic Assessment Highlights • Production averaging 17.2 million ounces of silver, 427 thousand tonnes of zinc and 218 thousand tonnes of lead annually during the first 10 years • 50,000 tonnes per day sub-level cave mine and conventional flotation plant • 17-ye
Slide 10: La Colorada Skarn polymetallic mineralisation zones
10 // polymetallic skarn mineralisation is concentrated in 3 zones, covering an area of 1,500 metres by 1,100 metres laterally, and a depth of between 600 metres and 1,900 metres below surface (1) Please refer to our news release dated December 18, 2023 for Pan American’s announcement of the Prelimi
Slide 11: One of the world's best silver mines: Escobal
11 SANTA ROSA, GUATEMALA MEXICO GUATEMALA // One of the world’s best silver mines Escobal • High-quality, well-built operation with over US$500 million invested(1) • One of the world’s largest primary silver deposits with reserves of 264 Moz • 3 consecutive years of production at 20 Moz Ag/year at A
Slide 12: Escobal mining license suspended pending ILO 169 Consultation
12 For more information, please visit https://mem.gob.gt/derecho- // Escobal mining license suspended pending completion of an ILO 169 Consultation in Guatemala minero-escobal/ PRE-PHASE 1 PHASE 1 PHASE 2 PHASE 3 REVIEW PRE-CONSULTATION CONSULTATION SUPREME COURT VERIFICATION PAS Guatemala shall wor
Slide 13: The go-to name for investing in silver
13 Large silver reserves(1) Proven and probable mineral reserves of 486.8 Moz plus measured and indicated mineral resources of 945.0 Moz, as of June 30, 2023 Escobal mine has potential to add ~20 Moz of silver production annually following restart of operations(2) The mine is currently on care and m
Slide 14: Silver Supply and Demand 2023
14 // 2023 estimate(1); in million ounces Photography & Other Mine Investment2 2% Recycling Industrial Production 23% 18% 56% 82% Silver Silver Supply Demand 1,002 1,143 Jewelry & Silverware 1. Source: Silver Institute, November 16, 2023. 19% 2. Net physical investment in coins and bars. ~ 140 Moz s
Slide 15: Silver demand for solar installations has grown
15 // Silver demand for solar installations has grown, representing 140 Moz, or ~11% of total demand, in 2022 while thrifting has plateaued Index (2010=100) Moz 120 160 140 100 120 80 100 60 80 60 40 40 20 20 0 0 2010 2012 2014 2016 2018 2020 2022 Index is based on silver loadings per cell. Fabricat
Slide 16: Growing industrial demand from decarbonization and electrification
16 // Growing industrial demand from global transition to decarbonization and electrification • Silver has the highest electrical and thermal conductivity of all metals, making it an important metal in the transition to a low carbon economy. • ~11% of silver demand is for photovoltaics (solar panels
Slide 17: ESG ratings and memberships
17 REPORTING FRAMEWORKS & STANDARDS 68 BBB rating Ranked top 7% in the Metals & Ranked in the top 45th Mining industry percentile Scale: 0 (worst) to 100 (best). Scale: CCC (worst) to AAA (best). MEMBERSHIPS & COMMITMENTS 27.9 (medium risk) C+ rating #8 out of 29 companies in Precious Upgraded from
Slide 18: PAAS Snapshot
18 // PAAS SNAPSHOT 1 $5.0 B $0.10 MARKET CAP QUARTERLY DIVIDEND2 364.4 M 2.6% Long-life silver reserves SHARES OUTSTANDING DIVIDEND YIELD Medium and long-term growth projects $50 M 10 AVERAGE DAILY SELL SIDE T R A D I N G V A L U E (3) ANALYSTS Committed to best-in-class ESG performance MEMBER OF T
Slide 19: Appendix
PAN AMERICAN APPENDIX
Slide 20: 2024 Guidance by Mine
20 Silver Production Gold Production Cash Costs AISC (million ounces) (thousand ounces) ($ per ounce)(1) ($ per ounce) (1) 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 (Peru) 3.5 – 3.8 – 9.30 -
Slide 21: 2024 Capital Expenditures
21 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)(1) 4.5 – 5.5 Jacobina Jacobina (Brazil) 53.0 – 55.0
Slide 22: ESG Structure and Accountability
22 // Structure and Accountability S A F E T Y, E N V I R O N M E N TA L AND SOCIAL • The Communities and Sustainable Development (CSD) Committee reviews the Company’s 35% sustainability and ESG performance. • The Health, Safety, and Environment (HSE) Committee provides policy direction and oversigh
Slide 23: Timmins: two producing mines in prolific Canadian mining camp
23 ONTARIO, CANADA Timmins West Bell Creek // Two producing mines in prolific Canadian mining camp • 100% owned and operated • Comprises two underground gold mines, Timmins West and Bell Creek, which both feed the Bell Creek mill • Throughput capacity of ~6,000 tpd producing doré • Exploration succe
Slide 24: Dolores: large gold / silver mine
24 Dolores CHIHUAHUA, MEXICO // Large gold / silver Mine • 100% owned and operated • Mining is by open pit and uses conventional cyanide heap leaching to produce gold and silver doré • Average throughput capacity of 20,000 tpd Silver & Gold Production Mineral Reserves & Resources Silver (Moz) Gold (
Slide 25: La Colorada: largest silver producing mine
25 La Colorada ZACATECAS, MEXICO // Pan American’s largest silver producing mine • 100% owned and operated underground mine • Expansion completed in 2017 – new mine shaft and sulphide processing plant • Currently producing silver-gold doré bars from a conventional cyanide leach plant for the oxide o
Slide 26: Shahuindo: large gold mine with growth potential
26 CAJAMARCA, PERU Shahuindo // Large gold mine with significant growth potential • 100% owned and operated open pit gold mine producing silver by-products from doré • Average throughput capacity of ~36,000 tpd with heap leach processing • Commercial production began in 2016, significant exploration
Slide 27: La Arena: gold mine with sulphide expansion potential
27 LA LIBERTAD, PERU La Arena // Gold mine with sulphide expansion potential (La Arena II) • 100% owned and operated open pit gold mine producing doré • Run-of-mine heap leach currently processing ~36,000 tpd • Exploration success has extended mine life Gold Production (Koz) Mineral Reserves & Resou
Slide 28: Huaron: polymetallic silver mine
28 PASCO, PERU Huaron // Polymetallic silver mine • 100% owned and operated underground mine • Average throughput capacity of ~2,500 tpd using flotation technology to produce silver in copper, lead, and zinc concentrates Silver Production (Moz) Mineral Reserves & Resources Grade Contained Metal 3.7
Slide 29: Jacobina: large gold mine with growth potential
29 BAHIA, BRAZIL Jacobina // Large gold mine with significant growth potential (1) • 100% owned and operated underground gold mine producing doré via a conventional leaching process • Throughput of ~8,400 tpd at gold recovery rates approaching 96% Gold Production (koz)(1) Mineral Reserves & Resource
Slide 30: San Vicente: polymetallic silver mine
30 POTOSÍ, BOLIVIA San Vicente // Polymetallic silver mine • 95% owned and operated underground mine • Average throughput capacity of ~950 tpd utilizing a standard flotation process to produce silver-zinc and silver-lead concentrates • Mechanization efforts, enhanced mine dilution controls and impro
Slide 31: El Peñon: large gold / silver mine
31 ANTOFAGASTA, CHILE El Peñon // Large gold / silver Mine • 100% owned and operated underground gold and silver mine producing gold and silver doré • The mine has been in operation since 1999 and has consistently replaced ounces mined Silver & Gold Production (1) Mineral Reserves & Resources Silver
Slide 32: Minera Florida: polymetallic gold mine
32 METROPOLITAN REGION, CHILE Minera Florida // Polymetallic gold mine • 100% owned and operated underground mine producing gold and silver doré bars and zinc concentrate Gold Production (koz)(1) Mineral Reserves & Resources 85 Grade Contained Metal 82 72(2) Tonnes Au Ag Zn Au Ag Zn (Mt) (g/t) (g/t)
Slide 33: Cerro Moro: integrated gold and silver mining complex
33 SANTA CRUZ, ARGENTINA // Integrated gold & silver mining complex Cerro Moro • 100% owned and operated open pit and underground gold and silver complex feeding a single processing plant producing gold and silver doré Silver & Gold Production (1) Mineral Reserves & Resources Silver (Moz) Gold (koz)
Slide 34: La Arena II: undeveloped copper porphyry
34 LA LIBERTAD, PERU La Arena II // 100% owned, undeveloped copper porphyry Mineral Resources 1 (as of June 30, 2023) Grade Contained Metal Tonnes Au Cu Au Cu (Mt) (g/t) (%) (koz) (kt) Model Highlights & Key Assumptions M&I Resources 708.7 0.23 0.37 5,300 2,633 Inferred Resources 68.2 0.21 0.29 455
Slide 35: Navidad: undeveloped primary silver deposit
35 35 CHUBUT, ARGENTINA Navidad // One of the largest undeveloped primary silver deposits • 100% owned silver project • Project comprises 8 individual mineral deposits in 3 separate mineralized trends • Scalable production profile with high-grade mineralization at surface • Development contingent on
Slide 36: La Colorada Skarn mineral resource estimate
36 ZACATECAS, MEXICO Mining Resource Tonnes Zn Pb Ag Zn Pb Ag Method Classification (millions) (%) (%) (g/t) (Mt) (Mt) (Moz) Indicated 173.6 2.79 1.32 33 4.8 2.3 183 Sub-level Caving (SLC) Inferred 103.6 2.47 1.03 35 2.6 1.1 116 Notes: 7. Reasonable prospects for eventual economic extraction were as
Slide 37: La Colorada Skarn PEA summary
37 Construction period 6 years Production mine life 17 years Production rate 50 ktpd (or 18.25 Mtpa) Notes: Mineable inventory 284.7 million tonnes 1. Assumes metal prices of $2,800 per tonne of zinc, $2,200 per Average annual silver produced first 10 years 17.2 million ounces tonne of lead, and $22
Slide 38: Mineral Reserves as of June 30, 2023
38 As of June 30, 2023 (1,2) Tonnes Ag Contained Au Contained Cu Contained Contained Contained (1) See table below entitled Property Location Classification Pb (%) Zn (%) (Mt) (g/t) Ag (Moz) (g/t) Au (Koz) (%) Cu (Kt) Pb (Kt) Zn (Kt) "Metal price assumptions Silver Segment used to estimate mineral H
Slide 39: Measured and Indicated Mineral Resources
Contained Au Property Location Classification Tonnes (Mt) Ag (g/t) Contained Ag (Moz) Au (g/t) Cu (%) Pb (%) Zn (%) (Koz) Silver Segment Huaron Peru Measured 1.4 180 8.2 - - 0.30 1.95 3.15 Indicated 1.8 173 10.2 - - 0.30 1.86 3.06 La Colorada Mexico Measured 0.7 153 3.6 0.13 3.0 - 0.64 1.18 Indicate
Slide 40: Inferred Mineral Resources
40 as of June 30, 2023 (1,2,3) Au Contained Au (1) See table below entitled Property Location Classification Tonnes (Mt) Ag (g/t) Contained Ag (Moz) Cu (%) Pb (%) Zn (%) (g/t) (koz) "Metal price assumptions Silver Segment used to estimate mineral Huaron Peru Inferred 5.9 164 31.2 - - 0.35 1.76 2.87
Slide 41: Metal price assumptions for reserves and resources
41 Mine Category Ag US$/oz Au US$/oz Cu US$/t Pb US$/t Zn US$/t Huaron All categories 19.00 1,300 7,000 2,000 2,600 Morococha All categories 19.00 1,300 7,000 2,000 2,600 La Colorada All categories 19.00 1,300 7,000 2,000 2,600 La Colorada Skarn Resource 22.00 2,200 2,800 Reserves 19.00 1,600 Dolore
Slide 42: Technical notes on reserves and resources
42 All mineral reserves and mineral resources have been estimated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101. Mineral resources are reported exclusives of mineral reserves. Pan American does not expect these mineral r
Slide 43: Investor relations contact
43 Siren Fisekci VP, INVESTOR RELATIONS & CORPORATE COMMUNICATIONS +1.604.806.3191 | ir@panamericansilver.com panamericansilver.com Suite 1440, 625 Howe Street Vancouver, BC, V6C 2T6
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