Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Merger or Acquisition (December 2022)
34 slides from Pan American Silver's merger presentation, December 2022
Slide 1: Pan American & Agnico Eagle Offer to Acquire Yamana Gold
Pan American & Agnico Eagle Offer to Acquire Yamana Gold Low-Risk and Logical Consolidation of High-Quality Mining Assets by Regional Operators December 2022
Slide 2: Cautionary Note
CAUTIONARY NOTE Unless stated otherwise, information in this presentation has been prepared as at November 8, 2022.. This presentation (including information incorporated by reference in this presentation) and oral statements made regarding the proposed transaction between Yamana, Pan American and A
Slide 3: Cautionary Note to US Investors Regarding Mineral Reserves and Mineral Resources
CAUTIONARY NOTE TO US INVESTORS REGARDING REFERENCES TO MINERAL RESERVES AND MINERAL RESOURCES Unless otherwise indicated, all mineral resource estimates included in this presentation have been prepared in accordance with Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Proj
Slide 4: Presenters
PRESENTERS Michael Steinmann Ammar Al-Joundi President and Chief President and Chief Executive Officer Executive Officer Pan American Silver Agnico Eagle Low-Risk and Logical Consolidation of High-Quality Mining Assets by Regional Operators Pan American & Agnico Eagle Offer to Acquire Yamana 4
Slide 5: Logical Consolidation – Placing the Best Assets in the Strongest Hands
LOGICAL CONSOLIDATION – PLACING THE BEST ASSETS IN THE STRONGEST HANDS ➢ Efficient deal structure ▪ Cash: US$1.0B ▪ Pan American and Agnico Eagle shares • Companies with multi-decade track records of value creation in LATAM and Canada, respectively • Highly liquid share consideration ▪ Attractive Ca
Slide 6: Yamana Shareholders Gain Exposure to World-Class Assets
YAMANA SHAREHOLDERS GAIN EXPOSURE TO WORLD-CLASS ASSETS ➢ Exposure to Pan American’s expertise and experience operating mines in LATAM for over 28 years ▪ Diversification of Yamana’s current LATAM portfolio through exposure to Pan American’s existing portfolio of 8 producing mines in Mexico, Peru, A
Slide 7: Strategic Rationale – Placing the Best Assets in the Strongest Hands
STRATEGIC RATIONALE – PLACING THE BEST ASSETS IN THE STRONGEST HANDS Transformational in scale, adding 4 producing mines Consolidates world-class, long-life assets plus development projects in the Abitibi gold camp Leverages strong team with decades long Enhances Canadian development pipeline and ex
Slide 8: Transaction Delivers Significant Synergies
TRANSACTION DELIVERS SIGNIFICANT SYNERGIES Provides strong ability to deliver synergies and Uniquely positioned to unlock significant unlock value through LATAM footprint and regional Abitibi synergies skill set overlay Corporate & Operational Synergies Corporate & Operational Synergies ➢ Full, effe
Slide 9: Pan American and Agnico Eagle – Recognized Leaders in ESG
PAN AMERICAN AND AGNICO EAGLE – RECOGNIZED LEADERS IN ESG ➢ ESG leadership is essential to deliver on corporate strategy ▪ Focused on maintaining strong community and indigenous relationships ▪ Supporting local businesses to maximize regional procurement ▪ Pan American and Agnico Eagle are both comm
Slide 10: Pan American Silver
® PAN AMERICAN — SILVER —
Slide 11: Transformational and Strategic Transaction for Pan American
TRANSFORMATIONAL AND STRATEGIC TRANSACTION FOR PAN AMERICAN ➢ Significantly improved trading liquidity (+50%)(1) with pro-forma US$5.6B(2) market capitalization TRANSFORMATIONAL ➢ Meaningful impact on production TRANSACTION ▪ Increase in annual silver production of ~9.5Moz (+63%)(3) ▪ Increase in an
Slide 12: Pan American's Anticipated Pro Forma Portfolio of Operations in the Americas
PAN AMERICAN’S ANTICIPATED PRO FORMA PORTFOLIO WITH 12 OPERATIONS IN THE AMERICAS CANADA Assets to be Acquired by Pan American Timmins Asset Jurisdiction Currently Producing Jacobina (100%) Brazil ✓ El Peñón (100%) Chile ✓ Dolores Minera Florida (100%) Chile ✓ La Colorada Cerro Moro (100%) Argentina
Slide 13: Significantly Increases Pan American's Pro Forma Production Profile
SIGNIFICANTLY INCREASES PAN AMERICAN’S PRO FORMA PRODUCTION PROFILE 2 0 2 2 E S I LV E R P R O D U C T I O N ( M o z ) (1) 2 0 2 2 E G O L D P R O D U C T I O N ( k o z ) (1) 1,080 24.5 Strengthens Pan American’s position as the 15.0 530 leading Latin American focused silver and gold producer Pan Am
Slide 14: Pan American Retains Strong Financial Position Pro Forma
PAN AMERICAN RETAINS STRONG FINANCIAL POSITION PRO FORMA 3.2x D E B T / LT M E B I T D A B E N C H M A R K I N G 1.8x 1.8x 1.4x $181M 0.8x (2) 0.7x 0.6x Cash & Cash 0.3x Equivalents 0.1x Hecla First Evolution Fresnillo Pro Forma SSR Endeavour Northern B2Gold TOTAL AVAILABLE Majestic PAAS Mining Mini
Slide 15: Slide 15
Slide 16: Agnico Eagle Best Operator to Deliver Full Potential at Canadian Malartic
AGNICO EAGLE BEST OPERATOR TO DELIVER FULL POTENTIAL AT CANADIAN MALARTIC ➢ Streamlines the Canadian Malartic joint venture structure REALIZE FULL ➢ Exploration team with proven track record of success in the Abitibi and other major gold camps POTENTIAL ➢ Leverages decades of technical and operating
Slide 17: Continued Investment in the Abitibi Gold Belt
CONTINUED INVESTMENT IN THE ABITIBI GOLD BELT ➢ Complementary to existing Abitibi platform in Ontario and Quebec* ▪ 5 operating mines with 2.1Moz of estimated attributable gold production in 20222 ▪ Large mineral resources and mineral reserves base within the Abitibi • Mineral reserves: 32Moz1 • Mea
Slide 18: Odyssey Project – Significant Upside East and West of East Gouldie
ODYSSEY PROJECT – SIGNIFICANT UPSIDE TO THE EAST AND WEST OF EAST GOULDIE ➢ Recent drilling has extended East Gouldie to the west by ~670m and to the east at depth by ~500m to more than 1,700m from the current mineral resources outline onto the adjacent Rand Malartic property, demonstrating signific
Slide 19: Odyssey Project – Initial Pre-Commercial Production Expected in March 2023
ODYSSEY PROJECT – INITIAL PRE-COMMERCIAL PRODUCTION EXPECTED IN MARCH 2023 ➢ Construction activities progressing on schedule and on budget. Key milestones include: ▪ Initiate shaft sinking – Q4 2022 ▪ Odyssey South production start-up – March 2023 ▪ Completion of Shaft sinking – 2026 ▪ Start of prod
Slide 20: Adding to High Quality Project Pipeline in the Abitibi Gold Belt
ADDING TO HIGH QUALITY PROJECT PIPELINE IN THE ABITIBI GOLD BELT ADVANCED PIPELINE PROJECTS MEDIUM TERM VALUE DRIVERS ESTIMATED GROWTH ➢ AK Deposit – Evaluating the development of the AK deposit PROJECT1,2 STAGE ANNUAL TIMELINE CAPITAL using Macassa’s infrastructure (a similar concept to LZ5 at the
Slide 21: Transaction Summary
TRANSACTION SUMMARY 21 ➢ Total consideration of US$4.8 billion or US$5.02 per Yamana share (as of Nov. 4, 2022 announcement of binding Offer Price & proposal) Consideration ➢ Comprised of US$1.0 billion in cash funded by Agnico Eagle, ~36.1 million Agnico Eagle shares and ~153.5 million Pan American
Slide 22: A Transaction That Creates Value for All Shareholders
A TRANSACTION THAT CREATES VALUE FOR ALL SHAREHOLDERS ➢ Simple, logical and disciplined transaction ▪ Puts assets in hands of proven leaders with track record of building value for all stakeholders ▪ Transforms Pan American into the leading Latin American precious metals miner with unparalleled expo
Slide 23: Pan American Silver Reserves
GENERAL NOTES APPLICABLE TO THE FOLLOWING TABLES: Mineral reserves and mineral resources are as defined by the Canadian Institute of Mining, Metallurgy and Petroleum. Pan American reports mineral resources and mineral reserves separately. Reported mineral resources do not include amounts identified
Slide 24: Pan American Silver Mineral Reserves as of June 30, 2022
Pan American Silver Corporation Mineral Reserves as of June 30, 2022 (1,2) Tonnes Contained Ag Contained Au Contained Cu Contained Pb Contained Zn Property Location Classification Ag (g/t) Au (g/t) Cu (%) Pb (%) Zn (%) (Mt) (Moz) (koz) (kt) (kt) (kt) Silver Segment Huaron Peru Proven 7.0 169 38.1 0.
Slide 25: Pan American Measured and Indicated Mineral Resources as of June 30, 2022
Pan American Silver Corporation Measured and Indicated Mineral Resources as of June 30, 2022 (1,2) Contained Ag Contained Au Property Location Classification Tonnes (Mt) Ag (g/t) Au (g/t) Cu (%) Pb (%) Zn (%) (Moz) (koz) Silver Segment Huaron Peru Measured 2.1 163 10.9 0.42 1.58 3.05 Indicated 2.4 1
Slide 26: Pan American Inferred Mineral Resources as of June 30, 2022
Pan American Silver Corporation Inferred Mineral Resources as of June 30, 2022 (1,2) Contained Ag Property Location Classification Tonnes (Mt) Ag (g/t) Au (g/t) Contained Au (koz) Cu (%) Pb (%) Zn (%) (Moz) Silver Segment Huaron Peru Inferred 7.2 155 36.1 0.26 1.47 2.73 Morococha (92.3%) (3) Peru In
Slide 27: Metal Price Assumptions Used to Estimate Mineral Reserves and Resources
Metal Price Assumptions Used to Estimate Mineral Reserves and Resources as of June 30, 2022 Pan American Reserves and Mine Category Ag US$/oz Au US$/oz Cu US$/t Pb US$/t Zn US$/t Resources mineral price assumptions Huaron All categories 19.00 1,300 7,000 2,000 2,600 as of June 30, 2022, except for L
Slide 28: Agnico Eagle Mineral Reserves and Mineral Resources
Agnico Eagle Mineral Reserves and Mineral Resources
Slide 29: Notes to Investors Regarding the Use of Mineral Resources
NOTES TO INVESTORS REGARDING THE USE OF MINERAL RESOURCES NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferre
Slide 30: Mineral Reserves for Properties Held by Agnico Eagle in Quebec and Ontario
MINERAL RESERVES FOR PROPERTIES HELD BY AGNICO EAGLE IN QUEBEC AND ONTARIO (EXCEPTED HAMMOND REEF) & INCLUDING 50% OF CANADIAN MALARTIC OWNED BY YAMANA MINERAL RESERVES Properties held by Agnico Eagle in Quebec and Ontario, with the exception of Hammond Reef OPERATION / PROJECT PROVEN PROBABLE PROVE
Slide 31: Mineral Resources for Properties Held by Agnico Eagle in Quebec and Ontario
MINERAL RESOURCES FOR PROPERTIES HELD BY AGNICO EAGLE IN QUEBEC AND ONTARIO (EXCEPTED HAMMOND REEF) & INCLUDING 50% OF CANADIAN MALARTIC OWNED BY YAMANA MINERAL RESOURCES Properties owned by Agnico Eagle in Quebec and Ontario, with the exception of Hammond Reef OPERATION / PROJECT MEASURED INDICATED
Slide 32: Notes to Investors Regarding the Use of Mineral Resources
NOTES TO INVESTORS REGARDING THE USE OF MINERAL RESOURCES Notes to Investors Regarding the Use of Mineral Resources The mineral reserve and mineral resource estimates contained in this presentation have been prepared in accordance with The Canadian Securities Administrators' NI 43-101. These standar
Slide 33: Notes to Investors Regarding the Use of Mineral Resources
NOTES TO INVESTORS REGARDING THE USE OF MINERAL RESOURCES CIM definitions (2014) were followed in the estimation of mineral reserves and mineral resources. Mineral reserves are exclusive of mineral resources. Tonnes and gold ounce information is rounded to the nearest thousand. Discrepancies in tota
Slide 34: panamericansilver.com agnicoeagle.com
Trading Symbol: PAAS on TSX & NASDAQ Investor Relations: 604-806-3191 ir@panamericansilver.com panamericansilver.com Trading Symbol: AEM on TSX & NYSE Investor Relations: 416-947-1212 info@agnicoeagle.com agnicoeagle.com
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