Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Q3 2021 Earnings Presentation
19 slides from Pan American Silver's earnings presentation, Nov 10, 2021
Slide 1: Conference Call November 10, 2021
1 CONFERENCE CALL // NOVEMBER 10 2021
Slide 2: Cautionary Note Regarding Forward Looking Statements
2 silver and gold segments for the purposes of our financial reporting, as are inherently subject to significant operational, business, economic and described in the Company’s MD&A for the period ended December 31, regulatory uncertainties and contingencies. These assumptions include: the 2020. All
Slide 3: Technical Information
3 CONTINUED statements or information to reflect changes in assumptions or in Canadian public disclosure standards, including NI 43-101, differ significantly circumstances or any other events affecting such statements or information, from the requirements of the United States Securities and Exchange
Slide 4: Q3 2021 Highlights
4 NASDAQ: PAAS // TSX: PAAS Cash and STI balances up $75.1M to Record quarterly revenue of $460.3M $315.4M La Colorada production and grades Operating cash flow of $157.0M increasing Quarterly dividend of $0.10/share High-grade La Colorada Skarn extension discovered
Slide 5: Supporting long-life production from veins and future development of Skarn
5 // Supporting long-life production from veins and future development of Skarn • New surface to 345 level primary ventilation raise in service. In July 2021, cleared the blockage that formed during Q1 2021 commissioning. • Rehabilitation of two other main ventilation raises completed in Q3 2021. •
Slide 6: Throughput rates expected to ramp up to 2,000 tonnes per day by mid 2022
6 // Throughput rates expected to ramp up to 2,000 tonnes per day by mid 2022 Ag production Ag grade Million ounces Grams per tonne 2.50 400 350 2.00 300 1.50 250 200 1.00 150 100 0.50 50 0.00 0 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Production grade
Slide 7: Silver and Gold Production Q3 2021
7 Silver Production Gold Production (ounces ‘000s) (ounces ‘000s) Q3 2021 YTD 2021 Q3 2021 YTD 2021 La Colorada 1,424 3,588 0.7 1.9 Huaron 888 2,675 0.2 0.8 Morococha(1) 547 1,635 0.3 0.8 San Vicente(2) 606 1,908 0.1 0.2 Manantial Espejo 813 2,145 8.4 22.4 Dolores 486 1,732 39.6 120.0 Shahuindo 55 1
Slide 8: Cash Costs and AISC
8 Cash Costs(1) AISC(1) 1. Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of the ($ per ounce) ($ per ounce) MD&A for the period ended September 30, 2021 for a detailed description of these measures and where appropriate a reconci
Slide 9: Realized Metal Prices and Quantities of Metal Sold Q3 2021
9 Realized Metal Prices(1) Quantities of Metal Sold(2) Q3 2021 YTD 2021 Q3 2021 YTD 2021 Silver $24.16 $25.68 4,869 12,403 Gold $1,782 $1,792 170.0 432.2 Zinc $2,989 $2,891 9.8 32.8 Lead $2,286 $2,165 4.6 12.8 Copper $9,399 $9,204 2.2 5.6 1. Metal price stated as dollars per ounce for silver and gol
Slide 10: Q3 2021 Financial Results
10 unaudited in millions of US$, except per share amounts Q3 2021 YTD 2021 Revenue 460.3 1,210.6 Mine operating earnings 98.9 291.9 Net income 20.2 83.9 Basic income per share(1) 0.10 0.40 Adjusted income(2) 37.8 121.8 Basic adjusted income per share(1)(2) 0.18 0.58 Net cash generated from operating
Slide 11: Cash and STI Change from June 30 to September 30, 2021
11 $500 Sustaining Cash Flow Performance Growth, Business Development, and Other $450 $23 $167 $400 $30 $350 ($53) $332 ($24) $315 ($21) ($0) ($25) $300 ($13) ($7) Millions $240 $250 $200 $150 $100 $50 $0 Cash and STI Adjusted Net changes Sustaining Net income Dividends Net other Cash and STI Sales
Slide 12: Q3 2021 Basic Adjusted Net Earnings
12 Q3 2021 Basic Adjusted Net Earnings $0.18/share (1) $80 $70 $1.1 $3.5 $1.3 $7.1 $60 $8.3 $50 $25.3 Millions $40 $37.8 $(28.5) $(0.5) $30 $20.2 $20 $10 $0 Net earnings for Unrealized Effect of foreign Effect of taxes Unrealized losses Unrealized Heap inventory Gain on sale of Income from Adjusted
Slide 13: Prudent balance sheet management reduces risk, improves long-term shareholder returns
13 Cash + Short Term Investments // Prudent balance sheet management reduces risk, improves long-term shareholder returns TOTAL AVAILABLE $315.4M LIQUIDITY $815.4M Balance sheet management √ Total debt2 of $45.0M related to equipment leases and construction loans Revolving Credit Facility $500.0M √
Slide 14: Strong free cash flow generation since the Tahoe acquisition
14 // Strong free cash flow generation since the Tahoe acquisition strengthened the balance sheet with a $559M improvement in total net cash, in addition to $119M in dividend payments and $98M invested in expansionary capital Share in MillionsRepurchases US$ $400 Dividends $315 $300 $279 $240 $206 $
Slide 15: Production and cash flow back-end loaded in 2021
15 Annual Production production and cash 1. Cash Costs and AISC are non-GAAP measures. Please refer to the section “Alternative Performance (Non-GAAP) Measures” of the Q3 flow back-end Silver - Moz 19.0 – 20.0 2021 MD&A for a detailed description of these measures and where appropriate a reconciliat
Slide 16: $1.7B FCF 2010 – YTD 2021
16 5% 8% Treasury Build, net 24% Share of other Repurchases Dividends // $1.7B in FCF generated since 2010, returning $550 M to shareholders (2) and investing $624 M in expansions $1.7B FCF 2010 – YTD 2021 26% Debt Cash Flow Priorities Repayment(3) 1 Maintain balance sheet flexibility, with low to z
Slide 17: ILO Pre-consultation currently underway
17 // ILO 169 Pre-consultation currently underway For more information go to: https://mem.gob.gt/pueblo-indigena-xinka/ • Mine continues under care and maintenance • Provided over 1,500 direct jobs during operation Pre-Consultation Meetings • Perception survey to understand community needs, concerns
Slide 18: To join the queue
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 19: Audio and presentation archive available on our website
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/