Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Q2 2024 Earnings Presentation
21 slides from Pan American Silver's earnings presentation, Aug 8, 2024
Slide 1: Conference Call, August 8, 2024
1 CONFERENCE CALL // AUGUST 8, 2024
Slide 2: Cautionary Note
2 CAUTIONARY NOTE These forward-looking statements and information reflect Pan American’s current relationships with, and claims by, local communities and indigenous populations; views with respect to future events and are necessarily based upon a number of our ability to obtain all necessary permit
Slide 3: Record revenue of $686.3M
3 // Record revenue of $686.3M Production of 4.6 million ounces silver Adjusted earnings of $40.0M, or and 220 thousand ounces gold $0.11 per share(1) , incl. $0.03 per share tax expense related to inflation Silver Segment Cash Costs of $14.49 per adjustments in Argentina ounce and Gold Segment Cash
Slide 4: Q2 2024 financial results
4 in millions of US$, except per share amounts Q2 2024 Revenue 686.3 Mine operating earnings 116.9 Net loss (21.4) Basic loss per share(1) (0.06) Adjusted earnings(2) 40.0 Basic adjusted earnings per share(1)(2) 0.11 Net cash generated from operating activities 162.7 Net cash generated from operatin
Slide 5: Silver and gold production by mine
5 Silver Production Gold Production (koz) (koz) Q2 2024 Q2 2024 La Colorada 835 0.5 Cerro Moro 570 17.1 Huaron 829 - San Vicente(1) 774 - Jacobina 1 46.9 El Peñon 850 36.0 Timmins 3 30.7 Shahuindo 67 31.0 La Arena 8 21.0 Minera Florida 189 18.9 Dolores 440 18.1 Total(2) 4,567 220.4 1. San Vicente da
Slide 6: Cash Costs and AISC by mine
6 Cash Costs(1) AISC(1) ($ per ounce) ($ per ounce) Q2 2024 Q2 2024 1. Cash Costs and AISC are non-GAAP measures. Please refer La Colorada(2) 26.62 36.05 to the “Alternative Performance (Non-GAAP) Measures” section of the MD&A for the period ended June 30, 2024, Cerro Moro 13.15 20.10 for a detailed
Slide 7: Realized metal prices and quantities sold
7 Realized Metal Quantities of Metal Prices(1) Sold(2) Q2 2024 Q2 2024 Silver $ 28.14 4,771 Gold $ 2,336 219.1 Zinc $ 2,901 8.2 Lead $ 2,171 4.3 Copper $ 10,515 1.1 1. Metal price stated as dollars per ounce for silver and gold, and dollars per tonne for zinc, lead and copper, inclusive of final set
Slide 8: Payable metal produced vs sold, inventory effect
8 Payable Metal Quantities of Inventory Revenue Mine/Product Produced(1) Metal Sold build/(draw)(3) Effect Silver Gold koz koz koz US$M Inventory draw of 400 Inventory build of 0.9 koz Silver koz La Colorada 780 634 146 ($4.1) Cerro Moro 569 606 (36) $0.9 Huaron 726 789 (63) $1.8 San Vicente(2) 752
Slide 9: Q2 2024 cash and short-term investments bridge
9 Sustaining Cash Flow Performance Growth, Business Development, and Other $700 $600 $243 $500 ($61) ($41) $403 $3 ($36) $400 $369 ($31) ($3) Millions $331 ($29) ($9) $300 $200 $100 $0 Cash and STI at Adjusted operating Sustaining capital Net changes in Dividends paid Net income tax Shares repurchas
Slide 10: H1 2024 cash and short-term investments bridge
10 Sustaining Cash Flow Performance Growth, Business Development, and Other $1,000 $900 ($126) $426 $800 ($113) $700 ($73) $600 ($72) Millions $500 $441 ($24) ($5) $453 ($60) ($17) $400 ($8) $369 $300 $200 $100 $0 (1) Cash and STI at Adjusted operating Sustaining capital Net changes in Dividends pai
Slide 11: Q2 2024 basic adjusted earnings of $0.11/share
11 Q2 2024 basic adjusted earnings of $0.11/share (1) $1.2 $1.2 $2.4 $31.0 ($6.7) ($5.1) $40.0 ($3.0) ($2.0) Millions $42.4 ($21.4) 1. Adjusted earnings and basic adjusted loss per share are non-GAAP financial measures. Please refer to the section “Alternative Performance (Non-GAAP) Measures” of the
Slide 12: H1 2024 basic adjusted earnings of $0.12/share
12 H1 2024 basic adjusted earnings of $0.12/share (1) $2.6 $0.9 $0.1 $2.8 $7.8 $11.7 ($12.3) $44.7 $44.7 ($11.5) ($1.7) Millions $51.8 ($52.2) 1. Adjusted earnings and basic adjusted loss per share are non-GAAP financial measures. Please refer to the section “Alternative Performance (Non-GAAP) Measu
Slide 13: Q2 2024 Operating Outlook vs actual
13 Q2 2024 Operating Q2 2024 Outlook(1) Actual 1. The 2024 Quarterly Operating Outlook was provided in the Company’s Q4 2023 MD&A dated February 21, 2024. 2. Cash Costs and AISC are non-GAAP measures. Please refer to the Consolidated Production section “Alternative Performance (Non-GAAP) Measures” o
Slide 14: Total Available Liquidity $1,119M
14 Cash + short-term Revolving investments Credit TOTAL AVAILABLE $369M Facility LIQUIDITY Cash + short-term investments of $369M $750M $1,119M(3) Total debt(2) of $809.5M related to senior notes and construction loans & leases $283M with 4.625% coupon maturing in December 2027 $500M with 2.63% coup
Slide 15: 2024 Operating Outlook: production and costs
15 Silver Production Gold Production Cash Costs AISC (million ounces) (thousand ounces) ($ 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 (Peru) 3.5 – 3.8 – 9.30 - 1
Slide 16: 2024 capital expenditures outlook
16 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) 4.5 – 5.5 Jacobina Jacobina (Brazil) 53.0 – 55.0
Slide 17: Vision and 2024 priorities
17 // 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 Operating Outlook(1) ➢ f
Slide 18: La Colorada ventilation infrastructure completed
18 // Significant improvement in mine ventilation conditions following on-schedule completion of new infrastructure in July 2024 Two 2,000 horsepower ventilation fans installed at the surface of the Guadalupe shaft – a 5.5 metre by 580 metre deep, fully concrete-lined ventilation shaft Click here to
Slide 19: Question queue instructions
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Slide 20: Dividend Policy and Share Buyback
20 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 the underlying basis
Slide 21: Audio and presentation archive
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/