Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Q1 2024 Earnings Presentation
19 slides from Pan American Silver's earnings presentation, May 9, 2024
Slide 1: Conference Call May 9, 2024
1 CONFERENCE CALL // MAY 9, 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: On track to achieve 2024 Guidance
3 // On track to achieve 2024 Guidance (1) Production of 5.0 million ounces Adjusted earnings of silver and 223 thousand ounces gold $4.7M, or $0.01 per share(1) Silver Segment Cash Costs of $12.67 Strong financial position with and Gold Segment Cash Costs of $1.1B in Total Available $1,207 below ra
Slide 4: Q1 2024 Financial Results
4 in millions of US$, except per share amounts Q1 2024 Revenue 601.4 Mine operating earnings 71.0 Net loss (30.8) Basic loss per share(1) (0.08) Adjusted earnings(2) 4.7 Basic adjusted earnings per share(1)(2) 0.01 Net cash generated from operating activities 61.1 1. Per share amounts are based on b
Slide 5: Silver and Gold Production
5 Silver Production Gold Production (ounces ‘000s) (ounces ‘000s) Q1 2024 Q1 2024 La Colorada 1,107 0.5 Cerro Moro 766 20.9 Huaron 882 - San Vicente(1) 788 - Jacobina - 46.9 El Peñon 851 31.5 Timmins 4 31.3 Shahuindo 70 33.6 La Arena 9 18.7 Minera Florida 102 21.4 Dolores 430 17.9 Total 5,009 222.9
Slide 6: Cash Costs and AISC
6 Cash Costs(1) AISC(1) ($ per ounce) ($ per ounce) Q1 2024 Q1 2024 1. Cash Costs and AISC are non-GAAP measures. Please refer La Colorada(3) 25.01 25.37 to the “Alternative Performance (Non-GAAP) Measures” section of the MD&A for the period ended March 31, 2024, Cerro Moro 1.62 6.43 for a detailed
Slide 7: Realized Metal Prices and Quantities Sold
7 Realized Metal Quantities of Metal Prices(1) Sold(2) Q1 2024 Q1 2024 Silver 22.61 4,258 Gold 2,078 228.2 Zinc 2,424 8.5 Lead 2,063 3.6 Copper 8,373 1.3 1. Metal price stated as dollars per ounce for silver and gold, and dollars per tonne for zinc, lead and copper, inclusive of final settlement adj
Slide 8: Payable Metal Produced vs Sold and Inventory
8 Payable Metal Quantities of Inventory Revenue Mine/Product Produced(1) Metal Sold build/(draw) Effect Silver Gold koz koz koz US$M Inventory build of 536 Inventory draw of 5.9 koz Silver (thousand ounces) koz La Colorada 1,036 960 75 ($1.7) Cerro Moro 765 901 (136) $2.7 Huaron 775 705 70 ($1.6) Me
Slide 9: Cash and Short-Term Investments Movement
9 Sustaining Cash Flow Performance Growth, Business Development, and Other $700 $183 ($72) $600 ($66) $500 ($41) $441 ($37) ($5) $403 ($31) $400 ($22) Millions ($11) ($8) $331 $300 $200 $100 $0 Cash and STI at Adjusted operating Net changes in Sustaining capital Net income tax Dividends paid Net oth
Slide 10: Q1 2024 Basic Adjusted Loss per Share
10 Q1 2024 Basic Adjusted Loss of $0.08/share (1) $4.7 (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 MD&A for the period ended March 31, 2024, for a detailed description of the
Slide 11: Q1 2024 Operating Outlook
11 Q1 2024 Operating Q1 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 12: Total Available Liquidity $1,081M
12 Cash + short-term Revolving investments Credit TOTAL AVAILABLE $331M Facility LIQUIDITY Cash + short-term investments of $331M $750M $1,081M(3) Total debt(2) of $806.6M related to senior notes and construction loans & leases $283M with 4.625% coupon maturing in December 2027 $500M with 2.63% coup
Slide 13: 2024 Production and Cost Guidance by Mine
13 Silver Production Gold Production Cash Costs AISC (million ounces) (thousand ounces) ($ 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 -
Slide 14: 2024 Quarterly Operating Outlook
14 Q1 Guidance Q2 Guidance Q3 Guidance Q4 Guidance FY 2024 Guidance Silver Production (million ounces) 4.75 - 5.30 5.36 - 5.78 5.44 - 5.97 5.45 - 5.95 21.00 - 23.00 Gold Production (thousand ounces) 204 - 231 221 - 252 229 - 258 226 - 259 880 - 1,000 Silver Segment Cash Costs (2) 16.50 - 18.50 15.50
Slide 15: 2024 Expenditures Guidance
15 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 16: Vision and Strategic Priorities
16 // 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 1 Focus on the safe, efficient and environmentally sound operation of our mines ➢ achieve our 2024 Operating Outlook(1) ➢
Slide 17: 2023–2024 Divestments
17 // Sales of non-core assets focuses portfolio, improves the balance sheet and retains future upside 2023 – 2024 Divestments ✓ Entered into an agreement to sell La Arena gold mine and La Arena II copper/gold development project for $245M in cash upfront, a $50M contingent payment, and a 1.5% gold
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Slide 19: 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/