Slide 1: Q3 2020 Earnings Review
Q3 2020 Earnings Review 1 November 5, 2020
Slide 2: Cautionary Note
Cautionary Note Non-GAAP Measures This presentation of Pan American Silver Corp. and its subsidiaries (collectively, “Pan American”, “Pan American Silver”, the “Company”, “we” or “our”) refers to various non-GAAP measures, such as “AISC", “cash costs per ounce sold”, “adjusted earnings” and “basic a
Slide 3: Cautionary Note
Cautionary Note These forward-looking statements and information reflect Pan American’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by Pan American, are inherently subject to significant operational, business, e
Slide 4: Consolidated Financial Results
Consolidated Financial Results Unaudited in millions of US$, except per share amounts Q3 2020 Q3 2019 Revenue 300,414 352,187 Mine operating earnings 124,561 63,850 Net income 65,260 37,719 Basic income per share(1) 0.31 0.18 Adjusted income(2) 72,088 71,202 Basic adjusted income per share(1) 0.34 0
Slide 5: Q3 2020 Consolidated Cash Flows
Q3 2020 Consolidated Cash Flows 1. “STI” means short-term investments, “NCI” means non-controlling interests, and “D&A” means depreciation and amortization. 2. Net cash generated from operating activities before changes in working capital, interest and income taxes paid, and mine care and maintenanc
Slide 6: Reconciliation of adjusted (loss) earnings to GAAP net (loss) earnings
Reconciliation of adjusted (loss) earnings to GAAP net (loss) earnings Q3 2020 Adjusted Net Earnings of $0.34 / Basic Share 6 November 5, 2020
Slide 7: Production
Production Silver Production Gold Production (ounces ‘000s) (ounces ‘000s) Q3 2020 Q3 2019 Q3 2020 Q3 2019 Silver Segment: La Colorada 1,445 2,091 1.0 1.2 Dolores 871 1,496 22.7 33.1 Huaron 274 975 — 0.3 Morococha(1) 142 588 0.1 0.3 San Vicente(2) 655 860 0.1 0.1 Manantial Espejo 606 606 5.4 5.4 Gol
Slide 8: Cash Cost and AISC
Cash Cost and AISC Cash Costs (1) AISC (1) ($ per ounce) ($ per ounce) Q3 2020 Q3 2019 Q3 2020 Q3 2019 La Colorada 6.54 2.82 10.07 4.03 Dolores (5.12) — (22.92) 7.45 Huaron (0.97) 5.32 5.78 8.69 Morococha 6.07 5.66 13.23 11.36 San Vicente 18.08 13.04 20.08 15.21 Manantial Espejo 14.03 24.22 12.22 21
Slide 9: Liquidity and Capital Position
Liquidity and Capital Position US$ Millions September 30, 2020 Cash and Short-term Investments 231.6 Working Capital(1) 465.6 Amount drawn on Revolving Credit Facility* 90.0 Total Debt(2) 129.8 *In October 2020, Pan American made an additional repayment on the Credit Facility of $30M. 1. Working cap
Slide 10: Cash Flow Priorities
Free Cash Flow Allocation(1)(2) • Since 2010, returned $484M to shareholders (dividends + share buy-backs) and invested $588M in expansions • Increased quarterly dividend twice in 2020; quarterly dividend of $0.07/share as of November 2020 Return to shareholders through Cash Flow Priorities ~$1.4 Bi
Slide 11: 2020 Guidance
2020 Guidance(1) Annual production, Cash Costs and AISC Silver Production Gold Production Cash Costs AISC (million ounces) (thousand ounces) ($ per ounce)(2) ($ per ounce)(2) Silver Segment(3) 17.7 – 18.7 130.0 – 138.0 6.20 – 7.70 10.50 – 12.50 Gold Segment(3) 0.3 395.0 – 437.0 800 – 860 1,050 – 1,1
Slide 12: Q&A
Q&A 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 12
Slide 13: Archived recording
Archived recording 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/ 13