Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Investor Presentation (March 2024)
46 slides from Pan American Silver's investor presentation, March 2024
Slide 1: Investor Presentation March 2024
INVESTOR PRESENTATION // FEBRUARY 2023 I N V E S T O R P R E S E N TAT I O N // MARCH 2024
Slide 2: Cautionary Note and Non-GAAP Measures
2 regarding the completion of any capital projects, including the installation of business; inadequate insurance, or inability to obtain insurance, to cover these ventilation fans on the La Colorada ventilation shaft, and any economic or risks and hazards; employee relations; relationships with, and
Slide 3: Cautionary Note Continued
3 CONTINUED Further to recent amendments, mineral property disclosure requirements in the United States (the “U.S. Rules”) are governed by subpart 1300 of NOT AN OFFER OR A SOLICITATION Regulation S-K of the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) which differ from the CI
Slide 4: Portfolio offers scale and quality in the Americas
CANADA 4 Head Office Timmins Dolores La Colorada Skarn Deposit // Pan American’s portfolio offers scale & quality in the Americas, MEXICO GUATEMALA where we have been operating for 30 years Escobal (C&M) • 11 producing mines • 2 catalysts with potential for material 11% 4% Shahuindo growth: Escobal
Slide 5: Record revenue driven by Yamana transaction
5 // Record revenue of $2.3B driven by transformational Yamana transaction Produced 20.4 Moz silver and Silver segment cash costs of $13.07; 882.9 koz gold AISC of $18.17. Gold segment cash costs of $1,113; AISC of $1,371(1) Completed acquisition of Yamana Announced PEA results for the La and succes
Slide 6: Cash flow bridge 2023
6 Sustaining Cash Flow Performance Growth, Business Development, and Other $1,200 $125 $1,000 $649 $69 $661 $800 ($382) Millions $600 ($289) ($130) ($77) $441 ($149) ($25) $400 ($14) $295 ($130) ($9) $200 $142 $0 Cash and STI at Adjusted Net changes in Sustaining Net income Dividends paid Net other
Slide 7: 2024 production and cost guidance
7 // forecasting an increase in silver and gold production relative to 2023 and strong performance on costs (1) Ag Au 21.0 – 23.0 Moz 880 – 1,000 Koz ANNUAL CONSOLIDATED ANNUAL CONSOLIDATED PRODUCTION PRODUCTION $11.70 - $14.10 per oz $1,165 - $1,260 per oz SILVER SEGMENT CASH COSTS1 GOLD SEGMENT CA
Slide 8: Total available liquidity
8 Revolving Credit TOTAL AVAILABLE ~$90M in annual savings from lower care & maintenance costs Facility LIQUIDITY Cash + and reduced interest expense and savings in excess of $60M $750M short-term annually in G&A synergies from Yamana transaction $1,191M(3) investments $441M Total debt(2) of $801.6M
Slide 9: La Colorada ventilation shaft improvement
9 // significant improvement in mine operating conditions expected following completion mid 2024 The concrete-lined 5.5-metre diameter ventilation shaft was fully excavated to a depth of 581 metres in December 2023. This infrastructure is strategically located Ventilation fans to be installed on to
Slide 10: La Colorada Skarn PEA highlights
10 10 ZACATECAS, MEXICO // Preliminary Economic Assessment Highlights • Production averaging 17.2M ozs of silver, 427k tonnes of zinc and 218k tonnes of lead annually during the first 10 years • 50,000 tpd sub-level cave mine and conventional flotation plant • 17-year mine life and continued explora
Slide 11: Skarn mineralisation concentrated in three zones
11 // mineralisation is concentrated in 3 zones, covering an area of 1,500 metres by 1,100 metres laterally, and a depth of 800 metres to 1,900 metres below surface (1) Please refer to the NI 43-101 Technical Report dated January 31, 2024 for the Preliminary Economic Assessment of the La Colorada Sk
Slide 12: One of the world's best silver mines: Escobal
12 SANTA ROSA, GUATEMALA MEXICO GUATEMALA // One of the world’s best silver mines Escobal • High-quality, well-built operation with over US$500M invested(1) • One of the world’s largest primary silver deposits with reserves of 264 Moz • 3 consecutive years of production at 20 Moz Ag/year at AISC con
Slide 13: Escobal ILO 169 consultation process
13 For more information, please visit https://mem.gob.gt/derecho- // Escobal mining license suspended pending completion of an ILO 169 Consultation in Guatemala minero-escobal/ PRE-PHASE 1 PHASE 1 PHASE 2 PHASE 3 REVIEW PRE-CONSULTATION CONSULTATION SUPREME COURT VERIFICATION PAS Guatemala shall wor
Slide 14: The go-to name for investing in silver
14 Large silver reserves(1) Proven and probable mineral reserves of 486.8 Moz plus measured and indicated mineral resources of 1,033.8 Moz, as of June 30, 2023 Escobal mine has potential to add ~20 Moz of silver production annually following restart of operations(2) The mine is currently on care and
Slide 15: Silver supply and demand deficit
15 // ~ 140 Moz supply shortfall estimated for 2023, marking the 3rd consecutive year of physical deficit, and reflecting record high industrial demand in 2023 Photography & Other Industrial Mine 2% 49% Recycling Production Investment2 18% 82% 26% Silver Silver Supply Demand 1.02B ozs 1.20B ozs Jewe
Slide 16: Silver demand for solar and automobiles
16 // Silver demand for solar installations and automobiles is large and increasing, accounting for ~237 Moz or 20% of total demand in 2023 180 90 85 160 80 140 75 70 120 65 100 60 80 55 50 60 45 40 40 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2016 2017 2018 2019 2020 2021 2022 2023 2024 202
Slide 17: Industrial demand from decarbonization and electrification
17 // Growing industrial demand from global transition to decarbonization and electrification • Silver has the highest electrical and thermal conductivity of all metals, making it an important metal in the transition to a low carbon economy. • ~11% of silver demand is for photovoltaics (solar panels
Slide 18: ESG ratings and memberships
18 REPORTING FRAMEWORKS & STANDARDS 60 BBB rating Ranked top 11th percentile in Ranked in the top 50th the Metals & Mining industry percentile Scale: 0 (worst) to 100 (best). Scale: CCC (worst) to AAA (best). MEMBERSHIPS & COMMITMENTS 28.5 (medium risk) C+ rating #10 out of 30 companies in Ranked to
Slide 19: PAAS snapshot
19 // PAAS SNAPSHOT 1 $4.7 B $0.10 MARKET CAP QUARTERLY DIVIDEND2 364.7 M 3.2% Long-life silver reserves SHARES OUTSTANDING DIVIDEND YIELD Medium and long-term growth projects $49 M 8 AVERAGE DAILY SELL SIDE TRADING VALUE3 ANALYSTS Committed to best-in-class ESG performance MEMBER OF THE MSCI WORLD
Slide 20: Appendix
PAN AMERICAN APPENDIX
Slide 21: Q4 and FY 2023 financial results
21 in millions of US$, except per share amounts Q4 2023 FY 2023 Revenue 669.6 2,316.1 Mine operating earnings 64.9 296.8 Net loss (67.8) (104.9) Basic loss per share(1) (0.19) (0.32) Adjusted (loss) earnings (2) (16.3) 39.3 Basic adjusted (loss) earnings per share(1)(2) (0.04) 0.12 Net cash generate
Slide 22: 2024 guidance by mine
22 Silver Production Gold Production Cash Costs AISC (million ounces) (thousand ounces) ($ per ounce)(1) ($ per ounce) (1) 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 23: Quarterly guidance 2024
23 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 21.0 - 23.0 Gold Production (thousand ounces) 204 - 231 221 - 252 229 - 258 226 - 259 880 - 1,000 Silver Segment Cash Costs (1) 16.50 - 18.50 15.50 -
Slide 24: 2024 capital expenditures
24 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)(1) 4.5 – 5.5 Jacobina Jacobina (Brazil) 53.0 – 55.0
Slide 25: ESG structure and accountability
25 // Structure and Accountability S A F E T Y, E N V I R O N M E N TA L AND SOCIAL • The Communities and Sustainable Development (CSD) Committee reviews the Company’s 35% sustainability and ESG performance. • The Health, Safety, and Environment (HSE) Committee provides policy direction and oversigh
Slide 26: Timmins: two producing mines
26 ONTARIO, CANADA Timmins West Bell Creek // Two producing mines in prolific Canadian mining camp • 100% owned and operated • Comprises two underground gold mines, Timmins West and Bell Creek, which both feed the Bell Creek mill • Throughput capacity of ~6,000 tpd producing doré • Exploration succe
Slide 27: Dolores: large gold/silver mine
27 Dolores CHIHUAHUA, MEXICO // Large gold / silver Mine • 100% owned and operated • Mining is by open pit and uses conventional cyanide heap leaching to produce gold and silver doré • Average throughput capacity of 20,000 tpd Silver & Gold Production Mineral Reserves & Resources Silver (Moz) Gold (
Slide 28: La Colorada: largest silver producing mine
28 La Colorada ZACATECAS, MEXICO // Pan American’s largest silver producing mine • 100% owned and operated underground mine • Expansion completed in 2017 – new mine shaft and sulphide processing plant • Currently producing silver-gold doré bars from a conventional cyanide leach plant for the oxide o
Slide 29: Shahuindo: large gold mine
29 CAJAMARCA, PERU Shahuindo // Large gold mine with significant growth potential • 100% owned and operated open pit gold mine producing silver by-products from doré • Average throughput capacity of ~36,000 tpd with heap leach processing • Commercial production began in 2016, significant exploration
Slide 30: La Arena: gold mine with sulphide expansion potential
30 LA LIBERTAD, PERU La Arena // Gold mine with sulphide expansion potential (La Arena II) • 100% owned and operated open pit gold mine producing doré • Run-of-mine heap leach currently processing ~36,000 tpd • Exploration success has extended mine life Gold Production (Koz) Mineral Reserves & Resou
Slide 31: Huaron: polymetallic silver mine
31 PASCO, PERU Huaron // Polymetallic silver mine • 100% owned and operated underground mine • Average throughput capacity of ~2,500 tpd using flotation technology to produce silver in copper, lead, and zinc concentrates Silver Production (Moz) Mineral Reserves & Resources Grade Contained Metal 3.7
Slide 32: Jacobina: large gold mine
32 BAHIA, BRAZIL Jacobina // Large gold mine with significant growth potential (1) • 100% owned and operated underground gold mine producing doré via a conventional leaching process • Throughput of ~8,500 tpd at gold recovery rates of ~96% Gold Production (koz)(1) Mineral Reserves & Resources 195 Gr
Slide 33: San Vicente: polymetallic silver mine
33 POTOSÍ, BOLIVIA San Vicente // Polymetallic silver mine • 95% owned and operated underground mine • Average throughput capacity of ~950 tpd utilizing a standard flotation process to produce silver-zinc and silver-lead concentrates • Mechanization efforts, enhanced mine dilution controls and impro
Slide 34: El Peñon: large gold/silver mine
34 ANTOFAGASTA, CHILE El Peñon // Large gold / silver Mine • 100% owned and operated underground gold and silver mine producing gold and silver doré • The mine has been in operation since 1999 and has consistently replaced ounces mined Silver & Gold Production (1) Mineral Reserves & Resources Silver
Slide 35: Minera Florida: polymetallic gold mine
35 METROPOLITAN REGION, CHILE Minera Florida // Polymetallic gold mine • 100% owned and operated underground mine producing gold and silver doré bars and zinc concentrate Gold Production (koz)(1) Mineral Reserves & Resources 85 Grade Contained Metal 82 72(2) Tonnes Au Ag Zn Au Ag Zn (Mt) (g/t) (g/t)
Slide 36: Cerro Moro: integrated gold and silver complex
36 SANTA CRUZ, ARGENTINA // Integrated gold & silver mining complex Cerro Moro • 100% owned and operated open pit and underground gold and silver complex feeding a single processing plant producing gold and silver doré Silver & Gold Production (1) Mineral Reserves & Resources Silver (Moz) Gold (koz)
Slide 37: La Arena II: undeveloped copper porphyry
37 LA LIBERTAD, PERU La Arena II // 100% owned, undeveloped copper porphyry Mineral Resources 1 (as of June 30, 2023) Grade Contained Metal Tonnes Au Cu Au Cu (Mt) (g/t) (%) (koz) (kt) Model Highlights & Key Assumptions M&I Resources 708.7 0.23 0.37 5,300 2,633 Inferred Resources 68.2 0.21 0.29 455
Slide 38: Navidad: undeveloped primary silver deposit
38 38 CHUBUT, ARGENTINA Navidad // One of the largest undeveloped primary silver deposits • 100% owned silver project • Project comprises 8 individual mineral deposits in 3 separate mineralized trends • Scalable production profile with high-grade mineralization at surface • Development contingent on
Slide 39: La Colorada Skarn mineral resource estimate
39 ZACATECAS, MEXICO Mining Resource Tonnes Zn Pb Ag Zn Pb Ag Method Classification (millions) (%) (%) (g/t) (Mt) (Mt) (Moz) Indicated 173.6 2.79 1.32 33 4.8 2.3 183 Sub-level Caving (SLC) Inferred 103.6 2.47 1.03 35 2.6 1.1 116 Notes: 7. Reasonable prospects for eventual economic extraction were as
Slide 40: La Colorada Skarn PEA summary
40 Construction period 6 years Production mine life 17 years Production rate 50 ktpd (or 18.25 Mtpa) Notes: Mineable inventory 284.7 million tonnes 1. Assumes metal prices of $2,800 per tonne of zinc, $2,200 per Average annual silver produced first 10 years 17.2 million ounces tonne of lead, and $22
Slide 41: Mineral reserves as of June 30, 2023
41 As of June 30, 2023 (1,2) Tonnes Ag Contained Au Contained Cu Contained Contained Contained (1) See table below entitled Property Location Classification Pb (%) Zn (%) (Mt) (g/t) Ag (Moz) (g/t) Au (Koz) (%) Cu (Kt) Pb (Kt) Zn (Kt) "Metal price assumptions Silver Segment used to estimate mineral H
Slide 42: Measured and indicated mineral resources
6) (Cc) ‘See table below entitied “Metal price assumptions used to estimate mineral reserves and resources as at June 30, 2023”. PAN AMERICAN SILVER MEASURED «INDICATED RESOURCES as of June 30, 2023 (12:3) (Mineral resources are reported excusive of mineral reserves. Tables have been to refect the s
Slide 43: Inferred mineral resources
PAN AMERICAN SILVER INFERRED MINERAL RESOURCES «-«::...30 20250» Pan American Silver Corporation Inferred Mineral Resources as of June 30, 202307 Tonnes Contained Au Contained Property Location _Cassitication “ful” (ght) ‘Agtivos) (g/t) ‘Aufeor) Gul) PbO) _2n0%) Silver Segment Huaron Peru inferred s
Slide 44: Metal price assumptions for reserves and resources
METAL PRICE ASSUMPTIONS USED T0 ESTIMATE MINERAL RESERVES AND RESOURCES as of June 30, 2023 ‘Metal Price Assumptions Used to Estimate Mineral Reserves and Mineral Resources as of June 30, 2023 Property Category Ag USS/oz Au USS/oz Cu USS/t Pb USS/t Huaron Alleategories 1300 1300 7,000 2,000 La Color
Slide 45: Technical notes on mineral reserves and resources
45 All mineral reserves and mineral resources have been estimated in accordance with the standards of the Canadian Institute of Mining, Metallurgy and Petroleum and National Instrument 43-101. Mineral resources are reported exclusives of mineral reserves. Pan American does not expect these mineral r
Slide 46: Investor relations contact
46 Siren Fisekci VP, INVESTOR RELATIONS & CORPORATE COMMUNICATIONS +1.604.806.3191 | ir@panamericansilver.com panamericansilver.com Suite 2100, 733 Seymour St Vancouver, BC, V6B 0S6
Pan American Silver — Investor Presentation (March 2024) on 6ix