Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Q4 2024 Earnings Presentation
39 slides from Pan American Silver's earnings presentation, Feb 20, 2025
Slide 1: Conference Call February 20, 2025
1 CONFERENCE CALL // FEBRUARY 20, 2025
Slide 2: Cautionary Note
2 CAUTIONARY NOTE 2025 relative to 2024; the expected costs of running operations at Dolores in the other parties with whom Pan American does business; inadequate insurance, or post-mining period; the timing of full-operation of the filter-stack tailings storage inability to obtain insurance, to cov
Slide 3: Record Revenue, Cash Flow and Free Cash Flow
3 // Record Revenue, Cash Flow and Free Cash Flow Production of 6.0 million ounces silver Adjusted earnings of $126.9M, or and 224 thousand ounces gold $0.35 per share1 AISC (excl. NRV): Silver Segment of Record Free Cash Flow of $196.2M2 $19.88/oz and Gold Segment of $1,521/oz1 Entered 2025 with a
Slide 4: Q4 and FY 2024 financial results
4 in millions of US$, except per share amounts Q4 2024 FY 2024 Revenue 815.1 2,818.9 Mine operating earnings 184.9 548.5 Net earnings 107.8 112.7 Basic earnings per share1 0.30 0.31 Adjusted earnings2 126.9 286.7 Basic adjusted earnings per share1,2 0.35 0.79 Net cash generated from operating activi
Slide 5: Silver and Gold Production
5 Silver Production Gold Production (koz) (koz) Q4 2024 FY 2024 Q4 2024 FY 2024 La Colorada 1,606 4,878 0.7 2.6 Cerro Moro 829 2,969 22.5 77.5 Huaron 919 3,519 - 0.1 San Vicente1 735 3,109 - - Jacobina 1 4 52.4 196.7 El Peñon 1,174 3,870 32.4 126.8 Timmins2 7 15 27.9 123.7 Shahuindo 73 278 34.7 135.
Slide 6: Cash Costs and AISC
6 Cash Costs1 AISC1 ($ per ounce) ($ per ounce) 1. Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” Q4 2024 FY 2024 Q4 2024 FY 2024 section of the MD&A for the period ended December 31, 2024, for a detailed description of these measures and
Slide 7: Realized Metal Prices and Quantities of Metal Sold
7 Realized Metal Prices1 Quantities of Metal Sold2 Q4 2024 FY 2024 Q4 2024 FY 2024 Silver 30.87 28.06 5,599 19,473 Gold 2,666 2,388 226.7 891.9 Zinc 3,060 2,828 9.5 35.1 Lead 1,967 2,058 5.6 18.2 Copper 9,019 9,260 1.1 4.5 1. Metal price stated as dollars per ounce for silver and gold, and dollars p
Slide 8: Q4 Produced vs Sold Metal and Inventory Effect
8 Payable Metal Quantities of Inventory Revenue Mine/Product Produced1 Metal Sold build/(draw)3 Effect ($M) Silver (koz) Silver Gold La Colorada 1,500 1,553 (53) $1.6 Inventory build of 147 koz Inventory draw of 3.0 koz Cerro Moro 828 807 21 ($0.6) Huaron 804 820 (16) $0.5 San Vicente2 701 624 77 ($
Slide 9: FY 2024 Produced vs Sold Metal and Inventory Effect
9 Payable Metal Quantities of Inventory Revenue Mine/Product Produced1 Metal Sold build/(draw)3 Effect ($M) Silver (koz) Silver Gold La Colorada 4,559 4,372 187 ($5.4) Inventory build of 519 koz Inventory draw of 1.3 koz Cerro Moro 2,967 3,042 (75) $1.8 Huaron 3,086 3,095 (9) $0.3 San Vicente2 2,847
Slide 10: Q4 Cash Flow Performance
10 Sustaining Cash Flow Performance Growth, Business Development, and Other $1,000 $290 $887 $900 $352 ($20) ($7) ($6) $800 ($78) $700 ($65) $630 ($36) ($6) $600 ($6) Millions $500 $470 $400 $300 $200 $100 $0 Cash and STI at Adjusted Sustaining capital Net income tax Dividends paid Net changes in Ne
Slide 11: FY 2024 Cash Flow Performance
11 Sustaining Cash Flow Performance Growth, Business Development, and Other $1,600 $1,046 $1,400 $1,200 ($279) $290 $1,000 ($164) $887 ($145) ($93) ($30) Millions ($14) $800 $735 ($128) ($24) ($12) $600 $441 $400 $200 $0 Cash and STI at Adjusted Sustaining Net changes in Dividends paid Net income ta
Slide 12: Q4 2024 basic adjusted earnings of $0.35/share
12 Q4 2024 basic adjusted earnings of $0.35/share 1 $300.0 $5.9 $0.4 $12.1 $13.7 $250.0 $25.8 $53.5 $200.0 $53.8 Millions $150.0 $126.9 ($137.4) ($6.0) ($2.5) $107.8 ($0.2) $100.0 $50.0 $- Net earnings Change Net Effect of Derivative Effect of Investment Severance Gains from Unrealized Mineral Litig
Slide 13: FY 2024 basic adjusted earnings of $0.79/share
13 FY 2024 basic adjusted earnings of $0.79/share 1 $500.0 $450.0 $7.3 $2.6 $1.4 $0.1 $14.3 $19.6 $46.8 $400.0 $53.7 $350.0 $71.1 $286.7 $300.0 ($137.4) ($21.3) ($1.1) Millions $250.0 $116.9 $200.0 $150.0 $112.7 $100.0 $50.0 $- Net Net Effect of Change Tax Derivative Investment Severance Litigation
Slide 14: 2024 Guidance vs Actual
14 FY 2024 FY 2024 Achieved 2024 Guidance for Actual Guidance1 silver and gold production. Consolidated Production Silver – Moz 21.1 21.0 – 23.0 Silver Segment Cash Costs and Gold – koz 892 868 – 9882 AISC were above 2024 Guidance Ranges. Zinc – kt 45 42 – 46 Lead – kt 21 19 – 22 Gold Segment Cash C
Slide 15: 2024 Capital Expenditures vs Forecast
15 FY 2024 Actual FY 2024 Expenditures Forecast1 Project capital invested to advance Sustaining Capital strategic goals: La Colorada 24.2 22.5 – 23.0 • Jacobina – processing plant Cerro Moro 12.2 14.0 – 15.5 upgrades and mine Huaron 17.1 17.5 – 18.5 optimization study San Vicente2 5.0 4.5 – 5.5 Jaco
Slide 16: Total Available Liquidity
16 // An investment grade name Cash + Revolving Cash + short-term short-term Credit TOTAL AVAILABLE investments Facility TOTAL AVAILABLE investments $887M $750M LIQUIDITY4 LIQUIDITY Cash + short-term investments of $887M $1,637M3 $1,220M includes $307M cash proceeds from La Arena sale2 Total debt3 o
Slide 17: 2025 Production and AISC Guidance
17 // Production weighted to the second half of 2025, with a corresponding decrease in AISC/oz over that period Ag Au 20.0 – 21.0 Moz 735 – 800 koz ANNUAL CONSOLIDATED ANNUAL CONSOLIDATED PRODUCTION PRODUCTION $16.25 - $18.25 per oz $1,525 - $1,625 per oz SILVER SEGMENT AISC1 GOLD SEGMENT AISC1 Note
Slide 18: 2025 Production and AISC by Mine
18 Silver Production Gold Production AISC (Moz) (koz) ($ per ounce) 1 Silver Segment: La Colorada (Mexico) 5.50 – 5.80 2 20.00 – 22.00 Cerro Moro (Argentina) 2.80 – 2.90 77 – 87 6.00 – 10.00 Huaron (Peru) 3.70 – 3.90 – 16.00 – 17.50 San Vicente (Bolivia)2 2.70 – 2.90 – 19.00 – 20.50 Silver Segment C
Slide 19: 2025 Quarterly Guidance
19 // Production weighted to the second half of 2025, with a corresponding decrease in AISC/oz over that period FY 2024 Q1 Guidance Q2 Guidance Q3 Guidance Q4 Guidance Guidance Silver Production (Moz) 4.75 – 5.00 4.95 – 5.20 5.10 – 5.35 5.20 – 5.45 20.00 – 21.00 Gold Production (koz) 175 – 189 179 –
Slide 20: 2025 Capital Expenditures
20 Expenditures ($ millions) Sustaining Capital Project capital invested to advance La Colorada (Mexico) 19.0 - 21.0 strategic goals: Cerro Moro (Argentina) 10.0 - 11.0 Huaron (Peru) 18.0 - 19.0 • La Colorada (Skarn) - continued San Vicente (Bolivia)1 4.5 exploration and in-fill drilling, Jacobina (
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Slide 22: Dividend Policy and Share Buyback
22 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 23: La Colorada operation outlook
23 • Improvement in ventilation conditions following the completion of new ventilation infrastructure expected to result in a ~16% increase in silver production and ~19% decrease in AISC in 2025 relative to 2024. • 2025 mine plan contemplates the processing of ~100k tonnes of lower-grade oxide ores
Slide 24: Cerro Moro Throughput, Production and Grades
24 • LOM plan consists of an integrated operation where open pits and underground mines are fed to the processing plants at an average throughput of 1,060 tpd. • 2025 production forecast reflects mine sequencing to lower silver and higher gold grades. • In 2025, both gold and silver production are e
Slide 25: Huaron Throughput, Production and Grades
25 • Silver production expected to be higher relative to 2024 driven by higher throughput and higher silver grades from the development of the Horizonte zone. • AISC per ounce is expected to increase relative to 2024, largely due to the additional $8 to $10 cost per tonne for operating the tailings
Slide 26: San Vicente Throughput, Production and Grades
26 • San Vicente is a steady state producer of silver-zinc and silver-lead concentrates through standard floatation processes. • Silver production is expected to be slightly lower than 2024 due to lower silver grades from mine sequencing into lower grade ores. • 2025E reflects essential plant mainte
Slide 27: Jacobina Throughput, Production and Grades
27 • Investment in plant facility infrastructure upgrades in 2024 increased throughput to ~8,600 on average while maintaining recovery rates at ~96%. • We are forecasting investments of $11.0 - $12.5M in project capital to continue advancing an optimization study that will evaluate alternative minin
Slide 28: El Peñon Throughput, Production and Grades
28 • 2025 gold production is expected to be in-line with 2024; silver production is expected to decrease slightly due to additional low-grade stockpile being processed. Gold production is expected to increase slightly quarter-over-quarter throughout 2025. • While the plant has existing processing ca
Slide 29: Timmins Throughput, Production and Grades
29 • 2025 gold production is expected to be similar to 2024, with an expected increase in production costs, largely due to the operation of the paste backfill plant at Bell Creek and labour-driven inflationary pressures, partly offset by a weakening Canadian dollar. • $18.0 - $20.0M of project capit
Slide 30: Shahuindo Throughput, Production and Grades
30 • The LOM plan indicates an average of 13.1 Mtpa for 2023 – 2027, 9.4 Mtpa for 2028-2030, and 6.6 Mtpa for the last two years of production1. • 2025 gold production is expected to be slightly lower relative to 2024; the expected decrease reflects lower grade ore stacked, reflective of the mineral
Slide 31: Minera Florida Throughput, Production and Grades
31 • Steady-state gold production with slightly lower silver production relative to 2024 as a result of mine sequencing into lower silver grade ores. • Gold production is expected to increase in the second half of 2025 due to (i) mine sequencing into higher gold grade ores and (ii) higher throughput
Slide 32: Dolores Gold and Silver Production
32 • Stacking of stockpiled ore on the heap concluded in January 2025; the property has entered its residual leaching and reclamation phase. • Gold production is expected to be more weighted to Q1 2025; silver production is expected to follow a flatter profile throughout the year due to its longer l
Slide 33: Mineral Reserves as of June 30, 2024
PAN AMERICAN SILVER MINERAL RESERVES 5: «i... 20,2020 Tonnes Ag Contained Au Contained Cu Contained Pb Contained Zn Contained Property Location Classificetion (wit) _(g/t)__Ag(Moz) (g/t) Au (Koz) (%) __Cu(kt) _—_—(%)_—sPb (kt) —(%)_——Zn (kt) Escobal Guatemala Proven 25 ‘486 39.5 0.42 34.2 - - 1.02 2
Slide 34: Measured & Indicated Resources
PAN AMERICAN SILVER MEASURED « INDICATED RESOURCES as of June 30, 2024123 Contained Contained Au Property Location Classification Tonnes(Mt) Ag(B/t) “A2iaros) Au (at) (kez) cu(%) Pb(%) Zn (%) Navidad Argentina Measured 15.4 137 67.8 - - 0.10 1.44 - Indicated 139.8 126 564.5 - - 0.04 0.79 - La Colora
Slide 35: Measured & Indicated Resources (continued)
PAN AMERICAN SILVER MEASURED « INDICATED RESOURCES as of June 30, 2024123 Property Location Classi Tonnes (Mt) en revs Au (2/t) coe AU cu(%) Pb (%) 2m (%) Jacobina Brazil Measured 39.7 1.70 2,475.1 - - - Indicated 55.1 1.58 2,796.0 - - - La Pepa (80%)!") Chile Measured a7 0.61 922.8 - - - Indicated
Slide 36: Resources as of June 30, 2024
36 as of June 30, 20241,2,3 (5)
Slide 37: Metal Price Assumptions for Reserves & Resources
METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & ° RESOURCES 3: une.30, 202% Mine Category Ag US$/oz Au US$/oz cu US$/t Pb USS/t Zn USS/t Escobal All categories 20.00 1,300 2,204 2,424 Resemes 20.00 1,700 8,000 2,100 2,600 La Colorada Resources 22.00 1,850 9,000 2,200 2,800 La Colorada Sk
Slide 38: Metal Price Assumptions for Reserves & Resources (continued)
METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES 5: une 3, 2024 Mine Category Ag US$/oz Au US$/oz cu uss/t Pb USS/t Zn US$/t Reserves 21.00 1,850 Timmins West Resources 23.00 1,950 Reserves 21.00 1,850 Bell Creek Resources 23.00 1,950 Whitney Resources 1,950 Reserves 21.00 1,850
Slide 39: Webcast archive information
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/