Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Investor Day (June 2024)
106 slides from Pan American Silver's investor day presentation, June 2024
Slide 1: Investor Presentation June 2024
I N V E S T O R P R E S E N TAT I O N // JUNE 2024
Slide 2: Cautionary Note
2 anticipated benefits therefrom; forecasts regarding reclamation and closure and base metal prices; fluctuations in prices for energy inputs, labour, CAUTIONARY NOTE expenditures; the expected sale of the La Arena gold mine and La Arena II copper/gold development project; statements regarding annua
Slide 3: General Notes with Respect to Technical Information
3 CONTINUED key assumptions, parameters and methods used to estimate mineral reserves and mineral resources, and a detailed description of known legal, political, General Notes with Respect to Technical Information environmental, and other risks that could materially affect the Company’s business an
Slide 4: Investor Day
4 INVESTOR DAY 09.00 AM 9.10 AM 9.40 AM 11.30 AM 12.10 PM 12.40 PM WELCOME STRATEGIC OPERATIONS & ESG FINANCE LUNCH REMARKS OVERVIEW EXPLORATION 40 MINS 30 MINS 10 MINS 30 MINS 110 MINS Brent Bergeron, SVP Ignacio Couturier, Chief Discussion Siren Fisekci, VP Investor Michael Steinmann, Steve Busby,
Slide 5: To be the world's premier silver producer
5 To be the world’s premier silver producer, with a reputation for excellence in discovery, engineering, innovation, and sustainable development.
Slide 6: Programs & Initiatives
6 // Programs & Initiatives Lost Time Injury Frequency (LTIF) (1) Lost Time Injury Severity (LTIS) (2) • Implementation of the “Doing Safety Differently” initiative which 2023 0.69 2023 40 focuses on leading indicators to mitigate serious safety incidents • High Potential Incidents (HPIs) tracking a
Slide 7: Michael Steinmann, President & CEO
7 - Michael Steinmann, President & CEO
Slide 8: Acquisition and divestment history
8 Acquires Yamana Gold, including Jacobina, Cerro Moro, El Peñon, Minera Acquires Florida and several Increases Aquiline Divests 13 non-core development assets Acquires the ownership of Resources and royalties, streams and Acquires the La Acquires the Alamo Dorado Manantial its Navidad payment agree
Slide 9: Successful integration of new operating assets and realization of synergies
9 // Successful integration of new operating assets and realization of synergies 404 koz ~20 Moz $1.1B $25-30M Shahuindo La Arena February 22, 2019 2018A Gold Production Silver Production Optionality(1) Total Consideration(2) Annual Synergies(3) Timmins & Bell Creek Escobal Jacobina 565 koz 9.2 Moz
Slide 10: Diversified portfolio offers growth opportunities
10 // Diversified portfolio offers growth opportunities Acquisition of La Colorada La Colorada Sulphide Ventilation Plant and Shaft Upgrades Construction $76 million(1) Completion of Acquisition of 30 San Vicente Plant $125 million 2020 - 2024 1,000 Shahuindo and Manantial Espejo Mine and $84 millio
Slide 11: Exploration strategy focused on near-mine reserve replacement
11 // Our exploration strategy is primarily focused on near-mine exploration for mineral reserve replacement Exploration since 2006 has resulted in the Silver Mineral Reserves Evolution Since 2006 (1) discovery of: 316.4 Moz Ag Mineral Reserve ounces added 420.1 463.1 La Colorada Skarn, a world-clas
Slide 12: Our executive team has decades of experience working in the Americas
12 // Our executive team has decades of experience working in the Americas Michael Steinmann Steve Busby Ignacio Couturier PRESIDENT & CEO CHIEF OPERATING OFFICER CHIEF FINANCIAL OFFICER • Joined Pan American in 2004 • Joined Pan American in 2003 • Joined Pan American in 2002 • More than 25 years of
Slide 13: Decentralized organizational structure supports localized management
13 // Our decentralized organizational structure supports a localized management approach Country Manager Canada • Joined Pan American in 2020 • 31 years of experience in the mining industry Director, La Colorada • Previously held senior positions with Rio Tinto and Mexico Goldcorp • Joined Pan Amer
Slide 14: 10-Year PAAS Indexed Total Shareholder Returns
14 10-Year PAAS Indexed Total Shareholder Returns (Jan 2014 – Dec 2023) (1) 400 350 300 250 200 +65% 150 100 (28%) 50 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (2) Pan American Silver Peers Source: FactSet. 1. Calculated as change in share price plus dividends; assumes dividends are reinve
Slide 15: Healthy balance sheet and no public equity offering since 2009
15 // We prioritize a healthy balance sheet and have not had a public offering of equity since 2009 Gross Debt and Gross Leverage Over Time(1) Current Financial Position 1.2x $389M debt repaid in $331M Cash and 2023 STI(4) $901 $750M TOTAL Revolving AVAILABLE Credit LIQUIDITY 0.6x 0.6x Facility $1,0
Slide 16: 58% of the world's silver is produced in the Americas
16 // 58% of the world’s silver is produced in the Americas, concentrated along the cordilleras 2023 Silver Production by Region 2% 5% 8% 29% 8% 19% 29% North America Central & South America (1) Asia CIS Europe Oceania Africa Primary Silver Deposit Source: The Silver Institute, Metals Focus, S&P Glo
Slide 17: Sean McAleer, SVP, Strategic Initiatives
17 - Sean McAleer, SVP, Strategic Initiatives
Slide 18: Portfolio offers scale & quality in the Americas
CANADA 18 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(1) 3% • 2 catalysts with potential for material 10% 26% Shahuindo growth:
Slide 19: Potential to be one of the world's largest zinc-silver mines
19 ZACATECAS, MEXICO // Potential to be one of the world’s largest zinc-silver mines • Anticipated production averaging 17.2 Moz of silver, 427k tonnes of zinc and 218k tonnes of lead annually during the first 10 years • 50,000 tpd sub-level underground cave mine and conventional flotation plant • 1
Slide 20: One of the world's best already-built silver mines
20 SANTA ROSA, GUATEMALA // One of the world’s best already-built silver mines • High-quality, well-built operation with over $500M invested(1) • One of the world’s largest primary silver deposits with reserves of 265 Moz • 3 consecutive years of production at 20 Moz Ag/year at AISC consistently bel
Slide 21: Escobal ILO 169 consultation process
21 For more information, please visit https://mem.gob.gt/derecho- // Escobal mining license suspended pending completion of an ILO 169 Consultation in minero-escobal/ Guatemala PRE-PHASE 1 PHASE 1 PHASE 2 PHASE 3 REVIEW PRE-CONSULTATION CONSULTATION SUPREME COURT VERIFICATION PAS Guatemala shall wor
Slide 22: One of the largest undeveloped primary silver deposits
22 22 CHUBUT, CHUBUT, ARGENTINA ARGENTINA // 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 con
Slide 23: Sam Drier, SVP Business Development
23 - Sam Drier, SVP Business Development
Slide 24: Producing Primary Silver Assets in the Americas
24 Producing Primary Silver Assets in the Americas (1) Global Silver Mined by Primary Commodity 300 Escobal (C&M) (2) 250 31% 29% Mineral Reserves – Contained Silver (Moz) Silver 200 Gold Rochester Copper Lead/Zinc 150 Greens Creek Juanicipio 16% Saucito 71% 100 La Colorada Fresnillo 24% 50 Huaron L
Slide 25: Global Development Primary Silver Assets
25 Global Development Primary Silver Assets (1) 350 PAAS Asset PAAS Interest Held Through New Pacific Metals Corp 300 Iska Iska Mineral Resources – Inferred – Contained Silver (Moz) 250 Sunshine 200 Montanore Chavin Hermosa 150 Malku Khota La Colorada Skarn Navidad Maronan 100 La Pitarrilla Panuco C
Slide 26: Cash proceeds totaled $988.4M, plus NSR royalties
26 // Cash proceeds totaled $988.4M, plus 4 NSR royalties (1) 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 NSR royalty(2) Sold 56.25% stake in the MARA project for $475M in c
Slide 27: Silver Proven & Probable Mineral Reserves
27 Silver Proven & Probable Silver Measured & Indicated 2023 Silver Production (Moz) Mineral Reserves (1) (Moz) Mineral Resources (1) (Moz) (2) (2) Pan American 486.8 Pan American 1,033.8 Fresnillo 56.3 Fresnillo 381.2 Fresnillo 723.7 Pan American 20.4 Coeur 243.9 Endeavour 529.9 Hecla 14.3 Hecla 23
Slide 28: Largest by market cap and most liquid silver producer
28 // Pan American is largest by market cap and most liquid of the following silver producers $120 $100 $80 Liquidity ($M)(1) $60 First Majestic Hecla $40 Coeur Fortuna $20 Silvercrest Endeavour Fresnillo MAG Hochschild Aya = Market Capitalization $0 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0
Slide 29: Share price demonstrated strong relationship to the silver price
29 // In 2023, Pan American’s share price demonstrated a strong relationship to the silver price Share Price Correlation to Silver Price (1) (%) 10-Year Total Shareholder Returns (2) Pan American 72% Aya 698% Endeavour 68% MAG 102% Fortuna 67% Pan American 65% Hecla 66% Hecla 62% First Majestic 62%
Slide 30: Growing industrial demand from decarbonization and electrification
30 // Growing industrial demand from global transition to decarbonization and electrification 2024E Silver Market Dynamics Electrical Applications Silver Demand (Moz) 486 445 351 371 Photography & Other 322 Recycling 2% 18% Investment(1) 17% Silver Silver 2020 2021 2022 2023 2024F Supply Demand 1.00
Slide 31: Vision to be the world's premier silver mining company
31 // 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) ➢ c
Slide 32: Investor Day
32 INVESTOR DAY 09.00 AM 9.10 AM 9.40 AM 11.30 AM 12.10 PM 12.40 PM WELCOME STRATEGIC OPERATIONS & ESG FINANCE LUNCH REMARKS OVERVIEW EXPLORATION 40 MINS 30 MINS 10 MINS 30 MINS 110 MINS Brent Bergeron, SVP Ignacio Couturier, Chief Discussion Siren Fisekci, VP Investor Michael Steinmann, Steve Busby
Slide 33: La Colorada Mine Overview
33 Opportunities MINE OVERVIEW Ag Pb Zn Restoring mine ventilation through new, 5.3 – 5.7 Moz 5.5 metre concrete-lined ventilation shaft 2024F Ag Production(1) and twin fan infrastructure (Backend Loaded) TYPE LOCATION OWNERSHIP Exploration to the east of NC2 and south ~1,620 tpd Underground Mine Za
Slide 34: Forecasting 2024 silver production of 5.3 – 5.7 Moz
37 // Forecasting 2024 silver production of 5.3 – 5.7 Moz at $21.00 – $ 24.00 AISC, $22.5 - $23.0M of sustaining capital, and $25.0 - $26.0M of project capital (1) Sublevel Stoping Cut & Fill Ore Pass Escape way Sill Ventilation Raise Ramp 0-603 E Ramp 0-603 E Sill 588 E Long Hole Lat. Cut & Fill La
Slide 35: La Colorada Sulfide Ore Processing Methods
Stockpile Bee, E = Va. _ Lead Flotation aaa 5 eS he eaeeiet —] sa fs Lt Crusher —~* in LA | - fy |. COLORADA tk te SULFIDE ORE ss | an | : | coe Zinc Flotation PROCESSING A dae « : METHODS =e ‘ee * we . f Tailings Storage n I tt Facility CEN » fl“. MB es DD Pass
Slide 36: Production and Grades, Throughput, AISC
39 Throughput Production and Grades 361 2,106 Ventilation Issues 308 312 316 318 1,769 1,756 1,685 8.2 277 1,568 1,517 306 769 5.9 1,562 5.2 5.7 5.0 COVID-19 641 Security Issues 4.4 573 615 5.3 559 537 570 (1) (1) 2019 2020 2021 2022 2023 2024F 2019 2020 2021 2022 2023 2024F (3) Throughput (ktpa) (2
Slide 37: $22.5 - $23.0M sustaining capital expected in 2024
40 // $22.5 - $23.0M sustaining capital expected in 2024 (1) S U S TA I N I N G P R O J E C T S MINE EXPLORATION EQUIPMENT TAILINGS DAM INFRASTRUCTURE EXPANSION Primarily focused on drilling Replacement of scoops, Expenditures related to new the new vein discoveries and mixers, and other mobile Incl
Slide 38: La Colorada Ventilation Flow (CFM)
41 La Colorada Ventilation Flow (CFM) 1,100,000 Booster 438W RB Estrella West Lvl. Dec 2020 Sep 2021 974,690 1,000,000 962,504 939,000 Rb II-345 Commissioning and 900,000 Booster 528 Lvl. Nov 2020 904,838 800,000 Booster 558 Lvl Aug 2020 Rehabilitation RB 724,000 RB La Libertad Sulfuros Fan Increase
Slide 39: La Colorada Skarn PEA Overview
42 Opportunities P E A O V E R V I E W (1) Ag Zn Pb Explore long-term partnerships with 17.2 Moz Ag parties interested in base metals 427 kt Zn exposure to develop the project TYPE LOCATION OWNERSHIP Annual Production(1) Underground Mine Zacatecas, Mexico 100% Potential for 17.2 Moz annual silver ex
Slide 40: Mining Method selection
44 • Mining Method selection - Geotechnical drilling and assessment - SRK workshop with focus on cavability and depth factors - Mine design and schedules – trade-off studies scenarios • Mine ventilation preliminary assessment • Mine Dewatering assessment • Tails storage options and conceptual design
Slide 41: Source: Jarek Jakubec 2021
45 Source: Jarek Jakubec 2021
Slide 42: 50 ktpd Processing facility
46 • 50 ktpd Processing facility (18.25 Mt per year) • Filtered tails storage facility • Operations center, workshops, offices and camp • Water storage and cooling dams to feed a treatment facility • Access road and upgraded power supply • Refrigeration plant (for chilled ventilation air intake) 500
Slide 43: Skarn Project Flowsheet
47 SKARN PROJECT FLOWSHEET Requirements • Skarn process facility • 89.1 MW connected load • 69 MW demand load • 33 kWh/t ore processed • Process water source • Mine dewatering • Reclaimed tails water • Overflow of Pb and Zn concentrate thickeners • Reagents • Lime • Zinc sulphate • Copper sulphates,
Slide 44: Project Initial and Sustaining Capital Expenditure, Operating Costs
48 Project Initial Capital Expenditure Sustaining Capital Expenditure(1) - LOM Operating Costs (2) - LOM Operating Costs Category Capex ($M) Category Capex ($M) $/t Processed ($M) Surface Infrastructure 202 Surface Infrastructure 120 Mining 9,202 32.32 Dewatering System on Surface 49 Staged Capacity
Slide 45: Based on 50,000 tpd Model
49 Based on 50,000 tpd Model Category Value Construction period ~6 years Production mine life 17 years Production rate 50 ktpd (or 18.25 Mtpa) Mineable inventory 284.7 million tonnes Average annual silver produced first 10 years 17.2 million ounces Average annual zinc produced first 10 years 427 tho
Slide 46: NPV sensitivity at 8% discount rate
50 NPV sensitivity at 8% discount rate ($M) NPV Ag Prices ($/oz) Zn Prices ($/t) 18.00 20.00 22.00 24.00 26.00 28.00 2,200 75 177 276 376 475 574 2,500 484 583 682 781 880 979 2,800 889 988 1,087 1,186 1,285 1,384 3,100 1,295 1,394 1,493 1,592 1,690 1,789 3,400 1,699 1,798 1,897 1,996 2,094 2,193 NP
Slide 47: La Colorada Skarn would rank 4th largest global silver mine
51 // Relative to 2023 mine performance, La Colorada Skarn would rank as the 4 th largest producing global silver mine(1)(2) Largest Mines by Total Silver Production in 2023 (1) (Moz) Estimated Mine Life(3) 2040 n.a. 2030 2033 2047 2035 2028 2027 2027 2039 41.1 Annual Production(1) (Moz) 21.2 19.0 1
Slide 48: La Colorada Skarn would rank 4th largest global zinc mine
52 // Relative to 2023 mine performance, La Colorada Skarn would also rank as the 4 th largest producing global zinc mine(1)(2) Largest Mines by Total Zinc Production in 2023 (1) (kt) Estimated Mine Life(3) 2031 2031 2036 2047 2044 2033 2040 2036 2030 2042 540 485 463 Annual Production(1) (kt) 427 2
Slide 49: Jacobina Mine Overview
53 Opportunities MINE OVERVIEW Au Mine optimization and mining method selection 185 – 203 koz 2024F Au Production(1) TYPE LOCATION OWNERSHIP Excellent exploration potential to extend down- dip and along strike of known conglomerate ~8,400 tpd Underground Mine Bahia, Brazil 100% reefs 2024F Plant Thr
Slide 50: Forecasting 2024 gold production of 185 – 203 koz
57 // Forecasting 2024 gold production of 185 – 203 koz at $1,250 - $1,350 AISC, $53.0 - $55.0M of sustaining capital, and $14.0 - $15.5M of project capital (1) Sublevel Open Stope Mining Method Processing Plant Flow Diagram Ventilation Raise Xcut Pump Station Escape Way Ramp Electrical Station Expl
Slide 51: Production and Grades, Throughput, AISC
58 Throughput Production and Grades 2.28 2.36 Phased expansion 2.26 to 8,400 tpd 8,432 8,600 2.10 2.09 2.09 8,289 6,646 7,281 2.01 6,178 186 195 196 8,200 178 203 3,078 3,210 160 3,025 185 2,658 2,255 2,426 2,920 (1) 2019 2020 2021 2022 2023 (1) 2024F (2) 2019 2020 2021 2022 2023 2024F (2) (3) Au Pr
Slide 52: $53.0 - $55.0M sustaining capital expected in 2024
59 // $53.0 - $55.0M sustaining capital expected in 2024 (1) S U S TA I N I N G P R O J E C T S CONNECTING EXPLORATION LEASE EQUIPMENT PLANT TAILINGS DAM MINES PAYMENTS UPGRADES EXPANSION The exploratory Mobile mine Developments to program to continue Primarily related to equipment end-of- Plant equ
Slide 53: $14.0 to $15.5M forecasted for growth projects
60 $14.0 - $15.5 2024F Sustaining Capital // $14.0 to $15.5M forecasted for growth projects to complete Phase 3 process plant expansion(1) STUDIES MINE OPTIMIZATION FILTRATION PLANT POWER SUBSTATION WATER TREATMENT Advance mine optimization study to maximize long-term Tailings Filter Plant Project I
Slide 54: Reduced seismicity, particularly in the deeper mining zones
61 • Q4 2023: Initial geotechnical studies suggests stope paste filling and revised mine scheduling could potentially enhance stability and address increasing seismicity being observed as the open stope mine deepens • Q1 2024: Conceptual Life-of-Mine designs and schedules were prepared incorporating
Slide 55: Pan American
PAN AMERICAN
Slide 56: Huaron Mine Overview
63 Opportunities MINE OVERVIEW Ag Zn Pb Cu 3.5 – 3.8 Moz Continue development and exploration of 2024F Ag Production(1) TYPE LOCATION OWNERSHIP the Horizonte zone Underground Mine Pasco, Peru 100% ~2,550 tpd Improve electricity efficiency and lower costs 2024F Plant Throughput(1) • Huaron is an unde
Slide 57: Forecasting 2024 silver production of 3.5 – 3.8 Moz
66 // Forecasting 2024 silver production of 3.5 – 3.8 Moz at $15.25 - $17.25 AISC, $17.5 - $18.5M of sustaining capital, and $30.0 - $31.0M of project capital (1) Sublevel Open Stope Mining Method Processing Plant Flow Diagram CRUSHED AREA GRINDING AREA MILL 12' X 16' MILL MILL 6.5'X14'' 8' X 8' FLO
Slide 58: Production and Grades, Throughput, AISC
67 Throughput Production and Grades 144 146 147 2,723 142 141 143 2,585 2,658 2,549 2,576 2,571 141 3.8 3.5 3.7 3.6 3.8 2.2 994 2,438 3.5 940 938 944 970 890 2.38 2.58 2.49 2.14 2.25 556 18.1 16.4 18.5 15.4 11.2 n.d. (1) (1) 2019 2020 2021 2022 2023 2024F 2019 2020 2021 2022 2023 2024F Zn Production
Slide 59: $17.5 - $18.5M sustaining capital expected in 2024
68 // $17.5 - $18.5M sustaining capital expected in 2024 (1) S U S TA I N I N G P R O J E C T S MINE DEVELOPMENTS EQUIPMENT EXPLORATION OTHERS Includes interconnecting Includes replacement of 3 20,000m of diamond drill Other sustaining capital developments to access the scoops and 2 jumbos which hol
Slide 60: El Peñon Mine Overview
69 Opportunities MINE OVERVIEW Au Ag District-scale potential resulting from continued 120 - 135 koz Au exploration of the rhyolitic level 3.6 – 3.9 Moz Ag TYPE LOCATION OWNERSHIP 2024F Production(1) Continue infill drilling to confirm reserve grades Underground Mine Antofagasta, Chile 100% ~3,650 t
Slide 61: Forecasting 2024 gold production of 120 – 135 koz Au
73 // Forecasting 2024 gold production of 120 – 135 koz Au and 3.6 – 3.9 Moz Ag at $1,200 - $1,300 AISC, and $30.0 to $32.0M of sustaining capital (1) Bench and Fill Method Processing Plant Flow Diagram 1. Please refer to the Company’s MD&A for the period ended December 31, 2023 for our 2024 Operati
Slide 62: Production and Grades, Throughput, AISC
74 Throughput Production and Grades 4.49 4.31 4.09 4.22 3,863 176 179 3,714 3,736 160 161 3,535 3,575 127 135 3,471 3.23 3,438 3.11 3.06 120 1,356 1,364 1,410 1,290 1,267 1,305 139 121 101 97 105 1,255 82 4.9 101 4.3 3.6 3.8 3.9 3.1 3.6 2019 2020 2021 2022 2023(1) 2024F (2) 2019 2020 2021 2022 2023
Slide 63: $30.0 - $32.0M sustaining capital expected in 2024
75 // $30.0 - $32.0M sustaining capital expected in 2024, with about half dedicated to exploration(1) S U S TA I N I N G P R O J E C T S MINE EQUIPMENT EXPLORATION UNDERGROUND OTHER DEVELOPMENTS Replacements of equipment. Targeted infill program of Largely corresponding to previously declared reserv
Slide 64: Shahuindo Mine Overview
76 Opportunities MINE OVERVIEW Au Ag 122 - 144 koz Expected leach recovery increase over LOM 2024F Au Production(1) TYPE LOCATION OWNERSHIP based on metallurgical testing Open-Pit Mine Cajamarca, Peru 100% ~33,840 tpd Completion of leach pads and waste 2024F Plant Throughput(1) dumps facilities by 2
Slide 65: Timmins Mine Overview
77 Opportunities MINE OVERVIEW Au New tailings facility and completion of 125 – 135 koz paste fill plant at Bell Creek 2024F Au Production(1) TYPE LOCATION OWNERSHIP Exploration and development Underground Mine Ontario, Canada 100% opportunities at Whitney and deep Bell ~4,240 tpd Creek 2024F Plant
Slide 66: San Vicente Mine Overview
78 Opportunities MINE OVERVIEW Ag Zn Pb Cu 2.9 – 3.1 Moz Maintain consistent steady-state 2024F Ag Production(1) TYPE LOCATION OWNERSHIP production Underground Mine Potosi, Bolivia 95% ~1,030 tpd Near mine exploration on the western 2024F Plant Throughput(1) portion of the Union Vein; veins and geop
Slide 67: Minera Florida Mine Overview
79 Opportunities MINE OVERVIEW Au Ag Zn Ongoing exploration of the core mine down dip and laterally. Continued near- 85 – 96 koz Au site exploration to the east and at depth 2024F Ag Production(1) TYPE LOCATION OWNERSHIP where the veins are under-explored Underground Mine Metropolitan Region, Chile
Slide 68: Cerro Moro Mine Overview
80 MINE OVERVIEW Opportunities Ag Au Gold production is expected to increase in 3.2 – 3.5 Moz Ag Q4 2024 with the mining of the high grade 93 – 115 koz Au Naty Zone 2024F Production(1) TYPE LOCATION OWNERSHIP Possible reduction in costs will allow us to Open-Pit & Santa Cruz, Argentina 100% convert
Slide 69: Dolores Mine Overview
81 MINE OVERVIEW Au Ag 65 – 75 koz Au 1.9 – 2.2 Moz Ag TYPE LOCATION OWNERSHIP 2024F Production(1) Open-Pit Mine Chihuahua, Mexico 100% Production & Cost History $1,275 – $1,375 2024F Au AISC(1,2) $2,065 • Dolores is an open-pit mine that produces gold and silver dore using a novel pulp agglomeratio
Slide 70: Investor Day
82 INVESTOR DAY 09.00 AM 9.10 AM 9.40 AM 11.30 AM 12.10 PM 12.40 PM WELCOME STRATEGIC OPERATIONS & ESG FINANCE LUNCH REMARKS OVERVIEW EXPLORATION 40 MINS 30 MINS 10 MINS 30 MINS 110 MINS Brent Bergeron, SVP Ignacio Couturier, Chief Discussion Siren Fisekci, VP Investor Michael Steinmann, Steve Busby
Slide 71: 2023 Sustainability Highlights
2023 SUSTAINABILITY HIGHLIGHTS ZERO fatalities | significant new social environmental | disputes incidents, REDUCED OVER 170,700 we in Water Use compared to 2023 base case! LTIF:" 0.69 LTIS:" 40 23‘ reduction in GHG Emissions compared to the 2023 base case” REHABILITATED OVER 89 HECTARES ‘across our
Slide 72: Senior Management's Compensation linked to ESG Performance
84 // Structure and Accountability Senior Management’s Compensation linked to ESG Performance • The Communities and Sustainable Development Committee reviews and provides oversight of the Company’s sustainability performance and management of sustainability impacts • The Health, Safety and Environme
Slide 73: Management framework
85 // Management framework • Environmental incidents • Water use • Energy use • GHG emissions • Biodiversity conservation • Waste management • Health and safety • Social risk management • Community grievance and request management • Community investment • ESG Audits • TSM Performance
Slide 74: ESG Ratings and Rankings
86 86 ESG Ratings and Rankings Reporting Frameworks and Standards Memberships and Associations $750 MILLION REVOLVING CREDIT FACILITY LINKED TO THIRD -PARTY ESG RATINGS (S&P GLOBAL AND MSCI) As of May 23, 2024
Slide 75: Shift towards Double Materiality
87 // Shift towards Double Materiality Communities of Interest annual survey to assess the significance of the Company’s impacts on the economy, environment, social, and people, including their human rights. Pan American Silver Management survey to assess the level of risk and opportunity each of th
Slide 76: Re-affirming 30% reduction in GHG emissions by 2030
88 Re-affirming 30% reduction in GHG emissions by 2030 and an aspirational objective of net zero by 2050 // Climate Change Strategy • Integrating carbon dioxide equivalent (“CO2Eq”) emission reduction strategies into our operational risk and opportunities assessments and strategic planning • Plannin
Slide 77: Tailings Management Approach
89 // Management Approach Tailings Storage Facilities # Facility Name Location Operational Status Construction Method(1) • Real-time data monitoring system 1 Timmins (Bell Creek) Canada Operational Downstream/Centerline 2 La Colorada (Dam #6) Mexico Operational Downstream/Modified • On-site designat
Slide 78: 24/7 real time video and remote Geotechnical Monitoring Center
90 , BRAZIL , PERU • 24/7 real time video and remote in Geotechnical Monitoring Center, • The current tailings facility will reach ultimate capacity in 2025 and including manual and automated instruments is continually maintained and supervised. Inspections are supplemented with monitoring instrumen
Slide 79: Programs & Initiatives, Economic Value Distributed
91 91 // Programs and Initiatives Economic Value Distributed (January 1, 2023 to December 31, 2023) • Socio-Economic Development • Local economic development projects • Health programs • Education programs • Investments in community services • Local employment and procurement
Slide 80: Sustainability Considerations in Risk Management and Capital Allocation
92 // Sustainability Considerations in Risk Management and Capital Allocation SHAHUINDO WATER TREATMENT PLANT LA COLORADA RELOCATION PROCESS (1) MANANTIAL ESPEJO SOCIAL CLOSURE HUARON FILTERED TAILINGS PLANT 1. Pan American has entered into an agreement to sell its interest in La Arena S.A., which o
Slide 81: Investor Day
93 INVESTOR DAY 09.00 AM 9.10 AM 9.40 AM 11.30 AM 12.10 PM 12.40 PM WELCOME STRATEGIC OPERATIONS & ESG FINANCE LUNCH REMARKS OVERVIEW EXPLORATION 40 MINS 30 MINS 10 MINS 30 MINS 110 MINS Brent Bergeron, SVP Ignacio Couturier, Chief Discussion Siren Fisekci, VP Investor Michael Steinmann, Steve Busby
Slide 82: Strategic financial management across the mine lifecycle
94 // Strategic financial management across the mine lifecycle • Long-term Total Gross Leverage(1) target of below 1.0x Target Leverage • Company has demonstrated a disciplined approach to returning below this target, reducing debt following completions of the Tahoe and Yamana acquisitions. • At Mar
Slide 83: Total Available Liquidity $1,081M
95 Cash + short-term Revolving investments Credit TOTAL AVAILABLE $331M Cash + short-term investments of $331M Facility LIQUIDITY $750M Total debt(2) of $806.6M related to senior notes and $1,081M 3 construction loans & leases Sustainability-Linked Revolving Credit Facility aligns Pan American’s ESG
Slide 84: Q1 2024 Interest Expense & Cash Flow
96 Q1 2024 Interest Expense & Cash Flow ($M) Timing of Senior Note Maturity ($M) $500 $20.4 • No near-term maturities. $283 • Attractive coupons at 2.63% Reclamation Accretion for $500M bond and 4.625% Expense coupon $283M bond. $7.9 >50% is non-cash 2024 2025 2026 2027 2028 2029 2030 2031 Interest
Slide 85: Maintain balance sheet flexibility with low leverage
97 // Maintain balance sheet flexibility with low leverage (1) Deleveraging post Gross Leverage(1) $800 2.00 Adjusted EBITDA ($M)(1) Yamana Acquisition 1.72 1.80 $700 1.60 $600 Tahoe Acquisition 1.40 1.20 $500 1.20 $400 1.00 0.80 $300 0.57 0.56 0.60 $200 0.40 $100 0.06 0.08 0.20 0.03 $- - 2018 2019
Slide 86: Significant de-leveraging already accomplished
98 Outstanding Debt ($M) $1,295 Gross Cash and Debt(1) Cash Significant de-leveraging already Equivalents 30% decrease accomplished, reducing gross debt and improving cash position $903 $903 Net leverage(1) already well below 45% decrease 1.0x at 0.67x Net Debt(1) $1,088 Net leverage(1) is expected
Slide 87: Capital Allocation since 2010
99 15% Pan American adheres to the following priorities for deployment of free cash flow: 29% Capital Allocation since 2010 (1) 1 Maintain balance sheet flexibility, with low debt Dividends Share buy-backs 2 Invest in high-return projects Expansion Capital & Acquisition Costs 7% Net Debt Repayment 3
Slide 88: Silver production anticipated to increase towards second half of 2024
100 • Silver production is anticipated to increase towards the second half of 2024 largely as a result of increased production from La Colorada as the fan installation is expected to be completed in mid-2024 allowing for better ventilation at the mine, and an increase in silver grades due to improve
Slide 89: Operating cash flows used to fund growth and shareholder returns
101 101 // Operating cash flows used to fund growth initiatives and shareholder returns Sustaining Cash Flow Performance Growth, Business Development, and Other $700 $183 ($72) $600 ($66) $500 ($41) $441 ($37) ($5) $403 ($31) $400 ($22) ($11) ($8) $M $331 $300 $200 $100 $0 Cash and STI at Adjusted N
Slide 90: ~$150M annual cost savings through synergies
102 // Pan American estimates ~$150M annually of cost savings through synergies and reduced expenses with the successful integration of Yamana’s four operating mines G&A ($M) Implied Synergies = $61M Additional $90 million in annual cash savings following $6 $61 $94 $127 dispositions and debt repaym
Slide 91: Dividend Policy and Share Buyback
103 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 basi
Slide 92: Returned $854M to shareholders since 2010
104 // Returned $854M to shareholders (1) since 2010 while investing in projects & maintaining a healthy balance sheet Total Dividends and Share Buybacks ($M) $140 Dividends Share buybacks $120 $100 $80 $7 $60 $130 $94 $40 $42 $95 $76 $76 $72 $20 $42 $46 $25 $21 $29 $8 $11 $8 $15 $0 2010 2011 2012 2
Slide 93: Company does not hedge silver or gold price
105 // The company does not hedge the price of silver or gold related to future production; we strive to provide maximum exposure to precious metals for our shareholders • The Company does hedge for exposure to base metals, local currency and diesel, opportunistically when levels are favorable in re
Slide 94: Rated by S&P and Moody's at BBB- and Baa3
106 Rated by S&P and Moody’s at BBB- and Baa3 Large scale providing optionality within the portfolio Diversified asset base in established mining jurisdictions with 11 operations in the Americas Maintains attractive liquidity profile, prudent balance sheet and financial policies Strong board, manage
Slide 95: Vision to be the world's premier silver mining company
107 // Pan American’s vision is to be the world’s premier silver mining company, with a reputation for excellence in discovery, engineering, innovation and sustainable development Focus on the safe, efficient and environmentally sound operation of our mines ➢ achieve our 2024 Operating Outlook(1) ➢
Slide 96: The "go-to" name for investing in silver
108 108 Experienced management team working in the Americas and focused on executing clearly-defined strategic priorities The “go-to” name for investing in silver with large Mineral Reserves & Resources Catalysts for material silver production growth: La Colorada Skarn & Escobal Strong financial pos
Slide 97: Appendix
APPENDIX Was PAAS
Slide 98: La Colorada ventilation infrastructure diagram
110 San Fermín Ramp Beatty Shaft La Libertad Rb. San Fermín (160KCFM) Exhaust Rb 315 (Rb. Sulfuros Op 2) (Rb. Sulfuros Op 1) El Aguila Shaft Rb Gemelo Sulfuros Guadalupe (175KCFM) (Rb. Sulfuros) Shaft (610KCFM) (Rb. San Gerónimo) (Rb. 1-V3) (Rb. 2-V3) Exhaust Shaft (Pull Fan On) Intake Shaft (No Fan
Slide 99: Adjusted EBITDA ($M)
111 Adjusted EBITDA ($M) 2016 2017 2018 2019 2020 2021 2022 2023 Net Earnings 101.8 123.5 12.0 111.2 176.5 98.6 (340.1) (104.9) Income tax expense 74.4 59.0 21.1 71.3 75.6 146.4 39.1 46.1 Interest and finance expenses 9.6 7.2 8.1 29.3 20.1 16.2 22.5 91.4 Depreciation and amortization 116.0 122.9 147
Slide 100: Mineral Reserves as of June 30, 2023
112 As of June 30, 2023 1. See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2023". 2. Tables have been updated to reflect the sales of MARA (completed on Sept. 20, 2023), Morococha (completed on Sept. 22, 2023) and Jeronimo (com
Slide 101: Mineral Resources as of June 30, 2023
113 As of June 30, 2023 1. See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2023". 2. Mineral resources are reported exclusive of mineral reserves. 3. Tables have been updated to reflect the sales of MARA (completed on Sept. 20,
Slide 102: Mineral Resources as of June 30, 2023
114 As of June 30, 2023 1. See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2023". 2. Mineral resources are reported exclusive of mineral reserves. 3. Tables have been updated to reflect the sales of MARA (completed on Sept. 20,
Slide 103: Mineral Resources as of June 30, 2023
115 As of June 30, 2023 1. See table below entitled "Metal price assumptions used to estimate mineral reserves and mineral resources as at June 30, 2023". 2. Mineral resources are reported exclusive of mineral reserves. 3. Tables have been updated to reflect the sales of MARA (completed on Sept. 20,
Slide 104: Inferred Resources and metal price assumptions
METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES AND RESOURCES As of June 30, 2023 Tonnes Ag Contained + Au_—_Contained Property Location Classification (Mt)__(g/t)__Ag(Moz) (g/t) Au(koz)Cu(%) —Pb(%)__Zn(%) Silver Segment Huaron Peru Inferred 59 164 312 035 176 2.87 La Colorada Mexico Infer
Slide 105: Notes on mineral reserves and resources
117 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
Slide 106: Contact details
118 +1.604.684.1175 ir@panamericansilver.com www.PanAmericanSilver.com 733 Seymour St, 21st Floor Vancouver, BC, V6B 5J3