Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Investor Presentation (October 2023)
47 slides from Pan American Silver's investor presentation, October 2023
Slide 1: Investor Presentation October 2023
INVESTOR PRESENTATION // FEBRUARY 2023 I N V E S T O R P R E S E N TAT I O N // OCTOBER 2023
Slide 2: Cautionary note and non-GAAP measures
2 expenditures in 2023; future anticipated prices for gold, silver and other metals in prices for energy inputs, labour, materials, supplies and services (including and assumed foreign exchange rates; estimated global silver inventories; transportation); fluctuations in currency markets (such as the
Slide 3: Cautionary note continued
3 CONTINUED the United States (the “U.S. Rules”) are governed by subpart 1300 of Regulation S-K of the U.S. Securities Act of 1933, as amended (the “U.S. NOT AN OFFER OR A SOLICITATION Securities Act”) which differ from the CIM Standards. As a foreign private issuer that is eligible to file reports
Slide 4: Pan American's portfolio in the Americas
CANADA 4 Head Office Timmins Dolores La Colorada Skarn Deposit // The acquisition of Yamana Gold Inc. enhanced the scale and quality of MEXICO GUATEMALA Pan American’s portfolio in the Americas, where we have been operating for nearly 3 decades Escobal (C&M) • 4 producing mines: Jacobina, El Peñon,
Slide 5: Annual post-tax synergies of $40-$60 million
5 // Annual post-tax synergies of $40-$60 million Established presence and expertise in Latin America will enable Pan American to leverage operational efficiencies and the growth potential of the acquired Yamana assets in the region Synergies driven by streamlining corporate costs, cross- pollinatio
Slide 6: Sales of non-core assets focus portfolio
6 // Sales of non-core assets focuses portfolio, improves the balance sheet and retains future upside MARA MOROCOCHA AGUA DE LA FALDA NON- CONTROLLING EQUITY INTERESTS 56.25% stake for: 92.3% interest for: 57.74% interest for: $47.1M in proceeds $475M in cash $25M in cash $45.55M in cash 0.75% coppe
Slide 7: Production and costs in line with annual guidance
7 // Q2 production and costs in line with annual guidance (9-months for Yamana acquired mines) Ag Au Sustaining capital of $305 - $320 million Project capital 21.0 – 23.0 Moz 870 – 970 Koz of $95 - $105 million ANNUAL CONSOLIDATED ANNUAL CONSOLIDATED PRODUCTION PRODUCTION Reclamation expenditures of
Slide 8: Significant increase in reserves and resources
8 // Significant increase in reserves and resources with addition of assets from the Yamana transaction 576.6 Mozs of silver Measured & indicated Inferred mineral mineral reserves and mineral resources, exclusive resources of 479.4 12.9 Mozs of gold of mineral reserves, of 959.1 million ounces for m
Slide 9: Total cash and available credit
9 //As at June 30, 2023, excluding cash proceeds $470.0M $409.2M from non-core asset sales Revolving TOTAL CASH AND Cash + Credit Facility AVAILABLE investments CREDIT Balance sheet management $879.2M(3) Total debt(2) of $1,135.3M related to senior notes ($783M), the SL-Credit Facility ($280M), and
Slide 10: La Colorada Skarn: large polymetallic deposit
10 10 ZACATECAS, MEXICO // 100% owned, large, polymetallic deposit with potential for decades of production • Completed over 254,000 metres of drilling; higher-grade mineralised zones continue to be encountered in the drill program • Skarn footprint of 1,500 metres x 1,100 metres, open in all direct
Slide 11: La Colorada ventilation shaft
11 The fully concrete-lined 5.5-metre diameter ventilation shaft is expected to be completed in 2023 at a cost of Ventilation fans to be ~$47 million. installed on shaft in 2024, reducing power The shaft is strategically requirements upon located to exhaust hot, commissioning moist air directly from
Slide 12: La Colorada Skarn mineral resource estimate
12 ZACATECAS, MEXICO Mining Cut-off Resource Tonnes Zn Pb Ag Zn Pb Ag Method Value Classification (millions) (%) (%) (g/t) (Mt) (Mt) (Moz) (US$/tonne) Indicated 95.9 2.77 1.28 31 2.66 1.23 94.4 Sub-level 45 Caving (SLC) Inferred 147.8 2.29 1.04 28 3.39 1.54 132.9 Notes: 5. Reasonable prospects for e
Slide 13: Polymetallic skarn mineralisation in 3 zones
13 // polymetallic skarn mineralisation is concentrated in 3 zones, covering an area of 1,500 metres by 1,100 metres laterally, and a depth of between 600 metres and 1,900 metres below surface
Slide 14: One of the world's best silver mines: Escobal
14 SANTA ROSA, GUATEMALA MEXICO GUATEMALA // One of the world’s best silver mines Escobal • High-quality, well-built operation with over US$500 million 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 A
Slide 15: Escobal license suspended pending ILO 169 consultation
15 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 16: The go-to name for investing in silver
16 Large silver reserves(1) Proven and probable mineral reserves of 576.6 Mozs plus measured and indicated mineral resources of 959.1 Mozs, as of June 30, 2023 Escobal mine has potential to add ~20 Moz of silver production annually following restart of operations The mine is currently on care and ma
Slide 17: Silver supply and demand
17 // 2022 actual(1); in million ounces Photography & Other Mine 3% Recycling Production Industrial Investment2 18% 82% 45% 27% Silver Silver Supply Demand 1,005 1,242 Jewelry & Silverware 1. Source: Silver Institute, April 2023. 25% 2. Net physical investment in coins and bars. ~ 142 Moz supply sho
Slide 18: Silver demand for solar installations
18 // Silver demand for solar installations has grown, representing 140 Moz, or ~11% of total demand, in 2022 while thrifting has plateaued Index (2010=100) Moz 120 160 140 100 120 80 100 60 80 60 40 40 20 20 0 0 2010 2012 2014 2016 2018 2020 2022 Index is based on silver loadings per cell. Fabricat
Slide 19: Growing industrial demand from decarbonization and electrification
19 // 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 20: ESG ratings and commitments
20 REPORTING FRAMEWORKS & STANDARDS 68 BBB rating Ranked top 7% in the Metals & Ranked in the top 45th Mining industry percentile Scale: 0 (worst) to 100 (best). Scale: CCC (worst) to AAA (best). MEMBERSHIPS & COMMITMENTS 27.9 (medium risk) C+ rating #8 out of 29 companies in Precious Upgraded from
Slide 21: PAAS snapshot
21 // PAAS SNAPSHOT 1 $5.1B $0.10 MARKET CAP QUARTERLY DIVIDEND2 364.4M 2.9% Long-life silver reserves SHARES OUTSTANDING DIVIDEND YIELD Medium and long-term growth projects $74M 9 AVERAGE DAILY SELL SIDE T R A D I N G V A L U E (3) ANALYSTS Committed to best-in-class ESG performance MEMBER OF THE M
Slide 22: Appendix
PAN AMERICAN APPENDIX
Slide 23: Low-cost debt acquired from Yamana
23 $500 million // Low-cost debt acquired as part of the Yamana transaction 2.63% coupon August 2031 S&P long-term issuer rating of BBB- $283 million 4.625% coupon Moody’s rating of Baa3 December 2027 Attractive coupon rates Staggered maturity dates Redeemable at Company’s option 2023 2024 2025 2026
Slide 24: 2023 guidance by mine
24 Silver Production Gold Production Cash Costs AISC (million ounces) (thousand ounces) ($ per ounce)(1) ($ per ounce) (1) Silver Segment: La Colorada (Mexico) 5.5 – 5.9 3 14.00 – 15.50 17.00 – 18.50 Cerro Moro (Argentina)(2) 3.6 – 3.9 77 – 85 5.50 – 8.80 11.00 – 14.50 Huaron (Peru) 3.6 – 3.8 – 5.80
Slide 25: 2023 capital expenditure guidance
25 Expenditures ($ millions) Sustaining Capital Project capital invested to advance La Colorada (Mexico) 15.0 – 16.0 strategic goals: Cerro Moro (Argentina) 20.0 – 21.0 Huaron (Peru) 17.0 – 18.0 • Continued exploration and in- San Vicente (Bolivia)(1) 3.5 – 4.5 fill drilling on the La Colorada Jacob
Slide 26: Quarterly and FY 2023 guidance
26 FY 2023 Q1 Actual Q2 Actual Q2 Guidance Q3 Guidance(1) Q4 Guidance(1) Guidance(1) Silver Production (million ounces) 3.89 6.02 5.40 - 6.00 5.70 - 6.40 6.00 - 6.70 21.00 - 23.00 Gold Production (thousand ounces) 122.7 248.2 225.0 - 255.0 248.0 - 283.0 274.0 - 309.0 870.0 - 970.0 Silver Segment Cas
Slide 27: ESG structure and accountability
27 // 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 28: Timmins: two producing mines
28 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 29: Dolores: large gold/silver mine
29 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 30: La Colorada: largest silver producing mine
30 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 31: Shahuindo: large gold mine
31 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 32: La Arena: gold mine with sulphide expansion potential
32 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 33: Huaron: polymetallic silver mine
33 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 3.7 Grade Contained Metal
Slide 34: Jacobina: large gold mine
34 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 • Average throughput of ~8,289 tpd during 2022 with the phased expansion to 8,500 tpd completed mid-2022 Gold Producti
Slide 35: San Vicente: polymetallic silver mine
35 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 36: El Peñon: large gold/silver mine
36 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 • Average throughput of ~3,714 tpd in 2022 Silver & Gold Product
Slide 37: Minera Florida: polymetallic gold mine
37 METROPOLITAN REGION, CHILE Minera Florida // Polymetallic gold mine • 100% owned and operated underground mine producing gold and silver doré bars and zinc concentrate • Average throughput of ~2,649 tpd during 2022 Gold Production (koz)(1) Mineral Reserves & Resources 90 85 82 Grade Contained Met
Slide 38: Cerro Moro: integrated gold and silver complex
38 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 • Average throughput of ~1,074 tpd in 2022 Silver & Gold Production (1) Mineral R
Slide 39: La Arena II: undeveloped copper porphyry
39 LA LIBERTAD, PERU La Arena II // 100% owned, undeveloped copper porphyry Mineral Resources 2 (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 40: Navidad: undeveloped primary silver deposit
40 40 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 41: Mineral resource estimate at different cut-off values
41 ZACATECAS, MEXICO ZACATECAS, MEXICO // Mineral Resource Estimate at Different Cut-off Values and Mining Methods 1. Prices used to report mineral resources were: US$22 Mining Cut-off Classification Tonnes Zn Pb Ag Zn Pb Ag per ounce of silver, US$2,800 per tonne of zinc and US$2,200 per tonne of l
Slide 42: Mineral reserves as of June 30, 2023
42 As of June 30, 2023 (1) Tonnes Ag Contained Au Contained Cu Contained Contained Contained (1) See table below entitled Property Location Classification Pb (%) Zn (%) (Mt) (g/t) Ag (Moz) (g/t) Au (Koz) (%) Cu (Kt) Pb (Kt) Zn (Kt) "Metal price assumptions used Silver Segment to estimate mineral res
Slide 43: Measured and indicated resources as of June 30, 2023
Contained Au Property Location Classification Tonnes (Mt) Ag (g/t) Contained Ag (Moz) Au (g/t) Cu (%) Pb (%) Zn (%) (Koz) Silver Segment Huaron Peru Measured 1.4 180 8.2 - - 0.30 1.95 3.15 Indicated 1.8 173 10.2 - - 0.30 1.86 3.06 La Colorada Mexico Measured 0.7 153 3.6 0.13 3.0 - 0.64 1.18 Indicate
Slide 44: Inferred resources as of June 30, 2023
44 as of June 30, 2023 (1,2) Au Contained Au Property Location Classification Tonnes (Mt) Ag (g/t) Contained Ag (Moz) Cu (%) Pb (%) Zn (%) (g/t) (koz) (1) See table below entitled Silver Segment "Metal price assumptions used to Huaron Peru Inferred 5.9 164 31.2 - - 0.35 1.76 2.87 La Colorada Mexico
Slide 45: Metal price assumptions for reserves and resources
45 Mine Category Ag US$/oz Au US$/oz Cu US$/t Pb US$/t Zn US$/t Huaron All categories 19.00 1,300 7,000 2,000 2,600 Morococha All categories 19.00 1,300 7,000 2,000 2,600 La Colorada All categories 19.00 1,300 7,000 2,000 2,600 La Colorada Skarn Resource 22.00 2,200 2,800 Reserves 19.00 1,600 Dolore
Slide 46: Technical notes on mineral reserves and resources
46 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 47: Investor relations contact
47 Siren Fisekci VP, INVESTOR RELATIONS & CORPORATE COMMUNICATIONS +1.604.806.3191 | ir@panamericansilver.com panamericansilver.com Suite 1440, 625 Howe Street Vancouver, BC, V6C 2T6
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