Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Shareholder Meeting (May 2021)
20 slides from Pan American Silver's shareholder meeting presentation, May 2021
Slide 1: Investor Presentation May 2021
INVESTOR PRESENTATION // MAY 2021
Slide 2: Cautionary Note Regarding Forward-Looking Statements and Non-GAAP Measures
2 silver and gold segments for the purposes of our financial reporting, as These forward-looking statements and information reflect Pan American’s described in the Company’s MD&A for the period ended December 31, current views with respect to future events and are necessarily based upon a 2020. All
Slide 3: Cautionary Note (continued)
3 CONTINUED does not assume any obligation, to update or revise forward-looking Canadian public disclosure standards, including NI 43-101, differ significantly statements or information to reflect changes in assumptions or in from the requirements of the United States Securities and Exchange Company
Slide 4: Diversified asset portfolio with 9 operations in the Americas
Corporate Office 4 Timmins Dolores Skarn Deposit La Colorada NASDAQ: PAAS // TSX: PAAS Escobal (The Escobal mine is Diversified asset portfolio with 9 operations in the Americas currently not operating) Revenues from Peru (42%), Mexico (28%), Canada (20%), Argentina (6%) & Bolivia (4%) in 2020 Shahu
Slide 5: Shareholders, Communities, Employees
5 Shareholders // Communities // Employees Industry leader in high margin / low cost production Generated ~$1.5B in free cash flow since 20101 Strong financial position and capital discipline Credit Facility fully repaid. $206.4 million in cash and short-term investments 27 year track record of resp
Slide 6: Environmental Social Governance
6 ENVIRONMENTAL • No significant environmental incidents at our operations • Site-specific projects to reduce energy use, emissions and water intensity • Independent dam safety reviews completed at all sites • Implementing the TSM Tailings, Water Stewardship and Biodiversity Protocols SOCIAL • US$2
Slide 7: View our 2020 Sustainability Report online
7 // View our 2020 Sustainability Report online Reporting ESG performance since 2010 under the Global Reporting Initiative (GRI) standard Member of UN Global Compact and reporting on UN Sustainable Development Goals Aligning disclosure with TCFD and SASB Implementing Mining Association of Canada’s T
Slide 8: 2020 in review
8 // 2020 in review • Navigated impact of COVID-19, implementing measures to protect health and safety and to support workforce and communities • Generated record operating cash flow of $462.3 M • Fully repaid the revolving credit facility and increased cash and short- term investment balances to $2
Slide 9: Generated record operating cash flow of $462.3M in 2020
9 (“OCF”) Operating Cash Flow ("CFFO") Free Cash Flow ("FCF") CFFO OCF per share FCF per share $500 $462 $2.50 Generated record US$ Millions US$ per Share $400 operating cash flow of $2.00 $462.3M in 2020 $323 $300 $282 $1.50 $175 $200 $1.00 $155 $65 $100 $0.50 $0 $0.00 2018 2019 2020 1. Free Cash F
Slide 10: FCF Allocation
10 9%Share 24% Repurchases Dividends // $1.5B in FCF generated since 2010, returning $514 M to shareholders 3 and investing $598 M in expansions FCF 28% ALLOCATION Debt Repayment 2010-2020 Cash Flow Priorities 1 Maintain balance sheet flexibility, with low to zero debt 39% Expansion 2 Invest in high
Slide 11: Highlights of 2020 silver market
11 // 2020 actuals; in million ounces Highlights of 2020 silver market • Silver investment rose, as investors gravitated to safe-haven investments. Mine production 784.4 Recycling 182.1 • Global holdings of silver-backed exchange-traded products (ETP) rose to a record 1.1 billion ounces Other 9.7 •
Slide 12: Growing industrial demand from decarbonization and electrification
12 // 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. • ~10% of silver supply used for photovoltaics (solar pane
Slide 13: PAAS Snapshot and Investment Highlights
13 // PAAS SNAPSHOT 1 // INVESTMENT HIGHLIGHTS ~$7.3 B $0.07 MARKET CAP QUARTERLY DIVIDEND2 Long-life silver reserves 210.3 M 0.8% SHARES OUTSTANDING DIVIDEND YIELD Major catalysts for silver growth 3.5 M 9 3-MONTH DAILY SELL SIDE Experienced management team AVERAGE ANALYSTS Strong financial positio
Slide 14: Investor Relations contact
14 Siren Fisekci VP, INVESTOR RELATIONS & CORPORATE COMMUNICATIONS +1.604.806.3191 ir@panamericansilver.com PanAmericanSilver.com Suite 1440, 625 Howe Street Vancouver, BC, V6C 2T6
Slide 15: Appendix
PAN AMERICAN APPENDIX
Slide 16: Mineral Reserves by property
16 Property Location Classification Tonnes Ag Contained Ag Au Contained Cu Contained Cu Pb Contained Pb Zn Contained Zn (Mt) (g/t) (Moz) (g/t) Au (koz) (%) (kt) (%) (kt) (%) (kt) Silver Segment Huaron Peru Proven 6.9 164 36.3 - - 0.77 53.0 1.44 99.4 3.03 209.1 Probable 3.6 169 19.8 - - 0.31 11.3 1.6
Slide 17: Measured and Indicated Mineral Resources
17 Property Location Classification Tonnes (Mt) Ag (g/t) Contained Ag (Moz) Au (g/t) Contained Au (koz) Cu (%) Pb (%) Zn (%) Silver Segment Huaron Peru Measured 1.8 161 9.5 - - 0.18 1.65 3.02 Indicated 2.4 155 11.8 - - 0.61 1.64 2.85 Morococha (92.3%) (3) Peru Measured 0.8 135 3.4 - - 0.70 0.91 2.89
Slide 18: Inferred Mineral Resources
18 Property Location Classification Tonnes (Mt) Ag (g/t) Contained Ag (Moz) Au (g/t) Contained Au Cu (%) Pb (%) Zn (%) (koz) Silver Segment Huaron Peru Inferred 5.8 157 29.0 0.45 1.55 2.83 Morococha (92.3%) (3) Peru Inferred 4.4 157 22.4 0.35 1.05 3.38 La Colorada Mexico Inferred 6.2 232 46.2 0.13 2
Slide 19: Metal price assumptions as at June 30, 2020
19 Mine Category Ag US$/oz Au US$/oz Cu US$/t Pb US$/t Zn US$/t Huaron All categories 18.00 1,300 6,000 2,000 2,350 Morococha All categories 18.00 1,300 6,000 2,000 2,350 La Colorada All categories 18.00 1,300 6,000 2,000 2,350 La Colorada skarn All categories 18.50 6,500 2,200 2,600 Reserves 18.00
Slide 20: Mineral reserves and resources definitions
20 Mineral reserves and resources are as defined by the Canadian Institute of Mining, Metallurgy and Petroleum. Pan American reports mineral resources and mineral reserves separately. Reported mineral resources do not include amounts identified as mineral reserves. Mineral resources that are not min