Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Investor Presentation (December 2024)
50 slides from Pan American Silver's investor presentation, December 2024
Slide 1: Presentation December 2024
P R E S E N TAT I O N // DECEMBER 2024
Slide 2: Cautionary note and non-GAAP measures
2 Escobal; future anticipated prices for gold, silver and other metals and assumed hazards inherent with the business of mining (including environmental accidents foreign exchange rates; the expected sale of the La Arena gold mine and La Arena II and hazards, industrial accidents, equipment breakdow
Slide 3: Cautionary note continued
3 C O N T IN UED amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of “inferred NOT AN OFFER OR A SOLICITATION resources” exist, are economically or legally mineable or will ever be upgraded to a hi
Slide 4: Portfolio offers scale and quality in the Americas
CANADA 4 Head Office Timmins Dolores La Colorada // Pan American’s portfolio offers scale & quality in the Americas, Skarn Deposit MEXICO where we have been operating for 30 years GUATEMALA Escobal (C&M) • 11 producing silver and gold mines1 3% • Jacobina upside via mine optimization 8% 26% • 2 cata
Slide 5: Record Financial Results
5 // Record Financial Results Record cash flow from operations1 of Maintaining 2024 Operating Outlook3 $235.8M and record free cash flow2 of $151.5M Adjusted earnings of $115.1M, or Production of 5.5 million ounces silver $0.32 per share2 and 225 thousand ounces gold Strong financial position with $
Slide 6: Cash flow performance
6 6 Sustaining Cash Flow Performance Growth, Business Development, and Other $700 $269 $600 ($75) $500 ($36) $491 $470 ($26) ($10) ($13) ($7) $400 $369 Millions $300 $200 $100 $0 Cash and STI at June 30, Adjusted operating cash Sustaining capital and Dividends paid Net income tax Net changes in work
Slide 7: An investment grade name
7 // An investment grade name Cash + Revolving short-term Credit investments Facility TOTAL AVAILABLE $470M $750M LIQUIDITY Cash + short-term investments of $470M $1,220M3 Total debt2 of $815M primarily related to senior notes: $283M with 4.625% coupon maturing in December 2027 $500M with 2.63% coup
Slide 8: Priorities for deployment of free cash flow
8 // Pan American adheres to the following priorities for deployment of free cash flow 1 Maintain balance sheet flexibility, with low debt ➢ Long-term Total Gross Leverage1 target of below 1.0x ➢ Company has demonstrated a disciplined approach to returning below this target, reducing debt following
Slide 9: Successful integration of new operating assets
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 Optionality1 Total Consideration2 Annual Synergies3 Timmins & Bell Creek Escobal Jacobina 565 koz 9.2 Moz $2.8B
Slide 10: Cash proceeds from asset sales plus NSR royalties
10 // Cash proceeds totaling $988.4M, plus 4 NSR royalties1 Entered into 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 royalty1 Sold 56.25% stake in the MARA project for $475M in cash and
Slide 11: Safety programs and initiatives
11 // 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
Slide 12: Improved mine ventilation at La Colorada
12 // Significant improvement in mine ventilation conditions following on-schedule completion of new infrastructure in July 2024 Two 2,000 horsepower ventilation fans installed at the surface of the Guadalupe shaft – a 5.5 metre by 580 metre deep, fully concrete-lined ventilation shaft Click here to
Slide 13: La Colorada Skarn: exploring long-term partnerships
13 ZACATECAS, MEXICO La Colorada Skarn // Exploring long-term partnerships to develop the project Preliminary Economic Assessment 1 Highlights • Production averaging 17.2 Moz of silver, 427 kt of zinc and 218 kt of lead annually during the first 10 years • 50,000 tpd sub-level cave mine and conventi
Slide 14: La Colorada Skarn mineralization zones
14 1 // Mineralization is concentrated in 3 zones, covering an area of 1,500 metres by 1,100 metres, 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, as amended, for the Preliminary Economic Assessment of the La Colorad
Slide 15: La Colorada Skarn would rank 4th largest silver mine
15 // Relative to 2023 mine performance, La Colorada Skarn would rank as the 4 th largest global silver mine 1,2 Largest Mines by Total Silver Production in 2023 1 (Moz) Estimated Mine Life3 2040 n.a. 2030 2033 2047 2035 2028 2027 2027 2039 41.1 Annual Production1 (Moz) 21.2 19.0 18.0 17.2 16.8 14.9
Slide 16: La Colorada Skarn would rank 4th largest zinc mine
16 // Relative to 2023 mine performance, La Colorada Skarn would also rank as the 4 th largest global zinc mine 1,2 Largest Mines by Total Zinc Production in 2023 1 (kt) Estimated Mine Life3 2031 2031 2036 2047 2044 2033 2040 2036 2030 2042 540 485 463 Annual Production1 (kt) 427 287 262 262 208 171
Slide 17: La Colorada Skarn in first quartile of cost curve
17 // La Colorada Skarn would also rank in the first quartile of the cost curve Zinc Total Production Cost Curve in 2023 1 (kt, ₵ / lb) – inclusive of depreciation Production (%) 0% 25% 50% 75% 100% 200.00 Kazzinc Consolidated Dugald River McArthur River La Colorada Skarn2 Total Production Cost (¢/l
Slide 18: Escobal: one of the world's best silver mines
18 SANTA ROSA, GUATEMALA MEXICO GUATEMALA // One of the world’s best silver mines Escobal • High-quality, well-built operation with over $500M invested1 • 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 consist
Slide 19: Escobal ILO 169 consultation process
19 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 20: Silver reserves, resources and production versus peers
20 Silver Proven & Probable Silver Measured & Indicated 2023 Silver Production (Moz) Mineral Reserves 1 (Moz) Mineral Resources 1 (Moz) Pan American 468.0 Pan American 1,148.0 Fresnillo 56.3 Fresnillo 381.2 Fresnillo 723.7 Pan American 20.4 Coeur 243.9 Endeavour Silver 529.9 Hecla 14.3 Hecla 238.3 H
Slide 21: Leading silver producer by market cap and liquidity
21 // Pan American is the leading silver producer by market cap, liquidity, and silver price correlation Silver Producers by Market Capitalization and Liquidity 1-Year Share Price Correlation to Silver Price 2 $90 Pan American 78% $80 Hecla 77% $70 MAG 72% Hecla Coeur 68% $60 First Majestic 66% Liqu
Slide 22: Growing industrial demand from decarbonization and electrification
22 // Growing industrial demand from global transition to decarbonization and electrification 2024E Silver Market Dynamics 1 Electrical Applications Silver Demand (Moz) 486 445 351 371 Photography & Other 322 Recycling 2% 18% Investment2 17% Silver Silver 2020 2021 2022 2023 2024F Supply Demand 1.00
Slide 23: Silver market total supply and demand
23 Silver Market Total Supply and Demand 1,300 1,100 Silver (Moz) 900 700 500 2016 2017 2018 2019 2020 2021 2022 2023 2024F 2025F 2026F 2027F 2028F Total Supply Total Demand Silver Market Balance 100 0 Silver (Moz) -100 -200 -300 2016 2017 2018 2019 2020 2021 2022 2023 2024F 2025F 2026F 2027F 2028F
Slide 24: ESG ratings and rankings
24 Reporting Frameworks and Standards ESG Ratings and Rankings 62 A RATING Ranked top 8th Ranked Top 60th Percentile in the Metals percentile & Mining industry Memberships and Associations Scale: 0 (worst) Scale: CCC (worst) to 100 (best) to AAA (best) 24.2 (MEDIUM RISK) E nvironment: 1 Ranked Top 2
Slide 25: A leading producer of silver and gold in the Americas
25 // A leading producer of silver & gold in the Americas $8.5 B $0.10 $76 M QUARTERLY DIVIDEND AVERAGE DAILY MARKET CAP PER SHARE2 TRADING VALUE3 363.0 M 1.7% 10 SHARES SELL SIDE DIVIDEND YIELD OUTSTANDING ANALYSTS Analyst Coverage4 Top Shareholders5 BofA Global Research (Lawson Winder) Van Eck (11
Slide 26: Appendix
PAN AMERICAN APPENDIX
Slide 27: 2024 Operating Outlook reaffirmed
27 // Operating Outlook reaffirmed for production, Cash Costs 2 and AISC2, and capital expenditures • Annual silver production towards the low end of range • Silver and gold production heavily weighted to Q4 2024 YTD 2024 2024 Full Year Actual Operating Outlook1 Consolidated Production Silver (Moz)
Slide 28: 2024 capital expenditures
28 Expenditures ($ 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)2 4.5 – 5.5 Jacobina Jacobina (Brazil) 53.0 – 55.0 E
Slide 29: Dividend policy and share buyback
29 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 30: Structure and accountability
30 // Structure and Accountability Senior Management’s Compensation linked to ESG Performance • The Communities and Sustainable Development Committee reviews the Company’s sustainability performance and management of sustainability impacts. • The Health, Safety and Environment Committee provides pol
Slide 31: La Colorada mine overview
31 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 Production1 and twin fan infrastructure (Backend Loaded) TYPE LOCATION OWNERSHIP Exploration to the east of NC2 and south Underground Mine Zacatecas, Mexi
Slide 32: Jacobina mine overview
32 Opportunities MINE OVERVIEW Au Mine optimization and mining method selection 185 – 203 koz 2024F Au Production2 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 Throu
Slide 33: El Peñon mine overview
33 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 Production1 Continue infill drilling to confirm reserve grades Underground Mine Antofagasta, Chile 100% ~3,650 tpd
Slide 34: Shahuindo mine overview
34 Opportunities MINE OVERVIEW Au Ag 122 - 144 koz Expected leach recovery increase over LOM 2024F Au Production1 TYPE LOCATION OWNERSHIP based on metallurgical testing Open-Pit Mine Cajamarca, Peru 100% ~33,840 tpd Completion of leach pads and waste 2024F Plant Throughput1 dumps facilities by 2027
Slide 35: Huaron mine overview
35 Opportunities MINE OVERVIEW Ag Zn Pb Cu 3.5 – 3.8 Moz Continue development and exploration of 2024F Ag Production1 TYPE LOCATION OWNERSHIP the Horizonte zone Underground Mine Pasco, Peru 100% ~2,550 tpd Improve electricity efficiency and lower costs 2024F Plant Throughput1 • Huaron is an undergro
Slide 36: Timmins mine overview
36 Opportunities MINE OVERVIEW Au New tailings facility and completion of 125 – 135 koz paste fill plant at Bell Creek 2024F Au Production1 TYPE LOCATION OWNERSHIP Exploration and development Underground Mine Ontario, Canada 100% opportunities at Whitney and deep Bell ~4,240 tpd Creek 2024F Plant Th
Slide 37: San Vicente mine overview
37 Opportunities MINE OVERVIEW Ag Zn Pb Cu 2.9 – 3.1 Moz Maintain consistent steady-state 2024F Ag Production1 TYPE LOCATION OWNERSHIP production Underground Mine Potosi, Bolivia 95% ~1,030 tpd Near mine exploration on the western 2024F Plant Throughput1 portion of the Union Vein; veins and geophysi
Slide 38: Minera Florida mine overview
38 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 Production1 TYPE LOCATION OWNERSHIP where the veins are under-explored Underground Mine Metropolitan Region, Chile 10
Slide 39: Cerro Moro mine overview
39 MINE OVERVIEW Opportunities Ag Au Possible reduction in costs will allow us to 3.2 – 3.5 Moz Ag convert previously uneconomic lower- 93 – 115 koz Au TYPE LOCATION OWNERSHIP grade resources to reserves 2024F Production1 Open-Pit & Santa Cruz, Argentina 100% ~1,100 tpd Underground Production Histor
Slide 40: Dolores mine overview
40 MINE OVERVIEW Au Ag 65 – 75 koz Au 1.9 – 2.2 Moz Ag TYPE LOCATION OWNERSHIP 2024F Production1 Open-Pit Mine Chihuahua, Mexico 100% Production & Cost History $1,275 – $1,375 2024F Au AISC1,2 • Dolores is an open-pit mine that produces gold and silver dore using a $2,065 Entering novel pulp agglome
Slide 41: Navidad: one of the largest undeveloped silver deposits
41 41 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 42: La Colorada Skarn 50,000 tpd case
42 // 50,000 tpd case Construction period 6 years Production mine life 17 years Notes: Production rate 50 ktpd (or 18.25 Mtpa) 1. Assumes metal prices of $2,800 per tonne of zinc, $2,200 per Mineable inventory 284.7 million tonnes tonne of lead, and $22.00 per ounce of silver. Average annual silver
Slide 43: Mineral reserves as of June 30, 2024
PAN AMERICAN SILVER MINERAL RESERVES 11:0: 30,202» property Location Classification ToMmes Ag Contained © Au Contained Cu Contained = Pb Contained Zn Contained (Mt) __(g/t)__Ag(Moz) __(g/t)__—Au(koz)__(%) __—Cu (kt) (%) Pb (kt) (%) Zn (kt) Escobal Guatemala Proven 25 486 39.5 0.42 34.2 - - 1.02 25.7
Slide 44: Measured and indicated resources (silver segment)
PAN AMERICAN SILVER MEASURED « INDICATED RESOURCES as of June 30, 202412 Contained Contained Au Property Location Classification Tonnes (Mt) Ag (g/t) ‘Ag (\Moz) Au (g/t) (koz) Cu(%) Pb(%) Zn (%) Navidad Argentina Measured 15.4 137 67.8 - - 0.10 1.44 - Indicated 139.8 126 564.5 - : 0.04 0.79 : La Col
Slide 45: Measured and indicated resources (gold segment)
PAN AMERICAN SILVER MEASURED « INDICATED RESOURCES as of June 30, 202412 Property Location Classification Tonnes (Mt) ion ata Au (g/t) ah AU curls) P(%) 2 (96) Jacobina Brazil Measured 39.7 1.70 2,175.1 ” ms * Indicated 55.1 158 2,796.0 - - - La Arena II! Peru Measured 152.2 0.25 1,246.1 0.38 = = In
Slide 46: Inferred mineral resources
PAN AMERICAN SILVER INFERRED MINERAL RESOURCES as of June 30, 202412 ‘Ag Contained Ag Au Property Location Classification Tonnes (Mt) (gi) (Moz) ww) (kor) cu(%) Pb (%) Zn (%) Navidad Argentina Inferred 45.9 Es 119.4 - - 002 0.57 La Colorada Mexico Inferred 12.4 235 938 0.19 744 168 2.95 La Colorada
Slide 47: Metal price assumptions for reserves and resources
METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES 5: fre 0, 2024 Mine Category Ag USS$/oz Au US$/oz Cu USS/t Pb USS/t Zn USS/t Escobal All categories 20.00 1,300 2,204 2,424 RESGRES 20.00 1,700 8,000 2,100 2,600 La Colorada Resources 22.00 1,850 9,000 2,200 2,800 La Colorada Skar
Slide 48: Metal price assumptions for reserves and resources (continued)
METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES «rune 30,2024 Mine Category Ag US$/oz Au US$/oz Cu USS/t Pb USS/t Zn USS/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 49: Mineral reserve and resource estimation notes
49 All mineral reserves and mineral resources have been estimated in accordance with the CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as amended (the "CIM Standards") and reported in accordance with National Instrument 43-101 – Standards of Disclosu
Slide 50: Investor relations contact
50 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
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