Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Q4 2023 Earnings Presentation
22 slides from Pan American Silver's earnings presentation, Feb 22, 2024
Slide 1: Conference Call, February 22, 2024
1 CONFERENCE CALL // FEBRUARY 22, 2024 2023 2023
Slide 2: Cautionary Note and Non-GAAP Measures
2 views with respect to future events and are necessarily based upon a number of United States, Mexico, Peru, Argentina, Bolivia, Guatemala, Chile, Brazil or other assumptions that, while considered reasonable by Pan American, are inherently countries where Pan American may carry on business, includ
Slide 3: Q4 2023 Highlights
3 // Record revenue of $669.6M Production of 4.8 million ounces Adjusted loss of $16.3M, or silver and 268 thousand ounces gold $0.04 per share(1) Announced PEA results for the La Strong financial position with Colorada Skarn Project $1.2B in Total Available • Production expected to average Liquidit
Slide 4: Revenue, Mine Operating Earnings and Net Loss
4 in millions of US$, except per share amounts Q4 2023 FY 2023 Revenue 669.6 2,316.1 Mine operating earnings 64.9 296.8 Net loss (67.8) (104.9) Basic loss per share(1) (0.19) (0.32) Adjusted (loss) earnings (2) (16.3) 39.3 Basic adjusted (loss) earnings per share(1)(2) (0.04) 0.12 Net cash generated
Slide 5: Silver and Gold Production by Mine
5 Silver Production Gold Production (ounces ‘000s) (ounces ‘000s) Q4 2023 FY 2023 Q4 2023 FY 2023 La Colorada 806 4,392 0.4 2.3 Cerro Moro(2) 886 3,547 30.3 84.6 Huaron 905 3,608 0.2 1.1 San Vicente(1) 738 2,978 - 0.1 Manantial Espejo - 191 - 1.7 Jacobina(2) - - 51.1 147.8 El Peñon(2) 853 2,906 33.9
Slide 6: Cash Costs and AISC
6 1. Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” Cash Costs(1) AISC(1) section of the MD&A for the period ended December 31, 2023, for a detailed description of these measures and ($ per ounce) ($ per ounce) where appropriate a reconci
Slide 7: Realized Metal Prices and Quantities of Metal Sold
7 Realized Metal Prices(1) Quantities of Metal Sold(2) Q4 2023 FY 2023 Q4 2023 FY 2023 Silver 22.33 22.94 4,959 20,951 Gold 1,980 1,951 270.4 893.9 Zinc 2,493 2,656 9.7 36.8 Lead 2,121 2,146 4.0 17.9 Copper 8,146 8,475 1.0 4.1 1. Metal price stated as dollars per ounce for silver and gold, and dolla
Slide 8: Q4 2023 Payable Production, Metal Sold and Inventory
8 Payable Metal Quantities of Inventory Mine/Product Produced(1) Metal Sold build/(draw) Silver Gold Silver (thousand ounces) Inventory draw of 319 koz Inventory draw of 3.1 koz La Colorada 759 782 (22) Cerro Moro 886 1,024 (138) Huaron 793 683 110 San Vicente(2) 712 805 (93) Metal El Peñon 853 894
Slide 9: FY 2023 Payable Production, Metal Sold and Inventory
9 Payable Metal Quantities of Inventory Silver Gold Mine/Product Produced(1) Metal Sold build/(draw) Inventory draw of 1,351 koz Inventory draw of 13.2 koz Silver (thousand ounces) La Colorada 4,131 4,504 (373) Cerro Moro(4) 3,547 3,577 (30) Huaron 3,171 3,127 44 Metal Sold San Vicente(2) 2,867 2,85
Slide 10: Q4 2023 Cash Flow Performance
10 Sustaining Cash Flow Performance Growth, Business Development, and Other $700 $56 $600 $159 $500 $46 $9 ($93) ($36) $432 $441 ($32) ($37) ($9) $386 ($8) $400 Millions $300 $200 $100 $0 Cash and STI at Adjusted operating Net changes in Sustaining capital Dividends paid Net income tax Net other (e.
Slide 11: FY 2023 Cash Flow Performance
11 Sustaining Cash Flow Performance Growth, Business Development, and Other $1,200 $125 $1,000 $649 $69 $661 $800 ($382) Millions $600 ($289) ($130) ($77) $441 ($149) ($25) $400 ($14) $295 ($130) ($9) $200 $142 $0 Cash and STI at Adjusted Net changes in Sustaining Net income tax Dividends paid Net o
Slide 12: Q4 2023 Basic Adjusted Loss of $0.04/share
12 Q4 2023 Basic Adjusted Loss of $0.04/share (1) ($16.3) (1) Adjusted loss and basic adjusted loss per share are non-GAAP financial measures. Please refer to the section “Alternative Performance (Non-GAAP) Measures” of the MD&A for the period ended December 31, 2023, for a detailed description of t
Slide 13: FY 2023 Basic Adjusted Earnings of $0.12/share
13 FY 2023 Basic Adjusted Earnings of $0.12/share (1) $39.3 (1) Adjusted earnings and basic adjusted earnings per share are non-GAAP financial measures. Please refer to the section “Alternative Performance (Non-GAAP) Measures” of the MD&A for the period ended December 31, 2023, for a detailed descri
Slide 14: 2023 Operating Outlook vs FY 2023 Actual
14 FY 2023 2023 Operating Outlook(1,2) Actual(2) Annual Production Silver - Moz 21.0 - 23.0 20.4 Gold - koz 870 - 970 883 Zinc - kt 41 - 45 39 Lead - kt 18 - 21 19 Copper - kt 5 5 Cash Costs ($ per ounce)(2,3,4) Silver Segment Cash Costs 10.00 - 12.00 13.07 Silver Segment AISC 14.00 - 16.00 18.17 Go
Slide 15: Project capital largely invested in La Colorada Skarn and Jacobina
15 Expenditures ($ millions) Project capital largely invested 2023 Forecast Capital FY 2023 Investment(1) Actual in the La Colorada Skarn project Sustaining Capital and Jacobina La Colorada 15.0 - 16.0 19.5 Cerro Moro 20.0 - 21.0 25.4 Huaron 17.0 - 18.0 20.4 San Vicente(2) 3.5 - 4.5 3.8 Manantial Es
Slide 16: Total Available Liquidity $1,191M
16 Revolving Credit TOTAL AVAILABLE ~$90M in annual savings from lower care & maintenance costs Facility LIQUIDITY Cash + and reduced interest expense and savings in excess of $60M $750M short-term annually in G&A synergies from Yamana transaction $1,191M(3) investments $441M Total debt(2) of $801.6
Slide 17: 2024 Guidance: Silver and Gold Production and Costs
17 // forecasting an increase in silver and gold production relative to 2023 and strong performance on costs (1) Ag Au 21.0 – 23.0 Moz 880 – 1,000 Koz ANNUAL CONSOLIDATED ANNUAL CONSOLIDATED PRODUCTION PRODUCTION $11.70 - $14.10 per oz $1,165 - $1,260 per oz SILVER SEGMENT CASH COSTS1 GOLD SEGMENT C
Slide 18: 2024 Production and Cost Guidance by Mine
18 Silver Production Gold Production Cash Costs AISC (million ounces) (thousand ounces) ($ per ounce)(1) ($ per ounce) (1) Silver Segment: La Colorada (Mexico) 5.3 – 5.7 2 16.60 - 19.30 21.00 - 24.00 Cerro Moro (Argentina) 3.2 – 3.5 93 – 115 3.20 - 6.70 8.00 - 11.50 Huaron (Peru) 3.5 – 3.8 – 9.30 -
Slide 19: 2024 Quarterly Guidance
19 Q1 Guidance Q2 Guidance Q3 Guidance Q4 Guidance FY 2024 Guidance Silver Production (million ounces) 4.75 - 5.30 5.36 - 5.78 5.44 - 5.97 5.45 - 5.95 21.0 - 23.0 Gold Production (thousand ounces) 204 - 231 221 - 252 229 - 258 226 - 259 880 - 1,000 Silver Segment Cash Costs (1) 16.50 - 18.50 15.50 -
Slide 20: 2024 Capital Expenditures Guidance
20 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)(1) 4.5 – 5.5 Jacobina Jacobina (Brazil) 53.0 – 55.0
Slide 21: To join the queue
To join the queue: Press * and 1 on your touch-tone telephone. You will hear a tone acknowledging your request. If you wish to remove yourself from the queue, press * and 2
Slide 22: Audio and presentation archive
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/