Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Investor Presentation (November 2024)
51 slides from Pan American Silver's investor presentation, November 2024
Slide 1: The World's Premier Silver Mining Company
THE WORLD’S PREMIER SILVER MINING COMPANY NYSE | TSX PAAS NYSE | TSX P R E S E N TAT I O N // PAAS NOVEMBER 2024
Slide 2: Cautionary Note
2 Escobal; future anticipated prices for gold, silver and other metals and assumed hazards inherent with the business of mining (including environmental accidents CAUTIONARY NOTE foreign exchange rates; the expected sale of the La Arena gold mine and La Arena II copper/gold development project; stra
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: Diversified Assets + Growth Catalysts
CANADA 4 Head Office Timmins Dolores DIVERSIFIED ASSETS + GROWTH CATALYSTS 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
Slide 5: Q3 2024 Takeaways
5 Q3 2024 TAKEAWAYS // 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 financi
Slide 6: Q3 2024 Consolidated Cash Flows
6 6 Q3 2024 CONSOLIDATED CASH FLOWS 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 Ne
Slide 7: Strong Financial Position
7 STRONG FINANCIAL POSITION 1 // 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 Decembe
Slide 8: Capital Allocation Approach
8 CAPITAL ALLOCATION APPROACH // 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 targ
Slide 9: Strong Track Record of Accretive Acquisitions
9 STRONG TRACK RECORD OF ACCRETIVE ACQUISITIONS // 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
Slide 10: Portfolio Optimization
10 PORTFOLIO OPTIMIZATION // 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 projec
Slide 11: Safety Is Always Our Number One Priority
11 SAFETY IS ALWAYS OUR NUMBER ONE PRIORITY // 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 •
Slide 12: New La Colorada Ventilation Infrastructure
12 NEW LA COLORADA VENTILATION INFRASTRUCTURE // 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 con
Slide 13: La Colorada Skarn
13 ZACATECAS, MEXICO La Colorada Skarn 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
Slide 14: La Colorada Skarn Views
14 1 LA COLORADA SKARN VIEWS // 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 NYSE | TSX 1. Please refer to the NI 43-101 Technical Report dated January 31, 2024, as amended, for the Preliminary Ec
Slide 15: La Colorada Skarn: Large-Scale Silver Production
15 LA COLORADA SKARN: LARGE-SCALE SILVER PRODUCTION // 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 Annua
Slide 16: La Colorada Skarn: Large-Scale Zinc Mine
16 LA COLORADA SKARN: LARGE-SCALE ZINC MINE // 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
Slide 17: La Colorada Skarn: Low-Cost Zinc Mine
17 LA COLORADA SKARN: LOW-COST ZINC MINE // 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 Colo
Slide 18: Escobal Guatemala
18 SANTA ROSA, GUATEMALA MEXICO ESCOBAL 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
Slide 19: Escobal Consultation Process
19 ESCOBAL CONSULTATION PROCESS 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 VERIFIC
Slide 20: Leading Silver Mineral Reserves and Resources with Strong Production
20 LEADING SILVER MINERAL RESERVES AND RESOURCES WITH STRONG PRODUCTION 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 Amer
Slide 21: Providing Investors with the Best Exposure to Silver
21 PROVIDING INVESTORS WITH THE BEST EXPOSURE TO SILVER // 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% $7
Slide 22: Positive Silver Market Dynamics
22 POSITIVE SILVER MARKET DYNAMICS // 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 20
Slide 23: Demand Expected to Exceed Supply Over Next 4 Years
23 DEMAND EXPECTED TO EXCEED SUPPLY OVER NEXT 4 YEARS 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
Slide 24: Committed to Leading ESG Performance
24 COMMITTED TO LEADING ESG PERFORMANCE 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 (MEDI
Slide 25: Pan American Snapshot
25 PAN AMERICAN SNAPSHOT1 // A leading producer of silver & gold in the Americas $8.5 B $0.10 $76 M NYSE: PAAS MARKET CAP QUARTERLY DIVIDEND PER SHARE2 AVERAGE DAILY TRADING VALUE3 TSX: PAAS 363.0 M SHARES 1.7% 10 SELL SIDE DIVIDEND YIELD OUTSTANDING ANALYSTS Analyst Coverage4 Top Shareholders5 BofA
Slide 26: Appendix
APPENDIX NYSE | TSX PAAS
Slide 27: An Experienced Operator in the Americas
27 AN EXPERIENCED OPERATOR IN THE AMERICAS // Our executive team has decades of experience working in the Americas Michael Steinmann Steve Busby Ignacio Couturier PRESIDENT & CEO CHIEF OPERATING OFFICER CHIEF FINANCIAL OFFICER • Joined Pan American in 2004 • Joined Pan American in 2003 • Joined Pan
Slide 28: 2024 Guidance
28 2024 GUIDANCE1 // Operating Outlook reaffirmed for production, Cash Costs 2 and AISC2, and capital expenditures • Annual silver production towards the low end of range • Silver and gold production heavily weighted to Q4 2024 YTD 2024 2024 Full Year Actual Operating Outlook1 Consolidated Productio
Slide 29: 2024 Capital Expenditure & Operating Forecast
29 2024 CAPITAL EXPENDITURE & OPERATING FORECAST1 Expenditures ($ 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
Slide 30: Shareholder Returns
30 SHAREHOLDER RETURNS 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
Slide 31: Sustainability Governance and Management
31 SUSTAINABILITY GOVERNANCE AND MANAGEMENT // Structure and Accountability BOARD OF DIRECTORS 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.
Slide 32: La Colorada
32 LA COLORADA 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 Zac
Slide 33: Jacobina
33 JACOBINA 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 Pl
Slide 34: El Peñon
34 EL PEÑON 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% ~
Slide 35: Shahuindo
35 SHAHUINDO 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 facilitie
Slide 36: Huaron
36 HUARON 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 u
Slide 37: Timmins
37 TIMMINS 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
Slide 38: San Vicente
38 SAN VICENTE 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
Slide 39: Minera Florida
39 MINERA FLORIDA 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 R
Slide 40: Cerro Moro
40 CERRO MORO Opportunities MINE OVERVIEW 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 Produc
Slide 41: Dolores
41 DOLORES 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
Slide 42: Navidad
42 42 CHUBUT, ARGENTINA NAVIDAD 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 conti
Slide 43: La Colorada Skarn PEA Results Summary
43 LA COLORADA SKARN PEA RESULTS SUMMARY // 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 o
Slide 44: Pan American Silver Mineral Reserves
44 PAN AMERICAN SILVER MINERAL RESERVES As of June 30, 2024 1 NYSE | TSX PAAS
Slide 45: Pan American Silver Measured + Indicated Resources
45 PAN AMERICAN SILVER MEASURED + INDICATED RESOURCES as of June 30, 20241,2 NYSE | TSX PAAS
Slide 46: Pan American Silver Measured + Indicated Resources
46 PAN AMERICAN SILVER MEASURED + INDICATED RESOURCES as of June 30, 20241,2 NYSE | TSX PAAS
Slide 47: Pan American Silver Inferred Mineral Resources
47 PAN AMERICAN SILVER INFERRED MINERAL RESOURCES as of June 30, 20241,2 (5) NYSE | TSX PAAS
Slide 48: Metal Price Assumptions Used to Estimate Mineral Reserves & Resources
48 METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES as of June 30, 2024 NYSE | TSX PAAS
Slide 49: Metal Price Assumptions Used to Estimate Mineral Reserves & Resources
49 METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES as of June 30, 2024 NYSE | TSX PAAS
Slide 50: General Notes Applicable to the Foregoing Tables
50 GENERAL NOTES APPLICABLE TO THE FOREGOING TABLES: 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
Slide 51: PAAS
51 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 NYSE | TSX PAAS
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