Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Investor Presentation (January 2025)
47 slides from Pan American Silver's investor presentation, January 2025
Slide 1: Presentation January 2025
P R E S E N TAT I O N // JANUARY 2025
Slide 2: Cautionary Note and Non-GAAP Measures
2 of Pan American to secure suitable long-term partners for the La Colorada skarn duration and effect of local and world-wide inflationary pressures and the potential project and the success of any such partnerships and the impact on Pan American’s for economic recessions; fluctuations in silver, go
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 over 30 years GUATEMALA Escobal (C&M) • 10 producing silver and gold operations 3% • Advancing an extensive mine optimization 8%
Slide 5: Achieved 2024 production guidance following strong Q4
5 // Achieved 2024 production guidance following strong Q4 6.0 Moz Ag produced in Q4 driven by strong performance at La Colorada following completion of new ventilation infrastructure 224 koz Au produced in Q4, despite strategic disposition of La Arena1 Record annual production of 197 koz at Jacobin
Slide 6: An investment grade name
6 // An investment grade name Cash + Revolving Cash + short-term Credit TOTAL AVAILABLE short-term investments Cash + short-term investments of $887M Facility TOTAL AVAILABLE investments $887M includes $307M cash proceeds from La Arena sale2 $750M LIQUIDITY LIQUIDITY $1,637M $1,220M 4 3 Total debt3
Slide 7: Priorities for deploying free cash flow
77 // Pan American’s priorities for deploying 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 the acquisitions of Tahoe
Slide 8: Successful integration of new operating assets and realization of synergies
88 // Successful integration of new operating assets and realization of synergies 404 koz ~20 Moz $1.1B $25-30M Shahuindo La Arena4 February 22, 2019 2018A Gold Production Silver Production Optionality1 Total Consideration2 Annual Synergies3 Timmins & Bell Creek Escobal Jacobina 565 koz 9.2 Moz $2.8
Slide 9: Cash proceeds from divestment of non-core properties
9 // Cash proceeds of $990.4M 1 from divestment of non-core properties $245M UPFRONT CASH PROCEEDS R E TA I N E D R OYA LT I E S Sale of the La Arena gold mine and the $45.55M La Arena II Sale of 57.74% interest copper/gold MARA: 0.75% Cu NSR Royalty in the Aqua de la Falda project2 project La Arena
Slide 10: Jacobina: Aim to optimize long-term economics
10 BAHIA, BRAZIL // Aim to optimize long-term economics and evaluate expansion potential • Long life mine with excellent exploration potential to extend down-dip and along strike of known conglomerate reefs Jacobina • Evaluating geotechnical studies to develop alternative life- of-mine designs inten
Slide 11: La Colorada: New ventilation infrastructure completed
11 // New infrastructure completed in July 2024, resulting in significant improvement in mine ventilation conditions Two 2,000 horsepower ventilation fans installed at the surface of the Guadalupe shaft Fully concrete-lined 5.5 metre x 580 metre deep ventilation shaft 1.61 1.33 0.84 Q2 2024 Q3 2024
Slide 12: La Colorada Skarn: Exploring long-term partnerships
12 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 13: Mineralization concentrated in 3 zones
13 1 // Mineralization is concentrated in 3 zones, covering an area of 1,500 metres x 1,100 metres, and a depth of 800 metres to 1,900 metres below surface HW Vein 1000 m DATUM: Local Mine Grid 1. Please refer to the NI 43-101 Technical Report dated January 31, 2024, as amended, for the Preliminary
Slide 14: La Colorada Skarn would rank 4th largest global silver mine
14 // 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 2036 2028 2027 2028 2029 41.1 Annual Production1 (Moz) 21.2 19.0 18.0 17.2 16.8 14.9
Slide 15: La Colorada Skarn would rank 4th largest global zinc mine
15 // 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 16: La Colorada Skarn in first quartile of cost curve
16 // 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 17: Escobal: One of the world's best silver mines
17 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 18: Escobal license suspended pending ILO 169 consultation
18 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 19: Silver reserves, resources and production versus peers
19 Silver Proven & Probable Silver Measured & Indicated 2023 Silver Production (Moz) Mineral Reserves 1 (Moz) Mineral Resources 1 (Moz) Pan American 468.0 Pan American 1,142.2 Fresnillo 56.3 Fresnillo 381.2 Fresnillo 723.7 Pan American 20.4 Coeur 243.9 Hecla 14.3 Endeavour Silver 529.9 Hecla 238.3 H
Slide 20: Leading silver producer by market cap, liquidity, silver correlation
20 // 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 79% $80 Hecla 75% $70 Hecla MAG 72% First Majestic Coeur Coeur 69% $60 Fi
Slide 21: Growing industrial demand from decarbonization and electrification
21 // Growing industrial demand from global transition to decarbonization and electrification 2024F Silver Market Dynamics 1 Electrical Applications Silver Demand (Moz) 486 445 351 371 Photography & Other 322 Scrap & 2% Other Investment2 19% 17% Silver Silver 2020 2021 2022 2023 2024F Supply Demand
Slide 22: Silver Market Total Supply and Demand
22 Silver Market Total Supply and Demand 1,300 1,100 Silver (Moz) 900 700 500 2017 2018 2019 2020 2021 2022 2023 2024F 2025F 2026F 2027F 2028F 2029F Total Supply Total Demand Silver Market Balance 100 0 Silver (Moz) -100 -200 -300 2017 2018 2019 2020 2021 2022 2023 2024F 2025F 2026F 2027F 2028F 2029
Slide 23: ESG ratings and rankings
23 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 24: A leading producer of silver and gold in the Americas
24 // A leading producer of silver & gold in the Americas $7.8 B $0.10 $74 M QUARTERLY DIVIDEND AVERAGE DAILY MARKET CAP PER SHARE2 TRADING VALUE3 363.0 M 1.9% 10 SHARES SELL SIDE DIVIDEND YIELD OUTSTANDING ANALYSTS Analyst Coverage4 Top Shareholders5 BofA Global Research (Lawson Winder) Van Eck (10
Slide 25: Appendix
PAN AMERICAN APPENDIX
Slide 26: Dividend Policy and Share Buyback
26 26 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 ba
Slide 27: Structure and Accountability
27 27 // 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
Slide 28: La Colorada mine overview
28 28 Opportunities MINE OVERVIEW Ag Pb Zn Leveraging new 5.5 metre concrete-lined ventilation shaft and twin fan 4.9 Moz infrastructure to optimize throughput and 2024 Ag Production TYPE LOCATION OWNERSHIP reach higher-grade areas of the mine 1,950 tpd Underground Mine Zacatecas, Mexico 100% Explor
Slide 29: Jacobina mine overview
29 29 Opportunities MINE OVERVIEW Au Mine optimization study underway to maximize life-of-mine economics 197 koz 2024 Au Production TYPE LOCATION OWNERSHIP Excellent exploration potential to extend down- Underground Mine Bahia, Brazil 100% dip and along strike of known conglomerate 8,990 tpd reefs A
Slide 30: El Peñon mine overview
30 30 Opportunities MINE OVERVIEW Au Ag District-scale exploration potential being tested 127 koz Au to enhance mine life 3.9 Moz Ag TYPE LOCATION OWNERSHIP 2024 Production Aggressive resource conversion drill program Underground Mine Antofagasta, Chile 100% intended to add further reserves 3,724 tp
Slide 31: Shahuindo mine overview
31 31 Opportunities MINE OVERVIEW Au Ag Expected leach recovery increase over LOM 135 koz based on metallurgical testing 2024 Au Production TYPE LOCATION OWNERSHIP Completion of leach pads and waste 35,586 tpd Open-Pit Mine Cajamarca, Peru 100% dumps facilities by 2027 expected to 2024 Avg. Throughp
Slide 32: Huaron mine overview
32 32 Opportunities MINE OVERVIEW Ag Zn Pb Cu 3.5 Moz Continue development and exploration of 2024 Ag Production TYPE LOCATION OWNERSHIP the Horizonte zone to the southeast Underground Mine Pasco, Peru 100% 2,552 tpd Improve electricity efficiency and lower costs 2024 Avg. Throughput • Huaron is an
Slide 33: Timmins mine overview
33 33 Opportunities MINE OVERVIEW Au Potential to improve ground stability and increase mineral resource recovery 124 koz following completion of backfill paste plant 2024 Au Production TYPE LOCATION OWNERSHIP at Bell Creek Underground Mine Ontario, Canada 100% Exploration and development 4,357 tpd
Slide 34: San Vicente mine overview
34 34 Opportunities MINE OVERVIEW Ag Zn Pb Cu 3.1 Moz Leverage steady state production to 2024 Ag Production TYPE LOCATION OWNERSHIP strengthen silver segment Underground Mine Potosi, Bolivia 95% 1,089 tpd Near mine exploration to replace 2024 Avg. Throughput1 resources; veins and geophysical • Prod
Slide 35: Minera Florida mine overview
35 35 Opportunities MINE OVERVIEW Au Ag Zn Ongoing exploration of the core mine down dip and laterally. Continued near- 80 koz site exploration to the north, east and at 2024 Au Production TYPE LOCATION OWNERSHIP depth where the veins are under-explored Underground Mine Metropolitan Region, Chile 10
Slide 36: Cerro Moro mine overview
36 36 MINE OVERVIEW Opportunities Ag Au Possible reduction in costs may allow us to 3.0 Moz Ag convert previously uneconomic lower- 77 koz Au TYPE LOCATION OWNERSHIP grade resources to reserves 2024 Production Open-Pit & Santa Cruz, Argentina 100% 1,125 tpd Underground Production History 2024 Avg. T
Slide 37: Dolores mine overview
37 37 MINE OVERVIEW Au Ag 72 koz Au 1.7 Moz Ag TYPE LOCATION OWNERSHIP 2024 Production Open-Pit Mine Chihuahua, Mexico 100% Production & Cost History $1,275 – $1,375 2024F Au AISC1 • The operation is included in Pan American’s Gold Segment $2,065 Entering • Mining activities from known ore reserves
Slide 38: Navidad: One of the largest undeveloped primary silver deposits
38 3838 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
Slide 39: La Colorada Skarn 50,000 tpd case
39 39 // 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 Mineable inventory 284.7 million tonnes per tonne of zinc, $2,200 per tonne of lead, and $22.00 per Average annual silver produced first
Slide 40: Mineral Reserves as of June 30, 2024
PAN AMERICAN SILVER MINERAL RESERVES «>i... 30 2020 Tonnes Ag Contained Au Contained Cu Contained Pb Contained Zn Contained Property Location Classificetion (wit) _(g/t)__Ag(Moz) (g/t) Au (Koz) (%) __Cu(kt) _—_—(%)_—sPb (kt) —(%)_——Zn (kt) Escobal Guatemala Proven 25 ‘486 39.5 0.42 34.2 - - 1.02 25.
Slide 41: Measured and Indicated Resources
PAN AMERICAN SILVER MEASURED « INDICATED RESOURCES as of June 30, 2024123 Contained Contained Au Property Location Classification Tonnes(Mt) Ag(B/t) “A2iaros) Au (at) (kez) cu(%) Pb(%) Zn (%) Navidad Argentina Measured 15.4 137 67.8 - - 0.10 1.44 - Indicated 139.8 126 564.5 - - 0.04 0.79 - La Colora
Slide 42: Measured and Indicated Resources (continued)
PAN AMERICAN SILVER MEASURED « INDICATED RESOURCES as of June 30, 2024123 Property Location Classi Tonnes (Mt) en revs Au (2/t) coe AU cu(%) Pb (%) 2m (%) Jacobina Brazil Measured 39.7 1.70 2,475.1 - - - Indicated 55.1 1.58 2,796.0 - - - La Pepa (80%)!") Chile Measured a7 0.61 922.8 - - - Indicated
Slide 43: Inferred Resources
43 43 as of June 30, 20241,2,3 (5)
Slide 44: Metal price assumptions for reserves and resources
® METAL PRICE ASSUMPTIONS USED TO ESTIMATE MINERAL RESERVES & RESOURCES 5: fine 0, 2024 Mine Category Ag US$/oz Au US$/oz cu US$/t Pb USS/t Zn USS/t Escobal All categories 20.00 1,300 2,204 2,424 Resemes 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 Sk
Slide 45: Metal price assumptions (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 US$/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 46: Notes on mineral reserves and resources
46 46 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 Discl
Slide 47: Investor relations contact
47 47 47 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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