Pan American Silver Corp. · TSX:PAAS
Pan American Silver — Q4 2022 Earnings Presentation
22 slides from Pan American Silver's earnings presentation, Feb 23, 2023
Slide 1: Conference Call, February 23, 2023
1 CONFERENCE CALL // FEBRUARY 23, 2023
Slide 2: Non-GAAP Measures and Forward-Looking Statements
2 the extent of, and success related to any future exploration or development programs, on global economies and society; fluctuations in silver, gold and base metal prices; including with respect to the La Colorada skarn; whether Pan American is able to maintain fluctuations in prices for energy inp
Slide 3: Cautionary Note Continued
3 CONTINUED NOT AN OFFER OR A SOLICITATION THIS PRESENTATION DOES NOT CONSTITUTE (AND MAY NOT BE CONSTRUED TO BE) A SOLICITATION OR OFFER BY PAN AMERICAN OR ANY OF OUR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, REPRESENTATIVES OR AGENTS TO BUY OR SELL ANY SECURITIES OF ANY PERSON IN ANY JURISDICTION
Slide 4: Q4 2022 Highlights
4 NASDAQ: PAAS // TSX: PAAS Announced transaction to acquire Revenue of $375.5M excludes Yamana Gold with related expenses approximately $45M to $50M of impacting earnings and cash flow finished goods inventory build-ups Silver production of 4.8 Moz and gold Strong financial position with total prod
Slide 5: Revenue, Mine Operating Earnings, Net (Loss) Earnings
5 unaudited in millions of US$, except per share amounts Q4 2022 FY 2022 Revenue 375.5 1,494.7 Mine operating earnings 35.0 48.4 Net (loss) earnings (172.1) (340.1) Basic (loss) earnings per share(1) (0.82) (1.62) Adjusted (loss) earnings(2) (4.8) 17.9 Basic adjusted (loss) earnings per share(1)(2)
Slide 6: Silver Production and Gold Production
6 Silver Production Gold Production (ounces ‘000s) (ounces ‘000s) Q4 2022 FY 2022 Q4 2022 FY 2022 La Colorada 1,339 5,927 0.7 3.3 Huaron 1,025 3,660 0.2 0.9 Morococha(1) — 324 — 0.1 San Vicente(2) 703 2,526 — 0.1 Manantial Espejo 1,010 3,463 8.9 26.6 Dolores 591 2,242 34.6 136.9 Shahuindo 77 260 49.
Slide 7: Cash Costs and AISC ($ per ounce)
7 Cash Costs(1) AISC(1) ($ per ounce) ($ per ounce) Q4 2022 FY 2022 Q4 2022 FY 2022 1. Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for a detailed description of these measures and, where La Colorada 15.19 11.57 24.
Slide 8: Realized Metal Prices and Quantities of Metal Sold Q4 2022
8 Realized Metal Prices(1) Quantities of Metal Sold(2) Q4 2022 FY 2022 Q4 2022 FY 2022 Silver $21.17 $21.59 4,080 17,486 Gold $1,736 $1,792 146.6 548.8 Zinc $2,878 $3,472 5.4 29.9 Lead $2,111 $2,148 4.6 17.6 Copper $7,957 $8,979 1.2 4.7 1. Metal price stated as dollars per ounce for silver and gold,
Slide 9: Q4 2022 Payable Metal Produced vs Sold
9 Silver Gold Mine/Product Payable Metal Quantities of Inventory Produced(1,2) Metal Sold build/(draw)(3) 418.1 thousand ounces build 17.2 thousand ounces build Silver (thousand ounces) La Colorada 1,269.9 1,306.3 (36.4) Payable Metal Payable Huaron 865.7 843.7 22.0 Metal Sold Produced 4,080.4 Metal
Slide 10: FY 2022 Payable Metal Produced vs Sold
10 Silver Gold Mine/Product Payable Metal Quantities of Inventory Produced(1,2) Metal Sold build/(draw) 43.7 million ounces drawn 1.6 thousand ounces build Silver (thousand ounces) La Colorada 5,624.7 5,711.9 (87.1) Payable Payable Huaron 3,068.1 3,013.8 54.3 Metal Sold Metal Sold Metal Metal 548.8
Slide 11: Silver production at the top end of the Revised Operating Outlook
11 November 2022 FY 2022 Silver production at the Revised Operating Outlook Actual top end of the Revised Annual Production Operating Outlook. Silver - Moz 18.0 - 18.5 18.5 Gold production within Gold - koz 550.0 - 605.0 552.5 the Original Operating Zinc - kt 35.0 - 40.0 38.6 Outlook. Lead - kt 15.0
Slide 12: Capital Expenditures: Project capital largely invested in La Colorada Skarn
12 Expenditures ($ millions) Project capital largely invested August 2022 FY 2022 in the La Colorada Skarn project Revised Operating Outlook Actual Sustaining Capital La Colorada 28.0 - 29.0 29.3 Huaron 16.0 - 19.0 13.9 Morococha n/a 0.3 San Vicente 7.0 - 8.0 7.2 Manantial Espejo 2.0 - 3.0 4.3 Dolor
Slide 13: La Colorada Skarn Ventilation Shaft
13 The fully concrete lined 5.5-metre diameter and 560-metre deep ventilation shaft is expected to be completed in 2023 at a cost of approximately $47 million. In 2022, shaft sinking advanced to a depth of 88 metres.
Slide 14: Q4 2022 Cash Flow Performance
14 Growth, Business Development, and $400 Sustaining Cash Flow Performance Other $350 $300 $103 $4 $250 Millions ($63) $200 $187 ($29) $164 $3 $1 ($21) $142 $150 ($17) ($15) ($10) $100 $50 $0 Cash and STI Adjusted Net other (e.g. Sustaining Net changes Dividends paid Net income Cash and STI Debt Rev
Slide 15: FY 2022 Cash Flow Performance
15 Sustaining Cash Flow Performance Growth, Business Development, and Other $800 $418 $9 $750 $700 $650 $600 $550 $500 ($224) $450 Millions $400 $335 ($138) $350 $300 $263 $9 $3 ($95) $250 ($42) $200 ($71) $142 $150 ($45) $100 ($16) $50 $0 Cash and STI Adjusted Net other Sustaining Net income Divide
Slide 16: Q4 2022 Basic Adjusted Net Loss $0.02/share
16 // Q4 2022 Basic Adjusted Net Loss $0.02/share (1) 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 Q4 2022 MD&A for a detailed description of these measures and where appropriate a
Slide 17: FY 2022 Basic Adjusted Net Earnings $0.09/share
17 FY 2022 Basic Adjusted Net Earnings $0.09/share (1) 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 2022 MD&A for a detailed description of these measures and where appropr
Slide 18: Total Available Liquidity $482.3M
18 Cash & Short-term investments $142.3M TOTAL //Prudent balance sheet management reduces risk, AVAILABLE improves long-term shareholder returns LIQUIDITY $482.3M √ Total debt(2) of $226.8M related to Sustainability-Linked Revolving Revolving Credit Facility, lease liabilities & construction loans $
Slide 19: $1.8B FCF Generated Since 2010 and Cash Flow Priorities
19 8% Share Repurchases 29% Dividends // $1.8B in FCF generated since 2010, returning $665M to shareholders (2) and investing $714M in expansions 24% Debt $1.8B FCF Repayment(3) 2010 – 2022 Cash Flow Priorities 1 Maintain balance sheet flexibility, with low to zero debt 2 Invest in high-return proje
Slide 20: 2023 Sustainability Targets
20 // Preliminary Results ENVIRONMENT SOCIAL • Achieve zero significant environmental incidents (SEIs) at our operations COMMUNITIES • Improve on bi-annual environmental audit performance • Achieve zero new social disputes at our operations • Reduce water use by 1% compared to the 2022 base case(1)
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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/