All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S.
dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless
otherwise noted.
VANCOUVER, British Columbia--(BUSINESS WIRE)-- Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan
American" or the "Company") reports unaudited results for the quarter ended June 30, 2024 ("Q2 2024").
"Operations generated record cash ow before working capital changes of $203.3 million in Q2 2024, with solid
performance on costs, which were below our expected ranges for both the silver and gold segments in the quarter.
This resulted in free cash ow of $102.1 million in Q2 2024," said Michael Steinmann, President and Chief Executive
Ocer. "We completed the new ventilation infrastructure at La Colorada on schedule in early July, and we are now
seeing signicant improvements in the underground working conditions. We expect silver production to increase in
the second half of the year, which will bring annual silver production to within our guidance range based on rst
half 2024 results. We are also on track to meet our annual production outlook for gold, zinc, lead and copper."
The following highlights for Q2 2024 include certain measures that are not generally accepted accounting principles
("non-GAAP") nancial measures. Please refer to the section titled “Alternative Performance (Non-GAAP) Measures”
at the end of this news release for further information on these measures.
Consolidated Q2 2024 Results:
Silver production of 4.57 million ounces was largely impacted by ventilation constraints at La Colorada and
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weather-related disruptions at Dolores and Cerro Moro. The Company expects an increase in silver
production in the second half of 2024 ("H2 2024") following commissioning of the new ventilation
infrastructure at La Colorada and other factors.
Gold production of 220.4 thousand ounces was impacted mostly by weather-related disruptions at Dolores
and Minera Florida. The Company expects increased production in H2 2024 from a back-end loaded
production prole.
Record revenue of $686.3 million.
Net loss of $21.4 million ($0.06 basic loss per share) includes a $93.1 million income tax expense, driven by a
$42.4 million impact from the eect of the devaluation of foreign currency exchange rates on deductible tax
attributes and $10.8 million of tax expense caused by ination adjustments to taxable income in Argentina, as
well as a $26.7 million cost-increasing net realizable value ("NRV") inventory expense.
Adjusted earnings of $40.0 million, or $0.11 adjusted earnings per share, which includes the $10.8 million, or
$0.03 per share, of tax expense related to the above noted ination adjustments in Argentina.
Record cash ow from operations before working capital changes of $203.3 million, net of $31.3 million in
cash taxes paid.
Free cash ow of $102.1 million.
Silver Segment Cash Costs and All-in Sustaining Costs ("AISC"), excluding NRV inventory adjustments, per
silver ounce of $14.49 and $18.12, respectively.
Gold Segment Cash Costs and AISC, excluding NRV inventory adjustments, per gold ounce of $1,186 and
$1,465, respectively.
The Company rearms its 2024 Operating Outlook for production, Cash Costs and AISC, and capital
expenditures, but expects annual silver production to be towards the low end of its annual guidance range.
Cash and short-term investments increased by $37.2 million to $368.6 million. As at June 30, 2024, the
Company had working capital of $692.0 million, inclusive of cash and investments, and $750.0 million
available under its revolving Sustainability-Linked Credit Facility ("SL-Credit Facility"). Total debt of $809.5
million is primarily related to two senior notes, in addition to lease liabilities, construction and other loans
payable.
A cash dividend of $0.10 per common share with respect to Q2 2024 was declared on August 7, 2024, payable
on or about August 30, 2024, to holders of record of Pan American’s common shares as of the close of
markets on August 19, 2024. In Q2 2024, the Company paid cash dividends totaling $36.3 million. The
dividends are eligible dividends for Canadian income tax purposes.
On May 23, 2024, Pan American released its 14th annual Sustainability Report detailing the Company's
approach and performance in the areas of environment, social responsibility and governance.
Q2 2024 Project Updates:
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At La Colorada, Pan American invested $9.8 million on project capital in Q2 2024, largely for exploration and
engineering on the Skarn project, and to complete the new ventilation infrastructure for the operating mine.
In July, the two exhaust fans were installed on the surface of the Guadalupe ventilation shaft. The new
infrastructure was completed within the targeted timeframe of mid-2024, and ventilation conditions in the
mine have been improving. Mining rates are now increasing from the higher-grade Candelaria zone of the
mine. The Company expects throughput rates to increase over H2 2024, rising to approximately 2,000 tonnes
per day by year-end.
At Escobal, we continued our meetings with the Guatemala government institutions during Q2 2024 and into
the third quarter of 2024, to advance the ILO 169 consultation process for Escobal. These institutions include
the Ministries of: Economy, Finance, Environment, and Energy and Mines. During this period, compliance
visits by the Ministry of Energy and Mines and Ministry of Environment under the care and maintenance
program for Escobal also occurred. The appointment of the Vice Minister of Sustainable Development to
assume responsibility of overseeing the consultation process remains pending.
CONSOLIDATED RESULTS
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