Form 20-F | Form 40-F | X |
Exhibit | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
99.4 |
Pan American Silver Corp. | ||||||||
(Registrant) | ||||||||
Date: February 21, 2024 | By: | /s/ “Delaney Fisher” | ||||||
Delaney Fisher | ||||||||
SVP, Associate General Counsel and Corporate Secretary |
PAN AMERICAN SILVER CORP. | 66 |
"signed" | "signed" | |||||||
Michael Steinmann | Ignacio Couturier | |||||||
Chief Executive Officer | Chief Financial Officer |
PAN AMERICAN SILVER CORP. | 67 |
PAN AMERICAN SILVER CORP. | 68 |
PAN AMERICAN SILVER CORP. | 69 |
PAN AMERICAN SILVER CORP. | 70 |
PAN AMERICAN SILVER CORP. | 71 |
PAN AMERICAN SILVER CORP. | 72 |
Consolidated Statements of Financial Position (in millions of U.S. dollars) |
December 31, | December 31, | |||||||
2023 | 2022 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents (Note 28) | $ | 399.6 | $ | 107.0 | ||||
Investments (Note 11) | 41.3 | 35.3 | ||||||
Trade and other receivables | 138.0 | 136.6 | ||||||
Income tax receivables | 62.9 | 40.0 | ||||||
Inventories (Note 12) | 711.6 | 471.6 | ||||||
Other assets (Note 13) | 36.6 | 13.9 | ||||||
1,390.0 | 804.4 | |||||||
Non-current assets | ||||||||
Mineral properties, plant and equipment (Note 14) | 5,675.1 | 2,226.4 | ||||||
Long-term inventories (Note 12) | 27.8 | 26.3 | ||||||
Long-term tax receivables | 14.7 | 8.5 | ||||||
Deferred tax assets (Note 31) | 80.4 | 55.9 | ||||||
Long-term investments (Note 16) | — | 121.2 | ||||||
Other long-term assets (Note 17) | 25.1 | 5.8 | ||||||
Total assets | $ | 7,213.1 | $ | 3,248.5 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities (Note 18) | $ | 498.0 | $ | 308.0 | ||||
Provisions (Note 19) | 41.6 | 17.9 | ||||||
Lease obligations (Note 20) | 45.7 | 13.6 | ||||||
Debt (Note 21) | 6.7 | 13.7 | ||||||
Income tax payables | 32.1 | 25.8 | ||||||
Other liabilities | 0.1 | 1.8 | ||||||
624.2 | 380.8 | |||||||
Non-current liabilities | ||||||||
Long-term provisions (Note 19) | 432.4 | 285.3 | ||||||
Deferred tax liabilities (Note 31) | 541.6 | 140.3 | ||||||
Long-term lease obligations (Note 20) | 52.2 | 19.5 | ||||||
Long-term debt (Note 21) | 697.0 | 180.0 | ||||||
Other long-term liabilities (Note 22) | 93.2 | 41.0 | ||||||
Total liabilities | $ | 2,440.6 | $ | 1,046.9 | ||||
Equity (Note 23) | ||||||||
Issued capital | 5,966.5 | 3,140.0 | ||||||
Share option reserve | 94.0 | 93.3 | ||||||
Investment revaluation reserve | (30.3) | (3.0) | ||||||
Deficit | (1,269.5) | (1,034.8) | ||||||
Total equity attributable to Company shareholders | 4,760.7 | 2,195.5 | ||||||
Non-controlling interests | 11.8 | 6.1 | ||||||
Total equity | 4,772.5 | 2,201.6 | ||||||
Total liabilities and equity | $ | 7,213.1 | $ | 3,248.5 |
"signed" | Gillian Winckler, Director | "signed" | Michael Steinmann, Director |
PAN AMERICAN SILVER CORP. | 73 |
Consolidated Statements of Earnings and Comprehensive Earnings
(in millions of U.S. dollars and thousand of shares)
|
2023 | 2022 | |||||||
Revenue (Note 29) | $ | 2,316.1 | $ | 1,494.7 | ||||
Cost of sales (Note 29) | ||||||||
Production costs (Note 24) | (1,479.2) | (1,094.4) | ||||||
Depreciation and amortization (Note 14) | (484.2) | (316.0) | ||||||
Royalties | (55.9) | (35.9) | ||||||
(2,019.3) | (1,446.3) | |||||||
Mine operating earnings (Note 29) | 296.8 | 48.4 | ||||||
General and administrative | (61.4) | (29.0) | ||||||
Exploration and project development | (14.6) | (18.3) | ||||||
Mine care and maintenance (Note 25) | (82.2) | (45.1) | ||||||
Foreign exchange gains (losses) | 8.9 | (9.6) | ||||||
Impairment charges (Note 15) | (78.6) | (99.1) | ||||||
Derivative gains (Note 10(d)) | 8.3 | 7.3 | ||||||
Mineral properties, plant and equipment gains (losses) (Note 14) | 7.9 | (2.4) | ||||||
(Loss) gains and income from associates (Note 16) | (0.4) | 45.0 | ||||||
Transaction and integration costs (Note 8) | (25.3) | (157.4) | ||||||
Other expense (Note 30) | (21.3) | (2.1) | ||||||
Earnings (loss) from operations | 38.1 | (262.3) | ||||||
Investment loss (Note 10(b)) | (5.5) | (16.2) | ||||||
Interest and finance expense (Note 26) | (91.4) | (22.5) | ||||||
Loss before income taxes | (58.8) | (301.0) | ||||||
Income tax expense (Note 31) | (46.1) | (39.1) | ||||||
Net loss | $ | (104.9) | $ | (340.1) | ||||
Net loss attributable to: | ||||||||
Equity holders of the Company | (103.7) | (341.7) | ||||||
Non-controlling interests | (1.2) | 1.6 | ||||||
$ | (104.9) | $ | (340.1) | |||||
Other comprehensive loss, net of taxes | ||||||||
Items that will not be reclassified to net loss: | ||||||||
Remeasurement of retirement benefit plan | (2.6) | — | ||||||
Unrealized loss on long-term investment (Note 10(c)) | (24.2) | (3.5) | ||||||
Income tax (expense) recovery related to long-term investments (Note 31) | (0.5) | 0.5 | ||||||
Total other comprehensive loss | $ | (27.3) | $ | (3.0) | ||||
Total comprehensive loss | $ | (132.2) | $ | (343.1) | ||||
Total comprehensive loss attributable to: | ||||||||
Equity holders of the Company | (131.0) | (344.7) | ||||||
Non-controlling interests | (1.2) | 1.6 | ||||||
$ | (132.2) | $ | (343.1) | |||||
Loss per share attributable to common shareholders (Note 27) | ||||||||
Basic loss per share | $ | (0.32) | $ | (1.62) | ||||
Diluted loss per share | $ | (0.32) | $ | (1.62) | ||||
Weighted average shares outstanding Basic | 326,540 | 210,521 | ||||||
Weighted average shares outstanding Diluted | 326,540 | 210,521 |
PAN AMERICAN SILVER CORP. | 74 |
Consolidated Statements of Cash Flows
(in millions of U.S. dollars)
|
2023 | 2022 | |||||||
Operating activities | ||||||||
Net loss | $ | (104.9) | $ | (340.1) | ||||
Income tax expense (Note 31) | 46.1 | 39.1 | ||||||
Depreciation and amortization (Note 14) | 484.2 | 316.0 | ||||||
Impairment charges (Note 15) | 78.6 | 99.1 | ||||||
Net realizable value inventory (recovery) charge (Note 24) | (31.8) | 97.7 | ||||||
Loss (gains and income) from associates (Note 16) | 0.4 | (45.0) | ||||||
Accretion on closure and decommissioning provision (Note 19) | 34.2 | 14.8 | ||||||
Investment loss | 5.5 | 16.2 | ||||||
Interest paid | (45.1) | (6.6) | ||||||
Interest expense (Note 26) | 51.4 | 5.3 | ||||||
Interest received | 17.2 | 3.2 | ||||||
Income taxes paid | (149.4) | (137.8) | ||||||
Other operating activities (Note 28) | (5.1) | 11.9 | ||||||
Net change in non-cash working capital items (Note 28) | 68.9 | (42.0) | ||||||
$ | 450.2 | $ | 31.8 | |||||
Investing activities | ||||||||
Payments for mineral properties, plant and equipment | $ | (379.0) | $ | (274.7) | ||||
Cash acquired from Yamana Gold Inc. (Note 8) | 259.5 | — | ||||||
Cash disposed in sale of subsidiaries (Note 9) | (194.1) | — | ||||||
Cash proceeds from sale of subsidiaries (Note 9) | 549.1 | — | ||||||
Proceeds from disposition of mineral properties, plant and equipment | 3.8 | 8.7 | ||||||
Proceeds from disposal of investments | 144.8 | 0.7 | ||||||
Net proceeds from derivatives | 13.8 | 9.9 | ||||||
$ | 397.9 | $ | (255.4) | |||||
Financing activities | ||||||||
Proceeds from common shares issued | $ | — | $ | 0.9 | ||||
Distributions to non-controlling interests | 11.1 | (0.3) | ||||||
Dividends paid | (130.4) | (94.7) | ||||||
Proceeds from debt (Note 21) | 315.0 | 167.1 | ||||||
Repayment of debt (Note 21) | (703.5) | (5.2) | ||||||
Payment of equipment leases | (44.0) | (14.8) | ||||||
$ | (551.8) | $ | 53.0 | |||||
Effects of exchange rate changes on cash and cash equivalents | (3.7) | (6.0) | ||||||
Increase (decrease) in cash and cash equivalents | 292.6 | (176.6) | ||||||
Cash and cash equivalents at the beginning of the year | 107.0 | 283.6 | ||||||
Cash and cash equivalents at the end of the year | $ | 399.6 | $ | 107.0 |
PAN AMERICAN SILVER CORP. | 75 |
Consolidated Statements of Changes in Equity
(in millions of U.S. dollars and thousands of shares)
|
Attributable to equity holders of the Company | ||||||||||||||||||||||||||
Issued shares |
Issued capital |
Share option reserve | Investment revaluation reserve |
Deficit | Total | Non- controlling interests |
Total equity |
|||||||||||||||||||
Balance, December 31, 2021 | 210,458 | $ | 3,136.2 | $ | 93.4 | $ | — | $ | (598.0) | $ | 2,631.6 | $ | 4.5 | $ | 2,636.1 | |||||||||||
Total comprehensive loss | ||||||||||||||||||||||||||
Net loss for the year | — | — | — | — | (341.7) | (341.7) | 1.6 | (340.1) | ||||||||||||||||||
Other comprehensive loss | — | — | — | (3.0) | — | (3.0) | — | (3.0) | ||||||||||||||||||
— | — | — | (3.0) | (341.7) | (344.7) | 1.6 | (343.1) | |||||||||||||||||||
Shares issued on the exercise of stock options | 79 | 1.3 | (0.3) | — | — | 1.0 | — | 1.0 | ||||||||||||||||||
Shares issued as compensation | 144 | 2.5 | — | — | — | 2.5 | — | 2.5 | ||||||||||||||||||
Share-based compensation on option grants | — | — | 0.2 | — | — | 0.2 | — | 0.2 | ||||||||||||||||||
Distributions by subsidiaries to non-controlling interests | — | — | — | — | (0.4) | (0.4) | — | (0.4) | ||||||||||||||||||
Dividends paid | — | — | — | — | (94.7) | (94.7) | — | (94.7) | ||||||||||||||||||
Balance, December 31, 2022 | 210,681 | $ | 3,140.0 | $ | 93.3 | $ | (3.0) | $ | (1,034.8) | $ | 2,195.5 | $ | 6.1 | $ | 2,201.6 | |||||||||||
Total comprehensive loss | ||||||||||||||||||||||||||
Net loss for the period | — | — | — | — | (103.7) | (103.7) | (1.2) | (104.9) | ||||||||||||||||||
Other comprehensive loss | — | — | — | (27.3) | — | (27.3) | — | (27.3) | ||||||||||||||||||
— | — | — | (27.3) | (103.7) | (131.0) | (1.2) | (132.2) | |||||||||||||||||||
Shares issued as compensation | 221 | 3.5 | — | — | — | 3.5 | — | 3.5 | ||||||||||||||||||
The Acquisition (Note 8) | 153,758 | 2,823.0 | — | — | — | 2,823.0 | 484.9 | 3,307.9 | ||||||||||||||||||
Dispositions (Note 9) | — | — | — | — | — | — | (489.7) | (489.7) | ||||||||||||||||||
Share-based compensation on option grants | — | — | 0.7 | — | — | 0.7 | — | 0.7 | ||||||||||||||||||
Distributions by subsidiaries to non-controlling interests | — | — | — | — | (0.6) | (0.6) | 11.7 | 11.1 | ||||||||||||||||||
Dividends paid | — | — | — | — | (130.4) | (130.4) | — | (130.4) | ||||||||||||||||||
Balance, December 31, 2023 | 364,660 | $ | 5,966.5 | $ | 94.0 | $ | (30.3) | $ | (1,269.5) | $ | 4,760.7 | $ | 11.8 | $ | 4,772.5 |
PAN AMERICAN SILVER CORP. | 76 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 77 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
Location | Subsidiary | Ownership Interest |
Operations and Development Projects Owned |
||||||||
Brazil | Jacobina Mineração e Comércio Ltda. | 100% | Jacobina mine (1) |
||||||||
Canada | Lake Shore Gold Corp. | 100% | Bell Creek and Timmins West mines (together "Timmins mine") | ||||||||
Chile | Minera Meridian Ltda. | 100% | El Peñon mine (1) |
||||||||
Minera Florida Ltda |
100% | Minera Florida mine (1) |
|||||||||
Minera Cavancha SpA. |
80% | La Pepa project (1) |
|||||||||
Mexico | Plata Panamericana S.A. de C.V. | 100% | La Colorada mine | ||||||||
Compañía Minera Dolores S.A. de C.V. | 100% | Dolores mine | |||||||||
Peru | Pan American Silver Huaron S.A. | 100% | Huaron mine | ||||||||
Shahuindo S.A.C. | 100% | Shahuindo mine | |||||||||
La Arena S.A. | 100% | La Arena mine | |||||||||
Bolivia | Pan American Silver (Bolivia) S.A. | 95% | San Vicente mine | ||||||||
Guatemala | Pan American Silver Guatemala S.A. | 100% | Escobal mine | ||||||||
Argentina | Minera Tritón Argentina S.A. | 100% | Manantial Espejo & Cap-Oeste Sur Este mines | ||||||||
Estelar Resources S.A. |
100% | Cerro Moro mine (1) |
|||||||||
Minera Joaquin S.R.L. | 100% | Joaquin mine | |||||||||
Minera Argenta S.A. | 100% | Navidad project |
PAN AMERICAN SILVER CORP. | 78 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 79 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 80 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 81 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 82 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 83 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 84 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 85 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 86 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 87 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 88 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 89 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 90 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 91 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 92 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
Nature of consideration |
Shares
(in millions)
|
Consideration | ||||||
Pan American Shares (1) |
153.8 | $ | 2,823.0 |
Preliminary as reported on March 31, 2023 |
Adjustments |
Final as reported on December 31, 2023 |
|||||||||
Assets acquired |
|||||||||||
Cash and cash equivalents | $ | 259.5 | $ | — | $ | 259.5 | |||||
Investments | 59.5 | — | 59.5 | ||||||||
Accounts receivable (1) |
20.4 | — | 20.4 | ||||||||
Income tax receivables | 19.4 | — | 19.4 | ||||||||
Value added tax receivables |
54.0 | — | 54.0 | ||||||||
Inventories |
242.0 | 5.5 | 247.5 | ||||||||
Mineral properties, plant and equipment | 5,273.2 | (218.8) | 5,054.4 | ||||||||
Other assets | 59.4 | — | 59.4 | ||||||||
Liabilities assumed |
|||||||||||
Accounts payable |
(215.2) | (0.1) | (215.3) | ||||||||
Income tax payables |
(34.8) | 12.4 | (22.4) | ||||||||
Provision for closure and decommissioning liabilities |
(238.7) | (5.3) | (244.0) | ||||||||
Litigation provisions |
(34.6) | — | (34.6) | ||||||||
Lease obligations |
(65.9) | (15.5) | (81.4) | ||||||||
Debt (2) |
(943.1) | 15.5 | (927.6) | ||||||||
Other long-term liabilities |
(59.7) | — | (59.7) | ||||||||
Deferred taxes |
(1,083.2) | 202.0 | (881.2) | ||||||||
Net assets acquired |
3,312.2 | (4.3) | 3,307.9 | ||||||||
Non-controlling interests (3) |
(489.2) | 4.3 | (484.9) | ||||||||
Net assets attributable to Pan American |
$ | 2,823.0 | $ | — | $ | 2,823.0 | |||||
Year ended December 31, 2023 | ||||||||
2023 | 2022 | |||||||
Transaction related costs | $ | 20.7 | $ | 157.4 | ||||
Integration related costs | 4.6 | — | ||||||
$ | 25.3 | $ | 157.4 |
PAN AMERICAN SILVER CORP. | 93 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
MARA | Morococha | ADLF | Total | |||||||||||
Cash proceeds (1) |
$ | 475.0 | $ | 28.6 | $ | 45.5 | $ | 549.1 | ||||||
Net smelter return royalty | 90.0 | — | 11.1 | 101.1 | ||||||||||
Net proceeds | 565.0 | 28.6 | 56.6 | 650.2 | ||||||||||
Cash and cash equivalents | 188.4 | 5.6 | 0.1 | 194.1 | ||||||||||
Other current assets | 9.1 | 4.8 | 0.1 | 14.0 | ||||||||||
Mineral properties, plant and equipment | 1,400.5 | 35.8 | 142.2 | 1,578.5 | ||||||||||
Other non-current assets | 3.1 | 0.8 | — | 3.9 | ||||||||||
Current liabilities | (27.0) | (11.6) | (0.4) | (39.0) | ||||||||||
Provisions | (133.2) | (11.2) | (3.7) | (148.1) | ||||||||||
Deferred tax liabilities | (380.4) | (0.1) | (38.8) | (419.3) | ||||||||||
Long-term debt | (31.5) | — | — | (31.5) | ||||||||||
Other long-term liabilities | (19.3) | (0.1) | — | (19.4) | ||||||||||
Net carrying amount | 1,009.7 | 24.0 | 99.5 | 1,133.2 | ||||||||||
Non-controlling interest | (444.7) | (2.1) | (42.9) | (489.7) | ||||||||||
Net assets attributable to Pan American | 565.0 | 21.9 | 56.6 | 643.5 | ||||||||||
Less: net proceeds | 565.0 | 28.6 | 56.6 | 650.2 | ||||||||||
Gain on sale | $ | — | $ | 6.7 | $ | — | $ | 6.7 |
PAN AMERICAN SILVER CORP. | 94 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
December 31, 2023 | Amortized cost | FVTPL | FVTOCI | Total | ||||||||||
Financial Assets: | ||||||||||||||
Cash and cash equivalents | $ | 399.6 | $ | — | $ | — | $ | 399.6 | ||||||
Trade receivables from provisional concentrates sales (1) |
— | 17.5 | — | 17.5 | ||||||||||
Receivable not arising from sale of metal concentrates (1) |
110.1 | — | — | 110.1 | ||||||||||
Investments | — | 38.1 | 3.2 | 41.3 | ||||||||||
Derivative assets (2) |
— | 6.9 | — | 6.9 | ||||||||||
$ | 509.7 | $ | 62.5 | $ | 3.2 | $ | 575.4 | |||||||
Financial Liabilities: | ||||||||||||||
Derivative liabilities (2) |
$ | — | $ | 0.1 | $ | — | $ | 0.1 | ||||||
Debt | $ | 703.7 | $ | — | $ | — | $ | 703.7 |
December 31, 2022 | Amortized cost | FVTPL | FVTOCI | Total | ||||||||||
Financial Assets: | ||||||||||||||
Cash and cash equivalents | $ | 107.0 | $ | — | $ | — | $ | 107.0 | ||||||
Trade receivables from provisional concentrates sales (1) |
— | 28.7 | — | 28.7 | ||||||||||
Receivable not arising from sale of metal concentrates (1) |
99.0 | — | — | 99.0 | ||||||||||
Investments | — | 35.3 | — | 35.3 | ||||||||||
Long-term investment (Note 16) | — | — | 121.2 | 121.2 | ||||||||||
Derivative assets (2) |
— | 2.9 | — | 2.9 | ||||||||||
$ | 206.0 | $ | 66.9 | $ | 121.2 | $ | 394.1 | |||||||
Financial Liabilities: | ||||||||||||||
Derivative liabilities (2) |
$ | — | $ | 1.8 | $ | — | $ | 1.8 | ||||||
Debt | $ | 193.7 | $ | — | $ | — | $ | 193.7 |
2023 | 2022 | |||||||
Unrealized losses on investments | $ | (6.5) | $ | (16.6) | ||||
Realized gains on investments | 1.0 | 0.4 | ||||||
$ | (5.5) | $ | (16.2) |
2023 | 2022 | |||||||
Unrealized losses on investments | $ | (5.4) | $ | (3.5) | ||||
Realized losses on investments (1) |
(18.8) | — | ||||||
$ | (24.2) | $ | (3.5) |
PAN AMERICAN SILVER CORP. | 95 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
2023 | 2022 | |||||||
Realized gains on derivatives | $ | 13.8 | $ | 9.9 | ||||
Unrealized losses on derivatives | (5.5) | (2.6) | ||||||
$ | 8.3 | $ | 7.3 |
At December 31, 2023 | At December 31, 2022 | |||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||
Assets and Liabilities: | ||||||||||||||
Investments (Note 11) | $ | 41.3 | $ | — | $ | 35.3 | $ | — | ||||||
Long-term investment (Note 16) | — | — | 121.2 | — | ||||||||||
Trade receivables from provisional concentrate sales | — | 17.5 | — | 28.7 | ||||||||||
Derivative assets (1) |
— | 6.9 | — | 2.9 | ||||||||||
Derivative liabilities (1) |
— | (0.1) | — | (1.8) | ||||||||||
$ | 41.3 | $ | 24.3 | $ | 156.5 | $ | 29.8 |
PAN AMERICAN SILVER CORP. | 96 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 97 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
December 31, 2023 |
December 31, 2022 |
|||||||
Cash and cash equivalents | $ | 399.6 | $ | 107.0 | ||||
Trade accounts receivable (1) |
17.5 | 28.7 | ||||||
Supplier advances (1) |
10.4 | 8.9 | ||||||
Employee loans (1) |
— | 0.3 |
PAN AMERICAN SILVER CORP. | 98 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
Payments due by period December 31, 2023 | |||||||||||||||||
Within 1 year | 2 - 3 years | 4- 5 years |
After 5
years
|
Total | |||||||||||||
Accounts payable and accrued liabilities other than: | $ | 491.0 | $ | — | $ | — | $ | — | $ | 491.0 | |||||||
Severance liabilities | 2.1 | 17.2 | 9.0 | 32.2 | 60.5 | ||||||||||||
Payroll liabilities | 4.9 | — | — | — | 4.9 | ||||||||||||
Total accounts payable and accrued liabilities | 498.0 | 17.2 | 9.0 | 32.2 | 556.4 | ||||||||||||
Income tax payables | 32.1 | — | — | — | 32.1 | ||||||||||||
Debt | |||||||||||||||||
Repayment of principal | 6.7 | 11.9 | 275.3 | 409.8 | 703.7 | ||||||||||||
Interest and standby fees | 29.1 | 57.6 | 43.4 | 34.5 | 164.6 | ||||||||||||
Provisions (1)(2) |
4.0 | 14.0 | 1.2 | 7.7 | 26.9 | ||||||||||||
Future payroll liabilities | 2.5 | 17.0 | — | 1.8 | 21.3 | ||||||||||||
Total contractual obligations (2) |
$ | 572.4 | $ | 117.7 | $ | 328.9 | $ | 486.0 | $ | 1,505.0 |
Payments due by period December 31, 2022 | |||||||||||||||||
Within 1 year | 2 - 3 years | 4- 5 years |
After 5
years
|
Total | |||||||||||||
Accounts payable and accrued liabilities other than: | $ | 291.4 | $ | — | $ | — | $ | — | $ | 291.4 | |||||||
Severance liabilities | 13.9 | 1.0 | 0.6 | 4.5 | 20.0 | ||||||||||||
Payroll liabilities | 2.8 | — | — | — | 2.8 | ||||||||||||
Total accounts payable and accrued liabilities | 308.1 | 1.0 | 0.6 | 4.5 | 314.2 | ||||||||||||
Income tax payables | 25.8 | — | — | — | 25.8 | ||||||||||||
Other liabilities | 1.8 | — | — | — | 1.8 | ||||||||||||
Debt | |||||||||||||||||
Repayment of principal | 13.7 | 173.4 | 6.6 | — | 193.7 | ||||||||||||
Interest and standby fees | 11.2 | 17.7 | 0.1 | — | 29.0 | ||||||||||||
Provisions (1)(2) |
3.4 | 2.4 | — | 1.1 | 6.9 | ||||||||||||
Future payroll liabilities | 2.5 | 8.7 | — | — | 11.2 | ||||||||||||
Total contractual obligations (2) |
$ | 366.5 | $ | 203.2 | $ | 7.3 | $ | 5.6 | $ | 582.6 |
PAN AMERICAN SILVER CORP. | 99 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
At December 31, 2023 | Cash and investments | Other current and non-current assets |
Income taxes receivable (payable), current and non- current |
Accounts payable and accrued liabilities and non- current liabilities |
Deferred tax assets and liabilities |
||||||||||||
Canadian dollar | $ | 47.6 | $ | 4.6 | $ | 8.0 | $ | (56.1) | $ | 12.0 | |||||||
Mexican peso | 3.2 | 14.3 | 11.4 | (54.0) | 33.9 | ||||||||||||
Argentine peso | 0.4 | 21.5 | — | (79.0) | (12.1) | ||||||||||||
Bolivian boliviano | 9.2 | 8.0 | (7.0) | (7.6) | (3.8) | ||||||||||||
European euro | 0.1 | — | (2.2) | (0.1) | — | ||||||||||||
Peruvian sol | 6.1 | 22.0 | 5.1 | (87.2) | (68.1) | ||||||||||||
Guatemala quetzal | 0.2 | 0.1 | (0.1) | (9.6) | — | ||||||||||||
Chilean peso | 1.2 | 7.2 | 18.5 | (75.9) | (89.8) | ||||||||||||
Brazilian real | 0.4 | 5.6 | (5.4) | (39.3) | (333.3) | ||||||||||||
$ | 68.4 | $ | 83.3 | $ | 28.3 | $ | (408.8) | $ | (461.2) |
At December 31, 2022 | Cash and investments | Other current and non-current assets |
Income taxes receivable (payable), current and non- current |
Accounts payable and accrued liabilities and non- current liabilities |
Deferred tax assets and liabilities |
||||||||||||
Canadian dollar | $ | 41.0 | $ | 2.7 | $ | — | $ | (42.2) | $ | 24.0 | |||||||
Mexican peso | 3.1 | 32.6 | 12.7 | (43.0) | (16.3) | ||||||||||||
Argentine peso | 9.3 | 9.3 | 0.9 | (33.5) | — | ||||||||||||
Bolivian boliviano | 4.8 | 6.6 | (5.2) | (8.7) | (4.5) | ||||||||||||
European euro | — | — | — | — | — | ||||||||||||
Peruvian sol | 3.2 | 20.2 | (0.5) | (28.9) | (87.7) | ||||||||||||
Guatemala quetzal | 0.1 | 0.1 | (0.1) | (7.3) | — | ||||||||||||
$ | 61.5 | $ | 71.5 | $ | 7.8 | $ | (163.6) | $ | (84.5) |
2023 | 2022 | |||||||
Mexican peso gains | $ | 2.5 | $ | 1.5 | ||||
Peruvian sol gains | 2.9 | 3.5 | ||||||
Canadian dollar gains (losses) | 4.1 | (3.0) | ||||||
Chilean peso losses | (3.0) | — | ||||||
Brazilian real gains | 1.2 | — | ||||||
$ | 7.7 | $ | 2.0 |
PAN AMERICAN SILVER CORP. | 100 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
2023 | 2022 | |||||||
Zinc gains | $ | — | $ | 1.7 | ||||
Diesel gains | — | 4.5 | ||||||
Other | 0.6 | (0.9) | ||||||
$ | 0.6 | $ | 5.3 |
PAN AMERICAN SILVER CORP. | 101 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
December 31, 2023 | December 31, 2022 | |||||||||||||||||||
Fair
Value
|
Cost |
Accumulated
unrealized
holding gains
|
Fair Value | Cost |
Accumulated
unrealized
holding gains
|
|||||||||||||||
Investments | $ | 41.3 | $ | 37.3 | $ | 4.0 | $ | 35.3 | $ | 20.8 | $ | 14.5 |
December 31, 2023 |
December 31, 2022 |
|||||||
Concentrate inventory | $ | 21.3 | $ | 31.3 | ||||
Stockpile ore | 67.2 | 31.3 | ||||||
Heap leach inventory and in process | 338.6 | 258.8 | ||||||
Doré and finished inventory | 121.1 | 86.8 | ||||||
Materials and supplies | 191.2 | 89.7 | ||||||
Total inventories | 739.4 | 497.9 | ||||||
Less: current portion of inventories | (711.6) | (471.6) | ||||||
Non-current portion inventories(1) |
$ | 27.8 | $ | 26.3 |
December 31, 2023 |
December 31, 2022 |
|||||||
Insurance prepaids | $ | 7.4 | $ | 5.3 | ||||
Other prepaids | 22.3 | 5.7 | ||||||
Derivative assets | 6.9 | 2.9 | ||||||
$ | 36.6 | $ | 13.9 |
PAN AMERICAN SILVER CORP. | 102 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
Mining Properties | |||||||||||||||||
Depletable | Non-depletable | ||||||||||||||||
Reserves and Resources |
Reserves and Resources |
Exploration and Evaluation |
Plant and Equipment |
Total | |||||||||||||
Carrying value | |||||||||||||||||
As at January 1, 2023 | |||||||||||||||||
Net of accumulated depreciation | $ | 962.7 | $ | 442.2 | $ | 428.5 | $ | 393.0 | $ | 2,226.4 | |||||||
Additions | 315.5 | 21.0 | 25.2 | 71.5 | 433.2 | ||||||||||||
Yamana acquisition (Note 8) | 1,474.1 | 2,667.8 | 205.4 | 707.1 | 5,054.4 | ||||||||||||
Net smelter return royalties acquired (Note 9) | — | — | 101.1 | — | 101.1 | ||||||||||||
Disposals | (1.4) | — | (0.1) | (6.5) | (8.0) | ||||||||||||
Disposition of subsidiaries (Note 9) | — | (1,436.4) | (142.1) | — | (1,578.5) | ||||||||||||
Depreciation and amortization (1) |
(297.2) | (1.8) | — | (187.0) | (486.0) | ||||||||||||
Depreciation charge captured in inventory | (0.2) | — | — | — | (0.2) | ||||||||||||
Impairment charge (Note 15) | 10.3 | (42.4) | — | (46.5) | (78.6) | ||||||||||||
Transfers | (62.6) | (18.3) | 14.2 | 66.7 | — | ||||||||||||
Closure and decommissioning – changes in estimate (Note 19) | 11.3 | — | — | — | 11.3 | ||||||||||||
As at December 31, 2023 | $ | 2,412.5 | $ | 1,632.1 | $ | 632.2 | $ | 998.3 | $ | 5,675.1 | |||||||
Cost as at December 31, 2023 | $ | 4,348.5 | $ | 2,531.4 | $ | 687.1 | $ | 2,052.6 | $ | 9,619.6 | |||||||
Accumulated depreciation and impairments | (1,936.0) | (899.3) | (54.9) | (1,054.3) | (3,944.5) | ||||||||||||
Carrying value – December 31, 2023 | $ | 2,412.5 | $ | 1,632.1 | $ | 632.2 | $ | 998.3 | $ | 5,675.1 |
Mining Properties | |||||||||||||||||
Depletable | Non-depletable | ||||||||||||||||
Reserves and Resources |
Reserves and Resources |
Exploration and Evaluation |
Plant and Equipment |
Total | |||||||||||||
Carrying value | |||||||||||||||||
As at January 1, 2022 | |||||||||||||||||
Net of accumulated depreciation | $ | 1,115.9 | $ | 327.4 | $ | 426.5 | $ | 474.7 | $ | 2,344.5 | |||||||
Additions | 237.3 | 42.8 | — | 20.5 | 300.6 | ||||||||||||
Disposals | (11.3) | — | — | (5.8) | (17.1) | ||||||||||||
Depreciation and amortization (1) |
(201.3) | (6.4) | — | (113.3) | (321.0) | ||||||||||||
Depreciation charge captured in inventory | (19.5) | — | — | — | (19.5) | ||||||||||||
Impairment charge (Note 15) | (73.7) | (0.5) | — | (24.9) | (99.1) | ||||||||||||
Transfers | (122.7) | 78.9 | 2.0 | 41.8 | — | ||||||||||||
Closure and decommissioning – changes in estimate (Note 19) | 38.0 | — | — | — | 38.0 | ||||||||||||
As at December 31, 2022 | $ | 962.7 | $ | 442.2 | $ | 428.5 | $ | 393.0 | $ | 2,226.4 | |||||||
Cost as at December 31, 2022 | $ | 3,123.6 | $ | 617.4 | $ | 841.3 | $ | 1,281.4 | $ | 5,863.7 | |||||||
Accumulated depreciation and impairments | (2,160.9) | (175.2) | (412.8) | (888.4) | (3,637.3) | ||||||||||||
Carrying value – December 31, 2022 | $ | 962.7 | $ | 442.2 | $ | 428.5 | $ | 393.0 | $ | 2,226.4 |
PAN AMERICAN SILVER CORP. | 103 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
December 31, 2023 | December 31, 2022 | ||||||||||||||||||||||
Cost | Accumulated Depreciation and Impairment |
Carrying Value |
Cost | Accumulated Depreciation and Impairment |
Carrying Value |
||||||||||||||||||
Producing: | |||||||||||||||||||||||
Brazil | Jacobina(2) |
$ | 1,539.1 | $ | (85.5) | $ | 1,453.6 | $ | — | $ | — | $ | — | ||||||||||
Chile | El Peñon(2) |
477.7 | (56.7) | 421.0 | — | — | — | ||||||||||||||||
Minera Florida(2) |
167.6 | (15.9) | 151.7 | — | — | — | |||||||||||||||||
Peru | Huaron | 261.6 | (146.1) | 115.5 | 231.3 | (143.2) | 88.1 | ||||||||||||||||
Shahuindo | 690.6 | (265.7) | 424.9 | 636.5 | (179.4) | 457.1 | |||||||||||||||||
La Arena | 307.9 | (178.8) | 129.1 | 286.2 | (143.0) | 143.2 | |||||||||||||||||
Mexico | La Colorada | 443.4 | (224.8) | 218.6 | 403.7 | (205.1) | 198.6 | ||||||||||||||||
Dolores | 1,777.5 | (1,680.7) | 96.8 | 1,783.7 | (1,586.4) | 197.3 | |||||||||||||||||
Argentina | Cerro Moro(2) |
142.5 | (22.9) | 119.6 | — | — | — | ||||||||||||||||
Bolivia | San Vicente | 160.7 | (127.8) | 32.9 | 156.3 | (119.3) | 37.0 | ||||||||||||||||
Canada | Timmins | 400.7 | (165.8) | 234.9 | 359.4 | (133.1) | 226.3 | ||||||||||||||||
Other | 31.9 | (19.6) | 12.3 | 29.6 | (21.4) | 8.2 | |||||||||||||||||
$ | 6,401.2 | $ | (2,990.3) | $ | 3,410.9 | $ | 3,886.7 | $ | (2,530.9) | $ | 1,355.8 | ||||||||||||
Non-Producing/Depletable: | |||||||||||||||||||||||
Land | $ | 14.4 | $ | (1.0) | $ | 13.4 | $ | 6.9 | $ | (1.0) | $ | 5.9 | |||||||||||
Brazil | Jacobina(2) |
982.6 | — | 982.6 | — | — | — | ||||||||||||||||
Chile | El Peñon(2) |
227.7 | — | 227.7 | — | — | — | ||||||||||||||||
Minera Florida(2) |
28.9 | — | 28.9 | — | — | — | |||||||||||||||||
Jeronimo (2) (3) |
— | — | — | — | — | — | |||||||||||||||||
Le Pepa(2) |
49.7 | — | 49.7 | — | — | — | |||||||||||||||||
Peru | La Arena | 117.0 | — | 117.0 | 117.0 | — | 117.0 | ||||||||||||||||
Morococha | — | — | — | 238.8 | (158.1) | 80.7 | |||||||||||||||||
Mexico | Minefinders | 77.2 | (37.5) | 39.7 | 77.2 | (37.5) | 39.7 | ||||||||||||||||
La Colorada | 119.1 | 119.1 | 94.7 | — | 94.7 | ||||||||||||||||||
Argentina | Manantial Espejo(1) |
518.4 | (518.4) | — | 518.4 | (518.4) | — | ||||||||||||||||
Navidad | 566.6 | (376.2) | 190.4 | 566.6 | (376.1) | 190.5 | |||||||||||||||||
Guatemala | Escobal | 257.2 | (3.8) | 253.4 | 260.4 | (3.1) | 257.3 | ||||||||||||||||
Canada | Timmins | 62.9 | — | 62.9 | 63.0 | — | 63.0 | ||||||||||||||||
Other(3) |
196.8 | (17.4) | 179.4 | 34.0 | (12.2) | 21.8 | |||||||||||||||||
$ | 3,218.5 | $ | (954.3) | $ | 2,264.2 | $ | 1,977.0 | $ | (1,106.4) | $ | 870.6 | ||||||||||||
Total | $ | 9,619.7 | $ | (3,944.6) | $ | 5,675.1 | $ | 5,863.7 | $ | (3,637.3) | $ | 2,226.4 |
2023 | 2022 | |||||||
Shahuindo | $ | 36.2 | $ | — | ||||
Morococha | 42.4 | — | ||||||
Dolores | — | 99.1 | ||||||
$ | 78.6 | $ | 99.1 |
PAN AMERICAN SILVER CORP. | 104 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
At June 30, 2022 | ||||||||
2022-2025 Average |
2026 and long-term |
|||||||
Gold (per ounce) | $ | 1,802 | $ | 1,651 | ||||
Silver (per ounce) | 23.56 | 21.77 | ||||||
PAN AMERICAN SILVER CORP. | 105 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
FVTOCI | Investment in Associate | ||||||||||
Investment in Maverix | Maverix | Maverix | Total | ||||||||
At December 31, 2021 | $ | — | $ | 77.4 | $ | 77.4 | |||||
Equity pick-up from equity investees | — | 0.4 | 0.4 | ||||||||
Dividends received | — | (0.3) | (0.3) | ||||||||
Loss of significant influence | 124.7 | (77.5) | 47.2 | ||||||||
Investment revaluation reserve fair value adjustment | (3.5) | — | (3.5) | ||||||||
At December 31, 2022 | $ | 121.2 | $ | — | $ | 121.2 | |||||
Investment revaluation reserve fair value adjustment | 3.5 | — | 3.5 | ||||||||
Maverix shares returned | (124.7) | — | (124.7) | ||||||||
Triple Flag shares received | 53.0 | — | 53.0 | ||||||||
Disposal of Triple Flag shares | (53.0) | — | (53.0) | ||||||||
At December 31, 2023 | $ | — | $ | — | $ | — | |||||
PAN AMERICAN SILVER CORP. | 106 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
December 31, 2023 |
December 31, 2022 |
|||||||
Escrow funds | $ | 9.9 | $ | — | ||||
Long-term prepaids | 9.0 | — | ||||||
Other | 6.2 | 5.8 | ||||||
$ | 25.1 | $ | 5.8 |
December 31, 2023 |
December 31, 2022 |
|||||||
Trade accounts payable(1) |
$ | 198.2 | $ | 88.8 | ||||
Royalty payables | 30.1 | 20.9 | ||||||
Other accounts payable and accrued liabilities | 144.2 | 111.2 | ||||||
Payroll and severance liabilities | 85.0 | 66.6 | ||||||
Value added tax liabilities | 9.6 | 8.5 | ||||||
Other tax payables | 30.9 | 12.0 | ||||||
$ | 498.0 | $ | 308.0 |
2023 | 2022 | |||||||
Reclamation obligations, opening balance | $ | 296.2 | $ | 242.9 | ||||
Reclamation obligations from the Acquisition (Note 8) | 244.0 | — | ||||||
Dispositions (Note 9) | (129.9) | — | ||||||
Revisions in estimates and obligations | 29.9 | 42.7 | ||||||
Expenditures | (27.3) | (4.2) | ||||||
Accretion expense (Note 26) | 34.2 | 14.8 | ||||||
Reclamation obligations, closing balance | $ | 447.1 | $ | 296.2 | ||||
Litigation | 10.5 | 7.0 | ||||||
Litigation from the Acquisition (1) |
34.6 | $ | — | |||||
Dispositions (Note 9) | (18.2) | $ | — | |||||
Total provisions | $ | 474.0 | $ | 303.2 |
Maturity analysis of total provisions: | December 31, 2023 |
December 31, 2022 |
||||||
Current | $ | 41.6 | $ | 17.9 | ||||
Non-current | 432.4 | 285.3 | ||||||
$ | 474.0 | $ | 303.2 |
PAN AMERICAN SILVER CORP. | 107 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
December 31, 2023 |
December 31, 2022 |
|||||||
Opening net book value | $ | 30.3 | $ | 29.5 | ||||
Additions | 36.8 | 19.0 | ||||||
ROU assets from the Acquisition (Note 8) | 77.0 | — | ||||||
Depreciation | (39.2) | (15.0) | ||||||
Dispositions (Note 9) | (9.0) | — | ||||||
Other | 4.7 | (3.2) | ||||||
Closing net book value | $ | 100.6 | $ | 30.3 |
December 31, 2023 |
December 31, 2022 |
|||||||
Within one year | $ | 50.7 | $ | 14.1 | ||||
Between one and five years | 53.1 | 17.6 | ||||||
Beyond five years | 12.0 | 14.4 | ||||||
Total undiscounted lease obligations | 115.8 | 46.1 | ||||||
Less future interest charges | (17.9) | (13.0) | ||||||
Total discounted lease obligations | 97.9 | 33.1 | ||||||
Less: current portion of lease obligations | (45.7) | (13.6) | ||||||
Non-current portion of lease obligations | $ | 52.2 | $ | 19.5 |
PAN AMERICAN SILVER CORP. | 108 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
December 31, 2022 | Proceeds | Repayments | Interest | Other (2) |
Acquisition (Note 8) (1) |
Disposition (Note 9) | December 31, 2023 | |||||||||||||||||||
Senior note maturing December 2027 | $ | — | $ | — | $ | — | $ | 1.5 | $ | — | $ | 272.3 | $ | — | $ | 273.8 | ||||||||||
Senior note maturing August 2031 | — | — | — | 6.9 | — | 402.9 | — | 409.8 | ||||||||||||||||||
SL-Credit Facility | 160.0 | 315.0 | (475.0) | — | — | — | — | — | ||||||||||||||||||
Other loans (1) |
33.7 | — | (228.5) | 1.0 | (7.0) | 252.4 | (31.5) | 20.1 | ||||||||||||||||||
Less: current portion | $ | (13.7) | $ | (6.7) | ||||||||||||||||||||||
Non-current | $ | 180.0 | $ | 315.0 | $ | (703.5) | $ | 9.4 | $ | (7.0) | $ | 927.6 | $ | (31.5) | $ | 697.0 |
December 31, 2021 | Proceeds | Advances | Repayments | December 31, 2022 | |||||||||||||
SL-Credit Facility | $ | — | $ | 160.0 | $ | — | $ | — | $ | 160.0 | |||||||
Other | 15.3 | 7.1 | 16.5 | (5.2) | 33.7 | ||||||||||||
Less: current portion | $ | (3.4) | $ | (13.7) | |||||||||||||
Non-current | $ | 11.9 | $ | 167.1 | $ | 16.5 | $ | (5.2) | $ | 180.0 |
PAN AMERICAN SILVER CORP. | 109 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
December 31, 2023 |
December 31, 2022 |
|||||||
Deferred credit (1) |
$ | 21.6 | $ | 20.8 | ||||
Deferred revenue (2) |
13.1 | 13.9 | ||||||
Severance liabilities (3) |
58.5 | 6.3 | ||||||
$ | 93.2 | $ | 41.0 |
PAN AMERICAN SILVER CORP. | 110 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
Stock Options Outstanding | ||||||||
Shares |
Weighted Average Exercise Price CAD$ |
|||||||
As at December 31, 2021 | 279.0 | $ | 21.38 | |||||
Granted | 191.6 | 22.95 | ||||||
Exercised | (79.5) | 15.12 | ||||||
Expired | (4.3) | 41.62 | ||||||
Forfeited | (9.8) | 31.32 | ||||||
As at December 31, 2022 | 377.0 | $ | 23.01 | |||||
Granted | 167.1 | 21.18 | ||||||
Expired | (14.4) | 23.61 | ||||||
Forfeited | (16.5) | 25.39 | ||||||
As at December 31, 2023 | 513.2 | $ | 22.32 |
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise
Prices
CAD$
|
Number Outstanding as at December 31, 2023 | Weighted Average Remaining Contractual Life (years) |
Weighted Average Exercise Price CAD$ |
Number Outstanding as at December 31, 2023 | Weighted Average Exercise Price CAD$ |
||||||||||||
$17.53 - $23.03 | 446.4 | 5.4 | $ | 21.13 | 159.1 | $ | 19.70 | ||||||||||
$23.04 - $28.54 | 21.1 | 2.9 | $ | 26.54 | 21.1 | $ | 26.54 | ||||||||||
$28.55 - $34.04 | 38.8 | 4.9 | $ | 30.07 | 25.9 | $ | 30.70 | ||||||||||
$34.05 - $39.48 | 6.9 | 3.9 | $ | 39.48 | 6.9 | $ | 39.48 | ||||||||||
513.2 | 5.3 | $ | 22.32 | 213.0 | $ | 22.35 |
2023 | 2022 | |||||||
Expected life (years) | 4.5 | 4.5 | ||||||
Expected volatility | 30.1 | % | 44.3 | % | ||||
Expected dividend yield | 2.7 | % | 2.7 | % | ||||
Risk-free interest rate | 3.8 | % | 3.4 | % | ||||
Weighted average exercise price (CAD$) | $ | 21.18 | $ | 22.95 | ||||
Weighted average fair value (CAD$) | $ | 6.01 | $ | 7.69 |
PAN AMERICAN SILVER CORP. | 111 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PSU | Number Outstanding | Fair Value | ||||||
As at December 31, 2021 | 217.6 | $ | 5.5 | |||||
Granted | 150.5 | 2.4 | ||||||
Paid out | (80.1) | (0.8) | ||||||
Change in value | — | (2.3) | ||||||
As at December 31, 2022 | 288.0 | $ | 4.8 | |||||
Granted | 534.9 | 8.7 | ||||||
Paid out | (66.0) | — | ||||||
Change in value | — | (1.0) | ||||||
As at December 31, 2023 | 756.9 | $ | 12.5 |
RSU | Number Outstanding | Fair Value | ||||||
As at December 31, 2021 | 426.4 | $ | 10.7 | |||||
Granted | 341.1 | 5.6 | ||||||
Paid out | (198.4) | (3.4) | ||||||
Forfeited | (17.3) | (0.3) | ||||||
Change in value | — | (3.5) | ||||||
As at December 31, 2022 | 551.8 | $ | 9.1 | |||||
Granted | 516.2 | 8.4 | ||||||
Paid out | (237.3) | (3.9) | ||||||
Forfeited | (25.7) | (0.4) | ||||||
Change in value | — | (0.1) | ||||||
As at December 31, 2023 | 805.0 | $ | 13.1 |
PAN AMERICAN SILVER CORP. | 112 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
Declaration date | Record date | Dividend per common share | ||||||
February 21, 2024 (1) |
March 4, 2024 | $ | 0.10 | |||||
November 7, 2023 | November 20, 2023 | $ | 0.10 | |||||
August 9, 2023 | August 21, 2023 | $ | 0.10 | |||||
March 23, 2023 | April 14, 20023 | $ | 0.10 | |||||
February 22, 2023 | March 6, 2023 | $ | 0.10 | |||||
November 9, 2022 | November 21, 2022 | $ | 0.10 | |||||
August 10, 2022 | August 22, 2022 | $ | 0.11 | |||||
May 11, 2022 | May 24, 2022 | $ | 0.12 | |||||
February 23, 2022 | March 7, 2022 | $ | 0.12 |
PAN AMERICAN SILVER CORP. | 113 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
2023 | 2022 | |||||||
Materials and consumables | $ | 548.0 | $ | 414.3 | ||||
Salaries and employee benefits (1) |
479.6 | 310.7 | ||||||
Contractors | 346.2 | 232.1 | ||||||
Utilities | 66.9 | 56.2 | ||||||
Insurance | 23.0 | 17.2 | ||||||
Other expense | 8.2 | 13.6 | ||||||
Changes in inventories (2)(3) |
7.3 | 50.3 | ||||||
$ | 1,479.2 | $ | 1,094.4 |
2023 | 2022 | |||||||
Wages, salaries and bonuses | $ | 537.8 | $ | 328.4 | ||||
Severances (4) |
21.0 | 23.9 | ||||||
Share-based compensation | 5.5 | 3.9 | ||||||
Total employee compensation and benefit expenses | 564.3 | 356.2 | ||||||
Less: Expensed within General and Administrative expenses | (47.7) | (26.2) | ||||||
Less: Expensed within Care and Maintenance expenses | (26.8) | (11.7) | ||||||
Less: Expensed within Exploration expenses | (10.2) | (7.6) | ||||||
Employee compensation and benefits expenses included in production costs | $ | 479.6 | $ | 310.7 |
2023 | 2022 | |||||||
Escobal | $ | 26.0 | $ | 24.6 | ||||
Morococha(1) |
17.9 | 15.5 | ||||||
Navidad | 2.8 | 5.0 | ||||||
MARA (2) |
20.4 | — | ||||||
Manantial Espejo (3) |
15.1 | — | ||||||
$ | 82.2 | $ | 45.1 |
2023 | 2022 | |||||||
Interest expense | $ | 51.4 | $ | 5.3 | ||||
Finance fees | 5.8 | 2.4 | ||||||
Accretion expense (Note 19) | 34.2 | 14.8 | ||||||
$ | 91.4 | $ | 22.5 |
PAN AMERICAN SILVER CORP. | 114 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
For the year ended December 31, | 2023 | 2022 | ||||||||||||||||||
Earnings (1) |
Shares | EPS | Earnings | Shares | EPS | |||||||||||||||
Net loss | $ | (103.7) | $ | (341.7) | ||||||||||||||||
Basic loss per share | $ | (103.7) | 326,540 | $ | (0.32) | $ | (341.7) | 210,521 | $ | (1.62) | ||||||||||
Effect of dilutive securities: | ||||||||||||||||||||
Stock options | — | — | — | — | ||||||||||||||||
Diluted loss per share | $ | (103.7) | 326,540 | $ | (0.32) | $ | (341.7) | 210,521 | $ | (1.62) |
2023 | 2022 | |||||||
Potential dilutive securities: |
||||||||
Share options |
513.2 | 377.0 | ||||||
Potential shares from CVR conversion (1) |
15,600.0 | 15,600.0 | ||||||
16,113.2 | 15,977.0 |
Other operating activities | 2023 | 2022 | |||||||||
Adjustments for non-cash statement of earnings items: | |||||||||||
Unrealized foreign exchange losses | $ | 5.6 | $ | 12.9 | |||||||
Gains on derivatives (Note 10(d)) | (8.3) | (7.3) | |||||||||
Share-based compensation expense (Note 23) | 5.5 | 3.9 | |||||||||
(Gains) losses on disposition of mineral properties, plant and equipment | (7.9) | 2.4 | |||||||||
$ | (5.1) | $ | 11.9 |
Changes in non-cash operating working capital items: | 2023 | 2022 | ||||||
Trade and other receivables | $ | 45.9 | $ | (12.6) | ||||
Inventories | 38.5 | (49.9) | ||||||
Prepaid expenses | 9.4 | 2.5 | ||||||
Accounts payable and accrued liabilities | (10.0) | 20.7 | ||||||
Provisions | (14.9) | (2.7) | ||||||
$ | 68.9 | $ | (42.0) |
Cash and Cash Equivalents | December 31, 2023 |
December 31, 2022 |
||||||
Cash in banks | $ | 399.6 | $ | 107.0 | ||||
PAN AMERICAN SILVER CORP. | 115 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
For the year ended December 31, 2023 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) |
||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 122.5 | $ | 128.1 | $ | 22.1 | $ | (27.7) | $ | 63.9 | |||||||||
Peru | Huaron | 145.4 | 105.2 | 12.9 | 27.3 | 36.2 | ||||||||||||||
Morococha (2) |
— | — | — | — | 2.1 | |||||||||||||||
Bolivia | San Vicente | 91.5 | 69.8 | 9.5 | 12.2 | 3.8 | ||||||||||||||
Argentina | Manantial Espejo (2) |
37.7 | 32.4 | 2.0 | 3.3 | 0.2 | ||||||||||||||
Cerro Moro | 214.1 | 160.7 | 23.1 | 30.3 | 25.4 | |||||||||||||||
Guatemala | Escobal | — | — | — | — | 2.1 | ||||||||||||||
Total Silver Segment | 611.2 | 496.2 | 69.6 | 45.4 | 133.7 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 267.5 | 132.6 | 114.3 | 20.6 | 8.7 | ||||||||||||||
Peru | Shahuindo | 284.7 | 143.7 | 45.3 | 95.7 | 57.1 | ||||||||||||||
La Arena | 190.2 | 122.4 | 32.4 | 35.4 | 21.2 | |||||||||||||||
Canada | Timmins | 260.6 | 201.4 | 39.8 | 19.4 | 46.9 | ||||||||||||||
Brazil | Jacobina | 287.5 | 129.9 | 86.9 | 70.7 | 69.9 | ||||||||||||||
Chile | El Peñon | 259.4 | 184.2 | 54.2 | 21.0 | 18.6 | ||||||||||||||
Minera Florida | 154.8 | 124.7 | 33.3 | (3.2) | 22.3 | |||||||||||||||
Total Gold Segment | 1,704.7 | 1,038.9 | 406.2 | 259.6 | 244.7 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Pas Corp | — | — | 0.4 | (0.4) | 4.5 | ||||||||||||||
Yamana Corp | 0.2 | — | 5.8 | (5.6) | 1.5 | |||||||||||||||
Argentina | MARA (2) |
— | — | 0.1 | (0.1) | 35.9 | ||||||||||||||
Other | — | — | 2.1 | (2.1) | 2.7 | |||||||||||||||
Total | $ | 2,316.1 | $ | 1,535.1 | $ | 484.2 | $ | 296.8 | $ | 423.0 |
PAN AMERICAN SILVER CORP. | 116 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
For the year ended December 31, 2022 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) |
||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 155.0 | $ | 98.7 | $ | 20.2 | $ | 36.1 | $ | 91.7 | |||||||||
Peru | Huaron | 145.7 | 100.5 | 11.8 | 33.4 | 15.5 | ||||||||||||||
Morococha (2) |
22.1 | 20.6 | 2.3 | (0.8) | 1.3 | |||||||||||||||
Bolivia | San Vicente | 76.9 | 59.5 | 8.8 | 8.6 | 7.1 | ||||||||||||||
Argentina | Manantial Espejo (2) |
105.1 | 112.7 | 23.1 | (30.7) | 4.3 | ||||||||||||||
Guatemala | Escobal | — | — | — | — | 1.6 | ||||||||||||||
Total Silver Segment | 504.8 | 392.0 | 66.2 | 46.6 | 121.5 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 303.9 | 301.9 | 129.8 | (127.8) | 35.8 | ||||||||||||||
Peru | Shahuindo | 266.4 | 146.2 | 44.5 | 75.7 | 44.6 | ||||||||||||||
La Arena | 175.9 | 103.9 | 34.7 | 37.3 | 48.0 | |||||||||||||||
Canada | Timmins | 243.7 | 186.3 | 38.6 | 18.8 | 37.7 | ||||||||||||||
Total Gold Segment | 989.9 | 738.3 | 247.6 | 4.0 | 166.1 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Pas Corp | — | — | 0.4 | (0.4) | 0.3 | ||||||||||||||
Argentina | Navidad | — | — | — | — | 0.1 | ||||||||||||||
Other | — | — | 1.8 | (1.8) | 1.5 | |||||||||||||||
Total | $ | 1,494.7 | $ | 1,130.3 | $ | 316.0 | $ | 48.4 | $ | 289.5 |
At December 31, 2023 | ||||||||||||||
Segment/Country | Operation | Assets | Liabilities | Net assets | ||||||||||
Silver Segment: | ||||||||||||||
Mexico | La Colorada | $ | 428.0 | $ | 43.8 | $ | 384.2 | |||||||
Peru | Huaron | 149.5 | 61.0 | 88.5 | ||||||||||
Bolivia | San Vicente | 78.6 | 45.0 | 33.6 | ||||||||||
Argentina | Manantial Espejo(1) |
2.2 | 18.5 | (16.3) | ||||||||||
Guatemala | Pas Guatemala | 290.0 | 16.4 | 273.6 | ||||||||||
Argentina | Cerro Moro | 208.2 | 104.0 | 104.2 | ||||||||||
Total Silver Segment | 1,156.5 | 288.7 | 867.8 | |||||||||||
Gold Segment: | ||||||||||||||
Mexico | Dolores | 372.5 | 141.7 | 230.8 | ||||||||||
Peru | Shahuindo | 604.0 | 178.2 | 425.8 | ||||||||||
La Arena | 383.7 | 156.6 | 227.1 | |||||||||||
Canada | Timmins | 395.1 | 78.5 | 316.6 | ||||||||||
Brazil | Jacobina | 2,508.2 | 437.5 | 2,070.7 | ||||||||||
Chile | El Peñon | 776.0 | 205.6 | 570.4 | ||||||||||
Minera Florida | 219.6 | 103.7 | 115.9 | |||||||||||
Total Gold Segment | 5,259.1 | 1,301.8 | 3,957.3 | |||||||||||
Other segment: | ||||||||||||||
Canada | Pas Corp | 134.1 | 24.3 | 109.8 | ||||||||||
Yamana Corp | 304.3 | 725.9 | (421.6) | |||||||||||
Argentina | Navidad | 192.1 | 14.3 | 177.8 | ||||||||||
Other | 167.0 | 85.6 | 81.4 | |||||||||||
Total | $ | 7,213.1 | $ | 2,440.6 | $ | 4,772.5 |
PAN AMERICAN SILVER CORP. | 117 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
At December 31, 2022 | ||||||||||||||
Segment/Country | Operation | Assets | Liabilities | Net assets | ||||||||||
Silver Segment: | ||||||||||||||
Mexico | La Colorada | $ | 375.4 | $ | 52.0 | $ | 323.4 | |||||||
Peru | Huaron | 122.5 | 51.5 | 71.0 | ||||||||||
Morococha(1) |
102.2 | 31.2 | 71.0 | |||||||||||
Bolivia | San Vicente | 82.5 | 47.4 | 35.1 | ||||||||||
Argentina | Manantial Espejo(1) |
47.8 | 40.5 | 7.3 | ||||||||||
Guatemala | Escobal | 291.1 | 19.4 | 271.7 | ||||||||||
Total Silver Segment | 1,021.5 | 242.0 | 779.5 | |||||||||||
Gold Segment: | ||||||||||||||
Mexico | Dolores | 415.1 | 155.8 | 259.3 | ||||||||||
Peru | Shahuindo | 602.4 | 199.6 | 402.8 | ||||||||||
La Arena | 368.3 | 155.1 | 213.2 | |||||||||||
Canada | Timmins | 382.0 | 68.0 | 314.0 | ||||||||||
Total Gold Segment | 1,767.8 | 578.5 | 1,189.3 | |||||||||||
Other segment: | ||||||||||||||
Canada | Pas Corp | 179.0 | 182.9 | (3.9) | ||||||||||
Argentina | Navidad | 193.9 | 2.6 | 191.3 | ||||||||||
Other | 86.3 | 40.9 | 45.4 | |||||||||||
$ | 3,248.5 | $ | 1,046.9 | $ | 2,201.6 |
Product Revenue | 2023 | 2022 | ||||||
Refined silver and gold | $ | 1,954.4 | $ | 1,106.8 | ||||
Zinc concentrate | 83.2 | 98.3 | ||||||
Lead concentrate | 163.5 | 167.7 | ||||||
Copper concentrate | 54.6 | 65.1 | ||||||
Silver concentrate | 60.4 | 56.8 | ||||||
Total | $ | 2,316.1 | $ | 1,494.7 |
2023 | 2022 | |||||||
Change in closure and decommissioning estimates (1) |
$ | 20.4 | $ | 4.7 | ||||
Change in provisions | 4.5 | 5.0 | ||||||
Provisions on supplies and other assets | 4.4 | — | ||||||
Investment income | (16.0) | (5.4) | ||||||
Other expense (income) | 8.0 | (2.2) | ||||||
Total | $ | 21.3 | $ | 2.1 |
PAN AMERICAN SILVER CORP. | 118 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
2023 | 2022 | |||||||
Current tax expense (recovery) | ||||||||
Recognized in profit or loss in current year | $ | 132.7 | $ | 85.3 | ||||
Adjustments recognized in the current year with respect to prior years | 0.2 | (2.3) | ||||||
132.9 | 83.0 | |||||||
Deferred tax expense (recovery) | ||||||||
Deferred tax recovery recognized in the current year | (101.7) | (34.2) | ||||||
Adjustments recognized in the current year with respect to prior years | 3.4 | 0.4 | ||||||
Derecognition of previously recognized deferred tax assets | 3.7 | 9.0 | ||||||
Impact of impairments on deferred tax assets and liabilities | (3.4) | (3.8) | ||||||
Increase (decrease) in deferred tax liabilities due to tax impact of NRV charge to inventory | 11.2 | (15.3) | ||||||
(86.8) | (43.9) | |||||||
Income tax expense | $ | 46.1 | $ | 39.1 |
2023 | 2022 | |||||||
Earnings (loss) before taxes and non-controlling interest | $ | (58.8) | $ | (301.0) | ||||
Statutory Canadian income tax rate | 27.00 | % | 27.00 | % | ||||
Income tax expense (recovery) based on above rates | $ | (15.9) | $ | (81.3) | ||||
Increase (decrease) due to: | ||||||||
Non-deductible expenditures | 3.2 | 7.4 | ||||||
Foreign tax rate differences | 2.7 | (11.7) | ||||||
Change in net deferred tax assets not recognized (1) |
66.3 | 22.3 | ||||||
Derecognition of deferred tax assets previously recognized (2) |
— | 50.4 | ||||||
Effect of other taxes paid (mining and withholding) | 22.1 | 15.7 | ||||||
Effect of foreign exchange on tax expense | (36.0) | (21.5) | ||||||
Non-taxable impact of foreign exchange | 3.8 | 6.3 | ||||||
Change in non-deductible portion of reclamation liabilities | 1.9 | 12.2 | ||||||
Unrecognized tax benefit on termination fee related to the Yamana acquisition (3) |
— | 39.8 | ||||||
Other | (2.0) | (0.5) | ||||||
Income tax expense | $ | 46.1 | $ | 39.1 | ||||
PAN AMERICAN SILVER CORP. | 119 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
2023 | 2022 | |||||||
Net deferred tax liabilities, beginning of year | $ | (84.4) | $ | (128.8) | ||||
Recognized in net earnings in the year | 86.8 | 43.9 | ||||||
Initial deferred tax liability associated with the Yamana Acquisition (Note 8) | (881.2) | — | ||||||
Disposition of mining properties (Note 9) | 419.3 | — | ||||||
Recognized in other comprehensive income (loss) in year (1) |
(0.5) | 0.5 | ||||||
Other | (1.2) | — | ||||||
Net deferred liabilities, end of year | (461.2) | (84.4) | ||||||
Deferred tax assets | 80.4 | 55.9 | ||||||
Deferred tax liabilities | (541.6) | (140.3) | ||||||
Net deferred tax liabilities | $ | (461.2) | $ | (84.4) |
2023 | 2022 | |||||||
Deferred tax assets (liabilities) arising from: | ||||||||
Closure and decommissioning costs | $ | 33.9 | $ | 23.5 | ||||
Tax losses, resource pools and mining tax credits | 84.6 | 83.8 | ||||||
Mineral properties, plant, and equipment | (636.0) | (217.2) | ||||||
Other temporary differences and provisions | 56.3 | 25.5 | ||||||
Net deferred tax liabilities | $ | (461.2) | $ | (84.4) |
2023 | 2022 | |||||||
Operating tax loss | $ | 1,236.6 | $ | 383.2 | ||||
Net capital tax loss | 36.5 | 36.8 | ||||||
Resource pools and other tax credits (1) |
174.7 | 87.0 | ||||||
Mineral properties, plant, and equipment | 314.2 | 207.2 | ||||||
Closure and decommissioning costs | 297.6 | 207.3 | ||||||
Other temporary differences | 211.1 | 119.6 | ||||||
$ | 2,270.7 | $ | 1,041.1 |
PAN AMERICAN SILVER CORP. | 120 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
At December 31, 2023 | ||||||||||||||||||||||||||||||||
Canada | US | Peru | Mexico | Barbados | Argentina | Chile | Brazil | Netherlands | Total | |||||||||||||||||||||||
2024 | $ | — | $ | 15.5 | $ | 0.3 | $ | 0.3 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 16.1 | ||||||||||||
2025 | — | 9.7 | — | 0.6 | 4.7 | 5.4 | — | — | — | 20.4 | ||||||||||||||||||||||
2026 – and after | 695.2 | 146.1 | 0.4 | 2.2 | 20.9 | 95.1 | 146.6 | 88.2 | 5.4 | 1,200.1 | ||||||||||||||||||||||
Total tax losses | $ | 695.2 | $ | 171.3 | $ | 0.7 | $ | 3.1 | $ | 25.6 | $ | 100.5 | $ | 146.6 | $ | 88.2 | $ | 5.4 | 1,236.6 |
At December 31, 2022 | ||||||||||||||||||||||||||||||||
Canada | US | Peru | Mexico | Barbados | Argentina | Chile | Brazil | Netherlands | Total | |||||||||||||||||||||||
2023 | $ | — | $ | 0.4 | $ | — | $ | 0.3 | $ | 0.1 | $ | — | $ | — | $ | — | $ | — | $ | 0.8 | ||||||||||||
2024 | — | 0.4 | 0.3 | 0.3 | — | — | — | — | — | 1.0 | ||||||||||||||||||||||
2025 – and after | 342.2 | 11.0 | 0.3 | 2.3 | 0.3 | 25.3 | — | — | — | 381.4 | ||||||||||||||||||||||
Total tax losses | $ | 342.2 | $ | 11.8 | $ | 0.6 | $ | 2.9 | $ | 0.4 | $ | 25.3 | $ | — | $ | — | $ | — | $ | 383.2 |
PAN AMERICAN SILVER CORP. | 121 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 122 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 123 |
Notes to the Consolidated Financial Statements |
|||||
As at December 31, 2023 and December 31, 2022, and for the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted) |
2023 | 2022 | |||||||
Short-term employee benefits (1) |
$ | 9.9 | $ | 11.7 | ||||
Post-employment benefits (2) |
1.3 | 1.0 | ||||||
Share-based payments (3) |
4.4 | 2.3 | ||||||
$ | 15.6 | $ | 15.0 |
PAN AMERICAN SILVER CORP. | 124 |
TABLE OF CONTENTS | |||||
Alternative Performance Measures (Non-GAAP) |
|||||
PAN AMERICAN SILVER CORP. | 11 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
INTRODUCTION |
PAN AMERICAN SILVER CORP. | 12 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
CORE BUSINESS AND STRATEGY |
YAMANA ACQUISITION AND STRATEGIC DISPOSITIONS |
PAN AMERICAN SILVER CORP. | 13 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 14 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
2023 OPERATIONAL AND FINANCIAL HIGHLIGHTS |
PAN AMERICAN SILVER CORP. | 15 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
2023 OPERATING RESULTS VERSUS 2023 OPERATING OUTLOOK |
2023 Operating Outlook | 2023 Actual(1) |
|||||||
Silver Production - Moz | 21.0 - 23.0 | 20.4 | ||||||
Gold Production - koz | 870 - 970 | 883 | ||||||
Zinc Production - kt | 41 - 45 | 39 | ||||||
Lead Production - kt | 18 - 21 | 19 | ||||||
Copper Production - kt | 5 | 5 | ||||||
Silver Segment Cash Costs ($ per ounce)(2) |
10.00 - 12.00 | 13.07 | ||||||
Gold Segment Cash Costs ($ per ounce)(2) |
975 - 1,100 | 1,113 | ||||||
Silver Segment AISC ($ per ounce)(2) |
14.00 - 16.00 | 18.17 | ||||||
Gold Segment AISC ($ per ounce)(2) |
1,275 - 1,425 | 1,371 | ||||||
Sustaining Capital ($ millions) | 305.0 - 320.0 | 288.5 | ||||||
Project Capital ($ millions) | 95.0 - 105.0 | 94.5 |
PAN AMERICAN SILVER CORP. | 16 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
2023 OPERATING PERFORMANCE |
Three Months Ended December 31, |
Year ended December 31, |
|||||||||||||||||||
2023 | 2022 | Variance | 2023 | 2022 | Variance | |||||||||||||||
Production | ||||||||||||||||||||
Silver – koz | 4,835 | 4,763 | 73 | 20,437 | 18,455 | 1,982 | ||||||||||||||
Gold – koz | 267.8 | 164.4 | 103.4 | 882.9 | 552.5 | 330.4 | ||||||||||||||
Zinc – kt | 9.4 | 10.5 | (1.1) | 38.8 | 38.6 | 0.2 | ||||||||||||||
Lead – kt | 4.2 | 5.0 | (0.8) | 18.7 | 18.7 | — | ||||||||||||||
Copper – kt | 1.4 | 1.3 | 0.1 | 5.0 | 5.3 | (0.2) | ||||||||||||||
Cash Costs - $ per ounce sold(2) |
||||||||||||||||||||
Silver Segment | 19.31 | 14.41 | 4.90 | 13.07 | 12.72 | 0.35 | ||||||||||||||
Gold Segment | 1,096 | 1,077 | 19 | 1,113 | 1,113 | — | ||||||||||||||
AISC - $ per ounce sold(2) |
||||||||||||||||||||
Silver Segment | 26.55 | 17.79 | 8.77 | 18.17 | 16.48 | 1.69 | ||||||||||||||
Gold Segment | 1,411 | 1,502 | (91) | 1,371 | 1,649 | (277) |
PAN AMERICAN SILVER CORP. | 17 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 18 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 19 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 20 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
FINANCIAL PERFORMANCE |
Three months |
Year ended | ||||||||||
Net loss, period ended December 31, 2022 | $ | (172.1) | $ | (340.1) | Note | ||||||
Revenue: | |||||||||||
Increased metal prices | $ | 68.3 | $ | 137.9 | |||||||
Higher quantities of metal sold | 243.1 | 712.2 | |||||||||
Increased direct selling costs | (4.9) | (17.2) | |||||||||
Increased negative settlement adjustments | (12.3) | (11.5) | |||||||||
Total increase in revenue | 294.2 | 821.4 | (1) | ||||||||
Cost of sales: | |||||||||||
Increased production costs excluding NRV inventory adjustments | $ | (194.7) | $ | (514.3) | |||||||
Decreased NRV inventory adjustments | 5.6 | 129.5 | |||||||||
Increased royalty charges | (11.4) | (20.0) | |||||||||
Increased production costs and royalty charges | $ | (200.5) | $ | (404.8) | (2) | ||||||
Increased depreciation and amortization | (63.9) | (168.2) | (3) | ||||||||
Increased cost of sales | (264.4) | (573.0) | |||||||||
Increased mine operating earnings | 29.8 | 248.4 | |||||||||
Decreased transaction and integration costs | 157.1 | 132.1 | (4) | ||||||||
Increased income tax expense | (0.9) | (7.0) | |||||||||
Decreased exploration and project development expense | 4.7 | 3.7 | |||||||||
Increased investment gain | 2.0 | 10.7 | |||||||||
Increased gains on derivatives | 1.3 | 1.0 | |||||||||
Decreased losses on sale of mineral properties, plant and equipment | 0.7 | 10.3 | |||||||||
(Increased) decreased impairment charge | (36.2) | 20.5 | (5) | ||||||||
Increased interest and finance expense | (18.1) | (68.9) | (6) | ||||||||
Increased general and administrative expense | (15.4) | (32.4) | (7) | ||||||||
Increased other expense | (13.4) | (19.2) | (8) | ||||||||
(Increased) decreased foreign exchange loss | (8.7) | 18.5 | |||||||||
Decreased (increased) care and maintenance costs | 1.4 | (37.1) | (9) | ||||||||
Decreased gains and income from associates | — | (45.4) | (10) | ||||||||
Net loss, year ended December 31, 2023 | $ | (67.8) | $ | (104.9) |
PAN AMERICAN SILVER CORP. | 21 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Realized Metal Prices(1) |
Quantities of Metal Sold(2) |
|||||||||||||||||||||||||
Three months ended December 31, |
Year ended December 31, |
Three months ended December 31, |
Year ended December 31, |
|||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Silver |
$ | 22.33 | $ | 21.17 | $ | 22.94 | $ | 21.59 | 4,959 | 4,080 | 20,951 | 17,486 | ||||||||||||||
Gold |
$ | 1,980 | $ | 1,736 | $ | 1,951 | $ | 1,792 | 270.4 | 146.6 | 893.9 | 548.8 | ||||||||||||||
Zinc |
$ | 2,493 | $ | 2,878 | $ | 2,656 | $ | 3,472 | 9.7 | 5.4 | 36.8 | 29.9 | ||||||||||||||
Lead |
$ | 2,121 | $ | 2,111 | $ | 2,146 | $ | 2,148 | 4.0 | 4.6 | 17.9 | 17.6 | ||||||||||||||
Copper |
$ | 8,146 | $ | 7,957 | $ | 8,475 | $ | 8,979 | 1.0 | 1.2 | 4.1 | 4.7 |
PAN AMERICAN SILVER CORP. | 22 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 23 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 24 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 25 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Payments due by period December 31, 2023 | |||||||||||||||||
Within 1 year | 2 - 3 years | 4- 5 years | After 5 years |
Total | |||||||||||||
Accounts payable and accrued liabilities other than: | $ | 491.0 | $ | — | $ | — | $ | — | $ | 491.0 | |||||||
Severance liabilities | 2.1 | 17.2 | 9.0 | 32.2 | 60.5 | ||||||||||||
Payroll liabilities | 4.9 | — | — | — | 4.9 | ||||||||||||
Total accounts payable and accrued liabilities | 498.0 | 17.2 | 9.0 | 32.2 | 556.4 | ||||||||||||
Income tax payables | 32.1 | — | — | — | 32.1 | ||||||||||||
Debt | |||||||||||||||||
Repayment of principal | 6.7 | 11.9 | 275.3 | 409.8 | 703.7 | ||||||||||||
Interest and standby fees | 29.1 | 57.6 | 43.4 | 34.5 | 164.6 | ||||||||||||
Provisions (1)(2) |
4.0 | 14.0 | 1.2 | 7.7 | 26.9 | ||||||||||||
Future payroll liabilities | 2.5 | 17.0 | — | 1.8 | 21.3 | ||||||||||||
Total contractual obligations (2) |
$ | 572.4 | $ | 117.7 | $ | 328.9 | $ | 486.0 | $ | 1,505.0 |
Outstanding as at February 21, 2024 (in thousands) | |||||
Common shares | 364,660 | ||||
Options | 513 | ||||
Total | 365,173 |
PAN AMERICAN SILVER CORP. | 26 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 27 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
2024 OPERATING OUTLOOK |
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 - 11.20 | 15.25 - 17.25 | ||||||||||
San Vicente (Bolivia) (95.0%)(2) |
2.9 - 3.1 | — | 15.30 - 16.60 | 17.30 - 18.30 | ||||||||||
Total | 14.9 - 16.1 | 95 - 117 | 11.70 - 14.10 | 16.00 - 18.50 | ||||||||||
Gold Segment: | ||||||||||||||
Jacobina (Brazil) | — | 185 - 203 | 970 - 1,050 | 1,250 - 1,350 | ||||||||||
El Peñon (Chile) | 3.6 - 3.9 | 120 - 135 | 950 - 1,030 | 1,200 - 1,300 | ||||||||||
Timmins (Canada) | — | 125 - 135 | 1,530 - 1,630 | 1,830 - 1,950 | ||||||||||
Shahuindo (Peru) | 0.2 - 0.3 | 122 - 144 | 970 - 1,050 | 1,550 - 1,650 | ||||||||||
La Arena (Peru)(3) |
— | 83 - 95 | 1,400 - 1,470 | 1,675 - 1,775 | ||||||||||
Minera Florida (Chile) | 0.4 - 0.5 | 85 - 96 | 1,410 - 1,550 | 1,650 - 1,800 | ||||||||||
Dolores (Mexico)(3) |
1.9 - 2.2 | 65 - 75 | 1,150 - 1,230 | 1,275 - 1,375 | ||||||||||
Total | 6.1 - 6.9 | 785 - 883 | 1,165 - 1,260 | 1,475 - 1,575 | ||||||||||
Total Production | 21.0 - 23.0 | 880 - 1,000 | n/a | n/a |
Zinc (kt) |
Lead (kt) |
Copper (kt) |
|||||||||
Consolidated Production | 42 - 46 | 19 - 22 | 4 |
PAN AMERICAN SILVER CORP. | 28 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
2024 Quarterly Expectations |
|||||||||||||||||
Q1 | Q2 | Q3 | Q4 | FY 2024 | |||||||||||||
Silver Production (million ounces) | 4.75 - 5.30 | 5.36 - 5.78 | 5.44 - 5.97 | 5.45 - 5.95 | 21.00 - 23.00 | ||||||||||||
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 - 17.50 | 10.50 - 12.90 | 4.60 - 7.70 | 11.70 - 14.10 | ||||||||||||
Silver Segment AISC (1) |
21.30 - 23.30 | 20.20 - 22.20 | 15.60 - 18.00 | 7.70 - 11.00 | 16.00 - 18.50 | ||||||||||||
Gold Segment Cash Costs (1) |
1,270 - 1,370 | 1,170 - 1,240 | 1,140 - 1,220 | 1,080 - 1,160 | 1,165 - 1,260 | ||||||||||||
Gold Segment AISC (1) |
1,500 - 1,700 | 1,500 - 1,590 | 1,460 - 1,570 | 1,400 - 1,500 | 1,475 - 1,575 |
PAN AMERICAN SILVER CORP. | 29 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Capital Forecast ($ millions) | Capitalized Exploration | Lease Payments | Other Capital Expenditures | 2024 Forecast | ||||||||||
Sustaining Capital | ||||||||||||||
La Colorada | 4.5 | 2.0 | 16.0 - 16.5 | 22.5 - 23.0 | ||||||||||
Cerro Moro | 4.0 | 2.5 | 7.5 - 9.0 | 14.0 - 15.5 | ||||||||||
Huaron | 2.5 | 3.0 | 12.0 - 13.0 | 17.5 - 18.5 | ||||||||||
San Vicente(1) |
1.0 | — | 3.5 - 4.5 | 4.5 - 5.5 | ||||||||||
Jacobina | 16.5 | 12.5 | 24.0 - 26.0 | 53.0 - 55.0 | ||||||||||
El Peñon | 16.0 | 11.5 | 2.5 - 4.5 | 30.0 - 32.0 | ||||||||||
Timmins | 5.5 | — | 33.5 - 34.5 | 39.0 - 40.0 | ||||||||||
Shahuindo | 1.5 | 14.5 | 60.0 - 64.0 | 76.0 - 80.0 | ||||||||||
La Arena | — | 4.5 | 13.5 - 14.5 | 18.0 - 19.0 | ||||||||||
Minera Florida | 6.0 | 7.0 | 7.0 - 8.0 | 20.0 - 21.0 | ||||||||||
Dolores | — | 0.5 | — | 0.5 | ||||||||||
Sustaining Capital Sub-total | 57.5 | 58.0 | 179.5 - 194.5 | 295.0 - 310.0 | ||||||||||
Project Capital | ||||||||||||||
La Colorada | 4.5 | — | 20.5 - 21.5 | 25.0 - 26.0 | ||||||||||
Huaron | — | — | 30.0 - 31.0 | 30.0 - 31.0 | ||||||||||
Timmins | — | — | 11.0 - 12.5 | 11.0 - 12.5 | ||||||||||
Jacobina | — | — | 14.0 - 15.5 | 14.0 - 15.5 | ||||||||||
Project Capital Total | 4.5 | — | 75.5 - 80.5 | 80.0 - 85.0 | ||||||||||
Total Capital Expenditures | 62.0 | 58.0 | 255.0 - 275.0 | 375.0 - 395.0 |
Other Expenditures Forecast ($ millions) | 2024 Forecast | ||||
Reclamation Expenditures | |||||
Dolores | 11.0 - 12.0 | ||||
Jacobina | 8.0 - 9.0 | ||||
Alamo Dorado | 8.0 - 10.0 | ||||
Other | 8.0 - 9.0 | ||||
Total Reclamation Expenditures | 35.0 - 40.0 | ||||
Care & Maintenance | |||||
Escobal | 20.0 - 25.0 | ||||
Other | 5.0 | ||||
Total Care & Maintenance | 25.0 - 30.0 | ||||
General and Administrative | 70.0 - 75.0 | ||||
Exploration and Project Development | 10.0 - 12.0 | ||||
Income Tax Payments | 95.0 - 100.0 |
PAN AMERICAN SILVER CORP. | 30 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 31 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 32 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 33 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 34 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
2023 | Quarter Ended | Year Ended |
|||||||||||||||
(In millions of USD, other than per share amounts) | Mar 31 | Jun 30 | Sep 30 | Dec 31 | Dec 31 | ||||||||||||
Revenue | $ | 390.3 | $ | 639.9 | $ | 616.3 | $ | 669.6 | $ | 2,316.1 | |||||||
Mine operating earnings | $ | 77.2 | $ | 88.0 | $ | 66.7 | $ | 64.9 | $ | 296.8 | |||||||
Earnings (loss) for the period attributable to equity holders | $ | 16.4 | $ | (32.4) | $ | (19.7) | $ | (68.0) | $ | (103.7) | |||||||
Basic earnings (loss) per share | $ | 0.08 | $ | (0.09) | $ | (0.05) | $ | (0.19) | $ | (0.32) | |||||||
Diluted earnings (loss) per share | $ | 0.08 | $ | (0.09) | $ | (0.05) | $ | (0.19) | $ | (0.32) | |||||||
Cash flow from operating activities | $ | 51.3 | $ | 117.0 | $ | 114.6 | $ | 167.4 | $ | 450.2 | |||||||
Cash dividends paid per share | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.10 | $ | 0.40 | |||||||
Other financial information | |||||||||||||||||
Total assets | $ | 7,213.1 | |||||||||||||||
Total long-term financial liabilities(1) |
$ | 1,274.8 | |||||||||||||||
Total attributable shareholders’ equity | $ | 4,760.7 |
2022 | Quarter Ended | Year Ended |
|||||||||||||||
(In millions of USD, other than per share amounts) | Mar 31 | Jun 30 | Sep 30 | Dec 31 | Dec 31 | ||||||||||||
Revenue | $ | 439.9 | $ | 340.5 | $ | 338.9 | $ | 375.5 | $ | 1,494.8 | |||||||
Mine operating earnings (loss) | $ | 66.8 | $ | (31.7) | $ | (21.8) | $ | 35.0 | $ | 48.3 | |||||||
Earnings (loss) for the period attributable to equity holders | $ | 76.5 | $ | (174.0) | $ | (71.5) | $ | (172.8) | $ | (341.8) | |||||||
Basic earnings (loss) per share | $ | 0.36 | $ | (0.83) | $ | (0.34) | $ | (0.81) | $ | (1.62) | |||||||
Diluted earnings (loss) per share | $ | 0.36 | $ | (0.83) | $ | (0.34) | $ | (0.81) | $ | (1.62) | |||||||
Cash flow from operating activities(1) |
$ | 68.8 | $ | 20.8 | $ | 54.4 | $ | (112.1) | $ | 31.9 | |||||||
Cash dividends paid per share | $ | 0.12 | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 0.45 | |||||||
Other financial information | |||||||||||||||||
Total assets | $ | 3,248.5 | |||||||||||||||
Total long-term financial liabilities(2) |
$ | 511.8 | |||||||||||||||
Total attributable shareholders’ equity | $ | 2,195.5 |
2021 | Quarter Ended | Year Ended |
|||||||||||||||
(In millions of USD, other than per share amounts) | Mar 31 | Jun 30 | Sep 30 | Dec 31 | Dec 31 | ||||||||||||
Revenue | $ | 368.1 | $ | 382.1 | $ | 460.3 | $ | 422.2 | $ | 1,632.7 | |||||||
Mine operating earnings | $ | 90.0 | $ | 103.0 | $ | 98.9 | $ | 76.0 | $ | 367.9 | |||||||
(Loss) earnings for the period attributable to equity holders | $ | (7.8) | $ | 70.9 | $ | 20.3 | $ | 14.0 | $ | 97.4 | |||||||
Basic (loss) earnings per share | $ | (0.04) | $ | 0.34 | $ | 0.10 | $ | 0.06 | $ | 0.46 | |||||||
Diluted (loss) earnings per share | $ | (0.04) | $ | 0.34 | $ | 0.10 | $ | 0.06 | $ | 0.46 | |||||||
Cash flow from operating activities | $ | 29.9 | $ | 87.1 | $ | 157.0 | $ | 118.1 | $ | 392.1 | |||||||
Cash dividends paid per share | $ | 0.07 | $ | 0.07 | $ | 0.10 | $ | 0.10 | $ | 0.34 | |||||||
Other financial information | |||||||||||||||||
Total assets | $ | 3,518.6 | |||||||||||||||
Total long-term financial liabilities(1) |
$ | 297.6 | |||||||||||||||
Total attributable shareholders’ equity | $ | 2,631.6 |
PAN AMERICAN SILVER CORP. | 35 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Three Months Ended December 31, 2023 | ||||||||||||||||||||||||||||||||||||||
La Colorada | Cerro Moro(1) |
Huaron | San Vicente(2) |
Jacobina(1) |
El Peñon(1) |
Timmins | Shahuindo | La Arena | Minera Florida(1) |
Dolores | Total | |||||||||||||||||||||||||||
Ore tonnes mined – kt | 92 | 104 | 234 | 91 | 769 | 256 | 426 | 3,242 | 3,506 | 234 | 1,108 | 10,063 | ||||||||||||||||||||||||||
Waste tonnes mined – kt | — | 784 | — | — | — | — | — | 4,492 | 3,339 | — | 4,260 | 12,875 | ||||||||||||||||||||||||||
Tonnes processed – kt | 94 | 107 | 236 | 94 | 765 | 343 | 433 | 3,148 | 3,506 | 260 | 1,984 | 10,973 | ||||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||||||||
Silver – g/t | 291.7 | 274.5 | 143.2 | 263.5 | — | 88.7 | — | 6.6 | 0.6 | 14.3 | 13.2 | |||||||||||||||||||||||||||
Gold – g/t | — | 9.19 | — | — | 2.20 | 3.24 | 2.73 | 0.52 | 0.34 | 3.16 | 0.50 | |||||||||||||||||||||||||||
Zinc – % | 1.51 | — | 2.49 | 2.83 | — | — | — | — | — | 0.67 | — | |||||||||||||||||||||||||||
Lead – % | 0.83 | — | 1.64 | 0.32 | — | — | — | — | — | 0.10 | — | |||||||||||||||||||||||||||
Copper – % | — | — | 0.66 | 0.20 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||||||||
Silver – koz | 806 | 886 | 905 | 738 | — | 853 | 4 | 69 | 17 | 80 | 477 | 4,835 | ||||||||||||||||||||||||||
Gold – koz | 0.4 | 30.3 | 0.2 | — | 51.1 | 33.9 | 35.1 | 34.9 | 31.7 | 24.7 | 25.4 | 267.8 | ||||||||||||||||||||||||||
Zinc – kt | 1.1 | — | 4.7 | 2.3 | — | — | — | — | — | 1.3 | — | 9.4 | ||||||||||||||||||||||||||
Lead – kt | 0.6 | — | 3.0 | 0.3 | — | — | — | — | — | 0.3 | — | 4.2 | ||||||||||||||||||||||||||
Copper – kt | — | — | 1.2 | 0.1 | — | — | — | — | — | — | — | 1.4 |
Three Months Ended December 31, 2022 | |||||||||||||||||||||||||||||
La Colorada | Huaron | San Vicente(2) |
Manantial Espejo | Timmins | Shahuindo | La Arena | Dolores | Total | |||||||||||||||||||||
Ore tonnes mined – kt | 171 | 231 | 106 | 110 | 455 | 3,083 | 3,736 | 2,591 | 10,483 | ||||||||||||||||||||
Waste tonnes mined – kt | — | — | — | — | — | 3,712 | 3,905 | 6,167 | 13,783 | ||||||||||||||||||||
Tonnes processed – kt | 163 | 233 | 97 | 160 | 448 | 2,970 | 3,747 | 2,075 | 9,893 | ||||||||||||||||||||
Grade | |||||||||||||||||||||||||||||
Silver – g/t | 283.5 | 162.3 | 242.7 | 249.2 | — | 10.0 | 0.6 | 20.5 | |||||||||||||||||||||
Gold – g/t | — | — | — | 2.05 | 2.52 | 0.67 | 0.32 | 0.67 | |||||||||||||||||||||
Zinc – % | 1.86 | 2.46 | 4.05 | — | — | — | — | — | |||||||||||||||||||||
Lead – % | 1.09 | 1.71 | 0.32 | — | — | — | — | — | |||||||||||||||||||||
Copper – % | — | 0.68 | 0.14 | — | — | — | — | — | |||||||||||||||||||||
Production | |||||||||||||||||||||||||||||
Silver – koz | 1,339 | 1,025 | 703 | 1,010 | 4 | 77 | 14 | 591 | 4,763 | ||||||||||||||||||||
Gold – koz | 0.7 | 0.2 | — | 8.9 | 34.0 | 49.7 | 36.2 | 34.6 | 164 | ||||||||||||||||||||
Zinc – kt | 2.5 | 4.5 | 3.4 | — | — | — | — | — | 10.5 | ||||||||||||||||||||
Lead – kt | 1.5 | 3.2 | 0.3 | — | — | — | — | — | 5.0 | ||||||||||||||||||||
Copper – kt | — | 1.2 | 0.1 | — | — | — | — | — | 1.3 |
PAN AMERICAN SILVER CORP. | 36 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Year ended December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
La Colorada | Cerro Moro(1) |
Huaron | San Vicente(2) |
Manantial Espejo | Jacobina(1) |
El Peñon(1) |
Timmins | Shahuindo | La Arena | Minera Florida(1) |
Dolores | Total | |||||||||||||||||||||||||||||
Ore tonnes mined – kt | 529 | 311 | 941 | 366 | — | 2,275 | 764 | 1,541 | 12,624 | 12,587 | 692 | 7,781 | 40,411 | ||||||||||||||||||||||||||||
Waste tonnes mined – kt | — | 1,961 | — | — | — | — | — | — | 18,074 | 17,265 | — | 13,628 | 50,927 | ||||||||||||||||||||||||||||
Tonnes processed – kt | 537 | 315 | 944 | 372 | 10 | 2,307 | 1,029 | 1,574 | 12,519 | 12,586 | 760 | 7,617 | 40,571 | ||||||||||||||||||||||||||||
Grade | |||||||||||||||||||||||||||||||||||||||||
Silver – g/t | 276.5 | 376.6 | 142.9 | 271.4 | 205.1 | — | 98.7 | — | 7.0 | 0.8 | 17.2 | 17.6 | |||||||||||||||||||||||||||||
Gold – g/t | — | 8.82 | — | — | 2.13 | 2.08 | 3.05 | 2.70 | 0.48 | 0.31 | 3.15 | 0.57 | |||||||||||||||||||||||||||||
Zinc – % | 1.64 | — | 2.49 | 3.11 | — | — | — | — | — | — | 0.67 | — | |||||||||||||||||||||||||||||
Lead – % | 0.92 | — | 1.66 | 0.33 | — | — | — | — | — | — | 0.12 | — | |||||||||||||||||||||||||||||
Copper – % | — | — | 0.61 | 0.21 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Production | |||||||||||||||||||||||||||||||||||||||||
Silver – koz | 4,392 | 3,547 | 3,608 | 2,978 | 191 | — | 2,906 | 16 | 276 | 47 | 283 | 2,194 | 20,437 | ||||||||||||||||||||||||||||
Gold – koz | 2.3 | 84.6 | 1.1 | 0.1 | 1.7 | 147.8 | 95.7 | 132.9 | 140.1 | 97.1 | 72.4 | 107.1 | 882.9 | ||||||||||||||||||||||||||||
Zinc – kt | 7.4 | — | 18.5 | 9.7 | — | — | — | — | — | — | 3.2 | — | 38.8 | ||||||||||||||||||||||||||||
Lead – kt | 4.2 | — | 12.6 | 1.0 | — | — | — | — | — | — | 0.9 | — | 18.7 | ||||||||||||||||||||||||||||
Copper – kt | 0.1 | — | 4.4 | 0.6 | — | — | — | — | — | — | — | — | 5.0 |
Year ended December 31, 2022 | ||||||||||||||||||||||||||||||||
La Colorada | Huaron | Morococha(2) |
San Vicente(2) |
Manantial Espejo | Timmins | Shahuindo | La Arena | Dolores | Total | |||||||||||||||||||||||
Ore tonnes mined – kt | 649 | 937 | 96 | 357 | 371 | 1,718 | 13,644 | 11,423 | 7,303 | 36,500 | ||||||||||||||||||||||
Waste tonnes mined – kt | — | — | — | — | — | — | 18,923 | 22,684 | 26,227 | 67,834 | ||||||||||||||||||||||
Tonnes processed – kt | 641 | 938 | 101 | 346 | 643 | 1,694 | 13,755 | 11,486 | 7,957 | 37,561 | ||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||
Silver – g/t | 316.0 | 145.6 | 112.3 | 250.2 | 195.2 | — | 6.3 | 0.6 | 17.6 | |||||||||||||||||||||||
Gold – g/t | — | — | — | — | 1.47 | 2.60 | 0.50 | 0.33 | 0.64 | |||||||||||||||||||||||
Zinc – % | 1.85 | 2.25 | 3.12 | 3.29 | — | — | — | — | — | |||||||||||||||||||||||
Lead – % | 1.05 | 1.52 | 0.96 | 0.30 | — | — | — | — | — | |||||||||||||||||||||||
Copper – % | — | 0.63 | 0.60 | 0.18 | — | — | — | — | — | |||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||
Silver – koz | 5,927 | 3,660 | 324 | 2,526 | 3,463 | 15 | 260 | 38 | 2,242 | 18,455 | ||||||||||||||||||||||
Gold – koz | 3.3 | 0.9 | 0.1 | 0.1 | 26.6 | 134.6 | 151.4 | 98.5 | 136.9 | 552.5 | ||||||||||||||||||||||
Zinc – kt | 10.0 | 16.4 | 2.7 | 9.5 | — | — | — | — | — | 38.6 | ||||||||||||||||||||||
Lead – kt | 5.6 | 11.4 | 0.7 | 0.9 | — | — | — | — | — | 18.7 | ||||||||||||||||||||||
Copper – kt | — | 4.3 | 0.5 | 0.5 | — | — | — | — | — | 5.3 | ||||||||||||||||||||||
PAN AMERICAN SILVER CORP. | 37 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 38 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Silver Segment | Gold Segment | |||||||||||||
(In millions of USD, except as noted) | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | Three Months Ended December 31, 2023 | Three Months Ended December 31, 2022 | ||||||||||
Production costs | $ | 134.7 | $ | 79.6 | $ | 306.5 | $ | 172.8 | ||||||
Restructuring and end-of-mine life severance accruals and payments(1) |
(1.8) | (5.9) | (0.6) | (0.6) | ||||||||||
Purchase price allocation inventory fair value adjustment(2) |
(0.9) | — | (8.8) | — | ||||||||||
NRV inventory adjustments | (0.9) | 5.8 | 1.1 | (11.2) | ||||||||||
On-site direct operating costs | 131.1 | 79.5 | 298.2 | 161.0 | ||||||||||
Royalties | 13.7 | 4.7 | 6.6 | 4.2 | ||||||||||
Smelting, refining and direct selling charges(3) |
13.8 | 10.5 | 1.6 | — | ||||||||||
Cash cost of sales before by-product credits |
158.6 | 94.7 | 306.4 | 165.2 | ||||||||||
Silver segment by-product credits(3) |
(95.0) | (45.0) | — | — | ||||||||||
Gold segment by-product credits(3) |
— | — | (42.9) | (13.9) | ||||||||||
Cash Costs |
$ | 63.6 | $ | 49.6 | $ | 263.5 | $ | 151.3 | ||||||
NRV inventory adjustments | 0.9 | (5.8) | (1.1) | 11.2 | ||||||||||
Sustaining capital |
22.2 | 16.9 | 70.5 | 45.7 | ||||||||||
Exploration and project development(4) |
— | — | — | — | ||||||||||
Reclamation cost accretion(5) |
0.8 | 0.5 | 6.3 | 2.8 | ||||||||||
All-in sustaining costs |
$ | 87.5 | $ | 61.3 | $ | 339.1 | $ | 211.0 | ||||||
Silver segment silver ounces sold (Moz) | 3.3 | 3.4 | — | — | ||||||||||
Gold segment gold ounces sold (koz) | — | — | 240.4 | 140.5 | ||||||||||
Cash costs per ounce sold |
$ | 19.31 | $ | 14.41 | $ | 1,096 | $ | 1,077 | ||||||
AISC per ounce sold | $ | 26.55 | $ | 17.79 | $ | 1,411 | $ | 1,502 | ||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 26.28 | $ | 19.47 | $ | 1,415 | $ | 1,422 |
PAN AMERICAN SILVER CORP. | 39 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Silver Segment | Gold Segment | |||||||||||||
(In millions of USD, except as noted) | Year ended December 31, 2023 | Year ended December 31, 2022 | Year ended December 31, 2023 | Year ended December 31, 2022 | ||||||||||
Production costs | $ | 463.3 | $ | 374.2 | $ | 1,015.9 | $ | 720.3 | ||||||
Restructuring and end-of-mine life severance accruals and payments(1) |
(11.6) | (20.8) | (4.4) | (2.8) | ||||||||||
Purchase price allocation inventory fair value adjustment(2) |
(7.1) | — | (34.7) | — | ||||||||||
NRV inventory adjustments | (3.9) | 1.1 | 35.7 | (98.9) | ||||||||||
On-site direct operating costs | 440.7 | 354.5 | 1,012.5 | 618.6 | ||||||||||
Royalties | 32.9 | 18.2 | 23.0 | 17.6 | ||||||||||
Smelting, refining and direct selling charges(3) |
65.0 | 52.0 | 4.4 | 0.2 | ||||||||||
Cash cost of sales before by-product credits |
538.6 | 424.7 | 1,039.9 | 636.4 | ||||||||||
Silver segment by-product credits(3) |
(342.3) | (235.0) | — | — | ||||||||||
Gold segment by-product credits(3) |
— | — | (148.3) | (56.4) | ||||||||||
Cash Costs |
$ | 196.3 | $ | 189.7 | $ | 891.6 | $ | 580.1 | ||||||
NRV inventory adjustments | 3.9 | (1.1) | (35.7) | 98.9 | ||||||||||
Sustaining capital |
69.2 | 55.0 | 219.2 | 168.8 | ||||||||||
Exploration and project development(4) |
— | — | — | — | ||||||||||
Reclamation cost accretion(5) |
3.4 | 2.2 | 23.6 | 11.2 | ||||||||||
All-in sustaining costs |
$ | 272.8 | $ | 245.8 | $ | 1,098.7 | $ | 859.0 | ||||||
Silver segment silver ounces sold (Moz) | 15.0 | 14.9 | — | — | ||||||||||
Gold segment gold ounces sold (koz) | — | — | 801.2 | 521.1 | ||||||||||
Cash costs per ounce sold |
$ | 13.07 | $ | 12.72 | $ | 1,113 | $ | 1,113 | ||||||
AISC per ounce sold | $ | 18.17 | $ | 16.48 | $ | 1,371 | $ | 1,649 | ||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 17.91 | $ | 16.56 | $ | 1,416 | $ | 1,459 |
PAN AMERICAN SILVER CORP. | 40 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Three Months Ended December 31, |
Year ended December 31, |
|||||||||||||
(in millions of USD) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Payments for mineral properties, plant and equipment(1) |
$ | 118.9 | $ | 72.4 | $ | 379.0 | $ | 274.7 | ||||||
Add/(Subtract) | ||||||||||||||
Lease Payments(1) |
19.0 | 3.7 | 44.0 | 14.8 | ||||||||||
Repayment of loans(2) |
(3.5) | 1.6 | 6.7 | 5.2 | ||||||||||
La Colorada investment (non-sustaining) capital | (10.2) | (12.5) | (44.4) | (62.4) | ||||||||||
Jacobina investment (non-sustaining) capital | (10.2) | — | (23.8) | — | ||||||||||
Huaron investment (non-sustaining) capital | (12.1) | (1.6) | (15.8) | (1.6) | ||||||||||
MARA investment (non-sustaining) capital | — | — | (35.9) | — | ||||||||||
Other investment (non-sustaining) capital | (9.3) | (1.0) | (21.4) | (7.0) | ||||||||||
Sustaining Capital |
$ | 92.6 | $ | 62.6 | $ | 288.5 | $ | 223.8 |
PAN AMERICAN SILVER CORP. | 41 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
SILVER SEGMENT | Three Months Ended December 31, 2023 | |||||||||||||||||||
(In millions of USD, except as noted) | La Colorada | Cerro Moro | Huaron | San Vicente |
Manantial Espejo |
Consolidated Silver Segment |
||||||||||||||
Production Costs | $ | 33.7 | $ | 60.6 | $ | 25.9 | $ | 14.4 | $ | — | $ | 134.7 | ||||||||
Restructuring and end-of-mine life severance accruals and payments | (1.8) | — | — | — | — | (1.8) | ||||||||||||||
Purchase Price Allocation Inventory Fair Value Adjustment | — | (0.9) | — | — | — | (0.9) | ||||||||||||||
NRV inventory adjustments | (0.9) | — | — | — | — | (0.9) | ||||||||||||||
On-site direct operating costs | 31.0 | 59.7 | 25.9 | 14.4 | — | 131.1 | ||||||||||||||
Royalties | 0.2 | 9.2 | — | 4.3 | — | 13.7 | ||||||||||||||
Smelting, refining & direct selling costs | 1.5 | 2.5 | 6.9 | 2.9 | — | 13.8 | ||||||||||||||
Cash Costs before by-product credits |
32.8 | 71.3 | 32.8 | 21.7 | — | 158.6 | ||||||||||||||
Silver segment by-product credits | (3.4) | (58.8) | (24.0) | (8.8) | — | (95.0) | ||||||||||||||
Cash Costs | $ | 29.4 | $ | 12.5 | $ | 8.8 | $ | 12.9 | $ | — | $ | 63.6 | ||||||||
NRV inventory adjustments | 0.9 | — | — | — | — | 0.9 | ||||||||||||||
Sustaining capital | 5.1 | 10.9 | 5.2 | 1.0 | — | 22.2 | ||||||||||||||
Exploration and project development | — | — | — | — | — | — | ||||||||||||||
Reclamation cost accretion | 0.2 | 0.3 | 0.3 | 0.1 | — | 0.8 | ||||||||||||||
All-in sustaining costs |
$ | 35.5 | $ | 23.7 | $ | 14.3 | $ | 14.0 | $ | — | $ | 87.5 | ||||||||
Silver segment silver ounces sold (Moz) | 0.78 | 1.02 | 0.68 | 0.81 | — | 3.29 | ||||||||||||||
Cash cost per ounce sold | $ | 37.59 | $ | 12.24 | $ | 12.93 | $ | 15.98 | N/A | $ | 19.31 | |||||||||
AISC per ounce sold | $ | 45.43 | $ | 23.16 | $ | 20.91 | $ | 17.33 | N/A | $ | 26.55 | |||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 44.26 | $ | 23.16 | $ | 20.91 | $ | 17.33 | N/A | $ | 26.28 |
SILVER SEGMENT | Three Months Ended December 31, 2022 | ||||||||||||||||
(In millions of USD, except as noted) | La Colorada | Huaron | San Vicente |
Manantial Espejo |
Consolidated Silver Segment |
||||||||||||
Production Costs | $ | 27.9 | $ | 26.9 | $ | 7.2 | $ | 17.4 | $ | 79.6 | |||||||
Restructuring and end-of-mine life severance accruals and payments | — | — | — | (5.7) | (5.9) | ||||||||||||
NRV inventory adjustments | — | — | — | 5.8 | 5.8 | ||||||||||||
On-site direct operating costs | 27.9 | 26.9 | 7.2 | 17.5 | 79.5 | ||||||||||||
Royalties | 0.1 | — | 3.5 | 1.0 | 4.7 | ||||||||||||
Smelting, refining & direct selling costs | 2.9 | 4.9 | 0.8 | 1.8 | 10.5 | ||||||||||||
Cash Costs before by-product credits |
31.0 | 31.8 | 11.5 | 20.4 | 94.7 | ||||||||||||
Silver segment by-product credits | (11.1) | (24.0) | (1.0) | (8.9) | (45.0) | ||||||||||||
Cash Costs |
$ | 19.8 | $ | 7.8 | $ | 10.6 | $ | 11.5 | $ | 49.6 | |||||||
NRV inventory adjustments | — | — | — | (5.8) | (5.8) | ||||||||||||
Sustaining capital | 11.7 | 4.0 | 0.6 | 0.6 | 16.9 | ||||||||||||
Exploration and project development | — | — | — | — | — | ||||||||||||
Reclamation cost accretion | 0.1 | 0.2 | 0.1 | 0.1 | 0.5 | ||||||||||||
All-in sustaining costs |
$ | 31.7 | $ | 11.9 | $ | 11.3 | $ | 6.4 | $ | 61.3 | |||||||
Silver segment silver ounces sold (Moz) | 1.31 | 0.84 | 0.62 | 0.68 | 3.44 | ||||||||||||
Cash cost per ounce sold |
$ | 15.19 | $ | 9.20 | $ | 17.11 | $ | 16.93 | $ | 14.41 | |||||||
AISC per ounce sold | $ | 24.24 | $ | 14.12 | $ | 18.24 | $ | 9.50 | $ | 17.79 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 24.24 | $ | 14.12 | $ | 18.24 | $ | 18.05 | $ | 19.47 |
PAN AMERICAN SILVER CORP. | 42 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
SILVER SEGMENT | Year ended December 31, 2023 | |||||||||||||||||||
(In thousands of USD, except as noted) | La Colorada | Cerro Moro | Huaron | San Vicente | Manantial Espejo | Consolidated Silver Segment | ||||||||||||||
Production Costs | $ | 127.4 | $ | 146.0 | $ | 105.2 | $ | 52.5 | $ | 32.1 | $ | 463.3 | ||||||||
Restructuring and end-of-mine life severance accruals and payments | (1.8) | (1.0) | — | — | (8.8) | (11.6) | ||||||||||||||
Purchase price allocation inventory fair value adjustment | — | (7.1) | — | — | — | (7.1) | ||||||||||||||
NRV inventory adjustments | (3.8) | — | — | — | (0.1) | (3.9) | ||||||||||||||
On-site direct operating costs | 121.9 | 137.8 | 105.2 | 52.5 | 23.2 | 440.7 | ||||||||||||||
Royalties | 0.6 | 14.7 | — | 17.3 | 0.3 | 32.9 | ||||||||||||||
Smelting, refining & direct selling costs | 9.5 | 17.5 | 26.4 | 10.0 | 1.6 | 65.0 | ||||||||||||||
Cash Costs before by-product credits | 132.0 | 170.0 | 131.6 | 79.8 | 25.1 | 538.6 | ||||||||||||||
Silver segment by-product credits | (29.2) | (160.5) | (100.5) | (35.2) | (16.9) | (342.3) | ||||||||||||||
Cash Costs | $ | 102.8 | $ | 9.6 | $ | 31.1 | $ | 44.6 | $ | 8.2 | $ | 196.3 | ||||||||
NRV inventory adjustments | 3.8 | — | — | — | 0.1 | 3.9 | ||||||||||||||
Sustaining capital | 19.5 | 25.4 | 20.4 | 3.8 | 0.2 | 69.2 | ||||||||||||||
Exploration and project development | — | |||||||||||||||||||
Reclamation cost accretion | 0.6 | 0.8 | 1.1 | 0.3 | 0.5 | 3.4 | ||||||||||||||
All-in sustaining costs | $ | 126.7 | $ | 35.8 | $ | 52.6 | $ | 48.7 | $ | 9.0 | $ | 272.8 | ||||||||
Silver segment silver ounces sold (koz) | 4.50 | 3.58 | 3.13 | 2.85 | 0.96 | 15.01 | ||||||||||||||
Cash cost per ounce sold | $ | 22.82 | $ | 2.68 | $ | 9.95 | $ | 15.64 | $ | 8.56 | $ | 13.07 | ||||||||
AISC per ounce sold | $ | 28.13 | $ | 10.00 | $ | 16.82 | $ | 17.09 | $ | 9.39 | $ | 18.17 | ||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 27.30 | $ | 10.00 | $ | 16.82 | $ | 17.09 | $ | 9.30 | $ | 17.91 |
SILVER SEGMENT | Year ended December 31, 2022 | |||||||||||||||||||
(In thousands of USD, except as noted) | La Colorada | Huaron | Morococha | San Vicente | Manantial Espejo | Consolidated Silver Segment | ||||||||||||||
Production Costs | $ | 98.3 | $ | 100.5 | $ | 20.6 | $ | 45.7 | $ | 109.0 | $ | 374.2 | ||||||||
Restructuring and end-of-mine life severance accruals and payments | — | — | (5.3) | — | (15.5) | (20.8) | ||||||||||||||
NRV inventory adjustments | — | — | — | — | 1.1 | 1.1 | ||||||||||||||
On-site direct operating costs | 98.3 | 100.5 | 15.3 | 45.7 | 94.7 | 354.5 | ||||||||||||||
Royalties | 0.7 | — | — | 13.9 | 3.7 | 18.2 | ||||||||||||||
Smelting, refining & direct selling costs | 12.7 | 21.0 | 3.6 | 7.1 | 7.7 | 52.0 | ||||||||||||||
Cash Costs before by-product credits | 111.6 | 121.5 | 18.9 | 66.6 | 106.0 | 424.7 | ||||||||||||||
Silver segment by-product credits | (45.6) | (103.0) | (17.0) | (25.7) | (43.8) | (235.0) | ||||||||||||||
Cash Costs | $ | 66.1 | $ | 18.5 | $ | 1.9 | $ | 41.0 | $ | 62.2 | $ | 189.7 | ||||||||
NRV inventory adjustments | — | — | — | — | (1.1) | (1.1) | ||||||||||||||
Sustaining capital | 29.3 | 13.9 | 0.3 | 7.2 | 4.3 | 55.0 | ||||||||||||||
Exploration and project development | — | |||||||||||||||||||
Reclamation cost accretion | 0.5 | 0.8 | 0.1 | 0.3 | 0.5 | 2.2 | ||||||||||||||
All-in sustaining costs | $ | 95.9 | $ | 33.3 | $ | 2.4 | $ | 48.4 | $ | 65.9 | $ | 245.8 | ||||||||
Silver segment silver ounces sold (koz) | 5.71 | 3.01 | 0.33 | 2.69 | 3.16 | 14.91 | ||||||||||||||
Cash cost per ounce sold | $ | 11.57 | $ | 6.15 | $ | 5.68 | $ | 15.22 | $ | 19.68 | $ | 12.72 | ||||||||
AISC per ounce sold | $ | 16.78 | $ | 11.04 | $ | 7.08 | $ | 17.99 | $ | 20.82 | $ | 16.48 | ||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 16.78 | $ | 11.04 | $ | 7.08 | $ | 17.99 | $ | 21.18 | $ | 16.56 |
PAN AMERICAN SILVER CORP. | 43 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
GOLD SEGMENT | Three Months Ended December 31, 2023 | |||||||||||||||||||||||||
(In millions of USD, except as noted) | Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida |
Dolores | Consolidated Gold Segment | ||||||||||||||||||
Production Costs | $ | 40.7 | $ | 56.3 | $ | 52.0 | $ | 38.4 | $ | 35.1 | $ | 38.2 | $ | 45.8 | $ | 306.5 | ||||||||||
Restructuring and end-of-mine life severance accruals and payments | (0.6) | — | — | — | — | — | — | (0.6) | ||||||||||||||||||
Purchase Price Allocation Inventory Fair Value Adjustment | (1.5) | (6.3) | — | — | — | (1.0) | — | (8.8) | ||||||||||||||||||
NRV inventory adjustments | — | — | — | — | — | — | 1.1 | 1.1 | ||||||||||||||||||
On-site direct operating costs | 38.6 | 50.0 | 52.0 | 38.4 | 35.1 | 37.2 | 46.9 | 298.2 | ||||||||||||||||||
Royalties | 1.5 | — | 2.3 | — | — | 0.4 | 2.5 | 6.6 | ||||||||||||||||||
Smelting, refining & direct selling costs | — | 0.9 | — | — | — | 0.7 | — | 1.6 | ||||||||||||||||||
Cash Costs before by-product credits |
40.0 | 50.9 | 54.4 | 38.4 | 35.1 | 38.2 | 49.4 | 306.4 | ||||||||||||||||||
Gold segment by-product credits | — | (20.8) | (0.3) | (2.2) | (0.3) | (5.7) | (13.5) | (42.9) | ||||||||||||||||||
Cash Costs of Sales | $ | 40.0 | $ | 30.0 | $ | 54.1 | $ | 36.2 | $ | 34.8 | $ | 32.5 | $ | 35.9 | $ | 263.5 | ||||||||||
NRV inventory adjustments | — | — | — | — | — | — | (1.1) | (1.1) | ||||||||||||||||||
Sustaining capital | 15.9 | 7.0 | 9.2 | 16.4 | 12.1 | 9.1 | 0.8 | 70.5 | ||||||||||||||||||
Exploration and project development | — | — | — | — | — | — | — | — | ||||||||||||||||||
Reclamation cost accretion | 0.3 | 0.5 | 0.1 | 0.9 | 1.6 | 0.7 | 2.0 | 6.3 | ||||||||||||||||||
All-in sustaining costs |
$ | 56.2 | $ | 37.6 | $ | 63.4 | $ | 53.5 | $ | 48.5 | $ | 42.3 | $ | 37.5 | $ | 339.1 | ||||||||||
Gold segment gold ounces sold (koz) | 55.0 | 31.9 | 36.5 | 36.8 | 28.0 | 23.7 | 28.6 | 240.4 | ||||||||||||||||||
Cash cost per ounce sold | $ | 727 | $ | 942 | $ | 1,483 | $ | 985 | $ | 1,243 | $ | 1,370 | $ | 1,255 | $ | 1,096 | ||||||||||
AISC per ounce sold | $ | 1,022 | $ | 1,178 | $ | 1,737 | $ | 1,456 | $ | 1,735 | $ | 1,784 | $ | 1,314 | $ | 1,411 | ||||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,022 | $ | 1,178 | $ | 1,737 | $ | 1,456 | $ | 1,735 | $ | 1,784 | $ | 1,354 | $ | 1,415 | ||||||||||
GOLD SEGMENT | Three Months Ended December 31, 2022 | ||||||||||||||||
(In millions of USD, except as noted) | Dolores | Shahuindo | La Arena | Timmins |
Consolidated Gold Segment | ||||||||||||
Production Costs | $ | 55.7 | $ | 44.1 | $ | 30.7 | $ | 42.3 | $ | 172.8 | |||||||
Restructuring and end-of-mine life severance accruals and payments | (0.6) | — | — | — | (0.6) | ||||||||||||
NRV inventory adjustments | (11.2) | — | — | — | (11.2) | ||||||||||||
On-site direct operating costs | 43.9 | 44.1 | 30.7 | 42.3 | 161.0 | ||||||||||||
Royalties | 2.4 | — | — | 1.8 | 4.2 | ||||||||||||
Smelting, refining & direct selling costs | — | — | — | — | — | ||||||||||||
Cash Costs before by-product credits |
46.3 | 44.1 | 30.7 | 44.1 | 165.2 | ||||||||||||
Gold segment by-product credits | (11.6) | (1.9) | (0.2) | (0.2) | (13.9) | ||||||||||||
Cash Costs of Sales | $ | 34.7 | $ | 42.2 | $ | 30.5 | $ | 43.9 | $ | 151.3 | |||||||
NRV inventory adjustments | 11.2 | — | — | — | 11.2 | ||||||||||||
Sustaining capital | 4.6 | 21.4 | 11.4 | 8.3 | 45.7 | ||||||||||||
Exploration and project development | — | — | — | — | — | ||||||||||||
Reclamation cost accretion | 1.4 | 0.6 | 0.7 | — | 2.8 | ||||||||||||
All-in sustaining costs |
$ | 51.9 | $ | 64.2 | $ | 42.7 | $ | 52.2 | $ | 211.0 | |||||||
Gold segment gold ounces sold (koz) | 32.6 | 46.3 | 30.6 | 31.0 | 140.5 | ||||||||||||
Cash cost per ounce sold | $ | 1,064 | $ | 911 | $ | 997 | $ | 1,417 | $ | 1,077 | |||||||
AISC per ounce sold | $ | 1,592 | $ | 1,388 | $ | 1,393 | $ | 1,685 | $ | 1,502 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,248 | $ | 1,388 | $ | 1,393 | $ | 1,685 | $ | 1,422 |
PAN AMERICAN SILVER CORP. | 44 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
GOLD SEGMENT | Year ended December 31, 2023 | |||||||||||||||||||||||||
(In thousands of USD, except as noted) | Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida | Dolores | Consolidated Gold Segment | ||||||||||||||||||
Production Costs | $ | 125.8 | $ | 184.1 | $ | 193.3 | $ | 143.7 | $ | 122.4 | $ | 123.4 | $ | 123.3 | $ | 1,015.9 | ||||||||||
Restructuring and end-of-mine life severance accruals and payments | (1.1) | — | — | — | — | — | (3.3) | (4.4) | ||||||||||||||||||
Purchase price allocation inventory fair value adjustment | (14.1) | (18.7) | — | — | — | (2.0) | — | (34.7) | ||||||||||||||||||
NRV inventory adjustments | — | — | — | — | — | — | 35.7 | 35.7 | ||||||||||||||||||
On-site direct operating costs | 110.6 | 165.4 | 193.3 | 143.7 | 122.4 | 121.5 | 155.7 | 1,012.5 | ||||||||||||||||||
Royalties | 4.2 | 0.1 | 8.1 | — | — | 1.2 | 9.3 | 23.0 | ||||||||||||||||||
Smelting, refining & direct selling costs | 0.6 | 2.4 | 0.2 | — | — | 1.2 | — | 4.4 | ||||||||||||||||||
Cash Costs before by-product credits | 115.3 | 167.9 | 201.6 | 143.7 | 122.4 | 124.0 | 165.1 | 1,039.9 | ||||||||||||||||||
Gold segment by-product credits | (0.1) | (70.7) | (0.4) | (6.6) | (1.1) | (17.0) | (52.5) | (148.3) | ||||||||||||||||||
Cash Costs of Sales | $ | 115.2 | $ | 97.3 | $ | 201.2 | $ | 137.1 | $ | 121.2 | $ | 107.0 | $ | 112.6 | $ | 891.6 | ||||||||||
NRV inventory adjustments | — | — | — | — | — | — | (35.7) | (35.7) | ||||||||||||||||||
Sustaining capital | 46.1 | 18.6 | 39.2 | 63.1 | 21.2 | 22.3 | 8.7 | 219.2 | ||||||||||||||||||
Exploration and project development | — | |||||||||||||||||||||||||
Reclamation cost accretion | 1.1 | 1.6 | 0.5 | 3.6 | 6.6 | 2.2 | 8.1 | 23.6 | ||||||||||||||||||
All-in sustaining costs | $ | 162.4 | $ | 117.4 | $ | 240.8 | $ | 203.8 | $ | 149.0 | $ | 131.5 | $ | 93.8 | $ | 1,098.7 | ||||||||||
Gold segment gold ounces sold | 146.7 | 97.3 | 133.8 | 142.4 | 98.1 | 72.7 | 110.3 | 801.2 | ||||||||||||||||||
Cash cost per ounce sold | $ | 786 | $ | 1,000 | $ | 1,503 | $ | 963 | $ | 1,237 | $ | 1,472 | $ | 1,021 | $ | 1,113 | ||||||||||
AISC per ounce sold | $ | 1,107 | $ | 1,207 | $ | 1,800 | $ | 1,431 | $ | 1,520 | $ | 1,809 | $ | 850 | $ | 1,371 | ||||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,107 | $ | 1,207 | $ | 1,800 | $ | 1,431 | $ | 1,520 | $ | 1,809 | $ | 1,174 | $ | 1,416 | ||||||||||
GOLD SEGMENT | Year ended December 31, 2022 | ||||||||||||||||
(In thousands of USD, except as noted) | Dolores | Shahuindo | La Arena | Timmins |
Consolidated Gold Segment | ||||||||||||
Production Costs | $ | 290.8 | $ | 146.2 | $ | 103.9 | $ | 179.4 | $ | 720.3 | |||||||
Restructuring and end-of-mine life severance accruals and payments | (2.8) | — | — | — | (2.8) | ||||||||||||
NRV inventory adjustments | (98.9) | — | — | — | (98.9) | ||||||||||||
On-site direct operating costs | 189.2 | 146.2 | 103.9 | 179.4 | 618.6 | ||||||||||||
Royalties | 10.8 | — | — | 6.9 | 17.6 | ||||||||||||
Smelting, refining & direct selling costs | — | — | — | 0.2 | 0.2 | ||||||||||||
Cash Costs before by-product credits | 199.9 | 146.2 | 103.9 | 186.4 | 636.4 | ||||||||||||
Gold segment by-product credits | (49.1) | (6.1) | (0.8) | (0.4) | (56.4) | ||||||||||||
Cash Costs of Sales | $ | 150.8 | $ | 140.1 | $ | 103.1 | $ | 186.1 | $ | 580.1 | |||||||
NRV inventory adjustments | 98.9 | — | — | — | 98.9 | ||||||||||||
Sustaining capital | 35.9 | 49.2 | 48.0 | 35.7 | 168.8 | ||||||||||||
Exploration and project development | — | ||||||||||||||||
Reclamation cost accretion | 5.5 | 2.6 | 3.0 | 0.2 | 11.2 | ||||||||||||
All-in sustaining costs | $ | 291.1 | $ | 191.9 | $ | 154.0 | $ | 222.0 | $ | 859.0 | |||||||
Gold segment gold ounces sold | 141.0 | 145.3 | 99.4 | 135.4 | 521.1 | ||||||||||||
Cash cost per ounce sold | $ | 1,070 | $ | 964 | $ | 1,038 | $ | 1,374 | $ | 1,113 | |||||||
AISC per ounce sold | $ | 2,065 | $ | 1,321 | $ | 1,550 | $ | 1,639 | $ | 1,649 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,363 | $ | 1,321 | $ | 1,550 | $ | 1,639 | $ | 1,459 |
PAN AMERICAN SILVER CORP. | 45 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Three Months Ended December 31, |
Year ended December 31, |
|||||||||||||
(In millions of USD, except as noted) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net loss for the period | $ | (67.8) | $ | (172.1) | $ | (104.9) | $ | (340.1) | ||||||
Adjust for: | ||||||||||||||
Impairment charges | 36.2 | — | 78.6 | 99.1 | ||||||||||
Exploration and project development impairment charges | — | 5.4 | — | 5.4 | ||||||||||
Unrealized foreign exchange losses | 5.6 | 3.2 | 5.6 | 12.8 | ||||||||||
Net realizable value heap inventory expense | 5.7 | 29.5 | 11.0 | 137.8 | ||||||||||
Acquired Mines fair value inventory expense | — | — | 32.3 | — | ||||||||||
Derivative unrealized (gains) losses | (5.4) | (2.2) | 5.5 | 2.5 | ||||||||||
(Gains and income) loss from associates | — | — | 0.4 | (45.0) | ||||||||||
Severance provisions | 2.5 | 6.5 | 26.2 | 23.9 | ||||||||||
Mineral property, plant and equipment losses (gains) on sale | 0.4 | 1.1 | (7.9) | 2.4 | ||||||||||
Transaction and integration costs | 0.3 | 157.3 | 25.3 | 157.3 | ||||||||||
Investment (income) loss | (3.3) | (1.2) | 5.5 | 16.2 | ||||||||||
Closure and decommissioning liability | 13.8 | 4.7 | 15.7 | 4.7 | ||||||||||
Effect of taxes on adjusting items | 2.9 | (17.9) | (18.0) | (37.6) | ||||||||||
Effect of foreign exchange on taxes | (7.2) | (19.1) | (36.0) | (21.5) | ||||||||||
Total adjustments | $ | 51.5 | $ | 167.3 | $ | 144.2 | $ | 358.0 | ||||||
Adjusted earnings (loss) for the period | $ | (16.3) | $ | (4.8) | $ | 39.3 | $ | 17.9 | ||||||
Weighted average shares for the period | 364.7 | 210.6 | 326.5 | 210.5 | ||||||||||
Adjusted earnings (loss) per share for the period | $ | (0.04) | $ | (0.02) | $ | 0.12 | $ | 0.09 |
PAN AMERICAN SILVER CORP. | 46 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 47 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Silver Price | Gold Price | |||||||||||||||||||||||||
$1,650 | $1,750 | $1,850 | $1,950 | $2,050 | $2,150 | $2,250 | ||||||||||||||||||||
$20.50 | 86% | 90% | 94% | 97% | 101% | 105% | 109% | |||||||||||||||||||
$21.50 | 87% | 91% | 94% | 98% | 102% | 106% | 110% | |||||||||||||||||||
$22.50 | 88% | 91% | 95% | 99% | 103% | 107% | 111% | |||||||||||||||||||
$23.50 | 89% | 92% | 96% | 100% | 104% | 108% | 111% | |||||||||||||||||||
$24.50 | 89% | 93% | 97% | 101% | 105% | 109% | 112% | |||||||||||||||||||
$25.50 | 90% | 94% | 98% | 102% | 106% | 109% | 113% | |||||||||||||||||||
$26.50 | 91% | 95% | 99% | 103% | 106% | 110% | 114% |
Zinc Price | Gold Price | |||||||||||||||||||||||||
$1,650 | $1,750 | $1,850 | $1,950 | $2,050 | $2,150 | $2,250 | ||||||||||||||||||||
$1,900 | 119% | 115% | 111% | 107% | 103% | 99% | 96% | |||||||||||||||||||
$2,100 | 116% | 112% | 109% | 105% | 101% | 97% | 93% | |||||||||||||||||||
$2,300 | 114% | 110% | 106% | 102% | 99% | 95% | 91% | |||||||||||||||||||
$2,500 | 112% | 108% | 104% | 100% | 96% | 92% | 88% | |||||||||||||||||||
$2,700 | 110% | 106% | 102% | 98% | 94% | 90% | 87% | |||||||||||||||||||
$2,900 | 108% | 104% | 100% | 96% | 93% | 89% | 85% | |||||||||||||||||||
$3,100 | 106% | 103% | 99% | 95% | 91% | 87% | 83% |
Zinc Price | Silver Price | |||||||||||||||||||||||||
$20.50 | $21.50 | $22.50 | $23.50 | $24.50 | $25.50 | $26.50 | ||||||||||||||||||||
$1,900 | 102% | 101% | 101% | 100% | 100% | 99% | 99% | |||||||||||||||||||
$2,100 | 102% | 101% | 101% | 100% | 100% | 99% | 99% | |||||||||||||||||||
$2,300 | 102% | 101% | 101% | 100% | 100% | 99% | 99% | |||||||||||||||||||
$2,500 | 102% | 101% | 101% | 100% | 99% | 99% | 98% | |||||||||||||||||||
$2,700 | 101% | 101% | 100% | 100% | 99% | 99% | 98% | |||||||||||||||||||
$2,900 | 101% | 101% | 100% | 100% | 99% | 99% | 98% | |||||||||||||||||||
$3,100 | 101% | 101% | 100% | 100% | 99% | 99% | 98% |
PAN AMERICAN SILVER CORP. | 48 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Three months ended December 31, |
Year ended December 31, |
|||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Zinc gains | $ | — | $ | (0.1) | $ | — | $ | 1.7 | ||||||
Diesel gains | — | 0.3 | — | 4.5 | ||||||||||
Other | (0.2) | 0.2 | 0.6 | (0.9) | ||||||||||
$ | (0.2) | $ | 0.5 | $ | 0.6 | $ | 5.3 |
PAN AMERICAN SILVER CORP. | 49 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 50 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
USD Notional | Weighted Average USD Forward Rate | Weighted Average USD Put Rate | Weighted Average USD Call Rate | Expiry Dates | |||||||||||||
Canadian dollar collars | $ | 18.0 | $ | 1.36 | $ | 1.42 | January 2024 to December 2024 | ||||||||||
Canadian dollar forwards(1) |
$ | 72.0 | $ | 1.39 | January 2024 to December 2024 | ||||||||||||
Peruvian sol forwards | $ | 36.0 | $ | 3.86 | January 2024 to December 2024 | ||||||||||||
Brazilian real forwards | $ | 12.0 | $ | 5.19 | January 2024 to December 2024 | ||||||||||||
Chilean peso collar(2) |
$ | 24.0 | $ | 905 | $ | 956 | January 2024 to December 2024 | ||||||||||
Chilean peso forwards | $ | 48.0 | $ | 910 | January 2024 to December 2024 |
Three Months Ended December 31, |
Year ended December 31, |
|||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Mexican peso gains | $ | 0.1 | $ | 0.7 | $ | 2.5 | $ | 1.5 | ||||||
Peruvian sol gains | 1.4 | 2.5 | 2.9 | 3.5 | ||||||||||
Canadian dollar gains (losses) | 3.1 | 2.0 | 4.1 | (3.0) | ||||||||||
Chilean peso losses | 1.8 | — | (3.0) | — | ||||||||||
Brazilian real gains | 0.9 | — | 1.2 | — | ||||||||||
$ | 7.3 | $ | 5.2 | $ | 7.7 | $ | 2.0 |
PAN AMERICAN SILVER CORP. | 51 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
CLP/USD | CAD/USD | |||||||||||||||||||||||||
$1.15 | $1.22 | $1.29 | $1.36 | $1.43 | $1.5 | $1.57 | ||||||||||||||||||||
$700 | 105% | 104% | 104% | 103% | 103% | 102% | 102% | |||||||||||||||||||
$750 | 104% | 103% | 102% | 102% | 101% | 101% | 100% | |||||||||||||||||||
$800 | 103% | 102% | 101% | 101% | 100% | 100% | 99% | |||||||||||||||||||
$850 | 102% | 101% | 101% | 100% | 99% | 99% | 99% | |||||||||||||||||||
$900 | 101% | 100% | 100% | 99% | 99% | 98% | 98% | |||||||||||||||||||
$950 | 100% | 100% | 99% | 98% | 98% | 97% | 97% | |||||||||||||||||||
$1,000 | 100% | 99% | 98% | 98% | 97% | 97% | 96% |
PEN/USD | BRL/USD | |||||||||||||||||||||||||
$3.5 | $4 | $4.5 | $5 | $5.5 | $6 | $6.50 | ||||||||||||||||||||
$3.15 | 105% | 104% | 103% | 102% | 101% | 101% | 100% | |||||||||||||||||||
$3.35 | 105% | 103% | 102% | 101% | 100% | 100% | 99% | |||||||||||||||||||
$3.55 | 104% | 103% | 101% | 101% | 100% | 99% | 99% | |||||||||||||||||||
$3.75 | 103% | 102% | 101% | 100% | 99% | 99% | 98% | |||||||||||||||||||
$3.95 | 103% | 102% | 100% | 100% | 99% | 98% | 98% | |||||||||||||||||||
$4.15 | 103% | 101% | 100% | 99% | 98% | 98% | 97% | |||||||||||||||||||
$4.35 | 102% | 101% | 100% | 99% | 98% | 97% | 97% |
PAN AMERICAN SILVER CORP. | 52 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 53 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 54 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 55 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 56 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 57 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
RELATED PARTY TRANSACTIONS |
DISCLOSURE AND INTERNAL CONTROL PROCEDURES |
PAN AMERICAN SILVER CORP. | 58 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 59 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
MINERAL RESERVES AND MINERAL RESOURCES |
Pan American Silver Corporation Mineral Reserves as of June 30, 2023(1)(2) |
||||||||||||||||||||||||||||||||
Property | Location | Classification | Tonnes (Mt) | Ag (g/t) | Contained Ag (Moz) | Au (g/t) | Contained Au (koz) | Cu (%) | Pb (%) | Zn (%) | ||||||||||||||||||||||
Silver Segment | ||||||||||||||||||||||||||||||||
Huaron | Peru | Proven | 6.0 | 174 | 33.4 | 0.62 | 1.53 | 3.06 | ||||||||||||||||||||||||
Probable | 3.3 | 166 | 17.5 | 0.45 | 1.74 | 3.11 | ||||||||||||||||||||||||||
La Colorada | Mexico | Proven | 5.0 | 296 | 47.2 | 0.21 | 33.8 | 1.25 | 2.15 | |||||||||||||||||||||||
Probable | 4.2 | 292 | 39.1 | 0.19 | 25.3 | 1.26 | 2.22 | |||||||||||||||||||||||||
San Vicente (95%)(3) |
Bolivia | Proven | 0.7 | 341 | 8.2 | 0.34 | 0.35 | 3.67 | ||||||||||||||||||||||||
Probable | 0.7 | 278 | 6.4 | 0.27 | 0.21 | 3.30 | ||||||||||||||||||||||||||
Escobal | Guatemala | Proven | 2.5 | 486 | 39.5 | 0.42 | 34.2 | 1.02 | 1.75 | |||||||||||||||||||||||
Probable | 22.1 | 316 | 225.0 | 0.34 | 243.8 | 0.77 | 1.25 | |||||||||||||||||||||||||
Cerro Moro | Argentina | Proven | 0.5 | 330 | 5.7 | 6.33 | 109.7 | |||||||||||||||||||||||||
Probable | 0.7 | 237 | 5.6 | 8.18 | 192.2 | |||||||||||||||||||||||||||
Total Silver Segment(4) |
45.8 | 291 | 427.6 | 0.57 | 639.1 | 0.52 | 1.04 | 1.92 | ||||||||||||||||||||||||
La Arena | Peru | Proven | 15.1 | 0.38 | 183.4 | |||||||||||||||||||||||||||
Probable | 17.5 | 0.28 | 159.7 | |||||||||||||||||||||||||||||
Dolores | Mexico | Proven | 6.3 | 17 | 3.4 | 0.53 | 108.6 | |||||||||||||||||||||||||
Probable | 1.3 | 24 | 1.0 | 0.53 | 22.1 | |||||||||||||||||||||||||||
Shahuindo | Peru | Proven | 58.8 | 8 | 15.1 | 0.51 | 967.8 | |||||||||||||||||||||||||
Probable | 33.6 | 6 | 6.8 | 0.40 | 436.8 | |||||||||||||||||||||||||||
Timmins | Canada | Proven | 5.0 | 2.93 | 473.5 | |||||||||||||||||||||||||||
Probable | 4.7 | 2.80 | 419.4 | |||||||||||||||||||||||||||||
Jacobina | Brazil | Proven | 27.0 | 2.00 | 1,737.8 | |||||||||||||||||||||||||||
Probable | 21.3 | 2.06 | 1,404.8 | |||||||||||||||||||||||||||||
El Peñon | Chile | Proven | 0.9 | 213 | 6.2 | 5.35 | 155.6 | |||||||||||||||||||||||||
Probable | 5.2 | 148 | 24.6 | 4.21 | 699.5 | |||||||||||||||||||||||||||
Minera Florida | Chile | Proven | 0.9 | 26 | 0.7 | 3.25 | 89.6 | 1.15 | ||||||||||||||||||||||||
Probable | 2.0 | 20 | 1.3 | 3.28 | 210.6 | 0.93 | ||||||||||||||||||||||||||
Total Gold Segment(4) |
199.5 | 17 | 59.1 | 1.1 | 7,069.3 | 0.99 | ||||||||||||||||||||||||||
Total Gold and Silver Segments(4) |
Proven + Probable | 245.2 | 98 | 486.8 | 1.02 | 7,708.4 | 0.52 | 1.04 | 1.87 |
PAN AMERICAN SILVER CORP. | 60 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Pan American Silver Corporation Measured and Indicated Mineral Resources as of June 30, 2023(1)(2)(3) |
||||||||||||||||||||||||||||||||
Property | Location | Classification | Tonnes (Mt) | Ag (g/t) | Contained Ag (Moz) | Au (g/t) | Contained Au (koz) | Cu (%) | Pb (%) | Zn (%) | ||||||||||||||||||||||
Huaron | Peru | Measured | 1.4 | 180 | 8.2 | 0.30 | 1.95 | 3.15 | ||||||||||||||||||||||||
Indicated | 1.8 | 173 | 10.2 | 0.30 | 1.86 | 3.06 | ||||||||||||||||||||||||||
La Colorada | Peru | Measured | 0.7 | 153 | 3.6 | 0.13 | 3.0 | 0.64 | 1.18 | |||||||||||||||||||||||
Indicated | 2.5 | 182 | 14.6 | 0.19 | 15.0 | 0.87 | 1.41 | |||||||||||||||||||||||||
La Colorada Skarn(4) |
Mexico | Indicated | 173.6 | 33 | 183.2 | 1.32 | 2.79 | |||||||||||||||||||||||||
Manantial Espejo | Argentina | Measured | 0.3 | 164 | 1.7 | 2.40 | 24.7 | |||||||||||||||||||||||||
Indicated | 1.0 | 149 | 4.9 | 2.79 | 91.5 | |||||||||||||||||||||||||||
Joaquin | Argentina | Measured | 0.1 | 360 | 1.5 | 0.28 | 1.2 | |||||||||||||||||||||||||
Indicated | 0.4 | 351 | 4.2 | 0.28 | 3.4 | |||||||||||||||||||||||||||
San Vicente (95%)(5) |
Bolivia | Measured | 0.8 | 200 | 5.1 | 0.19 | 0.23 | 2.57 | ||||||||||||||||||||||||
Indicated | 0.3 | 213 | 1.9 | 0.20 | 0.24 | 2.78 | ||||||||||||||||||||||||||
Navidad | Argentina | Measured | 15.4 | 137 | 67.8 | 0.10 | 1.44 | |||||||||||||||||||||||||
Indicated | 139.8 | 126 | 564.5 | 0.04 | 0.79 | |||||||||||||||||||||||||||
Escobal | Guatemala | Measured | 2.3 | 251 | 18.6 | 0.23 | 16.7 | 0.31 | 0.59 | |||||||||||||||||||||||
Indicated | 14.2 | 201 | 91.6 | 0.20 | 93.0 | 0.38 | 0.66 | |||||||||||||||||||||||||
Cerro Moro | Argentina | Measured | 0.1 | 287 | 1.1 | 7.09 | 26.5 | |||||||||||||||||||||||||
Indicated | 0.6 | 349 | 7.1 | 4.57 | 93.0 | |||||||||||||||||||||||||||
Total Silver Segment(6) |
355.4 | 87 | 989.7 | 0.51 | 368.0 | 0.05 | 1.07 | 2.59 | ||||||||||||||||||||||||
Dolores | Mexico | Measured | 5.5 | 23 | 4.0 | 0.33 | 57.7 | |||||||||||||||||||||||||
Indicated | 0.7 | 70 | 1.5 | 1.35 | 28.7 | |||||||||||||||||||||||||||
La Bolsa | Mexico | Measured | 10.8 | 10 | 3.5 | 0.7 | 242.8 | |||||||||||||||||||||||||
Indicated | 10.6 | 8 | 2.7 | 0.54 | 184.3 | |||||||||||||||||||||||||||
Pico Machay | Peru | Measured | 4.7 | 0.91 | 137.5 | |||||||||||||||||||||||||||
Indicated | 5.9 | 0.67 | 127.1 | |||||||||||||||||||||||||||||
La Arena | Peru | Measured | 1.2 | 0.25 | 9.5 | |||||||||||||||||||||||||||
Indicated | 2.1 | 0.16 | 11.1 | |||||||||||||||||||||||||||||
Shahuindo | Peru | Measured | 5.4 | 6 | 1.1 | 0.31 | 53.6 | |||||||||||||||||||||||||
Indicated | 7.1 | 5 | 1.2 | 0.33 | 75.8 | |||||||||||||||||||||||||||
Timmins | Canada | Measured | 2.6 | 2.77 | 233 | |||||||||||||||||||||||||||
Indicated | 2.3 | 2.48 | 185.4 | |||||||||||||||||||||||||||||
Jacobina | Brazil | Measured | 49.1 | 1.61 | 2541.3 | |||||||||||||||||||||||||||
Indicated | 45.3 | 1.48 | 2162.4 | |||||||||||||||||||||||||||||
El Peñon | Chile | Measured | 1.1 | 146 | 5.2 | 4.1 | 145.2 | |||||||||||||||||||||||||
Indicated | 6.7 | 99 | 21.3 | 3.04 | 650.2 | |||||||||||||||||||||||||||
Minera Florida | Chile | Measured | 1.7 | 18 | 1.0 | 3.21 | 172.6 | 1.23 | ||||||||||||||||||||||||
Indicated | 4.5 | 18 | 2.6 | 3.32 | 481.3 | 1.03 | ||||||||||||||||||||||||||
La Arena II | Peru | Measured | 154.1 | 0.25 | 1,255.4 | 0.38 | ||||||||||||||||||||||||||
Indicated | 554.6 | 0.23 | 4,044.9 | 0.37 | ||||||||||||||||||||||||||||
La Pepa (80%) | Chile | Measured | 47.1 | 0.61 | 922.8 | |||||||||||||||||||||||||||
Indicated | 52.3 | 0.49 | 824.3 | |||||||||||||||||||||||||||||
Lavra Velha | Brazil | Indicated | 4.5 | 1.96 | 282.1 | |||||||||||||||||||||||||||
Whitney(82.8%) | Canada | Measured | 0.8 | 7.02 | 180.7 | |||||||||||||||||||||||||||
Indicated | 1.9 | 6.77 | 406.3 | |||||||||||||||||||||||||||||
Gold River | Canada | Indicated | 0.7 | 5.29 | 117.4 | |||||||||||||||||||||||||||
Marlhill | Canada | Indicated | 0.4 | 4.52 | 57.4 | |||||||||||||||||||||||||||
Vogel | Canada | Indicated | 2.2 | 1.75 | 125 | |||||||||||||||||||||||||||
Total Gold Segment(6) |
985.8 | 25 | 44.1 | 0.50 | 15,715.6 | 0.37 | 1.09 | |||||||||||||||||||||||||
Total Gold and Silver Segments(6) |
Measured + Indicated | 1,341.2 | 79 | 1,033.8 | 0.50 | 16,083.6 | 0.31 | 1.07 | 2.55 |
PAN AMERICAN SILVER CORP. | 61 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Pan American Silver Corporation Inferred Mineral Resources as of June 30, 2023(1)(2)(3) |
||||||||||||||||||||||||||||||||
Property | Location | Classification | Tonnes (Mt) | Ag (g/t) |
Contained Ag (Moz) | Au (g/t) |
Contained Au (koz) | Cu (%) | Pb (%) | Zn (%) | ||||||||||||||||||||||
Silver Segment | ||||||||||||||||||||||||||||||||
Huaron | Peru | Inferred | 5.9 | 164 | 31.2 | 0.35 | 1.76 | 2.87 | ||||||||||||||||||||||||
La Colorada | Mexico | Inferred | 14.7 | 174 | 82.2 | 0.20 | 93.0 | 0.94 | 1.67 | |||||||||||||||||||||||
La Colorada Skarn(4) |
Mexico | Inferred | 103.6 | 35 | 116.2 | 1.03 | 2.47 | |||||||||||||||||||||||||
Manantial Espejo | Argentina | Inferred | 0.5 | 106 | 1.8 | 1.49 | 25.2 | |||||||||||||||||||||||||
San Vicente (95%)(5) |
Bolivia | Inferred | 1.5 | 188 | 9.2 | 0.22 | 0.27 | 2.63 | ||||||||||||||||||||||||
Cerro Moro | Argentina | Inferred | 0.7 | 220 | 4.9 | 8.66 | 191.6 | |||||||||||||||||||||||||
Navidad | Argentina | Inferred | 45.9 | 81 | 119.4 | 0.02 | 0.57 | |||||||||||||||||||||||||
Joaquin | Argentina | Inferred | 0.2 | 280 | 1.4 | 0.25 | 1.2 | |||||||||||||||||||||||||
Escobal | Guatemala | Inferred | 1.9 | 180 | 10.7 | 0.90 | 53.7 | 0.22 | 0.42 | |||||||||||||||||||||||
Total Silver Segment(6) |
174.9 | 67 | 377.0 | 0.63 | 364.8 | 0.06 | 0.91 | 2.37 | ||||||||||||||||||||||||
Gold Segment | ||||||||||||||||||||||||||||||||
Dolores | Mexico | Inferred | 1.3 | 40 | 1.7 | 1.18 | 50.3 | |||||||||||||||||||||||||
La Bolsa | Mexico | Inferred | 13.7 | 8 | 3.3 | 0.51 | 224.6 | |||||||||||||||||||||||||
Pico Machay | Peru | Inferred | 23.9 | 0.58 | 445.7 | |||||||||||||||||||||||||||
La Arena | Peru | Inferred | 5.8 | 0.23 | 43.4 | |||||||||||||||||||||||||||
Shahuindo | Peru | Inferred | 10.1 | 8 | 2.4 | 0.38 | 124.4 | |||||||||||||||||||||||||
Timmins | Canada | Inferred | 3.8 | 3.11 | 383.5 | |||||||||||||||||||||||||||
Jacobina | Brazil | Inferred | 40.1 | 1.56 | 2,014.7 | |||||||||||||||||||||||||||
El Peñon | Chile | Inferred | 18.5 | 51 | 30.0 | 1.36 | 804.5 | |||||||||||||||||||||||||
Minera Florida | Chile | Inferred | 4.9 | 15 | 2.4 | 2.93 | 461.1 | 0.83 | ||||||||||||||||||||||||
La Arena II | Peru | Inferred | 68.2 | 0.21 | 454.6 | 0.24 | ||||||||||||||||||||||||||
Whitney (82.8%) | Canada | Inferred | 0.8 | 5.34 | 141.4 | |||||||||||||||||||||||||||
Arco Sul | Brazil | Inferred | 6.2 | 3.08 | 614.2 | |||||||||||||||||||||||||||
La Pepa (80%) | Chile | Inferred | 20.0 | 0.46 | 296.1 | |||||||||||||||||||||||||||
Lavra Velha | Brasil | Inferred | 4.7 | 1.56 | 238.0 | |||||||||||||||||||||||||||
Gold River | Canada | Inferred | 5.3 | 6.06 | 1,027.4 | |||||||||||||||||||||||||||
Vogel | Canada | Inferred | 1.5 | 3.60 | 168.8 | |||||||||||||||||||||||||||
Total Gold Segment(6) |
228.9 | 26 | 39.9 | 1.02 | 7,492.7 | 0.24 | 0.83 | |||||||||||||||||||||||||
Total Gold and Silver Segments(6) |
Inferred | 403.8 | 58 | 416.9 | 0.99 | 7,857.5 | 0.16 | 0.91 | 2.31 |
PAN AMERICAN SILVER CORP. | 62 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
Metal Price Assumptions Used to Estimate Mineral Reserves and Mineral Resources as of June 30, 2023 | ||||||||||||||||||||
Property | Category | Ag US$/oz | Au US$/oz | Cu US$/t | Pb US$/t | Zn US$/t | ||||||||||||||
Huaron | All categories | 19.00 | 1,300 | 7,000 | 2,000 | 2,600 | ||||||||||||||
La Colorada | All categories | 19.00 | 1,300 | 7,000 | 2,000 | 2,600 | ||||||||||||||
La Colorada Skarn | Resource | 22.00 | 2,200 | 2,800 | ||||||||||||||||
Dolores | Reserves | 19.00 | 1,600 | |||||||||||||||||
Resources | 22.00 | 1,700 | ||||||||||||||||||
La Bolsa | All categories | 14.00 | 825 | |||||||||||||||||
Manantial Espejo | Resources | 22.00 | 1,700 | |||||||||||||||||
San Vicente | All categories | 19.00 | 1,300 | 7000 | 2000 | 2600 | ||||||||||||||
Navidad | All categories | 12.52 | 1100 | |||||||||||||||||
Pico Machay | All categories | 700 | ||||||||||||||||||
Joaquin | Resources | 22.00 | 1,700 | |||||||||||||||||
Escobal | All categories | 20.00 | 1,300 | 2204 | 2424 | |||||||||||||||
Shahuindo | Reserves | 19.00 | 1,500 | |||||||||||||||||
Resources | 22.00 | 1,700 | ||||||||||||||||||
La Arena | Reserves | 1,500 | ||||||||||||||||||
Resources | 1,700 | |||||||||||||||||||
La Arena II | All categories | 1,500 | 8816 | |||||||||||||||||
Bell Creek | All categories | 19.00 | 1,500 | |||||||||||||||||
Timmins | All categories | 19.00 | 1,500 | |||||||||||||||||
Whitney | Resources | 1,200 | ||||||||||||||||||
Gold River | Resources | 1,200 | ||||||||||||||||||
Marlhill | Resources | 1,125 | ||||||||||||||||||
Vogel | Inside pit | 1,150 | ||||||||||||||||||
Below pit | 1,150 | |||||||||||||||||||
Jacobina | Reserves | 1,500 | ||||||||||||||||||
Resources | 1,700 | |||||||||||||||||||
Cerro Moro | Reserves | 19.00 | 1,600 | |||||||||||||||||
Resources | 22.00 | 1,700 | ||||||||||||||||||
El Peñon | Reserves | 18.00 | 1,250 | |||||||||||||||||
Resources | 18.00 | 1,250 | ||||||||||||||||||
Minera Florida | Reserves | 19.00 | 1,500 | 2600 | ||||||||||||||||
Resources | 22.00 | 1,700 | 2,800 | |||||||||||||||||
Arco Sul | Resources | 1,250 | ||||||||||||||||||
La Pepa | Resources | 1,650 | ||||||||||||||||||
Lavra Velha | Resources | 1,650 |
PAN AMERICAN SILVER CORP. | 63 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 64 |
Management Discussion and Analysis |
|||||
For the years ended December 31, 2023 and 2022 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 65 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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PAN AMERICAN SILVER CORP. | 1 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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PAN AMERICAN SILVER CORP. | 2 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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Q1 | Q2 | Q3 | Q4 | FY 2024 | |||||||||||||
Silver Production (million ounces) | 4.75 - 5.30 | 5.36 - 5.78 | 5.44 - 5.97 | 5.45 - 5.95 | 21.00 - 23.00 | ||||||||||||
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 - 17.50 | 10.50 - 12.90 | 4.60 - 7.70 | 11.70 - 14.10 | ||||||||||||
Silver Segment AISC (1) |
21.30 - 23.30 | 20.20 - 22.20 | 15.60 - 18.00 | 7.70 - 11.00 | 16.00 - 18.50 | ||||||||||||
Gold Segment Cash Costs (1) |
1,270 - 1,370 | 1,170 - 1,240 | 1,140 - 1,220 | 1,080 - 1,160 | 1,165 - 1,260 | ||||||||||||
Gold Segment AISC (1) |
1,500 - 1,700 | 1,500 - 1,590 | 1,460 - 1,570 | 1,400 - 1,500 | 1,475 - 1,575 |
Zinc (kt) |
Lead (kt) |
Copper (kt) |
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42 - 46 | 19 - 22 | 4 |
PAN AMERICAN SILVER CORP. | 3 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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($ millions) |
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Sustaining Capital | 295.0 - 310.0 | ||||
Project Capital | 80.0 - 85.0 | ||||
Total Capital Expenditures | 375.0 - 395.0 | ||||
Total Reclamation Expenditures | 35.0 - 40.0 | ||||
Total Care and Maintenance | 25.0 - 30.0 | ||||
General and Administrative Expense | 70.0 - 75.0 | ||||
Exploration and Project Development Expense | 10.0 - 12.0 | ||||
Income Tax Payments | 95.0 - 100.0 |
PAN AMERICAN SILVER CORP. | 4 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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December 31, 2023 |
December 31, 2022 |
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Weighted average shares during period (thousands) | 326,540 | 210,521 | ||||||||||||
Shares outstanding end of period (thousands) | 364,660 | 210,681 | ||||||||||||
Three months ended December 31, |
Year ended December 31, |
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2023 | 2022 | 2023 | 2022 | |||||||||||
FINANCIAL | ||||||||||||||
Revenue | $ | 669.6 | $ | 375.4 | $ | 2,316.1 | $ | 1,494.7 | ||||||
Mine operating earnings | $ | 64.9 | $ | 35.1 | $ | 296.8 | $ | 48.4 | ||||||
Net loss | $ | (67.8) | $ | (172.1) | $ | (104.9) | $ | (340.1) | ||||||
Basic loss per share(1) |
$ | (0.19) | $ | (0.82) | $ | (0.32) | $ | (1.62) | ||||||
Adjusted (loss) earnings(2) |
$ | (16.3) | $ | (4.8) | $ | 39.3 | $ | 17.9 | ||||||
Basic adjusted (loss) earnings per share(1) |
$ | (0.04) | $ | (0.02) | $ | 0.12 | $ | 0.09 | ||||||
Net cash generated from (used in) operating activities | $ | 167.4 | $ | (112.1) | $ | 450.2 | $ | 31.8 | ||||||
Net cash generated from (used in) operating activities before changes in working capital(2) |
$ | 111.3 | $ | (83.1) | $ | 381.3 | $ | 73.8 | ||||||
Sustaining capital expenditures(2) |
$ | 92.6 | $ | 62.6 | $ | 288.5 | $ | 223.8 | ||||||
Non-sustaining capital expenditures(2) |
$ | 41.8 | $ | 15.1 | $ | 141.3 | $ | 71.0 | ||||||
Cash dividend per share | $ | 0.10 | $ | 0.10 | $ | 0.40 | $ | 0.45 | ||||||
PRODUCTION | ||||||||||||||
Silver (thousand ounces) | 4,835 | 4,763 | 20,437 | 18,455 | ||||||||||
Gold (thousand ounces) | 268 | 164 | 883 | 553 | ||||||||||
Zinc (thousand tonnes) | 9.4 | 10.5 | 38.8 | 38.6 | ||||||||||
Lead (thousand tonnes) | 4.2 | 5.0 | 18.7 | 18.7 | ||||||||||
Copper (thousand tonnes) | 1.4 | 1.3 | 5.0 | 5.3 | ||||||||||
CASH COSTS(2) ($/ounce) |
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Silver Segment(3) |
19.31 | 14.41 | 13.07 | 12.72 | ||||||||||
Gold Segment(3) |
1,096 | 1,077 | 1,113 | 1,113 | ||||||||||
AISC(2) ($/ounce) |
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Silver Segment(3) |
26.55 | 17.79 | 18.17 | 16.48 | ||||||||||
Gold Segment(3) |
1,411 | 1,502 | 1,371 | 1,649 | ||||||||||
AVERAGE REALIZED PRICES(4) |
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Silver ($/ounce) | 22.33 | 21.17 | 22.94 | 21.59 | ||||||||||
Gold ($/ounce) | 1,980 | 1,736 | 1,951 | 1,792 | ||||||||||
Zinc ($/tonne) | 2,493 | 2,878 | 2,656 | 3,472 | ||||||||||
Lead ($/tonne) | 2,121 | 2,111 | 2,146 | 2,148 | ||||||||||
Copper ($/tonne) | 8,146 | 7,957 | 8,475 | 8,979 |
PAN AMERICAN SILVER CORP. | 5 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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Three months ended December 31, |
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2023 | 2022 | |||||||
Revenue | $ | 669.6 | $ | 375.4 | ||||
Cost of sales | ||||||||
Production costs | (441.3) | (252.2) | ||||||
Depreciation and amortization | (143.1) | (79.2) | ||||||
Royalties | (20.3) | (8.9) | ||||||
(604.7) | (340.3) | |||||||
Mine operating earnings | 64.9 | 35.1 | ||||||
General and administrative | (18.5) | (3.1) | ||||||
Exploration and project development | (3.8) | (8.5) | ||||||
Mine care and maintenance | (9.1) | (10.5) | ||||||
Foreign exchange (losses) gains | (7.9) | 0.8 | ||||||
Impairment charges | (36.2) | — | ||||||
Derivative gains | 7.1 | 5.8 | ||||||
Losses on sale of mineral properties, plant and equipment | (0.4) | (1.1) | ||||||
Transaction and Integration costs | (0.3) | (157.4) | ||||||
Other expense | (22.6) | (9.2) | ||||||
Loss from operations | (26.8) | (148.1) | ||||||
Investment income | 3.3 | 1.3 | ||||||
Interest and finance expense | (24.5) | (6.4) | ||||||
Loss before income taxes | (48.0) | (153.2) | ||||||
Income tax expense | (19.8) | (18.9) | ||||||
Net loss | $ | (67.8) | $ | (172.1) | ||||
Net loss attributable to: | ||||||||
Equity holders of the Company | (68.0) | (172.7) | ||||||
Non-controlling interests | 0.2 | 0.6 | ||||||
$ | (67.8) | $ | (172.1) | |||||
Other comprehensive (loss) earnings, net of taxes | ||||||||
Items that will not be reclassified to net (loss) earnings: | ||||||||
Unrealized gain on long-term investment | 0.5 | 22.0 | ||||||
Remeasurement of retirement benefit plan | (2.6) | — | ||||||
Income tax expense related to long-term investments | (0.9) | (4.6) | ||||||
Total other comprehensive (loss) earnings | $ | (3.0) | $ | 17.4 | ||||
Total comprehensive loss | $ | (70.8) | $ | (154.7) | ||||
Total comprehensive (loss) earnings attributable to: | ||||||||
Equity holders of the Company | $ | (71.0) | $ | (155.3) | ||||
Non-controlling interests | 0.2 | 0.6 | ||||||
$ | (70.8) | $ | (154.7) | |||||
Loss per share attributable to common shareholders | ||||||||
Basic loss per share | $ | (0.19) | $ | (0.82) | ||||
Diluted loss per share | $ | (0.19) | $ | (0.82) | ||||
Weighted average shares outstanding (in 000’s) Basic | 364,678 | 210,573 | ||||||
Weighted average shares outstanding (in 000’s) Diluted | 364,678 | 210,573 |
PAN AMERICAN SILVER CORP. | 6 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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Three months ended December 31, |
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2023 | 2022 | |||||||
Operating activities | ||||||||
Net loss for the period | $ | (67.8) | $ | (172.1) | ||||
Income tax expense | 19.8 | 18.9 | ||||||
Depreciation and amortization | 143.1 | 79.2 | ||||||
Impairment charges | 36.2 | — | ||||||
Net realizable value inventory (recovery) charge | (0.2) | 5.5 | ||||||
Accretion on closure and decommissioning provision | 8.2 | 3.7 | ||||||
Investment loss | (3.3) | (1.3) | ||||||
Interest paid | (11.1) | (2.2) | ||||||
Interest expense | 13.2 | 2.2 | ||||||
Interest received | 4.9 | 1.2 | ||||||
Income taxes paid | (32.4) | (16.7) | ||||||
Other operating activities | 0.7 | (1.5) | ||||||
Net change in non-cash working capital items | 56.1 | (29.0) | ||||||
$ | 167.4 | $ | (112.1) | |||||
Investing activities | ||||||||
Payments for mineral properties, plant and equipment | $ | (118.7) | $ | (72.3) | ||||
Proceeds from disposition of mineral properties, plant and equipment | 0.9 | 0.5 | ||||||
Cash proceeds from sale of subsidiaries | 45.5 | — | ||||||
Net proceeds from derivatives | 1.7 | 3.6 | ||||||
$ | (70.6) | $ | (68.2) | |||||
Financing activities | ||||||||
Proceeds from common shares issued | $ | — | $ | 0.1 | ||||
Distributions to non-controlling interests | (0.4) | (0.3) | ||||||
Dividends paid | (36.4) | (21.0) | ||||||
Proceeds from debt | 10.4 | 163.8 | ||||||
Repayment of debt | — | (1.6) | ||||||
Payment of equipment leases | (19.1) | (3.7) | ||||||
$ | (45.5) | $ | 137.3 | |||||
Effects of exchange rate changes on cash and cash equivalents | 0.9 | (3.1) | ||||||
Increase (decrease) in cash and cash equivalents | 52.2 | (46.1) | ||||||
Cash and cash equivalents at the beginning of the period | 347.5 | 153.1 | ||||||
Cash held for sale at the beginning of the period | (0.1) | — | ||||||
Cash and cash equivalents at the end of the period | $ | 399.6 | $ | 107.0 |
PAN AMERICAN SILVER CORP. | 7 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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PAN AMERICAN SILVER CORP. | 8 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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PAN AMERICAN SILVER CORP. | 9 |
Q4 2023 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.
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PAN AMERICAN SILVER CORP. | 10 |