Form 20-F | Form 40-F | X |
Exhibit | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
99.4 | ||||||||
99.5 | News Release - Pan American Silver reports first quarter 2024 results
|
Pan American Silver Corp. | ||||||||
(Registrant) | ||||||||
Date: May 8, 2024 |
By: | /s/ "Delaney Fisher" |
||||||
Delaney Fisher | ||||||||
SVP, Associate General Counsel and Corporate Secretary |
Condensed Interim Consolidated Statements of Financial Position
(unaudited, in millions of U.S. dollars)
|
March 31, | December 31, | |||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents (Note 20) | $ | 301.1 | $ | 399.6 | ||||
Investments (Note 5) | 30.3 | 41.3 | ||||||
Trade and other receivables | 149.5 | 138.0 | ||||||
Income tax receivables | 60.0 | 62.9 | ||||||
Inventories (Note 6) | 744.9 | 711.6 | ||||||
Other assets (Note 7) | 33.7 | 36.6 | ||||||
1,319.5 | 1,390.0 | |||||||
Non-current assets | ||||||||
Mineral properties, plant and equipment (Note 8) | 5,614.6 | 5,675.1 | ||||||
Long-term inventories (Note 6) | 28.4 | 27.8 | ||||||
Long-term tax receivables | 13.5 | 14.7 | ||||||
Deferred tax assets | 81.8 | 80.4 | ||||||
Other long-term assets (Note 9) | 22.2 | 25.1 | ||||||
Total assets | $ | 7,080.0 | $ | 7,213.1 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities (Note 10) | $ | 470.3 | $ | 498.0 | ||||
Provisions (Note 11) | 50.1 | 41.6 | ||||||
Lease obligations (Note 12) | 43.5 | 45.7 | ||||||
Debt (Note 13) | 6.7 | 6.7 | ||||||
Income tax payables | 49.0 | 32.1 | ||||||
Other liabilities | 6.4 | 0.1 | ||||||
626.0 | 624.2 | |||||||
Non-current liabilities | ||||||||
Long-term provisions (Note 11) | 409.0 | 432.4 | ||||||
Deferred tax liabilities | 517.8 | 541.6 | ||||||
Long-term lease obligations (Note 12) | 58.2 | 52.2 | ||||||
Long-term debt (Note 13) | 698.2 | 697.0 | ||||||
Other long-term liabilities (Note 14) | 89.8 | 93.2 | ||||||
Total liabilities | 2,399.0 | 2,440.6 | ||||||
Equity | ||||||||
Issued capital | 5,938.3 | 5,966.5 | ||||||
Share option reserve | 94.2 | 94.0 | ||||||
Investment revaluation reserve (Note 4c) | (30.5) | (30.3) | ||||||
Deficit | (1,333.0) | (1,269.5) | ||||||
Total equity attributable to Company shareholders | 4,669.0 | 4,760.7 | ||||||
Non-controlling interests | 12.0 | 11.8 | ||||||
Total equity | 4,681.0 | 4,772.5 | ||||||
Total liabilities and equity | $ | 7,080.0 | $ | 7,213.1 |
"signed" | Gillian Winckler, Director | "signed" | Michael Steinmann, Director |
PAN AMERICAN SILVER CORP. |
1 |
Condensed Interim Consolidated Statements of
Earnings and Comprehensive Earnings
(unaudited, in millions of U.S. dollars and thousands of shares)
|
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Revenue (Note 21) | $ | 601.4 | $ | 390.3 | ||||
Cost of sales (Note 21) | ||||||||
Production costs (Note 16) | (392.1) | (230.8) | ||||||
Depreciation and amortization | (124.4) | (73.1) | ||||||
Royalties | (13.9) | (9.2) | ||||||
(530.4) | (313.1) | |||||||
Mine operating earnings (Note 21) | 71.0 | 77.2 | ||||||
General and administrative | (22.4) | (10.4) | ||||||
Exploration and project development | (2.8) | (1.0) | ||||||
Mine care and maintenance (Note 17) | (8.7) | (22.0) | ||||||
Foreign exchange gains | 11.4 | 0.7 | ||||||
Derivative (losses) gains (Note 4d) | (10.6) | 3.3 | ||||||
Mineral properties, plant and equipment gains | 0.3 | 0.2 | ||||||
Loss from associates | (0.1) | (0.4) | ||||||
Transaction and integration costs | — | (18.9) | ||||||
Other expense | (3.3) | (1.2) | ||||||
Earnings from operations | 34.8 | 27.5 | ||||||
Investment (loss) income (Note 4b) | (10.8) | 6.9 | ||||||
Interest and finance expense (Note 18) | (20.4) | (9.2) | ||||||
Earnings before income taxes | 3.6 | 25.2 | ||||||
Income tax expense (Note 22) | (34.4) | (8.7) | ||||||
Net (loss) earnings | $ | (30.8) | $ | 16.5 | ||||
Net (loss) earnings attributable to: | ||||||||
Equity holders of the Company | $ | (30.9) | $ | 16.4 | ||||
Non-controlling interests | 0.1 | 0.1 | ||||||
$ | (30.8) | $ | 16.5 | |||||
Other comprehensive (loss) earnings, net of taxes | ||||||||
Items that will not be reclassified to net earnings: | ||||||||
Loss on investments (Note 4c) | $ | (0.2) | $ | (16.8) | ||||
Income tax recovery related to investments (Note 22) | — | 0.4 | ||||||
Total other comprehensive loss | $ | (0.2) | $ | (16.4) | ||||
Total comprehensive (loss) earnings | $ | (31.0) | $ | 0.1 | ||||
Total comprehensive (loss) earnings attributable to: | ||||||||
Equity holders of the Company | $ | (31.1) | $ | — | ||||
Non-controlling interests | 0.1 | 0.1 | ||||||
$ | (31.0) | $ | 0.1 | |||||
(Loss) earnings per share attributable to common shareholders (Note 19) | ||||||||
Basic (loss) earnings per share | $ | (0.08) | $ | 0.08 | ||||
Diluted (loss) earnings per share | $ | (0.08) | $ | 0.08 | ||||
Weighted average shares outstanding Basic | 364,486 | 210,681 | ||||||
Weighted average shares outstanding Diluted | 364,486 | 210,704 |
PAN AMERICAN SILVER CORP. |
2 |
Condensed Interim Consolidated Statements of Cash Flows
(unaudited, in millions of U.S. dollars)
|
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Operating activities | ||||||||
Net (loss) earnings for the period | $ | (30.8) | $ | 16.5 | ||||
Income tax expense (Note 22) | 34.4 | 8.7 | ||||||
Depreciation and amortization | 124.4 | 73.1 | ||||||
Loss from associates | 0.1 | 0.4 | ||||||
Net realizable value inventory expense (recovery) (Note 16) | 14.4 | (20.9) | ||||||
Accretion on closure and decommissioning provision (Notes 11, 18) | 7.9 | 5.9 | ||||||
Investment loss (income) (Note 4b) | 10.8 | (6.9) | ||||||
Interest paid | (9.0) | (4.0) | ||||||
Interest received | 3.4 | 1.4 | ||||||
Income taxes paid | (41.1) | (30.7) | ||||||
Other operating activities (Note 20) | 18.7 | (0.2) | ||||||
Net change in non-cash working capital items (Note 20) | (72.1) | 8.0 | ||||||
$ | 61.1 | $ | 51.3 | |||||
Investing activities | ||||||||
Payments for mineral properties, plant and equipment | $ | (86.9) | $ | (38.5) | ||||
Cash acquired from the Yamana Gold Inc. acquisition | — | 259.5 | ||||||
Proceeds from dispositions and mineral property, plant and equipment | 0.5 | 0.1 | ||||||
Proceeds from disposal of investments | — | 105.3 | ||||||
Net (payments) proceeds from derivatives | (0.1) | 1.5 | ||||||
$ | (86.5) | $ | 327.9 | |||||
Financing activities | ||||||||
Distributions to non-controlling interests | 0.1 | (0.2) | ||||||
Dividends paid | (36.5) | (21.1) | ||||||
Shares repurchased under Normal Course Issuer Bid (Note 15) | (21.5) | — | ||||||
Proceeds from debt (Note 13) | — | 265.0 | ||||||
Repayment of debt (Note 13) | (1.7) | (313.7) | ||||||
Payment of equipment leases | (13.1) | (3.7) | ||||||
$ | (72.7) | $ | (73.7) | |||||
Effects of exchange rate changes on cash and cash equivalents | (0.4) | (1.2) | ||||||
(Decrease) increase in cash and cash equivalents | (98.5) | 304.3 | ||||||
Cash and cash equivalents at the beginning of the period | 399.6 | 107.0 | ||||||
Cash and cash equivalents at the end of the period | $ | 301.1 | $ | 411.3 |
PAN AMERICAN SILVER CORP. |
3 |
Condensed Interim Consolidated Statements of Changes in Equity
(unaudited, 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, 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 year | — | — | — | — | (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 1) | 153,758 | 2,823.0 | — | — | — | 2,823.0 | 484.9 | 3,307.9 | ||||||||||||||||||
Dispositions | — | — | — | — | — | — | (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 | |||||||||||
Total comprehensive loss | ||||||||||||||||||||||||||
Net loss for the period | — | — | — | — | (30.9) | (30.9) | 0.1 | (30.8) | ||||||||||||||||||
Other comprehensive loss | — | — | — | (0.2) | — | (0.2) | — | (0.2) | ||||||||||||||||||
— | — | — | (0.2) | (30.9) | (31.1) | 0.1 | (31.0) | |||||||||||||||||||
Shares repurchased (Note 15) | (1,720) | (28.2) | — | — | 3.9 | (24.3) | — | (24.3) | ||||||||||||||||||
Share-based compensation on option grants | — | — | 0.2 | — | — | 0.2 | — | 0.2 | ||||||||||||||||||
Distributions by subsidiaries to non-controlling interests | — | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||
Dividends paid | — | — | — | — | (36.5) | (36.5) | — | (36.5) | ||||||||||||||||||
Balance, March 31, 2024 | 362,940 | $ | 5,938.3 | $ | 94.2 | $ | (30.5) | $ | (1,333.0) | $ | 4,669.0 | $ | 12.0 | $ | 4,681.0 |
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, 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 | — | — | — | — | 16.4 | 16.4 | 0.1 | 16.5 | ||||||||||||||||||
Other comprehensive loss | — | — | — | (16.4) | — | (16.4) | — | (16.4) | ||||||||||||||||||
— | — | — | (16.4) | 16.4 | — | 0.1 | 0.1 | |||||||||||||||||||
The Acquisition (Note 1) | 153,758 | 2,823.0 | — | — | — | 2,823.0 | 489.3 | 3,312.3 | ||||||||||||||||||
Share-based compensation on option grants | — | — | 0.2 | — | — | 0.2 | — | 0.2 | ||||||||||||||||||
Distributions by subsidiaries to non-controlling interests | — | — | — | — | (0.2) | (0.2) | — | (0.2) | ||||||||||||||||||
Dividends paid | — | — | — | — | (21.1) | (21.1) | — | (21.1) | ||||||||||||||||||
Balance, March 31, 2023 | 364,439 | $ | 5,963.0 | $ | 93.5 | $ | (19.4) | $ | (1,039.7) | $ | 4,997.4 | $ | 495.5 | $ | 5,492.9 |
PAN AMERICAN SILVER CORP. |
4 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts 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 |
||||||||
Brazil | Jacobina Mineração e Comércio Ltda. | 100% | Jacobina mine |
||||||||
Canada | Lake Shore Gold Corp. | 100% | Bell Creek and Timmins West mines (together "Timmins mine") | ||||||||
Chile | Minera Meridian Ltda. | 100% | El Peñon mine |
||||||||
Minera Florida Ltda |
100% | Minera Florida mine |
|||||||||
Minera Cavancha SpA. |
80% | La Pepa project |
|||||||||
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 |
|||||||||
Minera Joaquin S.R.L. | 100% | Joaquin mine | |||||||||
Minera Argenta S.A. | 100% | Navidad project |
PAN AMERICAN SILVER CORP. |
5 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. |
6 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
March 31, 2024 | Amortized cost | FVTPL | FVTOCI | Total | ||||||||||
Financial Assets: | ||||||||||||||
Cash and cash equivalents | $ | 301.1 | $ | — | $ | — | $ | 301.1 | ||||||
Trade receivables from provisional concentrates sales(1) |
— | 21.5 | — | 21.5 | ||||||||||
Receivables not arising from sale of metal concentrates(1) |
113.1 | — | — | 113.1 | ||||||||||
Investments | — | 27.3 | 3.0 | 30.3 | ||||||||||
Derivative assets(2) |
— | 2.7 | — | 2.7 | ||||||||||
$ | 414.2 | $ | 51.5 | $ | 3.0 | $ | 468.7 | |||||||
Financial Liabilities: | ||||||||||||||
Derivative liabilities(2) |
$ | — | $ | 6.4 | $ | — | $ | 6.4 | ||||||
Debt | $ | 704.9 | $ | — | $ | — | $ | 704.9 |
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 | ||||||||||
Receivables 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 |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Unrealized (losses) gains on investments | $ | (10.8) | $ | 6.9 | ||||
PAN AMERICAN SILVER CORP. |
7 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Unrealized losses on investments | $ | (0.2) | $ | — | ||||
Realized losses on investments(1) |
— | (16.8) | ||||||
$ | (0.2) | $ | (16.8) | |||||
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Realized (losses) gains on derivatives | $ | (0.1) | $ | 1.5 | ||||
Unrealized (losses) gains on derivatives | (10.5) | 1.8 | ||||||
$ | (10.6) | $ | 3.3 | |||||
At March 31, 2024 | At December 31, 2023 | |||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||
Assets and Liabilities: | ||||||||||||||
Investments (Note 5) | $ | 30.3 | $ | — | $ | 41.3 | $ | — | ||||||
Trade receivables from provisional concentrate sales | — | 21.5 | — | 17.5 | ||||||||||
Derivative assets(1) |
— | 2.7 | — | 6.9 | ||||||||||
Derivative liabilities(1) |
— | (6.4) | — | (0.1) | ||||||||||
$ | 30.3 | $ | 17.8 | $ | 41.3 | $ | 24.3 |
PAN AMERICAN SILVER CORP. |
8 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. |
9 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. |
10 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Mexican peso gains | $ | — | $ | 1.4 | ||||
Peruvian sol gains | 0.4 | 0.8 | ||||||
Canadian dollar (losses) gains | (1.7) | 0.5 | ||||||
Chilean peso losses | (9.0) | — | ||||||
Brazilian real losses | (0.2) | — | ||||||
$ | (10.5) | $ | 2.7 |
PAN AMERICAN SILVER CORP. |
11 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
March 31, 2024 | December 31, 2023 | |||||||||||||||||||
Fair Value |
Cost | Accumulated unrealized holding losses |
Fair Value | Cost | Accumulated unrealized holding gains |
|||||||||||||||
Investments | $ | 30.3 | $ | 37.5 | $ | (7.2) | $ | 41.3 | $ | 37.3 | $ | 4.0 |
March 31, 2024 |
December 31, 2023 |
|||||||
Concentrate inventory | $ | 27.0 | $ | 21.3 | ||||
Stockpile ore | 65.2 | 67.2 | ||||||
Heap leach inventory and in process | 364.6 | 338.6 | ||||||
Doré and finished inventory | 121.3 | 121.1 | ||||||
Materials and supplies | 195.2 | 191.2 | ||||||
Total inventories | $ | 773.3 | $ | 739.4 | ||||
Less: current portion of inventories | $ | (744.9) | $ | (711.6) | ||||
Non-current portion of inventories(1) |
$ | 28.4 | $ | 27.8 |
March 31, 2024 |
December 31, 2023 |
|||||||
Insurance prepaids | $ | 7.2 | $ | 7.4 | ||||
Other prepaids | 23.8 | 22.3 | ||||||
Derivative assets | 2.7 | 6.9 | ||||||
$ | 33.7 | $ | 36.6 |
PAN AMERICAN SILVER CORP. |
12 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
March 31, 2024 | December 31, 2023 | ||||||||||||||||||||||
Cost | Accumulated Depreciation and Impairment |
Carrying Value |
Cost | Accumulated Depreciation and Impairment |
Carrying Value |
||||||||||||||||||
Producing: | |||||||||||||||||||||||
Brazil | Jacobina |
$ | 1,545.3 | $ | (113.1) | $ | 1,432.2 | $ | 1,539.1 | $ | (85.5) | $ | 1,453.6 | ||||||||||
Chile | El Peñon | 480.4 | (70.6) | 409.8 | 477.7 | (56.7) | 421.0 | ||||||||||||||||
Minera Florida |
168.3 | (26.3) | 142.0 | 167.6 | (15.9) | 151.7 | |||||||||||||||||
Peru | Huaron | 274.9 | (149.5) | 125.4 | 261.6 | (146.1) | 115.5 | ||||||||||||||||
Shahuindo | 692.4 | (277.7) | 414.7 | 690.6 | (265.7) | 424.9 | |||||||||||||||||
La Arena | 312.5 | (188.2) | 124.3 | 307.9 | (178.8) | 129.1 | |||||||||||||||||
Mexico | La Colorada | 446.8 | (228.3) | 218.5 | 443.4 | (224.8) | 218.6 | ||||||||||||||||
Dolores | 1,775.8 | (1,707.1) | 68.7 | 1,777.5 | (1,680.7) | 96.8 | |||||||||||||||||
Argentina | Cerro Moro(3) |
145.3 | (33.7) | 111.6 | 142.5 | (22.9) | 119.6 | ||||||||||||||||
Bolivia | San Vicente | 161.5 | (129.9) | 31.6 | 160.7 | (127.8) | 32.9 | ||||||||||||||||
Canada | Timmins | 412.3 | (173.0) | 239.3 | 400.7 | (165.8) | 234.9 | ||||||||||||||||
Other | 45.3 | (16.4) | 28.9 | 31.9 | (19.6) | 12.3 | |||||||||||||||||
$ | 6,460.8 | $ | (3,113.8) | $ | 3,347.0 | $ | 6,401.2 | $ | (2,990.3) | $ | 3,410.9 | ||||||||||||
Non-Producing: | |||||||||||||||||||||||
Land | $ | 14.4 | $ | (1.0) | $ | 13.4 | $ | 14.4 | $ | (1.0) | $ | 13.4 | |||||||||||
Brazil | Jacobina |
982.6 | — | 982.6 | 982.6 | — | 982.6 | ||||||||||||||||
Chile | El Peñon(2) |
227.7 | — | 227.7 | 227.7 | — | 227.7 | ||||||||||||||||
Minera Florida |
28.9 | — | 28.9 | 28.9 | — | 28.9 | |||||||||||||||||
Le Pepa |
49.7 | — | 49.7 | 49.7 | — | 49.7 | |||||||||||||||||
Peru | La Arena | 117.0 | — | 117.0 | 117.0 | — | 117.0 | ||||||||||||||||
Mexico | Minefinders |
77.2 | (37.5) | 39.7 | 77.2 | (37.5) | 39.7 | ||||||||||||||||
La Colorada |
124.5 | — | 124.5 | 119.1 | 119.1 | ||||||||||||||||||
Argentina | Manantial Espejo(1) |
518.4 | (518.4) | — | 518.4 | (518.4) | — | ||||||||||||||||
Navidad |
566.6 | (376.2) | 190.4 | 566.6 | (376.2) | 190.4 | |||||||||||||||||
Guatemala | Escobal | 258.1 | (4.2) | 253.9 | 257.2 | (3.8) | 253.4 | ||||||||||||||||
Canada | Timmins | 63.6 | — | 63.6 | 62.9 | — | 62.9 | ||||||||||||||||
Other(2) |
195.3 | (19.1) | 176.2 | 196.8 | (17.4) | 179.4 | |||||||||||||||||
$ | 3,224.0 | $ | (956.4) | $ | 2,267.6 | $ | 3,218.5 | $ | (954.3) | $ | 2,264.2 | ||||||||||||
Total | $ | 9,684.8 | $ | (4,070.2) | $ | 5,614.6 | $ | 9,619.7 | $ | (3,944.6) | $ | 5,675.1 |
March 31, 2024 |
December 31, 2023 |
|||||||
Long-term prepaids | $ | 7.1 | $ | 9.0 | ||||
Escrow funds | 8.9 | 9.9 | ||||||
Other | 6.2 | 6.2 | ||||||
$ | 22.2 | $ | 25.1 |
PAN AMERICAN SILVER CORP. |
13 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
March 31, 2024 |
December 31, 2023 |
|||||||
Trade account payables(1) |
$ | 186.2 | $ | 198.2 | ||||
Royalty payables | 31.3 | 30.1 | ||||||
Other accounts payable and accrued liabilities | 140.2 | 144.2 | ||||||
Payroll and severance liabilities | 72.4 | 85.0 | ||||||
Value added tax liabilities | 10.3 | 9.6 | ||||||
Other tax payables | 29.9 | 30.9 | ||||||
$ | 470.3 | $ | 498.0 |
March 31, 2024 |
December 31, 2023 |
|||||||
Reclamation obligations, opening balance | $ | 447.1 | $ | 296.2 | ||||
Reclamation obligations from the Acquisition | — | 244.0 | ||||||
Dispositions | — | (129.9) | ||||||
Revisions in estimates and obligations | (17.1) | 29.9 | ||||||
Expenditures | (6.1) | (27.3) | ||||||
Accretion expense (Note 18) | 7.9 | 34.2 | ||||||
Reclamation obligations, closing balance | 431.8 | 447.1 | ||||||
Litigation | 27.3 | 10.5 | ||||||
Litigation from the Acquisition | — | 34.6 | ||||||
Dispositions | — | (18.2) | ||||||
Total provisions | $ | 459.1 | $ | 474.0 |
Provision classification: | March 31, 2024 |
December 31, 2023 |
||||||
Current | $ | 50.1 | $ | 41.6 | ||||
Non-current | 409.0 | 432.4 | ||||||
$ | 459.1 | $ | 474.0 |
March 31, 2024 |
December 31, 2023 |
|||||||
Opening net book value | $ | 105.0 | $ | 30.3 | ||||
Additions | 19.8 | 36.8 | ||||||
The Acquisition | — | 81.4 | ||||||
Depreciation | (11.9) | (39.2) | ||||||
Dispositions | — | (9.0) | ||||||
Other | (4.6) | 4.7 | ||||||
Closing net book value | $ | 108.3 | $ | 105.0 |
PAN AMERICAN SILVER CORP. |
14 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
March 31, 2024 |
December 31, 2023 |
|||||||
Within one year | $ | 47.9 | $ | 50.7 | ||||
Between one and five years | 51.4 | 53.1 | ||||||
Beyond five years | 24.3 | 12.0 | ||||||
Total undiscounted lease obligations | 123.6 | 115.8 | ||||||
Less future interest charges | (21.9) | (17.9) | ||||||
Total discounted lease obligations | 101.7 | 97.9 | ||||||
Less current portion of lease obligations | (43.5) | (45.7) | ||||||
Non-current portion of lease obligations | $ | 58.2 | $ | 52.2 |
December 31, 2023 | Repayments | Interest | March 31, 2024 |
|||||||||||
Senior note maturing December 2027 | $ | 273.8 | $ | — | $ | 0.4 | $ | 274.2 | ||||||
Senior note maturing August 2031 | 409.8 | — | 2.5 | 412.3 | ||||||||||
SL-Credit Facility | — | — | — | — | ||||||||||
Other loans |
20.1 | (1.7) | — | 18.4 | ||||||||||
Less: current portion | (6.7) | (6.7) | ||||||||||||
Non-current | $ | 697.0 | $ | (1.7) | $ | 2.9 | $ | 698.2 |
December 31, 2022 | Proceeds | Repayments | Interest | Other | The Acquisition | Dispositions | 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 |
PAN AMERICAN SILVER CORP. |
15 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
March 31, 2024 |
December 31, 2023 |
|||||||
Deferred credit(1) |
$ | 22.7 | $ | 21.6 | ||||
Deferred revenue(2) |
12.9 | 13.1 | ||||||
Severance liabilities(3) |
54.2 | 58.5 | ||||||
$ | 89.8 | $ | 93.2 |
PAN AMERICAN SILVER CORP. |
16 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Stock Options | ||||||||
Options | Weighted Average Exercise Price CAD$ |
|||||||
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 | |||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Expired | — | — | ||||||
Forfeited | — | — | ||||||
As at March 31, 2024 | 513.2 | $ | 22.32 |
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Prices CAD$ |
Number Outstanding as at March 31, 2024 | Weighted Average Remaining Contractual Life (years) |
Weighted Average Exercise Price CAD$ |
Number Outstanding as at March 31, 2024 | Weighted Average Exercise Price CAD$ |
||||||||||||
$17.53 - $23.03 | 446.5 | 5.2 | $ | 21.13 | 159.1 | $ | 19.70 | ||||||||||
$23.04 - $28.54 | 21.1 | 2.7 | $ | 26.54 | 21.1 | $ | 26.54 | ||||||||||
$28.55 - $34.04 | 38.8 | 4.7 | $ | 30.70 | 25.9 | $ | 30.70 | ||||||||||
$34.05 - $39.48 | 6.9 | 3.7 | $ | 39.48 | 6.9 | $ | 39.48 | ||||||||||
513.2 | 5.0 | $ | 22.32 | 213.0 | $ | 22.35 |
PSU | Number Outstanding | Fair Value | ||||||
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 | ||||||
Granted | — | — | ||||||
Paid out | — | — | ||||||
Forfeited | — | — | ||||||
Change in value | — | (0.8) | ||||||
As at March 31, 2024 | 756.9 | 11.7 |
PAN AMERICAN SILVER CORP. |
17 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
RSU | Number Outstanding | Fair Value | ||||||
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 | |||||
Granted | — | — | ||||||
Paid out | — | — | ||||||
Forfeited | (7.5) | (0.1) | ||||||
Change in value | — | (1.0) | ||||||
As at March 31, 2024 | 797.5 | $ | 12.2 |
Declaration Date | Record Date | Dividend per common share | ||||||
May 8, 2024 (1) |
May 21, 2024 | $ | 0.10 | |||||
February 21, 2024 | March 4, 2024 | $ | 0.10 | |||||
November 7, 2023 | November 20, 2023 | $ | 0.10 | |||||
August 9, 2023 | August 21, 2023 | $ | 0.10 | |||||
March 24, 2023 | April 14, 2023 | $ | 0.10 | |||||
February 22, 2023 | March 6, 2023 | $ | 0.10 |
PAN AMERICAN SILVER CORP. |
18 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Materials and consumables | $ | 149.0 | $ | 85.9 | ||||
Salaries and employee benefits(1) |
132.6 | 71.9 | ||||||
Contractors | 105.1 | 52.9 | ||||||
Utilities | 20.0 | 12.8 | ||||||
Insurance | 4.9 | 4.2 | ||||||
Other expense | 2.1 | 4.6 | ||||||
Changes in inventories(2) |
(21.6) | (1.5) | ||||||
$ | 392.1 | $ | 230.8 |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Escobal | $ | 6.9 | $ | 6.1 | ||||
Morococha(1) |
— | 9.0 | ||||||
Navidad | 0.4 | 1.0 | ||||||
Manantial Espejo(2) |
1.4 | 5.9 | ||||||
$ | 8.7 | $ | 22.0 |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Interest expense | $ | 11.6 | $ | 2.8 | ||||
Finance fees | 0.9 | 0.5 | ||||||
Accretion expense (Note 11) | 7.9 | 5.9 | ||||||
$ | 20.4 | $ | 9.2 |
PAN AMERICAN SILVER CORP. |
19 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
For the three months ended March 31, | 2024 | 2023 | ||||||||||||||||||
Earnings(1) |
Shares | Per-Share Amount |
Earnings(1) |
Shares | Per-Share Amount |
|||||||||||||||
Net (loss) earnings for the period | $ | (30.9) | $ | 16.4 | ||||||||||||||||
Basic (loss) earnings per share | $ | (30.9) | 364,486 | $ | (0.08) | $ | 16.4 | 210,681 | $ | 0.08 | ||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||
Stock Options | — | — | — | 23 | ||||||||||||||||
Diluted (loss) earnings per share | $ | (30.9) | 364,486 | $ | (0.08) | $ | 16.4 | 210,704 | $ | 0.08 |
Three months ended March 31, |
|||||||||||
Other operating activities | 2024 | 2023 | |||||||||
Adjustments for non-cash income statement items: | |||||||||||
Unrealized foreign exchange gains | $ | (4.8) | $ | (0.7) | |||||||
Interest expense (Note 18) | 11.6 | 2.8 | |||||||||
Losses (gains) on derivatives (Note 4d) | 10.6 | (3.3) | |||||||||
Share-based compensation expense | 1.6 | 1.2 | |||||||||
Gains on sale of mineral properties, plant and equipment |
(0.3) | (0.2) | |||||||||
$ | 18.7 | $ | (0.2) |
Three months ended March 31, |
||||||||
Changes in non-cash operating working capital items: | 2024 | 2023 | ||||||
Trade and other receivables | $ | (10.9) | $ | 36.6 | ||||
Inventories | (39.3) | 20.3 | ||||||
Prepaid expenses | (1.4) | (3.4) | ||||||
Accounts payable and accrued liabilities | (20.9) | (40.2) | ||||||
Provisions | 0.4 | (5.3) | ||||||
$ | (72.1) | $ | 8.0 |
Cash and cash equivalents | March 31, 2024 |
December 31, 2023 |
||||||
Cash in banks | $ | 301.1 | $ | 399.6 | ||||
PAN AMERICAN SILVER CORP. |
20 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
For the three months ended March 31, 2024 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) |
||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 27.4 | $ | 26.7 | $ | 3.5 | $ | (2.8) | $ | 12.0 | |||||||||
Peru | Huaron | 35.0 | 24.0 | 3.0 | 8.0 | 18.0 | ||||||||||||||
Bolivia | San Vicente | 16.7 | 13.1 | 1.6 | 2.0 | 0.8 | ||||||||||||||
Argentina | Cerro Moro | 61.0 | 44.6 | 8.7 | 7.7 | 3.9 | ||||||||||||||
Guatemala | Escobal | — | — | — | — | 0.7 | ||||||||||||||
Total Silver Segment | 140.1 | 108.4 | 16.8 | 14.9 | 35.4 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 51.4 | 54.7 | 21.4 | (24.7) | 0.1 | ||||||||||||||
Peru | Shahuindo | 78.5 | 36.7 | 12.0 | 29.8 | 7.6 | ||||||||||||||
La Arena | 44.6 | 27.3 | 8.0 | 9.3 | 4.9 | |||||||||||||||
Canada | Timmins | 69.5 | 55.0 | 8.7 | 5.8 | 15.1 | ||||||||||||||
Brazil | Jacobina | 96.0 | 42.7 | 28.0 | 25.3 | 18.9 | ||||||||||||||
Chile | El Peñon | 72.1 | 44.2 | 16.1 | 11.8 | 7.5 | ||||||||||||||
Minera Florida | 49.2 | 37.0 | 10.7 | 1.5 | 6.3 | |||||||||||||||
Total Gold Segment | 461.3 | 297.6 | 104.9 | 58.8 | 60.4 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Pas Corp | — | — | 0.2 | (0.2) | 3.7 | ||||||||||||||
Yamana Corp | — | — | 1.9 | (1.9) | 0.1 | |||||||||||||||
Other | Other | — | — | 0.6 | (0.6) | 0.4 | ||||||||||||||
Total | $ | 601.4 | $ | 406.0 | $ | 124.4 | $ | 71.0 | $ | 100.0 |
PAN AMERICAN SILVER CORP. |
21 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
For the three months ended March 31, 2023 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) |
||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 43.6 | $ | 33.6 | $ | 5.7 | $ | 4.3 | $ | 12.9 | |||||||||
Peru | Huaron | 38.7 | 24.7 | 2.9 | 11.1 | 3.4 | ||||||||||||||
Morococha |
— | — | — | — | 0.3 | |||||||||||||||
Bolivia | San Vicente | 29.5 | 21.3 | 3.1 | 5.1 | 0.4 | ||||||||||||||
Argentina | Manantial Espejo(2) |
23.7 | 23.6 | 1.2 | (1.1) | 0.2 | ||||||||||||||
Guatemala | Escobal | — | — | — | — | 0.3 | ||||||||||||||
Total Silver Segment | 135.5 | 103.2 | 12.9 | 19.4 | 17.5 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 63.4 | 19.1 | 28.9 | 15.4 | 3.3 | ||||||||||||||
Peru | Shahuindo | 83.0 | 40.9 | 13.2 | 28.9 | 10.9 | ||||||||||||||
La Arena | 40.9 | 24.7 | 7.1 | 9.1 | 0.8 | |||||||||||||||
Canada | Timmins | 67.5 | 52.1 | 10.4 | 5.0 | 9.3 | ||||||||||||||
Total Gold Segment | 254.8 | 136.8 | 59.6 | 58.4 | 24.3 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Pas Corp | — | — | 0.1 | (0.1) | 0.1 | ||||||||||||||
Other | Other | — | — | 0.5 | (0.5) | 0.3 | ||||||||||||||
Total | $ | 390.3 | $ | 240.0 | $ | 73.1 | $ | 77.2 | $ | 42.2 |
PAN AMERICAN SILVER CORP. |
22 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
At March 31, 2024 | ||||||||||||||
Segment/Country | Operation | Assets | Liabilities | Net assets | ||||||||||
Silver Segment: | ||||||||||||||
Mexico | La Colorada | $ | 445.2 | $ | 41.3 | $ | 403.9 | |||||||
Peru | Huaron | 165.8 | 58.5 | 107.3 | ||||||||||
Bolivia | San Vicente | 85.8 | 49.7 | 36.1 | ||||||||||
Argentina | Manantial Espejo |
2.0 | 20.3 | (18.3) | ||||||||||
Cerro Moro | 209.4 | 113.8 | 95.6 | |||||||||||
Guatemala | Escobal | 291.7 | 16.3 | 275.4 | ||||||||||
Total Silver Segment | 1,199.9 | 299.9 | 900.0 | |||||||||||
Gold Segment: | ||||||||||||||
Mexico | Dolores | 306.6 | 130.1 | 176.5 | ||||||||||
Peru | Shahuindo | 588.6 | 169.8 | 418.8 | ||||||||||
La Arena | 379.3 | 153.1 | 226.2 | |||||||||||
Canada | Timmins | 392.6 | 73.6 | 319.0 | ||||||||||
Brazil | Jacobina | 2,485.2 | 418.4 | 2,066.8 | ||||||||||
Chile | El Peñon | 772.8 | 193.8 | 579.0 | ||||||||||
Minera Florida | 212.0 | 94.2 | 117.8 | |||||||||||
Total Gold Segment | 5,137.1 | 1,233.0 | 3,904.1 | |||||||||||
Other segment: | ||||||||||||||
Canada | Pas Corp | 132.6 | 47.0 | 85.6 | ||||||||||
Yamana Corp | 247.9 | 728.2 | (480.3) | |||||||||||
Argentina | Navidad | 192.0 | 13.8 | 178.2 | ||||||||||
Other | Other | 170.5 | 77.1 | 93.4 | ||||||||||
Total | $ | 7,080.0 | $ | 2,399.0 | $ | 4,681.0 |
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 Penon | 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 | Other | 167.0 | 85.6 | 81.4 | ||||||||||
Total | $ | 7,213.1 | $ | 2,440.6 | $ | 4,772.5 |
PAN AMERICAN SILVER CORP. |
23 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended March 31, |
||||||||
Product Revenue | 2024 | 2023 | ||||||
Refined silver and gold | $ | 519.0 | $ | 278.9 | ||||
Zinc concentrate(1) |
20.4 | 29.5 | ||||||
Lead concentrate(1) |
36.5 | 53.2 | ||||||
Copper concentrate(1) |
16.6 | 15.0 | ||||||
Silver concentrate(1) |
8.9 | 13.7 | ||||||
Total | $ | 601.4 | $ | 390.3 |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Current income tax expense | $ | 59.2 | $ | 27.7 | ||||
Deferred income tax recovery | (24.8) | (19.0) | ||||||
Income tax expense | $ | 34.4 | $ | 8.7 |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Income tax expense related to long-term investments | — | 0.4 |
PAN AMERICAN SILVER CORP. |
24 |
Notes to the Condensed Interim Consolidated Financial Statements |
|||||
As at March 31, 2024 and December 31, 2023, and for the three months ended March 31, 2024 and 2023 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Income (loss) before taxes and non-controlling interest | $ | 3.6 | $ | 25.2 | ||||
Statutory Canadian income tax rate | 27.00 | % | 27.00 | % | ||||
Income tax expense based on above rates | $ | 1.0 | $ | 6.8 | ||||
Increase (decrease) due to: | ||||||||
Non-deductible expenditures | 2.1 | 1.1 | ||||||
Foreign tax rate differences | (1.9) | 2.8 | ||||||
Change in net deferred tax assets not recognized1 |
14.4 | 10.8 | ||||||
Effect of other taxes paid (mining and withholding) | 6.5 | 4.0 | ||||||
Effect of foreign exchange on tax expense | 2.3 | (16.0) | ||||||
Non-taxable impact of foreign exchange | (0.2) | 0.8 | ||||||
Impact of inflation |
12.9 | (2.3) | ||||||
Other | (2.7) | 0.7 | ||||||
Income tax expense | $ | 34.4 | $ | 8.7 | ||||
PAN AMERICAN SILVER CORP. |
25 |
PAN AMERICAN SILVER CORP. |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
TABLE OF CONTENTS | |||||
PAN AMERICAN SILVER CORP. | 1 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 2 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 3 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 4 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Three months ended March 31, |
|||||||||||
2024 | 2023 | Variance | |||||||||
Production | |||||||||||
Silver – koz | 5,009 | 3,891 | 1,118 | ||||||||
Gold – koz | 222.9 | 122.7 | 100.2 | ||||||||
Zinc – kt | 9.8 | 10.6 | (0.8) | ||||||||
Lead – kt | 4.6 | 5.3 | (0.7) | ||||||||
Copper – kt | 1.7 | 1.1 | 0.6 | ||||||||
Cash Costs - $ per ounce sold(2) |
|||||||||||
Silver Segment | 12.67 | 12.19 | 0.48 | ||||||||
Gold Segment | 1,207 | 1,120 | 87 | ||||||||
AISC - $ per ounce sold(2) |
|||||||||||
Silver Segment | 15.89 | 14.13 | 1.76 | ||||||||
Gold Segment | 1,580 | 1,196 | 384 |
PAN AMERICAN SILVER CORP. | 5 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 6 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 7 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 8 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Three months |
||||||||
Net earnings, period ended March 31, 2023 | $ | 16.5 | Note | |||||
Revenue: | ||||||||
Increased metal prices | $ | 34.1 | ||||||
Higher quantities of metal sold | 168.4 | |||||||
Decreased direct selling costs | 5.5 | |||||||
Increased positive settlement adjustments | 3.1 | |||||||
Total increase in revenue | 211.1 | (1) | ||||||
Cost of sales: | ||||||||
Increased production costs | $ | (126.0) | ||||||
Increased production costs, NRV adjustments | (35.3) | |||||||
Increased royalty charges | (4.7) | |||||||
Increased production costs and royalty charges | $ | (166.0) | (2) | |||||
Increased depreciation and amortization | (51.3) | (3) | ||||||
Increased cost of sales | (217.3) | |||||||
Decreased mine operating earnings | (6.2) | |||||||
Decreased transaction and integration costs | 18.9 | (4) | ||||||
Decreased care and maintenance costs | 13.3 | (5) | ||||||
Increase in foreign exchange gains | 10.7 | (6) | ||||||
Increased gains and income from associates | 0.3 | |||||||
Increased gains on sale of mineral properties, plant and equipment | 0.1 | |||||||
Increased income tax expense | (25.7) | (7) | ||||||
Increased investment loss | (17.7) | (8) | ||||||
Increased losses on derivatives | (13.9) | (9) | ||||||
Increased general and administrative expense | (12.0) | (10) | ||||||
Increased interest and finance expense | (11.2) | (11) | ||||||
Other | (2.1) | |||||||
Increased exploration and project development expense | (1.8) | |||||||
Net loss, period ended March 31, 2024 | $ | (30.8) |
PAN AMERICAN SILVER CORP. | 9 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Realized Metal Prices(1) |
Quantities of Metal Sold(2) |
|||||||||||||
Three months ended March 31, |
Three months ended March 31, |
|||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Silver |
$ | 22.61 | $ | 22.75 | 4,258 | 4,446 | ||||||||
Gold |
$ | 2,078 | $ | 1,895 | 228.2 | 133.4 | ||||||||
Zinc |
$ | 2,424 | $ | 3,133 | 8.5 | 10.8 | ||||||||
Lead |
$ | 2,063 | $ | 2,160 | 3.6 | 5.3 | ||||||||
Copper |
$ | 8,373 | $ | 8,903 | 1.3 | 0.9 |
PAN AMERICAN SILVER CORP. | 10 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 11 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 12 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Outstanding as at May 8, 2024 | |||||
Common shares | 362,947 | ||||
Options | 506 | ||||
Total | 363,453 |
PAN AMERICAN SILVER CORP. | 13 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
2024 | Quarter Ended | ||||
(In millions of USD, other than per share amounts) | Mar 31 | ||||
Revenue | $ | 601.4 | |||
Mine operating earnings | $ | 71.0 | |||
(Loss) earnings for the period attributable to equity holders | $ | (30.9) | |||
Basic (loss) earnings per share | $ | (0.08) | |||
Diluted (loss) earnings per share | $ | (0.08) | |||
Cash flow from operating activities | $ | 61.1 | |||
Cash dividends paid per share | $ | 0.10 | |||
Other financial information | |||||
Total assets | $ | 7,080.0 | |||
Total long-term financial liabilities(1) |
$ | 1,255.2 | |||
Total attributable shareholders’ equity | $ | 4,669.0 |
2023 | Quarter Ended | Year Ended |
|||||||||||||||
(In millions of USD, other than per share amounts) | Mar 31 | Jun 30(2) |
Sep 30(2) |
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 | |||||||
(Loss) earnings for the period attributable to equity holders | $ | 16.4 | $ | (32.4) | $ | (19.7) | $ | (68.0) | $ | (103.7) | |||||||
Basic (loss) earnings per share | $ | 0.08 | $ | (0.09) | $ | (0.05) | $ | (0.19) | $ | (0.25) | |||||||
Diluted (loss) earnings per share | $ | 0.08 | $ | (0.09) | $ | (0.05) | $ | (0.19) | $ | (0.25) | |||||||
Cash flow from operating activities | $ | 51.3 | $ | 117.0 | $ | 114.6 | $ | 167.4 | $ | 450.3 | |||||||
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 | |||||||
(Loss) earnings for the period attributable to equity holders | $ | 76.5 | $ | (174.0) | $ | (71.5) | $ | (172.8) | $ | (341.8) | |||||||
Basic (loss) earnings per share | $ | 0.36 | $ | (0.83) | $ | (0.34) | $ | (0.81) | $ | (1.62) | |||||||
Diluted (loss) earnings 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 |
PAN AMERICAN SILVER CORP. | 14 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Three months ended March 31, 2024 | ||||||||||||||||||||||||||||||||||||||
La Colorada | Cerro Moro | Huaron | San Vicente(1) |
Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida | Dolores | Total | |||||||||||||||||||||||||||
Ore tonnes mined – kt | 122 | 93 | 233 | 88 | 762 | 214 | 417 | 2,931 | 2,481 | 214 | 1,463 | 9,019 | ||||||||||||||||||||||||||
Waste tonnes mined – kt | — | 706 | — | — | — | — | — | 4,368 | 4,519 | — | 3,628 | 13,222 | ||||||||||||||||||||||||||
Tonnes processed – kt | 122 | 106 | 230 | 89 | 768 | 327 | 435 | 2,763 | 2,481 | 237 | 1,821 | 9,378 | ||||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||||||||
Silver – g/t | 307.6 | 238.8 | 144.8 | 303.9 | 91.5 | — | 6.4 | 0.5 | 18.2 | 15.5 | ||||||||||||||||||||||||||||
Gold – g/t | — | 6.52 | — | — | 1.98 | 3.38 | 2.31 | 0.50 | 0.32 | 2.97 | 0.45 | |||||||||||||||||||||||||||
Zinc – % | 2.26 | — | 2.32 | 2.70 | — | — | — | — | — | 0.79 | — | |||||||||||||||||||||||||||
Lead – % | 1.33 | — | 1.65 | 0.30 | — | — | — | — | — | 0.28 | — | |||||||||||||||||||||||||||
Copper – % | — | — | 0.78 | 0.19 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||||||||
Silver – koz | 1,107 | 766 | 882 | 788 | — | 851 | 4 | 70 | 9 | 102 | 430 | 5,009 | ||||||||||||||||||||||||||
Gold – koz | 0.5 | 20.9 | — | — | 46.9 | 31.5 | 31.3 | 33.6 | 18.7 | 21.4 | 17.9 | 222.9 | ||||||||||||||||||||||||||
Zinc – kt | 2.2 | — | 4.0 | 2.0 | — | — | — | — | — | 1.5 | — | 9.8 | ||||||||||||||||||||||||||
Lead – kt | 1.4 | — | 2.7 | 0.2 | — | — | — | — | — | 0.4 | — | 4.6 | ||||||||||||||||||||||||||
Copper – kt | 0.1 | — | 1.5 | 0.1 | — | — | — | — | — | — | — | 1.7 |
Three months ended March 31, 2023 | |||||||||||||||||||||||||||||
La Colorada | Huaron | San Vicente(1) |
Manantial Espejo | Timmins | Shahuindo | La Arena | Dolores | Total | |||||||||||||||||||||
Ore tonnes mined – kt | 171 | 238 | 91 | — | 392 | 2,783 | 2,625 | 2,599 | 8,899 | ||||||||||||||||||||
Waste tonnes mined – kt | — | — | — | — | — | 3,560 | 4,956 | 4,109 | 12,625 | ||||||||||||||||||||
Tonnes processed – kt | 180 | 238 | 94 | 10 | 419 | 2,790 | 2,531 | 1,822 | 8,083 | ||||||||||||||||||||
Grade | |||||||||||||||||||||||||||||
Silver – g/t | 269.4 | 144.4 | 259.9 | 205.0 | — | 7.3 | 0.8 | 18.5 | |||||||||||||||||||||
Gold – g/t | — | — | — | 2.13 | 2.59 | 0.52 | 0.29 | 0.61 | |||||||||||||||||||||
Zinc – % | 1.66 | 2.76 | 3.62 | — | — | — | — | — | |||||||||||||||||||||
Lead – % | 0.92 | 1.81 | 0.25 | — | — | — | — | — | |||||||||||||||||||||
Copper – % | — | — | 0.18 | — | — | — | — | — | |||||||||||||||||||||
Production | |||||||||||||||||||||||||||||
Silver – koz | 1,432 | 922 | 725 | 191 | 4 | 66 | 9 | 544 | 3,891 | ||||||||||||||||||||
Gold – koz | 0.7 | 0.3 | — | 1.7 | 34.5 | 38.8 | 20.1 | 26.5 | 122.7 | ||||||||||||||||||||
Zinc – kt | 2.5 | 5.2 | 2.9 | — | — | — | — | — | 10.6 | ||||||||||||||||||||
Lead – kt | 1.5 | 3.6 | 0.2 | — | — | — | — | — | 5.3 | ||||||||||||||||||||
Copper – kt | — | 0.9 | 0.1 | — | — | — | — | — | 1.1 |
PAN AMERICAN SILVER CORP. | 15 |
Management Discussion and Analysis |
|||||
For the three and six months ended June 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 16 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Silver Segment | Gold Segment | |||||||||||||
(In millions of USD, except as noted) | Three months ended March 31, 2024 | Three months ended March 31, 2023 | Three months ended March 31, 2024 | Three months ended March 31, 2023 | ||||||||||
Production costs | $ | 99.9 | $ | 98.0 | $ | 292.1 | $ | 132.9 | ||||||
Restructuring and end-of-life severance accruals and payments(1) |
— | (5.3) | — | (1.7) | ||||||||||
NRV inventory adjustments | 2.2 | (0.1) | (16.6) | 20.9 | ||||||||||
On-site direct operating costs | 102.2 | 92.6 | 275.5 | 152.1 | ||||||||||
Royalties | 8.4 | 5.1 | 5.5 | 4.1 | ||||||||||
Smelting, refining and direct selling charges(2) |
8.0 | 14.4 | 0.9 | 0.1 | ||||||||||
Cash cost of sales before by-product credits |
118.6 | 112.1 | 281.9 | 156.3 | ||||||||||
Silver segment by-product credits(2) |
(80.6) | (65.8) | — | — | ||||||||||
Gold segment by-product credits(2) |
— | — | (32.3) | (14.3) | ||||||||||
Cash Costs |
$ | 38.0 | $ | 46.4 | $ | 249.7 | $ | 142.0 | ||||||
NRV inventory adjustments | (2.2) | 0.1 | 16.6 | (20.9) | ||||||||||
Sustaining capital |
11.0 | 6.6 | 54.7 | 25.8 | ||||||||||
Exploration and project development(3) |
— | — | — | — | ||||||||||
Reclamation cost accretion(4) |
0.9 | 0.7 | 5.8 | 4.7 | ||||||||||
All-in sustaining costs |
$ | 47.7 | $ | 53.8 | $ | 326.8 | $ | 151.6 | ||||||
Silver segment silver ounces sold (Moz) | 3.0 | 3.8 | — | — | ||||||||||
Gold segment gold ounces sold (koz) | — | — | 206.9 | 126.8 | ||||||||||
Cash costs per ounce sold |
$ | 12.67 | $ | 12.19 | $ | 1,207 | $ | 1,120 | ||||||
AISC per ounce sold | $ | 15.89 | $ | 14.13 | $ | 1,580 | $ | 1,196 | ||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 16.63 | $ | 14.11 | $ | 1,499 | $ | 1,361 |
PAN AMERICAN SILVER CORP. | 17 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Reconciliation of payments for mineral properties, plant and equipment and sustaining capital |
Three months ended March 31, |
|||||||
(in millions of USD) | 2024 | 2023 | ||||||
Payments for mineral properties, plant and equipment(1) |
$ | 86.9 | $ | 38.5 | ||||
Add/(Subtract) | ||||||||
Lease Payments(1) |
13.1 | 3.7 | ||||||
Repayment of loans(2) |
1.7 | 1.7 | ||||||
La Colorada investment (non-sustaining) capital | (9.6) | (9.2) | ||||||
Jacobina investment (non-sustaining) capital | (4.3) | — | ||||||
Huaron investment (non-sustaining) capital | (14.2) | (1.1) | ||||||
Timmins investment (non-sustaining) capital | (2.8) | — | ||||||
Other investment (non-sustaining) capital | (5.1) | (1.2) | ||||||
Sustaining Capital |
$ | 65.7 | $ | 32.5 |
PAN AMERICAN SILVER CORP. | 18 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
SILVER SEGMENT | Three months ended March 31, 2024 | ||||||||||||||||
(In millions of USD, except as noted) | La Colorada | Cerro Moro | Huaron | San Vicente |
Consolidated Silver Segment |
||||||||||||
Production Costs | $ | 26.6 | $ | 40.6 | $ | 24.0 | $ | 8.8 | $ | 99.9 | |||||||
Restructuring and end-of-life severance accruals and payments | — | — | — | — | — | ||||||||||||
NRV inventory adjustments | 2.2 | — | — | — | 2.2 | ||||||||||||
On-site direct operating costs | 28.9 | 40.6 | 24.0 | 8.8 | 102.2 | ||||||||||||
Royalties | 0.1 | 4.0 | — | 4.3 | 8.4 | ||||||||||||
Smelting, refining & direct selling costs | 2.0 | 0.7 | 4.0 | 1.3 | 8.0 | ||||||||||||
Cash Costs before by-product credits |
30.9 | 45.3 | 28.0 | 14.3 | 118.6 | ||||||||||||
Silver segment by-product credits | (6.9) | (43.8) | (22.2) | (7.6) | (80.6) | ||||||||||||
Cash Costs | $ | 24.0 | $ | 1.5 | $ | 5.8 | $ | 6.7 | $ | 38.0 | |||||||
NRV inventory adjustments | (2.2) | — | — | — | (2.2) | ||||||||||||
Sustaining capital | 2.5 | 3.9 | 3.8 | 0.8 | 11.0 | ||||||||||||
Exploration and project development | — | — | — | — | — | ||||||||||||
Reclamation cost accretion | 0.1 | 0.4 | 0.2 | 0.1 | 0.9 | ||||||||||||
All-in sustaining costs |
$ | 24.4 | $ | 5.8 | $ | 9.9 | $ | 7.6 | $ | 47.7 | |||||||
Silver segment silver ounces sold (Moz) | 0.96 | 0.90 | 0.71 | 0.43 | 3.00 | ||||||||||||
Cash cost per ounce sold | $ | 25.01 | $ | 1.62 | $ | 8.24 | $ | 15.56 | $ | 12.67 | |||||||
AISC per ounce sold | $ | 25.37 | $ | 6.43 | $ | 13.99 | $ | 17.62 | $ | 15.89 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 27.71 | $ | 6.43 | $ | 13.99 | $ | 17.62 | $ | 16.63 |
SILVER SEGMENT | Three months ended March 31, 2023 | ||||||||||||||||
(In millions of USD, except as noted) | La Colorada | Huaron | San Vicente |
Manantial Espejo |
Consolidated Silver Segment |
||||||||||||
Production Costs | $ | 33.5 | $ | 24.7 | $ | 16.6 | $ | 23.3 | $ | 98.0 | |||||||
Restructuring and end-of-life severance accruals and payments | — | — | — | (5.3) | (5.3) | ||||||||||||
NRV inventory adjustments | — | — | — | (0.1) | (0.1) | ||||||||||||
On-site direct operating costs | 33.5 | 24.7 | 16.6 | 17.9 | 92.6 | ||||||||||||
Royalties | 0.1 | — | 4.7 | 0.3 | 5.1 | ||||||||||||
Smelting, refining & direct selling costs | 3.2 | 5.9 | 3.7 | 1.5 | 14.4 | ||||||||||||
Cash Costs before by-product credits |
36.8 | 30.6 | 25.0 | 19.7 | 112.1 | ||||||||||||
Silver segment by-product credits | (11.4) | (25.9) | (17.1) | (11.3) | (65.8) | ||||||||||||
Cash Costs |
$ | 25.4 | $ | 4.7 | $ | 7.9 | $ | 8.4 | $ | 46.4 | |||||||
NRV inventory adjustments | — | — | — | 0.1 | 0.1 | ||||||||||||
Sustaining capital | 3.7 | 2.3 | 0.4 | 0.2 | 6.6 | ||||||||||||
Exploration and project development | — | ||||||||||||||||
Reclamation cost accretion | 0.2 | 0.3 | 0.1 | 0.2 | 0.7 | ||||||||||||
All-in sustaining costs |
$ | 29.2 | $ | 7.3 | $ | 8.4 | $ | 8.9 | $ | 53.8 | |||||||
Silver segment silver ounces sold (Moz) | 1.63 | 0.83 | 0.73 | 0.62 | 3.81 | ||||||||||||
Cash cost per ounce sold |
$ | 15.58 | $ | 5.62 | $ | 10.86 | $ | 13.64 | $ | 12.19 | |||||||
AISC per ounce sold | $ | 17.94 | $ | 8.74 | $ | 11.58 | $ | 14.35 | $ | 14.13 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 17.94 | $ | 8.74 | $ | 11.58 | $ | 14.23 | $ | 14.11 |
PAN AMERICAN SILVER CORP. | 19 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
GOLD SEGMENT | Three months ended March 31, 2024 | |||||||||||||||||||||||||
(In millions of USD, except as noted) | Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida |
Dolores | Consolidated Gold Segment | ||||||||||||||||||
Production Costs | $ | 41.5 | $ | 44.2 | $ | 53.0 | $ | 36.7 | $ | 27.3 | $ | 36.6 | $ | 52.9 | $ | 292.1 | ||||||||||
Restructuring and end-of-life severance accruals and payments | — | — | — | — | — | — | — | — | ||||||||||||||||||
NRV inventory adjustments | — | — | — | — | — | — | (16.6) | (16.6) | ||||||||||||||||||
On-site direct operating costs | 41.5 | 44.2 | 53.0 | 36.7 | 27.3 | 36.6 | 36.3 | 275.5 | ||||||||||||||||||
Royalties | 1.4 | — | 2.0 | — | — | 0.3 | 1.8 | 5.5 | ||||||||||||||||||
Smelting, refining & direct selling costs | 0.2 | 0.5 | — | — | — | 0.1 | — | 0.9 | ||||||||||||||||||
Cash Costs before by-product credits |
43.1 | 44.6 | 55.1 | 36.7 | 27.3 | 37.1 | 38.1 | 281.9 | ||||||||||||||||||
Gold segment by-product credits | — | (16.2) | — | (1.5) | (0.3) | (4.1) | (10.1) | (32.3) | ||||||||||||||||||
Cash Costs of Sales | $ | 43.1 | $ | 28.5 | $ | 55.0 | $ | 35.2 | $ | 26.9 | $ | 33.0 | $ | 28.0 | $ | 249.7 | ||||||||||
NRV inventory adjustments | — | — | — | — | — | — | 16.6 | 16.6 | ||||||||||||||||||
Sustaining capital | 14.7 | 7.5 | 12.3 | 9.0 | 4.9 | 6.3 | 0.1 | 54.7 | ||||||||||||||||||
Exploration and project development | — | — | — | — | — | — | — | — | ||||||||||||||||||
Reclamation cost accretion | 0.5 | 0.4 | 0.1 | 0.7 | 1.3 | 0.6 | 2.2 | 5.8 | ||||||||||||||||||
All-in sustaining costs |
$ | 58.3 | $ | 36.4 | $ | 67.4 | $ | 44.9 | $ | 33.0 | $ | 39.9 | $ | 46.9 | $ | 326.8 | ||||||||||
Gold segment gold ounces sold (koz) | 46.1 | 27.0 | 33.5 | 37.0 | 21.5 | 22.1 | 19.8 | 206.9 | ||||||||||||||||||
Cash cost per ounce sold | $ | 934 | $ | 1,055 | $ | 1,645 | $ | 952 | $ | 1,252 | $ | 1,496 | $ | 1,412 | $ | 1,207 | ||||||||||
AISC per ounce sold | $ | 1,263 | $ | 1,348 | $ | 2,014 | $ | 1,216 | $ | 1,536 | $ | 1,809 | $ | 2,367 | $ | 1,580 | ||||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,263 | $ | 1,348 | $ | 2,014 | $ | 1,216 | $ | 1,536 | $ | 1,809 | $ | 1,529 | $ | 1,499 | ||||||||||
GOLD SEGMENT | Three months ended March 31, 2023 | ||||||||||||||||
(In millions of USD, except as noted) | Dolores | Shahuindo | La Arena | Timmins |
Consolidated Gold Segment | ||||||||||||
Production Costs | $ | 16.9 | $ | 40.9 | $ | 24.7 | $ | 50.3 | $ | 132.9 | |||||||
Restructuring and end-of-life severance accruals and payments | (1.7) | — | — | — | (1.7) | ||||||||||||
NRV inventory adjustments | 20.9 | — | — | — | 20.9 | ||||||||||||
On-site direct operating costs | 36.2 | 40.9 | 24.7 | 50.3 | 152.1 | ||||||||||||
Royalties | 2.2 | — | — | 1.9 | 4.1 | ||||||||||||
Smelting, refining & direct selling costs | — | — | — | — | 0.1 | ||||||||||||
Cash Costs before by-product credits |
38.4 | 40.9 | 24.7 | 52.3 | 156.3 | ||||||||||||
Gold segment by-product credits | (12.2) | (1.7) | (0.3) | (0.1) | (14.3) | ||||||||||||
Cash Costs of Sales | $ | 26.1 | $ | 39.2 | $ | 24.4 | $ | 52.3 | $ | 142.0 | |||||||
NRV inventory adjustments | (20.9) | — | — | — | (20.9) | ||||||||||||
Sustaining capital | 3.3 | 12.5 | 0.8 | 9.3 | 25.8 | ||||||||||||
Exploration and project development | — | ||||||||||||||||
Reclamation cost accretion | 2.0 | 0.9 | 1.6 | 0.1 | 4.7 | ||||||||||||
All-in sustaining costs |
$ | 10.5 | $ | 52.6 | $ | 26.8 | $ | 61.7 | $ | 151.6 | |||||||
Gold segment gold ounces sold (koz) | 27.0 | 42.3 | 21.7 | 35.8 | 126.8 | ||||||||||||
Cash cost per ounce sold | $ | 968 | $ | 926 | $ | 1,124 | $ | 1,462 | $ | 1,120 | |||||||
AISC per ounce sold | $ | 390 | $ | 1,242 | $ | 1,237 | $ | 1,725 | $ | 1,196 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,164 | $ | 1,242 | $ | 1,237 | $ | 1,725 | $ | 1,361 |
PAN AMERICAN SILVER CORP. | 20 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Three months ended March 31, |
||||||||
(In millions of USD, except as noted) | 2024 | 2023 | ||||||
Net (loss) earnings for the period | $ | (30.8) | $ | 16.5 | ||||
Adjust for: | ||||||||
Unrealized foreign exchange gains | (4.8) | (0.7) | ||||||
Net realizable value heap inventory expense (recovery) | 20.8 | (3.9) | ||||||
Derivative unrealized losses (gains) | 10.5 | (1.8) | ||||||
Loss from associates | 0.1 | 0.4 | ||||||
Severance provisions | 0.2 | 12.7 | ||||||
Mineral property, plant and equipment gains on sale | (0.3) | (0.2) | ||||||
Litigation provisions | 2.8 | — | ||||||
Transaction and integration costs | — | 18.9 | ||||||
Investment loss (income) | 10.8 | (6.9) | ||||||
Closure and decommissioning liability | 0.3 | 2.6 | ||||||
Effect of taxes on adjusting items | (7.2) | (0.4) | ||||||
Effect of foreign exchange on taxes | 2.3 | (16.0) | ||||||
Total adjustments | $ | 35.5 | $ | 4.7 | ||||
Adjusted earnings for the period | $ | 4.7 | $ | 21.2 | ||||
Weighted average shares for the period | 364.5 | 210.7 | ||||||
Adjusted earnings per share for the period | $ | 0.01 | $ | 0.10 |
PAN AMERICAN SILVER CORP. | 21 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 22 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 23 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
USD Notional | Weighted Average USD Forward Rate | Weighted Average USD Put Rate | Weighted Average USD Call Rate | Expiry Dates | |||||||||||||
Peruvian sol forwards | $ | 40.5 | $ | 3.86 | April 2024 to December 2024 | ||||||||||||
Canadian dollar collars | $ | 13.5 | $ | 1.36 | $ | 1.42 | April 2024 to December 2024 | ||||||||||
Canadian dollar forwards(1) |
$ | 54.0 | $ | 1.39 | April 2024 to December 2024 | ||||||||||||
Chilean peso collars(2) |
$ | 36.0 | $ | 903 | $ | 968 | April 2024 to December 2024 | ||||||||||
Chilean peso forwards | $ | 90.0 | $ | 935 | April 2024 to December 2025 | ||||||||||||
Brazilian real forwards | $ | 9.0 | $ | 5.19 | April 2024 to December 2024 |
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
Mexican peso gains | $ | — | $ | 1.4 | ||||
Peruvian sol gains | 0.4 | 0.8 | ||||||
Canadian dollar (losses) gains | (1.7) | 0.5 | ||||||
Chilean peso losses | (9.0) | — | ||||||
Brazilian real losses | (0.2) | — | ||||||
$ | (10.5) | $ | 2.7 |
PAN AMERICAN SILVER CORP. | 24 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 25 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 26 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 27 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 28 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 29 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 30 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 31 |
Management Discussion and Analysis |
|||||
For the three months ended March 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 32 |
Date: May 8, 2024 | |||||
/s/ "Michael Steinmann" | |||||
Michael Steinmann | |||||
Chief Executive Officer |
Date: May 8, 2024 | |||||
/s/ "Ignacio Couturier" | |||||
Ignacio Couturier | |||||
Chief Financial Officer |
Q1 2024 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted.
|
PAN AMERICAN SILVER CORP. |
1 |
Q1 2024 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted.
|
PAN AMERICAN SILVER CORP. |
2 |
Q1 2024 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted.
|
Three months ended March 31, 2024 | Three months ended March 31, 2023 | |||||||
Weighted average shares during period (thousands) | 364,486 | 210,681 | ||||||
Shares outstanding end of period (thousands) | 362,940 | 364,439 | ||||||
Three months ended March 31, |
||||||||
2024 | 2023 | |||||||
FINANCIAL | ||||||||
Revenue | $ | 601.4 | $ | 390.3 | ||||
Cost of Sales(1) |
$ | 530.4 | $ | 313.1 | ||||
Mine operating earnings | $ | 71.0 | $ | 77.2 | ||||
Net (loss) earnings | $ | (30.8) | $ | 16.5 | ||||
Basic (loss) earnings per share(2) |
$ | (0.08) | $ | 0.08 | ||||
Adjusted earnings(3) |
$ | 4.7 | $ | 21.2 | ||||
Basic adjusted earnings per share(2)(3) |
$ | 0.01 | $ | 0.10 | ||||
Net cash generated from operating activities | $ | 61.1 | $ | 51.3 | ||||
Net cash generated from operating activities before changes in working capital(3) |
$ | 133.2 | $ | 43.3 | ||||
Sustaining capital expenditures(3) |
$ | 65.7 | $ | 32.5 | ||||
Non-sustaining capital expenditures(3)(4) |
$ | 36.0 | $ | 11.5 | ||||
Cash dividend paid per share(2) |
$ | 0.10 | $ | 0.10 | ||||
PRODUCTION | ||||||||
Silver (thousand ounces) | 5,009 | 3,891 | ||||||
Gold (thousand ounces) | 222.9 | 122.7 | ||||||
Zinc (thousand tonnes) | 9.8 | 10.6 | ||||||
Lead (thousand tonnes) | 4.6 | 5.3 | ||||||
Copper (thousand tonnes) | 1.7 | 1.1 | ||||||
CASH COSTS(3) ($/ounce) |
||||||||
Silver Segment | 12.67 | 12.19 | ||||||
Gold Segment | 1,207 | 1,120 | ||||||
AISC(3) ($/ounce) |
||||||||
Silver Segment | 15.89 | 14.13 | ||||||
Gold Segment | 1,580 | 1,196 | ||||||
AVERAGE REALIZED PRICES(5) |
||||||||
Silver ($/ounce) |
22.61 | 22.75 | ||||||
Gold ($/ounce) |
2,078 | 1,895 | ||||||
Zinc ($/tonne) |
2,424 | 3,133 | ||||||
Lead ($/tonne) |
2,063 | 2,160 | ||||||
Copper ($/tonne) |
8,373 | 8,903 |
PAN AMERICAN SILVER CORP. |
3 |
Q1 2024 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted.
|
Silver Production (thousand ounces) |
Gold Production (thousand ounces) |
Cash Costs
($ per ounce)(1)
|
AISC
($ per ounce)(1)
|
|||||||||||
Silver Segment | ||||||||||||||
La Colorada (Mexico) | 1,107 | 0.5 | 25.01 | 25.37 | ||||||||||
Cerro Moro (Argentina) | 766 | 20.9 | 1.62 | 6.43 | ||||||||||
Huaron (Peru) | 882 | -- | 8.24 | 13.99 | ||||||||||
San Vicente (Bolivia)(2) |
788 | -- | 15.56 | 17.62 | ||||||||||
Total Silver Segment(3) |
3,543 | 21.4 | 12.67 | 15.89 | ||||||||||
Gold Segment | ||||||||||||||
Jacobina (Brazil) | -- | 46.9 | 934 | 1,263 | ||||||||||
El Peñon (Chile) | 851 | 31.5 | 1,055 | 1,348 | ||||||||||
Timmins (Canada) | 4 | 31.3 | 1,645 | 2,014 | ||||||||||
Shahuindo (Peru) | 70 | 33.6 | 952 | 1,216 | ||||||||||
La Arena (Peru) | 9 | 18.7 | 1,252 | 1,536 | ||||||||||
Minera Florida (Chile) | 102 | 21.4 | 1,496 | 1,809 | ||||||||||
Dolores (Mexico) | 430 | 17.9 | 1,412 | 2,367 | ||||||||||
Total Gold Segment(3) |
1,466 | 201.4 | 1,207 | 1,580 | ||||||||||
Total Consolidated(3) |
5,009 | 222.9 |
Date: | May 9, 2024 | ||||
Time: | 11:00 am ET (8:00 am PT) | ||||
Dial-in numbers: | 1-888-259-6580 (toll-free in Canada and the U.S.) | ||||
(+1) 416-764-8624 (international participants) | |||||
Conference ID: | 12621721 | ||||
Webcast: | https://events.q4inc.com/attendee/962587784 |
PAN AMERICAN SILVER CORP. |
4 |
Q1 2024 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted.
|
PAN AMERICAN SILVER CORP. |
5 |
Q1 2024 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted.
|
PAN AMERICAN SILVER CORP. |
6 |
Q1 2024 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted.
|
PAN AMERICAN SILVER CORP. |
7 |