Form 20-F | Form 40-F | X |
Exhibit | Description | |||||||
99.1 |
Interim Financial Statements for the Period Ended September 30, 2024 |
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99.2 | ||||||||
99.3 | ||||||||
99.4 | ||||||||
99.5 |
News Release - Pan American Silver Reports Unaudited Third Quarter 2024 Results with Record Free Cash Flow of $151.5 Million |
Pan American Silver Corp. | ||||||||
(Registrant) | ||||||||
Date: November 5, 2024 |
By: | /s/ "Delaney Fisher" |
||||||
Delaney Fisher | ||||||||
SVP, Associate General Counsel and Corporate Secretary |
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Condensed Interim Consolidated Statements of Financial Position
(unaudited, in millions of U.S. dollars)
|
September 30, | December 31, | |||||||
2024 | 2023 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents (Note 21) | $ | 439.0 | $ | 399.6 | ||||
Investments (Note 5) | 30.9 | 41.3 | ||||||
Trade and other receivables | 150.5 | 138.0 | ||||||
Income tax receivables | 53.6 | 62.9 | ||||||
Inventories (Note 6) | 810.2 | 711.6 | ||||||
Other assets (Note 7) | 28.9 | 36.6 | ||||||
1,513.1 | 1,390.0 | |||||||
Non-current assets | ||||||||
Mineral properties, plant and equipment (Note 8) | 5,516.0 | 5,675.1 | ||||||
Long-term inventories (Note 6) | 28.9 | 27.8 | ||||||
Long-term tax receivables | 12.1 | 14.7 | ||||||
Deferred tax assets | 55.6 | 80.4 | ||||||
Other long-term assets (Note 10) | 26.3 | 25.1 | ||||||
Total assets | $ | 7,152.0 | $ | 7,213.1 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities (Note 11) | $ | 489.3 | $ | 498.0 | ||||
Provisions (Note 12) | 61.1 | 41.6 | ||||||
Lease obligations (Note 13) | 46.1 | 45.7 | ||||||
Debt (Note 14) | 6.8 | 6.7 | ||||||
Income tax payables | 127.4 | 32.1 | ||||||
Other liabilities | 2.4 | 0.1 | ||||||
733.1 | 624.2 | |||||||
Non-current liabilities | ||||||||
Long-term provisions (Note 12) | 408.6 | 432.4 | ||||||
Deferred tax liabilities | 504.3 | 541.6 | ||||||
Long-term lease obligations (Note 13) | 61.6 | 52.2 | ||||||
Long-term debt (Note 14) | 700.7 | 697.0 | ||||||
Other long-term liabilities (Note 15) | 98.8 | 93.2 | ||||||
Total liabilities | 2,507.1 | 2,440.6 | ||||||
Equity | ||||||||
Issued capital | 5,939.0 | 5,966.5 | ||||||
Share option reserve | 94.2 | 94.0 | ||||||
Investment revaluation reserve | (30.4) | (30.3) | ||||||
Deficit | (1,370.8) | (1,269.5) | ||||||
Total equity attributable to Company shareholders | 4,632.0 | 4,760.7 | ||||||
Non-controlling interests | 12.9 | 11.8 | ||||||
Total equity | 4,644.9 | 4,772.5 | ||||||
Total liabilities and equity | $ | 7,152.0 | $ | 7,213.1 |
"signed" | Gillian Winckler, Director | "signed" | Michael Steinmann, Director |
PAN AMERICAN SILVER CORP. |
1 |
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Condensed Interim Consolidated Statements of
Earnings and Comprehensive Earnings
(unaudited, in millions of U.S. dollars and thousands of shares)
|
Three months ended September 30, |
Nine months ended September 30, |
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2024 | 2023 (Note 2) |
2024 | 2023 (Note 2) |
|||||||||||
Revenue (Note 22) | $ | 716.1 | $ | 616.3 | $ | 2,003.8 | $ | 1,646.5 | ||||||
Cost of sales (Note 22) | ||||||||||||||
Production costs (Note 17) | (400.9) | (399.9) | (1,217.6) | (1,037.9) | ||||||||||
Depreciation and amortization | (130.2) | (137.3) | (383.0) | (341.1) | ||||||||||
Royalties | (9.3) | (12.4) | (39.6) | (35.6) | ||||||||||
(540.4) | (549.6) | (1,640.2) | (1,414.6) | |||||||||||
Mine operating earnings (Note 22) | 175.7 | 66.7 | 363.6 | 231.9 | ||||||||||
General and administrative | (17.4) | (15.0) | (63.5) | (42.9) | ||||||||||
Exploration and project development | (3.2) | (3.7) | (9.2) | (10.8) | ||||||||||
Mine care and maintenance (Note 18) | (7.4) | (24.2) | (24.9) | (73.1) | ||||||||||
Foreign exchange gains | 1.6 | 14.6 | 19.3 | 16.8 | ||||||||||
Impairment charges (Note 9) | — | — | — | (42.4) | ||||||||||
Derivative gains (losses) (Note 4d) | 5.3 | (4.2) | (6.1) | 1.2 | ||||||||||
Mineral properties, plant and equipment (losses) gains | (3.0) | 10.0 | (3.9) | 8.3 | ||||||||||
Transaction and integration costs | — | (0.6) | — | (25.0) | ||||||||||
Other income | 0.3 | 0.5 | 0.8 | 0.9 | ||||||||||
Earnings from operations | 151.9 | 44.1 | 276.1 | 64.9 | ||||||||||
Investment loss (Note 4b) | (0.6) | (7.8) | (8.4) | (8.8) | ||||||||||
Interest and finance expense (Note 19) | (20.9) | (28.0) | (62.0) | (66.9) | ||||||||||
Earnings (loss) before income taxes | 130.4 | 8.3 | 205.7 | (10.8) | ||||||||||
Income tax expense (Note 23) | (73.3) | (28.9) | (200.8) | (26.3) | ||||||||||
Net earnings (loss) | $ | 57.1 | $ | (20.6) | $ | 4.9 | $ | (37.1) | ||||||
Net earnings (loss) attributable to: | ||||||||||||||
Equity holders of the Company | $ | 56.7 | $ | (19.7) | $ | 3.9 | $ | (35.7) | ||||||
Non-controlling interests | 0.4 | (0.9) | 1.0 | (1.4) | ||||||||||
$ | 57.1 | $ | (20.6) | $ | 4.9 | $ | (37.1) | |||||||
Other comprehensive earnings (loss), net of taxes | ||||||||||||||
Items that will not be reclassified to net earnings: | ||||||||||||||
Loss on investments (Note 4c) | $ | — | $ | (3.5) | $ | (0.1) | $ | (24.7) | ||||||
Income tax recovery related to investments (Note 23) | — | — | — | 0.4 | ||||||||||
Total other comprehensive loss | $ | — | $ | (3.5) | $ | (0.1) | $ | (24.3) | ||||||
Total comprehensive earnings (loss) | $ | 57.1 | $ | (24.1) | $ | 4.8 | $ | (61.4) | ||||||
Total comprehensive earnings (loss) attributable to: | ||||||||||||||
Equity holders of the Company | $ | 56.7 | $ | (23.2) | $ | 3.8 | $ | (60.0) | ||||||
Non-controlling interests | 0.4 | (0.9) | 1.0 | (1.4) | ||||||||||
$ | 57.1 | $ | (24.1) | $ | 4.8 | $ | (61.4) | |||||||
Earnings (loss) per share attributable to common shareholders (Note 20) | ||||||||||||||
Basic earnings (loss) per share | $ | 0.16 | $ | (0.05) | $ | 0.01 | $ | (0.11) | ||||||
Diluted earnings (loss) per share | $ | 0.16 | $ | (0.05) | $ | 0.01 | $ | (0.11) | ||||||
Weighted average shares outstanding Basic | 362,996 | 364,439 | 363,477 | 313,750 | ||||||||||
Weighted average shares outstanding Diluted | 363,068 | 364,439 | 363,501 | 313,750 |
PAN AMERICAN SILVER CORP. |
2 |
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Condensed Interim Consolidated Statements of Cash Flows
(unaudited, in millions of U.S. dollars)
|
Three months ended September 30, |
Nine months ended September 30, |
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2024 | 2023 (Note 2) |
2024 | 2023 (Note 2) |
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Operating activities | ||||||||||||||
Net earnings (loss) for the period | $ | 57.1 | $ | (20.6) | $ | 4.9 | $ | (37.1) | ||||||
Income tax expense (Note 23) | 73.3 | 28.9 | 200.8 | 26.3 | ||||||||||
Depreciation and amortization | 130.2 | 137.3 | 383.0 | 341.1 | ||||||||||
Impairment charges (Note 9) | — | — | — | 42.4 | ||||||||||
Net realizable value inventory (recovery) expense (Note 17) | (8.2) | (7.9) | 32.9 | (31.6) | ||||||||||
Accretion on closure and decommissioning provision (Notes 12, 19) | 8.0 | 10.2 | 23.8 | 26.0 | ||||||||||
Investment loss (Notes 4b) | 0.6 | 7.8 | 8.4 | 8.8 | ||||||||||
Interest paid | (9.5) | (16.4) | (28.0) | (34.0) | ||||||||||
Interest received | 3.3 | 5.1 | 10.4 | 12.3 | ||||||||||
Income taxes paid | (26.4) | (35.8) | (98.8) | (117.0) | ||||||||||
Other operating activities (Note 21) | 7.4 | 11.3 | 34.8 | 32.4 | ||||||||||
Net change in non-cash working capital items (Note 21) | (9.6) | (5.3) | (122.2) | 13.3 | ||||||||||
$ | 226.2 | $ | 114.6 | $ | 450.0 | $ | 282.9 | |||||||
Investing activities | ||||||||||||||
Payments for mineral properties, plant and equipment | $ | (75.1) | $ | (108.7) | $ | (237.9) | $ | (260.2) | ||||||
Cash acquired from the Yamana Gold Inc. acquisition | — | — | — | 259.5 | ||||||||||
Cash disposed in sale of subsidiaries | — | (194.1) | — | (194.1) | ||||||||||
Cash proceeds from sale of subsidiaries | — | 498.6 | — | 503.6 | ||||||||||
Proceeds from dispositions and mineral property, plant and equipment | 0.4 | 2.4 | 1.7 | 2.9 | ||||||||||
(Purchase of) proceeds from disposal of investments | — | (8.1) | 2.0 | 144.7 | ||||||||||
Net (payments) proceeds from derivatives | (0.5) | 3.6 | (0.2) | 12.1 | ||||||||||
$ | (75.2) | $ | 193.7 | $ | (234.4) | $ | 468.5 | |||||||
Financing activities | ||||||||||||||
Proceeds from common shares issued | $ | 0.6 | $ | — | $ | 0.9 | $ | — | ||||||
Contributions from non-controlling interests | — | 7.3 | 0.1 | 11.5 | ||||||||||
Dividends paid | (36.3) | (36.5) | (109.1) | (94.0) | ||||||||||
Shares repurchased under Normal Course Issuer Bid (Note 16h) | — | — | (24.3) | — | ||||||||||
Proceeds from debt (Note 14) | — | 15.0 | — | 315.0 | ||||||||||
Repayment of debt (Note 14) | (1.7) | (309.8) | (5.0) | (713.9) | ||||||||||
Payment of equipment leases | (12.2) | (12.4) | (38.1) | (24.9) | ||||||||||
$ | (49.6) | $ | (336.4) | $ | (175.5) | $ | (506.3) | |||||||
Effects of exchange rate changes on cash and cash equivalents | 0.4 | (1.3) | (0.7) | (4.5) | ||||||||||
Increase (decrease) in cash and cash equivalents | 101.8 | (29.4) | 39.4 | 240.6 | ||||||||||
Cash held for sale | — | (0.1) | — | (0.1) | ||||||||||
Cash and cash equivalents at the beginning of the period | 337.2 | 367.5 | 399.6 | 107.0 | ||||||||||
Cash held for sale at the beginning of the period | — | 9.5 | — | — | ||||||||||
Cash and cash equivalents at the end of the period | $ | 439.0 | $ | 347.5 | $ | 439.0 | $ | 347.5 |
PAN AMERICAN SILVER CORP. |
3 |
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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 |
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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 | ||||||||||||||||||
Contributions from (distributions 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 earnings | ||||||||||||||||||||||||||
Net earnings for the period | — | — | — | — | 3.9 | 3.9 | 1.0 | 4.9 | ||||||||||||||||||
Other comprehensive loss | — | — | — | (0.1) | — | (0.1) | — | (0.1) | ||||||||||||||||||
— | — | — | (0.1) | 3.9 | 3.8 | 1.0 | 4.8 | |||||||||||||||||||
Shares issued on the exercise of stock options | 61 | 1.2 | (0.3) | — | — | 0.9 | — | 0.9 | ||||||||||||||||||
Shares repurchased (Note 16h) | (1,720) | (28.7) | — | — | 3.9 | (24.8) | — | (24.8) | ||||||||||||||||||
Share-based compensation on option grants | — | — | 0.5 | — | — | 0.5 | — | 0.5 | ||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||
Dividends paid | — | — | — | — | (109.1) | (109.1) | — | (109.1) | ||||||||||||||||||
Balance, September 30, 2024 | 363,001 | 5,939.0 | 94.2 | (30.4) | (1,370.8) | 4,632.0 | 12.9 | 4,644.9 |
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 | — | — | — | — | (52.2) | (52.2) | (1.4) | (53.6) | ||||||||||||||||||
Other comprehensive loss | — | — | — | (24.3) | — | (24.3) | — | (24.3) | ||||||||||||||||||
— | — | — | (24.3) | (52.2) | (76.5) | (1.4) | (77.9) | |||||||||||||||||||
The Acquisition (Note 1) | 153,758 | 2,823.0 | — | — | — | 2,823.0 | 489.2 | 3,312.2 | ||||||||||||||||||
Dispositions | — | — | — | — | — | — | (446.8) | (446.8) | ||||||||||||||||||
Share-based compensation on option grants | — | — | 0.5 | — | — | 0.5 | — | 0.5 | ||||||||||||||||||
Contributions from (distributions to) non-controlling interests | — | — | — | — | (0.2) | (0.2) | 11.7 | 11.5 | ||||||||||||||||||
Dividends paid | — | — | — | — | (94.0) | (94.0) | — | (94.0) | ||||||||||||||||||
Balance, September 30, 2023 | 364,439 | $ | 5,963.0 | $ | 93.8 | $ | (27.3) | $ | (1,181.2) | $ | 4,848.3 | $ | 58.8 | $ | 4,907.1 |
PAN AMERICAN SILVER CORP. |
4 |
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Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 |
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Canada | Lake Shore Gold Corp. | 100% | Bell Creek and Timmins West mines (together "Timmins mine") | ||||||||
Chile | Minera Meridian Ltda. | 100% | El Peñon mine |
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Minera Florida Ltda |
100% | Minera Florida mine |
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Minera Cavancha SpA. |
80% | La Pepa project |
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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 | ||||||||
Estelar Resources S.A. |
100% | Cerro Moro mine |
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Minera Joaquin S.R.L. | 100% | Joaquin mine | |||||||||
Minera Argenta S.A. | 100% | Navidad project |
PAN AMERICAN SILVER CORP. |
5 |
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Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 |
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Notes to the Condensed Interim Consolidated Financial Statements |
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As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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) |
September 30, 2024 | Amortized cost | FVTPL | FVTOCI | Total | ||||||||||
Financial Assets: | ||||||||||||||
Cash and cash equivalents | $ | 439.0 | $ | — | $ | — | $ | 439.0 | ||||||
Trade receivables from provisional concentrates sales(1) |
— | 20.3 | — | 20.3 | ||||||||||
Receivables not arising from sale of metal concentrates(1) |
119.1 | — | — | 119.1 | ||||||||||
Investments | — | 29.8 | 1.1 | 30.9 | ||||||||||
Derivative assets(2) |
— | 3.4 | — | 3.4 | ||||||||||
$ | 558.1 | $ | 53.5 | $ | 1.1 | $ | 612.7 | |||||||
Financial Liabilities: | ||||||||||||||
Derivative liabilities(2) |
$ | — | $ | 2.4 | $ | — | $ | 2.4 | ||||||
Debt | $ | 707.5 | $ | — | $ | — | $ | 707.5 |
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 September 30, |
Nine months ended September 30, |
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2024 | 2023 | 2024 | 2023 | |||||||||||
Unrealized losses on investments | $ | (0.6) | $ | (7.9) | $ | (8.4) | $ | (9.8) | ||||||
Realized gains on investments | — | 0.1 | — | 1.0 | ||||||||||
$ | (0.6) | $ | (7.8) | $ | (8.4) | $ | (8.8) |
PAN AMERICAN SILVER CORP. |
7 |
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Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Unrealized losses on investments | $ | — | $ | (3.4) | $ | (0.1) | $ | (5.3) | ||||||
Realized losses on investments(1) |
— | (0.1) | — | (19.4) | ||||||||||
$ | — | $ | (3.5) | $ | (0.1) | $ | (24.7) | |||||||
Three months ended September 30, |
Nine months ended September 30, |
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2024 | 2023 | 2024 | 2023 | |||||||||||
Realized (losses) gains on derivatives | $ | (0.5) | $ | 3.6 | $ | (0.2) | $ | 12.1 | ||||||
Unrealized gains (losses) on derivatives | 5.8 | (7.8) | (5.9) | (10.9) | ||||||||||
$ | 5.3 | $ | (4.2) | $ | (6.1) | $ | 1.2 | |||||||
At September 30, 2024 | At December 31, 2023 | |||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||
Assets and Liabilities: | ||||||||||||||
Investments | $ | 30.9 | $ | — | $ | 41.3 | $ | — | ||||||
Trade receivables from provisional concentrate sales | — | 20.3 | — | 17.5 | ||||||||||
Derivative assets(1) |
— | 3.4 | — | 6.9 | ||||||||||
Derivative liabilities(1) |
— | (2.4) | — | (0.1) | ||||||||||
$ | 30.9 | $ | 21.3 | $ | 41.3 | $ | 24.3 |
PAN AMERICAN SILVER CORP. |
8 |
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Notes to the Condensed Interim Consolidated Financial Statements |
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As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 |
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Notes to the Condensed Interim Consolidated Financial Statements |
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As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 |
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Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Mexican peso (losses) gains | $ | (1.0) | $ | 0.1 | $ | (1.4) | $ | 2.4 | ||||||
Peruvian sol gains (losses) | 0.8 | (0.5) | 0.4 | 1.5 | ||||||||||
Canadian dollar gains (losses) | 0.6 | (1.2) | (1.4) | 1.0 | ||||||||||
Chilean peso gains (losses) | 2.9 | (2.0) | (0.8) | (4.8) | ||||||||||
Brazilian real gains (losses) | 1.6 | (0.6) | (3.2) | 0.3 | ||||||||||
$ | 4.9 | $ | (4.2) | $ | (6.4) | $ | 0.4 |
PAN AMERICAN SILVER CORP. |
11 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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) |
September 30, 2024 | December 31, 2023 | |||||||||||||||||||
Fair Value | Cost | Accumulated unrealized holding losses |
Fair Value | Cost | Accumulated unrealized holding gains |
|||||||||||||||
Investments | $ | 30.9 | $ | 35.0 | $ | (4.1) | $ | 41.3 | $ | 37.3 | $ | 4.0 |
September 30, 2024 |
December 31, 2023 |
|||||||
Concentrate inventory | $ | 30.8 | $ | 21.3 | ||||
Stockpile ore | 74.9 | 67.2 | ||||||
Heap leach inventory and in process | 381.7 | 338.6 | ||||||
Doré and finished inventory | 148.1 | 121.1 | ||||||
Materials and supplies | 203.6 | 191.2 | ||||||
Total inventories | $ | 839.1 | $ | 739.4 | ||||
Less: current portion of inventories | $ | (810.2) | $ | (711.6) | ||||
Non-current portion of inventories(1) |
$ | 28.9 | $ | 27.8 |
September 30, 2024 |
December 31, 2023 |
|||||||
Insurance prepaids | $ | 2.0 | $ | 7.4 | ||||
Other prepaids | 23.5 | 22.3 | ||||||
Derivative assets | 3.4 | 6.9 | ||||||
$ | 28.9 | $ | 36.6 |
PAN AMERICAN SILVER CORP. |
12 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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) |
September 30, 2024 | December 31, 2023 | ||||||||||||||||||||||
Cost | Accumulated Depreciation and Impairment |
Carrying Value |
Cost | Accumulated Depreciation and Impairment |
Carrying Value |
||||||||||||||||||
Producing: | |||||||||||||||||||||||
Brazil | Jacobina |
$ | 1,651.9 | $ | (172.7) | $ | 1,479.2 | $ | 1,539.1 | $ | (85.5) | $ | 1,453.6 | ||||||||||
Chile | El Peñon | 505.6 | (107.2) | 398.4 | 477.7 | (56.7) | 421.0 | ||||||||||||||||
Minera Florida |
181.9 | (38.1) | 143.8 | 167.6 | (15.9) | 151.7 | |||||||||||||||||
Peru | Huaron | 316.6 | (153.2) | 163.4 | 261.6 | (146.1) | 115.5 | ||||||||||||||||
Shahuindo | 718.1 | (313.9) | 404.2 | 690.6 | (265.7) | 424.9 | |||||||||||||||||
La Arena | 327.8 | (214.9) | 112.9 | 307.9 | (178.8) | 129.1 | |||||||||||||||||
Mexico | La Colorada | 462.0 | (235.0) | 227.0 | 443.4 | (224.8) | 218.6 | ||||||||||||||||
Dolores | 1,769.4 | (1,764.7) | 4.7 | 1,777.5 | (1,680.7) | 96.8 | |||||||||||||||||
Argentina | Cerro Moro(1) |
151.3 | (52.7) | 98.6 | 142.5 | (22.9) | 119.6 | ||||||||||||||||
Bolivia | San Vicente | 165.4 | (134.3) | 31.1 | 160.7 | (127.8) | 32.9 | ||||||||||||||||
Canada | Timmins | 434.8 | (190.0) | 244.8 | 400.7 | (165.8) | 234.9 | ||||||||||||||||
Other | 6.3 | (5.1) | 1.2 | 31.9 | (19.6) | 12.3 | |||||||||||||||||
$ | 6,691.1 | $ | (3,381.8) | $ | 3,309.3 | $ | 6,401.2 | $ | (2,990.3) | $ | 3,410.9 | ||||||||||||
Non-Producing: | |||||||||||||||||||||||
Land | $ | 14.3 | $ | (1.0) | $ | 13.3 | $ | 14.4 | $ | (1.0) | $ | 13.4 | |||||||||||
Brazil | Jacobina |
896.7 | — | 896.7 | 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 | |||||||||||||||||
La 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 |
131.8 | — | 131.8 | 119.1 | — | 119.1 | |||||||||||||||||
Argentina | Manantial Espejo(3) |
518.4 | (518.4) | — | 518.4 | (518.4) | — | ||||||||||||||||
Navidad |
566.6 | (376.2) | 190.4 | 566.6 | (376.2) | 190.4 | |||||||||||||||||
Guatemala | Escobal | 257.2 | (4.8) | 252.4 | 257.2 | (3.8) | 253.4 | ||||||||||||||||
Canada | Timmins | 63.9 | — | 63.9 | 62.9 | — | 62.9 | ||||||||||||||||
Other(4) |
225.7 | (30.5) | 195.2 | 196.8 | (17.4) | 179.4 | |||||||||||||||||
$ | 3,175.1 | $ | (968.4) | $ | 2,206.7 | $ | 3,218.5 | $ | (954.3) | $ | 2,264.2 | ||||||||||||
Total | $ | 9,866.2 | $ | (4,350.2) | $ | 5,516.0 | $ | 9,619.7 | $ | (3,944.6) | $ | 5,675.1 |
PAN AMERICAN SILVER CORP. |
13 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Impairment expense | $ | — | $ | — | $ | — | $ | 42.4 | ||||||
September 30, 2024 |
December 31, 2023 |
|||||||
Long-term prepaids | $ | 13.1 | $ | 9.0 | ||||
Escrow funds | 7.2 | 9.9 | ||||||
Other | 6.0 | 6.2 | ||||||
$ | 26.3 | $ | 25.1 |
September 30, 2024 |
December 31, 2023 |
|||||||
Trade account payables(1) |
$ | 174.3 | $ | 198.2 | ||||
Royalty payables | 30.9 | 30.1 | ||||||
Other accounts payable and accrued liabilities | 134.0 | 144.2 | ||||||
Payroll and severance liabilities | 116.4 | 85.0 | ||||||
Value added tax liabilities | 10.2 | 9.6 | ||||||
Other tax payables | 23.5 | 30.9 | ||||||
$ | 489.3 | $ | 498.0 |
PAN AMERICAN SILVER CORP. |
14 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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) |
September 30, 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 | (9.1) | 29.9 | ||||||
Expenditures | (19.0) | (27.3) | ||||||
Accretion expense (Note 19) | 23.8 | 34.2 | ||||||
Reclamation obligations, closing balance | 442.8 | 447.1 | ||||||
Litigation | 26.9 | 10.5 | ||||||
Litigation from the Acquisition | — | 34.6 | ||||||
Dispositions | — | (18.2) | ||||||
Total provisions | $ | 469.7 | $ | 474.0 |
Provision classification: | September 30, 2024 |
December 31, 2023 |
||||||
Current | $ | 61.1 | $ | 41.6 | ||||
Non-current | 408.6 | 432.4 | ||||||
$ | 469.7 | $ | 474.0 |
September 30, 2024 |
December 31, 2023 |
|||||||
Opening net book value | $ | 105.0 | $ | 30.3 | ||||
Additions | 52.0 | 36.8 | ||||||
The Acquisition | — | 81.4 | ||||||
Depreciation | (34.4) | (39.2) | ||||||
Dispositions | — | (9.0) | ||||||
Other | (8.5) | 4.7 | ||||||
Closing net book value | $ | 114.1 | $ | 105.0 |
September 30, 2024 |
December 31, 2023 |
|||||||
Within one year | $ | 50.4 | $ | 50.7 | ||||
Between one and five years | 55.5 | 53.1 | ||||||
Beyond five years | 22.6 | 12.0 | ||||||
Total undiscounted lease obligations | 128.5 | 115.8 | ||||||
Less future interest charges | (20.8) | (17.9) | ||||||
Total discounted lease obligations | 107.7 | 97.9 | ||||||
Less: current portion of lease obligations | (46.1) | (45.7) | ||||||
Non-current portion of lease obligations | $ | 61.6 | $ | 52.2 |
PAN AMERICAN SILVER CORP. |
15 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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) |
December 31, 2023 | Repayments | Accrued Interest | September 30, 2024 |
|||||||||||
Senior note maturing December 2027 | $ | 273.8 | $ | — | $ | 1.6 | $ | 275.4 | ||||||
Senior note maturing August 2031 | 409.8 | — | 7.2 | 417.0 | ||||||||||
Other loans |
20.1 | (5.0) | — | 15.1 | ||||||||||
Less: current portion of debt | (6.7) | (6.8) | ||||||||||||
Non-current portion of debt | $ | 697.0 | $ | (5.0) | $ | 8.8 | $ | 700.7 |
December 31, 2022 | Proceeds | Repayments | Accrued 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 | 33.7 | — | (228.5) | 1.0 | (7.0) | 252.4 | (31.5) | 20.1 | ||||||||||||||||||
Less: current portion of debt | (13.7) | (6.7) | ||||||||||||||||||||||||
Non-current portion of debt | $ | 180.0 | $ | 315.0 | $ | (703.5) | $ | 9.4 | $ | (7.0) | $ | 927.6 | $ | (31.5) | $ | 697.0 |
PAN AMERICAN SILVER CORP. |
16 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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) |
September 30, 2024 |
December 31, 2023 |
|||||||
Deferred credit(1) |
$ | 24.0 | $ | 21.6 | ||||
Deferred revenue(2) |
13.3 | 13.1 | ||||||
Severance liabilities(3) |
61.5 | 58.5 | ||||||
$ | 98.8 | $ | 93.2 |
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 | |||||
Exercised | (61.3) | 20.25 | ||||||
Forfeited | (16.0) | 22.25 | ||||||
As at September 30, 2024 | 435.9 | $ | 22.66 |
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Prices CAD$ |
Number Outstanding as at September 30, 2024 | Weighted Average Remaining Contractual Life (years) |
Weighted Average Exercise Price CAD$ |
Number Outstanding as at September 30, 2024 | Weighted Average Exercise Price CAD$ |
||||||||||||
$17.53 - $23.03 | 371.7 | 4.9 | $ | 21.34 | 98.4 | $ | 19.67 | ||||||||||
$23.04 - $28.54 | 20.4 | 2.2 | $ | 26.54 | 20.4 | $ | 26.54 | ||||||||||
$28.55 - $34.04 | 36.9 | 4.2 | $ | 30.70 | 24.3 | $ | 30.70 | ||||||||||
$34.05 - $39.48 | 6.9 | 3.2 | $ | 39.48 | 6.9 | $ | 39.48 | ||||||||||
435.9 | 4.7 | $ | 22.66 | 150.0 | $ | 23.31 |
PAN AMERICAN SILVER CORP. |
17 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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) |
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 | |||||
Change in value | — | 3.3 | ||||||
As at September 30, 2024 | 756.9 | $ | 15.8 |
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 | $ | 13.3 | |||||
Forfeited | (102.1) | (2.1) | ||||||
Change in value | — | 3.9 | ||||||
As at September 30, 2024 | 702.9 | $ | 15.1 |
DSU | Number Outstanding | Fair Value | ||||||
As at December 31, 2022 | — | $ | — | |||||
Granted | 109.0 | 1.7 | ||||||
Change in value | — | 0.1 | ||||||
As at December 31, 2023 | 109.0 | $ | 1.8 | |||||
Granted | 47.5 | 1.0 | ||||||
Paid out | (25.7) | (0.6) | ||||||
Change in value | — | 0.6 | ||||||
As at September 30, 2024 | 130.8 | $ | 2.8 |
PAN AMERICAN SILVER CORP. |
18 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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) |
Declaration Date | Record Date | Dividend per common share | ||||||
November 5, 2024 (1) |
November 18, 2024 | $ | 0.10 | |||||
August 7, 2024 | August 19, 2024 | $ | 0.10 | |||||
May 8, 2024 | 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. |
19 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 (Note 2) |
2024 | 2023 (Note 2) |
|||||||||||
Materials and consumables | $ | 154.7 | $ | 154.8 | $ | 448.3 | $ | 384.3 | ||||||
Salaries and employee benefits | 138.5 | 136.7 | 403.4 | 344.5 | ||||||||||
Contractors | 88.8 | 94.5 | 288.5 | 236.9 | ||||||||||
Utilities | 19.2 | 17.5 | 56.7 | 46.4 | ||||||||||
Insurance | 5.8 | 6.5 | 16.0 | 16.5 | ||||||||||
Other expense | 17.1 | 6.2 | 38.1 | 18.5 | ||||||||||
Changes in inventories(1) |
(23.2) | (16.3) | (33.4) | (9.2) | ||||||||||
$ | 400.9 | $ | 399.9 | $ | 1,217.6 | $ | 1,037.9 |
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Escobal | $ | 5.1 | $ | 6.5 | $ | 18.6 | $ | 18.9 | ||||||
Morococha | — | 4.7 | — | 17.9 | ||||||||||
Navidad | 0.9 | 1.5 | 2.3 | 3.5 | ||||||||||
MARA | — | 8.9 | — | 20.4 | ||||||||||
Manantial Espejo | 1.4 | 2.6 | 4.0 | 12.4 | ||||||||||
$ | 7.4 | $ | 24.2 | $ | 24.9 | $ | 73.1 |
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Interest expense | $ | 11.9 | $ | 16.9 | $ | 35.3 | $ | 38.2 | ||||||
Finance fees | 1.0 | 0.9 | 2.9 | 2.7 | ||||||||||
Accretion expense (Note 12) | 8.0 | 10.2 | 23.8 | 26.0 | ||||||||||
$ | 20.9 | $ | 28.0 | $ | 62.0 | $ | 66.9 |
For the three months ended September 30, | 2024 | 2023 (Note 2) | ||||||||||||||||||
Earnings(1) |
Shares | Per-Share Amount |
Earnings(1) |
Shares | Per-Share Amount |
|||||||||||||||
Net earnings (loss) for the period | $ | 56.7 | $ | (19.7) | ||||||||||||||||
Basic earnings (loss) per share | $ | 56.7 | 362,996 | $ | 0.16 | $ | (19.7) | 364,439 | $ | (0.05) | ||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||
Stock Options | — | 71.8 | — | — | ||||||||||||||||
Diluted earnings (loss) per share | $ | 56.7 | 363,068 | $ | 0.16 | $ | (19.7) | 364,439 | $ | (0.05) |
PAN AMERICAN SILVER CORP. |
20 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 nine months ended September 30, | 2024 | 2023 (Note 2) | ||||||||||||||||||
Earnings(1) |
Shares | Per-Share Amount |
Earnings(1) |
Shares | Per-Share Amount |
|||||||||||||||
Net earnings (loss) for the period | $ | 3.9 | $ | (35.7) | ||||||||||||||||
Basic earnings (loss) per share | $ | 3.9 | 363,477 | $ | 0.01 | $ | (35.7) | 313,750 | $ | (0.11) | ||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||
Stock Options | — | 23.9 | — | — | ||||||||||||||||
Diluted earnings (loss) per share | $ | 3.9 | 363,501 | $ | 0.01 | $ | (35.7) | 313,750 | $ | (0.11) |
Three months ended September 30, |
Nine months ended September 30, |
||||||||||||||||
Other operating activities | 2024 | 2023 | 2024 | 2023 | |||||||||||||
Adjustments for non-cash income statement items: | |||||||||||||||||
Unrealized foreign exchange gains | $ | (3.8) | $ | (1.0) | $ | (15.3) | $ | — | |||||||||
Interest expense (Note 19) | 11.9 | 16.9 | 35.3 | 38.2 | |||||||||||||
(Gains) losses on derivatives (Note 4d) | (5.3) | 4.2 | 6.1 | (1.2) | |||||||||||||
Share-based compensation expense | 1.6 | 1.2 | 4.8 | 3.7 | |||||||||||||
Losses (gains) on sale of mineral properties, plant and equipment | 3.0 | (10.0) | 3.9 | (8.3) | |||||||||||||
$ | 7.4 | $ | 11.3 | $ | 34.8 | $ | 32.4 |
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||
Changes in non-cash operating working capital items: | 2024 | 2023 (Note 2) |
2024 | 2023 (Note 2) |
||||||||||
Trade and other receivables | $ | (8.1) | $ | 0.6 | $ | (18.0) | $ | 42.7 | ||||||
Inventories | (23.4) | 2.7 | (82.1) | 19.4 | ||||||||||
Prepaid expenses | 1.0 | 8.1 | 0.1 | 8.9 | ||||||||||
Accounts payable and accrued liabilities | 18.3 | 1.0 | (22.2) | (41.5) | ||||||||||
Legal provisions | 2.6 | (17.7) | — | (16.2) | ||||||||||
$ | (9.6) | $ | (5.3) | $ | (122.2) | $ | 13.3 |
Cash and cash equivalents | September 30, 2024 |
December 31, 2023 |
||||||
Cash in banks | $ | 439.0 | $ | 399.6 | ||||
PAN AMERICAN SILVER CORP. |
21 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 September 30, 2024 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) |
||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 47.8 | $ | 30.5 | $ | 5.6 | $ | 11.7 | $ | 10.8 | |||||||||
Peru | Huaron | 42.8 | 26.6 | 4.9 | 11.3 | 10.4 | ||||||||||||||
Bolivia | San Vicente | 22.8 | 13.9 | 1.7 | 7.2 | 1.7 | ||||||||||||||
Argentina | Cerro Moro | 55.5 | 50.4 | 9.4 | (4.3) | 1.1 | ||||||||||||||
Guatemala | Escobal | — | — | — | — | 0.1 | ||||||||||||||
Total Silver Segment | 168.9 | 121.4 | 21.6 | 25.9 | 24.1 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 50.5 | 33.6 | 17.6 | (0.7) | 0.1 | ||||||||||||||
Peru | Shahuindo | 85.4 | 34.2 | 12.6 | 38.6 | 13.1 | ||||||||||||||
La Arena | 54.6 | 31.9 | 9.7 | 13.0 | 4.5 | |||||||||||||||
Canada | Timmins | 78.8 | 50.3 | 8.6 | 19.9 | 12.2 | ||||||||||||||
Brazil | Jacobina | 127.5 | 47.3 | 32.0 | 48.2 | 16.5 | ||||||||||||||
Chile | El Peñon | 104.0 | 57.0 | 19.1 | 27.9 | 10.6 | ||||||||||||||
Minera Florida | 46.4 | 34.5 | 6.5 | 5.4 | 5.5 | |||||||||||||||
Total Gold Segment | 547.2 | 288.8 | 106.1 | 152.3 | 62.5 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Corporate | — | — | 2.1 | (2.1) | 0.5 | ||||||||||||||
Other | Other | — | — | 0.4 | (0.4) | 0.2 | ||||||||||||||
Total | $ | 716.1 | $ | 410.2 | $ | 130.2 | $ | 175.7 | $ | 87.3 |
PAN AMERICAN SILVER CORP. |
22 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 September 30, 2023 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties (Note 2) |
Depreciation (Note 2) |
Mine operating earnings (losses) (Note 2) |
Capital expenditures(1) |
||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 31.5 | $ | 31.8 | $ | 5.5 | $ | (5.8) | $ | 20.7 | |||||||||
Peru | Huaron | 36.3 | 26.2 | 3.4 | 6.7 | 7.9 | ||||||||||||||
Morococha(2) |
— | — | — | — | 1.7 | |||||||||||||||
Bolivia | San Vicente | 16.0 | 12.6 | 1.6 | 1.8 | 1.2 | ||||||||||||||
Argentina | Manantial Espejo(2) |
6.5 | 3.8 | 0.3 | 2.4 | — | ||||||||||||||
Cerro Moro | 79.2 | 51.8 | 10.2 | 17.2 | 5.4 | |||||||||||||||
Guatemala | Escobal | — | — | — | — | 0.7 | ||||||||||||||
Total Silver Segment | 169.5 | 126.2 | 21.0 | 22.3 | 37.6 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 65.8 | 32.5 | 27.7 | 5.6 | 2.2 | ||||||||||||||
Peru | Shahuindo | 65.8 | 33.9 | 10.7 | 21.2 | 14.8 | ||||||||||||||
La Arena | 43.8 | 29.6 | 7.4 | 6.8 | 4.1 | |||||||||||||||
Canada | Timmins | 56.0 | 45.4 | 9.3 | 1.3 | 16.1 | ||||||||||||||
Brazil | Jacobina | 87.2 | 42.1 | 30.4 | 14.7 | 23.8 | ||||||||||||||
Chile | El Peñon | 78.7 | 59.3 | 17.0 | 2.4 | 1.2 | ||||||||||||||
Minera Florida | 49.5 | 43.3 | 10.9 | (4.7) | 1.7 | |||||||||||||||
Total Gold Segment | 446.8 | 286.1 | 113.4 | 47.3 | 63.9 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Corporate | — | — | 2.3 | (2.3) | 1.7 | ||||||||||||||
Argentina | MARA(2) |
— | — | 0.1 | (0.1) | 17.3 | ||||||||||||||
Other | Other | — | — | 0.5 | (0.5) | 0.6 | ||||||||||||||
Total | $ | 616.3 | $ | 412.3 | $ | 137.3 | $ | 66.7 | $ | 121.1 |
PAN AMERICAN SILVER CORP. |
23 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 nine months ended September 30, 2024 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) |
||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 99.8 | $ | 82.2 | $ | 11.8 | $ | 5.8 | $ | 35.5 | |||||||||
Peru | Huaron | 125.6 | 77.8 | 11.3 | 36.5 | 44.3 | ||||||||||||||
Bolivia | San Vicente | 76.3 | 49.6 | 6.2 | 20.5 | 4.4 | ||||||||||||||
Argentina | Cerro Moro | 172.4 | 144.5 | 28.1 | (0.2) | 8.8 | ||||||||||||||
Guatemala | Escobal | — | — | — | — | 0.9 | ||||||||||||||
Total Silver Segment | 474.1 | 354.1 | 57.4 | 62.6 | 93.9 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 157.2 | 146.1 | 59.7 | (48.6) | 0.3 | ||||||||||||||
Peru | Shahuindo | 239.7 | 104.4 | 35.3 | 100.0 | 32.7 | ||||||||||||||
La Arena | 142.4 | 84.8 | 24.9 | 32.7 | 13.4 | |||||||||||||||
Canada | Timmins | 218.6 | 157.5 | 25.1 | 36.0 | 36.8 | ||||||||||||||
Brazil | Jacobina | 332.6 | 138.9 | 89.1 | 104.6 | 48.8 | ||||||||||||||
Chile | El Peñon | 285.1 | 160.1 | 55.3 | 69.7 | 28.5 | ||||||||||||||
Minera Florida | 154.1 | 111.3 | 28.4 | 14.4 | 16.2 | |||||||||||||||
Total Gold Segment | 1,529.7 | 903.1 | 317.8 | 308.8 | 176.7 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Corporate | — | — | 6.4 | (6.4) | 4.6 | ||||||||||||||
Other | Other | — | — | 1.4 | (1.4) | 0.8 | ||||||||||||||
Total | $ | 2,003.8 | $ | 1,257.2 | $ | 383.0 | $ | 363.6 | $ | 276.0 |
PAN AMERICAN SILVER CORP. |
24 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 nine months ended September 30, 2023 |
||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties (Note 2) |
Depreciation (Note 2) | Mine operating earnings (losses) (Note 2) |
Capital expenditures(1) |
||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 102.4 | $ | 94.1 | $ | 16.3 | $ | (8.0) | $ | 48.6 | |||||||||
Peru | Huaron | 112.5 | 79.3 | 9.8 | 23.4 | 18.9 | ||||||||||||||
Morococha(2) |
— | — | — | — | 2.1 | |||||||||||||||
Bolivia | San Vicente | 67.0 | 51.1 | 7.0 | 8.9 | 2.8 | ||||||||||||||
Argentina | Manantial Espejo(2) |
37.7 | 32.4 | 2.0 | 3.3 | 0.2 | ||||||||||||||
Cerro Moro | 139.2 | 91.0 | 15.5 | 32.7 | 14.4 | |||||||||||||||
Guatemala | Escobal | — | — | — | — | 1.4 | ||||||||||||||
Total Silver Segment | 458.8 | 347.9 | 50.6 | 60.3 | 88.4 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 196.3 | 84.4 | 86.5 | 25.4 | 8.0 | ||||||||||||||
Peru | Shahuindo | 209.0 | 105.2 | 33.3 | 70.5 | 42.2 | ||||||||||||||
La Arena | 135.1 | 87.3 | 22.5 | 25.3 | 9.0 | |||||||||||||||
Canada | Timmins | 188.1 | 147.1 | 29.9 | 11.1 | 33.7 | ||||||||||||||
Brazil | Jacobina | 178.5 | 87.8 | 56.8 | 33.9 | 43.8 | ||||||||||||||
Chile | El Peñon | 176.3 | 127.7 | 34.1 | 14.5 | 8.4 | ||||||||||||||
Minera Florida | 104.2 | 86.1 | 21.8 | (3.7) | 11.3 | |||||||||||||||
Total Gold Segment | 1,187.5 | 725.6 | 284.9 | 177.0 | 156.4 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Corporate | 0.2 | — | 4.1 | (3.9) | 2.3 | ||||||||||||||
Argentina | MARA(2) |
— | — | 0.1 | (0.1) | 35.9 | ||||||||||||||
Other | Other | — | — | 1.4 | (1.4) | 2.1 | ||||||||||||||
Total | $ | 1,646.5 | $ | 1,073.5 | $ | 341.1 | $ | 231.9 | $ | 285.1 |
PAN AMERICAN SILVER CORP. |
25 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 September 30, 2024 | ||||||||||||||||||||
Segment/Country | Operation | Assets | Liabilities | Net assets | ||||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 454.4 | $ | 88.5 | $ | 365.9 | |||||||||||||
Peru | Huaron | 213.5 | 79.8 | 133.7 | ||||||||||||||||
Bolivia | San Vicente | 104.3 | 50.7 | 53.6 | ||||||||||||||||
Argentina | Manantial Espejo(1) |
2.9 | 18.8 | (15.9) | ||||||||||||||||
Cerro Moro | 223.2 | 106.4 | 116.8 | |||||||||||||||||
Guatemala | Escobal | 289.7 | 15.3 | 274.4 | ||||||||||||||||
Total Silver Segment | 1,288.0 | 359.5 | 928.5 | |||||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 237.8 | 111.9 | 125.9 | ||||||||||||||||
Peru | Shahuindo | 623.5 | 192.2 | 431.3 | ||||||||||||||||
La Arena | 397.8 | 162.5 | 235.3 | |||||||||||||||||
Canada | Timmins | 418.6 | 80.3 | 338.3 | ||||||||||||||||
Brazil | Jacobina | 2,441.3 | 417.2 | 2,024.1 | ||||||||||||||||
Chile | El Peñon | 761.3 | 204.0 | 557.3 | ||||||||||||||||
Minera Florida | 210.4 | 103.9 | 106.5 | |||||||||||||||||
Total Gold Segment | 5,090.7 | 1,272.0 | 3,818.7 | |||||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Corporate | 424.6 | 788.8 | (364.2) | ||||||||||||||||
Argentina | Navidad | 192.2 | 12.2 | 180.0 | ||||||||||||||||
Other | Other | 156.5 | 74.6 | 81.9 | ||||||||||||||||
Total | $ | 7,152.0 | $ | 2,507.1 | $ | 4,644.9 |
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) | ||||||||||
Cerro Moro | 208.2 | 104.0 | 104.2 | |||||||||||
Guatemala | Escobal | 290.0 | 16.4 | 273.6 | ||||||||||
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 | Corporate | 438.4 | 750.2 | (311.8) | ||||||||||
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. |
26 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
|||||||||||||
Product Revenue | 2024 | 2023 | 2024 | 2023 | ||||||||||
Refined silver and gold | $ | 598.7 | $ | 532.8 | $ | 1,689.4 | $ | 1,364.3 | ||||||
Zinc concentrate(1) |
26.4 | 12.3 | 72.5 | 61.9 | ||||||||||
Lead concentrate(1) |
56.6 | 43.6 | 132.5 | 132.6 | ||||||||||
Copper concentrate(1) |
18.5 | 13.8 | 54.3 | 43.7 | ||||||||||
Silver concentrate(1) |
15.9 | 13.8 | 55.1 | 44.0 | ||||||||||
Total | $ | 716.1 | $ | 616.3 | $ | 2,003.8 | $ | 1,646.5 |
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 (Note 2) |
2024 | 2023 (Note 2) |
|||||||||||
Current income tax expense | $ | 84.3 | $ | 34.7 | $ | 212.6 | $ | 103.0 | ||||||
Deferred income tax recovery | (11.0) | (5.8) | (11.8) | (76.7) | ||||||||||
Income tax (recovery) expense | $ | 73.3 | $ | 28.9 | $ | 200.8 | $ | 26.3 |
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Income tax recovery related to long-term investments | — | — | $ | — | $ | 0.4 |
PAN AMERICAN SILVER CORP. |
27 |
![]() |
Notes to the Condensed Interim Consolidated Financial Statements |
||||
As at September 30, 2024 and December 31, 2023, and for the three and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 (Note 2) |
2024 | 2023 (Note 2) |
|||||||||||
Income (loss) before taxes and non-controlling interest | $ | 130.4 | $ | 8.3 | $ | 205.7 | $ | (10.8) | ||||||
Statutory Canadian income tax rate | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | ||||||
Income tax expense (recovery) based on above rates | $ | 35.2 | $ | 2.2 | $ | 55.5 | $ | (2.9) | ||||||
Increase (decrease) due to: | ||||||||||||||
Non-deductible expenditures | 1.1 | (0.9) | 1.9 | 0.3 | ||||||||||
Foreign tax rate differences | (2.7) | 1.6 | (7.7) | 3.0 | ||||||||||
Change in net deferred tax assets not recognized(1) |
5.6 | 8.7 | 36.4 | 37.8 | ||||||||||
Effect of other taxes paid (mining and withholding) | 11.4 | 6.9 | 26.9 | 18.0 | ||||||||||
Effect of foreign exchange on tax expense | 0.6 | 16.4 | 45.3 | (28.8) | ||||||||||
Non-taxable impact of foreign exchange | 0.9 | 1.5 | (2.2) | 2.5 | ||||||||||
Changes to opening temporary differences | 5.6 | (1.2) | 6.8 | 3.3 | ||||||||||
Impact of inflation |
(27.1) | (2.5) | (4.1) | (4.6) | ||||||||||
Current tax expense estimated for prior years | 40.5 | — | 40.5 | — | ||||||||||
Other | 2.2 | (3.8) | 1.5 | (2.3) | ||||||||||
Income tax expense | $ | 73.3 | $ | 28.9 | $ | 200.8 | $ | 26.3 | ||||||
PAN AMERICAN SILVER CORP. |
28 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
|||||||||||||||||||
2024 | 2023 | Variance | 2024 | 2023 | Variance | |||||||||||||||
Production | ||||||||||||||||||||
Silver – koz | 5,467 | 5,687 | (220) | 15,044 | 15,602 | (558) | ||||||||||||||
Gold – koz | 225.0 | 244.2 | (19.2) | 668.3 | 615.1 | 53.2 | ||||||||||||||
Zinc – kt | 11.2 | 9.5 | 1.7 | 31.0 | 29.4 | 1.7 | ||||||||||||||
Lead – kt | 5.2 | 4.9 | 0.4 | 14.8 | 14.6 | 0.2 | ||||||||||||||
Copper – kt | 1.3 | 1.2 | 0.1 | 4.2 | 3.6 | 0.6 | ||||||||||||||
Cash Costs - $ per ounce sold(2) |
||||||||||||||||||||
Silver Segment | 15.88 | 13.13 | 2.75 | 14.39 | 11.55 | 2.84 | ||||||||||||||
Gold Segment | 1,195 | 1,187 | 9 | 1,196 | 1,116 | 81 | ||||||||||||||
AISC - $ per ounce sold(2) |
||||||||||||||||||||
Silver Segment | 19.63 | 18.19 | 1.44 | 18.25 | 16.05 | 2.20 | ||||||||||||||
Gold Segment | 1,496 | 1,451 | 45 | 1,553 | 1,350 | 203 |
PAN AMERICAN SILVER CORP. | 5 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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 and nine months ended September 30, 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. | 9 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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. | 10 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 and nine months ended September 30, 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 |
Nine Months | ||||||||||
Net loss, period ended September 30, 2023 | $ | (20.6) | $ | (37.1) | Note | ||||||
Revenue: | |||||||||||
Increased metal prices | $ | 155.9 | $ | 290.6 | |||||||
(Lower) higher quantities of metal sold | (66.5) | 27.8 | |||||||||
Decreased direct selling costs | 11.1 | 28.7 | |||||||||
(Increased) decreased negative settlement adjustments | (0.7) | 10.2 | |||||||||
Total increase in revenue | 99.8 | $ | 357.3 | (1) | |||||||
Cost of sales: | |||||||||||
Increased production costs | $ | (1.3) | $ | (115.2) | |||||||
Decreased (increased) production costs due to NRV adjustments | 0.3 | (64.5) | |||||||||
Decreased (increased) royalty charges | 3.1 | (4.0) | |||||||||
Decreased (increased) production costs and royalty charges | $ | 2.1 | $ | (183.7) | (2) | ||||||
Decreased (increased) depreciation and amortization | 7.1 | (41.9) | (3) | ||||||||
Decreased (increased) cost of sales | 9.2 | (225.6) | |||||||||
Increased mine operating earnings | 109.0 | 131.7 | |||||||||
Decreased impairment charges | — | 42.4 | (4) | ||||||||
Decreased care and maintenance costs | 16.8 | 48.2 | (5) | ||||||||
Increased (decreased) gains on derivatives | 9.5 | (7.3) | (6) | ||||||||
Decreased investment loss | 7.2 | 0.4 | (7) | ||||||||
Decreased interest and finance expense | 7.1 | 4.9 | (8) | ||||||||
Decreased transaction and integration costs | 0.6 | 25.0 | (9) | ||||||||
Increased income tax expense | (44.4) | (174.5) | (10) | ||||||||
(Decreased) increased foreign exchange gains | (13.0) | 2.5 | (11) | ||||||||
Decreased gains on sale of mineral properties, plant and equipment | (13.0) | (12.2) | (12) | ||||||||
Increased general and administrative expense | (2.4) | (20.6) | (13) | ||||||||
Other | 0.3 | 1.5 | |||||||||
Net earnings, period ended September 30, 2024 | $ | 57.1 | $ | 4.9 |
PAN AMERICAN SILVER CORP. | 12 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
Three months ended September 30, |
Nine months ended September 30, |
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2024 | 2023 | 2024 | 2023 | 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||
Silver |
$ | 29.52 | $ | 23.11 | $ | 26.93 | $ | 23.13 | 4,846 | 5,827 | 13,874 | 15,992 | ||||||||||||||
Gold |
$ | 2,475 | $ | 1,927 | $ | 2,293 | $ | 1,939 | 217.9 | 243.6 | 665.2 | 623.5 | ||||||||||||||
Zinc |
$ | 2,897 | $ | 2,336 | $ | 2,742 | $ | 2,714 | 8.9 | 6.3 | 25.6 | 27.1 | ||||||||||||||
Lead |
$ | 2,062 | $ | 2,170 | $ | 2,099 | $ | 2,153 | 4.7 | 4.6 | 12.6 | 13.9 | ||||||||||||||
Copper |
$ | 9,273 | $ | 8,343 | $ | 9,334 | $ | 8,577 | 1.0 | 1.1 | 3.4 | 3.1 |
PAN AMERICAN SILVER CORP. | 13 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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. | 14 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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. | 15 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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. | 16 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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 November 5, 2024 | |||||
Common shares | 363,005 | ||||
Options | 432 | ||||
Total | 363,437 |
PAN AMERICAN SILVER CORP. | 17 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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 | Jun 30 | Sep 30 | ||||||||
Revenue | $ | 601.4 | $ | 686.3 | $ | 716.1 | |||||
Mine operating earnings | $ | 71.0 | $ | 116.9 | $ | 175.7 | |||||
(Loss) earnings for the period attributable to equity holders | $ | (30.9) | $ | (21.9) | $ | 56.7 | |||||
Basic (loss) earnings per share | $ | (0.08) | $ | (0.06) | $ | 0.16 | |||||
Diluted (loss) earnings per share | $ | (0.08) | $ | (0.06) | $ | 0.16 | |||||
Cash flow from operating activities | $ | 61.1 | $ | 162.7 | $ | 226.2 | |||||
Cash dividends paid per share | $ | 0.10 | $ | 0.10 | $ | 0.10 | |||||
Other financial information | |||||||||||
Total assets | $ | 7,080.0 | $ | 7,043.9 | $ | 7,152.0 | |||||
Total long-term financial liabilities(1) |
$ | 1,255.2 | $ | 1,241.3 | $ | 1,269.7 | |||||
Total attributable shareholders’ equity | $ | 4,669.0 | $ | 4,610.9 | $ | 4,632.0 |
2023 | Quarter Ended | Year Ended |
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(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 | |||||||
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) | $ | (0.25) | |||||||
Diluted earnings (loss) 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 |
PAN AMERICAN SILVER CORP. | 18 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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) |
2022 | Quarter Ended | Year Ended |
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(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) 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. | 19 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
La Colorada | Cerro Moro | Huaron | San Vicente(1) |
Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida | Dolores | Total | |||||||||||||||||||||||||||
Ore tonnes mined – kt | 161 | 104 | 239 | 93 | 800 | 212 | 389 | 3,931 | 2,680 | 238 | 37 | 8,883 | ||||||||||||||||||||||||||
Waste tonnes mined – kt | — | 589 | — | — | — | — | — | 4,815 | 4,797 | — | 17 | 10,219 | ||||||||||||||||||||||||||
Tonnes processed – kt | 161 | 105 | 238 | 96 | 790 | 321 | 396 | 3,843 | 2,513 | 256 | 1,774 | 10,492 | ||||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||||||||
Silver – g/t | 277.4 | 252.8 | 141.9 | 287.2 | — | 113.7 | — | 7.6 | 0.6 | 17.9 | 16.5 | |||||||||||||||||||||||||||
Gold – g/t | — | 5.29 | — | — | 2.06 | 2.78 | 2.69 | 0.47 | 0.39 | 2.49 | 0.26 | |||||||||||||||||||||||||||
Zinc – % | 2.35 | — | 2.20 | 3.33 | — | — | — | — | — | 0.75 | — | |||||||||||||||||||||||||||
Lead – % | 1.48 | — | 1.52 | 0.26 | — | — | — | — | — | 0.06 | — | |||||||||||||||||||||||||||
Copper – % | — | — | 0.58 | 0.22 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||||||||
Silver – koz | 1,329 | 804 | 888 | 811 | 1 | 995 | 2 | 69 | 12 | 115 | 442 | 5,467 | ||||||||||||||||||||||||||
Gold – koz | 0.9 | 17.0 | — | — | 50.4 | 26.8 | 33.9 | 35.9 | 22.7 | 19.1 | 18.4 | 225.0 | ||||||||||||||||||||||||||
Zinc – kt | 3.1 | — | 4.0 | 2.8 | — | — | — | — | — | 1.4 | — | 11.2 | ||||||||||||||||||||||||||
Lead – kt | 2.1 | — | 2.7 | 0.2 | — | — | — | — | — | 0.3 | — | 5.2 | ||||||||||||||||||||||||||
Copper – kt | 0.1 | — | 1.1 | 0.2 | — | — | — | — | — | — | — | 1.3 |
Three months ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
La Colorada | Cerro Moro | Huaron | San Vicente(1) |
Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida | Dolores | Total | |||||||||||||||||||||||||||
Ore tonnes mined – kt | 120 | 100 | 233 | 90 | 725 | 250 | 355 | 3,425 | 3,449 | 216 | 1,255 | 10,219 | ||||||||||||||||||||||||||
Waste tonnes mined – kt | — | 645 | — | — | — | — | — | 5,596 | 4,203 | — | 2,719 | 13,163 | ||||||||||||||||||||||||||
Tonnes processed – kt | 119 | 105 | 232 | 93 | 757 | 353 | 360 | 3,437 | 3,577 | 236 | 1,926 | 11,196 | ||||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||||||||
Silver – g/t | 285.8 | 406.1 | 144.1 | 285.7 | — | 98.0 | — | 6.9 | 0.8 | 17.2 | 17.5 | |||||||||||||||||||||||||||
Gold – g/t | — | 8.43 | — | — | 2.09 | 2.70 | 2.86 | 0.44 | 0.28 | 3.40 | 0.57 | |||||||||||||||||||||||||||
Zinc – % | 1.69 | — | 2.38 | 3.21 | — | — | — | — | — | 0.43 | — | |||||||||||||||||||||||||||
Lead – % | 0.94 | — | 1.77 | 0.34 | — | — | — | — | — | 0.10 | — | |||||||||||||||||||||||||||
Copper – % | — | — | 0.60 | 0.22 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||||||||
Silver – koz | 1,009 | 1,265 | 896 | 779 | — | 1,011 | 4 | 68 | 11 | 89 | 555 | 5,687 | ||||||||||||||||||||||||||
Gold – koz | 0.6 | 27.0 | 0.3 | — | 48.3 | 29.1 | 32.3 | 32.4 | 23.1 | 24.2 | 27.0 | 244.2 | ||||||||||||||||||||||||||
Zinc – kt | 1.7 | — | 4.4 | 2.5 | — | — | — | — | — | 0.9 | — | 9.5 | ||||||||||||||||||||||||||
Lead – kt | 1.0 | — | 3.3 | 0.3 | — | — | — | — | — | 0.3 | — | 4.9 | ||||||||||||||||||||||||||
Copper – kt | — | — | 1.1 | 0.2 | — | — | — | — | — | — | 1.2 |
PAN AMERICAN SILVER CORP. | 20 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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) |
Nine months ended September 30, 2024 | ||||||||||||||||||||||||||||||||||||||
La Colorada | Cerro Moro | Huaron | San Vicente(1) |
Jacobina | El Peñon |
Timmins | Shahuindo | La Arena | Minera Florida | Dolores | Total | |||||||||||||||||||||||||||
Ore tonnes mined – kt | 414 | 280 | 698 | 280 | 2,295 | 616 | 1,169 | 10,378 | 7,787 | 671 | 2,726 | 27,314 | ||||||||||||||||||||||||||
Waste tonnes mined – kt | — | 1,843 | — | — | — | — | — | 13,167 | 13,977 | — | 6,378 | 35,365 | ||||||||||||||||||||||||||
Tonnes processed – kt | 414 | 306 | 692 | 281 | 2,320 | 997 | 1,239 | 9,611 | 7,621 | 731 | 5,405 | 29,616 | ||||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||||||||
Silver – g/t | 267.4 | 232.4 | 141.9 | 290.4 | — | 97.7 | — | 6.6 | 0.6 | 22.4 | 15.7 | |||||||||||||||||||||||||||
Gold – g/t | — | 5.90 | — | — | 2.02 | 3.11 | 2.47 | 0.50 | 0.34 | 2.70 | 0.38 | |||||||||||||||||||||||||||
Zinc – % | 2.21 | — | 2.35 | 2.74 | — | — | — | — | — | 0.81 | — | |||||||||||||||||||||||||||
Lead – % | 1.36 | — | 1.60 | 0.31 | — | — | — | — | — | 0.22 | — | |||||||||||||||||||||||||||
Copper – % | — | — | 0.65 | 0.20 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||||||||
Silver – koz | 3,271 | 2,140 | 2,599 | 2,374 | 3 | 2,695 | 8 | 206 | 29 | 406 | 1,311 | 15,044 | ||||||||||||||||||||||||||
Gold – koz | 1.9 | 55.0 | 0.1 | — | 144.3 | 94.4 | 95.8 | 100.5 | 62.5 | 59.5 | 54.4 | 668.3 | ||||||||||||||||||||||||||
Zinc – kt | 7.4 | — | 12.5 | 6.6 | — | — | — | — | — | 4.5 | — | 31.0 | ||||||||||||||||||||||||||
Lead – kt | 4.8 | — | 8.1 | 0.7 | — | — | — | — | — | 1.2 | — | 14.8 | ||||||||||||||||||||||||||
Copper – kt | 0.1 | — | 3.6 | 0.4 | — | — | — | — | — | — | — | 4.2 |
Nine months ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
La Colorada | Cerro Moro(2) |
Huaron | San Vicente(1) |
Manantial Espejo | Jacobina(2) |
El Peñon(2) |
Timmins | Shahuindo | La Arena | Minera Florida(2) |
Dolores | Total | |||||||||||||||||||||||||||||
Ore tonnes mined – kt | 436 | 206 | 708 | 275 | — | 1,506 | 509 | 1,115 | 9,382 | 9,081 | 458 | 6,673 | 30,348 | ||||||||||||||||||||||||||||
Waste tonnes mined – kt | — | 1,177 | — | — | — | — | — | — | 13,582 | 13,926 | — | 9,368 | 38,053 | ||||||||||||||||||||||||||||
Tonnes processed – kt | 443 | 208 | 707 | 278 | 10 | 1,541 | 686 | 1,141 | 9,371 | 9,080 | 500 | 5,633 | 29,598 | ||||||||||||||||||||||||||||
Grade | |||||||||||||||||||||||||||||||||||||||||
Silver – g/t | 273.3 | 429.4 | 142.8 | 274.1 | 205.1 | 103.7 | — | 7.1 | 0.8 | 18.7 | 19.2 | ||||||||||||||||||||||||||||||
Gold – g/t | — | 8.63 | — | — | 2.13 | 2.02 | 2.96 | 2.69 | 0.47 | 0.29 | 3.14 | 0.59 | |||||||||||||||||||||||||||||
Zinc – % | 1.67 | — | 2.49 | 3.20 | — | — | — | — | — | — | 0.66 | — | |||||||||||||||||||||||||||||
Lead – % | 0.93 | — | 1.66 | 0.33 | — | — | — | — | — | — | 0.12 | — | |||||||||||||||||||||||||||||
Copper – % | — | — | 0.59 | 0.21 | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Production | |||||||||||||||||||||||||||||||||||||||||
Silver – koz | 3,586 | 2,661 | 2,703 | 2,240 | 191 | — | 2,053 | 12 | 207 | 30 | 203 | 1,718 | 15,602 | ||||||||||||||||||||||||||||
Gold – koz | 1.9 | 54.4 | 0.8 | 0.1 | 1.7 | 96.6 | 61.8 | 97.7 | 105.2 | 65.4 | 47.7 | 81.7 | 615.1 | ||||||||||||||||||||||||||||
Zinc – kt | 6.2 | — | 13.8 | 7.4 | — | — | — | — | — | — | 1.9 | — | 29.4 | ||||||||||||||||||||||||||||
Lead – kt | 3.6 | — | 9.7 | 0.8 | — | — | — | — | — | — | 0.6 | — | 14.6 | ||||||||||||||||||||||||||||
Copper – kt | 0.1 | — | 3.1 | 0.4 | — | — | — | — | — | — | — | 3.6 |
PAN AMERICAN SILVER CORP. | 21 |
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Management Discussion and Analysis |
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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. | 22 |
![]() |
Management Discussion and Analysis |
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For the three and nine months ended September 30, 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 | |||||||||||||
Three months ended September 30, 2024 | Three months ended September 30, 2023 | Three months ended September 30, 2024 | Three months ended September 30, 2023 | |||||||||||
Production costs | $ | 118.4 | $ | 122.8 | $ | 282.5 | $ | 279.6 | ||||||
Restructuring and end-of-life severance accruals and payments(1) |
— | — | (4.1) | (0.8) | ||||||||||
NRV inventory adjustments | 4.2 | 0.3 | 4.1 | 7.6 | ||||||||||
On-site direct operating costs | 122.6 | 123.1 | 282.5 | 286.4 | ||||||||||
Royalties | 3.1 | 6.1 | 6.2 | 6.2 | ||||||||||
Smelting, refining and direct selling charges(3) |
7.7 | 18.5 | 1.7 | 2.0 | ||||||||||
Cash cost of sales before by-product credits |
133.4 | 147.8 | 290.4 | 294.6 | ||||||||||
Silver segment by-product credits(3) |
(81.1) | (94.8) | — | — | ||||||||||
Gold segment by-product credits(3) |
— | — | (48.4) | (44.2) | ||||||||||
Cash Costs |
$ | 52.3 | $ | 53.0 | $ | 242.0 | $ | 250.4 | ||||||
NRV inventory adjustments | (4.2) | (0.3) | (4.1) | (7.6) | ||||||||||
Sustaining capital |
15.7 | 19.8 | 59.0 | 56.9 | ||||||||||
Exploration and project development(4) |
— | — | — | — | ||||||||||
Reclamation cost accretion(5) |
0.9 | 1.0 | 5.8 | 6.3 | ||||||||||
All-in sustaining costs |
$ | 64.7 | $ | 73.4 | $ | 302.7 | $ | 306.1 | ||||||
Silver segment silver ounces sold (Moz) | 3.3 | 4.0 | — | — | ||||||||||
Gold segment gold ounces sold (koz) | — | — | 202.4 | 211.0 | ||||||||||
Cash costs per ounce sold |
$ | 15.88 | $ | 13.13 | $ | 1,195 | $ | 1,187 | ||||||
AISC per ounce sold | $ | 19.63 | $ | 18.19 | $ | 1,496 | $ | 1,451 | ||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 20.90 | $ | 18.27 | $ | 1,516 | $ | 1,487 |
PAN AMERICAN SILVER CORP. | 23 |
![]() |
Management Discussion and Analysis |
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For the three and nine months ended September 30, 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 | |||||||||||||
Nine months ended September 30, 2024 | Nine months ended September 30, 2023 | Nine months ended September 30, 2024 | Nine months ended September 30, 2023 | |||||||||||
Production costs | $ | 332.0 | $ | 331.4 | $ | 885.6 | $ | 706.9 | ||||||
Restructuring and end-of-life severance accruals and payments(1) |
— | (9.8) | (6.5) | (3.7) | ||||||||||
Purchase price allocation inventory fair value adjustment(2) |
— | (6.2) | — | (26.0) | ||||||||||
NRV inventory adjustments | 3.5 | (2.9) | (36.3) | 34.5 | ||||||||||
On-site direct operating costs | 335.5 | 312.4 | 842.8 | 711.8 | ||||||||||
Royalties | 22.1 | 19.2 | 17.5 | 16.4 | ||||||||||
Smelting, refining and direct selling charges(3) |
21.8 | 51.2 | 3.6 | 2.8 | ||||||||||
Cash cost of sales before by-product credits |
379.3 | 382.7 | 863.9 | 731.0 | ||||||||||
Silver segment by-product credits(3) |
(243.9) | (247.3) | — | — | ||||||||||
Gold segment by-product credits(3) |
— | — | (134.3) | (105.4) | ||||||||||
Cash Costs |
$ | 135.5 | $ | 135.4 | $ | 729.6 | $ | 625.6 | ||||||
NRV inventory adjustments | (3.5) | 2.9 | 36.3 | (34.5) | ||||||||||
Sustaining capital |
37.2 | 47.1 | 163.9 | 148.7 | ||||||||||
Exploration and project development(4) |
— | — | — | — | ||||||||||
Reclamation cost accretion(5) |
2.6 | 2.6 | 17.4 | 17.4 | ||||||||||
All-in sustaining costs |
$ | 171.7 | $ | 188.1 | $ | 947.2 | $ | 757.1 | ||||||
Silver segment silver ounces sold (Moz) | 9.4 | 11.7 | — | — | ||||||||||
Gold segment gold ounces sold (koz) | — | — | 609.9 | 560.8 | ||||||||||
Cash costs per ounce sold |
$ | 14.39 | $ | 11.55 | $ | 1,196 | $ | 1,116 | ||||||
AISC per ounce sold | $ | 18.25 | $ | 16.05 | $ | 1,553 | $ | 1,350 | ||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 18.62 | $ | 15.79 | $ | 1,494 | $ | 1,412 |
PAN AMERICAN SILVER CORP. | 24 |
![]() |
Management Discussion and Analysis |
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For the three and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
||||||||||||
(in millions of USD) | 2024 | 2023 | 2024 | 2023 | ||||||||||
Payments for mineral properties, plant and equipment(1) |
$ | 75.1 | $ | 108.6 | $ | 237.9 | $ | 260.2 | ||||||
Add/(Subtract) | ||||||||||||||
Lease Payments(1) |
12.2 | 12.5 | 38.1 | 24.9 | ||||||||||
Repayment of loans(2) |
1.7 | 4.3 | 5.0 | 10.2 | ||||||||||
La Colorada investment (non-sustaining) capital | (3.6) | (14.0) | (22.9) | (34.2) | ||||||||||
Jacobina investment (non-sustaining) capital | (2.5) | (8.1) | (9.9) | (13.6) | ||||||||||
Huaron investment (non-sustaining) capital | (4.8) | (1.5) | (33.0) | (3.7) | ||||||||||
Timmins investment (non-sustaining) capital | (2.5) | (2.9) | (7.3) | (3.7) | ||||||||||
MARA investment (non-sustaining) capital | — | (17.3) | — | (35.9) | ||||||||||
Other investment (non-sustaining) capital | (0.9) | (4.9) | (6.9) | (8.4) | ||||||||||
Sustaining Capital |
$ | 74.7 | $ | 76.7 | $ | 201.0 | $ | 195.8 |
PAN AMERICAN SILVER CORP. | 25 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 September 30, 2024 | ||||||||||||||||
La Colorada | Cerro Moro | Huaron | San Vicente |
Consolidated Silver Segment |
|||||||||||||
Production Costs | $ | 28.7 | $ | 53.7 | $ | 26.7 | $ | 9.4 | $ | 118.4 | |||||||
NRV inventory adjustments | 4.2 | — | — | — | 4.2 | ||||||||||||
On-site direct operating costs | 32.8 | 53.7 | 26.7 | 9.4 | 122.6 | ||||||||||||
Royalties | 1.9 | (3.3) | — | 4.5 | 3.1 | ||||||||||||
Smelting, refining & direct selling costs | 2.1 | 1.6 | 3.1 | 0.9 | 7.7 | ||||||||||||
Cash Costs before by-product credits |
36.8 | 52.0 | 29.8 | 14.8 | 133.4 | ||||||||||||
Silver segment by-product credits | (12.8) | (38.3) | (22.5) | (7.5) | (81.1) | ||||||||||||
Cash Costs | $ | 24.0 | $ | 13.7 | $ | 7.3 | $ | 7.3 | $ | 52.3 | |||||||
NRV inventory adjustments | (4.2) | — | — | — | (4.2) | ||||||||||||
Sustaining capital | 7.3 | 1.1 | 5.6 | 1.7 | 15.7 | ||||||||||||
Exploration and project development | — | — | — | — | — | ||||||||||||
Reclamation cost accretion | 0.1 | 0.4 | 0.2 | 0.1 | 0.9 | ||||||||||||
All-in sustaining costs |
$ | 27.3 | $ | 15.2 | $ | 13.1 | $ | 9.1 | $ | 64.7 | |||||||
Silver segment silver ounces sold (Moz) | 1.22 | 0.73 | 0.78 | 0.56 | 3.29 | ||||||||||||
Cash cost per ounce sold | $ | 19.59 | $ | 18.84 | $ | 9.32 | $ | 13.06 | $ | 15.88 | |||||||
AISC per ounce sold | $ | 22.25 | $ | 20.88 | $ | 16.77 | $ | 16.28 | $ | 19.63 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 25.65 | $ | 20.88 | $ | 16.77 | $ | 16.28 | $ | 20.90 |
SILVER SEGMENT | Three months ended September 30, 2023 | |||||||||||||||||||
La Colorada | Cerro Moro | Huaron | San Vicente |
Manantial Espejo |
Consolidated Silver Segment |
|||||||||||||||
Production Costs | $ | 31.7 | $ | 52.0 | $ | 26.2 | $ | 9.1 | $ | 3.8 | $ | 122.8 | ||||||||
NRV inventory adjustments | 0.3 | — | — | — | — | 0.3 | ||||||||||||||
On-site direct operating costs | 32.0 | 52.0 | 26.2 | 9.1 | 3.8 | 123.1 | ||||||||||||||
Royalties | 0.2 | 2.5 | — | 3.5 | — | 6.1 | ||||||||||||||
Smelting, refining & direct selling costs | 2.0 | 9.0 | 6.3 | 1.1 | — | 18.5 | ||||||||||||||
Cash Costs before by-product credits |
34.2 | 63.5 | 32.6 | 13.7 | 3.8 | 147.8 | ||||||||||||||
Silver segment by-product credits | (6.8) | (59.7) | (23.1) | (2.9) | (2.4) | (94.8) | ||||||||||||||
Cash Costs | $ | 27.4 | $ | 3.9 | $ | 9.5 | $ | 10.8 | $ | 1.4 | $ | 53.0 | ||||||||
NRV inventory adjustments | (0.3) | — | — | — | — | (0.3) | ||||||||||||||
Sustaining capital | 6.7 | 5.5 | 6.4 | 1.1 | — | 19.8 | ||||||||||||||
Exploration and project development | — | — | — | — | — | — | ||||||||||||||
Reclamation cost accretion | 0.2 | 0.3 | 0.3 | 0.1 | 0.2 | 1.0 | ||||||||||||||
All-in sustaining costs |
$ | 34.0 | $ | 9.6 | $ | 16.2 | $ | 12.0 | $ | 1.6 | $ | 73.4 | ||||||||
Silver segment silver ounces sold (Moz) | 1.12 | 1.39 | 0.80 | 0.56 | 0.16 | 4.03 | ||||||||||||||
Cash cost per ounce sold |
$ | 24.46 | $ | 2.77 | $ | 11.94 | $ | 19.19 | $ | 8.58 | $ | 13.13 | ||||||||
AISC per ounce sold | $ | 30.30 | $ | 6.91 | $ | 20.37 | $ | 21.37 | $ | 9.64 | $ | 18.19 | ||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 30.61 | $ | 6.91 | $ | 20.37 | $ | 21.37 | $ | 9.64 | $ | 18.27 |
PAN AMERICAN SILVER CORP. | 26 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 | Nine months ended September 30, 2024 | ||||||||||||||||
La Colorada | Cerro Moro | Huaron | San Vicente | Consolidated Silver Segment | |||||||||||||
Production Costs | $ | 80.1 | $ | 139.9 | $ | 77.8 | $ | 34.2 | $ | 332.0 | |||||||
NRV inventory adjustments | 3.5 | — | — | — | 3.5 | ||||||||||||
On-site direct operating costs | 83.6 | 139.9 | 77.8 | 34.2 | 335.5 | ||||||||||||
Royalties | 2.1 | 4.6 | — | 15.4 | 22.1 | ||||||||||||
Smelting, refining & direct selling costs | 5.1 | 2.6 | 11.0 | 3.0 | 21.8 | ||||||||||||
Cash Costs before by-product credits | 90.8 | 147.1 | 88.8 | 52.6 | 379.3 | ||||||||||||
Silver segment by-product credits | (25.9) | (124.0) | (72.1) | (21.9) | (243.9) | ||||||||||||
Cash Costs | $ | 64.9 | $ | 23.1 | $ | 16.8 | $ | 30.7 | $ | 135.5 | |||||||
NRV inventory adjustments | (3.5) | — | — | — | (3.5) | ||||||||||||
Sustaining capital | 12.6 | 8.8 | 11.3 | 4.4 | 37.2 | ||||||||||||
Exploration and project development | — | — | — | — | — | ||||||||||||
Reclamation cost accretion | 0.4 | 1.3 | 0.7 | 0.2 | 2.6 | ||||||||||||
All-in sustaining costs | $ | 74.5 | $ | 33.2 | $ | 28.8 | $ | 35.4 | $ | 171.7 | |||||||
Silver segment silver ounces sold (Moz) | 2.82 | 2.23 | 2.28 | 2.08 | 9.41 | ||||||||||||
Cash cost per ounce sold | $ | 23.01 | $ | 10.35 | $ | 7.37 | $ | 14.75 | $ | 14.39 | |||||||
AISC per ounce sold | $ | 26.42 | $ | 14.84 | $ | 12.64 | $ | 16.98 | $ | 18.25 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 27.65 | $ | 14.84 | $ | 12.64 | $ | 16.98 | $ | 18.62 |
SILVER SEGMENT | Nine months ended September 30, 2023 | |||||||||||||||||||
La Colorada | Cerro Moro | Huaron | San Vicente | Manantial Espejo | Consolidated Silver Segment | |||||||||||||||
Production Costs | $ | 93.7 | $ | 88.2 | $ | 79.3 | $ | 38.1 | $ | 32.1 | $ | 331.4 | ||||||||
Restructuring and end-of-life severance accruals and payments | — | (1.0) | — | — | (8.8) | (9.8) | ||||||||||||||
Purchase Price Allocation Inventory Fair Value Adjustment | — | (6.2) | — | — | — | (6.2) | ||||||||||||||
NRV inventory adjustments | (2.9) | — | — | — | (0.1) | (2.9) | ||||||||||||||
On-site direct operating costs | 90.8 | 80.9 | 79.3 | 38.1 | 23.2 | 312.4 | ||||||||||||||
Royalties | 0.4 | 5.5 | — | 12.9 | 0.3 | 19.2 | ||||||||||||||
Smelting, refining & direct selling costs | 8.0 | 15.0 | 19.6 | 7.1 | 1.6 | 51.2 | ||||||||||||||
Cash Costs before by-product credits | 99.3 | 101.5 | 98.8 | 58.1 | 25.1 | 382.7 | ||||||||||||||
Silver segment by-product credits | (25.9) | (101.7) | (76.5) | (26.4) | (16.9) | (247.3) | ||||||||||||||
Cash Costs | $ | 73.4 | $ | (0.2) | $ | 22.3 | $ | 31.7 | $ | 8.2 | $ | 135.4 | ||||||||
NRV inventory adjustments | 2.9 | — | — | — | 0.1 | 2.9 | ||||||||||||||
Sustaining capital | 14.5 | 14.4 | 15.2 | 2.8 | 0.2 | 47.1 | ||||||||||||||
Exploration and project development | — | — | — | — | — | — | ||||||||||||||
Reclamation cost accretion | 0.5 | 0.5 | 0.8 | 0.2 | 0.5 | 2.6 | ||||||||||||||
All-in sustaining costs | $ | 91.2 | $ | 14.8 | $ | 38.3 | $ | 34.7 | $ | 9.0 | $ | 188.1 | ||||||||
Silver segment silver ounces sold (Moz) | 3.72 | 2.55 | 2.44 | 2.05 | 0.96 | 11.72 | ||||||||||||||
Cash cost per ounce sold | $ | 19.72 | $ | (0.08) | $ | 9.12 | $ | 15.51 | $ | 8.56 | $ | 11.55 | ||||||||
AISC per ounce sold | $ | 24.50 | $ | 5.80 | $ | 15.68 | $ | 16.99 | $ | 9.39 | $ | 16.05 | ||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 23.73 | $ | 5.80 | $ | 15.68 | $ | 16.99 | $ | 9.30 | $ | 15.79 |
PAN AMERICAN SILVER CORP. | 27 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 September 30, 2024 | |||||||||||||||||||||||||
Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida |
Dolores | Consolidated Gold Segment | |||||||||||||||||||
Production Costs | $ | 45.3 | $ | 57.0 | $ | 47.9 | $ | 34.2 | $ | 31.9 | $ | 34.3 | $ | 31.9 | $ | 282.5 | ||||||||||
Restructuring and end-of-life severance accruals and payments | — | — | — | — | — | — | (4.1) | (4.1) | ||||||||||||||||||
NRV inventory adjustments | — | — | — | — | — | 1.3 | 2.9 | 4.1 | ||||||||||||||||||
On-site direct operating costs | 45.3 | 57.0 | 47.9 | 34.2 | 31.9 | 35.5 | 30.6 | 282.5 | ||||||||||||||||||
Royalties | 1.9 | — | 2.4 | — | — | 0.2 | 1.7 | 6.2 | ||||||||||||||||||
Smelting, refining & direct selling costs | 0.4 | 1.0 | — | — | — | 0.2 | — | 1.7 | ||||||||||||||||||
Cash Costs before by-product credits |
47.6 | 58.0 | 50.3 | 34.2 | 31.9 | 36.0 | 32.4 | 290.4 | ||||||||||||||||||
Gold segment by-product credits | — | (28.8) | — | (1.9) | (0.3) | (5.0) | (12.4) | (48.4) | ||||||||||||||||||
Cash Costs | $ | 47.5 | $ | 29.1 | $ | 50.3 | $ | 32.3 | $ | 31.6 | $ | 31.0 | $ | 20.0 | $ | 242.0 | ||||||||||
NRV inventory adjustments | — | — | — | — | — | (1.3) | (2.9) | (4.1) | ||||||||||||||||||
Sustaining capital | 14.0 | 10.5 | 9.8 | 14.5 | 4.6 | 5.5 | 0.1 | 59.0 | ||||||||||||||||||
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 |
$ | 62.1 | $ | 40.1 | $ | 60.1 | $ | 47.5 | $ | 37.5 | $ | 35.9 | $ | 19.5 | $ | 302.7 | ||||||||||
Gold segment gold ounces sold (koz) | 51.9 | 30.5 | 31.5 | 33.6 | 22.4 | 17.0 | 15.5 | 202.4 | ||||||||||||||||||
Cash cost per ounce sold | $ | 916 | $ | 956 | $ | 1,599 | $ | 960 | $ | 1,412 | $ | 1,824 | $ | 1,296 | $ | 1,195 | ||||||||||
AISC per ounce sold | $ | 1,195 | $ | 1,314 | $ | 1,912 | $ | 1,413 | $ | 1,673 | $ | 2,109 | $ | 1,262 | $ | 1,496 | ||||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,195 | $ | 1,314 | $ | 1,912 | $ | 1,413 | $ | 1,673 | $ | 2,183 | $ | 1,446 | $ | 1,516 | ||||||||||
GOLD SEGMENT | Three months ended September 30, 2023 | |||||||||||||||||||||||||
Jacobina | El Peñon | Timmins |
Shahuindo | La Arena | Minera Florida | Dolores | Consolidated Gold Segment | |||||||||||||||||||
Production Costs | $ | 40.6 | $ | 59.1 | $ | 43.4 | $ | 34.0 | $ | 29.5 | $ | 42.6 | $ | 30.3 | $ | 279.6 | ||||||||||
Restructuring and end-of-life severance accruals and payments | (0.3) | — | — | — | — | — | (0.5) | (0.8) | ||||||||||||||||||
NRV inventory adjustments | — | — | — | — | — | — | 7.6 | 7.6 | ||||||||||||||||||
On-site direct operating costs | 40.3 | 59.1 | 43.4 | 34.0 | 29.5 | 42.6 | 37.4 | 286.4 | ||||||||||||||||||
Royalties | 1.4 | — | 2.0 | — | — | 0.6 | 2.3 | 6.2 | ||||||||||||||||||
Smelting, refining & direct selling costs | 0.6 | 1.5 | — | — | — | (0.2) | — | 2.0 | ||||||||||||||||||
Cash Costs before by-product credits |
42.2 | 60.7 | 45.4 | 34.0 | 29.5 | 43.0 | 39.7 | 294.6 | ||||||||||||||||||
Gold segment by-product credits | — | (24.0) | — | (1.8) | (0.2) | (4.2) | (13.9) | (44.2) | ||||||||||||||||||
Cash Costs | $ | 42.2 | $ | 36.7 | $ | 45.4 | $ | 32.2 | $ | 29.3 | $ | 38.8 | $ | 25.9 | $ | 250.4 | ||||||||||
NRV inventory adjustments | — | — | — | — | — | — | (7.6) | (7.6) | ||||||||||||||||||
Sustaining capital | 15.8 | 2.8 | 13.2 | 16.3 | 4.1 | 2.7 | 2.1 | 56.9 | ||||||||||||||||||
Exploration and project development | — | — | — | — | — | — | — | — | ||||||||||||||||||
Reclamation cost accretion | 0.4 | 0.5 | 0.1 | 0.9 | 1.6 | 0.7 | 2.0 | 6.3 | ||||||||||||||||||
All-in sustaining costs |
$ | 58.3 | $ | 40.0 | $ | 58.7 | $ | 49.4 | $ | 35.1 | $ | 42.2 | $ | 22.4 | $ | 306.1 | ||||||||||
Gold segment gold ounces sold (koz) | 45.6 | 29.1 | 29.0 | 33.2 | 22.7 | 24.3 | 27.1 | 211.0 | ||||||||||||||||||
Cash cost per ounce sold | $ | 925 | $ | 1,259 | $ | 1,565 | $ | 971 | $ | 1,293 | $ | 1,597 | $ | 954 | $ | 1,187 | ||||||||||
AISC per ounce sold | $ | 1,279 | $ | 1,372 | $ | 2,024 | $ | 1,488 | $ | 1,546 | $ | 1,740 | $ | 827 | $ | 1,451 | ||||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,279 | $ | 1,372 | $ | 2,024 | $ | 1,488 | $ | 1,546 | $ | 1,740 | $ | 1,107 | $ | 1,487 |
PAN AMERICAN SILVER CORP. | 28 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 | Nine months ended September 30, 2024 | |||||||||||||||||||||||||
Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida | Dolores | Consolidated Gold Segment | |||||||||||||||||||
Production Costs | $ | 134.0 | $ | 160.1 | $ | 151.2 | $ | 104.4 | $ | 84.8 | $ | 110.4 | $ | 140.7 | $ | 885.6 | ||||||||||
Restructuring and end-of-life severance accruals and payments | — | — | — | — | — | — | (6.5) | (6.5) | ||||||||||||||||||
NRV inventory adjustments | — | — | — | — | — | (0.2) | (36.1) | (36.3) | ||||||||||||||||||
On-site direct operating costs | 134.0 | 160.1 | 151.2 | 104.4 | 84.8 | 110.2 | 98.1 | 842.8 | ||||||||||||||||||
Royalties | 4.9 | — | 6.3 | — | — | 0.9 | 5.4 | 17.5 | ||||||||||||||||||
Smelting, refining & direct selling costs | 0.8 | 2.1 | 0.1 | — | — | 0.5 | — | 3.6 | ||||||||||||||||||
Cash Costs before by-product credits | 139.7 | 162.2 | 157.6 | 104.4 | 84.8 | 111.7 | 103.5 | 863.9 | ||||||||||||||||||
Gold segment by-product credits | (0.1) | (72.3) | (0.1) | (5.8) | (0.8) | (19.6) | (35.6) | (134.3) | ||||||||||||||||||
Cash Costs | $ | 139.6 | $ | 89.9 | $ | 157.5 | $ | 98.6 | $ | 84.0 | $ | 92.1 | $ | 67.9 | $ | 729.6 | ||||||||||
NRV inventory adjustments | — | — | — | — | — | 0.2 | 36.1 | 36.3 | ||||||||||||||||||
Sustaining capital | 39.0 | 28.5 | 29.5 | 37.1 | 13.4 | 16.2 | 0.3 | 163.9 | ||||||||||||||||||
Exploration and project development | — | |||||||||||||||||||||||||
Reclamation cost accretion | 1.6 | 1.2 | 0.3 | 2.1 | 3.8 | 1.8 | 6.7 | 17.4 | ||||||||||||||||||
All-in sustaining costs | $ | 180.2 | $ | 119.6 | $ | 187.3 | $ | 137.8 | $ | 101.2 | $ | 110.2 | $ | 111.0 | $ | 947.2 | ||||||||||
Gold segment gold ounces sold (koz) | 144.9 | 92.4 | 94.8 | 102.2 | 62.6 | 59.8 | 53.1 | 609.9 | ||||||||||||||||||
Cash cost per ounce sold | $ | 963 | $ | 973 | $ | 1,662 | $ | 965 | $ | 1,342 | $ | 1,539 | $ | 1,277 | $ | 1,196 | ||||||||||
AISC per ounce sold | $ | 1,243 | $ | 1,293 | $ | 1,976 | $ | 1,349 | $ | 1,617 | $ | 1,842 | $ | 2,089 | $ | 1,553 | ||||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,243 | $ | 1,293 | $ | 1,976 | $ | 1,349 | $ | 1,617 | $ | 1,839 | $ | 1,409 | $ | 1,494 | ||||||||||
GOLD SEGMENT | Nine months ended September 30, 2023 | |||||||||||||||||||||||||
Jacobina | El Peñon | Timmins |
Shahuindo | La Arena | Minera Florida | Dolores | Consolidated Gold Segment | |||||||||||||||||||
Production Costs | $ | 83.9 | $ | 127.3 | $ | 141.3 | $ | 105.2 | $ | 87.3 | $ | 84.4 | $ | 77.5 | $ | 706.9 | ||||||||||
Restructuring and end-of-life severance accruals and payments | (0.5) | — | — | — | — | — | (3.3) | (3.7) | ||||||||||||||||||
Purchase Price Allocation Inventory Fair Value Adjustment | (12.6) | (12.4) | — | — | — | (1.0) | — | (26.0) | ||||||||||||||||||
NRV inventory adjustments | — | — | — | — | — | — | 34.5 | 34.5 | ||||||||||||||||||
On-site direct operating costs | 70.8 | 114.9 | 141.3 | 105.2 | 87.3 | 83.5 | 108.8 | 711.8 | ||||||||||||||||||
Royalties | 2.7 | 0.1 | 5.8 | — | — | 0.8 | 6.9 | 16.4 | ||||||||||||||||||
Smelting, refining & direct selling costs | 0.6 | 1.5 | 0.1 | — | — | 0.6 | — | 2.8 | ||||||||||||||||||
Cash Costs before by-product credits | 74.1 | 116.6 | 147.2 | 105.2 | 87.3 | 84.9 | 115.7 | 731.0 | ||||||||||||||||||
Gold segment by-product credits | — | (49.9) | (0.1) | (4.4) | (0.8) | (11.2) | (38.9) | (105.4) | ||||||||||||||||||
Cash Costs | $ | 74.1 | $ | 66.7 | $ | 147.1 | $ | 100.8 | $ | 86.5 | $ | 73.6 | $ | 76.8 | $ | 625.6 | ||||||||||
NRV inventory adjustments | — | — | — | — | — | — | (34.5) | (34.5) | ||||||||||||||||||
Sustaining capital | 30.2 | 11.6 | 30.0 | 46.7 | 9.0 | 13.2 | 8.0 | 148.7 | ||||||||||||||||||
Exploration and project development | — | |||||||||||||||||||||||||
Reclamation cost accretion | 0.8 | 1.0 | 0.4 | 2.7 | 4.9 | 1.5 | 6.1 | 17.4 | ||||||||||||||||||
All-in sustaining costs | $ | 105.1 | $ | 79.3 | $ | 177.5 | $ | 150.3 | $ | 100.5 | $ | 88.3 | $ | 56.3 | $ | 757.1 | ||||||||||
Gold segment gold ounces sold (koz) | 91.6 | 65.4 | 97.3 | 105.6 | 70.1 | 49.0 | 81.7 | 560.8 | ||||||||||||||||||
Cash cost per ounce sold | $ | 808 | $ | 1,020 | $ | 1,511 | $ | 955 | $ | 1,234 | $ | 1,504 | $ | 939 | $ | 1,116 | ||||||||||
AISC per ounce sold | $ | 1,146 | $ | 1,213 | $ | 1,823 | $ | 1,423 | $ | 1,433 | $ | 1,804 | $ | 688 | $ | 1,350 | ||||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,146 | $ | 1,213 | $ | 1,823 | $ | 1,423 | $ | 1,433 | $ | 1,804 | $ | 1,111 | $ | 1,412 |
PAN AMERICAN SILVER CORP. | 29 |
![]() |
Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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 September 30, |
Nine months ended September 30, |
|||||||||||||
(In millions of USD, except as noted) | 2024 | 2023 | 2024 | 2023 | ||||||||||
Net earnings (loss) for the period | $ | 57.1 | $ | (20.6) | $ | 4.9 | $ | (37.1) | ||||||
Adjust for: | ||||||||||||||
Impairment charges | — | — | — | 42.4 | ||||||||||
Unrealized foreign exchange gains | (3.8) | (1.0) | (15.3) | — | ||||||||||
Net realizable value heap inventory expense | 11.6 | 3.1 | 63.4 | 5.3 | ||||||||||
Acquired Mines fair value inventory expense | — | — | — | 32.3 | ||||||||||
Derivative unrealized (gains) losses | (5.8) | 7.8 | 5.9 | 10.9 | ||||||||||
Loss from associates | — | — | 0.1 | 0.4 | ||||||||||
Severance provisions | 4.3 | 2.8 | 6.9 | 23.7 | ||||||||||
Mineral property, plant and equipment losses (gains) on sale | 3.0 | (10.0) | 3.9 | (8.3) | ||||||||||
Litigation provisions | — | — | 2.8 | — | ||||||||||
Transaction and integration costs | — | 0.6 | — | 25.0 | ||||||||||
Investment loss | 0.6 | 7.8 | 8.4 | 8.8 | ||||||||||
Closure and decommissioning liability | 1.6 | — | (0.1) | 1.9 | ||||||||||
Tax settlements related to prior years' income taxes(1) |
46.8 | — | 46.8 | — | ||||||||||
Effect of taxes on adjusting items | (0.9) | (1.7) | (13.2) | (20.9) | ||||||||||
Effect of foreign exchange on taxes | 0.6 | 16.4 | 45.3 | (28.8) | ||||||||||
Total adjustments | $ | 58.0 | $ | 25.8 | $ | 154.9 | $ | 92.7 | ||||||
Adjusted earnings for the period | $ | 115.1 | $ | 5.2 | $ | 159.8 | $ | 55.6 | ||||||
Weighted average shares for the period | 363.0 | 364.4 | 363.5 | 313.7 | ||||||||||
Adjusted earnings per share for the period | $ | 0.32 | $ | 0.01 | $ | 0.44 | $ | 0.18 |
PAN AMERICAN SILVER CORP. | 30 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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 | |||||||||||||
Mexican peso collars(1) |
$ | 13.8 | $ | 18.74 | $ | 22.72 | October 2024 to December 2025 | ||||||||||
Mexican peso forwards | $ | 15.6 | $ | 19.02 | October 2024 to December 2025 | ||||||||||||
Peruvian sol forwards | $ | 13.5 | $ | 3.86 | October 2024 to December 2024 | ||||||||||||
Canadian dollar collars(2) |
$ | 4.5 | $ | 1.36 | $ | 1.42 | October 2024 to December 2024 | ||||||||||
Canadian dollar forwards(3) |
$ | 24.0 | $ | 1.39 | October 2024 to December 2024 | ||||||||||||
Chilean peso collars(4) |
$ | 12.0 | $ | 903 | $ | 968 | October 2024 to December 2024 | ||||||||||
Chilean peso forwards | $ | 42.0 | $ | 945 | October 2024 to December 2025 | ||||||||||||
Brazilian real collars(5) |
$ | 27.0 | $ | 5.36 | $ | 5.97 | October 2024 to December 2025 | ||||||||||
Brazilian real forwards | $ | 39.0 | $ | 5.44 | October 2024 to December 2025 |
Three months ended September 30, |
Nine months ended September 30, |
|||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||
Mexican peso (losses) gains | $ | (1.0) | $ | 0.1 | $ | (1.4) | $ | 2.4 | ||||||
Peruvian sol gains (losses) | 0.8 | (0.5) | 0.4 | 1.5 | ||||||||||
Canadian dollar gains (losses) | 0.6 | (1.2) | (1.4) | 1.0 | ||||||||||
Chilean peso gains (losses) | 2.9 | (2.0) | (0.8) | (4.8) | ||||||||||
Brazilian real gains (losses) | 1.6 | (0.6) | (3.2) | 0.3 | ||||||||||
$ | 4.9 | $ | (4.2) | $ | (6.4) | $ | 0.4 |
PAN AMERICAN SILVER CORP. | 33 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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. | 34 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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. | 35 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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. | 36 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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. | 37 |
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Management Discussion and Analysis |
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For the three and nine months ended September 30, 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. | 38 |
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Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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. | 39 |
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Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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. | 40 |
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Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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. | 41 |
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Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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. | 42 |
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Management Discussion and Analysis |
||||
For the three and nine months ended September 30, 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. | 43 |
Date: November 5, 2024 | |||||
/s/ "Michael Steinmann" | |||||
Michael Steinmann | |||||
Chief Executive Officer |
Date: November 5, 2024 | |||||
/s/ "Ignacio Couturier" | |||||
Ignacio Couturier | |||||
Chief Financial Officer |
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Q3 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 and per ounce amounts, unless otherwise noted.
|
PAN AMERICAN SILVER CORP. |
1 |
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Q3 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 and per ounce amounts, unless otherwise noted.
|
PAN AMERICAN SILVER CORP. |
2 |
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Q3 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 and per ounce amounts, unless otherwise noted.
|
Three months ended September 30, 2024 | Twelve months ended December 31, 2023 | |||||||
Weighted average shares during period | 362,996 | 326,540 | ||||||
Shares outstanding end of period | 363,001 | 364,660 | ||||||
Three months ended September 30, |
||||||||
2024 | 2023(1) |
|||||||
FINANCIAL | ||||||||
Revenue | $ | 716.1 | $ | 616.3 | ||||
Cost of Sales(2) |
$ | 540.4 | $ | 549.6 | ||||
Mine operating earnings | $ | 175.7 | $ | 66.7 | ||||
Net earnings (loss) | $ | 57.1 | $ | (20.6) | ||||
Basic earnings (loss) per share(3) |
$ | 0.16 | $ | (0.05) | ||||
Adjusted earnings(4) |
$ | 115.1 | $ | 5.2 | ||||
Basic adjusted earnings per share(3)(4) |
$ | 0.32 | $ | 0.01 | ||||
Net cash generated from operating activities | $ | 226.2 | $ | 114.6 | ||||
Net cash generated from operating activities before changes in working capital(4) |
$ | 235.8 | $ | 119.9 | ||||
Sustaining capital expenditures(4) |
$ | 74.7 | $ | 76.7 | ||||
Non-sustaining capital expenditures(4)(5) |
$ | 14.3 | $ | 48.7 | ||||
Cash dividend paid per share |
$ | 0.10 | $ | 0.10 | ||||
PRODUCTION | ||||||||
Silver (thousand ounces) | 5,467 | 5,687 | ||||||
Gold (thousand ounces) | 225.0 | 244.2 | ||||||
Zinc (thousand tonnes) | 11.2 | 9.5 | ||||||
Lead (thousand tonnes) | 5.2 | 4.9 | ||||||
Copper (thousand tonnes) | 1.3 | 1.2 | ||||||
CASH COSTS(4) ($/ounce) |
||||||||
Silver Segment | 15.88 | 13.13 | ||||||
Gold Segment | 1,195 | 1,187 | ||||||
AISC(4) ($/ounce) |
||||||||
Silver Segment | 19.63 | 18.19 | ||||||
Gold Segment | 1,496 | 1,451 | ||||||
AVERAGE REALIZED PRICES(6) |
||||||||
Silver ($/ounce) |
29.52 | 23.11 | ||||||
Gold ($/ounce) |
2,475 | 1,927 | ||||||
Zinc ($/tonne) |
2,897 | 2,336 | ||||||
Lead ($/tonne) |
2,062 | 2,170 | ||||||
Copper ($/tonne) |
9,273 | 8,343 |
PAN AMERICAN SILVER CORP. |
3 |
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Q3 2024 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted.
|
Silver Production (thousand ounces) |
Gold Production (thousand ounces) |
Cash Costs
($ per ounce)(1)
|
AISC
($ per ounce)(1)
|
|||||||||||
Silver Segment | ||||||||||||||
La Colorada (Mexico) | 1,329 | 0.9 | 19.59 | 22.25 | ||||||||||
Cerro Moro (Argentina) | 804 | 17.0 | 18.84 | 20.88 | ||||||||||
Huaron (Peru) | 888 | -- | 9.32 | 16.77 | ||||||||||
San Vicente (Bolivia)(2) |
811 | -- | 13.06 | 16.28 | ||||||||||
Total Silver Segment(3) |
3,833 | 17.9 | 15.88 | 19.63 | ||||||||||
Gold Segment | ||||||||||||||
Jacobina (Brazil) | 1 | 50.4 | 916 | 1,195 | ||||||||||
El Peñon (Chile) | 995 | 26.8 | 956 | 1,314 | ||||||||||
Timmins (Canada) | 2 | 33.9 | 1,599 | 1,912 | ||||||||||
Shahuindo (Peru) | 69 | 35.9 | 960 | 1,413 | ||||||||||
La Arena (Peru) | 12 | 22.7 | 1,412 | 1,673 | ||||||||||
Minera Florida (Chile) | 115 | 19.1 | 1,824 | 2,109 | ||||||||||
Dolores (Mexico) | 442 | 18.4 | 1,296 | 1,262 | ||||||||||
Total Gold Segment(3) |
1,635 | 207.1 | 1,195 | 1,496 | ||||||||||
Total Consolidated(3) |
5,467 | 225.0 |
2024 Annual Guidance | |||||
Silver Production (million ounces) | 21.00 - 23.00 | ||||
Gold Production (thousand ounces) | 880 - 1,000 | ||||
Silver Segment Cash Costs(1) ($ per ounce) |
11.70 - 14.10 | ||||
Silver Segment AISC(1) ($ per ounce) |
16.00 - 18.50 | ||||
Gold Segment Cash Costs(1) ($ per ounce) |
1,165 - 1,260 | ||||
Gold Segment AISC (1) ($ per ounce) |
1,475 - 1,575 |
PAN AMERICAN SILVER CORP. |
4 |
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Q3 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 and per ounce amounts, unless otherwise noted.
|
2024 Annual Guidance | |||||
Sustaining Capital Expenditures ($ millions) | 295.0 - 310.0 | ||||
Project Capital Expenditures ($ millions) | 80.0 - 85.0 |
Date: | November 6, 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: | 97750876 | ||||
Webcast: | https://events.q4inc.com/attendee/510828696 |
PAN AMERICAN SILVER CORP. |
5 |
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Q3 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 and per ounce amounts, unless otherwise noted.
|
PAN AMERICAN SILVER CORP. |
6 |
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Q3 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 and per ounce amounts, unless otherwise noted.
|
PAN AMERICAN SILVER CORP. |
7 |