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- Company provides 2025 Operating Outlook<\/b><\/li>\n<\/ul>\n
\nAll amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts are in millions of U.S. dollars and thousands of shares, options and warrants, except per share amounts, unless otherwise noted.\n<\/p>\n
VANCOUVER, British Columbia–(BUSINESS WIRE<\/a>)–Pan American Silver Corp.<\/b> (NYSE: PAAS) (TSX: PAAS) (“Pan American” or the “Company”) provides fourth quarter (“Q4 2024”) financial results and audited financial results for the year ended December 31, 2024 (“FY 2024”), and its outlook for production, costs and expenditures in 2025 (the “2025 Operating Outlook”). Pan American will host a conference call and webcast to discuss the 2024 financial results and the 2025 Operating Outlook on February 20, 2025; details provided further in this news release.\n<\/p>\n
\n“Pan American generated record free cash flow of $196.2 million in Q4 and $445.1 million in 2024, reflecting strong metal prices, expanding margins, and solid operating performance, highlighted by strong silver and record annual gold production,” said Michael Steinmann, President and Chief Executive Officer. “We are well positioned to continue generating robust operating margins in 2025, by prioritizing safe, sustainable operations and efficient cost management. We are in a strong financial position with $1.6 billion of total available liquidity to provide solid shareholder returns through dividends and opportunistic share buybacks, while pursuing our strategic initiatives.”\n<\/p>\n
Q4 2024 and FY 2024 HIGHLIGHTS:<\/b><\/p>\n
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- \nSilver production was 6.0 million ounces in Q4 2024 and 21.1 million ounces in FY 2024. Annual silver production was within the 2024 Guidance.\n<\/li>\n<\/ul>\n
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- \nGold production was 224.2 thousand ounces in Q4 2024 and a record 892.5 thousand ounces in FY 2024. Gold production in Q4 2024 excludes December production from the La Arena mine (the sale of the mine was completed on December 2, 2024). Annual gold production was within the 2024 Guidance.\n<\/li>\n<\/ul>\n
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- \nRecord revenue of $815.1 million and $2.8 billion in Q4 2024 and FY 2024, respectively.\n<\/li>\n<\/ul>\n
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- \nNet earnings of $107.8 million, or $0.30 basic earnings per share, in Q4 2024. FY 2024 net earnings of $112.7 million, or $0.31 basic earnings per share.\n<\/li>\n<\/ul>\n
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- \nAdjusted earnings of $126.9 million, or $0.35 basic adjusted earnings per share, in Q4 2024. FY 2024 adjusted earnings of $286.7 million, or $0.79 basic adjusted earnings per share.\n<\/li>\n<\/ul>\n
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- \nRecord cash flow generated from operating activities of $274.1 million and $724.1 million in Q4 2024 and FY 2024, respectively.\n<\/li>\n<\/ul>\n
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- \nRecord free cash flow of $196.2 million and $445.1 million in Q4 2024 and FY 2024, respectively.\n<\/li>\n<\/ul>\n
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- \nSilver Segment Cash Costs were $14.06 and $14.30 per ounce in Q4 2024 and FY 2024, respectively. Silver Segment all-in sustaining costs (“AISC”) excluding net realizable value (“NRV”) inventory adjustments were $19.88 and $18.98 per ounce in Q4 2024 and FY 2024, respectively. FY 2024 Silver Segment Cash Costs and AISC were slightly above the 2024 Guidance ranges.\n<\/li>\n<\/ul>\n
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- \nGold Segment Cash Costs were $1,223 and $1,203 per ounce in Q4 2024 and FY 2024, respectively. Gold Segment AISC excluding NRV inventory adjustments were $1,521 and $1,501 per ounce in Q4 2024 and FY 2024, respectively. FY 2024 Gold Segment Cash Costs and AISC were within the 2024 Guidance ranges.\n<\/li>\n<\/ul>\n
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- \nCapital expenditurestotaled $372.4 million in 2024, comprised of $279.0 million of sustaining capital and $93.4 million of project capital.\n<\/li>\n<\/ul>\n
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- \nAs at December 31, 2024, the Company had working capital of $1,033.4 million, inclusive of cash and short-term investments of $887.3 million, and $750.0 million available under its revolving Credit Facility. Total debt of $803.3 million was related to two senior notes, construction and other loans, and leases.\n<\/li>\n<\/ul>\n
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- \nA cash dividend of $0.10 per common share has been declared, payable on or about March 14, 2025, to holders of record of Pan American\u2019s common shares as of the close on March 3, 2025. The dividends are eligible dividends for Canadian income tax purposes.\n<\/li>\n<\/ul>\n
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- \nUnder the Company’s Normal Course Issuer Bid (“NCIB”), for the year ended December 31, 2024, 1,720,366 common shares were repurchased for cancellation at an average price of $14.16 per share for a total consideration of $24.3 million. In January 2025, 909,012 common shares were repurchased for cancellation under the NCIB at an average price of $22.00 per share for a total consideration of $20.0 million.\n<\/li>\n<\/ul>\n
Q4 2024 Project Updates:<\/b><\/p>\n
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- \nLa Colorada – $8.0 million of project capital was spent, primarily on the Skarn project for engineering work and exploration drilling.\n<\/li>\n<\/ul>\n
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- \nHuaron – $6.5 million of project capital was spent on the construction of the new tailings filtration plant and filter-stack tailings storage facility, which was substantially completed in Q4 2024 and is expected to be fully operational within the first half of 2025. Residual capital accounts payable settlements are expected in 2025 and have been included in the 2025 Operating Outlook.\n<\/li>\n<\/ul>\n
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- \nTimmins – $1.5 million of project capital was spent to complete construction of the Bell Creek paste backfill plant. The plant is now fully operational and is expected to provide enhanced ground stability and increased mineral resource recovery.\n<\/li>\n<\/ul>\n
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- \nJacobina – $4.5 million of project capital was spent in upgrading the plant facility infrastructure and on a study aimed at optimizing the mine’s long-term economics and sustainability.\n<\/li>\n<\/ul>\n
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- \nEscobal – Guatemalan government representatives held working meetings with Xinka representatives in relation to the ongoing Escobal ILO 169 consultation process. Pan American also had working meetings with the government, including with the Vice Minister of Sustainable Development who is responsible for overseeing the consultation process. The Escobal mine remains on care and maintenance and there is no date for a restart of operations.\n<\/li>\n<\/ul>\n
2025 OPERATING OUTLOOK<\/b><\/p>\n
\nPan American reports mines in either a Silver Segment or a Gold Segment, with AISC calculated on a by-product basis; specifically, by-product metal sales are credited against the operating costs to produce the primary metal for that segment.\n<\/p>\n
\nThe following estimates contain forward-looking information about expected future events and financial and operating performance of Pan American. Readers should refer to the risks and assumptions set out in the “Cautionary Note Regarding Forward-Looking Statements and Information” at the end of this news release. Pan American may revise forecasts during the year to reflect actual results to date and those anticipated for the remainder of the year.\n<\/p>\n
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- \nSilver production in 2025 is forecast to be between 20.00 to 21.00 million ounces. At La Colorada, the improvement in ventilation conditions is expected to enable higher development rates in 2025 relative to 2024, allowing throughput of up to 2,000 tonnes per day in 2025. At Huaron, the development of the Horizonte zone is expected to drive higher throughput and higher silver grades. Decreases in silver production relative to 2024 are forecasted at Dolores due to the cessation of active mining and the operation entering the residual leaching phase and at San Vicente due to mine sequencing into lower silver grade ores.\n<\/li>\n<\/ul>\n
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- \nGold production in 2025 is forecast to be between 735 to 800 thousand ounces, reflecting the disposition of La Arena in 2024 and the cessation of active mining at Dolores, which is entering the residual leaching phase.\n<\/li>\n<\/ul>\n
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- \nBoth silver and gold production are weighted to the second half of 2025, with a corresponding decrease in AISC per ounce over that period.\n<\/li>\n<\/ul>\n
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- \nForecasted Silver Segment AISC of between $16.25 and $18.25 per ounce in 2025 reflects the expectation that the new ventilation infrastructure at La Colorada will reduce the mine’s AISC per ounce, and for higher gold by-product credits from Cerro Moro; partly offset by additional payments associated with contractual rights to mine concessions adjacent to the La Colorada mine, and higher expected costs at Huaron for operating the new tailings filtration plant and filter-stack tailings storage facility.\n<\/li>\n<\/ul>\n
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- \nForecasted Gold Segment AISC of between $1,525 and $1,625 per ounce in 2025. At Shahuindo, operating costs per ounce are expected to increase due to lower grade ore stacked from mine sequencing and a higher proportion of low-grade coarse ores needed to blend with the higher grade fine ores. Sustaining capital postponed from 2024 for waste dump preparation and water treatment projects at Shahuindo is also expected to contribute to higher AISC. At Timmins, an increase in operating costs is expected from the additional costs associated with operating the new paste plant at Bell Creek and labour-driven inflationary pressures, partly offset by a weakening Canadian dollar.\n<\/li>\n<\/ul>\n
2025 Silver and Gold Production and AISC Forecasts:<\/b><\/p>\n
- \nForecasted Gold Segment AISC of between $1,525 and $1,625 per ounce in 2025. At Shahuindo, operating costs per ounce are expected to increase due to lower grade ore stacked from mine sequencing and a higher proportion of low-grade coarse ores needed to blend with the higher grade fine ores. Sustaining capital postponed from 2024 for waste dump preparation and water treatment projects at Shahuindo is also expected to contribute to higher AISC. At Timmins, an increase in operating costs is expected from the additional costs associated with operating the new paste plant at Bell Creek and labour-driven inflationary pressures, partly offset by a weakening Canadian dollar.\n<\/li>\n<\/ul>\n
- \nForecasted Silver Segment AISC of between $16.25 and $18.25 per ounce in 2025 reflects the expectation that the new ventilation infrastructure at La Colorada will reduce the mine’s AISC per ounce, and for higher gold by-product credits from Cerro Moro; partly offset by additional payments associated with contractual rights to mine concessions adjacent to the La Colorada mine, and higher expected costs at Huaron for operating the new tailings filtration plant and filter-stack tailings storage facility.\n<\/li>\n<\/ul>\n
- \nBoth silver and gold production are weighted to the second half of 2025, with a corresponding decrease in AISC per ounce over that period.\n<\/li>\n<\/ul>\n
- \nGold production in 2025 is forecast to be between 735 to 800 thousand ounces, reflecting the disposition of La Arena in 2024 and the cessation of active mining at Dolores, which is entering the residual leaching phase.\n<\/li>\n<\/ul>\n
- \nSilver production in 2025 is forecast to be between 20.00 to 21.00 million ounces. At La Colorada, the improvement in ventilation conditions is expected to enable higher development rates in 2025 relative to 2024, allowing throughput of up to 2,000 tonnes per day in 2025. At Huaron, the development of the Horizonte zone is expected to drive higher throughput and higher silver grades. Decreases in silver production relative to 2024 are forecasted at Dolores due to the cessation of active mining and the operation entering the residual leaching phase and at San Vicente due to mine sequencing into lower silver grade ores.\n<\/li>\n<\/ul>\n
- \nEscobal – Guatemalan government representatives held working meetings with Xinka representatives in relation to the ongoing Escobal ILO 169 consultation process. Pan American also had working meetings with the government, including with the Vice Minister of Sustainable Development who is responsible for overseeing the consultation process. The Escobal mine remains on care and maintenance and there is no date for a restart of operations.\n<\/li>\n<\/ul>\n
- \nJacobina – $4.5 million of project capital was spent in upgrading the plant facility infrastructure and on a study aimed at optimizing the mine’s long-term economics and sustainability.\n<\/li>\n<\/ul>\n
- \nTimmins – $1.5 million of project capital was spent to complete construction of the Bell Creek paste backfill plant. The plant is now fully operational and is expected to provide enhanced ground stability and increased mineral resource recovery.\n<\/li>\n<\/ul>\n
- \nHuaron – $6.5 million of project capital was spent on the construction of the new tailings filtration plant and filter-stack tailings storage facility, which was substantially completed in Q4 2024 and is expected to be fully operational within the first half of 2025. Residual capital accounts payable settlements are expected in 2025 and have been included in the 2025 Operating Outlook.\n<\/li>\n<\/ul>\n
- \nLa Colorada – $8.0 million of project capital was spent, primarily on the Skarn project for engineering work and exploration drilling.\n<\/li>\n<\/ul>\n
- \nUnder the Company’s Normal Course Issuer Bid (“NCIB”), for the year ended December 31, 2024, 1,720,366 common shares were repurchased for cancellation at an average price of $14.16 per share for a total consideration of $24.3 million. In January 2025, 909,012 common shares were repurchased for cancellation under the NCIB at an average price of $22.00 per share for a total consideration of $20.0 million.\n<\/li>\n<\/ul>\n
- \nA cash dividend of $0.10 per common share has been declared, payable on or about March 14, 2025, to holders of record of Pan American\u2019s common shares as of the close on March 3, 2025. The dividends are eligible dividends for Canadian income tax purposes.\n<\/li>\n<\/ul>\n
- \nAs at December 31, 2024, the Company had working capital of $1,033.4 million, inclusive of cash and short-term investments of $887.3 million, and $750.0 million available under its revolving Credit Facility. Total debt of $803.3 million was related to two senior notes, construction and other loans, and leases.\n<\/li>\n<\/ul>\n
- \nCapital expenditurestotaled $372.4 million in 2024, comprised of $279.0 million of sustaining capital and $93.4 million of project capital.\n<\/li>\n<\/ul>\n
- \nGold Segment Cash Costs were $1,223 and $1,203 per ounce in Q4 2024 and FY 2024, respectively. Gold Segment AISC excluding NRV inventory adjustments were $1,521 and $1,501 per ounce in Q4 2024 and FY 2024, respectively. FY 2024 Gold Segment Cash Costs and AISC were within the 2024 Guidance ranges.\n<\/li>\n<\/ul>\n
- \nSilver Segment Cash Costs were $14.06 and $14.30 per ounce in Q4 2024 and FY 2024, respectively. Silver Segment all-in sustaining costs (“AISC”) excluding net realizable value (“NRV”) inventory adjustments were $19.88 and $18.98 per ounce in Q4 2024 and FY 2024, respectively. FY 2024 Silver Segment Cash Costs and AISC were slightly above the 2024 Guidance ranges.\n<\/li>\n<\/ul>\n
- \nRecord free cash flow of $196.2 million and $445.1 million in Q4 2024 and FY 2024, respectively.\n<\/li>\n<\/ul>\n
- \nRecord cash flow generated from operating activities of $274.1 million and $724.1 million in Q4 2024 and FY 2024, respectively.\n<\/li>\n<\/ul>\n
- \nAdjusted earnings of $126.9 million, or $0.35 basic adjusted earnings per share, in Q4 2024. FY 2024 adjusted earnings of $286.7 million, or $0.79 basic adjusted earnings per share.\n<\/li>\n<\/ul>\n
- \nNet earnings of $107.8 million, or $0.30 basic earnings per share, in Q4 2024. FY 2024 net earnings of $112.7 million, or $0.31 basic earnings per share.\n<\/li>\n<\/ul>\n
- \nRecord revenue of $815.1 million and $2.8 billion in Q4 2024 and FY 2024, respectively.\n<\/li>\n<\/ul>\n
- \nGold production was 224.2 thousand ounces in Q4 2024 and a record 892.5 thousand ounces in FY 2024. Gold production in Q4 2024 excludes December production from the La Arena mine (the sale of the mine was completed on December 2, 2024). Annual gold production was within the 2024 Guidance.\n<\/li>\n<\/ul>\n
- \nSilver production was 6.0 million ounces in Q4 2024 and 21.1 million ounces in FY 2024. Annual silver production was within the 2024 Guidance.\n<\/li>\n<\/ul>\n