\n“Q1 delivered solid results, driven by strong production, disciplined cost management, and improved quarter-over-quarter silver and gold prices,” said Michael Steinmann, President and Chief Executive Officer. “We are firmly on track to achieve our 2026 guidance, supporting continued momentum in free cash flow generation. In Q1, operations generated $488 million in free cash flow, bringing our cash and short-term investments to a record $1.8 billion, including $199 million attributable to our interest in Juanicipio.”<\/p>\n
\n“Supported by a strong balance sheet and free cash flow, we are well positioned to invest in growth while enhancing shareholder returns. Today, the Board approved an updated capital allocation framework, targeting up to $1 billion in returns in 2026, through increased share repurchases alongside our meaningful dividend increase introduced last quarter, as described in detail in a separate news release issued today,” said Mr. Steinmann.<\/p>\n
\n“This enhanced framework links shareholder returns to free cash flow while preserving capacity to fund growth, including the expansion of our La Colorada mine. In Q1, we released a revised Preliminary Economic Assessment for the La Colorada Skarn project, highlighting potential annual silver production of more than 19 million ounces during the peak five years from a combination of production from high-grade veins and skarn mineralization, which will make La Colorada one of the largest and lowest cost silver mines in the world. The Board has approved the initial spend of $265 million, out of a total estimated $1.9 billion investment, to begin construction of an internal ramp to access the skarn mineralization, marking a key milestone in advancing this high-quality project.”<\/p>\n
\nThe following highlights for Q1 2026 include certain measures that are not generally accepted accounting principles (“non-GAAP”) financial measures. Please refer to the section titled \u201cAlternative Performance (Non-GAAP) Measures\u201d at the end of this news release for further information on these measures.<\/p>\n
Q1 2026 Results:<\/b><\/p>\n ENHANCED SHAREHOLDER RETURN FRAMEWORK<\/b><\/p>\n \nOn May 5, 2026, the Company\u2019s Board of Directors approved an enhanced shareholder return framework (the “Shareholder Return Framework”) targeting the return of 35% to 40% of annual Attributable Free Cash Flow<\/b>(1)(2)<\/sup> to shareholders through a combination of dividends and common share repurchases under Pan American\u2019s NCIB that began on March 6, 2026. Based on the Shareholder Return Framework target and assuming that the current strong free cash flow generation continues, Pan American anticipates returning up to $1 billion to shareholders in 2026<\/b>.<\/p>\n \nUnder the Shareholder Return Framework for 2026, Pan American expects to pay aggregate dividends of $305 million during the year, paid in equal quarterly installments (currently equivalent to $0.18 per common share per quarter). Excess Attributable Free Cash Flow(1)(2)<\/sup> that is not distributed through dividends will be allocated to common share repurchases, at the Company’s discretion, through the NCIB. Please see the news release dated May 5, 2026 for further details.<\/p>\n \nA cash dividend of $0.18 per common share<\/b>, or $76 million in aggregate, with respect to Q1 2026 was declared on May 5, 2026, payable on or about June 1, 2026, to holders of record of Pan American\u2019s common shares as of the close of markets on May 19, 2026. The dividends are eligible dividends for Canadian income tax purposes. The declaration, timing, amount and payment of any future dividends remain at the discretion of the Company\u2019s Board of Directors.<\/p>\n \nOn March 6, 2026, the Company renewed its normal course issuer bid <\/b>(the “NCIB”) until March 5, 2027 for the ability to purchase up to 21,090,323 of its common shares for cancellation. In Q1 2026, 460,200 common shares were repurchased for cancellation under the NCIB at an average price of $54.04 per share for a total consideration of $25 million, leaving 20,630,123 common shares available under the current NCIB.<\/p>\n\n
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