Pan American Silver Reports Unaudited Third Quarter 2024 Results, with Record Free Cash Flow of $151.5 Million
Pan American Silver reported record financial results for Q3 2024, including record free cash flow of $151.5 million. Revenue reached $716.1 million, with net earnings of $57.1 million ($0.16 per share) and adjusted earnings of $115.1 million ($0.32 per share). The quarter saw silver production of 5.47 million ounces and gold production of 225,000 ounces.
The La Colorada mine showed significant improvements with a 59% increase in silver production and 26% decrease in cash costs compared to Q2 2024. Cash and short-term investments increased by $101.3 million to $469.9 million. The company declared a quarterly dividend of $0.10 per share and maintains its 2024 Operating Outlook.
Pan American Silver ha riportato risultati finanziari record per il terzo trimestre del 2024, inclusi flussi di cassa liberi record di $151,5 milioni. I ricavi hanno raggiunto $716,1 milioni, con utili netti di $57,1 milioni ($0,16 per azione) e utili rettificati di $115,1 milioni ($0,32 per azione). Nel trimestre sono state prodotte 5,47 milioni di once d'argento e 225.000 once d'oro.
La miniera La Colorada ha mostrato miglioramenti significativi con un aumento del 59% nella produzione d'argento e una diminuzione del 26% nei costi in contante rispetto al secondo trimestre del 2024. I liquidità e gli investimenti a breve termine sono aumentati di $101,3 milioni, raggiungendo i $469,9 milioni. L'azienda ha dichiarato un dividendo trimestrale di $0,10 per azione e mantiene le previsioni operative per il 2024.
Pan American Silver reportó resultados financieros récord para el tercer trimestre de 2024, incluyendo un flujo de caja libre récord de $151.5 millones. Los ingresos alcanzaron $716.1 millones, con ganancias netas de $57.1 millones ($0.16 por acción) y ganancias ajustadas de $115.1 millones ($0.32 por acción). En el trimestre se produjeron 5.47 millones de onzas de plata y 225,000 onzas de oro.
La mina La Colorada mostró mejoras significativas con un aumento del 59% en la producción de plata y una disminución del 26% en los costos en efectivo en comparación con el segundo trimestre de 2024. El efectivo y las inversiones a corto plazo aumentaron en $101.3 millones, alcanzando los $469.9 millones. La empresa declaró un dividendo trimestral de $0.10 por acción y mantiene sus proyecciones operativas para 2024.
팬 아메리칸 실버는 2024년 3분기에 대한 기록적인 재정 결과를 보고했으며, 여기에는 기록적인 $151.5 백만 달러의 자유 현금 흐름이 포함됩니다. 매출은 $716.1 백만 달러에 도달했으며, 순이익은 $57.1 백만 달러($0.16 주당)이고 조정된 이익은 $115.1 백만 달러($0.32 주당)입니다. 이 분기에는 5.47 백만 온스의 은과 225,000 온스의 금이 생산되었습니다.
라 콜로라도 광산은 2024년 2분기 대비 은 생산이 59% 증가하고 현금 비용이 26% 감소하는 등 상당한 개선을 보여주었습니다. 현금 및 단기 투자는 $101.3 백만 달러 증가하여 $469.9 백만 달러에 달했습니다. 회사는 주당 $0.10의 분기 배당금을 선언했으며 2024년 운영 전망을 유지하고 있습니다.
Pan American Silver a rapporté des résultats financiers record pour le troisième trimestre 2024, y compris un flux de trésorerie libre record de $151,5 millions. Les revenus ont atteint $716,1 millions, avec un bénéfice net de $57,1 millions ($0,16 par action) et un bénéfice ajusté de $115,1 millions ($0,32 par action). Le trimestre a vu une production d'argent de 5,47 millions d'onces et une production d'or de 225 000 onces.
La mine La Colorada a montré des améliorations significatives avec une augmentation de 59% de la production d'argent et une diminution de 26% des coûts en espèces par rapport au deuxième trimestre 2024. Les liquidités et les investissements à court terme ont augmenté de $101,3 millions pour atteindre $469,9 millions. L'entreprise a déclaré un dividende trimestriel de $0,10 par action et maintient ses prévisions opérationnelles pour 2024.
Pan American Silver berichtete über rekordverdächtige finanzielle Ergebnisse für das dritte Quartal 2024, einschließlich eines rekordverdächtigen freien Cashflows von $151,5 Millionen. Der Umsatz erreichte $716,1 Millionen, mit einem Nettogewinn von $57,1 Millionen ($0,16 pro Aktie) und bereinigten Gewinnen von $115,1 Millionen ($0,32 pro Aktie). Im Quartal wurden 5,47 Millionen Unzen Silber und 225.000 Unzen Gold produziert.
Die Mine La Colorada zeigte bedeutende Verbesserungen mit einem Anstieg der Silberproduktion um 59% und einer Reduzierung der Barzahlungen um 26% im Vergleich zum zweiten Quartal 2024. Liquidität und kurzfristige Investitionen stiegen um $101,3 Millionen auf $469,9 Millionen. Das Unternehmen erklärte eine vierteljährliche Dividende von $0,10 pro Aktie und hält an seinem operativen Ausblick für 2024 fest.
- Record free cash flow of $151.5 million
- Record revenue of $716.1 million
- 59% increase in silver production at La Colorada mine
- 26% decrease in cash costs at La Colorada mine
- $101.3 million increase in cash and short-term investments
- $750 million available under undrawn Credit Facility
- Income tax expense of $73.3 million, including $40.5 million in Mexico for prior years
- Total debt of $815.2 million
Insights
A strong quarter marked by record financial performance. Revenue reached
Balance sheet strength improved with cash and short-term investments increasing by
La Colorada's operational improvements are particularly noteworthy, with a
Production metrics show solid operational execution with 5.47 million ounces of silver and 225,000 ounces of gold. Cost control remains effective with Silver Segment cash costs at
Strategic capital investments in key projects like La Colorada ventilation, Huaron's filter plant and Timmins' paste plant demonstrate commitment to operational optimization. The throughput target of 2,000 tonnes per day at La Colorada by year-end positions the company for continued growth in production capacity.
All amounts expressed in
"Pan American generated record financial results in Q3 2024, including record free cash flow of
"At the
The following highlights for Q3 2024 include certain measures that are not generally accepted accounting principles ("non-GAAP") financial measures. Please refer to the section titled “Alternative Performance (Non-GAAP) Measures” at the end of this news release for further information on these measures.
Consolidated Q3 2024 Results:
- Silver production of 5.47 million ounces.
- Gold production of 225.0 thousand ounces.
-
Record revenue of
, which excludes an approximately$716.1 million build-up in finished goods and concentrate inventories.$30 million -
Net earnings of
, or$57.1 million basic earnings per share.$0.16 -
Adjusted earnings of
, or$115.1 million adjusted earnings per share.$0.32 -
Income tax expense of
includes: (i) a net$73.3 million in$40.5 million Mexico and (ii) in$6.3 million Argentina , both related to prior years' tax filings, which were partially offset by (iii) the reversal of of Argentine inflation-driven tax expense that was recorded in the first half of 2024. Adjusted earnings does not include the first two items, as these relate to previous years' income.$26.5 million -
Record cash flow from operations before non-cash working capital changes of
, net of$235.8 million in cash taxes paid.$26.4 million -
Silver Segment Cash Costs and All-in Sustaining Costs ("AISC")(1)(2), excluding net realizable value ("NRV") inventory adjustments, per silver ounce of
and$15.88 , respectively.$20.90 -
Gold Segment Cash Costs and AISC(2)(3), excluding NRV inventory adjustments, per gold ounce of
and$1,195 , respectively.$1,516 -
Cash and short-term investments increased by
to$101.3 million .$469.9 million -
At September 30, 2024, the Company had working capital of
and$780.0 million available under the undrawn Credit Facility ("SL-Credit Facility"). Total debt of$750.0 million is primarily related to two senior notes, as well as certain lease liabilities, construction and other loans payable.$815.2 million - The Company maintains its 2024 Operating Outlook, as previously provided in its Management's Discussion & Analysis ("MD&A") dated February 21, 2024. See the "2024 Operating Outlook" section of this news release for further detail.
-
A cash dividend of
per common share with respect to Q3 2024 was declared on November 5, 2024, payable on or about November 29, 2024, to holders of record of Pan American’s common shares as of the close of markets on November 18, 2024. In Q3 2024, the Company paid cash dividends totaling$0.10 . The dividends are eligible dividends for Canadian income tax purposes.$36.3 million
(1) |
Silver Segment Cash Costs and AISC are calculated net of credits for realized revenues from all metals other than silver ("silver segment byproduct credits"), and are calculated per ounce of silver sold. |
|
(2) |
Cash costs per ounce metrics, net of by-product credits, is used extensively in our internal decision-making processes. We believe the metric is also useful to investors because it facilitates comparison, on a mine-by-mine basis, notwithstanding the unique mix of incidental by-product production at each mine, of our operations’ relative performance on a period-by-period basis, and against the operations of our peers in the silver industry. Cash costs per ounce is conceptually understood and widely reported in the mining industry. |
|
(3) |
Gold Segment Cash Costs and AISC are calculated net of credits for realized revenues from all metals other than gold ("gold segment by-product credits"), and are calculated per ounce of gold sold. |
Q3 2024 Project Updates:
-
At
La Colorada , project capital of was directed largely to exploration and engineering on the Skarn project, and to complete the new ventilation infrastructure for the operating mine.$3.6 million -
At Huaron, project capital of
was spent on the construction of the new filter plant and filter-stack tailings storage facility, which is on schedule to be substantially completed in the fourth quarter of 2024 and then be commissioned and operational by the end of Q1 2025.$4.8 million -
At
Timmins , project capital of was spent to construct the paste plant and its associated infrastructure. Commissioning of the project commenced in October.$2.5 million -
At Jacobina, project capital of
was invested in upgrading the plant facility infrastructure and a study aimed to optimize the mine's long-term economics and sustainability. This optimization study is expected to be released in the first half of 2025.$2.5 million - At Escobal, the Guatemalan Ministry of Energy and Mines (“MEM”) appointed Mr. Luis Pacheco as Vice Minister of Sustainable Development in August. This position, responsible for overseeing the ILO 169 consultation process for the mine, had been vacant since April 29, 2024. During Q3 2024, Mr. Pacheco visited the mine along with other members of the MEM and held working meetings regarding the consultation process. The MEM has communicated to the Company that the Xinka Parliament is in the process of conducting meetings in their communities, but no new timeline has been published yet nor have any plenary activities been scheduled. The Escobal mine remains on care and maintenance and there is no date for a restart of operations.
CONSOLIDATED RESULTS
|
Three months
|
Twelve months
|
|||
Weighted average shares during period |
|
362,996 |
|
326,540 |
|
Shares outstanding end of period |
|
363,001 |
|
364,660 |
|
|
|
|
|||
|
Three months ended
|
||||
|
|
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 |
|
(1) |
Amounts differ from those originally reported in the respective quarter due to the finalization of the purchase price allocation, which was retrospectively applied. Please refer to Note 2 of the Unaudited Condensed Interim Consolidated Financial Statements for the three and nine months ended September 30, 2024 for further details. |
|
(2) |
Cost of Sales includes production costs, depreciation and amortization and royalties. |
|
(3) |
Per share amounts are based on basic weighted average common shares. |
|
(4) |
Non-GAAP measure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures. |
|
(5) |
Non-sustaining capital expenditures primarily relate to project capital that is expected to increase future production. |
|
(6) |
Metal prices stated are inclusive of final settlement adjustments on concentrate sales. |
Q3 2024 OPERATING PERFORMANCE
|
Silver Production
|
Gold Production
|
Cash Costs
|
AISC
|
Silver Segment |
|
|
|
|
|
1,329 |
0.9 |
19.59 |
22.25 |
Cerro Moro ( |
804 |
17.0 |
18.84 |
20.88 |
Huaron ( |
888 |
-- |
9.32 |
16.77 |
|
811 |
-- |
13.06 |
16.28 |
Total Silver Segment(3) |
3,833 |
17.9 |
15.88 |
19.63 |
Gold Segment |
|
|
|
|
Jacobina ( |
1 |
50.4 |
916 |
1,195 |
El Peñon ( |
995 |
26.8 |
956 |
1,314 |
|
2 |
33.9 |
1,599 |
1,912 |
Shahuindo ( |
69 |
35.9 |
960 |
1,413 |
|
12 |
22.7 |
1,412 |
1,673 |
Minera Florida ( |
115 |
19.1 |
1,824 |
2,109 |
Dolores ( |
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 |
|
|
(1) |
Non-GAAP measure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures. |
|
(2) |
|
|
(3) |
Totals may not add due to rounding. |
2024 OPERATING OUTLOOK
Please see Pan American's MD&A dated February 21, 2024, for further detail on the Company's 2024 Operating Outlook. Please also refer to the Cautionary Note Regarding Forward-Looking Statements and Information at the end of this news release.
The Company reaffirms its 2024 Operating Outlook for annual production, Cash Costs and AISC, and capital expenditures. As indicated in the Company's MD&A dated August 7, 2024, the Company expects 2024 silver and gold production to be more heavily weighted to the fourth quarter of 2024 than originally indicated in its 2024 Quarterly Operating Outlook, and annual silver production to be towards the low end of the annual guidance range.
Additionally, cash income tax payments in Q4 2024 are now expected to be between
|
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 |
Sustaining Capital Expenditures ($ millions) |
295.0 - 310.0 |
Project Capital Expenditures ($ millions) |
80.0 - 85.0 |
(1) |
Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this news release for further information on these measures. The Cash Cost and AISC forecasts assume average metal prices of |
Cash Costs, AISC, adjusted earnings, basic adjusted earnings per share, sustaining and non-sustaining capital, free cash flow, working capital, total debt and net cash are non-GAAP financial measures. Please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.
This news release should be read in conjunction with Pan American's Unaudited Condensed Interim Consolidated Financial Statements and our MD&A for the three and nine months ended September 30, 2024. This material is available on Pan American’s website at https://panamericansilver.com/invest/financial-reports-and-filings/, on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov.
CONFERENCE CALL AND WEBCAST
Date: |
November 6, 2024 |
||
Time: |
11:00 am ET (8:00 am PT) |
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Dial-in numbers: |
1-888-259-6580 (toll-free in |
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|
(+1) 416-764-8624 (international participants) |
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Conference ID: |
97750876 |
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Webcast: |
The live webcast, presentation slides and the report for Q3 2024 will be available at https://www.panamericansilver.com/invest/events-and-presentations/. An archive of the webcast will also be available for three months.
About Pan American
Pan American Silver is a leading producer of silver and gold in the
Learn more at panamericansilver.com
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Alternative Performance (Non-GAAP) Measures
In this news release, we refer to measures that are non-GAAP financial measures. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning as prescribed by IFRS as an indicator of performance, and may differ from methods used by other companies with similar descriptions. These non-GAAP financial measures include:
- Cash Costs. Pan American's method of calculating cash costs may differ from the methods used by other entities and, accordingly, Pan American's Cash Costs may not be comparable to similarly titled measures used by other entities. Investors are cautioned that Cash Costs should not be construed as an alternative to production costs, depreciation and amortization, and royalties determined in accordance with IFRS as an indicator of performance.
- Adjusted earnings and basic adjusted earnings per share. Pan American believes that these measures better reflect normalized earnings as they eliminate items that in management's judgment are subject to volatility as a result of factors, which are unrelated to operations in the period, and/or relate to items that will settle in future periods.
- All-in Sustaining Costs per silver or gold ounce sold, net of by-product credits. Pan American has adopted AISC as a measure of its consolidated operating performance and its ability to generate cash from all operations collectively, and Pan American believes it is a more comprehensive measure of the cost of operating our consolidated business than traditional cash costs per payable ounce, as it includes the cost of replacing ounces through exploration, the cost of ongoing capital investments (sustaining capital), general and administrative expenses, as well as other items that affect Pan American's consolidated earnings and cash flow.
- Total debt is calculated as the total current and non-current portions of: debt, including senior notes and amounts drawn on the SL-Credit Facility, and lease obligations. Total debt does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate the financial debt leverage of Pan American.
- Working capital is calculated as current assets less current liabilities. Working capital does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate whether Pan American is able to meet its current obligations using its current assets.
- Total available liquidity is calculated as the sum of cash and cash equivalents, Short-term Investments, and the amount available on the SL-Credit Facility. Total available liquidity does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate the liquid assets available to Pan American.
- Free cash flow is calculated as net cash generated from operating activities less sustaining capital expenditures. Free cash flow does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate the profitability of Pan American and identify capital that may be available for investment or return to shareholders.
Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of Pan American’s Q3 2024 MD&A for a more detailed discussion of these and other non-GAAP measures and their calculation.
Cautionary Note Regarding Forward-Looking Statements and Information
Certain of the statements and information in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this news release relate to, among other things: future financial or operational performance, including our estimated production of silver, gold and other metals forecasted for 2024, our estimated Cash Costs and AISC, and our sustaining and project capital expenditures in 2024; the expectation that production will be back-end loaded and anticipated benefits therefrom; the anticipated dividend payment date of November 29, 2024; the anticipated release of a study related to Jacobina in the first half of 2025, and any anticipated benefits to be derived from the study; expectations regarding the ILO 169 consultation process with respect to Escobal; future anticipated prices for gold, silver and other metals and assumed foreign exchange rates; and Pan American’s plans and expectations for its properties and operations.
These forward-looking statements and information reflect Pan American’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by Pan American, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: the impact of inflation and disruptions to the global, regional and local supply chains; tonnage of ore to be mined and processed; future anticipated prices for gold, silver and other metals and assumed foreign exchange rates; the timing and impact of planned capital expenditure projects, including anticipated sustaining, project, and exploration expenditures; the ability to satisfy the closing conditions and receive regulatory approval to complete the sale of
Pan American cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and Pan American has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the duration and effect of local and world-wide inflationary pressures and the potential for economic recessions; fluctuations in silver, gold and base metal prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets (such as the PEN, MXN, ARS, BOB, GTQ, CAD, CLP and BRL versus the USD); operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom Pan American does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in the jurisdictions where we operate, including environmental, export and import laws and regulations; changes in national and local government, legislation, taxation, controls or regulations and political, legal or economic developments in
Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near- and longer-term prospects and may not be appropriate for other purposes. The Company does not intend, nor does it assume any obligation, to update or revise forward-looking statements or information to reflect changes in assumptions or in circumstances or any other events affecting such statements or information, other than as required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241104527879/en/
For more information:
Siren Fisekci
VP, Investor Relations & Corporate Communications
Ph: 604-806-3191
Email: ir@panamericansilver.com
Source: Pan American Silver
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