Pan American Silver Announces Unaudited Net Earnings of $20.0 million for Q1 2017

Resource Investing News

Pan American Silver (NASDAQ: PAAS; TSX: PAAS) (“Pan American”, or the “Company”) today reported unaudited results for the first quarter ended March 31, 2017 (“Q1 2017”).Michael Steinmann, company President and CEO commented: “Pan American continued to deliver strong results in the first quarter of 2017, with quarter-over-quarter growth in net earnings and cash costs down 23% …

“Pan American continued to deliver strong results in the first quarter of 2017, with quarter-over-quarter growth in net earnings and cash costs down 23% to $6.18 per ounce. The expansion of our Dolores mine is tracking well with commissioning of the pulp agglomeration plant expected by mid-year. At our La Colorada mine, we are already realizing the benefit of higher throughput rates from the expansion, which is now substantially complete.”

Highlights for Q1 2017:

Silver production was 6.20 million ounces compared with 6.42 million ounces in the first quarter of 2016 (“Q1 2016”). As anticipated, the decline primarily reflects Alamo Dorado, where processing of stockpiled material was essentially completed in Q1 2017. The Alamo Dorado mine has now transitioned to the reclamation phase. Higher throughput rates from the expansion project at La Colorada drove a 19% increase in silver production at that mine.
Gold production was 37.7 thousand ounces compared with 41.2 thousand ounces in Q1 2016. The decline reflects lower ore grades, as expected, at Manantial Espejo and Alamo Dorado.
Consolidated cash costs per payable ounce of silver, net of by-product credits (“Cash Costs”) of $6.18 in Q1 2017 declined 23% from $8.03 recorded in Q1 2016, reflecting an increase in by-product credits from improved prices for all by-product metals.
Consolidated All-In Sustaining Costs per Silver Ounce Sold (“AISCSOS”) were $12.63 in Q1 2017 compared with $13.12 in Q1 2016. The decline in AISCSOS reflects increased by-product credits from higher by-product metal prices, decreased direct selling costs and sustaining capital expenditures, and increased volumes of silver sold in Q1 2017. These factors were partially offset by an increase in production costs, which includes $14.6 million for inventory net realizable value adjustments.
Revenue of $198.7 million was 26% higher than the $158.3 million reported in Q1 2016, largely as a result of higher metal prices. Realized silver prices averaged $17.44 per ounce in Q1 2017, up approximately 17% over Q1 2016.
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