All 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.
Pan American Silver Corp. (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.
"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 $1.6 billion of total available liquidity to provide solid shareholder returns through dividends and opportunistic share buybacks, while pursuing our strategic initiatives."
Q4 2024 and FY 2024 HIGHLIGHTS:
Q4 2024 Project Updates:
2025 OPERATING OUTLOOK
Pan American reports mines in either a Silver Segment or a Gold Segment, with AISC calculated on a by-product basis; specifically, by-product metal sales are credited against the operating costs to produce the primary metal for that segment.
The following estimates contain forward-looking information about expected future events and financial and operating performance of Pan American. Readers should refer to the risks and assumptions set out in the "Cautionary Note Regarding Forward-Looking Statements and Information" at the end of this news release. Pan American may revise forecasts during the year to reflect actual results to date and those anticipated for the remainder of the year.
2025 Silver and Gold Production and AISC Forecasts:
Silver Production | Gold Production | AISC | |
(million ounces) | (thousand ounces) | ($ per ounce) (1) | |
Silver Segment: | |||
La Colorada (Mexico) | 5.50 - 5.80 | 2 | 20.00 - 22.00 |
Cerro Moro (Argentina) | 2.80 - 2.90 | 77 - 87 | 6.00 - 10.00 |
Huaron (Peru) | 3.70 - 3.90 | — | 16.00 - 17.50 |
San Vicente (Bolivia) (2) | 2.70 - 2.90 | — | 19.00 - 20.50 |
Total | 14.70 - 15.50 | 79 - 89 | 16.25 - 18.25 |
Gold Segment: | |||
Jacobina (Brazil) | — | 185 - 195 | 1,275 - 1,375 |
El Peñon (Chile) | 3.70 - 3.80 | 120 - 130 | 1,185 - 1,285 |
Timmins (Canada) | — | 120 - 130 | 2,100 - 2,200 |
Shahuindo (Peru) | 0.25 | 125 - 135 | 1,735 - 1,835 |
Minera Florida (Chile) | 0.45 | 78 - 90 | 1,700 - 1,850 |
Dolores (Mexico) | 0.90 - 1.00 | 28 - 31 | 850 - 1,000 |
Total | 5.30 - 5.50 | 656 - 711 | 1,525 - 1,625 |
Total Production | 20.00 - 21.00 | 735 - 800 | n/a |
2025 Quarterly Operating Outlook:
Q1 | Q2 | Q3 | Q4 | FY 2025 | |
Silver Production (million ounces) | 4.75 - 5.00 | 4.95 - 5.20 | 5.10 - 5.35 | 5.20 - 5.45 | 20.00 - 21.00 |
Gold Production (thousand ounces) | 175 - 189 | 179 - 194 | 189 - 205 | 192 - 212 | 735 - 800 |
Silver Segment AISC (1) | 21.00 - 22.25 | 19.50 - 21.25 | 14.25 - 16.25 | 10.25 - 13.00 | 16.25 - 18.25 |
Gold Segment AISC (1) | 1,575 - 1,675 | 1,550 - 1,650 | 1,500 - 1,600 | 1,500 - 1,600 | 1,525 - 1,625 |
| (1) | AISC is a non-GAAP measure. Please refer to the "Alternative Performance (Non-GAAP) Measures" section of the Management's Discussion and Analysis ("MD&A") for the period ended December 31, 2024 for further information on this measure. The AISC forecasts assume average metal prices of $30.00/oz for silver, $2,650/oz for gold, $3,000/tonne ($1.36/lb) for zinc, $2,000/tonne ($0.91/lb) for lead, and $9,500/tonne ($4.31/lb) for copper; and average annual exchange rates relative to 1 USD of 20.00 for the Mexican peso ("MXN"), 3.75 for the Peruvian sol ("PEN"), 1,177 for the Argentine peso ("ARS"), 7.00 for the Bolivian boliviano ("BOB"), $1.38 for the Canadian dollar ("CAD"), 950.00 for the Chilean peso ("CLP") and 5.75 for the Brazilian real ("BRL"). | |
(2) | San Vicente data represents Pan American's 95.0% interest in the mine's production. |
2025 Consolidated Base Metal Production Forecasts:
(thousand tonnes) | Zinc | Lead | Copper |
42 - 45 | 21 - 22 | 4 |
2025 Expenditures Forecast:
($ millions) | |
Sustaining Capital | 270.0 - 285.0 |
Project Capital | 90.0 - 100.0 |
Total Capital Expenditures | 360.0 - 385.0 |
Reclamation Expenditures | 28.0 - 34.5 |
Care & Maintenance | 20.5 - 24.0 |
General and Administrative | 80.0 - 85.0 |
Exploration and Project Development | 15.0 - 20.0 |
Income Tax Payments | 240.0 - 260.0 |
Depreciation and Amortization | 450.0 - 500.0 |
2025 Planned Project Capital Expenditures:
CONFERENCE CALL AND WEBCAST TO DISCUSS THE 2024 FINANCIAL RESULTS AND 2025 OPERATING OUTLOOK
Date: February 20, 2025
Time: 11:00 am ET (8:00 am PT)
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=RKB97YTl [event.choruscall.com]
Conference Call: Participants can register for the conference call at: https://dpregister.com/DiamondPassRegistration/register?confirmationNumber=10196160&linkSecurityString=fe574774c0
Upon registration, you will receive the dial-in details and a unique PIN to access the call. This process will bypass the live operator and avoid the queue. Registration will remain open until the end of the live conference call. Those without internet access or who prefer to speak with an operator may dial:
1-844-763-8274 (toll-free in Canada and the U.S.)
1-647-484-8814 (international participants)
Visit panamerican silver . com to access the webcast, presentation slides and the MD&A for the period ended December 31, 2024. An archive of the webcast will also be available for three months at panamericansilver.com .
CONSOLIDATED RESULTS
December 31, | December 31, | |||||||||
Weighted average shares during period (thousands) | 363,361 | 326,540 | ||||||||
Shares outstanding end of period (thousands) | 363,041 | 364,660 | ||||||||
Three months ended | Year ended | |||||||||
2024 | 2023 | 2024 | 2023 | |||||||
FINANCIAL | ||||||||||
Revenue | $ | 815.1 | $ | 669.6 | $ | 2,818.9 | $ | 2,316.1 | ||
Cost of Sales (1) | $ | 630.2 | $ | 604.7 | $ | 2,270.4 | $ | 2,019.3 | ||
Mine operating earnings | $ | 184.9 | $ | 64.9 | $ | 548.5 | $ | 296.8 | ||
Net earnings (loss) | $ | 107.8 | $ | (67.8 | ) | $ | 112.7 | $ | (104.9 | ) |
Basic earnings (loss) per share (2) | $ | 0.30 | $ | (0.19 | ) | $ | 0.31 | $ | (0.32 | ) |
Adjusted earnings (loss) (3) | $ | 126.9 | $ | (16.3 | ) | $ | 286.7 | $ | 39.3 | |
Basic adjusted earnings (loss) per share (2)(3) | $ | 0.35 | $ | (0.04 | ) | $ | 0.79 | $ | 0.12 | |
Net cash generated from operating activities | $ | 274.1 | $ | 167.4 | $ | 724.1 | $ | 450.2 | ||
Net cash generated from operating activities before changes in working capital (3) | $ | 279.9 | $ | 125.5 | $ | 851.9 | $ | 397.0 | ||
Sustaining capital expenditures (3) | $ | 77.9 | $ | 92.6 | $ | 279.0 | $ | 288.5 | ||
Non-sustaining capital expenditures (3)(4) | $ | 21.5 | $ | 41.8 | $ | 101.4 | $ | 141.3 | ||
Cash dividend per share | $ | 0.10 | $ | 0.10 | $ | 0.40 | $ | 0.40 | ||
PRODUCTION | ||||||||||
Silver (thousand ounces) | 6,018 | 4,835 | 21,061 | 20,437 | ||||||
Gold (thousand ounces) | 224 | 268 | 892 | 883 | ||||||
Zinc (thousand tonnes) | 14.1 | 9.4 | 45.1 | 38.8 | ||||||
Lead (thousand tonnes) | 6.1 | 4.2 | 20.8 | 18.7 | ||||||
Copper (thousand tonnes) | 1.0 | 1.4 | 5.2 | 5.0 | ||||||
CASH COSTS (3) ($/ounce) | ||||||||||
Silver Segment (5) | 14.06 | 19.31 | 14.30 | 13.07 | ||||||
Gold Segment (5) | 1,223 | 1,096 | 1,203 | 1,113 | ||||||
AISC (3) ($/ounce) | ||||||||||
Silver Segment (5) | 19.80 | 26.55 | 18.70 | 18.17 | ||||||
Silver Segment (excl. NRV) (5) | 19.88 | 26.28 | 18.98 | 17.91 | ||||||
Gold Segment (5) | 1,463 | 1,411 | 1,530 | 1,371 | ||||||
Gold Segment (excl. NRV) (5) | 1,521 | 1,415 | 1,501 | 1,416 | ||||||
AVERAGE REALIZED PRICES (6) | ||||||||||
Silver ($/ounce) | 30.87 | 22.33 | 28.06 | 22.94 | ||||||
Gold ($/ounce) | 2,666 | 1,980 | 2,388 | 1,951 | ||||||
Zinc ($/tonne) | 3,060 | 2,493 | 2,828 | 2,656 | ||||||
Lead ($/tonne) | 1,967 | 2,121 | 2,058 | 2,146 | ||||||
Copper ($/tonne) | 9,019 | 8,146 | 9,260 | 8,475 | ||||||
| (1) | Cost of Sales includes production costs, depreciation and amortization and royalties. | |
| (2) | Per share amounts are based on basic weighted average common shares. | |
| (3) | Non-GAAP measure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures. | |
| (4) | Non-sustaining capital expenditures primarily relate to project capital that is expected to increase future production. | |
| (5) | Silver Segment Cash Costs and AISC are calculated net of credits for realized revenues from all metals other than silver ("silver segment by-product credits"), and are calculated per ounce of silver sold. 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. | |
| (6) | Metal prices stated are inclusive of final settlement adjustments on concentrate sales. |
Fourth Quarter Consolidated Income Statements
(unaudited)
Three months ended | ||||||
2024 | 2023 | |||||
Revenue | $ | 815.1 | $ | 669.6 | ||
Cost of sales | ||||||
Production costs | (416.2 | ) | (441.3 | ) | ||
Depreciation and amortization | (188.7 | ) | (143.1 | ) | ||
Royalties | (25.3 | ) | (20.3 | ) | ||
(630.2 | ) | (604.7 | ) | |||
Mine operating earnings | 184.9 | 64.9 | ||||
General and administrative | (6.3 | ) | (18.5 | ) | ||
Exploration and project development | (0.9 | ) | (3.8 | ) | ||
Mine care and maintenance | (6.9 | ) | (7.9 | ) | ||
Foreign exchange gains (losses) | 18.9 | (7.9 | ) | |||
Impairment charges | — | (36.2 | ) | |||
Derivative (losses) gains | (19.0 | ) | 7.1 | |||
Gains (losses) on sale of mineral properties, plant and equipment | 2.5 | (0.4 | ) | |||
Gains from sale of subsidiaries | 137.4 | — | ||||
Transaction and integration costs | — | (0.3 | ) | |||
Change in mine reclamation obligations | (53.9 | ) | (13.8 | ) | ||
Other expense | (2.1 | ) | (10.0 | ) | ||
Earnings (loss) from operations | 254.6 | (26.8 | ) | |||
Investment (loss) income | (5.9 | ) | 3.3 | |||
Interest and finance expense | (22.7 | ) | (24.5 | ) | ||
Earnings (loss) before income taxes | 226.0 | (48.0 | ) | |||
Income tax expense | (118.2 | ) | (19.8 | ) | ||
Net earnings (loss) | $ | 107.8 | $ | (67.8 | ) | |
Net earnings (loss) attributable to: | ||||||
Equity holders of the Company | 107.6 | (68.0 | ) | |||
Non-controlling interests | 0.2 | 0.2 | ||||
$ | 107.8 | $ | (67.8 | ) | ||
Other comprehensive earnings (loss), net of taxes | ||||||
Items that will not be reclassified to net earnings (loss) | ||||||
Unrealized (loss) gain on long-term investment | (0.3 | ) | 0.5 | |||
Remeasurement of retirement benefit plan | (0.2 | ) | (2.6 | ) | ||
Income tax expense related to long-term investments | — | (0.9 | ) | |||
Total other comprehensive loss | $ | (0.5 | ) | $ | (3.0 | ) |
Total comprehensive earnings (loss) | $ | 107.3 | $ | (70.8 | ) | |
Total comprehensive earnings (loss) attributable to: | ||||||
Equity holders of the Company | $ | 107.1 | $ | (71.0 | ) | |
Non-controlling interests | 0.2 | 0.2 | ||||
$ | 107.3 | $ | (70.8 | ) | ||
Earnings (loss) per share attributable to common shareholders | ||||||
Basic earnings (loss) per share | $ | 0.30 | $ | (0.19 | ) | |
Diluted earnings (loss) per share | $ | 0.30 | $ | (0.19 | ) | |
Weighted average shares outstanding (in 000's) Basic | 363,016 | 364,678 | ||||
Weighted average shares outstanding (in 000's) Diluted | 363,113 | 364,678 | ||||
Fourth Quarter Consolidated Statements of Cash Flows
(unaudited)
Three months ended | ||||||
2024 | 2023 | |||||
Operating activities | ||||||
Net earnings (loss) for the period | $ | 107.8 | $ | (67.8 | ) | |
Income tax expense | 118.2 | 19.8 | ||||
Depreciation and amortization | 188.7 | 143.1 | ||||
Impairment charges | — | 36.2 | ||||
Net realizable value inventory recovery | (12.3 | ) | (0.2 | ) | ||
Gains from sale of subsidiaries | (137.4 | ) | — | |||
Accretion on closure and decommissioning provision | 7.5 | 8.2 | ||||
Change in mine reclamation obligations | 53.9 | 13.8 | ||||
Investment loss (gain) | 5.9 | (3.3 | ) | |||
Interest paid | (9.3 | ) | (11.1 | ) | ||
Interest expense | 12.3 | 13.2 | ||||
Interest received | 3.5 | 4.9 | ||||
Income taxes paid | (65.0 | ) | (32.4 | ) | ||
Other operating activities | 6.1 | 1.1 | ||||
Net change in non-cash working capital items | (5.8 | ) | 41.9 | |||
$ | 274.1 | $ | 167.4 | |||
Investing activities | ||||||
Cash disposed in sale of subsidiaries | $ | (16.2 | ) | $ | — | |
Cash proceeds from sale of subsidiaries | 306.6 | 45.5 | ||||
Payments for mineral properties, plant and equipment | (85.4 | ) | (118.7 | ) | ||
Proceeds from disposition of mineral properties, plant and equipment | 2.1 | 0.9 | ||||
Net (payments) proceeds from derivatives | (5.3 | ) | 1.7 | |||
$ | 201.8 | $ | (70.6 | ) | ||
Financing activities | ||||||
Proceeds from common shares issued | $ | 0.5 | $ | — | ||
Distributions to non-controlling interests | — | (0.4 | ) | |||
Dividends paid | (36.3 | ) | (36.4 | ) | ||
Net (repayments) proceeds from debt | (1.7 | ) | 10.4 | |||
Payment of equipment leases | (12.2 | ) | (19.1 | ) | ||
$ | (49.7 | ) | $ | (45.5 | ) | |
Effects of exchange rate changes on cash and cash equivalents | (2.4 | ) | 0.8 | |||
Increase in cash and cash equivalents | 423.8 | 52.1 | ||||
Cash and cash equivalents at the beginning of the period | 439.0 | 347.5 | ||||
Cash and cash equivalents at the end of the period | $ | 862.8 | $ | 399.6 | ||
About Pan American Silver
Pan American is a leading producer of precious metals in the Americas, operating silver and gold mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile and Brazil. We also own the Escobal mine in Guatemala that is currently not operating, and we hold interests in exploration and development projects. We have been operating in the Americas for over three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C. and our shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "PAAS".
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:
Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of Pan American's MD&A for the period ended December 31, 2024 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 2025, our estimated AISC, and our sustaining and project capital expenditures in 2025; the expectation that gold and silver production will be weighted to the second half of 2025, and any anticipated benefits therefrom; the anticipated dividend payment date of March 14, 2025; expectations regarding strategic initiatives and capital projects, and any anticipated benefits therefrom; the anticipated completion of a study related to Jacobina, and any anticipated benefits to be derived from the study; expectations regarding higher development rates at La Colorada in 2025 relative to 2024; expectations regarding our participation in the ILO 169 consultation process with respect to Escobal; 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 ongoing impact and timing of the court-mandated ILO 169 consultation process in Guatemala; risks related to increased barriers to trade, including tariffs and duties; ore grades and recoveries; capital, decommissioning and reclamation estimates; our mineral reserve and mineral resource estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions at any of our operations; no unplanned delays or interruptions in scheduled production; all necessary permits, licenses and regulatory approvals for our operations are received in a timely manner; our ability to secure and maintain title and ownership to mineral properties and the surface rights necessary for our operations, including contractual rights from third parties and adjacent property owners; whether Pan American is able to maintain a strong financial condition and have sufficient capital, or have access to capital through our corporate credit facility or otherwise, to sustain our business and operations; and our ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.
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; 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 Canada, the United States, Mexico, Peru, Argentina, Bolivia, Guatemala, Chile, Brazil or other countries where Pan American may carry on business, including legal restrictions relating to mining, risks relating to expropriation and risks relating to the constitutional court-mandated ILO 169 consultation process in Guatemala; diminishing quantities or grades of mineral reserves as properties are mined; increased competition in the mining industry for equipment and qualified personnel; and those factors identified under the caption "Risks Related to Our Business" in Pan American's most recent form 40-F and Annual Information Form filed with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities, respectively.
Although Pan American 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 undue 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. Pan American does not intend, nor does it assume any obligation to update or revise forward-looking statements or information, whether as a result of new information, changes in assumptions, future events or otherwise, except to the extent required by applicable law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250219536567/en/
For more information contact:
Siren Fisekci
VP, Investor Relations & Corporate Communications
Ph: 604-806-3191
Email: ir@panamericansilver.com
News Provided by Business Wire via QuoteMedia
Nevertheless, it’s definitely possible to track down different opinions on the topic. Market participants interested in investing in silver would do well to keep these ideas top of mind as they try to determine where the spot price may move.
It’s useful to look at silver's past price performance when trying to determine when silver will go up.
As mentioned, silver has had ups and downs over the past year, although it has largely been trending higher.
Early in 2024, silver fell to a low of US$22.08 per ounce on January 21, and traded mostly flat for much of the remainder of the first quarter before rising to a Q1 high of US$25.62 on March 20. While it had long seemed like silver would never go up above US$30, the upward momentum in the second quarter sent the silver price surging by nearly 40 percent to a 12 year high of US$32.33 per ounce on May 20.
In Q3 2024, the price of silver slid down below the US$27 mark to a low of US$26.64 on August 7, tracking its industrial cousin copper, but pulled back above US$30 in mid-September.
Moving into Q4, in October the price of silver continued to the upside, brought along by upward momentum in the gold price as the yellow metal repeatedly broke record highs. By October 22, the precious metal reached US$34.72 per ounce, its highest level in 12 years.
This rally came in the lead-up to the US election while Middle East tensions were escalating and the possibility of coming Fed interest rate cuts drove safe-haven demand for precious metals. Positive sentiment for stronger industrial demand was also supportive of silver prices.
However, silver encountered resistance in the lead up to the US presidential election as investors began to favor interest-bearing assets more. By November 27, the price of silver had retreated to a quarterly low of US$30.11 per ounce.
By December 11, the metal was trading at US$31.88 in anticipation of a rate cut by the Federal Reserve. The Fed’s rate cut of 25 basis points and hawkish sentiment toward any future rate cuts spurred profit-taking on the part of investors, sending the silver price down to US$29.69 per ounce on December 19.
Silver's performance from February 9 2024, to February 10, 2025.
Chart via Investing News Network.
So far in the first quarter of 2025, silver is tracking gold higher on rising geopolitical concerns, as well as persistent inflationary pressures brought on by Trump’s aggressive tactics with tariffs and the risk of the Fed keeping interest rates higher for longer.
As of February 7, 2025, the price of silver had risen nearly 10 percent since the beginning of the year.
Now that the silver price is trading above US$30, investors wondering if now is a good time to sell silver or buy it should evaluate its current fundamentals. Global geopolitical events and rate changes from the US Federal Reserve are key factors to watch when it comes to silver.
Growing expectations that the Fed is not keen on lowering interest rates further and rising geopolitical uncertainties are responsible for this latest peak in silver prices. Additionally, macroeconomic conditions are supporting silver industrial demand.
Silver’s potential to continue its upward trajectory will ultimately depend on the ability of these factors to support prices above the critical US$30 level.
What do we know about silver supply and silver demand? Many market watchers look to the World Silver Survey for information; it is published each year by the Silver Institute using data provided by Metals Focus. While we await the 2025 World Silver Survey publication expected in April, we can take a look at the Silver Institute's January 2025 silver market forecast, backed by Metals Focus research.
The Silver Institute expects to see the silver market record its fifth consecutive supply deficit in 2025 as industrial demand for silver is projected to reach record volumes.
"Concerns about US President Donald Trump’s anticipated tariff policies have fueled short covering and deliveries of silver (and other precious metals) into CME warehouses since late 2024,” the firm stated. “This, coupled with rising economic and geopolitical uncertainties, has underpinned a healthy recovery in silver prices since the start of 2025.”
Overall silver demand is forecast to reach 1.2 billion ounces, driven by both industrial applications and retail investment. Demand-side growth will likely be tempered by weakness in the jewelry and silverware sectors.
Looking more specifically at silver industrial fabrication, this segment is expected to see 3 percent growth for the year, bringing volumes past the 700 million ounce mark for the first time. The solar photovoltaics, automotive industry and consumer electronics are seen as the biggest drivers of this demand growth.
In terms of physical silver investment, forecasters expect to see a 3 percent jump, especially on demand from Europe and North America.
On the supply side, the Silver Institute’s outlook includes 3 percent growth in total global silver supply in 2025 to reach an 11 year high of 1.05 billion ounces. This gain is expected to come from a seven-year high in silver mine production at 844 million ounces as output increases out of both existing and new mines, particularly in China, Canada, Chile and Morocco.
Silver recycling is expected to increase by 5 percent to a 13-year high of more than 200 million ounces.
Despite this growth on the supply side, the silver market is forecast to post a deficit at 149 million ounces in 2025.
Over the past year, the Investing News Network (INN) has spoken with several experts about the silver price, and they shared the reasons they were bullish on silver's outlook.
In an April 2024 interview with INN, longtime resource sector investor Don Hansen said he is optimistic that signs are pointing to a precious metals bull market.
"The interesting thing is that most of the gains in these bull markets is in the last two or three years (of the bull market). And I think we are at the beginning of that period, which is why I think there's so much potential for gold and silver investors," Hansen told INN, and encouraged investors to consider adding gold and silver mining stocks to their portfolios.
In an April 9 email to INN, Peter Krauth, editor of Silver Stock Investor and author of "The Great Silver Bull," pointed to silver's performance compared to gold during the first quarter of 2024.
“Silver also typically lags gold, then catches up and surpasses it. We’re starting to see that happen in spades right now. Since the end of February, gold is up about 15 percent, while silver is up about 22 percent. Those are breathtaking gains in just a matter of weeks,” he said.
Moving forward, Krauth sees decreasing silver inventories at the COMEX, London Bullion Market Association and the Shanghai Gold Exchange as a major driver of the silver price in 2024. However, silver’s industrial side is another factor to watch this year. Concerns over a looming recession may dampen gains; on the flip side, interest rate cuts may spur economic growth and provide upside for the silver price.
INN spoke with Krauth again on May 24, after the silver price had rallied above US$30 and held there. He said that the gold price's climb that began three months ago spurred the silver price's own move. While it has since fallen just below US$30, Krauth wasn't concerned about that scenario.
"Maybe we'll see a test of US$28, maybe even sort of a washout test as low as US$26. But I don't see much weaker than that ... (and) if we do drop below, ultimately we will regain US$30 and that will become a new floor," he said.
On May 28, INN spoke with Chris Marcus, founder of Arcadia Economics and author of "The Big Silver Short," about his outlook for silver after it broke through US$30.
"I think silver in the long term — everything that we've talked about is why it's still to me a good long-term bet," Marcus said. "In the short term I would expect you're going to see it pretty darn volatile. I mean, is there a chance for US$50 this year? There are scenarios in which that could happen, but I don't know that I would say that we're in a guarantee of that. But certainly with some of the things that are building beneath the surface, yeah it's possible."
Speaking with INN in October 2024, Randy Smallwood of Wheaton Precious Metals (TSX:WPM,NYSE:WPM) said that we're not likely to see a real breakout in the silver price until Western retail demand heats up. Looking at the fundamentals, he sees this as a nearer-term possibility. "I think it's really only a matter of time until that retail market wakes up in the silver space," he said.
David Morgan, publisher of the Morgan Report, shared his 2025 outlook for silver with INN in November 2024. He thinks the white metal could reach US$40 per ounce, and continue its upward trajectory in 2026.
Mind Money CEO Julia Khandoshko told INN in December 2024 that she sees silver potentially reaching US$35 in the coming months as the supply and demand gap widens. While the white metal could then pull back to the US$30 level, she believes silver will make another run and potentially surpass US$50 per ounce.
Peter Krauth, author of "The Great Silver Bull" and editor of the Silver Stock Investor, is also looking for silver to reach US$35 in the first quarter of 2025, with the metal possibly hitting US$40 or more later in the year.
However, he cautions investors that broader macroeconomic trends could put a damper on silver price gains. “There is a serious risk of significant correction in the broader markets and of a recession. A broad market selloff could bleed into silver stocks, even if only temporarily,” Krauth said.
For investors, a key point to remember is that the resource space operates cyclically — while a commodity like silver can experience price rises and falls, ultimately what goes up must come down and vice versa. The advice to “buy low and sell high” is repeated often for a reason, and though it’s nigh impossible to predict market bottoms, low points in the cycle can be a good time to flex your purchasing power.
This is an updated version of an article first published by the Investing News Network in 2015.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
TSX: SIL | NYSE American: SILV
SilverCrest Metals Inc. ("SilverCrest" or the "Company") is pleased to announce the completion of the previously announced plan of arrangement (the "Arrangement") involving the Company and Coeur Mining, Inc. ("Coeur"), pursuant to which Coeur indirectly, among other things, acquired all of the issued and outstanding SilverCrest shares (the "SilverCrest Shares").
Pursuant to the Arrangement, SilverCrest shareholders were entitled to receive 1.6022 shares of Coeur common stock for each SilverCrest Share held (the "Consideration"). The SilverCrest Shares are expected to be delisted from the Toronto Stock Exchange and the NYSE American within two to three business days following the date hereof. SilverCrest will also apply to cease to be a reporting issuer in the applicable jurisdictions of Canada in which it is currently a reporting issuer.
Further details of the Arrangement are set out in SilverCrest's management information circular dated as of January 8, 2025 (the "Circular") and related continuous disclosure documents, which are available on SEDAR+ at www.sedarplus.ca under SilverCrest's profile and on EDGAR at www.sec.gov . Shareholders are reminded to review the Circular in respect of the procedure for receiving the Consideration for their SilverCrest Shares. Registered shareholders (your SilverCrest Shares are held by you in physical form or you have a direct registration system advice) must complete, sign and return the letter of transmittal, along with their share certificate(s) or DRS advice(s), to Computershare Investor Services Inc., the depositary for the Arrangement. Non-registered shareholders (your SilverCrest Shares in a held with a broker, bank or other intermediary) should contact their intermediaries for instructions and assistance in receiving the Consideration for such SilverCrest Shares.
If any shareholder has questions, please contact Computershare Investor Services Inc., at 1-800-564-6253 ( North America toll free) or 1-514-982-7555 (outside North America ), or by email at corporateactions@computershare.com .
Forward-Looking Statements
This news release contains "forward-looking statements" and "forward-looking information" (collectively "forward-looking statements") within the meaning of applicable Canadian and United States securities legislation. The words "potential", "expected" and similar expressions or other words of similar meaning, and the negatives thereof, are intended to identify forward-looking statements. These include, without limitation, statements with respect to the expected timing of delisting from stock exchanges and SilverCrest's application to cease to be a reporting issuer in the applicable jurisdictions of Canada in which it is currently a reporting issuer .
These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those anticipated, including, but not limited to, the risk of changes in governmental regulations or enforcement practices; the risks of mining activities; and the fact that operating costs and business disruption may be greater than expected following the completion of the Arrangement. Expectations regarding business outlook, including changes in revenue, pricing, capital expenditures, cash flow generation, strategies for the combined company's operations, gold and silver market conditions, legal, economic and regulatory conditions, and environmental matters are only forecasts regarding these matters.
Additional factors that could cause results to differ materially from those described above can be found in the Circular and SilverCrest's annual information form for the year ended December 31, 2023, which are filed with the SEC and on SEDAR+ and available from SilverCrest's website at www.silvercrestmetals.com under the "Investors" tab, and in other documents SilverCrest files with the SEC or on SEDAR+. All forward-looking statements speak only as of the date they are made and are based on information available at that time. SilverCrest does not assume any obligation to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements were made or to reflect the occurrence of unanticipated events except as required by applicable securities laws. As forward-looking statements involve significant risks and uncertainties, caution should be exercised against placing undue reliance on such statements.
SOURCE SilverCrest Metals Inc.
View original content: http://www.newswire.ca/en/releases/archive/February2025/14/c1840.html
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First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce the Company's consolidated 2025 production and cost guidance for the Company's four producing underground mines in Mexico, namely the Cerro Los Gatos Silver Mine (the Company holds a 70% interest in the Los Gatos Joint Venture that owns the mine), the Santa Elena SilverGold Mine, the San Dimas SilverGold Mine, and the La Encantada Silver Mine. The Company will be holding a conference call with management at 8:30 a.m. (PT) on Thursday, February 20, 2025, to discuss First Majestic's 2024 financial results and 2025 production and cost guidance.
2025 PRODUCTION GUIDANCE
In 2025, the Company expects to achieve total attributable production from its four operating mines in Mexico of between 27.8 to 31.2 million silver equivalent ("AgEq") ounces, including 13.6 to 15.3 million ounces of silver. The increase in forecasted silver production compared to 2024 is due to the addition of attributable production from the Cerro Los Gatos Silver Mine as a result of the Company's acquisition of Gatos Silver, Inc. on January 16, 2025, as well as an increase in silver production from Santa Elena, and from La Encantada, following a return to normal operations at La Encantada in the fourth quarter of 2024.
A mine-by-mine breakdown of the 2025 production guidance is included in the table below. The Company reports cost guidance to reflect cash costs and all-in sustaining costs ("AISC") on a per AgEq attributable payable ounce. The metal price and foreign currency assumptions that were used to calculate the numbers below were: silver: $29.00/oz, gold: $2,500/oz, lead: $0.95/lb., zinc: $1.25/lb. and MXN:USD 19.5:1.
2025 Production Guidance
| Operation | Silver Oz (M) | Gold Oz (k) | Lead Lbs (M) | Zinc Lbs (M) | Silver Eqv. Oz (M) | Cash Cost ($ per AgEq Oz) | AISC ($ per AgEq Oz) |
| Los Gatos, Mexico (70%) | 5.0 - 5.6 | 3 - 4 | 29 - 32 | 47 - 53 | 8.4 - 9.4 | 11.98 - 12.56 | 15.03 - 15.92 |
| Santa Elena, Mexico | 1.6 - 1.8 | 71 - 79 | - | - | 7.7 - 8.6 | 14.91 - 15.71 | 18.60 - 19.79 |
| San Dimas, Mexico | 4.3 - 4.8 | 55 - 61 | - | - | 9.0 - 10.1 | 13.28 - 14.04 | 17.86 - 19.09 |
| La Encantada, Mexico | 2.7 - 3.1 | - | - | - | 2.7 - 3.1 | 20.16 - 21.32 | 25.30 - 26.98 |
| Operations Total | 13.6 - 15.3 | 129 - 144 | 29 - 32 | 47 - 53 | 27.8 - 31.2 | $14.10 - $14.86 | $18.17 - $19.35 |
| | |||||||
| Corporate | |||||||
| Corp. G&A and Services | - | - | - | - | - | - | 1.72 - 1.92 |
| Total Consolidated | 13.6 - 15.3 | 129 - 144 | 28.7 - 32.0 | 47.3 - 52.7 | 27.9 - 31.1 | $14.10 - $14.86 | $19.89 - $21.27 |
The Company is projecting its consolidated 2025 AISC to be within a range of $19.89 to $21.27 on a per attributable payable AgEq ounce basis. Excluding non-cash items, the Company anticipates its 2025 AISC to be within a range of $19.35 to $20.67 per attributable payable AgEq ounce. An itemized AISC cost table is provided below.
| All-In Sustaining Cost Calculation | FY 2025 ($ per AgEq oz) |
| Total Cash Costs per Payable Equivalent Silver Ounce | 14.10 - 14.86 |
| General and Administrative Costs | 1.32 - 1.47 |
| Sustaining Development Costs | 0.94 - 1.00 |
| Sustaining Property, Plant and Equipment Costs | 1.75 - 1.96 |
| Profit Sharing | 0.70 - 0.78 |
| Lease Payments | 0.54 - 0.60 |
| Share-based Payments (non-cash) | 0.40 - 0.45 |
| Accretion and Reclamation Costs (non-cash) | 0.14 - 0.15 |
| All-In Sustaining Costs (AgEq Oz) | 19.89 - 21.27 |
| All-In Sustaining Costs: (AgEq Oz excluding non-cash items) | 19.35 - 20.67 |
CAPITAL INVESTMENTS IN 2025
In 2025, the Company plans to invest approximately $182 million in capital expenditures consisting of $80 million for sustaining activities and $102 million for expansionary projects. This represents a 34% increase compared to the revised 2024 capital expenditures guidance driven largely by the addition of the attributable capital expenditures of the Cerro Los Gatos Silver Mine and is aligned with the Company's future growth strategy underpinned by exploration and development activities at Santa Elena and San Dimas.
Capital Guidance for 2025
| Area | Sustaining ($M) | Expansionary ($M) | Total ($M) |
| Underground Development | $28 | $46 | $74 |
| Exploration | - | $49 | $49 |
| Property, Plant and Equipment | $51 | $5 | $56 |
| Corporate Projects | $1 | $2 | $3 |
| Total | $80 | $102 | $182 |
The 2025 annual guidance includes total capital investments of $74 million for underground development; $49 million in exploration; $56 million towards property, plant and equipment; and $3 million towards corporate innovation projects. Management may revise the guidance during the year to reflect actual and anticipated changes in metal prices or to the business. There can be no assurance that cost estimates related to the Company's 2025 guidance will prove to be accurate. For further details regarding risks related to the allocation of capital by the Company, see the section in the Company's most recently filed Annual Information Form ("AIF") entitled "Risk Factors - Financial Risks - Allocation of Capital - Sustaining and Expansionary Capital".
The Company is planning approximately 270,000 metres ("m") of exploration drilling in 2025, representing a significant increase compared to the 182,932 m completed in 2024. The 2025 drilling program is expected to consist of:
At San Dimas, approximately 112,000 m of drilling is planned with infill, step-out and exploratory holes focused on near mine and brownfield targets including major ore controlling structures in the West, Central and Sinaloa blocks. Exploration efforts represent a balanced approach to adding Inferred Resources along known veins, converting Inferred to Indicated Resources and identifying new veins in locations where post mineral cover has deferred work to date. Additionally, the exploration team anticipates returning to the Tayoltita and Santa Rita areas where little to no exploration has taken place in recent years.
At Santa Elena, approximately 57,000 m of drilling is planned. Greenfield and brownfield drilling at Santa Elena will focus on several targets within a 5-kilometre radius around the processing plant where new geologic understanding of district stratigraphy has brought to light large areas with exploration upside. First Majestic will continue to drill the Navidad project where both extension and infill drilling are planned.
At Cerro Los Gatos, approximately 76,000 m of drilling is planned. Exploration will be focused on testing potential areas for mineralization expansion at the Central Deep and South East targets as well as taking a first step at exploring the wider land package in search of new ore bodies.
At Jerritt Canyon, approximately 18,000 m of drilling is planned. Exploration work will be focused on testing the extension of known ore controlling structures below outcropping Upper Plate (cover rock) where the presence of large, mineralized volumes is possible and has been poorly tested to date.
The Company plans to complete approximately 35,500 metres of underground development in 2025, compared to 32,047 m completed in 2024. The 2025 development program consists of approximately 14,000 m at San Dimas, 8,100 m at Santa Elena, 7,800 m at Cerro Los Gatos, and 5,600 m at La Encantada. At San Dimas, the Company is planning to concentrate development metres in the Perez, Regina and Elia Veins. At the Santa Elena district, underground development is expected to focus on Ermitaño and the advancement of the Luna ramp. At the Cerro Los Gatos district, development is to take place in all segments (NW, Central and SE) of the mine. At La Encantada, the Company plans to develop the Ojuelas and Milagros ore bodies for 2025 production.
CONFERENCE CALL DETAILS
The Company will host a conference call and webcast on Thursday, February 20, 2025, at 8:30 a.m. (PT) / 11:30 a.m. (ET) to provide investors and analysts with a business update, and to discuss its 2024 earnings and production results and 2025 guidance.
To participate in the conference call, please use the following dial-in numbers:
| Canada & USA Toll-Free: | 1-844-763-8274 | ||
| Outside of Canada & USA: | +1-647-484-8814 | ||
| Toll-Free Germany: | +49-69-17415718 | ||
| Toll-Free UK: | +44-20-3795-9972 |
Participants should dial-in at least 15 minutes prior to the start of the call to ensure placement in the conference on time.
A live webcast of the call will be accessible through the "February 20, 2025 Webcast Link" on the First Majestic home page at www.firstmajestic.com. A webcast archive will be available approximately one hour after the end of the event and will be accessible for three months through the same link as the live event.
A recording of the conference call will be available for telephone replay approximately one hour after the end of the event by calling:
| USA & Canada Toll-Free: | 1-855-669-9658 | ||
| Outside of Canada & US: | +1-412-317-0088 | ||
| Access Code: | 7307775 |
The telephone replay will be available for seven days following the end of the event.
ABOUT FIRST MAJESTIC
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates four producing underground mines in Mexico: the Cerro Los Gatos Silver Mine (the Company holds a 70% interest in the Los Gatos Joint Venture that owns and operates the mine), the Santa Elena Silver/Gold Mine, the San Dimas Silver/Gold Mine, and the La Encantada Silver Mine, as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, U.S.A.
First Majestic is proud to own and operate its own minting facility, First Mint, LLC, and to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at www.firstmint.com, at some of the lowest premiums available.
For further information, contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and U.S. securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements in this news release include, but are not limited to, statements with respect to: the assumptions used by the Company for its 2025 production and cost guidance; statements relating to the Company's capital investments in 2025; the Company's business strategy; future planning processes; commercial mining operations; budgets; the timing and amount of estimated future production, AISC and cash costs; costs and timing of development at the Company's projects; capital projects and exploration activities for 2025 and the possible results thereof; drilling programs in 2025, including potential exploration activities in the Tayoltita and Santa Rita areas; and operations at the Company's 100%-owned and operated minting facility and production of bullion from the mint. Assumptions may prove to be incorrect and actual results and future events may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon guidance and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Statements concerning proven and probable mineral reserves and mineral resource estimates may also be deemed to constitute forward‐looking statements to the extent that they involve estimates of the mineralization that will be encountered as and if the property is developed, and in the case of measured and indicated mineral resources or proven and probable mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".
Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of global health crises, such as pandemics, on our operations and workforce, and the effects on global economies and society; general economic conditions including inflation risks; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; social and labour unrest; relations with local communities; changes in national or local governments; changes in applicable legislation, rules or regulations and the application and enforcement thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual Information Form for the year ended December 31, 2023 filed with the Canadian securities regulatory authorities under the Company's SEDAR+ profile at www.sedarplus.ca, and in the Company's Annual Report on Form 40-F for the year ended December 31, 2023 filed with the United States Securities and Exchange Commission on EDGAR at www.sec.gov/edgar. Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240742
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