Pan American Silver reports revenue of $439.9 million in Q1 2022

 
 

Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American" or the "Company") today reported unaudited results for the quarter ended March 31, 2022 ("Q1 2022").

 

"Pan American reported strong financial performance in the quarter, enabling us to declare a dividend of $0.12 per common share for Q1, in line with the new dividend policy announced in February 2022 ," said Michael Steinmann , President and Chief Executive Officer. "As we indicated in our February 23, 2022 news release, our operations experienced high levels of workforce absenteeism in January and early February due to the Omicron variant of COVID-19. Workforce deployment is now back to more normal levels, and we are maintaining our guidance for 2022 with production weighted to the second half of the year."

 

  Consolidated Q1 2022 Highlights:  

 
  •  Silver production of 4.6 million ounces and gold production of 131.0 thousand ounces.
  •  
  • Revenue of $439.9 million included inventory draw downs of 531.6 thousand ounces of silver and 17.6 thousand ounces of gold.
  •  
  • Net earnings of $76.8 million ( $0.36 basic income per share). Adjusted earnings were $32.0 million ( $0.15 basic adjusted income per share), with the most significant adjustment being the exclusion of the $44.6 million one-time gain for Pan American's investment in Maverix Metals Inc. ("Maverix").
  •  
  • Operations generated $68.8 million of cash flow, net of $58.3 million in tax payments.
  •  
  • Silver Segment Cash Costs and All-in Sustaining Costs ("AISC") per silver ounce were $10.23 and $13.41 , respectively. Excluding Net Realizable Value ("NRV") inventory adjustments, Silver Segment AISC was $13.08 per ounce.
  •  
  • Gold Segment Cash Costs and AISC per gold ounce were $1,069 and $1,502 , respectively. Excluding NRV inventory adjustments, Gold Segment AISC was $1,409 per ounce.
  •  
  • Completed a quarterly-record 25,924 metres drilled on the La Colorada Skarn project, advanced pre-sinking of the concrete lined ventilation shaft and began commissioning of the refrigeration plant. See the news release issued on May 9, 2022 , for further details on the recent drill results.
  •  
  • Management maintains its guidance for 2022 production, costs and capital expenditures. Production is expected to be weighted to the second half of 2022, reflecting the impact on production from reduced workforce deployment levels in Q1 2022 due to the Omicron variant and mine sequencing. See the "2022 Guidance" section of this news release for further details, and the Company's Management's Discussion and Analysis for the three months ended March 31, 2022 .
  •  
  • As at March 31, 2022 , Pan American had working capital of $620.7 million , inclusive of cash and short-term investment balances of $326.3 million ; a long-term investment in Maverix with a market value of $124.7 million ; and $500.0 million available under our sustainability-linked credit facility. Total debt of $47.0 million was related to lease liabilities and construction loans.
  •  
  • A cash dividend of $0.12 per common share has been declared, payable on or about June 3, 2022 , to holders of record of Pan American's common shares as of the close on May 24, 2022 . The dividend is comprised of a base dividend of $0.10 per common share and a variable dividend of $0.02 per common share. On February 23, 2022 , Pan American introduced a dividend policy that provides for a base dividend plus a supplemental dividend amount tied to our net cash balance. The dividends are eligible dividends for Canadian income tax purposes.
  •  

  CONSOLIDATED RESULTS  

 
 
                                                                                                           
 
 

   Three months
ended
 
March 31, 2022  
 

 
 

  Twelve months
ended
 
Dec. 31, 2021  

 
 

  Weighted average shares during period (millions)  

 
 

   210.5   

 
 

  210.3  

 
 

  Shares outstanding end of period (millions)  

 
 

   210.5   

 
 

  210.5  

 
 
 
 
 
 

   Three months ended  
March 31,  
 

 
 
 

   2022   

 
 

   2021   

 
 

   FINANCIAL   

 
 
 
 

  Revenue  

 
 

   $           439,888   

 
 

  $           368,099  

 
 

  Mine operating earnings  

 
 

   $             66,755   

 
 

  $             89,964  

 
 

  Net income (loss)  

 
 

   $             76,831   

 
 

  $              (7,562)  

 
 

  Basic income (loss) per share (1)  

 
 

   $                 0.36   

 
 

  $                (0.04)  

 
 

  Adjusted income (2)  

 
 

   $             31,977   

 
 

  $             37,433  

 
 

  Basic adjusted income per share (1)  

 
 

   $                 0.15   

 
 

  $                 0.18  

 
 

  Net cash generated from operating activities  

 
 

   $             68,758   

 
 

  $             29,850  

 
 

  Net cash generated from operating activities before changes in working capital (2)  

 
 

   $             83,816   

 
 

  $             77,248  

 
 

  Sustaining capital expenditures (2)  

 
 

   $             55,957   

 
 

  $             45,210  

 
 

  Non-sustaining  capital expenditures (2)  

 
 

   $               9,765   

 
 

  $               5,743  

 
 

  Cash dividend per share  

 
 

   $                 0.12   

 
 

  $                 0.07  

 
 

   PRODUCTION   

 
 
 
 

  Silver (thousand ounces)  

 
 

   4,619   

 
 

  4,583  

 
 

  Gold (thousand ounces)  

 
 

   131.0   

 
 

  137.6  

 
 

  Zinc (thousand tonnes)  

 
 

   10.2   

 
 

  13.1  

 
 

  Lead (thousand tonnes)  

 
 

   4.7   

 
 

  5.0  

 
 

  Copper (thousand tonnes)  

 
 

   1.8   

 
 

  2.1  

 
 

   CASH COSTS (2) ($/ounce)   

 
 
 
 

  Silver Segment  

 
 

   10.23   

 
 

  12.30  

 
 

  Gold Segment  

 
 

   1,069   

 
 

  846  

 
 

   AISC (2) ($/ounce)   

 
 
 
 

  Silver Segment  

 
 

   13.41   

 
 

  16.99  

 
 

  Gold Segment  

 
 

   1,502   

 
 

  1,058  

 
 

   AVERAGE REALIZED PRICES (3)   

 
 
 
 

  Silver ($/ounce)  

 
 

   24.03   

 
 

  26.41  

 
 

  Gold ($/ounce)  

 
 

   1,880   

 
 

  1,788  

 
 

  Zinc ($/tonne)  

 
 

   3,792   

 
 

  2,756  

 
 

  Lead ($/tonne)  

 
 

   2,341   

 
 

  2,036  

 
 

  Copper ($/tonne)  

 
 

   9,767   

 
 

  8,515  

 
 
 
 
      
 

  (1)  

 
 

  Per share amounts are based on basic weighted average common shares.  

 
 

  (2)  

 
 

  Non-GAAP measure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.  

 
 

  (3)  

 
 

  Metal prices stated are inclusive of final settlement adjustments on concentrate sales.  

 
 
 

 
Cash Costs, AISC, adjusted earnings, basic adjusted earnings per share, sustaining and non-sustaining capital, working capital, total debt and net cash are not generally accepted accounting principle ("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 Management's Discussion and Analysis for the three months ended March 31, 2022. This material is available on Pan American's website at panamericansilver.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov .

 

  2022 GUIDANCE  

 

There are no changes to the guidance for 2022 provided on February 23, 2022 , as detailed below. We are currently experiencing higher than expected overall inflationary pressures, particularly for diesel and certain consumables, as well as disruptions in the supply chain. Management is monitoring this situation and will adjust its cost estimates if required.

 

These estimates are forward-looking statements and information that are subject to the cautionary note associated with forward-looking statements and information at the end of this news release.

 

  Annual Production  

 
 
          
 

  Silver – Moz  

 
 

  19.0 - 20.5  

 
 

  Gold – koz  

 
 

  550.0 - 605.0  

 
 

  Zinc – kt  

 
 

  35.0 - 40.0  

 
 

  Lead – kt  

 
 

  15.0 - 17.0  

 
 

  Copper – kt  

 
 

  5.5 - 6.5  

 
 
 

  
Cash Costs and AISC
 

 
 
         
 
 

   Cash Costs (1)(2)   

 

   ($ per ounce)   

 
 

   AISC (1)(2)   

 

   ($ per ounce)   

 
 

  Silver Segment Total  

 
 

  10.70 - 12.20  

 
 

  14.50 - 16.00  

 
 

  Gold Segment Total  

 
 

  970 - 1,070  

 
 

  1,240 - 1,365  

 
 
 
 
    
 

  (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.  

 
 

  (2)  

 
 

  The Cash Costs and AISC forecasts assume average metal prices of $22.50/oz for silver, $1,750/oz for gold, $3,000/tonne ($1.36/lb) for zinc, $2,200/tonne ($1.00/lb) for lead, and $9,200/tonne ($4.17/lb) for copper; and average annual exchange rates relative to 1 USD of 20.00 for the Mexican peso ("MXN"), 4.10 for the Peruvian sol ("PEN"), 122.17 for the Argentine peso ("ARS"), 7.00 for the Bolivian boliviano ("BOB"), and $1.25 for the Canadian dollar ("CAD").  

 
 
 

  
Capital Expenditures
 

 
 
        
 
 

   (in millions of USD)   

 
 

  Sustaining Capital (1)  

 
 

  200.0 - 210.0  

 
 

  Project Capital  

 
 

  80.0 - 95.0  

 
 

   Total Capital   

 
 

   280.0 - 305.0   

 
 
 
 
  
 

  (1)  

 
 

  Sustaining Capital includes $24.0 million for forecast lease and other payments, which include debt repayments on construction loan facilities classified as "Debt" as per Note 17 of the Company's audited financial statements for the year ended December 31, 2021. These facilities are for constructions of pads and other infrastructure in which the Company only makes cash payments upon completion of construction activities and on a scheduled basis.  

 
 
 

  
Conference Call and Webcast
 

 
 
          
 

  Date:  

 
 

  May 12, 2022  

 
 

  Time:  

 
 

  11:00 am ET (8:00 am PT)  

 
 

  Dial-in numbers:  

 
 

  1-800-319-4610 (toll-free in Canada and the U.S.)  

 
 
 

  +1-604-638-5340 (international participants)  

 
 

  Webcast:  

 
 

  panamericansilver.com  

 
 
 

 
The live webcast, presentation slides and the Q1 2022 report will be available at panamericansilver.com. An archive of the webcast will also be available for three months.

 

  About Pan American Silver  

 

Pan American owns and operates silver and gold mines located in Mexico , Peru , Canada , Argentina and Bolivia . We also own the Escobal mine in Guatemala that is currently not operating. Pan American provides enhanced exposure to silver through a large base of silver reserves and resources, as well as major catalysts to grow silver production. We have a 28-year history of operating in Latin America , 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 NASDAQ and the Toronto Stock Exchange under the symbol "PAAS".

 

Learn more at panamericansilver.com.

 

  Technical Information  

 

Scientific and technical information contained in this news release have been reviewed and approved by Martin Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, and Christopher Emerson , FAusIMM, Vice President Business Development and Geology, each of whom are Qualified Persons, as the term is defined in Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects .

 

For additional information about Pan American's material mineral properties, please refer to Pan American's Annual Information Form dated February 23, 2022 , filed at www.sedar.com , or the Company's most recent Form 40-F filed with the Securities and Exchange Commission.

 

  Alternative Performance (Non-GAAP) Measures  

 

In this news release, we refer to measures that are not generally accepted accounting principle ("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 ("AISC"). 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: long-term debt, finance lease liabilities and loans payable. 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.
  •  
  • Net cash is calculated as cash and cash equivalents plus short-term investments, other than equity securities less total debt.
  •  
  • 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 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.
  •  

Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of Pan American's Management's Discussion and Analysis for the period ended December 31, 2021, 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 2022, our estimated Cash Costs and AISC, and our sustaining and project capital expenditures in 2022; the anticipated timing for metals production; the impact of inflationary pressures on our operations and business, particularly for diesel and certain consumables, as well as the impacts related to disruptions in the supply chain; future anticipated prices for gold, silver and other metals and assumed foreign exchange rates; expectations with respect to the future anticipated impact of COVID-19 on our operations and the assumptions that the impact of COVID-19, including the Omicron variant, will be such that we will be able to maintain our workforce at near normal levels in 2022; the ability to continue making progress at any of our exploration projects, including the Wetmore and Whitney projects, and the results of any exploration programs undertaken; whether Pan American is able to maintain a strong financial condition and have sufficient capital, or have access to capital through our corporate sustainability-linked credit facility or otherwise, to sustain our business and operations; and the ability of Pan American to successfully complete any capital projects, including, but not limited to, the La Colorada Skarn project, the expected economic or operational results derived from those projects, and the impacts of any such projects on Pan American 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 world-wide economic and social impact of COVID-19 and the duration and extent of the COVID-19 pandemic and related restrictions, and the presence and impact of COVID-19 and COVID-19 related restrictions on our workforce, suppliers and other essential resources and what effect those impacts, if they change, would have on our business;  the effect that the COVID-19 pandemic may have on our financial and operational results; the ability of Pan American to continue with its operations, or to successfully maintain our operations on care and maintenance, should the situation related to COVID-19 not be as anticipated; continuation of operations following shutdowns or reductions in production, our ability to manage reduced operations efficiently and economically, including to maintain necessary staffing; 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 at La Colorada and our other operations, including anticipated sustaining, project, and exploration expenditures; the ongoing impact and timing of the court-mandated ILO 169 consultation process in Guatemala ; ore grades and recoveries; prices for silver, gold and base metals remaining as estimated; currency exchange rates remaining as estimated; capital, decommissioning and reclamation estimates; our mineral reserve and 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 properties and the surface rights necessary for our operations; and our ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.

 

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; the world-wide economic and social impact of COVID-19 and the duration and extent of the COVID-19 pandemic and related restrictions; the presence and impact of COVID-19 and COVID-19 related restrictions on our workforce, suppliers and other essential resources and what effect those impacts, if they change, would have on our business;  the effect that the COVID-19 pandemic may have on our financial and operational results; the ability of Pan American to continue with its operations, or to successfully maintain our operations on care and maintenance, should the situation related to COVID-19 not be as anticipated; continuation of operations following shutdowns or reductions in production, if applicable, and our ability to manage reduced operations efficiently and economically, including to maintain necessary staffing; 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 at La Colorada and our other operations, including anticipated sustaining, project, and exploration expenditures; the ongoing impact and timing of the court-mandated ILO 169 consultation process in Guatemala ; ore grades and recoveries; prices for silver, gold and base metals remaining as estimated; currency exchange rates remaining as estimated; capital, decommissioning and reclamation estimates; our mineral reserve and 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 properties and the surface rights necessary for our operations; and our ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.

 

 

 

 Cision View original content: https://www.prnewswire.com/news-releases/pan-american-silver-reports-revenue-of-439-9-million-in-q1-2022--301545395.html  

 

SOURCE Pan American Silver Corp.

 

 

 

 Cision View original content: https://www.newswire.ca/en/releases/archive/May2022/11/c7830.html  

 
 

News Provided by Canada Newswire via QuoteMedia

PAAS:CA,PAAS
The Conversation (0)
Pan American Silver Releases 2023 Sustainability Report

Pan American Silver Releases 2023 Sustainability Report

 

  Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan American" or the "Company") today released its 2023 Sustainability Report (the "Report") describing Pan American's approach and performance in the areas of environment, social and governance ("ESG"). A Spanish and Portuguese version of the Report will be released shortly.

 

Highlights of Pan American's 2023 ESG performance include:

News Provided by Business Wire via QuoteMedia

Keep reading...Show less
OTC:NUMPF

New Pacific Metals: A New Frontier of Silver Exploration

New Pacific Metals (TSX:NUAG,OTCQX:NUMPF) has launched its campaign on the Investing News Network’s resource channel.

New Pacific Metals is an exploration and development company targeting projects in Bolivia. The company’s largest shareholders are Silvercorp Metals Inc. (TSX:SVM), the largest primary silver producer in China, and Pan American Silver Corp. (TSX:PAAS), one of the world’s largest primary silver producers. Both Silvercorp and Pan American Silver hold additional Bolivian assets.

Keep reading...Show less
Company News

Brixton Metals: Developers of Four Wholly-Owned High-Potential Exploration Projects

Brixton Metals Corporation (TSXV:BBB) has launched its campaign on the Investing News Network’s resource channel.

Brixton Metals Corporation is a precious metals exploration and development company that now wholly-owns four goldsilvercopper assets in mining-friendly jurisdictions across North America. The company is working to advance the Atlin and Thorn projects in British Columbia, the Langis-Hudson Bay projects in Ontario and the Hog Heaven project in Montana.

Keep reading...Show less
Rapid Successfully Undertakes $10.5M Capital Raising to Fund Acquisition of the Webbs and Conrads NSW Silver Projects

Rapid Successfully Undertakes $10.5M Capital Raising to Fund Acquisition of the Webbs and Conrads NSW Silver Projects

Rapid Critical Metals Limited (‘Rapid,’ ‘RCM’ or ‘Company’) is pleased to announce that the Company has received firm commitments from institutional, sophisticated and professional investors for the placement of 437,500,000New Fully Paid Ordinary Shares (New Shares) at an issue price of A$0.024 per new share (post 12-for-1 consolidation) to raise gross proceeds of A$10.5 million (Placement). The Placement comprises two tranches:

Keep reading...Show less
Silver bars with rising chart, "Weekly Editor's Picks" text overlay.

Editor's Picks: Silver Price Hits 13 Year High, Gold Takes a Breather

Gold was on the decline this week, closing just below US$3,370 per ounce, after tensions in the Middle East pushed it past the US$3,430 level toward the end of last week.

All eyes were on the US Federal Reserve, which in a widely expected move left interest rates unchanged on Wednesday (June 18) following its two day meeting. The central bank cut rates in December 2024, but has kept them steady for its last four gatherings.

US President Donald Trump wasn't pleased, calling Powell "too late" in a Thursday (June 19) post on Truth Social. While speculation that Trump will fire Powell has died down, the president did recently say he intends to announce his next pick for the Fed leader position "very soon."

Keep reading...Show less
Silver metallic dice spelling "ETF" against stock chart background.

10 Silver ETFs for Every Investing Style in 2025

Investors looking for exposure to the silver price and silver-mining companies should consider silver exchange-traded funds (ETFs).

Spurred by moves in the gold market, safe-haven buying as well as increasing demand from industrial sectors, silver saw strong price movements in the first half of 2025, breaching US$37 per ounce for the first time since 2011.

While silver has often been seen as a more approachable precious metal owing to its lower per ounce price, its performance has lagged gains seen in the gold price over the past few years. However, silver stole some of the spotlight in the second quarter of 2025 as it saw significant gains on the back of geopolitical tension and economic uncertainty from the US trade and tariff policy.

Keep reading...Show less
Silver bars and US$100 bills with a rising chart overlay.

Silver Price Surges to US$37, Highest Value Since May 2011

After being overshadowed by gold early in the year, silver has been in the spotlight in recent weeks.

The white metal broke through the US$37 per ounce mark on Tuesday (June 17) for the first time since May 2011.

Recent economic and geopolitical events have raised analysts’ expectations of a September rate cut from the US Federal Reserve, helping to fuel safe-haven buying of silver and gold.

Keep reading...Show less

Latest Press Releases

Related News

×