The Conversation (0)
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Drilling to test high-grade silver targets at the West Fault, Main Fault and Bighorn
Silver North Commences Drilling at Haldane Property
Vancouver, BC, September 10, 2024 TheNewswire Silver North Resources Ltd. (TSX-V: SNAG, OTCQB: TARSF) " Silver North " or the " Company ") is pleased to announce that the 2024 drilling campaign has commenced at the wholly owned Haldane Property in the historic Keno Hill Silver District, Yukon. Approximately 1,000 metres of drilling is planned for 3 holes testing the West Fault, Main Fault and Bighorn targets. The 8,579 hectare Haldane Property is located 25 km west of Keno City, YT and hosts numerous occurrences of silver-lead-zinc-bearing quartz siderite veins as seen elsewhere in the district.
"Silver North's second drill program of 2024 targeting high grade silver mineralization is underway," stated Jason Weber, P.Geo., President and CEO of Silver North. "This is an exciting time for Silver North shareholders as we await the analytical results from Tim and now are drilling three high priority targets at Haldane. We aim to build on the strike and down dip extents at West Fault, attempt to intersect the Main Fault at depth and build on the only hole testing the Bighorn target."
Drilling will target the West Fault, Main Fault and Bighorn areas. Drilling at West Fault will aim to expand upon high grade silver mineralization intersected in recent drilling such as 3.14 metres (true width) averaging 1,351 g/t silver, 2.43% lead and 2.91% zinc. The West Fault structure has been traced for over 650 metres of strike length and is interpreted to extend to 1.1 km in length before merging with the 2.2 km long Main Fault structure.
Drilling at the West Fault will target the interpreted southwest plunge of the mineralization with an approximate 50 m step-out from the high-grade result returned from HLD21-24 (3.14 metres (true width) averaging 1,351 g/t silver, 2.43% lead and 2.91% zinc). A second hole targeting the West Fault and Main Fault will test the West Fault approximately 190 m along strike to the southwest from HLD21-24 and approximately 75m downdip from HLD11-06 that returned 3.04 metres averaging 0.472 g/t gold, 190.8 g/t silver, 4.33% lead and 2.61 % zinc from a very poorly recovered highly oxidized intersection of the vein. This hole is intended to continue to intersect the Main Fault approximately 275m downdip and between the Main and Main South surface showings. A nearby shallow drill hole from 2011 returned 3.08 m averaging 0.122 g/t gold, 83.8 g/t silver, 0.14% lead and 1.39% zinc from poorly recovered and highly oxidized vein material at the overburden – bedrock interface.
Drilling will also target the silver-bearing vein mineralization intersected in the only hole drilled at the Bighorn Target. Drilling in 2019 intersected four separate veins, the best of which returned 2.35 m averaging 125 g/t silver and 4.39% lead. The structure hosting mineralization at Bighorn has been traced for over 525 m of strike length within a 900 m long lead-silver soil geochemical anomaly. The current drilling will target approximately 200 m along strike to the north from the 2019 intersection and will test a combination of soil samples highly anomalous in silver and lead and anomalous trench sampling results from the highly oxidized and weathered main BT structure at Bighorn that returned 22.6 m of 0.12% lead and 6.1 g/t silver.
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About Silver North Resources Ltd.
Silver North's primary assets are its 100% owned Haldane silver project (next to Hecla Mining Inc.'s Keno Hill Mine project) and the Tim silver project (under option to Coeur Mining, Inc.).
The Company is listed on the TSX Venture Exchange under the symbol "SNAG", trades on the OTCQB market in the United States under the symbol "TARSF", and under the symbol "I90" on the Frankfurt Stock Exchange.
Mr. Jason Weber, P.Geo., President and CEO of Silver North Resources Ltd. is a Qualified Person as defined by National Instrument 43-101. Mr. Weber supervised the preparation of the technical information contained in this release.
For further information, contact:
Jason Weber, President and CEO
Sandrine Lam, Shareholder Communications
Tel: (604) 807-7217
Fax: (888) 889-4874
To learn more visit: www.silvernorthres.com
X: https://x.com/SilverNorthRes
LinkedIn:
Copyright (c) 2024 TheNewswire - All rights reserved.
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Tim Drilling Program Completed; Crews Mobilizing to Haldane Project
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Drilling indicates the presence of a Carbonate Replacement ("CRD") style system at Tim
2,252 metres drilled in six holes
Drill is currently moving from Tim to the Haldane Property
Vancouver, BC TheNewswire - September 4, 2024 Silver North Resources Ltd. (TSX-V: SNAG, OTCQB: TARSF) " Silver North " or the " Company ") is pleased to announce that the 2024 drilling program at the Tim Property has now been completed and the drill is being demobilized from site. The Tim Property is under option to, and operated by, Coeur Mining, Inc. ("Coeur" NYSE-CDE), which is funding the 2024 program. A total of 2,252 metres were drilled in six holes in the program. The drill is now enroute to Silver North's wholly-owned Haldane Property in the historic Keno Hill Silver District and the Company's technical team is on site.
"We would like to thank the Coeur Silvertip team," stated Jason Weber, P.Geo., President and CEO of Silver North. "Coeur has exceeded expectations on every program they have conducted at Tim. The late addition of two airborne geophysical surveys to augment this year's drilling is an example of the big-picture approach they are taking at Tim to identify how it fits into the regional CRD setting. We eagerly await the receipt of analytical results this fall."
As outlined in Silver North's update of August 19, 2024, drill core observations from the first three holes of the program include diagnostic features that are commonly associated with significant CRD mineralization and have been observed at the Silvertip deposits. Such characteristics include fugitive calcite veining that fluoresces in UV light (displaying the classic "barbeque" pink and orange fluorescence) and re-crystallization of the host limestones.
The 2024 program is conducted under the direction of Coeur's exploration team based at Silvertip, under the terms of an option agreement granting Coeur the right to earn a 51% interest in the property by completing a minimum of $3.15 million in additional exploration expenditures and making additional cash payments to Silver North totalling $275,000 by December 31, 2026. Coeur can bring its interest to 80% by making additional cash payments of $100,000 per year in 2027 and 2028, completing a positive feasibility study and informing Silver North of its intention to develop a mine at Tim by December 16, 2028. Under this agreement, Coeur must fund a minimum $700,000 program in 2024. Tim is road accessible via 25 km of 4 x 4 access off the Silvertip Mine Road.
About Silver North Resources Ltd.
Silver North's primary assets are its 100% owned Haldane silver project (next to Hecla Mining Inc.'s Keno Hill Mine project) and the Tim silver project (under option to Coeur Mining, Inc.).
The Company is listed on the TSX Venture Exchange under the symbol "SNAG", trades on the OTCQB market in the United States under the symbol "TARSF", and under the symbol "I90" on the Frankfurt Stock Exchange.
Mr. Jason Weber, P.Geo., President and CEO of Silver North Resources Ltd. is a Qualified Person as defined by National Instrument 43-101. Mr. Weber supervised the preparation of the technical information contained in this release.
For further information, contact:
Jason Weber, President and CEO
Sandrine Lam, Shareholder Communications
Tel: (604) 807-7217
Fax: (888) 889-4874
To learn more visit: www.silvernorthres.com
X: https://x.com/SilverNorthRes
LinkedIn: https://
Copyright (c) 2024 TheNewswire - All rights reserved.
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Silver North to Commence Haldane Drilling
(TheNewswire)
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Vancouver, BC, August 27, 2024 TheNewswire Silver North Resources Ltd. (TSX-V: SNAG, OTCQB: TARSF) " Silver North " or the " Company ") is pleased to provide an update on 2024 Yukon exploration activities at the wholly owned Haldane Property in the historic Keno Hill Silver District, Yukon. Crews will be mobilizing to the property in the first week of September, with drilling commencing by mid-September. The 8,579 hectare Haldane Property is located 25 km west of Keno City, YT and hosts numerous occurrences of silver-lead-zinc-bearing quartz siderite veins as seen elsewhere in the district.
"We are eager to begin drilling at Haldane again, following on the heels of the Tim drilling program in southern Yukon," stated Jason Weber, P.Geo., President and CEO of Silver North. "In fact, the drill will move north from Tim to Haldane once the final hole at Tim is complete in early September."
Drilling will target the West Fault and Bighorn areas. Drilling at West Fault will aim to expand upon high grade silver mineralization intersected in recent drilling such as 3.14 metres (true width) averaging 1,351 g/t silver, 2.43% lead and 2.91% zinc. The West Fault structure has been traced for over 650 metres of strike length and is interpreted to extend to 1.1 km in length before merging with the 2.2 km long Main Fault structure. The Main Fault is known to host strongly oxidized silver mineralization on surface at the Main and Main South targets. If drilling conditions permit, one hole at the West Fault will be continued to depth in order to intersect the Main Fault target as well.
Drilling will also target the silver-bearing vein mineralization intersected in the only hole drilled at the Bighorn Target. Drilling in 2019 intersected four separate veins, the best of which returned 2.35 m averaging 125 g/t silver and 4.39% lead. The structure hosting mineralization at Bighorn has been traced for over 525 m of strike length within a 900 m long lead-silver soil geochemical anomaly. In total, approximately 1,000 m of drilling is planned for the current program.
About Silver North Resources Ltd.
Silver North's primary assets are its 100% owned Haldane silver project (next to Hecla Mining Inc.'s Keno Hill Mine project) and the Tim silver project (under option to Coeur Mining, Inc.).
The Company is listed on the TSX Venture Exchange under the symbol "SNAG", trades on the OTCQB market in the United States under the symbol "TARSF", and under the symbol "I90" on the Frankfurt Stock Exchange.
Mr. Jason Weber, P.Geo., President and CEO of Silver North Resources Ltd. is a Qualified Person as defined by National Instrument 43-101. Mr. Weber supervised the preparation of the technical information contained in this release.
For further information, contact:
Jason Weber, President and CEO
Sandrine Lam, Shareholder Communications
Tel: (604) 807-7217
Fax: (888) 889-4874
To learn more visit: www.silvernorthres.com
X: https://x.com/SilverNorthRes
LinkedIn: https://
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Silver North Provides Tim Drilling Progress Update
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Drilling indicates the presence of a Carbonate Replacement ("CRD") style system at Tim
Program Expanded to include airborne geophysical surveys
Over 1,300 m of planned 2,000 m of drilling completed to date
Management recently completed site visit
Vancouver, BC, August 19, 2 024 – TheNewswire – Silver North Resources Ltd. (TSX-V: SNAG, OTCQB: TARSF) " Silver North " or the " Company ") is pleased to provide an update on 2024 Yukon exploration activities at the Tim silver property. The Tim Property is under option to, and operated by, Coeur Mining, Inc. ("Coeur" NYSE-CDE), which is funding the 2024 program. To date, over 1,300 metres of drilling in four holes have been completed.
"We are extremely pleased with Coeur's progress to date at Tim," stated Rob Duncan, VP Exploration for Silver North after a recent site visit to the Tim Property. "Given that the Wolf Fault has been identified in several historic trenches, in the current drillholes and anomalous soil geochemistry over a cumulative strike length of >2 km, we believe that the Tim project displays the necessary characteristics of a potentially productive CRD system. We are eagerly awaiting the analytical results from this program, which are expected to be received in October."
Diamond drilling at the Tim Property commenced at the end of June, testing the potential for stratiform (manto) and structural (chimney) style Carbonate Replacement Deposit ("CRD") mineralization. Drilling at Tim is primarily targeting the Wolf Fault, a northwest striking and steeply southwest dipping structure that parallels the regionally significant Kechika Fault, which can be traced from the Silvertip land package through Tim and Silver North's Veronica Project (recently acquired via option). Large conductivity anomalies defined by SkyTEM airborne geophysical data are associated with the Wolf Fault, as is silver mineralization and/or heavily oxidized fault breccias in historical trenches.
All 4 holes drilled to date have intersected the strongly oxidized Wolf structure and/or parallel splays of it. The Wolf Fault is noted to emplace overlying Kechika phyllite and argillites in fault contact with the underlying prospective Rosella Limestone Formation. At depth, parallel structures to the Wolf Fault are seen within the argillites of the Boya Formation that underlie the Rosella limestones. Geological and structural features that have been observed in the drilling to date consist of diagnostic features that are commonly associated with significant CRD mineralization and have been observed at the Silvertip deposits. Such characteristics include fugitive calcite veining that fluoresces in UV light (displaying the classic "barbeque" pink and orange fluorescence) and re-crystallization of the host limestones. These features suggest that the Wolf Fault target at Tim could be part of a productive CRD system.
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The 2024 program is conducted under the direction of Coeur's exploration team based at Silvertip, under the terms of an option agreement granting Coeur the right to earn a 51% interest in the property by completing a minimum of $3.15 million in additional exploration expenditures and making additional cash payments to Silver North totalling $275,000 by December 31, 2026. Coeur can bring its interest to 80% by making additional cash payments of $100,000 per year in 2027 and 2028, completing a positive feasibility study and informing Silver North of its intention to develop a mine at Tim by December 16, 2028. Under this agreement, Coeur must fund a minimum $700,000 program in 2024. Tim is road accessible via 25 km of 4 x 4 access off the Silvertip Mine Road.
About Silver North Resources Ltd.
Silver North's primary assets are its 100% owned Haldane silver project (next to Hecla Mining Inc.'s Keno Hill Mine project) and the Tim silver project (under option to Coeur Mining, Inc.).
The Company is listed on the TSX Venture Exchange under the symbol "SNAG", trades on the OTCQB market in the United States under the symbol "TARSF", and under the symbol "I90" on the Frankfurt Stock Exchange.
Mr. Jason Weber, P. Geo., President and CEO of Silver North Resources Ltd. is a Qualified Person as defined by National Instrument 43-101. Mr. Weber supervised the preparation of the technical information contained in this release.
For further information, contact:
Jason Weber, President and CEO
Sandrine Lam, Shareholder Communications
Tel: (604) 807-7217
Fax: (888) 889-4874
To learn more visit: www.silvernorthres.com
X: https://x.com/SilverNorthRes
LinkedIn: https://
Copyright (c) 2024 TheNewswire - All rights reserved.
News Provided by TheNewsWire via QuoteMedia
Silver North Announces Closing of Final Tranche of Private Placement
(TheNewswire)
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Vancouver, BC, July 18, 2024 TheNewswire Silver North Resources Ltd. (TSX-V: SNAG, OTCQB: TARSF) " Silver North " or the " Company ") is pleased to announce that it has closed the third and final tranche (the " Final Tranche ") of its non-brokered private placement (the " Offering ") for gross proceeds of $89,000. Further to the Company's news releases dated June 21, 2024 and June 28, 2024, the Company has raised aggregate gross proceeds of $827,380 in the Offering.
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Endeavour Silver Continues to Intersect High-Grade Silver-Gold Mineralization at its Bolañitos Operation
Endeavour Silver Corp. ("Endeavour" or the "Company") (TSX: EDR, NYSE: EXK) is pleased to report positive drill results from its exploration program at the Bolañitos Mine in Guanajuato State, Mexico. The 20242025 program focused on one key area, drilling the La Luz vein. Surface drilling intersected high-grade gold and silver mineralization and provides opportunities to replace reserves, increase resources and extend mine life.
"For more than 17 years, our exploration success has been integral to the ongoing operations at Bolañitos," said Dan Dickson, Chief Executive Officer. "The latest results highlight our focus on efficient, cost-effective exploration, which continues to extend the mine's life."
Highlight Drill Results from La Luz Vein Structure
- 1.17 gpt Au and 449 gpt Ag for 542 gpt AgEq over a 1.02 m ETW , including 1.73 gpt Au and 798 gpt Ag for 936 gpt AgEq over 0.38 m in hole LZ46-3
- 2.43 gpt Au and 1,063 gpt Ag for 1,258 gpt AgEq over a 1.62 m ETW , including 9.61 gpt Au and 4,070 gpt Ag for 4,839 gpt AgEq over 0.34 m in hole LZ48-1
Abbreviations include: gpt: grams per tonne; Au: gold; Ag: silver; ETW: estimated true width; m: metre; silver equivalents are calculated at a ratio of 80:1 silver:gold.
Drilling Context
In the last quarter of 2024, a surface diamond drilling program began in the north extension of the La Luz vein, in the area of the San Bernabé Adit and San Rafael Shaft, an area within 500 metres from the Asunción mine, exploited in previous years by the Company.
To date, eight drill holes totaling 2,000 metres has outlined high-grade mineralization over 100 metres in length to a depth of 200 metres. The area remains open to the south and to depth. Drilling will continue in the area for the first half of 2025.
Figure 1: Surface map of the San Bernabe-San Rafael Area, Bolañitos project
Figure 2: Longitudinal section of La Luz (San Bernabe – San Rafael area)
Table 1. La Luz Drill Results
| Hole | Structure | From (m) | To (m) | True Width (m) | Au (gpt) | Ag (gpt) | AgEq (gpt) | |
| LZ46-3 | La Luz | 264.90 | 266.50 | 1.02 | 1.17 | 449 | 542 | |
| Including | 264.90 | 265.50 | 0.38 | 1.73 | 798 | 936 | ||
| LZ47-2 | La Luz | 223.90 | 226.30 | 1.67 | 0.41 | 183 | 216 | |
| Including | 223.90 | 224.45 | 0.38 | 0.74 | 269 | 329 | ||
| LZ47-3 | La Luz | 189.05 | 190.40 | 0.95 | 2.03 | 70 | 233 | |
| Including | 190.15 | 190.40 | 0.18 | 3.36 | 22 | 290 | ||
| LZ48-1 | La Luz | 265.85 | 268.75 | 1.62 | 2.43 | 1,063 | 1,258 | |
| Including | 267.45 | 268.05 | 0.34 | 9.61 | 4,070 | 4,839 | ||
| LZ48-3 | La Luz | 144.75 | 147.50 | 2.49 | 3.15 | 71 | 322 | |
| Including | 144.75 | 145.50 | 0.68 | 5.63 | 47 | 497 |
Note: Drill holes LZ46-2, LZ48-2 and LZ50-2 returned no significant results
Silver equivalents are calculated at a ratio of 80:1 silver:gold. All widths are estimated true widths.
About Endeavour Silver
Endeavour is a mid-tier precious metals company with a strong commitment to sustainable and responsible mining practices. With operations in Mexico and the development of the new cornerstone mine in Jalisco state, the company aims to contribute positively to the mining industry and the communities in which it operates. In addition, Endeavour has a portfolio of exploration projects in Mexico, Chile and the United States to facilitate its goal to become a premier senior silver producer.
Qualified Person
Dale Mah, P.Geo., Vice President Corporate Development, a qualified person under NI 43-101, has approved the scientific and technical information contained in this news release.
A quality control sampling program of reference standards, blanks and duplicates has been instituted to monitor the integrity of all assay results. All samples are split at the local field office and shipped to ALS Labs, where they are dried, crushed, split and 250-gram pulp samples are prepared for analysis. Gold is determined by fire assay with an atomic absorption finish and silver by aqua regia digestion with ICP finish, over-limits by fire assay and gravimetric finish.
Contact Information
Allison Pettit
Director, Investor Relations
Tel: (604) 685 - 9775
Email: apettit@edrsilver.com
Website: www.edrsilver.com
Cautionary Note Regarding Forward-Looking Statements
This news release contains "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 securities legislation. Such forward-looking statements and information herein include but are not limited to statements regarding mineral reserves, mineral resources, the life of the Bolañitos Mine, future drilling at the Bolañitos Mine, and the timing and results of various activities. The Company does not intend to and does not assume any obligation to update such forward-looking statements or information, other than as required by applicable law.
Forward-looking statements or information involve known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, production levels, performance or achievements of Endeavour and its operations to be materially different from those expressed or implied by such statements. Such factors include but are not limited to changes in production and costs guidance; the reliability of mineral resource Estimates; the ongoing effects of inflation and supply chain issues on mine economics; national and local governments' legislation, taxation, controls, regulations and political or economic developments in Canada and Mexico; financial risks due to precious metals prices; operating or technical difficulties in mineral exploration, development and mining activities; risks and hazards of mineral exploration, development and mining; the speculative nature of mineral exploration and development; risks in obtaining necessary licenses and permits; fluctuations in the prices of silver and gold, fluctuations in the currency markets (particularly the Mexican peso, Chilean peso, Canadian dollar and U.S. dollar); and challenges to the Company's title to properties; as well as those factors described in the section "risk factors" contained in the Company's most recent form 40F/Annual Information Form filed with the S.E.C. and Canadian securities regulatory authorities.
Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to: the continued operation of the Company's mining operations, no material adverse change in the market price of commodities, the reliability of mineral resource Estimates; mining operations will operate and the mining products will be completed in accordance with management's expectations and achieve their stated production outcomes, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or information, there may be other factors that cause results to be materially different from those anticipated, described, estimated, assessed or intended. There can be no assurance that any forward-looking statements or information will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or information.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c6f6edc2-df82-4470-8a35-41762a6ca1e9
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/96492ec3-ef2f-4793-a421-978923a21575
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First Majestic Announces Record Free Cash Flow for Q4 2024, FY 2024 Financial Results and Quarterly Dividend Payment
First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce the Company's audited consolidated financial results for the fourth quarter ended December 31, 2024. The full version of the financial statements and the accompanying management's discussion and analysis can be viewed on the Company's website at www.firstmajestic.com or under the Company's profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.govedgar. All amounts are in U.S. dollars unless stated otherwise.
FOURTH QUARTER HIGHLIGHTS
Record Free Cash Flow (+119% Q/Q): The Company realized $68.4 million in free cash flow in the fourth quarter, compared to $31.3 million in the previous quarter. The improvement in free cash flow was driven by improved silver equivalent ("AgEq") production, higher realized silver prices and lower costs during the quarter.
Strengthened Cash Position (+19% Q/Q): At the end of the year, the Company had a cash and restricted cash balance of $308.3 million consisting of $202.2 million cash and cash equivalents and $106.1 million of restricted cash. The Company also ended the year with a strong liquidity position of $364.2 million consisting of $224.5 million in working capital and $139.6 million of available, undrawn revolving credit facility.
Increased Revenue (+18% Q/Q): In the fourth quarter, the Company generated revenues of $172.3 million, up 18% compared to the third quarter of 2024.
Improved Mine Operating Earnings (+69% Q/Q): The Company realized mine operating earnings of $48.2 million compared to $28.5 million in the previous quarter.
Increased Earnings Before Income Tax, Depreciation and Amortization ("EBITDA") (+68% Q/Q): EBITDA for the quarter was $62.0 million compared to $36.9 million in the previous quarter.
Improved Cash Cost (-9% Q/Q): Consolidated cash cost of $13.82 per AgEq ounce for the quarter represented a 9% improvement from $15.17 per AgEq ounce in the previous quarter.
Decreased All-in Sustaining Cost ("AISC") (-3% Q/Q): Consolidated AISC in the fourth quarter was $20.34 per AgEq ounce, representing a 3% decrease from $21.03 per AgEq ounce in the previous quarter.
Record Quarterly Sales at First Mint (+237% Q/Q): First Mint, LLC, the Company's 100%-owned minting facility, set a new record for quarterly sales of $9.1 million compared to $2.7 million in the previous quarter.
Purchased Common Shares: The Company purchased and cancelled an aggregate of 50,000 common shares at an average price of CAD$7.81 per share during the quarter.
Fourth Quarter Dividend: The Company declared a cash dividend of $0.0057 per common share for the fourth quarter of 2024 for shareholders of record as of the close of business on February 28, 2025, to be paid out on or about March 14, 2025.
2024 HIGHLIGHTS
Achieved Annual Production and Cost Guidance: The Company produced 21.7 million AgEq ounces, consisting of 8.4 million silver ounces and 156,542 gold ounces at an average AISC of $21.11 while setting "best in class" record safety performance.
Increased Cash Flow from Operations (+40% Y/Y): The Company realized strong operating cash flows before working capital and taxes of $138.6 million, compared to $99.2 million in 2023.
Realized Strong Revenues (-2% Y/Y): The Company generated annual revenues of $560.6 million, compared to $573.8 million in 2023.
Improved Mine Operating Earnings (+259% Y/Y): The Company realized mine operating earnings of $91.9 million compared to $25.6 million in 2023.
Increased EBITDA (+404% Y/Y): EBITDA for the year ended December 31, 2024 was $127.1 million, compared to a $41.8 million loss in 2023.
Held silver and gold inventory: At the end of the year, the Company held 539,153 ounces of silver and 2,595 ounces of gold bullion inventory with a total fair value of $22.4 million.
Improved Sustainability Score: First Majestic achieved a score of 37 in the S&P Global Corporate Sustainability Assessment ("CSA") published on October 31, 2024, a 32% improvement over our 2023 performance. The Company's 2024 score places First Majestic in the top third of the mining and metals industry. Improvements were equally reflected across all three categories of the CSA - Environmental, Social, and Governance & Economic. The assessment noted significant improvements in First Majestic's Risk & Crisis Management, Business Ethics, IT Security, Water Management, Human Rights and Labour Practices.
Cash Paid Dividends: The Company paid $5.3 million in quarterly dividends to shareholders during 2024.
Acquired Gatos Silver, Inc. ("Gatos"): On January 16, 2025, the Company completed the acquisition of 100% of the issued and outstanding shares of common stock of Gatos, in exchange for 177,433,006 common shares of First Majestic for a total merger consideration of $1.07 billion, pursuant to a Merger Agreement previously announced on September 5, 2024. Gatos holds a 70% joint venture interest in the Cerro Los Gatos Silver Mine, an underground silver mine in Chihuahua, Mexico together with Japan's Dowa Metals & Mining Co., Ltd., which holds the remaining 30% interest.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
| Key Performance Metrics | 2024-Q4 | 2024-Q3 | Change Q4 vs Q3 | 2023-Q4 | Change Q4 vs Q4 |
| Operational | |||||
| Ore Processed / Tonnes Milled | 745,124 | 678,397 | 10% | 652,731 | 14% |
| Silver Ounces Produced | 2,353,865 | 1,967,574 | 20% | 2,612,416 | (10%) |
| Gold Ounces Produced | 39,506 | 41,761 | (5%) | 46,585 | (15%) |
| Silver Equivalent Ounces Produced | 5,713,289 | 5,490,416 | 4% | 6,640,550 | (14%) |
| Cash Costs per Silver Equivalent Ounce(1) | $13.82 | $15.17 | (9%) | $13.01 | 6% |
| All-in Sustaining Cost per Silver Equivalent Ounce(1) | $20.34 | $21.03 | (3%) | $18.50 | 10% |
| Total Production Cost per Tonne(1) | $96.63 | $109.81 | (12%) | $122.76 | (21%) |
| Average Realized Silver Price per Silver Equivalent Ounce(1) | $30.80 | $29.84 | 3% | $24.16 | 27% |
| Financial (in $millions) | |||||
| Revenues | $172.3 | $146.1 | 18% | $136.9 | 26% |
| Mine Operating Earnings | $48.2 | $28.5 | 69% | $17.9 | 169% |
| Net (Loss) Earnings | ($13.5) | ($26.6) | 49% | $10.2 | NM |
| Operating Cash Flows before Non-Cash Working Capital and Taxes | $62.4 | $39.8 | 57% | $36.3 | 72% |
| Capital Expenditures | $36.1 | $34.7 | 4% | $31.6 | 14% |
| Cash and Cash Equivalents | $202.2 | $154.7 | 31% | $125.6 | 61% |
| Restricted Cash | $106.1 | $103.9 | 2% | $125.6 | (16%) |
| Working Capital(1) | $224.5 | $238.2 | (6%) | $188.9 | 19% |
| Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA")(1) | $62.0 | $36.9 | 68% | $33.4 | 85% |
| Adjusted EBITDA(1) | $64.8 | $39.8 | 63% | $37.0 | 75% |
| Free Cash Flow(1) | $68.4 | $31.3 | 119% | $3.8 | NM |
| Shareholders | |||||
| (Loss) Earnings per Share ("EPS") - Basic | ($0.04) | ($0.09) | 56% | $0.04 | (200%) |
| Adjusted EPS(1) | $0.03 | ($0.03) | 200% | ($0.03) | 200% |
NM - Not meaningful
(1) The Company reports certain non-GAAP measures which include cash costs per AgEq ounce produced, cash costs per Au ounce produced, AISC per AgEq ounce produced, all-in sustaining cost per Au ounce produced, total production cost per tonne, average realized silver price per AgEq ounce sold, average realized Au price per ounce sold, working capital, adjusted EPS, EBITDA, adjusted EBITDA, and free cash flow. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate such measures may differ from methods used by other companies with similar descriptions. See "Non-GAAP Measures" at the end of this news release for further details of these measures.
FOURTH QUARTER FINANCIAL RESULTS
The Company generated revenues of $172.3 million during the quarter, a 26% increase compared to $136.9 million of revenues generated in the fourth quarter of 2023. This was primarily attributed to higher average realized silver prices, partially offset by a decrease in payable AgEq ounces sold primarily due to lower production levels at San Dimas and higher inventory levels held at the end of the fourth quarter of 2024.
The Company realized mine operating earnings of $48.2 million compared to $17.9 million in the fourth quarter of 2023, representing an increase of 169%. The increase in mine operating earnings was primarily attributed to a 51% increase in operating earnings at Santa Elena when compared to the fourth quarter of 2023, driven by higher average realized silver prices in the fourth quarter of 2024.
EBITDA for the quarter was $62.0 million compared to $33.4 million in the fourth quarter of 2023. The increase in EBITDA was primarily attributable to the increase in mine operating earnings and lower restructuring costs related to workforce optimization mainly at San Dimas, compared to the fourth quarter of 2023.
Adjusted EBITDA, excluding non-cash or non-recurring items such as share-based payments and unrealized losses on marketable securities for the quarter ended December 31, 2024, was $64.8 million compared to $37.0 million in the fourth quarter of 2023.
Net loss for the quarter was $13.5 million (EPS of ($0.04)) compared to net earnings of $10.2 million (EPS of $0.04) in the fourth quarter of 2023. Net loss for the quarter includes non-cash foreign exchange loss of $3.1 million (EPS of ($0.01)) and non-cash deferred income tax expense of $18.3 million (EPS of ($0.06)), relating primarily to the weakening of the Mexican peso at the end of the quarter compared to the fourth quarter of 2023 and valuation of certain Mexican tax loss carryforwards. On December 31, 2024, the Company held $151.4 million of its cash and value added taxes receivable in Mexican pesos (there is a $9.3 million non-cash impact on the Company's reported net earnings or loss per 10% change in the value of the Mexican peso against the U.S. dollar). The net loss this quarter was primarily attributed to a $40.5 million increase in non-cash deferred income tax expense partially offset by a $30.3 million increase in mine operating earnings as compared to the same quarter of the prior year.
Adjusted net earnings, normalized for non-cash or non-recurring items such as share-based payments, unrealized losses on marketable securities, and deferred income tax for the quarter ended December 31, 2024, was $7.6 million (adjusted EPS of $0.03) compared to an adjusted net loss of $8.3 million (adjusted EPS of ($0.03)) in the fourth quarter of 2023.
The Company's total capital expenditures in the fourth quarter of 2024 were $36.1 million (Q4 2023 - $31.6 million) consisting of $13.6 million for underground development (Q4 2023 - $12.4 million), $11.9 million in exploration (Q4 2023 - $5.3 million), and $10.7 million in property, plant and equipment (Q4 2023 - $13.8 million).
2024 FINANCIAL RESULTS
The Company generated annual revenues of $560.6 million in 2024, 2% lower compared to 2023 due to a 20% decrease in the total number of payable AgEq ounces sold, primarily as a result of the temporary suspension of mining operations at Jerritt Canyon in March 2023. This was partially offset by an increase in payable AgEq ounces produced at Santa Elena, and a 21% increase in the average realized silver price.
Annual mine operating earnings increased to $91.9 million compared to $25.6 million in 2023. The significant improvement in mine operating earnings was primarily driven by a 73% increase in operating earnings at Santa Elena compared to the prior year, attributable to stronger metal recoveries and throughput from Ermitaño that enabled the mine to achieve a new annual production record. In addition, cost efficiency measures implemented by the Company helped offset the strengthening of the Mexican peso in the first half of the year.
Operating cash flow before changes in working capital and taxes during the year was $138.6 million compared to $99.2 million in the prior year, representing a 40% increase.
Adjusted net earnings for the year, excluding non-cash or non-recurring items such as share-based payments, unrealized losses on marketable securities, and deferred income tax were $(41.8) million, or $(0.14) per share, compared to $(23.8) million, or $(0.08) per share in 2023.
The Company ended 2024 with a strong treasury of $308.3 million, consisting of $202.2 million in cash and cash equivalents, as well as $106.1 million in restricted cash. The Company also ended the year with working capital of $224.5 million.
AMENDMENTS TO SHARE REPURCHASE PROGRAM
The Company also announces that it has amended its existing Normal Course Issuer Bid (the "Share Repurchase Program"). As a result of the amendments, in addition to repurchases over the facilities of the Toronto Stock Exchange and/or alternative Canadian trading systems, the Share Repurchase Program now permits the Company to purchase its common shares pursuant to off-market transactions. The purchase price for such off-market transactions may be below the market price of the Company's common shares. All purchases made pursuant to the Share Repurchase Program will be completed in accordance with applicable securities laws.
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 production and cost 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.
Q4 2024 DIVIDEND ANNOUNCEMENT
The Company is pleased to announce that its Board of Directors has declared a cash dividend in the amount of $0.0057 per common share for the fourth quarter of 2024. The dividend will be paid to holders of record of First Majestic's common shares as of the close of business on February 28, 2025, and will be paid out on or about March 14, 2025.
Under the Company's dividend policy, the quarterly dividend per common share is targeted to equal approximately 1% of the Company's net quarterly revenues divided by the number of the Company's common shares outstanding on the record date.
The amount and distribution dates of future dividends remain at the discretion of the Board of Directors. This dividend qualifies as an "eligible dividend" for Canadian income tax purposes. Dividends paid to shareholders outside Canada (non-resident investors) may be subject to Canadian non-resident withholding taxes.
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
Non-GAAP Financial Measures
This news release includes reference to certain financial measures which are not standardized measures under the Company's financial reporting framework. These measures include cash costs per silver equivalent ounce produced, all-in sustaining cost (or "AISC") per silver equivalent ounce produced, cash costs per gold ounce produced, AISC per gold ounce produced, total production cost per tonne, average realized silver price per ounce sold, average realized gold price per ounce sold, working capital, adjusted net earnings and EPS, EBITDA, adjusted EBITDA, and free cash flow. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. These measures are widely used in the mining industry as a benchmark for performance but do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures disclosed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For a complete description of how the Company calculates such measures and a reconciliation of certain measures to GAAP terms please see "Non-GAAP Measures" in the Company's most recent management discussion and analysis filed on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov.
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 timing for the Company's fourth quarter dividend payment and the shareholder record and payable dates in connection with such dividend payment; and the timing for the consolidation of Gatos' financial and operating results into the Company's financial statements. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. As such, investors are cautioned not to place undue reliance upon 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 the coronavirus and COVID-19, and any other 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; relations with local communities; changes in national or local governments; changes in applicable legislation or application 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 http://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/241607
News Provided by Newsfile via QuoteMedia
Pan American Silver Reports Audited Financial Results for 2024, Including Record Revenue, Cash Flow From Operations and Free Cash Flow
- Company provides 2025 Operating Outlook
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:
- Silver production was 6.0 million ounces in Q4 2024 and 21.1 million ounces in FY 2024. Annual silver production was within the 2024 Guidance.
- Gold production was 224.2 thousand ounces in Q4 2024 and a record 892.5 thousand ounces in FY 2024. Gold production in Q4 2024 excludes December production from the La Arena mine (the sale of the mine was completed on December 2, 2024). Annual gold production was within the 2024 Guidance.
- Record revenue of $815.1 million and $2.8 billion in Q4 2024 and FY 2024, respectively.
- Net earnings of $107.8 million, or $0.30 basic earnings per share, in Q4 2024. FY 2024 net earnings of $112.7 million, or $0.31 basic earnings per share.
- Adjusted earnings of $126.9 million, or $0.35 basic adjusted earnings per share, in Q4 2024. FY 2024 adjusted earnings of $286.7 million, or $0.79 basic adjusted earnings per share.
- Record cash flow generated from operating activities of $274.1 million and $724.1 million in Q4 2024 and FY 2024, respectively.
- Record free cash flow of $196.2 million and $445.1 million in Q4 2024 and FY 2024, respectively.
- Silver Segment Cash Costs were $14.06 and $14.30 per ounce in Q4 2024 and FY 2024, respectively. Silver Segment all-in sustaining costs ("AISC") excluding net realizable value ("NRV") inventory adjustments were $19.88 and $18.98 per ounce in Q4 2024 and FY 2024, respectively. FY 2024 Silver Segment Cash Costs and AISC were slightly above the 2024 Guidance ranges.
- Gold Segment Cash Costs were $1,223 and $1,203 per ounce in Q4 2024 and FY 2024, respectively. Gold Segment AISC excluding NRV inventory adjustments were $1,521 and $1,501 per ounce in Q4 2024 and FY 2024, respectively. FY 2024 Gold Segment Cash Costs and AISC were within the 2024 Guidance ranges.
- Capital expenditures totaled $372.4 million in 2024, comprised of $279.0 million of sustaining capital and $93.4 million of project capital.
- As at December 31, 2024, the Company had working capital of $1,033.4 million, inclusive of cash and short-term investments of $887.3 million, and $750.0 million available under its revolving Credit Facility. Total debt of $803.3 million was related to two senior notes, construction and other loans, and leases.
- A cash dividend of $0.10 per common share has been declared, payable on or about March 14, 2025, to holders of record of Pan American's common shares as of the close on March 3, 2025. The dividends are eligible dividends for Canadian income tax purposes.
- Under the Company's Normal Course Issuer Bid ("NCIB"), for the year ended December 31, 2024, 1,720,366 common shares were repurchased for cancellation at an average price of $14.16 per share for a total consideration of $24.3 million. In January 2025, 909,012 common shares were repurchased for cancellation under the NCIB at an average price of $22.00 per share for a total consideration of $20.0 million.
Q4 2024 Project Updates:
- La Colorada - $8.0 million of project capital was spent, primarily on the Skarn project for engineering work and exploration drilling.
- Huaron - $6.5 million of project capital was spent on the construction of the new tailings filtration plant and filter-stack tailings storage facility, which was substantially completed in Q4 2024 and is expected to be fully operational within the first half of 2025. Residual capital accounts payable settlements are expected in 2025 and have been included in the 2025 Operating Outlook.
- Timmins - $1.5 million of project capital was spent to complete construction of the Bell Creek paste backfill plant. The plant is now fully operational and is expected to provide enhanced ground stability and increased mineral resource recovery.
- Jacobina - $4.5 million of project capital was spent in upgrading the plant facility infrastructure and on a study aimed at optimizing the mine's long-term economics and sustainability.
- Escobal - Guatemalan government representatives held working meetings with Xinka representatives in relation to the ongoing Escobal ILO 169 consultation process. Pan American also had working meetings with the government, including with the Vice Minister of Sustainable Development who is responsible for overseeing the consultation process. The Escobal mine remains on care and maintenance and there is no date for a restart of operations.
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.
- Silver production in 2025 is forecast to be between 20.00 to 21.00 million ounces. At La Colorada, the improvement in ventilation conditions is expected to enable higher development rates in 2025 relative to 2024, allowing throughput of up to 2,000 tonnes per day in 2025. At Huaron, the development of the Horizonte zone is expected to drive higher throughput and higher silver grades. Decreases in silver production relative to 2024 are forecasted at Dolores due to the cessation of active mining and the operation entering the residual leaching phase and at San Vicente due to mine sequencing into lower silver grade ores.
- Gold production in 2025 is forecast to be between 735 to 800 thousand ounces, reflecting the disposition of La Arena in 2024 and the cessation of active mining at Dolores, which is entering the residual leaching phase.
- Both silver and gold production are weighted to the second half of 2025, with a corresponding decrease in AISC per ounce over that period.
- Forecasted Silver Segment AISC of between $16.25 and $18.25 per ounce in 2025 reflects the expectation that the new ventilation infrastructure at La Colorada will reduce the mine's AISC per ounce, and for higher gold by-product credits from Cerro Moro; partly offset by additional payments associated with contractual rights to mine concessions adjacent to the La Colorada mine, and higher expected costs at Huaron for operating the new tailings filtration plant and filter-stack tailings storage facility.
- Forecasted Gold Segment AISC of between $1,525 and $1,625 per ounce in 2025. At Shahuindo, operating costs per ounce are expected to increase due to lower grade ore stacked from mine sequencing and a higher proportion of low-grade coarse ores needed to blend with the higher grade fine ores. Sustaining capital postponed from 2024 for waste dump preparation and water treatment projects at Shahuindo is also expected to contribute to higher AISC. At Timmins, an increase in operating costs is expected from the additional costs associated with operating the new paste plant at Bell Creek and labour-driven inflationary pressures, partly offset by a weakening Canadian dollar.
2025 Silver and Gold Production and AISC Forecasts:
Silver Production | Gold Production | AISC | |
(million ounces) | (thousand ounces) | ($ 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:
- La Colorada (Veins) - estimated investment of $10.0 to $12.0 million for exploration, mine infrastructure, and mine equipment leases to access, mine, and expand mineral resource extensions in the deep eastern and southeastern extensions of the higher-grade Candelaria mineralized structure.
- La Colorada (Skarn) - estimated investment of $39.0 to $42.0 million for continued exploration and in-fill drilling, and to advance engineering work, particularly in mine design, de-watering, geotechnical and access studies.
- Huaron - estimated residual project capital of $12.0 to $13.5 million for the new tailings filtration plant and filter-stack tailings storage facility, relating to final payables and lease payments for the tailings filtration plant equipment.
- Timmins - estimated investment of $18.0 to $20.0 million, comprised of $12.5 to $14.5 million for the construction of a new "stage 6" tailings storage facility, and $5.5 million for exploration activities at satellite deposits.
- Jacobina - estimated investment of $11.0 to $12.5 million to advance the mine and plant optimization study that will evaluate alternative mining methods and production rates with the aim of maximizing the mine's long-term economics and sustainability.
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:
- 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.
- 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 revolving 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 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
When Will Silver Go Up?
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.
In this article
What is silver's price performance year-on-year?
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.
What factors affect silver supply and demand?
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.
What is the outlook for silver?
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.
SilverCrest Closes Arrangement with Coeur Mining
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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