
Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) announces its preliminary production results for 2023 and its guidance for 2024. The 2023 production results reflect the addition of four producing mines following Pan American’s acquisition of Yamana Gold Inc. which was completed on March 31, 2023; accordingly, annual consolidated production results and individual production results from Jacobina, El Peñon, Minera Florida and Cerro Moro reflect production from the Acquired Operations during the nine-month period from March 31, 2023 to December 31, 2023, unless otherwise expressly stated. Production for the original Pan American operations reflects the full 12-month period of 2023.
“Our 2023 production results reflect the significant contribution from the assets we acquired through the Yamana transaction, and are broadly in line with our expectations,” said Michael Steinmann, President and Chief Executive Officer. “We expect 2024 to deliver a further increase in silver and gold production relative to 2023, with a full year contribution from the Acquired Operations combined with higher production at La Colorada following the completion of the new ventilation infrastructure mid-year. Our priorities for 2024 are the continued focus on the safe, cost-efficient operation of our mines, the completion of a study to define an optimized production rate for Jacobina, and the advancement of our La Colorada Skarn project.”
PRELIMINARY 2023 PRODUCTION RESULTS
Figures are preliminary and subject to final adjustment. The final production figures as well as Cash Costs and All-in Sustaining Costs will be provided in Pan American’s financial results for the fourth quarter of 2023 and full-year 2023
Silver Production(1)
(thousand ounces) |
Gold Production(1)
(thousand ounces) |
|||||||||
Q4 2023 | FY 2023 | Q4 2023 | FY 2023 | |||||||
Silver Segment: | ||||||||||
La Colorada (Mexico) | 806 | 4,392 | 0.4 | 2.3 | ||||||
Cerro Moro (Argentina) | 886 | 3,547 | 30.3 | 84.6 | ||||||
Huaron (Peru) | 905 | 3,608 | 0.2 | 1.1 | ||||||
San Vicente (Bolivia)(2) | 738 | 2,978 | — | 0.1 | ||||||
Manantial Espejo (Argentina)(3) | — | 191 | — | 1.7 | ||||||
Gold Segment: | ||||||||||
Jacobina (Brazil) | — | — | 51.1 | 147.8 | ||||||
El Peñon (Chile) | 853 | 2,906 | 33.9 | 95.7 | ||||||
Timmins (Canada)(4) | 4 | 16 | 35.1 | 132.9 | ||||||
Shahuindo (Peru) | 69 | 276 | 34.9 | 140.1 | ||||||
La Arena (Peru) | 17 | 47 | 31.7 | 97.1 | ||||||
Minera Florida (Chile) | 80 | 283 | 24.7 | 72.4 | ||||||
Dolores (Mexico) | 477 | 2,194 | 25.4 | 107.1 | ||||||
Total Production | 4,835 | 20,437 | 267.8 | 882.9 | ||||||
(1) | The FY 2023 production results reflect the nine-month period from March 31, 2023 to December 31, 2023 for the Acquired Operations and the full 12-month period of 2023 for the original Pan American operations. | |||||||||
(2) | San Vicente data represents Pan American’s 95.0% interest in the mine’s production. | |||||||||
(3) | Mining activities were completed at Manantial Espejo at the end of 2022, with residual processing completed in January 2023. | |||||||||
(4) | The Timmins operation is comprised of the Timmins West and Bell Creek mines and the Bell Creek mill, together “Timmins”. | |||||||||
2023 Base Metal Production
(thousand tonnes) | Q4 2023 | FY 2023 | ||
Zinc | 9.4 | 38.8 | ||
Lead | 4.2 | 18.7 | ||
Copper | 1.4 | 5.0 |
2023 Preliminary Quantities and Realized Prices of Metal Sold
Consolidated | Realized Metal Prices(1) | Quantities of Metal Sold(2) | |||||||||
Q4 2023 | FY 2023 | Q4 2023 | FY 2023 | ||||||||
Silver | $ | 22.33 | $ | 22.94 | 4,959 | 20,951 | |||||
Gold | $ | 1,980 | $ | 1,951 | 270.4 | 893.9 | |||||
Zinc | $ | 2,493 | $ | 2,656 | 9.7 | 36.8 | |||||
Lead | $ | 2,121 | $ | 2,146 | 4.0 | 17.9 | |||||
Copper | $ | 8,146 | $ | 8,475 | 1.0 | 4.1 | |||||
(1) | Metal prices stated as dollars per ounce for silver and gold, and dollars per tonne for zinc, lead and copper, inclusive of final settlement adjustments on concentrate sales. | ||||||||||
(2) | Metal quantities stated as thousand of ounces for silver and gold and thousands of tonnes for zinc, lead and copper. |
Q4 2023 and FY 2023 FINANCIAL RESULTS
Pan American plans to release its results for Q4 2023 and audited results for FY 2023 on February 21, 2024, after market close.
2024 GUIDANCE
The following provides Pan American’s operating outlook for 2024. Pan American reports mines under either a Silver Segment or a Gold Segment with costs 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.
2024 Production and Cost Forecast
Silver Production | Gold Production | Cash Costs | AISC | ||||||
(million ounces) | (thousand ounces) | ($ per ounce)(1) | ($ per ounce)(1) | ||||||
Silver Segment: | |||||||||
La Colorada (Mexico) | 5.3 – 5.7 | 2 | 16.60 – 19.30 | 21.00 – 24.00 | |||||
Cerro Moro (Argentina) | 3.2 – 3.5 | 93 – 115 | 3.20 – 6.70 | 8.00 – 11.50 | |||||
Huaron (Peru) | 3.5 – 3.8 | — | 9.30 – 11.20 | 15.25 – 17.25 | |||||
San Vicente (Bolivia)(2) | 2.9 – 3.1 | — | 15.30 – 16.60 | 17.30 – 18.30 | |||||
Total | 14.9 – 16.1 | 95 – 117 | 11.70 – 14.10 | 16.00 – 18.50 | |||||
Gold Segment: | |||||||||
Jacobina (Brazil) | — | 185 – 203 | 970 – 1,050 | 1,250 – 1,350 | |||||
El Peñon (Chile) | 3.6 – 3.9 | 120 – 135 | 950 – 1,030 | 1,200 – 1,300 | |||||
Timmins (Canada) | — | 125 – 135 | 1,530 – 1,630 | 1,830 – 1,950 | |||||
Shahuindo (Peru) | 0.2 – 0.3 | 122 – 144 | 970 – 1,050 | 1,550 – 1,650 | |||||
La Arena (Peru) | — | 83 – 95 | 1,675 – 1,775 | 1,675 – 1,775 | |||||
Minera Florida (Chile) | 0.4 – 0.5 | 85 – 96 | 1,410 – 1,550 | 1,650 – 1,800 | |||||
Dolores (Mexico) | 1.9 – 2.2 | 65 – 75 | 1,275 – 1,375 | 1,275 – 1,375 | |||||
Total | 6.1 – 6.9 | 785 – 883 | 1,165 – 1,260 | 1,475 – 1,575 | |||||
Total Production | 21.0 – 23.0 | 880 – 1,000 | n/a | n/a | |||||
(1) | Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this news release for further information on this measure. | ||||||||
(2) | San Vicente data represents Pan American’s 95.0% interest in the mine’s production. |
General 2024 Forecast Assumptions:
Mine Specific 2024 Forecast Assumptions:
2024 Base Metal Production Forecast
Consolidated | Zinc
(kt) |
Lead
(kt) |
Copper
(kt) |
|||
42 – 46 | 19 – 22 | 4 |
2024 Expenditures Forecast
($ millions) | |||
Sustaining Capital | |||
La Colorada (Mexico) | 22.5 – 23.0 | ||
Cerro Moro (Argentina) | 14.0 – 15.5 | ||
Huaron (Peru) | 17.5 – 18.5 | ||
San Vicente (Bolivia)(1) | 4.5 – 5.5 | ||
Jacobina (Brazil) | 53.0 – 55.0 | ||
El Peñon (Chile) | 30.0 – 32.0 | ||
Timmins (Canada) | 39.0 – 40.0 | ||
Shahuindo (Peru) | 76.0 – 80.0 | ||
La Arena (Peru) | 18.0 – 19.0 | ||
Minera Florida (Chile) | 20.0 – 21.0 | ||
Dolores (Mexico) | 0.5 – 0.5 | ||
Sustaining Capital Sub-total | 295.0 – 310.0 | ||
Project Capital | |||
La Colorada projects (Mexico) | 25.0 – 26.0 | ||
Huaron projects (Peru) | 30.0 – 31.0 | ||
Jacobina projects (Brazil) | 14.0 – 15.5 | ||
Timmins projects (Canada) | 11.0 – 12.5 | ||
Project Capital Sub-total | 80.0 – 85.0 | ||
Total Capital Expenditures | 375.0 – 395.0 | ||
Reclamation Expenditures | |||
Dolores (Mexico) | 11.0 – 12.0 | ||
Jacobina (Brazil) | 8.0 – 9.0 | ||
Alamo Dorado (Mexico) | 8.0 – 10.0 | ||
Other | 8.0 – 9.0 | ||
Total Reclamation Expenditures | 35.0 – 40.0 | ||
Care and Maintenance Expenditures | |||
Escobal (Guatemala) | 20.0 – 25.0 | ||
Other | 5.0 | ||
Total Care and Maintenance Expenditures | 25.0 – 30.0 | ||
General and Administrative | 70.0 – 75.0 | ||
Regional Greenfield Exploration | 10.0 – 12.0 | ||
Taxes Paid | 95.0 – 100.0 | ||
(1) | Capital expenditures and reclamation expenditures at San Vicente are shown at a 100% ownership. | ||
Planned Expenditures in 2024 Reflect the Following:
Technical Information
Scientific and technical information contained in this news release has been reviewed and approved by Martin Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, and Christopher Emerson, FAusIMM, Vice President Exploration and Geology, each of whom are Qualified Persons, as the term is defined in Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
For additional information about Pan American’s material mineral properties prior to the completion of the Yamana transaction, please refer to Pan American’s Annual Information Form dated February 22, 2023, filed at www.sedarplus.ca, or Pan American’s most recent Form 40-F filed with the Securities and Exchange Commission (the “SEC”). For further information about the material mineral projects acquired pursuant to the Yamana transaction, please refer to Yamana’s Annual Information Form dated March 29, 2023, filed at www.sedarplus.ca or Yamana’s most recent Form 40-F filed with the SEC.
About Pan American Silver
Pan American Silver 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 three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management.
AbraSilver Resource Corp. (TSX-V: ABRA) is pleased to announce th... READ MORE
Troilus Gold Corp. (TSX: TLG) (OTCQX: CHXMF) (FSE: CM5R) announce... READ MORE
PPX Mining Corp. (TSX-V: PPX) (BVL: PPX) is pleased to announce t... READ MORE
Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) grew attributable ... READ MORE
0.96 g/t Au over 24.4 meters, including 1.94 g/t Au over 6.1 mete... READ MORE