"Pan American is the world's second largest primary silver producer, providing enhanced exposure to silver through a diversified portfolio of assets, large reserves and growing production. We own and operate mines in Mexico, Peru, Canada, Argentina and Bolivia. In addition, we own the Escobal mine in Guatemala that is currently not operating. In 2019, we celebrate our silver anniversary: 25 years of operating in Latin America, earning an industry-leading reputation for operational excellence and corporate social responsibility. We are headquartered in Vancouver, B.C. and our shares trade on NASDAQ and the Toronto Stock Exchange under the symbol "PAAS”.
Diversified portfolio of assets.
Catalysts for growth.
Strong balance sheet.
Annual Production Silver, oz per year
Annual Proven & Probable Reserves Silver, Moz per year
Mineral Authority: NI 43-101 , SEOs: No
All data is attributable unless otherwise stated in footnotes. Mineral resources are exclusive of reserves unless otherwise stated in footnotes.
This presentation of Pan American Silver Corp. (“Pan American” or the “Company”), which includes reference to the assets acquired in the Tahoe Resources Inc. (“Tahoe”) February 22, 2019 acquisition, refers to various non-GAAP measures, such as cash costs per payable ounce of silver, net of by-product credits (“Cash Costs”), all-in sustaining cost per silver ounce sold (“AISCSOS”), all-in sustaining cost (“AISC”), free cash flow, operating margin, operating margin per ounce, total debt, adjusted (loss) earnings, adjusted (loss) earnings per share and working capital. Free cash flow is calculated as net cash generated from operating activities less cash invested in sustaining capital. Pan American believes the inclusion of sustaining capital investments better reflects total operating cash flows. Operating 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.
These measures do not have a standardized meaning prescribed by IFRS as an indicator of performance, and may differ from methods used by other companies. Readers should refer to the “Alternative Performance (non-GAAP) Measures” section in Pan American’s and “Non-GAAP Financial Measures” section in Tahoe’s Management’s Discussion and Analysis for the periods ended December 31, 2018 and September 30, 2018, respectively, available at www.sedar.com.
Reporting Currency and Financial Information
Unless we have specified otherwise, all references to dollar amounts or $ are to United States dollars.
Cautionary Note Regarding Forward Looking Statements and Information
Certain of the statements and information in this presentation 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 presentation relate to, among other things, growth profile and opportunities as result of our acquisition of Tahoe, operating metrics, production targets for Pan American and Tahoe’s operations in 2018, AISC targets for 2019, our 2019 forecast, completion of the ILO 169 consultation process, community engagement and re-issuance of licenses and permits to enable the restart of the Escobal mine and production from such mine, whether the CVR payment condition will be met and the subsequent exchange of the CVRs, expansion of the La Colorada mine and estimated timing for the initial mineral resource estimate, the development of Navidad, combined financial position and the intention to reduce debt incurred through the Tahoe acquisition, access to capital, potential non-core asset sales and timing for such sales, operating synergies from integration with Tahoe, operating margins, shareholder returns, cost profile, integration plans, the timing for full ramp-up of the 36,000 tpd expansion at Shahuindo and the operational improvements expected from the Bell Creek shaft expansion.
These 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: our ability to successfully integrate the operations and employees and realize synergies and cost savings at the times, and to the extent, anticipated; tonnage of ore to be mined and processed; ore grades and recoveries; prices for silver, gold and base metals remaining as estimated; currency exchange rates remaining as estimated; capital, decommissioning and reclamation estimates; our mineral reserve and recourse 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; 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 presentation and Pan American has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: restart of the Escobal mine, expansion of the La Colorada mine, development of Navidad, 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 (such as the Canadian dollar, Peruvian sol, Mexican peso, Argentine peso, Bolivian boliviano and Guatemalan quetzal versus the U.S. dollar); 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; 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 Pan American’s Business” in Pan American’s most recent form 40-F and Annual Information Form and under the caption “Risk Factors” in Pan American’s management information circular dated December 4, 2018 with respect to the arrangement with Tahoe and the special meeting of Pan American’s shareholders on January 8, 2019, each 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.
Scientific and technical information contained in this presentation with respect to Pan American Silver Corp. has been reviewed and approved by Martin Wafforn, P.Eng., SVP Technical Services and Process Optimization, and Chris Emerson, FAusIMM, VP Business Development and Geology, who are Pan American’s qualified persons for the purposes of National Instrument 43-101 (“NI 43-101”). Mineral reserves in this presentation were prepared under the supervision of, or were reviewed by, Martin Wafforn and Chris Emerson.
Technical information in this document relating to Tahoe has been approved by Tom Fudge, former Vice President Operations of Tahoe, a Qualified Person as defined by NI 43-101.
See Pan American’s Annual Information Form dated March 12, 2019, available at www.sedar.com for further information on Pan American’s material mineral properties, including information concerning associated QA/QC and data verification matters, the key assumptions, parameters and methods used by the Pan American to estimate mineral reserves and mineral resources, and for a detailed description of known legal, political, environmental, and other risks that could materially affect Pan American’s business and the potential development of Pan American’s mineral reserves and resources. Please also refer to Pan American’s press release dated October 23, 2018, with respect to the La Colorada mine exploration results.
See Tahoe’s Annual Information Form dated February 22, 2018, available at www.sedar.com for further information on Tahoe’s material mineral properties, including information concerning associated QA/QC and data verification matters, the key assumptions, parameters and methods used by the Tahoe to estimate mineral reserves and mineral resources, and for a detailed description of known legal, political, environmental, and other risks that could materially affect Pan American’s business and the potential development of Tahoe’s mineral reserves and resources.