VANCOUVER, British Columbia--(BUSINESS WIRE)-- Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan American" or the "Company") today reported unaudited results for the quarter ended March 31, 2023 ("Q1 2023").

"Pan American reported solid results for the first quarter of 2023, with adjusted earnings of $0.10 per share," said Michael Steinmann, President and Chief Executive Officer. "Going forward, Pan American will be a significantly larger, more diversified company following our acquisition of Yamana. Our guidance for 2023 demonstrates the positive impact of the four new mines on production and costs, and we are excited by the growth opportunities the combined portfolio presents."

On March 31, 2023, Pan American completed its previously announced acquisition of all of the issued and outstanding common shares of Yamana Gold Inc. ("Yamana"), following the sale by Yamana of its Canadian assets to Agnico Eagle Mines Limited, by way of a plan of arrangement under the Canada Business Corporations Act(the "Yamana transaction"). The Yamana transaction added four producing mines to Pan American's portfolio: the Jacobina mining complex in Brazil, the El Peñon and Minera Florida mines in Chile, and the Cerro Moro mine in Argentina ("Acquired Operations"), plus several exploration and development projects in Chile, Brazil and Argentina. Operating and financial results reported in this news release, except for the financial position as at March 31, 2023, reflect only Pan American's original mines, specifically: La Colorada, Huaron, San Vicente, Manantial Espejo, Timmins, Shahuindo, La Arena and Dolores (the "Original Assets").

The following highlights for Q1 2023 include certain measures that are not generally accepted accounting principle ("non-GAAP") financial measures. Please refer to the section titled “Alternative Performance (Non-GAAP) Measures” at the end of this news release for further information on these measures.

Consolidated Q1 2023 Highlights:

Silver production of 3.9 million ounces and gold production of 122.7 thousand ounces. As previously disclosed, Manantial Espejo has been placed on care and maintenance following the completion of mining at the end of 2022; some residual production was recorded for Q1 2023.
Revenue was $390.3 million, inclusive of a negative $3.8 million price adjustment on open concentrate shipments.
Net earnings of $16.5 million ($0.08 basic earnings per share), including $18.9 million in transaction and integration costs related to the Yamana transaction and $12.7 million in severance provisions. Adjusted earnings were $21.2 million ($0.10 basic adjusted earnings per share).
Cash flow from operations of $51.3 million, net of $30.7 million in tax payments.
Silver Segment Cash Costs and All-in Sustaining Costs ("AISC") per silver ounce of $12.19 and $14.13, respectively. Excluding Net Realizable Value ("NRV") inventory adjustments, Silver Segment AISC was $14.11 per ounce.
Gold Segment Cash Costs and AISC per gold ounce of $1,120 and $1,196, respectively. Excluding NRV inventory adjustments, Gold Segment AISC was $1,361 per ounce.
Pan American's financial position as at March 31, 2023, incorporates the assets and liabilities Pan American assumed through the Yamana transaction. As at March 31, 2023, Pan American had working capital of $826.6 million, inclusive of cash and short-term investment balances of $513.1 million ($204.7 million related to the Minera Agua Rica Alumbrera ("MARA") project in Argentina), as well as $425 million available under its $750 million revolving sustainability-linked credit facility ("SL-Credit Facility"). Total debt of $1,187.0 million relates to the SL-Credit Facility, construction loans and leases, and two senior notes Pan American assumed through the Yamana transaction: $500 million with a coupon of 2.63% maturing in 2031 and $283 million with a coupon of 4.625% maturing in 2027. Moody's Investors Service and S&P Global have assigned Pan American with an investment grade credit rating.
A cash dividend of $0.10 per common share with respect to Q1 2023 was previously declared on March 24, 2023, payable on or about May 12, 2023, to holders of record of Pan American’s common shares as of the close of markets on April 14, 2023. The dividends are eligible dividends for Canadian income tax purposes. Pan American selected that record and payment date to harmonize its dividend with respect to Q1 2023 with Yamana’s normal course dividend timing for payment of a first quarter dividend. Subsequent dividends to be declared by Pan American are expected to follow Pan American's previous schedule of dividend payments.
Two ILO 169 consultation meetings for the Escobal mine were held in Q1 2023, as well as several working meetings between Guatemala's Ministry of Energy and Mines and Xinka Indigenous community representatives. At this time, no date has been set for a potential restart of operations at Escobal.
CONSOLIDATED RESULTS


Three months ended March 31, 2023 Three months ended March 31, 2022

Weighted average shares during period (millions) 210.7 210.5

Shares outstanding end of period (millions) 364.4 210.5

Three months ended March 31, 2023 2022
FINANCIAL
Revenue $ 390.3 $ 439.9
Mine operating earnings $ 77.2 $ 66.8
Net earnings $ 16.5 $ 76.8
Basic earnings per share(1) $ 0.08 $ 0.36
Adjusted earnings(2) $ 21.2 $ 31.9

Basic adjusted earnings per share(1) $ 0.10 $ 0.15

Net cash generated from operating activities $ 51.3 $ 68.8

Net cash generated from operating activities before changes in working capital(2) $ 43.3 $ 83.6

Sustaining capital expenditures(2) $ 32.5 $ 56.0

Non-sustaining capital expenditures(2) $ 11.5 $ 9.8

Cash dividend paid per share $ 0.10 $ 0.12

PRODUCTION
Silver (thousand ounces) 3,891 4,619

Gold (thousand ounces) 122.7 131.0

Zinc (thousand tonnes) 10.6 10.2

Lead (thousand tonnes) 5.3 4.7

Copper (thousand tonnes) 1.2 1.8

CASH COSTS(2) ($/ounce)
Silver Segment 12.19 10.23
Gold Segment 1,120 1,069

AISC(2) ($/ounce)
Silver Segment 14.13 13.41

Gold Segment 1,196 1,502

AVERAGE REALIZED PRICES(3)
Silver ($/ounce) 22.75 24.03
Gold ($/ounce) 1,895 1,880
Zinc ($/tonne) 3,133 3,792
Lead ($/tonne) 2,160 2,341
Copper ($/tonne) 8,903 9,767

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

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

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

Cash Costs, AISC, adjusted earnings, basic adjusted earnings per share, sustaining and non-sustaining capital, working capital, total debt and net cash are non-GAAP financial measures. Please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.

This news release should be read in conjunction with Pan American's unaudited Condensed Interim Consolidated Financial Statements and our Management's Discussion and Analysis ("MD&A") for the three months ended March 31, 2023. This material is available on Pan American’s website at panamericansilver.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

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