Form 20-F | Form 40-F | X |
Exhibit | Description | |||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
99.4 | ||||||||
99.5 |
Pan American Silver Corp. | ||||||||
(Registrant) | ||||||||
Date: November 7, 2023 | By: | /s/ "Delaney Fisher" | ||||||
Delaney Fisher | ||||||||
SVP, Associate General Counsel and Corporate Secretary |
Condensed Interim Consolidated Statements of Financial Position (unaudited, in millions of U.S. dollars) |
September 30, | December 31, | |||||||
2023 | 2022 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents (Note 24) | $ | 347.5 | $ | 107.0 | ||||
Investments (Note 7) | 38.5 | 35.3 | ||||||
Trade and other receivables | 150.0 | 136.6 | ||||||
Income tax receivables | 64.5 | 40.0 | ||||||
Inventories (Note 8) | 701.4 | 471.6 | ||||||
Other assets (Note 9) | 32.8 | 13.9 | ||||||
Asset held for sale (Note 10) | 141.8 | — | ||||||
1,476.5 | 804.4 | |||||||
Non-current assets | ||||||||
Mineral properties, plant and equipment (Note 10) | 5,885.1 | 2,226.4 | ||||||
Long-term inventories (Note 8) | 60.3 | 26.3 | ||||||
Long-term tax receivables | 20.8 | 8.5 | ||||||
Deferred tax assets | 66.0 | 55.9 | ||||||
Long-term investments (Note 12) | — | 121.2 | ||||||
Other long-term assets (Note 13) | 25.3 | 5.8 | ||||||
Total assets | $ | 7,534.0 | $ | 3,248.5 | ||||
Liabilities | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued liabilities (Note 14) | $ | 477.5 | $ | 308.0 | ||||
Provisions (Note 15) | 28.7 | 17.9 | ||||||
Lease obligations (Note 16) | 39.6 | 13.6 | ||||||
Debt (Note 17) | 14.8 | 13.7 | ||||||
Income tax payables | 39.9 | 25.8 | ||||||
Other liabilities | 1.0 | 1.8 | ||||||
Liabilities relating to asset held for sale (Note 10) | 42.9 | — | ||||||
644.4 | 380.8 | |||||||
Non-current liabilities | ||||||||
Long-term provisions (Note 15) | 388.1 | 285.3 | ||||||
Deferred tax liabilities | 733.4 | 140.3 | ||||||
Long-term lease obligations (Note 16) | 49.8 | 19.5 | ||||||
Long-term debt (Note 17) | 704.9 | 180.0 | ||||||
Other long-term liabilities (Note 18) | 106.3 | 41.0 | ||||||
Total liabilities | 2,626.9 | 1,046.9 | ||||||
Equity (Note 19) | ||||||||
Issued capital | 5,963.0 | 3,140.0 | ||||||
Share option reserve | 93.8 | 93.3 | ||||||
Investment revaluation reserve (Note 6c) | (27.3) | (3.0) | ||||||
Deficit | (1,181.2) | (1,034.8) | ||||||
Total equity attributable to Company shareholders | 4,848.3 | 2,195.5 | ||||||
Non-controlling interests | 58.8 | 6.1 | ||||||
Total equity | 4,907.1 | 2,201.6 | ||||||
Total liabilities and equity | $ | 7,534.0 | $ | 3,248.5 |
"signed" | Gillian Winckler, Director | "signed" | Michael Steinmann, Director |
PAN AMERICAN SILVER CORP. | 1 |
Condensed Interim Consolidated Statements of Earnings and Comprehensive Earnings (unaudited, in millions of U.S. dollars and thousands of shares) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Revenue (Note 25) | $ | 616.3 | $ | 338.9 | $ | 1,646.5 | $ | 1,119.3 | ||||||
Cost of sales (Note 25) | ||||||||||||||
Production costs (Note 20) | (402.2) | (275.1) | (1,038.3) | (842.2) | ||||||||||
Depreciation and amortization | (139.8) | (77.9) | (362.9) | (236.8) | ||||||||||
Royalties | (12.4) | (7.7) | (35.6) | (27.0) | ||||||||||
(554.4) | (360.7) | (1,436.8) | (1,106.0) | |||||||||||
Mine operating earnings (loss) (Note 25) | 61.9 | (21.8) | 209.7 | 13.3 | ||||||||||
General and administrative | (15.0) | (6.8) | (42.9) | (25.9) | ||||||||||
Exploration and project development | (3.7) | (2.8) | (10.8) | (9.8) | ||||||||||
Mine care and maintenance (Note 21) | (24.2) | (12.7) | (73.1) | (34.6) | ||||||||||
Foreign exchange gains (losses) | 14.6 | (2.2) | 16.8 | (10.4) | ||||||||||
Impairment charges (Note 11) | — | — | (42.4) | (99.1) | ||||||||||
Derivative (losses) gains (Note 6d) | (4.2) | (6.5) | 1.2 | 1.5 | ||||||||||
Mineral properties, plant and equipment gains (losses) | 10.0 | (0.6) | 8.3 | (1.3) | ||||||||||
(Loss) gains and income from associates (Note 12) | — | — | (0.4) | 45.0 | ||||||||||
Transaction and integration costs (Note 4) | (0.6) | — | (25.0) | — | ||||||||||
Other income | 0.5 | 2.3 | 1.3 | 7.1 | ||||||||||
Earnings (loss) from operations | 39.3 | (51.1) | 42.7 | (114.2) | ||||||||||
Investment loss (Note 6b) | (7.8) | (12.6) | (8.8) | (17.5) | ||||||||||
Interest and finance expense (Note 22) | (28.0) | (5.6) | (66.9) | (16.1) | ||||||||||
Earnings (loss) before income taxes | 3.5 | (69.3) | (33.0) | (147.8) | ||||||||||
Income tax expense (Note 26) | (26.2) | (1.9) | (20.6) | (20.2) | ||||||||||
Net loss | $ | (22.7) | $ | (71.2) | $ | (53.6) | $ | (168.0) | ||||||
Net loss attributable to: | ||||||||||||||
Equity holders of the Company | $ | (21.8) | $ | (71.5) | $ | (52.2) | $ | (169.0) | ||||||
Non-controlling interests | (0.9) | 0.3 | (1.4) | 1.0 | ||||||||||
$ | (22.7) | $ | (71.2) | $ | (53.6) | $ | (168.0) | |||||||
Other comprehensive loss, net of taxes | ||||||||||||||
Items that will not be reclassified to net earnings: | ||||||||||||||
Loss on investments, net of tax (Note 6c, 26) | $ | (3.5) | $ | (20.4) | $ | (24.3) | $ | (32.6) | ||||||
Total comprehensive loss | $ | (26.2) | $ | (91.6) | $ | (77.9) | $ | (200.6) | ||||||
Total comprehensive loss attributable to: | ||||||||||||||
Equity holders of the Company | $ | (25.3) | $ | (91.9) | $ | (76.5) | $ | (201.6) | ||||||
Non-controlling interests | (0.9) | 0.3 | (1.4) | 1.0 | ||||||||||
$ | (26.2) | $ | (91.6) | $ | (77.9) | $ | (200.6) | |||||||
Loss per share attributable to common shareholders (Note 23) | ||||||||||||||
Basic loss per share | $ | (0.06) | $ | (0.34) | $ | (0.17) | $ | (0.80) | ||||||
Diluted loss per share | $ | (0.06) | $ | (0.34) | $ | (0.17) | $ | (0.80) | ||||||
Weighted average shares outstanding (in 000’s) Basic | 364,439 | 210,531 | 313,750 | 210,503 | ||||||||||
Weighted average shares outstanding (in 000’s) Diluted | 364,439 | 210,531 | 313,750 | 210,503 |
PAN AMERICAN SILVER CORP. | 2 |
Condensed Interim Consolidated Statements of Cash Flows (unaudited, in millions of U.S. dollars) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Operating activities | ||||||||||||||
Net loss for the period | $ | (22.7) | $ | (71.2) | $ | (53.6) | $ | (168.0) | ||||||
Income tax expense (Note 26) | 26.2 | 1.9 | 20.6 | 20.2 | ||||||||||
Depreciation and amortization | 139.8 | 77.9 | 362.9 | 236.8 | ||||||||||
Loss (gains and income) from associates (Note 12) | — | — | 0.4 | (45.0) | ||||||||||
Impairment charges (Note 11) | — | — | 42.4 | 99.1 | ||||||||||
Net realizable value inventory (recovery) expense (Note 20) | (7.9) | 15.1 | (31.6) | 92.3 | ||||||||||
Accretion on closure and decommissioning provision (Notes 15, 22) | 10.2 | 3.7 | 26.0 | 11.1 | ||||||||||
Investment loss (Note 6b) | 7.8 | 12.6 | 8.8 | 17.5 | ||||||||||
Interest paid | (16.4) | (1.6) | (34.0) | (4.4) | ||||||||||
Interest received | 5.1 | 1.3 | 12.3 | 2.0 | ||||||||||
Income taxes paid | (35.8) | (20.4) | (117.0) | (121.1) | ||||||||||
Other operating activities (Note 24) | 11.3 | 13.5 | 32.4 | 16.5 | ||||||||||
Net change in non-cash working capital items (Note 24) | (3.0) | 21.6 | 13.3 | (13.0) | ||||||||||
$ | 114.6 | $ | 54.4 | $ | 282.9 | $ | 144.0 | |||||||
Investing activities | ||||||||||||||
Payments for mineral properties, plant and equipment | $ | (108.7) | $ | (69.1) | $ | (260.2) | $ | (202.4) | ||||||
Cash acquired from Yamana Gold Inc. (Note 4) | — | — | 259.5 | — | ||||||||||
Cash disposed in sale of subsidiaries (Note 5) | (194.1) | — | (194.1) | — | ||||||||||
Cash proceeds from sale of subsidiaries (Note 5) | 498.6 | — | 503.6 | — | ||||||||||
Proceeds from dispositions and mineral property, plant and equipment | 2.4 | 0.5 | 2.9 | 8.2 | ||||||||||
(Purchase of) proceeds from disposal of investments | (8.1) | (0.3) | 144.7 | 0.7 | ||||||||||
Net proceeds from derivatives | 3.6 | 1.2 | 12.1 | 6.3 | ||||||||||
$ | 193.7 | $ | (67.7) | $ | 468.5 | $ | (187.2) | |||||||
Financing activities | ||||||||||||||
Proceeds from common shares issued | $ | — | $ | 0.2 | $ | — | $ | 0.8 | ||||||
Distributions to non-controlling interests | 7.3 | — | 11.5 | — | ||||||||||
Dividends paid | (36.5) | (23.2) | (94.0) | (73.7) | ||||||||||
Proceeds from debt (Note 17) | 15.0 | 2.5 | 315.0 | 3.3 | ||||||||||
Repayment of debt (Note 4,17) | (309.8) | (1.6) | (713.9) | (3.6) | ||||||||||
Payment of equipment leases | (12.4) | (4.3) | (24.9) | (11.1) | ||||||||||
$ | (336.4) | $ | (26.4) | $ | (506.3) | $ | (84.3) | |||||||
Effects of exchange rate changes on cash and cash equivalents | (1.3) | (2.0) | (4.5) | (3.0) | ||||||||||
(Decrease) increase in cash and cash equivalents | (29.4) | (41.7) | 240.6 | (130.5) | ||||||||||
Cash held for sale (Note 10) | (0.1) | — | (0.1) | — | ||||||||||
Cash and cash equivalents at the beginning of the period | 367.5 | 194.8 | 107.0 | 283.6 | ||||||||||
Cash held for sale at the beginning of the period | 9.5 | — | — | — | ||||||||||
Cash and cash equivalents at the end of the period | $ | 347.5 | $ | 153.1 | $ | 347.5 | $ | 153.1 |
PAN AMERICAN SILVER CORP. | 3 |
Condensed Interim Consolidated Statements of Changes in Equity (unaudited, in millions of U.S. dollars and thousands of shares) |
Attributable to equity holders of the Company | ||||||||||||||||||||||||||
Issued shares | Issued capital | Share option reserve | Investment revaluation reserve | Deficit | Total | Non- controlling interests | Total equity | |||||||||||||||||||
Balance, December 31, 2021 | 210,458 | $ | 3,136.2 | $ | 93.4 | $ | — | $ | (598.0) | $ | 2,631.6 | $ | 4.5 | $ | 2,636.1 | |||||||||||
Total comprehensive loss | ||||||||||||||||||||||||||
Net loss for the year | — | — | — | — | (341.7) | (341.7) | 1.6 | (340.1) | ||||||||||||||||||
Other comprehensive loss | — | — | — | (3.0) | — | (3.0) | — | (3.0) | ||||||||||||||||||
— | — | — | (3.0) | (341.7) | (344.7) | 1.6 | (343.1) | |||||||||||||||||||
Shares issued on the exercise of stock options | 79 | 1.3 | (0.3) | — | — | 1.0 | — | 1.0 | ||||||||||||||||||
Shares issued as compensation | 144 | 2.5 | — | — | — | 2.5 | — | 2.5 | ||||||||||||||||||
Share-based compensation on option grants | — | — | 0.2 | — | — | 0.2 | — | 0.2 | ||||||||||||||||||
Distributions by subsidiaries to non-controlling interests | — | — | — | — | (0.4) | (0.4) | — | (0.4) | ||||||||||||||||||
Dividends paid | — | — | — | — | (94.7) | (94.7) | — | (94.7) | ||||||||||||||||||
Balance, December 31, 2022 | 210,681 | $ | 3,140.0 | $ | 93.3 | $ | (3.0) | $ | (1,034.8) | $ | 2,195.5 | $ | 6.1 | $ | 2,201.6 | |||||||||||
Total comprehensive loss | ||||||||||||||||||||||||||
Net loss for the period | — | — | — | — | (52.2) | (52.2) | (1.4) | (53.6) | ||||||||||||||||||
Other comprehensive loss | — | — | — | (24.3) | — | (24.3) | — | (24.3) | ||||||||||||||||||
— | — | — | (24.3) | (52.2) | (76.5) | (1.4) | (77.9) | |||||||||||||||||||
The Acquisition (Note 4) | 153,758 | 2,823.0 | — | — | — | 2,823.0 | 489.2 | 3,312.2 | ||||||||||||||||||
Dispositions (Note 5) | — | — | — | — | — | — | (446.8) | (446.8) | ||||||||||||||||||
Share-based compensation on option grants | — | — | 0.5 | — | — | 0.5 | — | 0.5 | ||||||||||||||||||
Distributions by subsidiaries to non-controlling interests | — | — | — | — | (0.2) | (0.2) | 11.7 | 11.5 | ||||||||||||||||||
Dividends paid | — | — | — | — | (94.0) | (94.0) | — | (94.0) | ||||||||||||||||||
Balance, September 30, 2023 | 364,439 | $ | 5,963.0 | $ | 93.8 | $ | (27.3) | $ | (1,181.2) | $ | 4,848.3 | $ | 58.8 | $ | 4,907.1 |
Attributable to equity holders of the Company | ||||||||||||||||||||||||||
Issued shares | Issued capital | Share option reserve | Investment revaluation reserve | Deficit | Total | Non- controlling interests | Total equity | |||||||||||||||||||
Balance, December 31, 2021 | 210,458 | $ | 3,136.2 | $ | 93.4 | $ | — | $ | (598.0) | $ | 2,631.6 | $ | 4.5 | $ | 2,636.1 | |||||||||||
Total comprehensive loss | ||||||||||||||||||||||||||
Net loss for the period | — | — | — | — | (169.0) | (169.0) | 1.0 | (168.0) | ||||||||||||||||||
Other comprehensive loss | — | — | — | (32.6) | — | (32.6) | — | (32.6) | ||||||||||||||||||
— | — | — | (32.6) | (169.0) | (201.6) | 1.0 | (200.6) | |||||||||||||||||||
Shares issued on the exercise of stock options | 66 | 1.2 | (0.3) | — | — | 0.8 | — | 0.8 | ||||||||||||||||||
Shares issued as compensation | 15 | 0.3 | — | — | — | 0.3 | — | 0.3 | ||||||||||||||||||
Share-based compensation on option grants | — | — | 0.2 | — | — | 0.2 | — | 0.2 | ||||||||||||||||||
Dividends paid | — | — | — | — | (73.7) | (73.7) | — | (73.7) | ||||||||||||||||||
Balance, September 30, 2022 | 210,539 | $ | 3,137.7 | $ | 93.3 | $ | (32.6) | $ | (840.7) | $ | 2,357.6 | $ | 5.5 | $ | 2,363.1 |
PAN AMERICAN SILVER CORP. | 4 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Location | Subsidiary | Ownership Interest | Operations and Development Projects Owned | ||||||||
Brazil | Jacobina Mineração e Comércio Ltda. | 100% | Jacobina mine (1) | ||||||||
Canada | Lake Shore Gold Corp. | 100% | Bell Creek and Timmins West mines (together "Timmins mine") | ||||||||
Chile | Minera Meridian Ltda. | 100% | El Peñon mine (1) | ||||||||
Minera Florida Ltda | 100% | Minera Florida mine (1) | |||||||||
Agua De La Falda S.A. | 57.74% | Jeronimo project (1) | |||||||||
Minera Cavancha SpA. | 80% | La Pepa project (1) | |||||||||
Mexico | Plata Panamericana S.A. de C.V. | 100% | La Colorada mine | ||||||||
Compañía Minera Dolores S.A. de C.V. | 100% | Dolores mine | |||||||||
Peru | Pan American Silver Huaron S.A. | 100% | Huaron mine | ||||||||
Shahuindo S.A.C. | 100% | Shahuindo mine | |||||||||
La Arena S.A. | 100% | La Arena mine | |||||||||
Bolivia | Pan American Silver (Bolivia) S.A. | 95% | San Vicente mine | ||||||||
Guatemala | Pan American Silver Guatemala S.A. | 100% | Escobal mine | ||||||||
Argentina | Minera Tritón Argentina S.A. | 100% | Manantial Espejo & Cap-Oeste Sur Este mines | ||||||||
Estelar Resources S.A. | 100% | Cerro Moro mine (1) | |||||||||
Minera Joaquin S.R.L. | 100% | Joaquin mine | |||||||||
Minera Argenta S.A. | 100% | Navidad project |
PAN AMERICAN SILVER CORP. | 5 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 6 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 7 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Nature of consideration | Shares (in millions) | Consideration | ||||||
Pan American Shares (1) | 153.8 | $ | 2,823.0 |
Assets acquired | |||||
Cash and cash equivalents | $ | 259.5 | |||
Investments | 59.5 | ||||
Accounts receivable (1) | 20.4 | ||||
Income tax receivables | 19.4 | ||||
Value added tax receivables | 54.0 | ||||
Inventories | 242.0 | ||||
Mineral properties, plant and equipment | 5,273.2 | ||||
Other assets | 59.4 | ||||
Liabilities assumed | |||||
Accounts payable | (215.2) | ||||
Income tax payables | (34.8) | ||||
Provision for closure and decommissioning liabilities | (238.7) | ||||
Litigation provisions | (34.6) | ||||
Lease obligations | (65.9) | ||||
Debt (2) | (943.1) | ||||
Other long-term liabilities | (59.7) | ||||
Deferred taxes | (1,083.2) | ||||
Net assets acquired | $ | 3,312.2 | |||
Non-controlling interests (3) | (489.2) | ||||
Net assets attributable to Pan American | $ | 2,823.0 | |||
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Transaction related costs | — | — | 20.7 | — | ||||||||||
Integration related costs | 0.6 | — | 4.3 | — | ||||||||||
0.6 | — | 25.0 | — |
PAN AMERICAN SILVER CORP. | 8 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
September 30, 2023 | MARA | Morococha | ||||||
Cash proceeds (1) | $ | 475.0 | $ | 23.6 | ||||
Net smelter return royalty | 90.0 | — | ||||||
Net proceeds | 565.0 | 23.6 | ||||||
Cash and cash equivalents | 188.4 | 5.6 | ||||||
Other current assets | 9.1 | 4.8 | ||||||
Mineral properties, plant and equipment | 1,400.5 | 30.8 | ||||||
Other non-current assets | 3.1 | 0.8 | ||||||
Current liabilities | (27.0) | (11.6) | ||||||
Provisions | (133.2) | (11.2) | ||||||
Deferred tax liabilities | (380.4) | (0.1) | ||||||
Long-term debt | (31.5) | — | ||||||
Other long-term liabilities | (19.3) | (0.1) | ||||||
Net carrying amount | 1,009.7 | 19.0 | ||||||
Non-controlling interest | (444.7) | (2.1) | ||||||
Net assets attributable to Pan American | 565.0 | 16.9 | ||||||
Less: net proceeds | $ | 565.0 | $ | 23.6 | ||||
Gain on sale | $ | — | $ | 6.7 |
PAN AMERICAN SILVER CORP. | 9 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
September 30, 2023 | Amortized cost | FVTPL | FVTOCI | Total | ||||||||||
Financial Assets: | ||||||||||||||
Cash and cash equivalents | $ | 347.5 | $ | — | $ | — | $ | 347.5 | ||||||
Trade receivables from provisional concentrates sales(1) | — | 23.6 | — | 23.6 | ||||||||||
Receivables not arising from sale of metal concentrates(1) | 116.5 | — | — | 116.5 | ||||||||||
Investments | — | 34.8 | 3.7 | 38.5 | ||||||||||
Derivative assets(2) | — | 2.5 | — | 2.5 | ||||||||||
$ | 464.0 | $ | 60.9 | $ | 3.7 | $ | 528.6 | |||||||
Financial Liabilities: | ||||||||||||||
Derivative liabilities(2) | $ | — | $ | 1.0 | $ | — | $ | 1.0 | ||||||
Debt | $ | 719.7 | $ | — | $ | — | $ | 719.7 |
December 31, 2022 | Amortized cost | FVTPL | FVTOCI | Total | ||||||||||
Financial Assets: | ||||||||||||||
Cash and cash equivalents | $ | 107.0 | $ | — | $ | — | $ | 107.0 | ||||||
Trade receivables from provisional concentrates sales(1) | — | 28.7 | — | 28.7 | ||||||||||
Receivables not arising from sale of metal concentrates(1) | 99.0 | — | — | 99.0 | ||||||||||
Investments | — | 35.3 | — | 35.3 | ||||||||||
Long-term investment(2) | — | — | 121.2 | 121.2 | ||||||||||
Derivative assets(3) | — | 2.9 | — | 2.9 | ||||||||||
$ | 206.0 | $ | 66.9 | $ | 121.2 | $ | 394.1 | |||||||
Financial Liabilities: | ||||||||||||||
Derivative liabilities(3) | $ | — | $ | 1.8 | $ | — | $ | 1.8 | ||||||
Debt | $ | 193.7 | $ | — | $ | — | $ | 193.7 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Unrealized losses on investments | $ | (7.9) | $ | (12.3) | $ | (9.8) | $ | (17.9) | ||||||
Realized gains (losses) on investments | 0.1 | (0.3) | 1.0 | 0.4 | ||||||||||
$ | (7.8) | $ | (12.6) | $ | (8.8) | $ | (17.5) |
PAN AMERICAN SILVER CORP. | 10 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Unrealized losses on investments | $ | (3.4) | $ | (25.5) | $ | (5.3) | $ | (37.7) | ||||||
Realized gains (losses) on investments(1) | (0.1) | — | (19.4) | — | ||||||||||
$ | (3.5) | $ | (25.5) | $ | (24.7) | $ | (37.7) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Realized gains on derivatives | $ | 3.6 | $ | 1.2 | $ | 12.1 | $ | 6.2 | ||||||
Unrealized losses on derivatives | (7.8) | (7.7) | (10.9) | (4.7) | ||||||||||
$ | (4.2) | $ | (6.5) | $ | 1.2 | $ | 1.5 | |||||||
At September 30, 2023 | At December 31, 2022 | |||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||
Assets and Liabilities: | ||||||||||||||
Investments | $ | 38.5 | $ | — | $ | 35.3 | $ | — | ||||||
Long-term investment(1) | — | — | 121.2 | — | ||||||||||
Trade receivables from provisional concentrate sales | — | 23.6 | — | 28.7 | ||||||||||
Derivative assets(2) | — | 2.5 | — | 2.9 | ||||||||||
Derivative liabilities(2) | — | (1.0) | — | (1.8) | ||||||||||
$ | 38.5 | $ | 25.1 | $ | 156.5 | $ | 29.8 |
PAN AMERICAN SILVER CORP. | 11 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 12 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 13 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Mexican peso gains (losses) | $ | 0.1 | $ | 0.4 | $ | 2.4 | $ | 0.8 | ||||||
Peruvian sol gains (losses) | (0.5) | (0.7) | 1.5 | 1.0 | ||||||||||
Canadian dollar gains (losses) | (1.2) | (4.6) | 1.0 | (5.0) | ||||||||||
Chilean peso gains (losses) | (2.0) | — | (4.8) | — | ||||||||||
Brazilian real gains (losses) | (0.6) | — | 0.3 | — | ||||||||||
$ | (4.2) | $ | (4.9) | $ | 0.4 | $ | (3.2) |
PAN AMERICAN SILVER CORP. | 14 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Zinc gains | $ | — | $ | — | $ | — | $ | 1.8 | ||||||
Diesel (losses) gains | — | (0.6) | — | 4.2 | ||||||||||
Other | — | (1.0) | 0.8 | (1.2) | ||||||||||
$ | — | $ | (1.6) | $ | 0.8 | $ | 4.8 |
September 30, 2023 | December 31, 2022 | |||||||||||||||||||
Fair Value | Cost | Accumulated unrealized holding gains | Fair Value | Cost | Accumulated unrealized holding gains | |||||||||||||||
Investments | $ | 38.5 | $ | 37.5 | $ | 1.0 | $ | 35.3 | $ | 20.8 | $ | 14.5 |
September 30, 2023 | December 31, 2022 | |||||||
Concentrate inventory | $ | 20.8 | $ | 31.3 | ||||
Stockpile ore | 71.0 | 31.3 | ||||||
Heap leach inventory and in process | 337.4 | 258.8 | ||||||
Doré and finished inventory | 139.2 | 86.8 | ||||||
Materials and supplies | 193.3 | 89.7 | ||||||
Total inventories | $ | 761.7 | $ | 497.9 | ||||
Less: current portion of inventories | $ | (701.4) | $ | (471.6) | ||||
Non-current portion of inventories(1) | $ | 60.3 | $ | 26.3 |
September 30, 2023 | December 31, 2022 | |||||||
Insurance prepaids | $ | 3.6 | $ | 5.3 | ||||
Other prepaids | 26.7 | 5.7 | ||||||
Derivative assets | 2.5 | 2.9 | ||||||
$ | 32.8 | $ | 13.9 |
PAN AMERICAN SILVER CORP. | 15 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Cost | Accumulated Depreciation and Impairment | Carrying Value | Cost | Accumulated Depreciation and Impairment | Carrying Value | ||||||||||||||||||
Producing: | |||||||||||||||||||||||
Brazil | Jacobina(6) | $ | 1,915.3 | $ | (69.2) | $ | 1,846.1 | $ | — | $ | — | $ | — | ||||||||||
Chile | El Peñon(6) | 710.2 | (51.4) | 658.8 | — | — | — | ||||||||||||||||
Minera Florida(6) | 109.8 | (12.1) | 97.7 | — | — | — | |||||||||||||||||
Peru | Huaron | 245.1 | (143.4) | 101.7 | 231.3 | (143.2) | 88.1 | ||||||||||||||||
Shahuindo | 686.3 | (216.0) | 470.3 | 636.5 | (179.4) | 457.1 | |||||||||||||||||
La Arena | 294.9 | (166.1) | 128.8 | 286.2 | (143.0) | 143.2 | |||||||||||||||||
Mexico | La Colorada | 430.3 | (220.6) | 209.7 | 403.7 | (205.1) | 198.6 | ||||||||||||||||
Dolores(1) | 1,769.4 | (1,664.0) | 105.4 | 1,783.7 | (1,586.4) | 197.3 | |||||||||||||||||
Argentina | Cerro Moro(6) | 150.3 | (18.9) | 131.4 | — | — | — | ||||||||||||||||
Bolivia | San Vicente | 159.4 | (125.8) | 33.6 | 156.3 | (119.3) | 37.0 | ||||||||||||||||
Canada | Timmins | 389.4 | (160.4) | 229.0 | 359.4 | (133.1) | 226.3 | ||||||||||||||||
Other | 22.7 | (14.8) | 7.9 | 29.6 | (21.4) | 8.2 | |||||||||||||||||
$ | 6,883.1 | $ | (2,862.7) | $ | 4,020.4 | $ | 3,886.7 | $ | (2,530.9) | $ | 1,355.8 | ||||||||||||
Non-Producing: | |||||||||||||||||||||||
Land | $ | 30.2 | $ | (1.4) | $ | 28.8 | $ | 6.9 | $ | (1.0) | $ | 5.9 | |||||||||||
Brazil | Jacobina(6) | 413.3 | — | 413.3 | — | — | — | ||||||||||||||||
Chile | El Peñon(6) | 327.7 | — | 327.7 | — | — | — | ||||||||||||||||
Minera Florida(6) | 70.0 | — | 70.0 | — | — | — | |||||||||||||||||
Le Pepa(6) | 82.3 | — | 82.3 | — | — | — | |||||||||||||||||
Peru | La Arena | 117.0 | — | 117.0 | 117.0 | — | 117.0 | ||||||||||||||||
Mexico | Minefinders(4) | 77.2 | (37.5) | 39.7 | 77.2 | (37.5) | 39.7 | ||||||||||||||||
La Colorada | 113.8 | — | 113.8 | 94.7 | — | 94.7 | |||||||||||||||||
Argentina | Manantial Espejo(2,5) | 519.4 | (519.4) | — | 518.4 | (518.4) | — | ||||||||||||||||
Navidad(3) | 568.7 | (378.3) | 190.4 | 566.6 | (376.1) | 190.5 | |||||||||||||||||
Guatemala | Escobal | 255.8 | (3.5) | 252.3 | 260.4 | (3.1) | 257.3 | ||||||||||||||||
Canada | Timmins | 63.5 | — | 63.5 | 63.0 | — | 63.0 | ||||||||||||||||
Other(7) | 256.7 | (90.8) | 165.9 | 34.1 | (12.3) | 21.8 | |||||||||||||||||
$ | 2,895.6 | $ | (1,030.9) | $ | 1,864.7 | $ | 1,977.1 | $ | (1,106.5) | $ | 870.6 | ||||||||||||
Total | $ | 9,778.7 | $ | (3,893.6) | $ | 5,885.1 | $ | 5,863.8 | $ | (3,637.4) | $ | 2,226.4 |
PAN AMERICAN SILVER CORP. | 16 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Impairment expense | $ | — | $ | — | $ | 42.4 | $ | 99.1 | ||||||
PAN AMERICAN SILVER CORP. | 17 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
At June 30, 2022 | ||||||||
2022-2025 Average | 2026 and long-term | |||||||
Gold (per ounce) | $ | 1,802 | $ | 1,651 | ||||
Silver (per ounce) | 23.56 | 21.77 | ||||||
FVTOCI | Investment in Associate | ||||||||||
Investment in Maverix Metals Inc. | Maverix | Maverix | Total | ||||||||
At December 31, 2021 | $ | — | $ | 77.4 | $ | 77.4 | |||||
Equity pick-up from equity investees | — | 0.4 | 0.4 | ||||||||
Dividends received | — | (0.3) | (0.3) | ||||||||
Loss of significant influence | 124.7 | (77.5) | 47.2 | ||||||||
Investment revaluation reserve fair value adjustment | (3.5) | — | (3.5) | ||||||||
At December 31, 2022 | $ | 121.2 | $ | — | $ | 121.2 | |||||
Investment revaluation reserve fair value adjustment | 3.5 | — | 3.5 | ||||||||
Maverix shares returned | (124.7) | — | (124.7) | ||||||||
Triple Flag shares received | 53.0 | — | 53.0 | ||||||||
Disposal of Triple Flag shares | (53.0) | — | (53.0) | ||||||||
At September 30, 2023 | $ | — | $ | — | $ | — |
PAN AMERICAN SILVER CORP. | 18 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
September 30, 2023 | December 31, 2022 | |||||||
Long-term prepaids | $ | 11.8 | $ | — | ||||
Escrow funds | 7.3 | — | ||||||
Other | 3.4 | 3.0 | ||||||
Goodwill | 2.8 | 2.8 | ||||||
$ | 25.3 | $ | 5.8 |
September 30, 2023 | December 31, 2022 | |||||||
Trade account payables(1) | $ | 191.4 | $ | 88.8 | ||||
Royalty payables | 27.3 | 20.9 | ||||||
Other accounts payable and accrued liabilities | 128.1 | 111.2 | ||||||
Payroll and severance liabilities | 94.9 | 66.6 | ||||||
Value added tax liabilities | 8.9 | 8.5 | ||||||
Other tax payables | 26.9 | 12.0 | ||||||
$ | 477.5 | $ | 308.0 |
PAN AMERICAN SILVER CORP. | 19 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
2023 | 2022 | |||||||
Reclamation obligations, opening balance | $ | 296.2 | $ | 242.9 | ||||
Reclamation obligations from the Acquisition (Note 4) | 238.7 | — | ||||||
Dispositions (Note 5) | (126.2) | — | ||||||
Revisions in estimates and obligations | (21.2) | 42.7 | ||||||
Expenditures | (18.6) | (4.2) | ||||||
Accretion expense (Note 22) | 26.0 | 14.8 | ||||||
Asset held for sale | (3.7) | — | ||||||
Reclamation obligations, closing balance | 391.2 | 296.2 | ||||||
Litigation | 9.2 | 7.0 | ||||||
Litigation from the Acquisition(1) | 34.6 | — | ||||||
Dispositions (Note 5) | (18.2) | — | ||||||
Total provisions | $ | 416.8 | $ | 303.2 |
Provision classification: | September 30, 2023 | December 31, 2022 | ||||||
Current | $ | 28.7 | $ | 17.9 | ||||
Non-current | 388.1 | 285.3 | ||||||
$ | 416.8 | $ | 303.2 |
Nine months ended September 30, 2023 | |||||
Opening net book value | $ | 30.3 | |||
Additions | 26.9 | ||||
Yamana acquisition (Note 4) | 65.9 | ||||
Depreciation | (23.3) | ||||
Dispositions (Note 5) | (9.0) | ||||
Other | (4.2) | ||||
Closing net book value | $ | 86.6 |
PAN AMERICAN SILVER CORP. | 20 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
September 30, 2023 | December 31, 2022 | |||||||
Within one year | $ | 41.5 | $ | 14.1 | ||||
Between one and five years | 55.3 | 17.6 | ||||||
Beyond five years | 6.9 | 14.4 | ||||||
Total undiscounted lease obligations | 103.7 | 46.1 | ||||||
Less future interest charges | (14.3) | (13.0) | ||||||
Total discounted lease obligations | 89.4 | 33.1 | ||||||
Less current portion of lease obligations | (39.6) | (13.6) | ||||||
Non-current portion of lease obligations | $ | 49.8 | $ | 19.5 |
December 31, 2022 | Proceeds | Advances | Repayments | Interest | Acquisition (Note 4) | Dispositions (Note 5) | September 30, 2023 | |||||||||||||||||||
Senior note maturing December 2027 | $ | — | $ | — | $ | — | $ | — | $ | 1.0 | $ | 272.3 | $ | — | $ | 273.3 | ||||||||||
Senior note maturing August 2031 | — | — | — | — | 4.6 | 402.9 | — | 407.5 | ||||||||||||||||||
SL-Credit Facility | 160.0 | 315.0 | — | (475.0) | — | — | — | — | ||||||||||||||||||
Other loans (1) | 33.7 | — | 6.3 | (33.9) | 1.4 | 62.9 | (31.5) | 38.9 | ||||||||||||||||||
Less: current portion | (13.7) | (14.8) | ||||||||||||||||||||||||
Non-current | $ | 180.0 | $ | 315.0 | $ | 6.3 | $ | (508.9) | $ | 7.0 | $ | 738.1 | $ | (31.5) | $ | 704.9 |
December 31, 2021 | Proceeds | Advances | Repayments | December 31, 2022 | |||||||||||||
SL-Credit Facility | $ | — | $ | 160.0 | $ | — | $ | — | $ | 160.0 | |||||||
Other | 15.3 | 7.1 | 16.5 | (5.2) | 33.7 | ||||||||||||
Less: current portion | (3.4) | (13.7) | |||||||||||||||
Non-current | $ | 11.9 | $ | 167.1 | $ | 16.5 | $ | (5.2) | $ | 180.0 |
PAN AMERICAN SILVER CORP. | 21 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
September 30, 2023 | December 31, 2022 | |||||||
Deferred credit(1) | $ | 21.8 | $ | 20.8 | ||||
Deferred revenue(2) | 13.3 | 13.9 | ||||||
Other tax payables | 17.6 | — | ||||||
Severance liabilities(3) | 53.6 | 6.3 | ||||||
$ | 106.3 | $ | 41.0 |
PAN AMERICAN SILVER CORP. | 22 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Stock Options | ||||||||
Options | Weighted Average Exercise Price CAD$ | |||||||
As at December 31, 2021 | 279.0 | $ | 21.38 | |||||
Granted | 191.6 | 22.95 | ||||||
Exercised | (79.5) | 15.12 | ||||||
Expired | (4.3) | 41.62 | ||||||
Forfeited | (9.8) | 31.32 | ||||||
As at December 31, 2022 | 377.0 | $ | 23.01 | |||||
Granted | — | — | ||||||
Exercised | — | — | ||||||
Expired | (7.0) | 28.71 | ||||||
Forfeited | — | — | ||||||
As at September 30, 2023 | 370.0 | $ | 22.90 |
Options Outstanding | Options Exercisable | ||||||||||||||||
Range of Exercise Prices CAD$ | Number Outstanding as at September 30, 2023 | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price CAD$ | Number Outstanding as at September 30, 2023 | Weighted Average Exercise Price CAD$ | ||||||||||||
$17.53 - $23.03 | 288.9 | 4.8 | $ | 21.16 | 99.0 | $ | 17.72 | ||||||||||
$23.04 - $28.54 | 35.4 | 2.0 | $ | 35.35 | 35.4 | $ | 35.35 | ||||||||||
$28.55 - $34.04 | 38.8 | 5.2 | $ | 30.70 | 12.9 | $ | 30.70 | ||||||||||
$34.05 - $39.48 | 6.9 | 4.2 | $ | 39.48 | 6.9 | $ | 39.48 | ||||||||||
370.0 | 4.6 | $ | 22.90 | 154.2 | $ | 21.54 |
PAN AMERICAN SILVER CORP. | 23 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
PSU | Number Outstanding | Fair Value | ||||||
As at December 31, 2021 | 217.6 | $ | 5.5 | |||||
Granted | 150.5 | 2.4 | ||||||
Paid out | (80.1) | (0.8) | ||||||
Forfeited | — | — | ||||||
Change in value | — | (2.3) | ||||||
As at December 31, 2022 | 288.0 | $ | 4.8 | |||||
Granted | 203.3 | 3.5 | ||||||
Paid out | — | — | ||||||
Forfeited | — | — | ||||||
Change in value | — | (0.9) | ||||||
As at September 30, 2023 | 491.3 | $ | 7.4 |
RSU | Number Outstanding | Fair Value | ||||||
As at December 31, 2021 | 426.4 | $ | 10.7 | |||||
Granted | 341.1 | 5.6 | ||||||
Paid out | (198.4) | (3.4) | ||||||
Forfeited | (17.3) | (0.3) | ||||||
Change in value | — | (3.5) | ||||||
As at December 31, 2022 | 551.8 | $ | 9.1 | |||||
Granted | 4.0 | 0.1 | ||||||
Paid out | — | — | ||||||
Forfeited | (19.8) | (0.3) | ||||||
Change in value | — | (0.9) | ||||||
As at September 30, 2023 | 536.0 | $ | 8.0 |
PAN AMERICAN SILVER CORP. | 24 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Declaration Date | Record Date | Dividend per common share | ||||||
November 7, 2023(1) | November 20, 2023 | $ | 0.10 | |||||
August 9, 2023 | August 21, 2023 | $ | 0.10 | |||||
March 24, 2023 | April 14, 2023 | $ | 0.10 | |||||
February 22, 2023 | March 6, 2023 | $ | 0.10 | |||||
November 9, 2022 | November 21, 2022 | $ | 0.10 | |||||
August 10, 2022 | August 22, 2022 | $ | 0.11 | |||||
May 11, 2022 | May 24, 2022 | $ | 0.12 | |||||
February 23, 2022 | March 7, 2022 | $ | 0.12 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Materials and consumables | $ | 154.6 | $ | 108.9 | $ | 388.9 | $ | 308.8 | ||||||
Salaries and employee benefits(1) | 136.6 | 77.5 | 348.7 | 230.0 | ||||||||||
Contractors | 94.4 | 68.1 | 239.8 | 175.6 | ||||||||||
Utilities | 17.5 | 12.7 | 47.0 | 42.7 | ||||||||||
Insurance | 5.8 | 4.2 | 16.7 | 12.9 | ||||||||||
Other expense | 7.3 | (1.7) | 6.0 | (1.5) | ||||||||||
Changes in inventories(2) | (14.0) | 5.4 | (8.8) | 73.7 | ||||||||||
$ | 402.2 | $ | 275.1 | $ | 1,038.3 | $ | 842.2 |
PAN AMERICAN SILVER CORP. | 25 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Escobal | $ | 6.5 | $ | 5.8 | $ | 18.9 | $ | 18.7 | ||||||
Morococha(1) | 4.7 | 4.7 | 17.9 | 11.6 | ||||||||||
Navidad | 1.5 | 2.2 | 3.5 | 4.3 | ||||||||||
MARA(3) | 8.9 | — | 20.4 | — | ||||||||||
Manantial Espejo(2) | 2.6 | — | 12.4 | — | ||||||||||
$ | 24.2 | $ | 12.7 | $ | 73.1 | $ | 34.6 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Interest expense | $ | 16.9 | $ | 1.2 | $ | 38.2 | $ | 3.1 | ||||||
Finance fees | 0.9 | 0.7 | 2.7 | 1.9 | ||||||||||
Accretion expense (Note 15) | 10.2 | 3.7 | 26.0 | 11.1 | ||||||||||
$ | 28.0 | $ | 5.6 | $ | 66.9 | $ | 16.1 |
For the three months ended September 30, | 2023 | 2022 | ||||||||||||||||||
Earnings (Numerator) | Shares (000’s) (Denominator) | Per-Share Amount | Earnings (Numerator) | Shares (000’s) (Denominator) | Per-Share Amount | |||||||||||||||
Net loss for the period | $ | (21.8) | $ | (71.5) | ||||||||||||||||
Basic loss per share | $ | (21.8) | 364,439 | $ | (0.06) | $ | (71.5) | 210,531 | $ | (0.34) | ||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||
Diluted loss per share | $ | (21.8) | 364,439 | $ | (0.06) | $ | (71.5) | 210,531 | $ | (0.34) |
For the nine months ended September 30, | 2023 | 2022 | ||||||||||||||||||
Earnings(1) | Shares | Per-Share Amount | Earnings(1) | Shares | Per-Share Amount | |||||||||||||||
Net loss for the period | $ | (52.2) | $ | (169.0) | ||||||||||||||||
Basic loss per share | $ | (52.2) | 313,750 | $ | (0.17) | $ | (169.0) | 210,503 | $ | (0.80) | ||||||||||
Effect of Dilutive Securities: | ||||||||||||||||||||
Stock Options | — | — | — | — | ||||||||||||||||
Diluted loss per share | $ | (52.2) | 313,750 | $ | (0.17) | $ | (169.0) | 210,503 | $ | (0.80) |
PAN AMERICAN SILVER CORP. | 26 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
Other operating activities | 2023 | 2022 | 2023 | 2022 | |||||||||||||
Adjustments for non-cash income statement items: | |||||||||||||||||
Unrealized foreign exchange (gains) losses | $ | (1.0) | $ | 3.8 | $ | — | $ | 9.7 | |||||||||
Interest expense (Note 22) | 16.9 | 1.2 | 38.2 | 3.1 | |||||||||||||
Losses (gains) on derivatives (Note 6d) | 4.2 | 6.5 | (1.2) | (1.5) | |||||||||||||
Share-based compensation expense | 1.2 | 1.3 | 3.7 | 3.9 | |||||||||||||
(Gains) losses on sale of mineral properties, plant and equipment(1) | (10.0) | 0.7 | (8.3) | 1.3 | |||||||||||||
$ | 11.3 | $ | 13.5 | $ | 32.4 | $ | 16.5 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
Changes in non-cash operating working capital items: | 2023 | 2022 | 2023 | 2022 | ||||||||||
Trade and other receivables | $ | 0.6 | $ | 19.6 | $ | 42.7 | $ | 11.0 | ||||||
Inventories | 5.0 | (10.5) | 19.8 | (26.6) | ||||||||||
Prepaid expenses | 8.1 | 3.0 | 8.9 | 5.6 | ||||||||||
Accounts payable and accrued liabilities | 1.0 | 9.3 | (41.9) | (2.1) | ||||||||||
Provisions | (17.7) | 0.2 | (16.2) | (0.9) | ||||||||||
$ | (3.0) | $ | 21.6 | $ | 13.3 | $ | (13.0) |
Cash and cash equivalents | September 30, 2023 | December 31, 2022 | ||||||
Cash in banks | $ | 347.5 | $ | 107.0 | ||||
PAN AMERICAN SILVER CORP. | 27 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
For the three months ended September 30, 2023 | |||||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) | |||||||||||||||||
Silver Segment: | |||||||||||||||||||||||
Mexico | La Colorada | $ | 31.5 | $ | 31.8 | $ | 5.5 | $ | (5.8) | $ | 20.7 | ||||||||||||
Peru | Huaron | 36.3 | 26.2 | 3.4 | 6.7 | 7.9 | |||||||||||||||||
Morococha(2) | — | — | — | — | 1.7 | ||||||||||||||||||
Bolivia | San Vicente | 16.0 | 12.6 | 1.6 | 1.8 | 1.2 | |||||||||||||||||
Argentina | Manantial Espejo(2) | 6.5 | 3.8 | 0.3 | 2.4 | — | |||||||||||||||||
Cerro Moro | 79.2 | 54.5 | 7.6 | 17.1 | 5.4 | ||||||||||||||||||
Guatemala | Escobal | — | — | — | — | 0.7 | |||||||||||||||||
Total Silver Segment | 169.5 | 128.9 | 18.4 | 22.2 | 37.6 | ||||||||||||||||||
Gold Segment: | |||||||||||||||||||||||
Mexico | Dolores | 65.8 | 32.5 | 27.7 | 5.5 | 2.2 | |||||||||||||||||
Peru | Shahuindo | 65.8 | 33.9 | 10.7 | 21.1 | 14.8 | |||||||||||||||||
La Arena | 43.8 | 29.6 | 7.4 | 6.8 | 4.1 | ||||||||||||||||||
Canada | Timmins | 56.0 | 45.4 | 9.3 | 1.3 | 16.1 | |||||||||||||||||
Brazil | Jacobina | 87.2 | 42.0 | 30.0 | 15.2 | 23.8 | |||||||||||||||||
Chile | El Peñon | 78.7 | 59.1 | 27.2 | (7.6) | 1.2 | |||||||||||||||||
Minera Florida | 49.5 | 43.2 | 6.2 | 0.1 | 1.7 | ||||||||||||||||||
Total Gold Segment | 446.8 | 285.7 | 118.5 | 42.4 | 63.9 | ||||||||||||||||||
Other segment: | |||||||||||||||||||||||
Canada | Pas Corp | — | — | 0.1 | (0.1) | 1.1 | |||||||||||||||||
Yamana Corp | — | — | 2.2 | (2.0) | 0.6 | ||||||||||||||||||
Argentina | Navidad | — | — | — | — | — | |||||||||||||||||
MARA(2) | — | — | 0.1 | (0.1) | 17.3 | ||||||||||||||||||
Other | Other | — | — | 0.5 | (0.5) | 0.6 | |||||||||||||||||
Total | $ | 616.3 | $ | 414.6 | $ | 139.8 | $ | 61.9 | $ | 121.1 |
PAN AMERICAN SILVER CORP. | 28 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
For the three months ended September 30, 2022 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) | ||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 33.4 | $ | 24.5 | $ | 4.9 | $ | 4.0 | $ | 32.4 | |||||||||
Peru | Huaron | 31.5 | 27.6 | 3.1 | 0.8 | 3.8 | ||||||||||||||
Morococha(2) | 0.1 | (0.6) | — | 0.7 | 0.4 | |||||||||||||||
Bolivia | San Vicente | 20.4 | 15.8 | 2.3 | 2.3 | 0.3 | ||||||||||||||
Argentina | Manantial Espejo | 23.5 | 35.0 | 5.7 | (17.2) | 1.0 | ||||||||||||||
Guatemala | Escobal | — | — | — | — | 0.6 | ||||||||||||||
Total Silver Segment | 108.9 | 102.3 | 16.0 | (9.4) | 38.5 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 68.5 | 68.2 | 32.4 | (32.1) | 5.3 | ||||||||||||||
Peru | Shahuindo | 60.2 | 36.5 | 10.4 | 13.3 | 10.5 | ||||||||||||||
La Arena | 42.7 | 28.5 | 9.0 | 5.2 | 9.7 | |||||||||||||||
Canada | Timmins | 58.6 | 47.3 | 9.6 | 1.7 | 8.7 | ||||||||||||||
Total Gold Segment | 230.0 | 180.5 | 61.4 | (11.9) | 34.2 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Pas Corp | — | — | 0.1 | (0.1) | 0.1 | ||||||||||||||
Other | Other | — | — | 0.4 | (0.4) | 0.5 | ||||||||||||||
Total | $ | 338.9 | $ | 282.8 | $ | 77.9 | $ | (21.8) | $ | 73.3 |
PAN AMERICAN SILVER CORP. | 29 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
For the nine months ended September 30, 2023 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) | ||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 102.4 | $ | 94.1 | $ | 16.3 | $ | (8.0) | $ | 48.6 | |||||||||
Peru | Huaron | 112.5 | 79.3 | 9.8 | 23.4 | 18.9 | ||||||||||||||
Morococha(2) | — | — | — | — | 2.1 | |||||||||||||||
Bolivia | San Vicente | 67.0 | 51.1 | 7.0 | 8.9 | 2.8 | ||||||||||||||
Argentina | Manantial Espejo(2) | 37.7 | 32.4 | 2.0 | 3.3 | 0.2 | ||||||||||||||
Cerro Moro | 139.2 | 93.7 | 17.1 | 28.4 | 14.4 | |||||||||||||||
Guatemala | Pas Guatemala | — | — | — | — | 1.4 | ||||||||||||||
Total Silver Segment | 458.8 | 350.6 | 52.2 | 56.0 | 88.4 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 196.3 | 84.4 | 86.5 | 25.4 | 8.0 | ||||||||||||||
Peru | Shahuindo | 209.0 | 105.2 | 33.3 | 70.5 | 42.2 | ||||||||||||||
La Arena | 135.1 | 87.3 | 22.5 | 25.3 | 9.0 | |||||||||||||||
Canada | Timmins | 188.1 | 147.1 | 29.9 | 11.1 | 33.7 | ||||||||||||||
Brazil | Jacobina | 178.5 | 86.6 | 66.9 | 25.0 | 43.8 | ||||||||||||||
Chile | El Peñon | 176.3 | 127.4 | 48.8 | 0.1 | 8.4 | ||||||||||||||
Minera Florida | 104.2 | 85.3 | 17.2 | 1.7 | 11.3 | |||||||||||||||
Total Gold Segment | 1,187.5 | 723.3 | 305.1 | 159.1 | 156.4 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Pas Corp | — | — | 0.3 | (0.3) | 1.4 | ||||||||||||||
Yamana Corp | 0.2 | — | 3.8 | (3.6) | 0.9 | |||||||||||||||
Argentina | MARA(2) | — | — | 0.1 | (0.1) | 35.9 | ||||||||||||||
Other | Other | — | — | 1.4 | (1.4) | 2.1 | ||||||||||||||
Total | $ | 1,646.5 | $ | 1,073.9 | $ | 362.9 | $ | 209.7 | $ | 285.1 |
PAN AMERICAN SILVER CORP. | 30 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
For the nine months ended September 30, 2022 | ||||||||||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings (losses) | Capital expenditures(1) | ||||||||||||||
Silver Segment: | ||||||||||||||||||||
Mexico | La Colorada | $ | 112.9 | $ | 71.0 | $ | 15.0 | $ | 26.9 | $ | 67.6 | |||||||||
Peru | Huaron | 105.1 | 73.6 | 9.0 | 22.5 | 10.0 | ||||||||||||||
Morococha(2) | 22.1 | 20.5 | 2.3 | (0.7) | 1.0 | |||||||||||||||
Bolivia | San Vicente | 63.3 | 48.8 | 7.4 | 7.1 | 6.5 | ||||||||||||||
Argentina | Manantial Espejo | 84.1 | 94.3 | 18.3 | (28.5) | 3.6 | ||||||||||||||
Guatemala | Escobal | — | — | — | — | 1.5 | ||||||||||||||
Total Silver Segment | 387.5 | 308.2 | 52.0 | 27.3 | 90.2 | |||||||||||||||
Gold Segment: | ||||||||||||||||||||
Mexico | Dolores | 235.5 | 243.5 | 98.7 | (106.7) | 31.2 | ||||||||||||||
Peru | Shahuindo | 183.5 | 102.1 | 30.3 | 51.1 | 24.7 | ||||||||||||||
Peru | La Arena | 122.9 | 73.2 | 24.6 | 25.1 | 36.6 | ||||||||||||||
Canada | Timmins | 189.9 | 142.2 | 29.6 | 18.1 | 29.2 | ||||||||||||||
Total Gold Segment | 731.8 | 561.0 | 183.2 | (12.4) | 121.7 | |||||||||||||||
Other segment: | ||||||||||||||||||||
Canada | Pas Corp | — | — | 0.3 | (0.3) | 0.3 | ||||||||||||||
Other | Other | — | — | 1.3 | (1.3) | 1.3 | ||||||||||||||
Total | $ | 1,119.3 | $ | 869.2 | $ | 236.8 | $ | 13.3 | $ | 213.5 |
PAN AMERICAN SILVER CORP. | 31 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
At September 30, 2023 | ||||||||||||||
Segment/Country | Operation | Assets | Liabilities | Net assets | ||||||||||
Silver Segment: | ||||||||||||||
Mexico | La Colorada | $ | 400.9 | $ | 36.1 | $ | 364.8 | |||||||
Peru | Huaron | 132.7 | 56.5 | 76.2 | ||||||||||
Bolivia | San Vicente | 81.1 | 43.4 | 37.7 | ||||||||||
Argentina | Manantial Espejo(1) | 9.0 | 19.0 | (10.0) | ||||||||||
Cerro Moro | 221.5 | 101.9 | 119.6 | |||||||||||
Guatemala | Escobal | 288.4 | 15.2 | 273.2 | ||||||||||
Total Silver Segment | 1,133.6 | 272.1 | 861.5 | |||||||||||
Gold Segment: | ||||||||||||||
Mexico | Dolores | 380.3 | 133.2 | 247.1 | ||||||||||
Peru | Shahuindo | 628.9 | 194.6 | 434.3 | ||||||||||
La Arena | 367.4 | 142.3 | 225.1 | |||||||||||
Canada | Timmins | 383.7 | 79.4 | 304.3 | ||||||||||
Brazil | Jacobina | 2,324.9 | 508.6 | 1,816.3 | ||||||||||
Chile | El Peñon | 1,114.5 | 333.7 | 780.8 | ||||||||||
Minera Florida | 219.9 | 92.2 | 127.7 | |||||||||||
Total Gold Segment | 5,419.6 | 1,484.0 | 3,935.6 | |||||||||||
Other segment: | ||||||||||||||
Canada | Pas Corp | 167.6 | 25.0 | 142.6 | ||||||||||
Yamana Corp | 258.4 | 724.0 | (465.6) | |||||||||||
Argentina | Navidad | 192.3 | 2.1 | 190.2 | ||||||||||
Other | 362.5 | 119.7 | 242.8 | |||||||||||
Total | $ | 7,534.0 | $ | 2,626.9 | $ | 4,907.1 |
At December 31, 2022 | ||||||||||||||
Segment/Country | Operation | Assets | Liabilities | Net assets | ||||||||||
Silver Segment: | ||||||||||||||
Mexico | La Colorada | $ | 375.4 | $ | 52.0 | $ | 323.4 | |||||||
Peru | Huaron | 122.5 | 51.5 | 71.0 | ||||||||||
Morococha(1) | 102.2 | 31.2 | 71.0 | |||||||||||
Bolivia | San Vicente | 82.5 | 47.4 | 35.1 | ||||||||||
Argentina | Manantial Espejo(1) | 47.8 | 40.5 | 7.3 | ||||||||||
Guatemala | Escobal | 291.1 | 19.4 | 271.7 | ||||||||||
Total Silver Segment | 1,021.5 | 242.0 | 779.5 | |||||||||||
Gold Segment: | ||||||||||||||
Mexico | Dolores | 415.1 | 155.8 | 259.3 | ||||||||||
Peru | Shahuindo | 602.4 | 199.6 | 402.8 | ||||||||||
La Arena | 368.3 | 155.1 | 213.2 | |||||||||||
Canada | Timmins | 382.0 | 68.0 | 314.0 | ||||||||||
Total Gold Segment | 1,767.8 | 578.5 | 1,189.3 | |||||||||||
Other segment: | ||||||||||||||
Canada | Pas Corp | 179.0 | 182.9 | (3.9) | ||||||||||
Argentina | Navidad | 193.9 | 2.6 | 191.3 | ||||||||||
Other | 86.3 | 40.9 | 45.4 | |||||||||||
Total | $ | 3,248.5 | $ | 1,046.9 | $ | 2,201.6 |
PAN AMERICAN SILVER CORP. | 32 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
Product Revenue | 2023 | 2022 | 2023 | 2022 | ||||||||||
Refined silver and gold | $ | 532.8 | $ | 258.5 | $ | 1,364.3 | $ | 826.0 | ||||||
Zinc concentrate(1) | 12.3 | 26.1 | 61.9 | 82.5 | ||||||||||
Lead concentrate(1) | 43.6 | 34.0 | 132.6 | 119.3 | ||||||||||
Copper concentrate(1) | 13.8 | 8.4 | 43.7 | 48.5 | ||||||||||
Silver concentrate(1) | 13.8 | 11.9 | 44.0 | 43.0 | ||||||||||
Total | $ | 616.3 | $ | 338.9 | $ | 1,646.5 | $ | 1,119.3 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Current income tax expense | $ | 34.7 | $ | 15.1 | $ | 103.0 | $ | 57.3 | ||||||
Deferred income tax recovery | (8.5) | (13.2) | (82.4) | (37.1) | ||||||||||
Income tax expense | $ | 26.2 | $ | 1.9 | $ | 20.6 | $ | 20.2 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Income tax expense related to long-term investments | — | 5.1 | $ | 0.4 | $ | 5.1 |
PAN AMERICAN SILVER CORP. | 33 |
Notes to the Condensed Interim Consolidated Financial Statements | |||||
As at September 30, 2023 and December 31, 2022, and for the three and nine months ended September 30, 2023 and 2022 (unaudited with tabular amounts in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Income (loss) before taxes and non-controlling interest | $ | 3.5 | $ | (69.3) | $ | (33.0) | $ | (147.8) | ||||||
Statutory Canadian income tax rate | 27.00 | % | 27.00 | % | 27.00 | % | 27.00 | % | ||||||
Income tax expense (recovery) based on above rates | $ | 1.0 | $ | (18.7) | $ | (8.9) | $ | (40.0) | ||||||
Increase (decrease) due to: | ||||||||||||||
Non-deductible expenditures | (0.9) | 1.1 | 0.3 | 3.7 | ||||||||||
Foreign tax rate differences | 1.3 | (1.1) | 3.8 | (10.7) | ||||||||||
Change in net deferred tax assets not recognized(2) | 7.2 | 11.1 | 37.2 | 8.3 | ||||||||||
Derecognition of deferred tax assets previously recognized (1) | — | — | — | 50.4 | ||||||||||
Effect of other taxes paid (mining and withholding) | 6.9 | 2.9 | 18.0 | 10.7 | ||||||||||
Effect of foreign exchange on tax expense | 16.4 | 9.3 | (28.8) | (2.4) | ||||||||||
Non-taxable impact of foreign exchange | 1.5 | — | 2.5 | 3.7 | ||||||||||
Changes to opening temporary differences | (1.2) | (1.5) | 3.3 | (0.2) | ||||||||||
Impact of inflation(2) | (2.5) | (1.5) | (4.6) | (0.7) | ||||||||||
Other | (3.5) | 0.3 | (2.2) | (2.6) | ||||||||||
Income tax expense | $ | 26.2 | $ | 1.9 | $ | 20.6 | $ | 20.2 | ||||||
PAN AMERICAN SILVER CORP. | 34 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
TABLE OF CONTENTS | |||||
PAN AMERICAN SILVER CORP. | 1 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 2 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 3 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 4 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 5 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||
2023 | 2022 | Variance | 2023 | 2022 | Variance | |||||||||||||||
Production | ||||||||||||||||||||
Silver – koz | 5,687 | 4,537 | 1,150 | 15,602 | 13,692 | 1,910 | ||||||||||||||
Gold – koz | 244.2 | 128.8 | 115.5 | 615.1 | 388.1 | 227.0 | ||||||||||||||
Zinc – kt | 9.5 | 8.9 | 0.6 | 29.4 | 28.1 | 1.2 | ||||||||||||||
Lead – kt | 4.9 | 4.4 | 0.5 | 14.6 | 13.7 | 0.8 | ||||||||||||||
Copper – kt | 1.2 | 0.9 | 0.4 | 3.6 | 4.0 | (0.3) | ||||||||||||||
Cash Costs - $ per ounce sold(3) | ||||||||||||||||||||
Silver Segment | 13.13 | 14.62 | (1.49) | 11.55 | 12.21 | (0.66) | ||||||||||||||
Gold Segment | 1,187 | 1,184 | 2 | 1,116 | 1,127 | (11) | ||||||||||||||
AISC - $ per ounce sold(3) | ||||||||||||||||||||
Silver Segment | 18.19 | 17.97 | 0.22 | 16.05 | 16.09 | (0.04) | ||||||||||||||
Gold Segment | 1,451 | 1,614 | (164) | 1,350 | 1,703 | (353) |
PAN AMERICAN SILVER CORP. | 6 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 7 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 8 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 9 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 10 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 11 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Three months | Nine Months | ||||||||||
Net loss, period ended September 30, 2022 | $ | (71.2) | $ | (168.0) | Note | ||||||
Revenue: | |||||||||||
Increased metal prices | $ | 75.5 | $ | 105.0 | |||||||
Higher quantities of metal sold | 211.4 | 434.4 | |||||||||
Increased direct selling costs | (8.9) | (12.3) | |||||||||
(Increased) decreased negative settlement adjustments | (0.7) | 0.1 | |||||||||
Total increase in revenue | 277.3 | 527.2 | (1) | ||||||||
Cost of sales: | |||||||||||
Increased production costs | $ | (150.1) | $ | (320.0) | |||||||
Decreased production costs, NRV adjustments | 23.0 | 123.9 | |||||||||
Increased royalty charges | (4.7) | (8.6) | |||||||||
Increased production costs and royalty charges | $ | (131.8) | $ | (204.7) | (2) | ||||||
Increased depreciation and amortization | (61.9) | (126.1) | (3) | ||||||||
Increased cost of sales | (193.7) | (330.8) | |||||||||
Increased mine operating earnings | 83.6 | 196.4 | |||||||||
Decreased impairment charges | — | 56.7 | (4) | ||||||||
Increased foreign exchange gain | 16.8 | 27.2 | (5) | ||||||||
Increased gains on sale of mineral properties, plant and equipment | 10.6 | 9.6 | (6) | ||||||||
Increased investment gain | 4.8 | 8.7 | |||||||||
Increased (decreased) gains on derivatives | 2.3 | (0.3) | |||||||||
Increased income tax expense | (24.3) | (0.4) | (7) | ||||||||
Increased interest and finance expense | (22.4) | (50.8) | (8) | ||||||||
Increased care and maintenance costs | (11.5) | (38.5) | (9) | ||||||||
Increased general and administrative expense | (8.2) | (17.0) | |||||||||
Other | (1.7) | (5.8) | |||||||||
Increased exploration and project development expense | (0.9) | (1.0) | |||||||||
Increased transaction and integration costs | (0.6) | (25.0) | |||||||||
Decreased gains and income from associates | — | (45.4) | (10) | ||||||||
Net loss, period ended September 30, 2023 | $ | (22.7) | $ | (53.6) |
PAN AMERICAN SILVER CORP. | 12 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Realized Metal Prices(1) | Quantities of Metal Sold(2) | |||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Silver | $ | 23.11 | $ | 18.76 | $ | 23.13 | $ | 21.72 | 5,827 | 4,263 | 15,992 | 13,406 | ||||||||||||||
Gold | $ | 1,927 | $ | 1,705 | $ | 1,939 | $ | 1,813 | 243.6 | 134.7 | 623.5 | 402.2 | ||||||||||||||
Zinc | $ | 2,336 | $ | 3,232 | $ | 2,714 | $ | 3,603 | 6.3 | 8.6 | 27.1 | 24.5 | ||||||||||||||
Lead | $ | 2,170 | $ | 1,944 | $ | 2,153 | $ | 2,162 | 4.6 | 4.1 | 13.9 | 13.0 | ||||||||||||||
Copper | $ | 8,343 | $ | 7,707 | $ | 8,577 | $ | 9,318 | 1.1 | 0.8 | 3.1 | 3.6 |
PAN AMERICAN SILVER CORP. | 13 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 14 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 15 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 16 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Outstanding as at November 7, 2023 | |||||
Common shares | 364,439 | ||||
Options | 370 | ||||
Total | 364,809 |
PAN AMERICAN SILVER CORP. | 17 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
2023 | Quarter Ended | ||||||||||
(In millions of USD, other than per share amounts) | Mar 31 | Jun 30 | Sep 30 | ||||||||
Revenue | $ | 390.3 | $ | 639.9 | $ | 616.3 | |||||
Mine operating earnings | $ | 77.2 | $ | 70.6 | $ | 61.9 | |||||
Earnings (loss) for the period attributable to equity holders | $ | 16.4 | $ | (46.8) | $ | (21.8) | |||||
Basic earnings (loss) per share | $ | 0.08 | $ | (0.13) | $ | (0.06) | |||||
Diluted earnings (loss) per share | $ | 0.08 | $ | (0.13) | $ | (0.06) | |||||
Cash flow from operating activities | $ | 51.3 | $ | 117.0 | $ | 114.6 | |||||
Cash dividends paid per share | $ | 0.10 | $ | 0.10 | $ | 0.10 | |||||
Other financial information | |||||||||||
Total assets | $ | 9,112.7 | $ | 8,962.2 | $ | 7,534.0 | |||||
Total long-term financial liabilities(1) | $ | 1,761.1 | $ | 1,731.2 | $ | 1,249.1 | |||||
Total attributable shareholders’ equity | $ | 4,997.4 | $ | 4,909.9 | $ | 4,848.3 |
2022 | Quarter Ended | Year Ended | |||||||||||||||
(In millions of USD, other than per share amounts) | Mar 31 | Jun 30 | Sep 30 | Dec 31 | Dec 31 | ||||||||||||
Revenue | $ | 439.9 | $ | 340.5 | $ | 338.9 | $ | 375.5 | $ | 1,494.8 | |||||||
Mine operating earnings (loss) | $ | 66.8 | $ | (31.7) | $ | (21.8) | $ | 35.0 | $ | 48.3 | |||||||
Earnings (loss) for the period attributable to equity holders | $ | 76.5 | $ | (174.0) | $ | (71.5) | $ | (172.8) | $ | (341.8) | |||||||
Basic earnings (loss) per share | $ | 0.36 | $ | (0.83) | $ | (0.34) | $ | (0.81) | $ | (1.62) | |||||||
Diluted earnings (loss) per share | $ | 0.36 | $ | (0.83) | $ | (0.34) | $ | (0.81) | $ | (1.62) | |||||||
Cash flow from operating activities(1) | $ | 68.8 | $ | 20.8 | $ | 54.4 | $ | (112.1) | $ | 31.9 | |||||||
Cash dividends paid per share | $ | 0.12 | $ | 0.12 | $ | 0.11 | $ | 0.10 | $ | 0.45 | |||||||
Other financial information | |||||||||||||||||
Total assets | $ | 3,248.5 | |||||||||||||||
Total long-term financial liabilities(2) | $ | 511.8 | |||||||||||||||
Total attributable shareholders’ equity | $ | 2,195.5 |
2021 | Quarter Ended | Year Ended | |||||||||||||||
(In millions of USD, other than per share amounts) | Mar 31 | Jun 30 | Sep 30 | Dec 31 | Dec 31 | ||||||||||||
Revenue | $ | 368.1 | $ | 382.1 | $ | 460.3 | $ | 422.2 | $ | 1,632.7 | |||||||
Mine operating earnings | $ | 90.0 | $ | 103.0 | $ | 98.9 | $ | 76.0 | $ | 367.9 | |||||||
(Loss) earnings for the period attributable to equity holders | $ | (7.8) | $ | 70.9 | $ | 20.3 | $ | 14.0 | $ | 97.4 | |||||||
Basic (loss) earnings per share | $ | (0.04) | $ | 0.34 | $ | 0.10 | $ | 0.06 | $ | 0.46 | |||||||
Diluted (loss) earnings per share | $ | (0.04) | $ | 0.34 | $ | 0.10 | $ | 0.06 | $ | 0.46 | |||||||
Cash flow from operating activities | $ | 29.9 | $ | 87.1 | $ | 157.0 | $ | 118.1 | $ | 392.1 | |||||||
Cash dividends paid per share | $ | 0.07 | $ | 0.07 | $ | 0.10 | $ | 0.10 | $ | 0.34 | |||||||
Other financial information | |||||||||||||||||
Total assets | $ | 3,518.6 | |||||||||||||||
Total long-term financial liabilities(1) | $ | 297.6 | |||||||||||||||
Total attributable shareholders’ equity | $ | 2,631.6 |
PAN AMERICAN SILVER CORP. | 18 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Three months ended September 30, 2023 | ||||||||||||||||||||||||||||||||||||||
La Colorada | Cerro Moro(1) | Huaron | San Vicente(2) | Jacobina(1) | El Peñon(1) | Timmins | Shahuindo | La Arena | Minera Florida(1) | Dolores | Total | |||||||||||||||||||||||||||
Ore tonnes mined – kt | 120 | 100 | 233 | 90 | 725 | 250 | 355 | 3,425 | 3,449 | 216 | 1,255 | 10,219 | ||||||||||||||||||||||||||
Waste tonnes mined – kt | 645 | 5,596 | 4,203 | 2,719 | 13,163 | |||||||||||||||||||||||||||||||||
Tonnes processed – kt | 119 | 105 | 232 | 93 | 757 | 353 | 360 | 3,437 | 3,577 | 236 | 1,926 | 11,196 | ||||||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||||||||
Silver – g/t | 285.8 | 406.1 | 144.1 | 285.7 | 98.0 | — | 6.9 | 0.8 | 17.2 | 17.5 | ||||||||||||||||||||||||||||
Gold – g/t | 8.43 | 2.09 | 2.70 | 2.86 | 0.44 | 0.28 | 3.40 | 0.57 | ||||||||||||||||||||||||||||||
Zinc – % | 1.69 | 2.38 | 3.21 | 0.93 | ||||||||||||||||||||||||||||||||||
Lead – % | 0.94 | 1.77 | 0.34 | 0.15 | ||||||||||||||||||||||||||||||||||
Copper – % | 0.60 | 0.22 | ||||||||||||||||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||||||||
Silver – koz | 1,009 | 1,265 | 896 | 779 | 1,011 | 4 | 68 | 11 | 89 | 555 | 5,687 | |||||||||||||||||||||||||||
Gold – koz | 0.6 | 27.0 | 0.3 | — | 48.3 | 29.1 | 32.3 | 32.4 | 23.1 | 24.2 | 27.0 | 244.2 | ||||||||||||||||||||||||||
Zinc – kt | 1.7 | 4.4 | 2.5 | 0.9 | 9.5 | |||||||||||||||||||||||||||||||||
Lead – kt | 1.0 | 3.3 | 0.3 | 0.3 | 4.9 | |||||||||||||||||||||||||||||||||
Copper – kt | — | 1.1 | 0.2 | 1.2 |
Three months ended September 30, 2022 | |||||||||||||||||||||||||||||
La Colorada | Huaron | San Vicente(2) | Manantial Espejo | Timmins | Shahuindo | La Arena | Dolores | Total | |||||||||||||||||||||
Ore tonnes mined – kt | 171 | 230 | 91 | 99 | 431 | 3,578 | 3,428 | 1,943 | 9,972 | ||||||||||||||||||||
Waste tonnes mined – kt | 5,333 | 5,187 | 6,707 | 17,227 | |||||||||||||||||||||||||
Tonnes processed – kt | 171 | 237 | 89 | 179 | 427 | 3,748 | 3,480 | 1,890 | 10,221 | ||||||||||||||||||||
Grade | |||||||||||||||||||||||||||||
Silver – g/t | 297.9 | 136.1 | 274.6 | 168.1 | — | 5.9 | 0.7 | 20.4 | |||||||||||||||||||||
Gold – g/t | 1.19 | 2.42 | 0.55 | 0.36 | 0.69 | ||||||||||||||||||||||||
Zinc – % | 1.77 | 2.23 | 3.21 | ||||||||||||||||||||||||||
Lead – % | 1.00 | 1.46 | 0.30 | ||||||||||||||||||||||||||
Copper – % | 0.50 | 0.16 | |||||||||||||||||||||||||||
Production | |||||||||||||||||||||||||||||
Silver – koz | 1,494 | 855 | 701 | 857 | 3 | 59 | 7 | 560 | 4,537 | ||||||||||||||||||||
Gold – koz | 1.0 | 0.3 | — | 6.4 | 31.1 | 35.9 | 21.5 | 32.5 | 129 | ||||||||||||||||||||
Zinc – kt | 2.5 | 4.1 | 2.3 | 8.9 | |||||||||||||||||||||||||
Lead – kt | 1.4 | 2.8 | 0.2 | 4.4 | |||||||||||||||||||||||||
Copper – kt | — | 0.8 | 0.1 | 0.9 |
PAN AMERICAN SILVER CORP. | 19 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Nine months ended September 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
La Colorada | Cerro Moro(1) | Huaron | San Vicente(2) | Manantial Espejo | Jacobina(1) | El Peñon(1) | Timmins | Shahuindo | La Arena | Minera Florida(1) | Dolores | Total | |||||||||||||||||||||||||||||
Ore tonnes mined – kt | 436 | 206 | 708 | 275 | — | 1,506 | 509 | 1,115 | 9,382 | 9,081 | 458 | 6,673 | 30,348 | ||||||||||||||||||||||||||||
Waste tonnes mined – kt | 1,177 | 13,582 | 13,926 | 9,368 | 38,053 | ||||||||||||||||||||||||||||||||||||
Tonnes processed – kt | 443 | 208 | 707 | 278 | 10 | 1,541 | 686 | 1,141 | 9,371 | 9,080 | 500 | 5,633 | 29,598 | ||||||||||||||||||||||||||||
Grade | |||||||||||||||||||||||||||||||||||||||||
Silver – g/t | 273.3 | 859.2 | 142.8 | 274.1 | 205.1 | 103.7 | — | 7.1 | 0.8 | 18.7 | 19.2 | ||||||||||||||||||||||||||||||
Gold – g/t | 8.63 | 2.13 | 2.02 | 2.96 | 2.69 | 0.47 | 0.29 | 3.14 | 0.59 | ||||||||||||||||||||||||||||||||
Zinc – % | 1.67 | 2.49 | 3.20 | 0.66 | |||||||||||||||||||||||||||||||||||||
Lead – % | 0.93 | 1.66 | 0.33 | 0.12 | |||||||||||||||||||||||||||||||||||||
Copper – % | 0.59 | 0.21 | |||||||||||||||||||||||||||||||||||||||
Production | |||||||||||||||||||||||||||||||||||||||||
Silver – koz | 3,586 | 2,661 | 2,703 | 2,240 | 191 | 2,053 | 12 | 207 | 30 | 203 | 1,718 | 15,602 | |||||||||||||||||||||||||||||
Gold – koz | 1.9 | 54.4 | 0.8 | 0.1 | 1.7 | 96.6 | 61.8 | 97.7 | 105.2 | 65.4 | 47.7 | 81.7 | 615.1 | ||||||||||||||||||||||||||||
Zinc – kt | 6.2 | 13.8 | 7.4 | 1.9 | 29.4 | ||||||||||||||||||||||||||||||||||||
Lead – kt | 3.6 | 9.7 | 0.8 | 0.6 | 14.6 | ||||||||||||||||||||||||||||||||||||
Copper – kt | 0.1 | 3.1 | 0.4 | 3.6 |
Nine months ended September 30, 2022 | ||||||||||||||||||||||||||||||||
La Colorada | Huaron | Morococha(2) | San Vicente(2) | Manantial Espejo | Timmins | Shahuindo | La Arena | Dolores | Total | |||||||||||||||||||||||
Ore tonnes mined – kt | 478 | 706 | 96 | 252 | 262 | 1,263 | 10,561 | 7,688 | 4,712 | 26,018 | ||||||||||||||||||||||
Waste tonnes mined – kt | 15,211 | 18,779 | 20,060 | 54,051 | ||||||||||||||||||||||||||||
Tonnes processed – kt | 478 | 706 | 101 | 249 | 483 | 1,246 | 10,785 | 7,739 | 5,882 | 27,668 | ||||||||||||||||||||||
Grade | ||||||||||||||||||||||||||||||||
Silver – g/t | 327.1 | 140.1 | 112.3 | 253.2 | 177.3 | — | 5.3 | 0.6 | 16.6 | |||||||||||||||||||||||
Gold – g/t | 1.27 | 2.63 | 0.46 | 0.34 | 0.62 | |||||||||||||||||||||||||||
Zinc – % | 1.85 | 2.19 | 3.12 | 2.99 | ||||||||||||||||||||||||||||
Lead – % | 1.03 | 1.46 | 0.96 | 0.29 | ||||||||||||||||||||||||||||
Copper – % | 0.62 | 0.60 | 0.20 | |||||||||||||||||||||||||||||
Production | ||||||||||||||||||||||||||||||||
Silver – koz | 4,589 | 2,635 | 324 | 1,823 | 2,453 | 12 | 184 | 23 | 1,651 | 13,692 | ||||||||||||||||||||||
Gold – koz | 2.6 | 0.7 | 0.1 | 0.1 | 17.7 | 100.7 | 101.7 | 62.3 | 102.3 | 388.1 | ||||||||||||||||||||||
Zinc – kt | 7.5 | 11.9 | 2.7 | 6.1 | 28.1 | |||||||||||||||||||||||||||
Lead – kt | 4.1 | 8.2 | 0.7 | 0.6 | 13.7 | |||||||||||||||||||||||||||
Copper – kt | — | 3.1 | 0.5 | 0.4 | 4.0 | |||||||||||||||||||||||||||
PAN AMERICAN SILVER CORP. | 20 |
Management Discussion and Analysis | |||||
For the three and six months ended June 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 21 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Silver Segment | Gold Segment | |||||||||||||
(In millions of USD, except as noted) | Three months ended September 30, 2023 | Three months ended September 30, 2022 | Three months ended September 30, 2023 | Three months ended September 30, 2022 | ||||||||||
Production costs | $ | 122.8 | $ | 98.6 | $ | 279.6 | $ | 176.6 | ||||||
Restructuring and end-of-life severance accruals and payments(1) | — | (9.3) | (0.8) | (0.1) | ||||||||||
Purchase price allocation inventory fair value adjustment(2) | — | — | — | — | ||||||||||
NRV inventory adjustments | 0.3 | 1.8 | 7.6 | (16.9) | ||||||||||
On-site direct operating costs | 123.1 | 91.1 | 286.4 | 159.6 | ||||||||||
Royalties | 6.1 | 3.8 | 6.2 | 3.9 | ||||||||||
Smelting, refining and direct selling charges(3) | 18.5 | 11.6 | 2.0 | 0.1 | ||||||||||
Cash cost of sales before by-product credits | 147.8 | 106.5 | 294.6 | 163.6 | ||||||||||
Silver segment by-product credits(3) | (94.8) | (53.4) | — | — | ||||||||||
Gold segment by-product credits(3) | — | — | (44.2) | (12.1) | ||||||||||
Cash Costs | $ | 53.0 | $ | 53.1 | $ | 250.4 | $ | 151.5 | ||||||
NRV inventory adjustments | (0.3) | (1.8) | (7.6) | 16.9 | ||||||||||
Sustaining capital | 19.8 | 13.4 | 56.9 | 35.3 | ||||||||||
Exploration and project development(4) | — | — | — | — | ||||||||||
Reclamation cost accretion(5) | 1.0 | 0.5 | 6.3 | 2.8 | ||||||||||
All-in sustaining costs | $ | 73.4 | $ | 65.3 | $ | 306.1 | $ | 206.4 | ||||||
Silver segment silver ounces sold (Moz) | 4.0 | 3.6 | — | — | ||||||||||
Gold segment gold ounces sold (koz) | — | — | 211.0 | 127.9 | ||||||||||
Cash costs per ounce sold | $ | 13.13 | $ | 14.62 | $ | 1,187 | $ | 1,184 | ||||||
AISC per ounce sold | $ | 18.19 | $ | 17.97 | $ | 1,451 | $ | 1,614 | ||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 18.27 | $ | 18.46 | $ | 1,487 | $ | 1,482 |
PAN AMERICAN SILVER CORP. | 22 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Silver Segment | Gold Segment | |||||||||||||
(In millions of USD, except as noted) | Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | Nine months ended September 30, 2023 | Nine months ended September 30, 2022 | ||||||||||
Production costs | $ | 331.4 | $ | 294.7 | $ | 706.9 | $ | 547.5 | ||||||
Restructuring and end-of-life severance accruals and payments(1) | (9.8) | (15.0) | (3.7) | (2.2) | ||||||||||
Purchase price allocation inventory fair value adjustment(2) | (6.2) | — | (26.0) | — | ||||||||||
NRV inventory adjustments | (2.9) | (4.7) | 34.5 | (87.7) | ||||||||||
On-site direct operating costs | 312.4 | 275.0 | 711.8 | 457.6 | ||||||||||
Royalties | 19.2 | 13.5 | 16.4 | 13.5 | ||||||||||
Smelting, refining and direct selling charges(3) | 51.2 | 41.5 | 2.8 | 0.2 | ||||||||||
Cash cost of sales before by-product credits | 382.7 | 330.1 | 731.0 | 471.2 | ||||||||||
Silver segment by-product credits(3) | (247.3) | (190.0) | — | — | ||||||||||
Gold segment by-product credits(3) | — | — | (105.4) | (42.5) | ||||||||||
Cash Costs | $ | 135.4 | $ | 140.1 | $ | 625.6 | $ | 428.8 | ||||||
NRV inventory adjustments | 2.9 | 4.7 | (34.5) | 87.7 | ||||||||||
Sustaining capital | 47.1 | 38.1 | 148.7 | 123.1 | ||||||||||
Exploration and project development(4) | — | — | — | — | ||||||||||
Reclamation cost accretion(5) | 2.6 | 1.7 | 17.4 | 8.4 | ||||||||||
All-in sustaining costs | $ | 188.1 | $ | 184.5 | $ | 757.1 | $ | 647.9 | ||||||
Silver segment silver ounces sold (Moz) | 11.7 | 11.5 | — | — | ||||||||||
Gold segment gold ounces sold (koz) | — | — | 561 | 381 | ||||||||||
Cash costs per ounce sold | $ | 11.55 | $ | 12.21 | $ | 1,116 | $ | 1,127 | ||||||
AISC per ounce sold | $ | 16.05 | $ | 16.09 | $ | 1,350 | $ | 1,703 | ||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 15.79 | $ | 15.68 | $ | 1,412 | $ | 1,472 |
PAN AMERICAN SILVER CORP. | 23 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Reconciliation of payments for mineral properties, plant and equipment and sustaining capital | Three months ended September 30, | Nine months ended September 30, | ||||||||||||
(in millions of USD) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Payments for mineral properties, plant and equipment(1) | $ | 108.6 | $ | 69.1 | $ | 260.2 | $ | 202.3 | ||||||
Add/(Subtract) | ||||||||||||||
Lease Payments(1) | 12.5 | 4.2 | 24.9 | 11.1 | ||||||||||
Repayment of loans(2) | 4.3 | 1.6 | 10.2 | 3.6 | ||||||||||
La Colorada investment (non-sustaining) capital | (14.0) | (24.0) | (34.2) | (49.9) | ||||||||||
Jacobina investment (non-sustaining) capital | (8.1) | — | (13.6) | — | ||||||||||
Huaron investment (non-sustaining) capital | (1.5) | — | (3.7) | — | ||||||||||
MARA investment (non-sustaining) capital | (17.3) | — | (35.9) | — | ||||||||||
Other investment (non-sustaining) capital | (7.9) | (2.3) | (12.1) | (5.9) | ||||||||||
Sustaining Capital | $ | 76.7 | $ | 48.7 | $ | 195.8 | $ | 161.2 |
PAN AMERICAN SILVER CORP. | 24 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
SILVER SEGMENT | Three months ended September 30, 2023 | |||||||||||||||||||
(In millions of USD, except as noted) | La Colorada | Cerro Moro | Huaron | San Vicente | Manantial Espejo | Consolidated Silver Segment | ||||||||||||||
Production Costs | $ | 31.7 | $ | 52.0 | $ | 26.2 | $ | 9.1 | $ | 3.8 | $ | 122.8 | ||||||||
NRV inventory adjustments | 0.3 | — | — | — | — | 0.3 | ||||||||||||||
On-site direct operating costs | 32.0 | 52.0 | 26.2 | 9.1 | 3.8 | 123.1 | ||||||||||||||
Royalties | 0.2 | 2.5 | — | 3.5 | — | 6.1 | ||||||||||||||
Smelting, refining & direct selling costs | 2.0 | 9.0 | 6.3 | 1.1 | — | 18.5 | ||||||||||||||
Cash Costs before by-product credits | 34.2 | 63.5 | 32.6 | 13.7 | 3.8 | 147.8 | ||||||||||||||
Silver segment by-product credits | (6.8) | (59.7) | (23.1) | (2.9) | (2.4) | (94.8) | ||||||||||||||
Cash Costs | $ | 27.4 | $ | 3.9 | $ | 9.5 | $ | 10.8 | $ | 1.4 | $ | 53.0 | ||||||||
NRV inventory adjustments | (0.3) | — | — | — | — | (0.3) | ||||||||||||||
Sustaining capital | 6.7 | 5.5 | 6.4 | 1.1 | — | 19.8 | ||||||||||||||
Exploration and project development | — | — | — | — | — | — | ||||||||||||||
Reclamation cost accretion | 0.2 | 0.3 | 0.3 | 0.1 | 0.2 | 1.0 | ||||||||||||||
All-in sustaining costs | $ | 34.0 | $ | 9.6 | $ | 16.2 | $ | 12.0 | $ | 1.6 | $ | 73.4 | ||||||||
Silver segment silver ounces sold (Moz) | 1.12 | 1.39 | 0.80 | 0.56 | 0.16 | 4.03 | ||||||||||||||
Cash cost per ounce sold | $ | 24.46 | $ | 2.77 | $ | 11.94 | $ | 19.19 | $ | 8.58 | $ | 13.13 | ||||||||
AISC per ounce sold | $ | 30.30 | $ | 6.91 | $ | 20.37 | $ | 21.37 | $ | 9.64 | $ | 18.19 | ||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 30.61 | $ | 6.91 | $ | 20.37 | $ | 21.37 | $ | 9.64 | $ | 18.27 |
SILVER SEGMENT | Three months ended September 30, 2022 | ||||||||||||||||
(In millions of USD, except as noted) | La Colorada | Huaron | San Vicente | Manantial Espejo | Consolidated Silver Segment | ||||||||||||
Production Costs | $ | 24.4 | $ | 27.6 | $ | 12.8 | $ | 34.3 | $ | 98.6 | |||||||
Restructuring and end-of-life severance accruals and payments | — | — | — | (9.8) | (9.3) | ||||||||||||
NRV inventory adjustments | — | — | — | 1.8 | 1.8 | ||||||||||||
On-site direct operating costs | 24.4 | 27.6 | 12.8 | 26.3 | 91.1 | ||||||||||||
Royalties | 0.1 | — | 3.1 | 0.6 | 3.8 | ||||||||||||
Smelting, refining & direct selling costs | 3.0 | 4.5 | 2.4 | 1.8 | 11.6 | ||||||||||||
Cash Costs before by-product credits | 27.5 | 32.1 | 18.2 | 28.7 | 106.5 | ||||||||||||
Silver segment by-product credits | (10.0) | (23.7) | (9.3) | (10.3) | (53.4) | ||||||||||||
Cash Costs | $ | 17.5 | $ | 8.4 | $ | 8.8 | $ | 18.4 | $ | 53.1 | |||||||
NRV inventory adjustments | — | — | — | (1.8) | (1.8) | ||||||||||||
Sustaining capital | 8.5 | 3.8 | 0.3 | 1.0 | 13.4 | ||||||||||||
Exploration and project development | — | — | — | — | — | ||||||||||||
Reclamation cost accretion | 0.1 | 0.2 | 0.1 | 0.1 | 0.5 | ||||||||||||
All-in sustaining costs | $ | 26.1 | $ | 12.3 | $ | 9.2 | $ | 17.7 | $ | 65.3 | |||||||
Silver segment silver ounces sold (Moz) | 1.41 | 0.77 | 0.68 | 0.78 | 3.63 | ||||||||||||
Cash cost per ounce sold | $ | 12.43 | $ | 10.93 | $ | 12.98 | $ | 23.69 | $ | 14.62 | |||||||
AISC per ounce sold | $ | 18.50 | $ | 16.09 | $ | 13.49 | $ | 22.80 | $ | 17.97 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 18.50 | $ | 16.09 | $ | 13.49 | $ | 25.11 | $ | 18.46 |
PAN AMERICAN SILVER CORP. | 25 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
SILVER SEGMENT | Nine months ended September 30, 2023 | |||||||||||||||||||
(In thousands of USD, except as noted) | La Colorada | Cerro Moro | Huaron | San Vicente | Manantial Espejo | Consolidated Silver Segment | ||||||||||||||
Production Costs | $ | 93.7 | $ | 88.2 | $ | 79.3 | $ | 38.1 | $ | 32.1 | $ | 331.4 | ||||||||
Restructuring and end-of-life severance accruals and payments | — | (1.0) | — | — | (8.8) | (9.8) | ||||||||||||||
Purchase price allocation inventory fair value adjustment | — | (6.2) | — | — | — | (6.2) | ||||||||||||||
NRV inventory adjustments | (2.9) | — | — | — | (0.1) | (2.9) | ||||||||||||||
On-site direct operating costs | 90.8 | 80.9 | 79.3 | 38.1 | 23.2 | 312.4 | ||||||||||||||
Royalties | 0.4 | 5.5 | — | 12.9 | 0.3 | 19.2 | ||||||||||||||
Smelting, refining & direct selling costs | 8.0 | 15.0 | 19.6 | 7.1 | 1.6 | 51.2 | ||||||||||||||
Cash Costs before by-product credits | 99.3 | 101.5 | 98.8 | 58.1 | 25.1 | 382.7 | ||||||||||||||
Silver segment by-product credits | (25.9) | (101.7) | (76.5) | (26.4) | (16.9) | (247.3) | ||||||||||||||
Cash Costs | $ | 73.4 | $ | (0.2) | $ | 22.3 | $ | 31.7 | $ | 8.2 | $ | 135.4 | ||||||||
NRV inventory adjustments | 2.9 | — | — | — | 0.1 | 2.9 | ||||||||||||||
Sustaining capital | 14.5 | 14.4 | 15.2 | 2.8 | 0.2 | 47.1 | ||||||||||||||
Exploration and project development | — | — | — | — | — | — | ||||||||||||||
Reclamation cost accretion | 0.5 | 0.5 | 0.8 | 0.2 | 0.5 | 2.6 | ||||||||||||||
All-in sustaining costs | $ | 91.2 | $ | 14.8 | $ | 38.3 | $ | 34.7 | $ | 9.0 | $ | 188.1 | ||||||||
Silver segment silver ounces sold (koz) | 3.72 | 2.55 | 2.44 | 2.05 | 0.96 | 11.72 | ||||||||||||||
Cash cost per ounce sold | $ | 19.72 | $ | (0.08) | $ | 9.12 | $ | 15.51 | $ | 8.56 | $ | 11.55 | ||||||||
AISC per ounce sold | $ | 24.50 | $ | 5.80 | $ | 15.68 | $ | 16.99 | $ | 9.39 | $ | 16.05 | ||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 23.73 | $ | 5.80 | $ | 15.68 | $ | 16.99 | $ | 9.30 | $ | 15.79 |
SILVER SEGMENT | Nine months ended September 30, 2022 | |||||||||||||||||||
(In thousands of USD, except as noted) | La Colorada | Huaron | Morococha | San Vicente | Manantial Espejo | Consolidated Silver Segment | ||||||||||||||
Production Costs | $ | 70.4 | $ | 73.6 | $ | 20.5 | $ | 38.5 | $ | 91.6 | $ | 294.7 | ||||||||
Restructuring and end-of-life severance accruals and payments | — | — | (5.2) | — | (9.8) | (15.0) | ||||||||||||||
NRV inventory adjustments | — | — | — | — | (4.7) | (4.7) | ||||||||||||||
On-site direct operating costs | 70.4 | 73.6 | 15.3 | 38.5 | 77.1 | 275.0 | ||||||||||||||
Royalties | 0.6 | — | — | 10.3 | 2.6 | 13.5 | ||||||||||||||
Smelting, refining & direct selling costs | 9.7 | 16.1 | 3.6 | 6.3 | 5.9 | 41.5 | ||||||||||||||
Cash Costs before by-product credits | 80.7 | 89.7 | 18.9 | 55.1 | 85.7 | 330.1 | ||||||||||||||
Silver segment by-product credits | (34.5) | (78.9) | (17.0) | (24.7) | (34.9) | (190.0) | ||||||||||||||
Cash Costs | $ | 46.2 | $ | 10.8 | $ | 1.9 | $ | 30.4 | $ | 50.8 | $ | 140.1 | ||||||||
NRV inventory adjustments | — | — | — | — | 4.7 | 4.7 | ||||||||||||||
Sustaining capital | 17.6 | 10.0 | 0.3 | 6.5 | 3.6 | 38.1 | ||||||||||||||
Exploration and project development | — | |||||||||||||||||||
Reclamation cost accretion | 0.4 | 0.6 | 0.1 | 0.2 | 0.4 | 1.7 | ||||||||||||||
All-in sustaining costs | $ | 64.2 | $ | 21.4 | $ | 2.4 | $ | 37.2 | $ | 59.4 | $ | 184.5 | ||||||||
Silver segment silver ounces sold (koz) | 4.41 | 2.17 | 0.33 | 2.07 | 2.49 | 11.47 | ||||||||||||||
Cash cost per ounce sold | $ | 10.49 | $ | 4.97 | $ | 5.68 | $ | 14.65 | $ | 20.43 | $ | 12.21 | ||||||||
AISC per ounce sold | $ | 14.57 | $ | 9.84 | $ | 7.08 | $ | 17.92 | $ | 23.91 | $ | 16.09 | ||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 14.57 | $ | 9.84 | $ | 7.08 | $ | 17.92 | $ | 22.03 | $ | 15.68 |
PAN AMERICAN SILVER CORP. | 26 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
GOLD SEGMENT | Three months ended September 30, 2023 | |||||||||||||||||||||||||
(In millions of USD, except as noted) | Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida | Dolores | Consolidated Gold Segment | ||||||||||||||||||
Production Costs | $ | 40.6 | $ | 59.1 | $ | 43.4 | $ | 34.0 | $ | 29.5 | $ | 42.6 | $ | 30.3 | $ | 279.6 | ||||||||||
Restructuring and end-of-life severance accruals and payments | (0.3) | — | — | — | — | — | (0.5) | (0.8) | ||||||||||||||||||
NRV inventory adjustments | — | — | — | — | — | — | 7.6 | 7.6 | ||||||||||||||||||
On-site direct operating costs | 40.3 | 59.1 | 43.4 | 34.0 | 29.5 | 42.6 | 37.4 | 286.4 | ||||||||||||||||||
Royalties | 1.4 | — | 2.0 | — | — | 0.6 | 2.3 | 6.2 | ||||||||||||||||||
Smelting, refining & direct selling costs | 0.6 | 1.5 | — | — | — | (0.2) | — | 2.0 | ||||||||||||||||||
Cash Costs before by-product credits | 42.2 | 60.7 | 45.4 | 34.0 | 29.5 | 43.0 | 39.7 | 294.6 | ||||||||||||||||||
Gold segment by-product credits | — | (24.0) | — | (1.8) | (0.2) | (4.2) | (13.9) | (44.2) | ||||||||||||||||||
Cash Costs of Sales | $ | 42.2 | $ | 36.7 | $ | 45.4 | $ | 32.2 | $ | 29.3 | $ | 38.8 | $ | 25.9 | $ | 250.4 | ||||||||||
NRV inventory adjustments | — | — | — | — | — | — | (7.6) | (7.6) | ||||||||||||||||||
Sustaining capital | 15.8 | 2.8 | 13.2 | 16.3 | 4.1 | 2.7 | 2.1 | 56.9 | ||||||||||||||||||
Exploration and project development | — | — | — | — | — | — | — | — | ||||||||||||||||||
Reclamation cost accretion | 0.4 | 0.5 | 0.1 | 0.9 | 1.6 | 0.7 | 2.0 | 6.3 | ||||||||||||||||||
All-in sustaining costs | $ | 58.3 | $ | 40.0 | $ | 58.7 | $ | 49.4 | $ | 35.1 | $ | 42.2 | $ | 22.4 | $ | 306.1 | ||||||||||
Gold segment gold ounces sold (koz) | 45.6 | 29.1 | 29.0 | 33.2 | 22.7 | 24.3 | 27.1 | 211.0 | ||||||||||||||||||
Cash cost per ounce sold | $ | 925 | $ | 1,259 | $ | 1,565 | $ | 971 | $ | 1,293 | $ | 1,597 | $ | 954 | $ | 1,187 | ||||||||||
AISC per ounce sold | $ | 1,279 | $ | 1,372 | $ | 2,024 | $ | 1,488 | $ | 1,546 | $ | 1,740 | $ | 827 | $ | 1,451 | ||||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,279 | $ | 1,372 | $ | 2,024 | $ | 1,488 | $ | 1,546 | $ | 1,740 | $ | 1,107 | $ | 1,487 | ||||||||||
GOLD SEGMENT | Three months ended September 30, 2022 | ||||||||||||||||
(In millions of USD, except as noted) | Dolores | Shahuindo | La Arena | Timmins | Consolidated Gold Segment | ||||||||||||
Production Costs | $ | 65.7 | $ | 36.5 | $ | 28.5 | $ | 45.8 | $ | 176.6 | |||||||
Restructuring and end-of-life severance accruals and payments | (0.1) | — | — | — | (0.1) | ||||||||||||
NRV inventory adjustments | (16.9) | — | — | — | (16.9) | ||||||||||||
On-site direct operating costs | 48.7 | 36.5 | 28.5 | 45.8 | 159.6 | ||||||||||||
Royalties | 2.4 | — | — | 1.5 | 3.9 | ||||||||||||
Smelting, refining & direct selling costs | — | — | — | 0.1 | 0.1 | ||||||||||||
Cash Costs before by-product credits | 51.2 | 36.5 | 28.5 | 47.4 | 163.6 | ||||||||||||
Gold segment by-product credits | (11.3) | (0.6) | (0.1) | — | (12.1) | ||||||||||||
Cash Costs of Sales | $ | 39.9 | $ | 35.9 | $ | 28.4 | $ | 47.3 | $ | 151.5 | |||||||
NRV inventory adjustments | 16.9 | — | — | — | 16.9 | ||||||||||||
Sustaining capital | 5.3 | 12.0 | 9.7 | 8.2 | 35.3 | ||||||||||||
Exploration and project development | — | — | — | — | — | ||||||||||||
Reclamation cost accretion | 1.4 | 0.6 | 0.7 | — | 2.8 | ||||||||||||
All-in sustaining costs | $ | 63.5 | $ | 48.6 | $ | 38.8 | $ | 55.6 | $ | 206.4 | |||||||
Gold segment gold ounces sold (koz) | 33.4 | 35.1 | 25.1 | 34.3 | 127.9 | ||||||||||||
Cash cost per ounce sold | $ | 1,193 | $ | 1,023 | $ | 1,128 | $ | 1,382 | $ | 1,184 | |||||||
AISC per ounce sold | $ | 1,899 | $ | 1,385 | $ | 1,542 | $ | 1,625 | $ | 1,614 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,393 | $ | 1,385 | $ | 1,542 | $ | 1,625 | $ | 1,482 |
PAN AMERICAN SILVER CORP. | 27 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
GOLD SEGMENT | Nine months ended September 30, 2023 | |||||||||||||||||||||||||
(In thousands of USD, except as noted) | Jacobina | El Peñon | Timmins | Shahuindo | La Arena | Minera Florida | Dolores | Consolidated Gold Segment | ||||||||||||||||||
Production Costs | $ | 83.9 | $ | 127.3 | $ | 141.3 | $ | 105.2 | $ | 87.3 | $ | 84.4 | $ | 77.5 | $ | 706.9 | ||||||||||
Restructuring and end-of-life severance accruals and payments | (0.5) | — | — | — | — | — | (3.3) | (3.7) | ||||||||||||||||||
Purchase price allocation inventory fair value adjustment | (12.6) | (12.4) | — | — | — | (1.0) | — | (26.0) | ||||||||||||||||||
NRV inventory adjustments | — | — | — | — | — | — | 34.5 | 34.5 | ||||||||||||||||||
On-site direct operating costs | 70.8 | 114.9 | 141.3 | 105.2 | 87.3 | 83.5 | 108.8 | 711.8 | ||||||||||||||||||
Royalties | 2.7 | 0.1 | 5.8 | — | — | 0.8 | 6.9 | 16.4 | ||||||||||||||||||
Smelting, refining & direct selling costs | 0.6 | 1.5 | 0.1 | — | — | 0.6 | — | 2.8 | ||||||||||||||||||
Cash Costs before by-product credits | 74.1 | 116.6 | 147.2 | 105.2 | 87.3 | 84.9 | 115.7 | 731.0 | ||||||||||||||||||
Gold segment by-product credits | — | (49.9) | (0.1) | (4.4) | (0.8) | (11.2) | (38.9) | (105.4) | ||||||||||||||||||
Cash Costs of Sales | $ | 74.1 | $ | 66.7 | $ | 147.1 | $ | 100.8 | $ | 86.5 | $ | 73.6 | $ | 76.8 | $ | 625.6 | ||||||||||
NRV inventory adjustments | — | — | — | — | — | — | (34.5) | (34.5) | ||||||||||||||||||
Sustaining capital | 30.2 | 11.6 | 30.0 | 46.7 | 9.0 | 13.2 | 8.0 | 148.7 | ||||||||||||||||||
Exploration and project development | — | |||||||||||||||||||||||||
Reclamation cost accretion | 0.8 | 1.0 | 0.4 | 2.7 | 4.9 | 1.5 | 6.1 | 17.4 | ||||||||||||||||||
All-in sustaining costs | $ | 105.1 | $ | 79.3 | $ | 177.5 | $ | 150.3 | $ | 100.5 | $ | 88.3 | $ | 56.3 | $ | 757.1 | ||||||||||
Gold segment gold ounces sold | 91.6 | 65.4 | 97.3 | 105.6 | 70.1 | 49.0 | 81.7 | 560.8 | ||||||||||||||||||
Cash cost per ounce sold | $ | 808 | $ | 1,020 | $ | 1,511 | $ | 955 | $ | 1,234 | $ | 1,504 | $ | 939 | $ | 1,116 | ||||||||||
AISC per ounce sold | $ | 1,146 | $ | 1,213 | $ | 1,823 | $ | 1,423 | $ | 1,433 | $ | 1,804 | $ | 688 | $ | 1,350 | ||||||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,146 | $ | 1,213 | $ | 1,823 | $ | 1,423 | $ | 1,433 | $ | 1,804 | $ | 1,111 | $ | 1,412 | ||||||||||
GOLD SEGMENT | Nine months ended September 30, 2022 | ||||||||||||||||
(In thousands of USD, except as noted) | Dolores | Shahuindo | La Arena | Timmins | Consolidated Gold Segment | ||||||||||||
Production Costs | $ | 235.2 | $ | 102.1 | $ | 73.2 | $ | 137.0 | $ | 547.5 | |||||||
Restructuring and end-of-life severance accruals and payments | (2.2) | — | — | — | (2.2) | ||||||||||||
NRV inventory adjustments | (87.7) | — | — | — | (87.7) | ||||||||||||
On-site direct operating costs | 145.3 | 102.1 | 73.2 | 137.0 | 457.6 | ||||||||||||
Royalties | 8.3 | — | — | 5.1 | 13.5 | ||||||||||||
Smelting, refining & direct selling costs | — | — | — | 0.1 | 0.2 | ||||||||||||
Cash Costs before by-product credits | 153.6 | 102.1 | 73.2 | 142.3 | 471.2 | ||||||||||||
Gold segment by-product credits | (37.6) | (4.1) | (0.6) | (0.1) | (42.5) | ||||||||||||
Cash Costs of Sales | $ | 116.1 | $ | 97.9 | $ | 72.6 | $ | 142.2 | $ | 428.8 | |||||||
NRV inventory adjustments | 87.7 | — | — | — | 87.7 | ||||||||||||
Sustaining capital | 31.2 | 27.8 | 36.6 | 27.4 | 123.1 | ||||||||||||
Exploration and project development | — | ||||||||||||||||
Reclamation cost accretion | 4.1 | 1.9 | 2.2 | 0.1 | 8.4 | ||||||||||||
All-in sustaining costs | $ | 239.1 | $ | 127.7 | $ | 111.4 | $ | 169.7 | $ | 647.9 | |||||||
Gold segment gold ounces sold | 108.4 | 99.0 | 68.7 | 104.4 | 380.5 | ||||||||||||
Cash cost per ounce sold | $ | 1,071 | $ | 989 | $ | 1,056 | $ | 1,362 | $ | 1,127 | |||||||
AISC per ounce sold | $ | 2,207 | $ | 1,289 | $ | 1,620 | $ | 1,626 | $ | 1,703 | |||||||
AISC per ounce sold (excluding NRV inventory adjustments) | $ | 1,398 | $ | 1,289 | $ | 1,620 | $ | 1,626 | $ | 1,472 |
PAN AMERICAN SILVER CORP. | 28 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
(In millions of USD, except as noted) | 2023 | 2022 | 2023 | 2022 | ||||||||||
Net loss for the period | $ | (22.7) | $ | (71.2) | $ | (53.6) | $ | (168.0) | ||||||
Adjust for: | ||||||||||||||
Impairment charges | — | — | 42.4 | 99.1 | ||||||||||
Unrealized foreign exchange (gains) losses | (1.0) | 3.8 | — | 9.7 | ||||||||||
Net realizable value heap inventory expense | 3.1 | 30.6 | 5.3 | 108.2 | ||||||||||
Acquired Mines fair value inventory expense | — | — | 32.3 | — | ||||||||||
Derivative unrealized losses | 7.8 | 7.8 | 10.9 | 4.7 | ||||||||||
Loss (Gains and income) from associates | — | — | 0.4 | (45.0) | ||||||||||
Severance provisions | 2.8 | 9.4 | 23.7 | 17.4 | ||||||||||
Mineral property, plant and equipment (gains) losses on sale | (10.0) | 0.6 | (8.3) | 1.3 | ||||||||||
Transaction and integration costs | 0.6 | — | 25.0 | — | ||||||||||
Investment loss | 7.8 | 12.6 | 8.8 | 17.5 | ||||||||||
Closure and decommissioning liability | — | — | 1.9 | — | ||||||||||
Effect of taxes on adjusting items | (1.7) | (5.7) | (20.9) | (19.8) | ||||||||||
Effect of foreign exchange on taxes | 16.4 | 9.3 | (28.8) | (2.4) | ||||||||||
Total adjustments | $ | 25.8 | $ | 68.4 | $ | 92.7 | $ | 190.7 | ||||||
Adjusted earnings (loss) for the period | $ | 3.1 | $ | (2.8) | $ | 39.1 | $ | 22.7 | ||||||
Weighted average shares for the period | 364.4 | 210.5 | 313.7 | 210.5 | ||||||||||
Adjusted earnings (loss) per share for the period | $ | 0.01 | $ | (0.01) | $ | 0.12 | $ | 0.11 |
PAN AMERICAN SILVER CORP. | 29 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 30 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Zinc gains | $ | — | $ | — | $ | — | $ | 1.8 | ||||||
Diesel (losses) gains | — | (0.6) | — | 4.2 | ||||||||||
Other | — | (1.0) | 0.8 | (1.2) | ||||||||||
$ | — | $ | (1.6) | $ | 0.8 | $ | 4.8 |
PAN AMERICAN SILVER CORP. | 31 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
USD Notional | Weighted Average USD Forward Rate | Weighted Average USD Put Rate | Weighted Average USD Call Rate | Expiry Dates | |||||||||||||
Mexican peso collars | $ | 4.5 | $ | 21.00 | $ | 24.35 | October 2023 to December 2023 | ||||||||||
Peruvian sol forwards | $ | 11.4 | $ | 4.02 | October 2023 to December 2023 | ||||||||||||
Canadian dollar collars | $ | 21.0 | $ | 1.30 | $ | 1.34 | October 2023 to December 2023 | ||||||||||
Canadian dollar forwards(1) | $ | 39.0 | $ | 1.39 | October 2023 to December 2024 | ||||||||||||
Chilean peso collars(2) | $ | 20.7 | $ | 868.40 | $ | 933.77 | October 2023 to December 2024 | ||||||||||
Chilean peso forwards | $ | 32.8 | $ | 863.95 | October 2023 to December 2024 | ||||||||||||
Brazilian real collars | $ | 5.4 | $ | 5.25 | $ | 5.90 | October 2023 to December 2023 | ||||||||||
Brazilian real forwards | $ | 19.0 | $ | 5.33 | October 2023 to December 2024 |
Three months ended September 30, | Nine months ended September 30, | |||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||
Mexican peso gains (losses) | $ | 0.1 | $ | 0.4 | $ | 2.4 | $ | 0.8 | ||||||
Peruvian sol gains (losses) | (0.5) | (0.7) | 1.5 | 1.0 | ||||||||||
Canadian dollar gains (losses) | (1.2) | (4.6) | 1.0 | (5.0) | ||||||||||
Chilean peso gains (losses) | (2.0) | — | (4.8) | — | ||||||||||
Brazilian real gains (losses) | (0.6) | — | 0.3 | — | ||||||||||
$ | (4.2) | $ | (4.9) | $ | 0.4 | $ | (3.2) |
PAN AMERICAN SILVER CORP. | 32 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 33 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 34 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 35 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 36 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 37 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 38 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 39 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 40 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 41 |
Management Discussion and Analysis | |||||
For the three and nine months ended September 30, 2023 and 2022 (tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants except per share amounts and per ounce amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. | 42 |
Date: November 7, 2023 | |||||
/s/ "Michael Steinmann" | |||||
Michael Steinmann | |||||
Chief Executive Officer |
Date: November 7, 2023 | |||||
/s/ "Ignacio Couturier" | |||||
Ignacio Couturier | |||||
Chief Financial Officer |
Q3 2023 NEWS RELEASE All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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. | 1 |
Q3 2023 NEWS RELEASE All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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. | 2 |
Q3 2023 NEWS RELEASE All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, options, and warrants, except per share amounts, unless otherwise noted. |
Three months ended September 30, 2023 | Twelve months ended December 31, 2022 | |||||||
Weighted average shares during period (millions) | 364.4 | 210.5 | ||||||
Shares outstanding end of period (millions) | 364.4 | 210.7 | ||||||
Three months ended September 30, | ||||||||
2023 | 2022 | |||||||
FINANCIAL | ||||||||
Revenue | $ | 616.3 | $ | 338.9 | ||||
Mine operating earnings (loss) | $ | 61.9 | $ | (21.8) | ||||
Net loss | $ | (22.7) | $ | (71.2) | ||||
Basic loss per share(1) | $ | (0.06) | $ | (0.34) | ||||
Adjusted earnings (loss)(2) | $ | 3.1 | $ | (2.8) | ||||
Basic adjusted earnings (loss) per share(1) | $ | 0.01 | $ | (0.01) | ||||
Net cash generated from operating activities | $ | 114.6 | $ | 54.4 | ||||
Net cash generated from operating activities before changes in working capital(2) | $ | 117.6 | $ | 32.8 | ||||
Sustaining capital expenditures(2) | $ | 76.7 | $ | 48.7 | ||||
Non-sustaining capital expenditures(2) | $ | 48.7 | $ | 26.2 | ||||
Cash dividend paid per share | $ | 0.10 | $ | 0.11 | ||||
PRODUCTION | ||||||||
Silver (thousand ounces) | 5,687 | 4,537 | ||||||
Gold (thousand ounces) | 244.2 | 128.8 | ||||||
Zinc (thousand tonnes) | 9.5 | 8.9 | ||||||
Lead (thousand tonnes) | 4.9 | 4.4 | ||||||
Copper (thousand tonnes) | 1.2 | 0.9 | ||||||
CASH COSTS(2) ($/ounce) | ||||||||
Silver Segment | 13.13 | 14.62 | ||||||
Gold Segment | 1,187 | 1,184 | ||||||
AISC(2) ($/ounce) | ||||||||
Silver Segment | 18.19 | 17.97 | ||||||
Gold Segment | 1,451 | 1,614 | ||||||
AVERAGE REALIZED PRICES(3) | ||||||||
Silver ($/ounce) | 23.11 | 18.76 | ||||||
Gold ($/ounce) | 1,927 | 1,705 | ||||||
Zinc ($/tonne) | 2,336 | 3,232 | ||||||
Lead ($/tonne) | 2,170 | 1,944 | ||||||
Copper ($/tonne) | 8,343 | 7,707 |
PAN AMERICAN SILVER CORP. | 3 |
Date: | November 8, 2023 | ||||
Time: | 11:00 am ET (8:00 am PT) | ||||
Dial-in numbers: | 1-888-886-7786 (toll-free in Canada and the U.S.) | ||||
+1-416-764-8658 (international participants) | |||||
Conference ID: | 94321211 | ||||
Webcast: | https://events.q4inc.com/attendee/486024912 |
PAN AMERICAN SILVER CORP. | 4 |
Q3 2023 NEWS RELEASE All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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. | 5 |
Q3 2023 NEWS RELEASE All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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. | 6 |
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