Management's Discussion and Analysis PAN AMERICAN SILVER CORP. 11 Management Discussion and Analysis For the years ended December 31, 2023 and 2022 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS INTRODUCTION This Management's Discussion and Analysis ("MD&A") is intended to help the reader understand the significa ...

Pan American Silver Corp. (NYSE:PAAS) Q3 2023 Earnings Conference Call November 8, 2023 11:00 AM ET Company Participants Siren Fisekci - Vice President, Investor Relations Michael Steinmann - President & Chief Executive Officer Steve Busby - Chief Operating Officer Sean McAleer - Senior Vice President of Strategic Initiatives Martin Wafforn - Senior Vice President-Technical Services and Process Optimization Conference Call Participants Cosmos Chiu - CIBC Capital Markets Ovais Habib - Scotiabank Carey MacRur ...

CONFERENCE CALL // November 8, 2023 NYSE:PAAS | TSX:PAAS - 3 4 Q3 2023 CONSOLIDATED FINANCIAL RESULTS PRODUCTION Gold Production (ounces '000s) | --- | --- | --- | --- | --- | |---------------------------------------------------------|----------------------|-------------------------------|------------------------------|-----------------| | | Cash Costs \nQ3 2023 | (1) ($ per ounce) \nYTD 2023 | AISC ($ per ounce) \nQ3 2023 | (1) \nYTD 2023 | | La Colorada | | 24.46 19.72 30.30 24.50 | | | | Cerro Moro (4) | ...

[Unaudited Condensed Interim Consolidated Financial Statements](index=2&type=section&id=Unaudited%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Condensed Interim Consolidated Statements of Financial Position](index=2&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Financial%20Position) As of September 30, 2023, the company's total assets significantly increased to **$7.53 billion** from **$3.25 billion** at the end of 2022, primarily driven by a substantial rise in 'Mineral properties, plant and equipment' from **$2.23 billion** to **$5.89 billion** due to the Yamana acquisition Consolidated Statement of Financial Position Highlights (in millions of U.S. dollars) | Account | September 30, 2023 | December 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $1,476.5 | $804.4 | +$672.1 | | **Mineral properties, plant and equipment** | $5,885.1 | $2,226.4 | +$3,658.7 | | **Total Assets** | **$7,534.0** | **$3,248.5** | **+$4,285.5** | | **Total Current Liabilities** | $644.4 | $380.8 | +$263.6 | | **Total Liabilities** | **$2,626.9** | **$1,046.9** | **+$1,580.0** | | **Total Equity** | **$4,907.1** | **$2,201.6** | **+$2,705.5** | [Condensed Interim Consolidated Statements of Earnings and Comprehensive Earnings](index=3&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Earnings%20and%20Comprehensive%20Earnings) For Q3 2023, revenue surged to **$616.3 million** from **$338.9 million** year-over-year, resulting in a net loss of **$22.7 million**, a significant improvement from the **$71.2 million** loss in Q3 2022 Key Earnings Data (in millions of U.S. dollars, except per share amounts) | Metric | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $616.3 | $338.9 | $1,646.5 | $1,119.3 | | **Mine operating earnings (loss)** | $61.9 | $(21.8) | $209.7 | $13.3 | | **Net Loss** | $(22.7) | $(71.2) | $(53.6) | $(168.0) | | **Basic Loss Per Share** | $(0.06) | $(0.34) | $(0.17) | $(0.80) | [Condensed Interim Consolidated Statements of Cash Flows](index=4&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2023, net cash from operating activities significantly increased to **$282.9 million**, while investing activities generated a net cash inflow of **$468.5 million**, primarily due to the Yamana acquisition and asset sales Cash Flow Summary (in millions of U.S. dollars) | Activity | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Net cash from Operating Activities** | $282.9 | $144.0 | | **Net cash from Investing Activities** | $468.5 | $(187.2) | | **Net cash from Financing Activities** | $(506.3) | $(84.3) | | **Increase (Decrease) in Cash** | $240.6 | $(130.5) | | **Cash and cash equivalents at end of period** | $347.5 | $153.1 | [Condensed Interim Consolidated Statements of Changes in Equity](index=5&type=section&id=Condensed%20Interim%20Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased from **$2.20 billion** at the end of 2022 to **$4.91 billion** as of September 30, 2023, primarily driven by the issuance of **153.8 million shares** valued at **$2.82 billion** for the Yamana acquisition - The Yamana acquisition was the main driver of the equity change, with the company issuing **153.8 million shares** valued at **$2.82 billion**[7](index=7&type=chunk) Equity Reconciliation (in millions of U.S. dollars) | Description | Amount | | :--- | :--- | | **Balance, December 31, 2022** | **$2,201.6** | | Net loss for the period | $(53.6) | | Other comprehensive loss | $(24.3) | | The Acquisition (Note 4) | $3,312.2 | | Dispositions (Note 5) | $(446.8) | | Dividends paid | $(94.0) | | Other | $11.5 | | **Balance, September 30, 2023** | **$4,907.1** | [Notes to the Condensed Interim Consolidated Financial Statements](index=6&type=section&id=Notes%20to%20the%20Condensed%20Interim%20Consolidated%20Financial%20Statements) [Note 1: Nature of Operations](index=6&type=section&id=1.%20NATURE%20OF%20OPERATIONS) Pan American Silver Corp. is a Canadian company engaged in silver and gold mining, exploration, development, and related activities across the Americas, with a key event being the acquisition of Yamana Gold Inc. on March 31, 2023 - The company is primarily engaged in silver and gold mining and related activities across the Americas[10](index=10&type=chunk) - On March 31, 2023, the Company acquired Yamana Gold Inc., adding mines in Brazil, Chile, and Argentina[11](index=11&type=chunk) - The Escobal mine in Guatemala remains on care and maintenance pending completion of a government-led consultation process[10](index=10&type=chunk) [Note 4: Yamana Acquisition](index=9&type=section&id=4.%20YAMANA%20ACQUISITION) On March 31, 2023, the company acquired 100% of Yamana Gold Inc. for **153.8 million shares** valued at **$2.8 billion**, adding **$3.31 billion** in net assets and contributing **$598.4 million of revenue** for the nine months ended September 30, 2023 - Completed the acquisition of Yamana Gold Inc. on March 31, 2023, for **153.8 million shares** valued at **$2.8 billion**[28](index=28&type=chunk) Preliminary Purchase Price Allocation (in millions of U.S. dollars) | Item | Value | | :--- | :--- | | Mineral properties, plant and equipment | $5,273.2 | | Cash and cash equivalents | $259.5 | | Debt assumed | $(943.1) | | Deferred taxes liability | $(1,083.2) | | **Net assets acquired** | **$3,312.2** | - For the nine months ended September 30, 2023, the Yamana acquisition contributed **$598.4 million of revenue** and **$9.6 million of net loss**[37](index=37&type=chunk) - Acquisition-related costs for the nine months ended September 30, 2023, were **$25.0 million**[35](index=35&type=chunk)[36](index=36&type=chunk) [Note 5: Dispositions](index=12&type=section&id=5.%20DISPOSITIONS) In Q3 2023, the company completed two significant dispositions, selling its **56.25% interest** in the MARA project for **$475 million cash** and its **92.3% interest** in the Morococha mine for **$25 million cash**, recognizing a **$6.7 million gain** on the latter - Sold its **56.25% interest** in the MARA project for **$475 million cash** plus a **0.75% NSR royalty**[38](index=38&type=chunk) - Sold its **92.3% interest** in the Morococha mine for **$25 million cash**, recognizing a **$6.7 million gain** on the sale[40](index=40&type=chunk) - An impairment charge of **$42.4 million** was recorded on Morococha upon its classification as an asset held for sale in June 2023[40](index=40&type=chunk) [Note 6: Financial Instruments](index=13&type=section&id=6.%20FINANCIAL%20INSTRUMENTS) The company is exposed to credit, liquidity, and market risks, including currency, interest rate, and metal price fluctuations, and recorded a **$4.2 million** loss on derivatives in Q3 2023, primarily from foreign currency contracts - The company's policy is to not hedge the price of precious metals to provide equity investors with exposure to price changes[73](index=73&type=chunk) - Credit risk arises from concentrate sales, with receivables of **$23.6 million**, and from precious metal inventory at refineries, valued at **$45.4 million** as of September 30, 2023[57](index=57&type=chunk)[58](index=58&type=chunk) Derivative (Losses) Gains (in millions of U.S. dollars) | Period | Q3 2023 | Q3 2022 | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total** | $(4.2) | $(6.5) | $1.2 | $1.5 | [Note 10: Mineral Properties, Plant and Equipment](index=19&type=section&id=10.%20MINERAL%20PROPERTIES,%20PLANT%20AND%20EQUIPMENT) The carrying value of mineral properties, plant, and equipment increased to **$5.89 billion** at September 30, 2023, primarily due to properties acquired from the Yamana acquisition, including Jacobina, El Peñon, Minera Florida, and Cerro Moro Carrying Value of Mineral Properties, Plant and Equipment (in millions of U.S. dollars) | Date | Carrying Value | | :--- | :--- | | September 30, 2023 | $5,885.1 | | December 31, 2022 | $2,226.4 | - The increase in asset value is mainly due to properties acquired from Yamana (Note 4)[81](index=81&type=chunk) - The company's interest in the ADLF / Jeronimo project was classified as an asset held for sale, with mineral properties valued at **$141.6 million**[83](index=83&type=chunk)[85](index=85&type=chunk) [Note 11: Impairment](index=20&type=section&id=11.%20IMPAIRMENT) For the nine months ended September 30, 2023, the company recorded a pre-tax impairment charge of **$42.4 million** related to the sale of its interest in the Morococha mine, aligning its carrying value with the **$25.0 million** sale price Impairment Expense (in millions of U.S. dollars) | Period | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | **Impairment Expense** | $42.4 | $99.1 | - The 2023 impairment of **$42.4 million** was recorded on the Morococha mine net assets to adjust its carrying value to the sale price[87](index=87&type=chunk) - The 2022 impairment of **$99.1 million** was related to the Dolores Mine CGU[89](index=89&type=chunk) [Note 17: Debt](index=25&type=section&id=17.%20DEBT) As of September 30, 2023, total non-current debt significantly increased to **$704.9 million** due to the assumption of two Senior Notes with a combined carrying value of **$680.8 million** from the Yamana acquisition Debt Summary (in millions of U.S. dollars) | Debt Instrument | September 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Senior Notes | $680.8 | $— | | SL-Credit Facility | $— | $160.0 | | Other loans | $38.9 | $33.7 | | **Total Non-current Debt** | **$704.9** | **$180.0** | - Two Senior Notes were acquired with Yamana: one maturing in 2027 and another in 2031[107](index=107&type=chunk) - The SL-Credit Facility was upsized to **$750.0 million** and was fully undrawn as of September 30, 2023[108](index=108&type=chunk) [Note 19: Share Capital and Employee Compensation Plans](index=28&type=section&id=19.%20SHARE%20CAPITAL%20AND%20EMPLOYEE%20COMPENSATION%20PLANS) The company declared quarterly dividends of **$0.10 per common share** for the first three quarters of 2023, with **370.0 thousand** stock options outstanding and **313.9 million Contingent Value Rights (CVRs)** convertible into **15.6 million common shares** upon the Escobal mine's restart - The company declared dividends of **$0.10 per common share** for each of the first three quarters of 2023[126](index=126&type=chunk) - **313.9 million Contingent Value Rights (CVRs)** are outstanding, convertible into **15.6 million common shares** upon the first commercial shipment from the Escobal mine[127](index=127&type=chunk) Outstanding Stock Options (in thousands) | Date | Options Outstanding | Weighted Avg. Exercise Price (CAD$) | | :--- | :--- | :--- | | Dec 31, 2022 | 377.0 | $23.01 | | Sep 30, 2023 | 370.0 | $22.90 | [Note 25: Segmented Information](index=32&type=section&id=25.%20Segmented%20Information) Following the Yamana acquisition, the Gold segment became the largest contributor to revenue, generating **$446.8 million** in Q3 2023, while the Silver segment generated **$169.5 million** in revenue - The Yamana acquisition added the Jacobina, El Peñon, and Minera Florida mines to the Gold Segment, and the Cerro Moro mine to the Silver Segment[139](index=139&type=chunk) Segment Performance - Q3 2023 (in millions of U.S. dollars) | Segment | Revenue | Mine Operating Earnings | | :--- | :--- | :--- | | **Silver Segment** | $169.5 | $22.2 | | **Gold Segment** | $446.8 | $42.4 | | **Total** | **$616.3** | **$61.9** | Segment Assets - September 30, 2023 (in millions of U.S. dollars) | Segment | Total Assets | Net Assets | | :--- | :--- | :--- | | **Silver Segment** | $1,133.6 | $861.5 | | **Gold Segment** | $5,419.6 | $3,935.6 | | **Other Segment** | $980.8 | $110.0 | | **Total** | **$7,534.0** | **$4,907.1** | [Note 27: Commitments](index=39&type=section&id=27.%20COMMITMENTS) The company has ongoing commitments from the Yamana acquisition, including a silver stream agreement requiring delivery of **20% of silver** from Cerro Moro until a **7 million ounce threshold** is met, with **5.7 million ounces** delivered to date - A commitment exists to deliver **20% of silver** from Cerro Moro to Sandstorm Gold Ltd. until a **7 million ounce threshold** is met; **5.7 million ounces** have been delivered to date[165](index=165&type=chunk) - The company has approximately **$22.9 million** in commitments for construction activities at its sites and projects[166](index=166&type=chunk)

Pan American Silver Corp. (NYSE:PAAS) Q2 2023 Earnings Conference Call August 10, 2023 11:00 AM ET Company Participants Siren Fisekci - Vice President of Investor Relations Michael Steinmann - President and Chief Executive Officer Ignacio Couturier - Chief Financial Officer Steve Busby - Chief Operating Officer Sean McAleer - Senior Vice President of Strategic Initiatives Conference Call Participants Lawson Winder - Bank of America Merrill Lynch Craig Hutchison - TD Securities Don DeMarco - National Bank Fi ...

Financial Performance - The company reported revenue of $639.9 million for Q2 2023[27] - Adjusted earnings were $14.7 million, or $0.04 per share[27, 43] - Net loss for the period was $47.4 million[27] - Net cash generated from operating activities was $117.0 million[27] Production and Sales - Silver production reached 6.024 million ounces in Q2 2023[29] - Gold production was 248.2 thousand ounces in Q2 2023[29] - Payable silver metal produced was 5,812 thousand ounces, with 5,719 thousand ounces sold[4] - Payable gold metal produced was 247.6 thousand ounces, with 246.4 thousand ounces sold[4] Liquidity and Debt - Total cash and available credit amounted to $879.2 million, including $409.2 million in cash and investments[16] - Total debt was $1,135.3 million, related to senior notes, the SL-Credit Facility, and construction loans and leases[18] Outlook - The company reaffirmed its 2023 operating outlook for silver production between 21.00 and 23.00 million ounces, and gold production between 870.0 and 970.0 thousand ounces[76]

Unaudited Condensed Interim Consolidated Financial Statements and Notes FOR THE THREE AND SIX MONTHS ENDING JUNE 30, 2023 Condensed Interim Consolidated Statements of Financial Position (unaudited, in millions of U.S. dollars) | | | June 30, | December 31, | | --- | --- | --- | --- | | | | 2023 | 2022 | | Assets | | | | | Current assets | | | | | Cash and cash equivalents (Note 23) | $ | 367.5 $ | 107.0 | | Investments (Note 6) | | 41.7 | 35.3 | | Trade and other receivables | | 156.3 | 136.6 | | Income tax ...

Financial Data and Key Metrics Changes - Revenue in Q1 2023 was $390.3 million, with net earnings of $16.5 million or $0.08 per share, and adjusted earnings of $21.2 million or $0.10 per share [13][38] - Cash flow from operations totaled $51.3 million, with a cash and short-term investment balance of $513 million [13][38] - The company assumed two senior notes totaling $783 million as part of the Yamana acquisition, with $325 million drawn on its credit facility [5] Business Line Data and Key Metrics Changes - Silver segment production costs were impacted by restricted mining rates in the high-grade zone of the La Colorada mine, with all-in sustaining costs at $14.13 per ounce [38] - Gold segment production costs were $1,196 per ounce, with a significant decrease in all-in sustaining costs due to a large net realizable value (NRV) inventory adjustment at Dolores [39] Market Data and Key Metrics Changes - The company expects to produce between 21 million to 23 million ounces of silver and 870,000 to 970,000 ounces of gold in 2023 [41] - All-in sustaining costs for silver are projected to be between $14 to $16 per ounce, and for gold between $1,275 to $1,425 per ounce [41] Company Strategy and Development Direction - The company is focused on integrating the Yamana assets and is on track to realize $40 million to $60 million in annual synergies [7] - Capital allocation priorities include reducing debt, investing in growth, and providing dividends to shareholders, with a dividend of $0.10 per share announced for Q1 [5][13] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing inflationary pressures but emphasized operational excellence leading to results ahead of expectations [38] - The integration of Yamana assets is progressing well, and the company is optimistic about future cash flow generation from the expanded portfolio [3][7] Other Important Information - The company is planning to release its 2022 sustainability report later in Q2, which will include performance metrics for both original and acquired assets [15] - The consultation process for the Escobal project is ongoing, with meetings scheduled to continue through the summer [82] Q&A Session Summary Question: Impact of Mexican peso on costs - Management acknowledged the strong performance of the Mexican peso and its impact on costs, with a hedge program in place covering approximately 24% of Mexican peso costs [20][21] Question: Federal mining market changes in Mexico - Management is monitoring the recent amendments to federal mining laws, noting that they primarily apply to new concessions and will not significantly impact existing operations like La Colorada Skarn [22][23] Question: Back-end weighted production guidance - Management explained that production is back-end weighted due to mine sequencing, with higher ore flow expected in Q4 [24][26] Question: Cash costs and NRV adjustments - Cash costs for the silver segment were $12.19 and for the gold segment were $1,120, with NRV adjustments positively impacting costs [83] Question: Asset disposals post-Yamana acquisition - Management confirmed that there will be disposals of properties as part of the ongoing review of the newly acquired assets [84] Question: Care and maintenance costs visibility - Management indicated that care and maintenance costs are necessary for projects like Escobal and MARA, with potential for adjustments as projects progress [92]

Management's Discussion and Analysis FOR THE THREE MONTHS ENDED MARCH 31, 2023 Management Discussion and Analysis For the three months ended March 31, 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 | Introduction | | 2 | | --- | --- | --- | | Core Business | and Strategy | 3 | | Q1 2023 Highlights | | 4 | | Yamana Acquisition | | 6 | | Environmental, | Soci ...

Unidentified Analyst I had a quick question on Escobal. I know you guys mentioned there is no time line but I guess in your annual report said that in 2023, there's no expectation of reduction in Escobal. So should we assume you guys believe that your earliest production would be back online would be in 2024? Or is that a piece of, I guess, misinformation? What are your thoughts on it? Sean McAleer This is Sean McAleer. We've got the consultation process ongoing right now. And the process has obviously take ...