[Introduction](index=3&type=section&id=Introduction) This MD&A explains Pan American Silver's performance and outlook, presented in USD under IFRS and utilizing non-GAAP measures - This MD&A provides an understanding of factors influencing Pan American Silver Corp's performance and future outlook, to be read with the 2021 Annual Financial Statements and Q1 2022 Financial Statements[3](index=3&type=chunk) - All amounts are in **USD**, and financial reporting adheres to **IFRS**[3](index=3&type=chunk) - The MD&A refers to non-GAAP measures like 'all-in sustaining costs per ounce sold', 'cash costs per ounce sold', 'adjusted earnings', and 'working capital', which are detailed in the 'Alternative Performance (Non-GAAP) Measures' section[4](index=4&type=chunk) [Core Business and Strategy](index=4&type=section&id=Core%20Business%20and%20Strategy) The company engages in silver and gold mining with a vision to be the premier silver mining company through sustainable growth - Pan American Silver Corp is engaged in silver and gold mining, including exploration, development, extraction, processing, refining, and reclamation, operating mines in **Peru, Mexico, Argentina, Bolivia, and Canada**[7](index=7&type=chunk) - The Company's vision is to be the **world's premier silver mining company**, focusing on sustainable profits, growing mineral reserves, fostering positive stakeholder relationships, and continuously improving asset quality[8](index=8&type=chunk)[9](index=9&type=chunk) [Q1 2022 Highlights](index=5&type=section&id=Highlights) Q1 2022 saw stable silver production, higher revenue and net earnings, but increased costs and slightly lower adjusted earnings [Operations](index=5&type=section&id=Operations) In Q1 2022, silver production was comparable to Q1 2021, while gold and base metal production saw slight decreases Q1 2022 Production Highlights (YoY) | Metal | Q1 2022 Production | Q1 2021 Production | Change (%) | | :---- | :------------------ | :------------------ | :--------- | | Silver | 4.62 million ounces | 4.58 million ounces | +0.9% | | Gold | 131.0 thousand ounces | 137.6 thousand ounces | -5% | | Zinc | 10.2 thousand tonnes | 13.1 thousand tonnes | -22.1% | | Lead | 4.7 thousand tonnes | 5.0 thousand tonnes | -6% | | Copper | 1.8 thousand tonnes | 2.1 thousand tonnes | -14.3% | - **Silver production was comparable YoY**, with increases at La Colorada and Manantial Espejo offsetting declines at San Vicente and Morococha[10](index=10&type=chunk)[12](index=12&type=chunk)[14](index=14&type=chunk) - **Gold production decreased 5%** due to lower output at La Arena and Dolores, partially offset by Shahuindo[10](index=10&type=chunk)[12](index=12&type=chunk)[14](index=14&type=chunk) - The Company **reaffirms its 2022 operating outlook** for silver, gold, zinc, lead, and copper production[11](index=11&type=chunk)[13](index=13&type=chunk)[15](index=15&type=chunk) [Financial](index=5&type=section&id=Financial) The company reported a significant increase in net earnings and cash flow, driven by higher sales and favorable adjustments Q1 2022 Financial Highlights (YoY) | Metric | Q1 2022 (USD millions) | Q1 2021 (USD millions) | Change (YoY) | | :----- | :--------------------- | :--------------------- | :----------- | | Revenue | $439.9 | $368.1 | +20% | | Net Earnings | $76.8 | ($7.6) | +$84.4 | | Basic EPS | $0.36 | ($0.04) | +$0.40 | | Cash Flow from Operations | $68.8 | $29.9 | +$38.9 | | Adjusted Earnings | $32.0 | $37.4 | -$5.4 | | Basic Adjusted EPS | $0.15 | $0.18 | -$0.03 | - **Revenue increased 20%** due to a 40% increase in silver ounces sold and a 9% increase in gold ounces sold, largely from inventory draw-downs[17](index=17&type=chunk)[86](index=86&type=chunk) - **Net earnings significantly improved** to $76.8 million from a loss of $7.6 million, primarily due to a **$44.6 million fair-value adjustment gain** on the Maverix investment and a **$26.5 million decrease in income tax expense**[18](index=18&type=chunk)[22](index=22&type=chunk) - **Cash flow from operations increased by $38.9 million**, reflecting an $8.8 million increase in cash mine operating earnings and a $32.3 million reduction in non-cash working capital build-up[16](index=16&type=chunk) - **Adjusted earnings decreased** to $32.0 million ($0.15 per share) from $37.4 million ($0.18 per share) in Q1 2021[19](index=19&type=chunk) Q1 2022 Cash Costs and AISC (YoY) | Segment | Metric | Q1 2022 | Q1 2021 | Change (YoY) | | :------ | :----- | :------ | :------ | :----------- | | Silver | Cash Costs/oz | $10.23 | $12.30 | -$2.07 | | Silver | AISC/oz | $13.41 | $16.99 | -$3.58 | | Gold | Cash Costs/oz | $1,069 | $846 | +$223 | | Gold | AISC/oz | $1,502 | $1,058 | +$444 | - **Silver Segment Cash Costs per ounce decreased by $2.07**, primarily due to higher base metal prices and lower costs at La Colorada, despite inflationary pressures[19](index=19&type=chunk)[20](index=20&type=chunk)[21](index=21&type=chunk)[23](index=23&type=chunk) [Environmental, Social, and Governance (ESG)](index=7&type=section&id=Environmental%2C%20Social%2C%20and%20Governance) The company is committed to sustainable practices and released its 2021 Sustainability Report in accordance with global standards - Pan American is committed to responsible and sustainable business practices, encompassing environmental care, community development, safe workplaces, and transparent operations[26](index=26&type=chunk) - The Company released its **2021 Sustainability Report** on May 5, 2022, prepared in accordance with **GRI Standards** and aligned with **SASB Standard**[27](index=27&type=chunk) [Operating Performance](index=7&type=section&id=Operating%20Performance) This section details Q1 2022 production volumes, costs, and individual mine performance across silver, gold, and base metals [Silver and Gold Production](index=7&type=section&id=Silver%20and%20Gold%20Production) Consolidated silver production in Q1 2022 was 4.62 million ounces, slightly up from Q1 2021, while gold production decreased by 5% Q1 2022 Silver and Gold Production by Operation (koz) | Operation | Silver Production (koz) | Gold Production (koz) | | :-------- | :---------------------- | :-------------------- | | La Colorada | 1,419 | 0.6 | | Huaron | 899 | 0.2 | | Morococha | 324 | 0.1 | | San Vicente | 476 | — | | Manantial Espejo | 903 | 6.1 | | Dolores | 518 | 34.6 | | Shahuindo | 66 | 34.3 | | La Arena | 11 | 23.3 | | Timmins | 4 | 31.8 | | **Total** | **4,619** | **131.0** | - Total silver production for Q1 2022 was **4,619 koz**, slightly higher than Q1 2021 (4,583 koz)[30](index=30&type=chunk) - Total gold production was **131.0 koz**, down from Q1 2021 (137.6 koz)[30](index=30&type=chunk) [Base Metal Production](index=8&type=section&id=Base%20Metal%20Production) Base metal production in Q1 2022 saw decreases across zinc, lead, and copper compared to Q1 2021 Q1 2022 Base Metal Production (kt) | Metal | Q1 2022 (kt) | Q1 2021 (kt) | | :---- | :----------- | :----------- | | Zinc | 10.2 | 13.1 | | Lead | 4.7 | 5.0 | | Copper | 1.8 | 2.1 | - Payable base metal production also decreased, with zinc at **8.5 kt** (Q1 2021: 10.9 kt), lead at **4.4 kt** (Q1 2021: 4.7 kt), and copper at **1.6 kt** (Q1 2021: 1.7 kt)[31](index=31&type=chunk) [Cash Costs and AISC](index=8&type=section&id=Cash%20Costs%20and%20AISC) Silver Segment costs decreased significantly due to by-product prices, while Gold Segment costs increased from lower grades and inflation Q1 2022 Consolidated Cash Costs and AISC (per ounce) | Segment | Metric | Q1 2022 | Q1 2021 | Change (YoY) | | :------ | :----- | :------ | :------ | :----------- | | Silver | Cash Costs | $10.23 | $12.30 | -$2.07 | | Silver | AISC | $13.41 | $16.99 | -$3.58 | | Gold | Cash Costs | $1,069 | $846 | +$223 | | Gold | AISC | $1,502 | $1,058 | +$444 | - **Silver Segment Cash Costs decreased by $2.07/oz**, primarily due to higher base metal prices and lower costs at La Colorada[20](index=20&type=chunk)[22](index=22&type=chunk) - **Gold Segment Cash Costs increased by $223/oz**, mainly due to lower mined grades, inflationary pressures, and supply chain shortages[21](index=21&type=chunk)[24](index=24&type=chunk) [Individual Mine Performance](index=9&type=section&id=Individual%20Mine%20Performance) Individual mine performance varied, with strong results at La Colorada and Manantial Espejo, while others faced cost and grade challenges [La Colorada Operation](index=9&type=section&id=La%20Colorada%20Operation) Silver production increased 33% due to higher grades, leading to a significant decrease in both Cash Costs and AISC La Colorada Q1 2022 Performance (YoY) | Metric | Q1 2022 | Q1 2021 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Silver Production (koz) | 1,419 | 1,065 | +33% | | Cash Costs ($/oz) | $9.73 | $15.62 | -$5.89 | | AISC ($/oz) | $12.19 | $42.44 | -$30.25 | - **Silver production increased 33%** due to higher grades and throughput from improved ventilation[38](index=38&type=chunk)[40](index=40&type=chunk) - **AISC decreased by $30.25/oz**, driven by higher silver grades, by-product metal prices, and lower sustaining capital[38](index=38&type=chunk)[40](index=40&type=chunk) [Huaron Operation](index=10&type=section&id=Huaron%20Operation) Higher base metal prices drove down cash costs, offsetting inflationary pressures and lower zinc and copper production Huaron Q1 2022 Performance (YoY) | Metric | Q1 2022 | Q1 2021 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Silver Production (koz) | 899 | 884 | +2% | | Zinc Production (kt) | 4.05 | 5.13 | -21% | | Copper Production (kt) | 1.22 | 1.56 | -22% | | Lead Production (kt) | 2.58 | 2.30 | +12% | | Cash Costs ($/oz) | ($1.16) | $2.35 | -$3.51 | | AISC ($/oz) | $3.49 | $4.82 | -$1.33 | - **Cash Costs decreased by $3.50/oz**, primarily from higher base metal prices, offsetting inflationary pressures[43](index=43&type=chunk)[44](index=44&type=chunk) [Dolores Operation](index=11&type=section&id=Dolores%20Operation) Lower grades from a reserve estimate shortfall led to decreased silver and gold production and significantly higher costs Dolores Q1 2022 Performance (YoY) | Metric | Q1 2022 | Q1 2021 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Silver Production (koz) | 518 | 634 | -18% | | Gold Production (koz) | 34.6 | 37.0 | -7% | | Cash Costs ($/gold oz) | $976 | $718 | +$258 | | AISC ($/gold oz) | $1,682 | $723 | +$959 | - **Silver production decreased 18%** and **gold production decreased 7%**, largely due to lower grades[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) - **AISC increased by $959/oz**, driven by lower grades, higher operating costs, and negative NRV inventory adjustments[46](index=46&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk) [Shahuindo Operation](index=12&type=section&id=Shahuindo%20Operation) Gold production increased 16% due to higher throughput, though costs rose from a higher waste-to-ore ratio and inflation Shahuindo Q1 2022 Performance (YoY) | Metric | Q1 2022 | Q1 2021 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Gold Production (koz) | 34.26 | 29.54 | +16% | | Cash Costs ($/oz) | $915 | $751 | +$164 | | AISC ($/oz) | $1,152 | $844 | +$308 | - **Gold production increased 16%** due to higher tonnes stacked and improved recovery, despite lower grades[51](index=51&type=chunk)[52](index=52&type=chunk) - **AISC increased by $308/oz**, primarily due to a higher waste-to-ore ratio, lower gold grades, and inflationary pressures[51](index=51&type=chunk)[52](index=52&type=chunk) [La Arena Operation](index=13&type=section&id=La%20Arena%20Operation) Gold production decreased 30% due to lower grades, resulting in significantly higher cash costs and AISC La Arena Q1 2022 Performance (YoY) | Metric | Q1 2022 | Q1 2021 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Gold Production (koz) | 23.35 | 33.15 | -30% | | Cash Costs ($/oz) | $963 | $598 | +$365 | | AISC ($/oz) | $1,424 | $1,072 | +$352 | - **Gold production decreased 30%** due to lower grades and a decrease in the ratio of ounces recovered to stacked[55](index=55&type=chunk)[56](index=56&type=chunk) - **Cash Costs increased by $365/oz**, mainly reflecting inflationary pressures and lower grades[55](index=55&type=chunk)[56](index=56&type=chunk) [Timmins Operation](index=14&type=section&id=Timmins%20Operation) Gold production saw a slight increase from higher mining rates, but costs rose due to lower grades and inflation Timmins Q1 2022 Performance (YoY) | Metric | Q1 2022 | Q1 2021 | Change (YoY) | | :----- | :------ | :------ | :----------- | | Gold Production (koz) | 31.79 | 30.98 | +3% | | Cash Costs ($/oz) | $1,414 | $1,292 | +$122 | | AISC ($/oz) | $1,695 | $1,568 | +$127 | - **Cash Costs increased by $122/oz**, primarily from lower grades and higher operating costs due to inflationary pressures[60](index=60&type=chunk)[61](index=61&type=chunk) [Other Operations (Morococha, San Vicente, Manantial Espejo)](index=15&type=section&id=Other%20Operations) Morococha was placed on care and maintenance, San Vicente saw lower grades, while Manantial Espejo's production increased Other Operations Q1 2022 Performance (YoY) | Operation | Metric | Q1 2022 | Q1 2021 | Change (YoY) | | :-------- | :----- | :------ | :------ | :----------- | | Morococha | Silver Production (koz) | 324 | 521 | -37.8% | | Morococha | Cash Costs ($/oz) | $5.68 | $13.89 | -$8.21 | | San Vicente | Silver Production (koz) | 476 | 701 | -32.1% | | San Vicente | Cash Costs ($/oz) | $19.39 | $13.35 | +$6.04 | | Manantial Espejo | Silver Production (koz) | 903 | 697 | +29.6% | | Manantial Espejo | Cash Costs ($/oz) | $15.42 | $19.78 | -$4.36 | - **Morococha production decreased** as the operation was placed on care and maintenance in February 2022[65](index=65&type=chunk)[66](index=66&type=chunk) - **Manantial Espejo saw increased production** from higher tonnages and grades at COSE and Joaquin[65](index=65&type=chunk)[66](index=66&type=chunk) [2022 Annual Operating Outlook](index=16&type=section&id=2022%20Annual%20Operating%20Outlook) The company reaffirms its 2022 annual outlook for metal production, costs, and capital expenditures based on Q1 performance [Production Relative to Forecast](index=16&type=section&id=Production%20Relative%20to%20Forecast) Management reaffirms the 2022 annual consolidated metal production outlook based on Q1 2022 results and expected future production 2022 Operating Outlook vs. Q1 2022 Production | Metal | 2022 Operating Outlook | Q1 2022 Production | | :---- | :--------------------- | :----------------- | | Silver | 19.00 - 20.50 Moz | 4.62 Moz | | Gold | 550.0 - 605.0 koz | 131.0 koz | | Zinc | 35.0 - 40.0 kt | 10.2 kt | | Lead | 15.0 - 17.0 kt | 4.7 kt | | Copper | 5.5 - 6.5 kt | 1.8 kt | - The Company **reaffirms its 2022 Operating Outlook** for annual consolidated metal production[69](index=69&type=chunk) [Cash Costs and AISC Compared to Forecast](index=16&type=section&id=Cash%20Costs%20and%20AISC%20Compared%20to%20Forecast) The overall 2022 Operating Outlook for consolidated Cash Costs and AISC is reaffirmed despite some Q1 2022 variances 2022 Operating Outlook vs. Q1 2022 Cash Costs and AISC (per ounce) | Segment | Metric | 2022 Operating Outlook | Q1 2022 | | :------ | :----- | :--------------------- | :------ | | Silver Segment | Cash Costs | $10.70 - $12.20 | $10.23 | | Silver Segment | AISC | $14.50 - $16.00 | $13.41 | | Gold Segment | Cash Costs | $970 - $1,070 | $1,069 | | Gold Segment | AISC | $1,240 - $1,365 | $1,502 | - Management **reaffirms the 2022 Operating Outlook for Cash Costs and AISC**, despite some Q1 2022 results being outside the forecast ranges[71](index=71&type=chunk)[73](index=73&type=chunk) - Forecast estimates are influenced by assumptions for productivity, input costs, commodity prices (e.g., **$22.50/oz silver, $1,750/oz gold**), and currency exchange rates[70](index=70&type=chunk)[72](index=72&type=chunk) [Capital Expenditures Relative to Forecast](index=17&type=section&id=Capital%20Expenditures%20Relative%20to%20Forecast) The Company reaffirms its 2022 Operating Outlook for sustaining and project capital expenditures, with Q1 spending on track 2022 Capital Expenditures Outlook vs. Q1 2022 ($ millions) | Category | 2022 Operating Outlook | Q1 2022 | | :------- | :--------------------- | :------ | | Sustaining Capital Sub-total | $200.0 - $210.0 | $56.0 | | Project Capital Sub-total | $80.0 - $95.0 | $9.2 | | **Total Capital** | **$280.0 - $305.0** | **$65.2** | - Management **reaffirms the 2022 Operating Outlook** for sustaining and project capital[74](index=74&type=chunk) [Project Development Update](index=17&type=section&id=Project%20Development%20Update) Project development capital in Q1 2022 totaled $9.1 million, primarily focused on the La Colorada Skarn project Q1 2022 Project Development Capital (thousands of USD) | Project | Q1 2022 | Q1 2021 | | :------ | :------ | :------ | | La Colorada projects | $8,560 | $4,082 | | Timmins projects | $401 | $644 | | Other projects | $163 | $225 | | **Total** | **$9,124** | **$4,951** | - Total project development capital in Q1 2022 was **$9.1 million**, primarily invested in the **La Colorada Skarn project** for exploration, development, and construction[75](index=75&type=chunk) [Overview of Q1 2022 Financial Results](index=18&type=section&id=Overview%20of%20Q1%202022%20Financial%20Results) This section provides a detailed analysis of Q1 2022 financial statements, including income, cash flow, and adjusted earnings [Selected Annual and Quarterly Information](index=18&type=section&id=Selected%20Annual%20and%20Quarterly%20Information) Q1 2022 financial performance showed significant improvement in net earnings and cash flow compared to Q1 2021 Selected Quarterly Financial Results (thousands of USD) | Metric | Q1 2022 | Q1 2021 | Q4 2021 | Q3 2021 | Q2 2021 | Q1 2020 | | :----- | :------ | :------ | :------ | :------ | :------ | :------ | | Revenue | $439,888 | $368,099 | $422,170 | $460,349 | $382,132 | $358,428 | | Mine operating earnings | $66,755 | $89,964 | $76,039 | $98,887 | $103,048 | $50,058 | | Earnings for the period attributable to equity holders | $76,517 | ($7,798) | $14,036 | $20,251 | $70,939 | ($76,807) | | Basic (loss) earnings per share | $0.36 | ($0.04) | $0.06 | $0.10 | $0.34 | ($0.37) | | Cash flow from operating activities | $68,758 | $29,850 | $118,098 | $157,017 | $87,143 | $114,051 | | Cash dividends paid per share | $0.12 | $0.07 | $0.10 | $0.10 | $0.07 | $0.05 | | Total assets | $3,540,297 | N/A | $3,518,584 | N/A | N/A | $3,433,875 | | Total long-term financial liabilities | $303,984 | N/A | $297,600 | N/A | N/A | $277,696 | | Total attributable shareholders' equity | $2,683,201 | N/A | $2,631,554 | N/A | N/A | $2,602,519 | - Q1 2022 revenue was **$439.9 million**, with net earnings of **$76.5 million** ($0.36 basic EPS)[78](index=78&type=chunk) - Cash flow from operating activities was **$68.8 million**, total assets stood at **$3.54 billion**, and shareholders' equity at **$2.68 billion**[78](index=78&type=chunk) [Income Statement: Q1 2022 vs. Q1 2021](index=20&type=section&id=Income%20Statement%3A%20Q1%202022%20vs.%20Q1%202021) Net earnings improved significantly, driven by higher sales volumes, a gain on the Maverix investment, and reduced income tax expense Key Drivers of Net Earnings Change Q1 2022 vs. Q1 2021 (thousands of USD) | Factor | Impact on Net Earnings | | :----- | :--------------------- | | Net loss, Q1 2021 | ($7,562) | | Increased revenue (metal prices & quantities) | +$71,789 | | Increased cost of sales (production & D&A) | ($94,998) | | Increased gains/income from associates | +$44,835 | | Decreased investment loss | +$41,859 | | Decreased income tax expense | +$26,537 | | Other net changes | ($5,315) | | **Net earnings, Q1 2022** | **$76,831** | - **Net earnings increased by $84.4 million**, from a $7.6 million loss in Q1 2021 to $76.8 million earnings in Q1 2022, resulting in basic EPS of $0.36[18](index=18&type=chunk)[85](index=85&type=chunk) - **Revenue increased by $71.8 million**, mainly due to higher quantities of silver (+40%) and gold (+9%) sold[86](index=86&type=chunk)[87](index=87&type=chunk)[89](index=89&type=chunk) - **Cost of sales increased by $95.0 million**, driven by higher sales volumes, NRV inventory adjustments, and Omicron/inflationary pressures[86](index=86&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk) - A **$44.6 million fair-value adjustment gain** was recognized from changing the accounting treatment of the Maverix investment[22](index=22&type=chunk)[91](index=91&type=chunk) - **Income tax expense decreased by $26.5 million**, mainly due to the appreciation of the Peruvian sol (PEN) on Peruvian tax attributes[22](index=22&type=chunk)[92](index=92&type=chunk) [Statement of Cash Flows: Q1 2022 vs. Q1 2021](index=22&type=section&id=Statement%20of%20Cash%20Flows%3A%20Q1%202022%20vs.%20Q1%202021) Cash flow from operations increased significantly due to reduced working capital usage and higher cash mine operating earnings Cash Flow Summary Q1 2022 vs. Q1 2021 (thousands of USD) | Activity | Q1 2022 | Q1 2021 | Change (YoY) | | :------- | :------ | :------ | :----------- | | Operating Activities | $68,758 | $29,850 | +$38,908 | | Investing Activities | ($51,100) | ($44,500) | ($6,600) | | Financing Activities | ($29,200) | ($18,000) | ($11,200) | - **Cash flow from operations increased by $38.9 million**, driven by less cash used in working capital changes and increased cash mine operating earnings[93](index=93&type=chunk)[94](index=94&type=chunk) - **Investing activities used $51.1 million**, primarily for $61.5 million in mineral properties, plant, and equipment[95](index=95&type=chunk) - **Financing activities used $29.2 million**, mainly for $25.3 million in dividends and $3.4 million in lease repayments[96](index=96&type=chunk) [Adjusted Earnings: Q1 2022 vs Q1 2021](index=22&type=section&id=Adjusted%20Earnings%3A%20Q1%202022%20vs%20Q1%202021) Adjusted earnings decreased in Q1 2022 compared to Q1 2021, primarily due to the exclusion of significant investment-related gains Adjusted Earnings Q1 2022 vs. Q1 2021 (thousands of USD) | Metric | Q1 2022 | Q1 2021 | | :----- | :------ | :------ | | Net earnings (loss) for the period | $76,831 | ($7,562) | | Total adjustments | ($44,854) | $44,995 | | **Adjusted earnings for the period** | **$31,977** | **$37,433** | | Adjusted earnings per share | $0.15 | $0.18 | - **Adjusted earnings for Q1 2022 were $32.0 million** ($0.15 per share), down from $37.4 million ($0.18 per share) in Q1 2021[98](index=98&type=chunk) - Key adjustments include unrealized foreign exchange losses, heap inventory net realizable value charge, and gains and income from associates[141](index=141&type=chunk) [Liquidity Position and Capital Resources](index=23&type=section&id=Liquidity%20Position%20and%20Capital%20Resources) The company maintains a strong liquidity position with sufficient cash, an undrawn credit facility, and manageable debt levels [Liquidity and Capital Resources](index=23&type=section&id=Liquidity%20and%20Capital%20Resources) Pan American Silver maintains a strong liquidity position with $326.3 million in cash and an undrawn $500.0 million credit facility Liquidity and Capital Measures (thousands of USD) | Metric | March 31, 2022 | Dec. 31, 2021 | Q1 2022 Change | | :----- | :------------- | :------------ | :------------- | | Cash and Short-term investments | $326,286 | $335,273 | ($8,987) | | Working Capital | $620,663 | $613,494 | $7,169 | | Credit Facility committed amount | $500,000 | $500,000 | — | | Credit Facility amounts drawn | — | — | — | | Total debt | $47,046 | $45,861 | $1,185 | | Capital | $2,403,961 | $2,342,142 | $61,819 | - **Cash and short-term investments decreased by $9.0 million** in Q1 2022 to $326.3 million, primarily due to capital additions and higher dividend payments[101](index=101&type=chunk) - **Working capital increased by $7.2 million** to $620.7 million at March 31, 2022[103](index=103&type=chunk) - The **$500 million revolving Sustainability-Linked Credit Facility was undrawn** as of March 31, 2022[104](index=104&type=chunk) - Management believes liquid assets are sufficient to satisfy 2022 working capital requirements, fund planned capital expenditures, and discharge liabilities[106](index=106&type=chunk) [Outstanding Share Amounts](index=24&type=section&id=Outstanding%20Share%20Amounts) As of May 11, 2022, Pan American Silver had 210.5 million common shares outstanding, plus options and Contingent Value Rights Outstanding Share Amounts as at May 11, 2022 | Instrument | Amount | | :--------- | :----- | | Common shares | 210,511,219 | | Options | 220,984 | | Total | 210,732,203 | - Approximately **0.2 million stock options** were outstanding, with 0.2 million vested and exercisable[109](index=109&type=chunk)[112](index=112&type=chunk) - Additionally, **313.9 million CVRs** were outstanding, convertible into 15.6 million common shares upon the first commercial shipment from the Escobal mine[109](index=109&type=chunk)[112](index=112&type=chunk) [Closure and Decommissioning Cost Provision](index=26&type=section&id=Closure%20and%20Decommissioning%20Cost%20Provision) The provision for future closure and decommissioning costs increased to $252.8 million due to inflation and updated estimates - The total inflated and undiscounted amount was **$451.7 million** as of March 31, 2022 (up from $413.0 million at Dec 31, 2021)[113](index=113&type=chunk)[114](index=114&type=chunk) - The inflated and discounted provision on the statement of financial position was **$252.8 million** (up from $242.9 million at Dec 31, 2021)[114](index=114&type=chunk) - Accretion of the discount charged as finance expense in Q1 2022 was **$3.7 million** (Q1 2021: $1.9 million)[115](index=115&type=chunk) [Related Party Transactions](index=26&type=section&id=Related%20Party%20Transactions) No significant related party transactions occurred in Q1 2022, with Maverix being a related party until March 31, 2022 - Related parties include subsidiaries, associates, and key management, with Maverix remaining a related party until March 31, 2022[116](index=116&type=chunk) - No other related party transactions occurred in Q1 2022 or Q1 2021[116](index=116&type=chunk) [Alternative Performance Measures (Non-GAAP)](index=26&type=section&id=Alternative%20Performance%20Measures%20(Non-GAAP)) This section defines and provides reconciliations for non-GAAP measures like Cash Costs, AISC, and Adjusted Earnings [Per Ounce Measures (Cash Costs and AISC)](index=26&type=section&id=Per%20Ounce%20Measures) Cash Costs and AISC are non-GAAP measures used to evaluate operational performance, calculated net of by-product credits - Cash Costs and AISC are non-GAAP measures, not standardized under IFRS, used to evaluate operating performance and compare against industry benchmarks[117](index=117&type=chunk)[122](index=122&type=chunk)[123](index=123&type=chunk) - Silver segment costs are calculated net of credits from all metals other than silver, while gold segment costs are net of realized silver revenues[119](index=119&type=chunk)[121](index=121&type=chunk) Consolidated Cash Costs and AISC Reconciliation Q1 2022 vs. Q1 2021 (thousands of USD) | Metric | Silver Segment Q1 2022 | Silver Segment Q1 2021 | Gold Segment Q1 2022 | Gold Segment Q1 2021 | | :----- | :--------------------- | :--------------------- | :------------------- | :------------------- | | Production costs | $97,589 | $80,601 | $174,383 | $112,580 | | On-site direct operating costs | $96,236 | $79,159 | $161,293 | $121,837 | | Cash Costs | $42,920 | $34,563 | $149,439 | $108,100 | | All-in sustaining costs | $56,263 | $47,744 | $209,957 | $135,189 | | Silver ounces sold (koz) | 4,197 | 2,810 | — | — | | Gold ounces sold (koz) | — | — | 140 | 128 | | Cash costs per ounce sold | $10.23 | $12.30 | $1,069 | $846 | | AISC per ounce sold | $13.41 | $16.99 | $1,502 | $1,058 | Reconciliation of Payments for MPP&E and Sustaining Capital (thousands of USD) | Item | Q1 2022 | Q1 2021 | | :--- | :------ | :------ | | Payments for mineral properties, plant and equipment | $61,453 | $47,971 | | Lease Payments | $3,419 | $2,982 | | Repayment of loans | $850 | — | | Investment (non-sustaining) capital | ($9,765) | ($5,743) | | **Sustaining Capital** | **$55,957** | **$45,210** | [Adjusted Earnings](index=33&type=section&id=Adjusted%20Earnings) Adjusted earnings, a non-GAAP measure, decreased to $32.0 million in Q1 2022 from $37.4 million in Q1 2021 - Adjusted earnings and basic adjusted earnings per share are non-GAAP measures designed to reflect normalized earnings by eliminating non-operational items[139](index=139&type=chunk) Adjusted Earnings Reconciliation Q1 2022 vs. Q1 2021 (thousands of USD) | Item | Q1 2022 | Q1 2021 | | :--- | :------ | :------ | | Net earnings (loss) for the period | $76,831 | ($7,562) | | Total adjustments | ($44,854) | $44,995 | | **Adjusted earnings for the period** | **$31,977** | **$37,433** | | Adjusted earnings per share | $0.15 | $0.18 | [Total Debt](index=33&type=section&id=Total%20Debt) Total debt is a non-GAAP measure representing current and non-current debt, lease liabilities, and loans payable - Total debt is a non-GAAP measure calculated as the sum of amounts drawn on the Credit Facility, finance lease liabilities, and loans payable[142](index=142&type=chunk) - As of March 31, 2022, **total debt was $47.0 million**, an increase of $1.2 million from December 31, 2021[100](index=100&type=chunk) [Capital](index=33&type=section&id=Capital) Capital is a non-GAAP measure calculated as total equity plus total debt less cash and short-term investments - Capital is a non-GAAP measure calculated as total equity plus total debt less cash and cash equivalents and short-term investments[143](index=143&type=chunk) - As of March 31, 2022, **Capital was $2.40 billion**, an increase of $61.8 million from December 31, 2021[100](index=100&type=chunk) [Working Capital](index=33&type=section&id=Working%20Capital) Working capital, a non-GAAP measure of short-term liquidity, was $620.7 million as of March 31, 2022 - Working capital is a non-GAAP measure calculated as current assets less current liabilities, used to evaluate the Company's ability to meet current obligations[144](index=144&type=chunk)[145](index=145&type=chunk) - Working capital at March 31, 2022, was **$620.7 million**, an increase of $7.2 million from $613.5 million at December 31, 2021[100](index=100&type=chunk)[103](index=103&type=chunk) [Cash Mine Operating Earnings](index=34&type=section&id=Cash%20Mine%20Operating%20Earnings) Cash mine operating earnings, a non-GAAP measure, increased to $165.7 million in Q1 2022 from $156.9 million in Q1 2021 - Cash mine operating earnings is a non-GAAP measure calculated by excluding depreciation, amortization, and NRV inventory adjustments from mine operating earnings[146](index=146&type=chunk) Cash Mine Operating Earnings Reconciliation Q1 2022 vs. Q1 2021 (thousands of USD) | Item | Q1 2022 | Q1 2021 | | :--- | :------ | :------ | | Mine operating earnings | $66,755 | $89,964 | | Depreciation and amortization | $84,526 | $75,093 | | Net realizable value adjustment for inventories | $14,443 | ($8,143) | | **Cash mine operating earnings** | **$165,724** | **$156,914** | - Cash mine operating earnings in Q1 2022 totaled **$165.7 million**, an increase from $156.9 million in Q1 2021[101](index=101&type=chunk)[147](index=147&type=chunk) [Risks and Uncertainties](index=34&type=section&id=Risks%20and%20Uncertainties) The company faces various risks including financial market volatility, legal proceedings, COVID-19 impacts, and climate change [Financial Risk Exposure](index=34&type=section&id=Financial%20Risk%20Exposure) Pan American Silver is exposed to various financial risks, with management of these risks remaining consistent in Q1 2022 - The Company is exposed to **metal price risk, credit risk, interest rate risk, foreign currency exchange rate risk, and liquidity risk**[150](index=150&type=chunk) - There were no significant changes to these financial risks or the Company's management of exposure to them during Q1 2022[150](index=150&type=chunk) [Price Risk](index=35&type=section&id=Price%20Risk) The Company faces price risk from commodity fluctuations and input costs, using derivatives to mitigate some exposures - Profitability is affected by decreases in metal prices and increases in consumable prices, with the Company using forward sales or option contracts to mitigate base metal price risk[152](index=152&type=chunk) - As of March 31, 2022, the Company had outstanding **zinc collars** (2,700 tonnes) and a **zinc forward contract** (2,700 tonnes), recording **$1.1 million in losses** in Q1 2022[153](index=153&type=chunk) - The Company had outstanding **diesel swap contracts** (2.7 million gallons) and recorded **gains of $2.8 million** in Q1 2022[155](index=155&type=chunk) [Trading Activities and Credit Risk](index=35&type=section&id=Trading%20Activities%20and%20Credit%20Risk) The Company faces credit risk from concentrate buyers, refineries, and suppliers, which management actively monitors - Credit risk arises from long-term supply arrangements for concentrates, refining agreements for doré, spot market sales, and supplier advances[156](index=156&type=chunk)[158](index=158&type=chunk)[159](index=159&type=chunk)[161](index=161&type=chunk) - As of March 31, 2022, receivable balances from concentrate buyers were **$48.2 million**, and precious metal inventory at refineries was approximately **$35.7 million**[157](index=157&type=chunk)[158](index=158&type=chunk)[161](index=161&type=chunk) - Management monitors and assesses credit risk, avoiding unacceptable concentration to any single counterparty[162](index=162&type=chunk) [Foreign currency exchange rate risk](index=36&type=section&id=Foreign%20currency%20exchange%20rate%20risk) The Company is exposed to foreign currency risk as its financial statements are in USD but operations occur in various local currencies - Financial results are subject to changes in the USD value relative to local currencies (e.g., PEN, MXN, ARS, BOB, CAD)[164](index=164&type=chunk) - As of March 31, 2022, Pan American held **$61.8 million in CAD**, $1.1 million in MXN, $7.1 million in PEN, $12.8 million in ARS, $2.7 million in BOB, and $0.4 million in Guatemalan quetzales[165](index=165&type=chunk) - The Company had outstanding foreign currency hedging positions for MXN, PEN, and CAD, recording gains on these derivative contracts in Q1 2022[166](index=166&type=chunk) [Claims and Legal Proceedings](index=36&type=section&id=Claims%20and%20Legal%20Proceedings) Pan American is involved in various legal proceedings whose outcomes are uncertain and could materially impact the Company - The Company is subject to various claims and legal proceedings, which could result in monetary damages or loss of permits/rights[167](index=167&type=chunk) - Legal proceedings against the Company's subsidiary in Guatemala claim damages near the **Escobal mine** and seek to prevent future mining activities[168](index=168&type=chunk)[170](index=170&type=chunk) - The Company is appealing a dismissal related to a legal challenge concerning surface land ownership at the **La Colorada mine** in Mexico[171](index=171&type=chunk) - Ongoing **class action lawsuits** in the U.S. and Canada against Tahoe Resources Inc. (acquired by Pan American) allege misrepresentations[172](index=172&type=chunk) [COVID-19 and Other Pandemics](index=38&type=section&id=COVID-19%20and%20Other%20Pandemics) COVID-19 continues to pose significant risks to operations, with potential for increased costs and supply chain disruptions - COVID-19 has already caused temporary suspensions and reduced throughput at operations, impacting employees, contractors, and suppliers[174](index=174&type=chunk) - Future impacts are highly uncertain, and comprehensive COVID-19 protocols are expected to **increase costs and restrict throughput in 2022**[175](index=175&type=chunk) - The continued spread of COVID-19 could materially adversely affect global economies and the Company's business, stock price, and ability to raise capital[176](index=176&type=chunk) [Climate Change](index=40&type=section&id=Climate%20Change) Climate change presents significant risks, including increased regulatory costs, negative public perception, and physical operational risks - The Company is impacted by evolving policies and regulations related to greenhouse gas emissions, which may result in additional transition costs[177](index=177&type=chunk) - Public perception and investor sentiment regarding environmental impacts could negatively affect the Company's reputation and share price[178](index=178&type=chunk) - Physical risks of climate change, such as **extreme weather and water shortages**, could damage facilities and disrupt operations[179](index=179&type=chunk) [Summary of Significant Accounting Policies, Standards and Judgements](index=41&type=section&id=Summary%20of%20Significant%20Accounting%20Policies%2C%20Standards%20and%20Judgements) Accounting policies remain consistent with 2021, and financial statement preparation involves significant management estimates - Accounting policies applied in Q1 2022 are consistent with those in the 2021 audited consolidated financial statements[180](index=180&type=chunk)[181](index=181&type=chunk) - Preparation of financial statements requires **significant management estimates and assumptions**, which are continuously reviewed[182](index=182&type=chunk) [Disclosure Controls and Procedures and Technical Information](index=41&type=section&id=Disclosure%20Controls%20and%20Procedures%20and%20Technical%20Information) Management confirms the effectiveness of disclosure controls and internal controls, with technical information approved by Qualified Persons [Disclosure Controls and Procedures (DC&P)](index=41&type=section&id=Disclosure%20controls%20and%20procedures%20(%22DC%26P%22)) The CEO and CFO concluded that the Company's Disclosure Controls and Procedures were effective as of December 31, 2021 - The CEO and CFO are responsible for establishing and maintaining adequate DC&P and concluded they were **effective** as of December 31, 2021[185](index=185&type=chunk)[186](index=186&type=chunk) [Internal Control Over Financial Reporting (ICFR)](index=41&type=section&id=Internal%20control%20over%20financial%20reporting%20(%22ICFR%22)) The CEO and CFO assessed Internal Control Over Financial Reporting as effective as of December 31, 2021 - The CEO and CFO are responsible for establishing and maintaining adequate ICFR and concluded it was **effective** as of December 31, 2021, based on the COSO framework[187](index=187&type=chunk) - The effectiveness of the Company's ICFR as of December 31, 2021, was **audited by Deloitte LLP**[188](index=188&type=chunk) [Changes in ICFR](index=43&type=section&id=Changes%20in%20ICFR) There have been no material changes to the Company's Internal Control Over Financial Reporting during Q1 2022 - **No material changes** to the Company's ICFR occurred during the three and twelve months ended March 31, 2022[189](index=189&type=chunk) [Inherent limitations of controls and procedures](index=43&type=section&id=Inherent%20limitations%20of%20controls%20and%20procedures) All internal control systems have inherent limitations and can only provide reasonable, not absolute, assurance - Internal control systems have inherent limitations, providing only **reasonable assurance** and may not prevent or detect all misstatements timely[190](index=190&type=chunk) [Technical Information](index=43&type=section&id=Technical%20Information) Scientific and technical information in this MD&A has been reviewed and approved by Qualified Persons under NI 43-101 - Scientific and technical information has been reviewed and approved by **Martin Wafforn, P.Eng., and Christopher Emerson, FAusIMM**, both Qualified Persons[191](index=191&type=chunk) - More detailed technical information is available in the Company's **Annual Information Form and Form 40-F**[192](index=192&type=chunk) [Cautionary Note](index=43&type=section&id=Cautionary%20Note) This report contains forward-looking statements subject to risks and discloses mineral estimates under Canadian standards [Cautionary Note Regarding Forward-Looking Statements and Information](index=43&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements%20and%20Information) This MD&A contains forward-looking statements subject to significant risks and uncertainties that could cause actual results to differ - The MD&A contains **forward-looking statements** regarding future financial/operational performance, 2022 forecasts, metal prices, and project development[193](index=193&type=chunk) - These statements are based on assumptions and are subject to significant operational, business, economic, political, and social uncertainties[194](index=194&type=chunk)[197](index=197&type=chunk) - Known and unknown risks may cause actual results to differ materially, and investors are cautioned against undue reliance on these statements[198](index=198&type=chunk) [Cautionary Note to U.S. Investors Concerning Estimates of Mineral Reserves and Mineral Resources](index=45&type=section&id=Cautionary%20Note%20to%20U.S.%20Investors%20Concerning%20Estimates%20of%20Mineral%20Reserves%20and%20Mineral%20Resources) Mineral reserve and resource estimates are disclosed according to Canadian NI 43-101 standards, which differ from U.S. SEC requirements - Mineral reserve and resource estimates are disclosed in accordance with **Canadian NI 43-101 standards**, which differ significantly from U.S. SEC requirements[199](index=199&type=chunk) - Information concerning mineralization and resources may **not be comparable** to similar information disclosed by U.S. companies[199](index=199&type=chunk)

Pan American Silver Corp. (NYSE:PAAS) Q4 2021 Earnings Conference Call February 24, 2022 11:00 AM ET Company Participants Siren Fisekci - VP, IR Michael Steinmann - President and CEO Steve Busby - COO Conference Call Participants Cosmos Chiu - CIBC Don DeMarco - National Bank Financial Operator Thank you for standing by. This is the conference operator. Welcome to the Pan American Silver Full Year and Fourth Quarter 2021 Results Conference Call and Webcast. As a reminder, all participants are in listen-only ...

2021 Third Quarter Results October 29, 2021 YAMANAGOLD TSX: YRI | NYSE: AUY | LSE: AUY CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: This presentation contains or incorporates by reference "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking information includes, but is not limited to ...

Financial Data and Key Metrics Changes - Revenue in Q3 reached a record $460.3 million, with a realized price of $24.15 per ounce of silver and $1,782 per ounce of gold [5][6] - Net earnings were $20.2 million or $0.10 per share, impacted by non-cash mark-to-market losses of $25.3 million and income tax expense of $50.4 million [5][6] - Adjusted earnings were $37.8 million or $0.18 per share, with cash flow from operations of $157 million [6][17] Business Line Data and Key Metrics Changes - Silver production was 4.8 million ounces in Q3, with gold production at 142,600 ounces [7][9] - Silver segment cash costs were $11.92 per ounce, with all-in sustaining costs at $16.30 per ounce sold [11][12] - Gold segment cash costs were estimated between $825 to $925 per ounce, with all-in sustaining costs between $1,135 to $1,250 [15] Market Data and Key Metrics Changes - The company revised its 2021 guidance to produce 19 million to 20 million ounces of silver and 560,000 to 588,000 ounces of gold due to lower-than-expected grades and production [13][14] - Total available liquidity was $815 million, including $500 million under a credit facility and $315.4 million in cash and short-term investments [17] Company Strategy and Development Direction - The company is focusing on high-return projects and returning cash to shareholders through dividends, having increased dividends three times over the past 18 months [17] - Plans to expand the scope of the preliminary economic assessment for the La Colorada Skarn project due to exceptional drill results [18][19] - The company is exploring larger-scale mining methods, such as sub-level caving, to enhance production capabilities [56][59] Management's Comments on Operating Environment and Future Outlook - Management noted ongoing challenges from COVID-19, including labor shortages and cost inflation, but expects improvements in operating performance in Q4 [13][21] - The company anticipates a meaningful recovery in production and operational efficiency as COVID-related impacts diminish [21] - Management expressed optimism about the potential for M&A activity in the silver space, similar to trends seen in the gold sector [49][51] Other Important Information - The company announced a quarterly dividend of $0.10 per share and plans to evaluate future dividend levels based on growth project funding requirements [17][18] - The CFO, Rob Doyle, announced plans to retire effective March 31, 2022, with a succession plan in place [22] Q&A Session Summary Question: Impact of ventilation upgrades on costs at La Colorada - Management indicated that costs were impacted by ventilation upgrades and long-haul mining investments, with expectations for costs to ease in the coming quarters [25][28] Question: Guidance for 2022 and inflationary pressures - Management is currently budgeting for 2022 and expects to provide guidance in January, noting that inflationary pressures are primarily from labor and COVID-related costs [35][39] Question: Update on Dolores and inventory recognition - Management explained that inventory build-up at Dolores is due to construction delays, with expectations for recognition of production in 2022 [44][46] Question: M&A activity in the silver space - Management believes there will be consolidation in the industry, with a focus on finding strong targets for acquisition [49][51] Question: Timing for La Colorada Skarn project - Management stated that further drilling is needed to understand the resource better, and timing for the release of the current preliminary assessment is uncertain [109]

Management's Discussion and Analysis FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 Management Discussion and Analysis For the three and nine months ended September 30, 2021 and 2020 (tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) TABLE OF CONTENTS INTRODUCTION This Management's Discussion and Analysis ("MD&A") is intended to help the reader understand the significant factors that influenc ...

Financial Data and Key Metrics Changes - The company recorded net earnings of $27 million or $0.03 per share, and on an adjusted basis, $69.7 million or $0.07 per share, with a significant increase in cash flows quarter-over-quarter [17][23] - Free cash flow increased by 59% to $81.6 million compared to Q2 [23] - The company expects Q4 production to exceed 270,000 GEO, positioning it to achieve its annual guidance of 1 million GEO production for the year [18] Business Line Data and Key Metrics Changes - Canadian Malartic continued strong performance with higher-grade and recoveries compared to last year [20] - Jacobina achieved significant progress on Phase 2 expansion, with a new daily throughput of over 8,800 tons per day [11] - Cerro Moro's GEO production increased by 50% from the second quarter, with expectations for continued strong performance in Q4 [21] - El Peñon saw a 19% increase in GEO production quarter-over-quarter [22] Market Data and Key Metrics Changes - The company reported that September was the lowest cost month of the quarter, with expectations for lower costs to continue into Q4 [19] - Inflationary pressures from consumables were noted, with an impact of approximately $20 per ounce above planning assumptions [18][30] Company Strategy and Development Direction - The company is focused on advancing its projects, including the Odyssey project and the Jacobina expansion, with a long-term vision for growth [10][12] - The company aims to maintain high inventory levels to mitigate supply chain disruptions and inflation impacts [66] - The MARA project is highlighted as a low capital intensity copper project with significant potential value [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving production guidance and noted that inflationary pressures are being managed effectively [18][30] - The company is optimistic about the future, with plans for further exploration and development updates expected in early 2022 [50][51] Other Important Information - The company has implemented a climate strategy and human rights risk assessments at all sites [6][8] - The company repaid $720 million of existing debt and completed a $500 million senior notes offering, reducing gross debt by about $220 million [23] Q&A Session Summary Question: Confirmation of ASIC reduction in Q4 - Management confirmed that ASIC is expected to be 5% to 10% lower quarter-over-quarter in Q4 [27] Question: Inflation impact on 2022 - Management indicated that inflation impacts will carry over into 2022, but efforts are being made to mitigate these effects [28][29] Question: Measures to mitigate inflation - The company has increased inventory and is reviewing contracts to manage costs effectively [30][31][32] Question: Value of Cerro Moro - Management discussed the potential value of the MARA project and the steps being taken to enhance its value [36][38][39] Question: London listing performance - Management acknowledged that establishing a presence in London is a long-term commitment and they are actively engaging with potential investors [42][43] Question: Inflationary pressures in 2022 - Management confirmed that inflationary pressures are expected to come from fuel and consumables, but they are well-positioned to manage these costs [46][48] Question: Future exploration updates - The next major updates are expected in February, including exploration results and project advancements [50][51] Question: Inventory management going into 2022 - The company plans to maintain high inventory levels for the foreseeable future [66] Question: Labor market pressures - Management reported no significant labor pressures at current operations, with successful recruitment efforts [70][71] Question: COVID-19 impact on employee availability - The company noted improved employee availability and vaccination rates, supporting strong operational performance [72] Question: Jacobina Phase 3 permitting - Management is optimistic about obtaining permits for Phase 3 and has requested permits for 10,000 tons per day [77] Question: Canadian Malartic investment strategy - Management confirmed that the balance sheet is strong, allowing for continued investment and shareholder returns [78][79]