Monty Rakusen Financial markets have turned volatile around the world. That often has bullish implications for precious metals, but silver and gold have merely been treading water. Of course, that's a much better outcome following macro events over the past week compared to cryptocurrencies. The focus shifts back to firm-specific happenings this week when Pan American Silver (NYSE:PAAS) reports Q2 results. Volatility is high heading into the profit update, and the stock's valuation appears fair in my view w ...

Core Viewpoint - Pan American Silver is experiencing positive momentum in its stock performance, with significant expected earnings growth and revenue increase in the upcoming earnings report scheduled for August 7, 2024 [2][3]. Company Performance - The company's shares closed at $21.71, reflecting a +1.12% increase from the previous day, outperforming the S&P 500's daily gain of 0.08% [1]. - Over the last month, Pan American Silver's shares have risen by 8%, contrasting with a loss of 1.43% in the Basic Materials sector and a loss of 0.21% in the S&P 500 [1]. Earnings Forecast - Analysts forecast an EPS of $0.13 for the upcoming quarter, representing a 225% increase from the same quarter last year [2]. - For the full year, the Zacks Consensus Estimates predict earnings of $0.66 per share, marking a +450% change from the previous year [3]. - Revenue is expected to reach $679.96 million for the upcoming quarter, indicating a 6.26% increase compared to the year-ago quarter, and $2.69 billion for the full year, reflecting a +16.07% change [2][3]. Analyst Estimates - Recent adjustments to analyst estimates for Pan American Silver suggest a positive outlook for the company's business operations and profit generation capabilities [4]. - The Zacks Consensus EPS estimate has increased by 11.51% in the past month, indicating growing analyst confidence [6]. Valuation Metrics - The company currently has a Forward P/E ratio of 32.58, which is higher than the industry average of 20.79 [7]. - The Mining - Silver industry, part of the Basic Materials sector, holds a Zacks Industry Rank of 3, placing it in the top 2% of over 250 industries [7][8].

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. It' ...

Unaudited Condensed Interim Consolidated Financial Statements and Notes FOR THE THREE MONTHS ENDING MARCH 31, 2024 Condensed Interim Consolidated Statements of Financial Position (unaudited, in millions of U.S. dollars) | | | March 31, | December 31, | | --- | --- | --- | --- | | | | 2024 | 2023 | | Assets | | | | | Current assets | | | | | Cash and cash equivalents (Note 20) | $ | 301.1 $ | 399.6 | | Investments (Note 5) | | 30.3 | 41.3 | | Trade and other receivables | | 149.5 | 138.0 | | Income tax recei ...

Summary of Pan American Silver Corp. Conference Call Company Overview - **Company**: Pan American Silver Corp. (NYSE: PAAS) - **Event**: BMO 33rd Global Metals, Mining & Critical Minerals Conference - **Date**: February 27, 2024 - **Participants**: Michael Steinmann (President and CEO), Jackie Przybylowski (BMO Capital Markets) Key Points Portfolio Rationalization - The company is focusing on further portfolio rationalization, identifying non-core assets for divestment [2][3] - Successful integration of assets from the Yamana transaction, including four mines, has been highlighted [2] - The company has sold three assets and smaller investments, optimizing the portfolio quickly [2] - The divestment of the MARA joint venture was strategic, yielding nearly $400 million in cash and royalties [3] Production and Financial Performance - Silver production increased by approximately 11% following the MARA transaction, with a 60% increase in gold production [3] - The company aims to maintain a diversified portfolio, with no single country contributing more than 25% of revenue [5] Market Environment and Acquisitions - The current market for acquisitions is competitive, with a focus on the quality of assets rather than timing [12][13] - Long-term asset quality is prioritized over short-term metal price fluctuations [13] Silver Market Outlook - The CEO expressed a positive long-term outlook for silver, emphasizing its critical role in electronics and clean energy [15] - Current investor outflows from silver ETFs are noted, but strong industrial demand is expected to support future prices [15] Share Buyback Strategy - The company has announced a $240 million NCIB (Normal Course Issuer Bid) to support share price, alongside a commitment to dividends [16][17] - The CEO emphasized the importance of maintaining a strong balance sheet to capitalize on opportunities [20] La Colorada Project - Significant investment in the La Colorada mine, including a $48 million ventilation shaft, is expected to restore production levels [22] - The mine has historically produced around 7 million ounces of silver annually, with production impacted in the previous year [22] - The Skarn project at La Colorada is described as a world-class discovery, with potential for a multi-decade operation [23][24] Escobal Mine Update - The Escobal mine is currently in care and maintenance, with a court-mandated ILO process ongoing for consultation with indigenous groups [27][28] - The transition to a new government in Guatemala has slightly slowed the process, but there is a commitment to continue consultations [29][31] Regulatory Environment in Mexico - The CEO does not foresee risks to existing operations in Mexico due to the current administration's stance on open-pit mining [36] - The Dolores mine will transition to a leaching phase, with no further open-pit mining planned [36] Future of Mining - The CEO believes that underground mining will become increasingly preferred due to geological and environmental considerations [36] Additional Insights - The company is exploring potential partnerships for the Skarn project to leverage its value without taking on full operational responsibility [24][25] - The CEO's extensive experience in South America is viewed as a competitive advantage in negotiations and community relations [7][9]

Pan American Silver Corp. (NYSE:PAAS) Q4 2023 Earnings Conference Call February 22, 2024 11:00 AM ET Company Participants Siren Fisekci - Vice President of Investor Relations Michael Steinmann – President and CEO Steve Busby - Chief Operating Officer Ignacio Couturier - CFO Conference Call Participants Cosmos Chiu - CIBC John Tumazos - Very Independent Research Craig Hutchison - TD Don DeMarco - National Bank Financial Operator Good morning, ladies and gentlemen, and welcome to the Pan American Silver’s Fo ...

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)