Welcome!

@CloudExpo Authors: Pat Romanski, Liz McMillan, Jyoti Bansal, Peter Silva, Elizabeth White

News Feed Item

Pan American Silver increases quarterly silver production

(All amounts in US dollars unless otherwise stated and all production figures are approximate)

VANCOUVER, Nov. 7, 2012 /PRNewswire/ - Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) (the "Company", or "Pan American"), produced 6.3 million ounces of silver and 28,162 ounces of gold during the third quarter of 2012, an increase of 13% and 36%, respectively, as compared to the same quarter of 2011.  Lower realized precious metal prices and rising costs, however, saw adjusted earnings dip to $37.6 million, or $0.25 per share.

This earnings release should be read in conjunction with the Company's MD&A, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on SEDAR at www.sedar.com and are also available on the Company's website at www.panamericansilver.com.

  Third Quarter 2012 Financial and Operating Highlights (unaudited) (1)
  • Produced 6.3 million ounces of silver
  • Produced 28,162 ounces of gold
  • Consolidated cash costs(2) of $13.87 per ounce of silver, net of by-product credits
  • Mine operating earnings(3) of $68.2 million
  • Net earnings of $22.6 million or $0.15 per share
  • Adjusted earnings(4) of $37.6 million or $0.25 per share
  • Operating cash flow (before working capital changes) of $66.4 million or $0.44 per share
  • Record revenue of $251.8 million
  • Returned a total of $15.1 million to shareholders; $7.6 million was paid in cash dividends and $7.5 million used to complete the Company's first share repurchase program.
  • Received approval for a second share repurchase program for up to approximately 7.6 million shares 
Liquidity (at September 30, 2012)
  • Increased cash and short-term investments to $548 million
  • Increased working capital(5) to $784.6 million

(1) Financial information in this news release is based on International Financial Reporting Standards ("IFRS"); results are unaudited.
(2) Cash costs per payable ounce of silver is a non-GAAP measure. The Company believes that in addition to production costs, depreciation and amortization, and royalties, cash cost per ounce is a useful and complementary benchmark that investors use to evaluate the Company's performance and ability to generate cash flow and is well understood and widely reported in the silver mining industry.  However, cash costs per ounce does not have a standardized meaning prescribed by IFRS as an indicator of performance.  Investors are cautioned that cash costs per ounce should not be construed as an alternative to production costs, depreciation and amortization, and royalties determined in accordance with IFRS as an indicator of performance. The Company's method of calculating cash costs per ounce may differ from the methods used by other entities and, accordingly, the Company's cash costs per ounce may not be comparable to similarly titled measures used by other entities.  See "Financial and Operating Highlights" below for a reconciliation of this measure to the Company's production costs, depreciation and amortization, and royalties.
(3) Mine operating earnings is a non-GAAP measure used by the Company to assess the performance of its silver mining operations.  Mine operating earnings is calculated as revenue, less production costs, depreciation and amortization and royalties.  The Company and certain investors use this information to evaluate the Company's performance.
(4) Adjusted earnings is a non-GAAP measure calculated as net earnings for the period adjusting for the gain or loss recorded on fair market value adjustments on the Company's outstanding derivative instruments, unrealized foreign exchange gains or losses, unrealized gain or loss on commodity contracts, the transaction costs arising from the Minefinders transaction, and gains on the disposition of mineral interests.  The Company considers this measure to better reflect normalized earnings as it does not include items which may be volatile from period to period.
(5) Working capital is a non-GAAP measure calculated as current assets less current liabilities. The Company and certain investors use this information to evaluate whether the Company is able to meet its current obligations using its current assets.

Geoff Burns, President & CEO, commented on the Company's third quarter results; "We had yet another very solid production quarter, increasing both our silver and gold production.  We accomplished this in spite of the difficulties that we and the mining industry are currently experiencing operating in Argentina.  As expected, our adjusted earnings declined on lower realized silver and gold prices, but we produced good operating cash flow, invested as planned in our operating assets and exploration programs, repurchased shares, paid dividends and by the end of the quarter had banked almost $30 million.  Now, well into the last  quarter of the year, we remain on track to meet our 2012 forecast for both silver production and cash costs."  Burns continued; "Our focus will remain on generating sustainable profits from our operations and returning cash to our shareholders.  We will also use our financial strength to look both internally and externally for opportunities to grow our silver production, but will exercise discipline given the current environment of increasing political risk and capital cost escalation."

Financial Results

Revenue generated during the third quarter of 2012 rose to a record $251.8 million, an increase of $31.3 million compared to the same quarter of last year.  The increase was due to higher quantities of metals sold, which was partially offset by the sharp decline in average realized metals prices. The average realized silver and gold prices during the quarter were $29.27 and $1,639 per ounce, which was 24% and 2% lower than a year ago, respectively.  The average realized zinc, lead and copper prices during the quarter were $1,871, $1,924 and $7,181 per tonne, respectively, which were 16%, 21% and 20% lower year-on-year.

The Company generated quarterly adjusted earnings of $37.6 million, or $0.25 per share, as compared to adjusted earnings of $51.5 million or $0.48 per share in the 3rd quarter of 2011.  Increased operating costs, lower average realized metal prices and increased depreciation charges negatively impacted adjusted earnings in the current period.  Net earnings were $22.6 million, or $0.15 per share.  The current quarter's adjusted earnings were calculated by excluding a $14.0 million non-cash loss on the revaluation of derivative instruments, a $0.5 million unrealized loss on commodity and foreign currency contracts, an unrealized foreign exchange gain of $2.9 million and a $3.4 million decrease to the previously recognized gain from the sale of the Quiruvilca mine.

Mine operating earnings for the third quarter of 2012 were $68.2 million, or 36% lower year-on-year.  The decline was due to the combined effect of lower metal prices, a rise in operating costs at all the Company's mines and higher depreciation charges due to the inclusion of Dolores' mine production; these factors were partially offset by increased revenue on more quantities of metal sold compared to a year ago.

Operating cash flow before non-cash working capital changes was $66.4 million or $0.44 per share, a 34% decline compared to the third quarter of 2011, on lower mine operating earnings and income tax payments of $23.7 million during the third quarter of this year.

Accrued income taxes for the quarter declined 53% from the third quarter of 2011 to $18.8 million on lower operating earnings.  The effective tax rate for the quarter was 45%, slightly higher than the 43% tax rate from a year ago.  The main factors causing variations in the Company's effective tax rate are the non-taxable portion of unrealized non-cash gains/losses on the Company's derivatives, foreign income tax rate differentials, foreign exchange gains/losses and valuation allowances against certain deferred tax assets.  Pan American expects that these and other factors will continue to cause volatility in effective tax rates in the future.  The Company expects the effective tax rate for 2012, excluding the non-cash market adjustments for the volatility in warrants and convertible debt, to be 30% to 35%.

During the quarter, the Company's cash and short term investments rose by $28.2 million from the previous quarter to $548 million and its working capital rose by $15.8 million to $784.6 million.  In the third quarter of 2012, Pan American distributed to its shareholders $7.6 million in cash dividends and invested $7.5 million to complete the share repurchase program that was launched in August 2011.

Year-to-date, Pan American has paid $133.2 million in income taxes (predominantly related to previous years' income), invested $94.6 million in capital at its operations and development projects, increased precious metals inventory by $18.4 million, spent $31.0 million repurchasing its common shares, paid $17.3 million in dividends and still increased its cash and short term investments by $56.8 million.

Production and Operations

In this year's third quarter, Pan American produced a total of 6.3 million ounces of silver, 13% more year-on-year, due to the addition of 0.8 million ounces from the Dolores mine.  Dolores' silver production was slightly below management's expectations due to a brief stoppage to repair a broken crusher.  The Company's two other Mexican mines, Alamo Dorado and La Colorada produced 1.3 million ounces and 1.1 million ounces of silver, respectively.  At Alamo Dorado the phase II pit expansion, which will extend the life of the mine by approximately one year, is progressing as planned. Mill throughput at the operation was lower year-on-year due to processing harder ore; this was partially offset by higher grades and recoveries.  La Colorada continues to perform well and silver production was practically flat year-on-year.

In Peru, the Morococha mine produced 0.5 million ounces of silver and the Huaron mine 0.7 million ounces of silver, respectively.  Morococha increased its silver production by 42% on improved recoveries, throughput and grades.  Mine development is advancing as planned and management is confident that the operation's productivity will continue to improve.  At 0.7 million ounces, Huaron's silver production was 10% higher than a year ago on better recoveries and higher throughput rates, in spite of lower grade ores being processed.

At the San Vicente mine in Bolivia, better silver grades, increased throughput, and recoveries boosted silver production to 1.0 million ounces or 29% more than a year ago.

At the Manantial Espejo mine, silver production declined 23% year-on-year to 0.9 million ounces as a consequence of lower grades, which could only be partially overcome by increased throughput.  The negative effect of import restrictions on mining equipment availability caused the open pit operation to fall 1.8 million tonnes or 18% behind our plan for waste movement over the last 12 months.  For this reason, a conscious decision was made to shift the focus in the open pits from ore mining to catching up on the shortfall in waste mining. This decision significantly reduced ore grades during the third quarter as we processed ore from our medium grade stockpiles; however, ore grades should substantially improve with the expected return to normal operating conditions in early 2013.

Quarterly gold production at Manantial Espejo declined 38% compared to a year ago for the reasons described above; however, the Company's consolidated gold production rose 36% to 28,162 ounces on the addition of 13,509 ounces from Dolores and slight increases at Morococha and Alamo Dorado.  Zinc and lead production were lower than in the third quarter of last year at 8,502 and 2,671 tonnes, respectively, while copper production was practically unchanged year-on-year at 1,009 tonnes.

Consolidated cash costs for the third quarter of 2012 rose 45% from a year ago to $13.87 per ounce of silver, net of by-product credits.  Consolidated cash costs rose primarily due to decreased by-product credits from lower metal prices and lower gold production at Manantial Espejo, increased COMIBOL participation in operating cash flow at San Vicente, increased development costs at the Peruvian operations and the effects of industry-wide cost escalations, particularly in Argentina.  These factors were partly offset by the addition of Dolores' lower-cost production.

Project Development

As announced on July 2nd 2012, given the fiscal implications of the proposed new legislation to regulate all oil and gas and mining activities in the province of Chubut, Argentina, Pan American has curtailed its project development activities at the Navidad silver project until changes, if any, to the law relating to mining activities in the province are enacted and the true implications of that law can be properly assessed.  During the third quarter, the Company spent $3.9 million continuing community relations efforts and advancing limited technical work aimed at completing an environmental impact assessment by year-end.

In view of the delay at Navidad, the Company has successfully redeployed its project development team to focus on the Leach Pad 3 construction at the Dolores mine, as well as the evaluation of potential expansion opportunities at the La Colorada and Dolores mines in Mexico.

In Peru, phase I of the Morococha ancillary facility relocation project was finalized during the quarter with a total expenditure of $0.5 million and the Company is now in the process of relocating mine support personnel to these new facilities. 

At the Waterloo silver project in California, the Company continues to carry out technical work to complete a National Instrument 43-101-compliant Mineral Resource estimate and an environmental base line study.  Management expects that both documents will be ready by late 2013.  Year-to-date, the Company has spent $0.7 million at the project, predominantly on resource confirmation drilling.  Moving forward, Pan American intends to accelerate its project definition and development activities at Waterloo and has allocated a further $1.1 million for drilling, metallurgical testing and environmental assessment for the rest of the year.

Commenting on the results, Steve Busby, Chief Operating Officer, said; "I am particularly pleased with the turnaround we are seeing at our Peruvian operations and with the consistent performances delivered by our Mexican mines.  In addition, our San Vicente mine continues to impress with steadily increasing silver production.  However, the stringent importation restrictions enacted in Argentina severely restricted our ability to mine productively at Manantial Espejo.  Because of that, we made a decision to process lower grade stockpile ores while focusing on waste mining.  This should allow for more efficient high-grade ore mining to begin again in early 2013.  Despite the shortfall in Argentina, I remain confident that we will achieve our full year silver production guidance of 24.25 to 25.5 million ounces and our annual cost guidance of $11.50 to $12.50 per ounce, net of by-product credits."

***

About Pan American Silver

Pan American Silver's mission is to be the world's largest and lowest cost primary silver mining company by increasing its low cost silver production and silver reserves and resources.  The Company has seven operating mines in Mexico, Peru, Argentina and Bolivia, including the recently acquired Dolores gold/silver mine in Chihuahua, Mexico. Pan American also owns the Navidad silver development project in Chubut, Argentina, the Calcatreu gold project in Rio Negro, also in Argentina, the La Virginia development project in Sonora, Mexico and the Waterloo silver project in California, USA.

Technical information contained in this news release with respect to Pan American has been reviewed by Michael Steinmann, P.Geo., Executive VP Geology & Exploration, and Martin Wafforn, P.Eng., VP Technical Services, who are the Company's Qualified Persons for the purposes of NI 43-101.

Pan American will host a conference call to discuss the unaudited quarterly results on Thursday, November 8, 2012 at 10:00 am ET (07:00 am PT).  To access the conference, North American participants dial 1-647-427-7450, followed by conference ID 44039370.  A live audio webcast can be accessed at http://www.newswire.ca/en/webcast/detail/1051411/1142649.  Listeners may also gain access by logging on at http://www.panamericansilver.com/pan-american-silver-third-quarter-results-conference-call/ The call will be available for replay for one week after the call by dialing 1-416-849-0833 and entering replay password # 44039370.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN OF THE STATEMENTS AND INFORMATION IN THIS NEWS RELEASE CONSTITUTE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE UNITED STATES PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND "FORWARD-LOOKING INFORMATION" WITHIN THE MEANING OF APPLICABLE CANADIAN PROVINCIAL SECURITIES LAWS.  ALL STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL FACT, ARE FORWARD-LOOKING STATEMENTS.  WHEN USED IN THIS NEWS RELEASE THE WORDS, "BELIEVES", "EXPECTS", "INTENDS", "PLANS", "FORECAST", "OBJECTIVE", "OUTLOOK", "POSITIONING", "POTENTIAL", "ANTICIPATED", "BUDGET", AND OTHER SIMILAR WORDS AND EXPRESSIONS, IDENTIFY FORWARD-LOOKING STATEMENTS OR INFORMATION.  THESE FORWARD-LOOKING STATEMENTS OR INFORMATION RELATE TO, AMONG OTHER THINGS: FUTURE PRODUCTION OF SILVER, GOLD AND OTHER METALS AND THE TIMING OF SUCH PRODUCTION; FUTURE CASH COSTS PER OUNCE OF SILVER; THE PRICE OF SILVER AND OTHER METALS; THE EFFECTS OF LAWS, REGULATIONS AND GOVERNMENT POLICIES AFFECTING PAN AMERICAN'S OPERATIONS OR POTENTIAL FUTURE OPERATIONS INCLUDING, BUT NOT LIMITED TO IMPORT RESTRICTIONS IN ARGENTINA AND THE LAWS IN THE PROVINCE OF CHUBUT, ARGENTINA, WHICH, CURRENTLY HAVE SIGNIFICANT RESTRICTIONS ON MINING; THE DEVELOPMENT OF THE NAVIDAD PROJECTAND OTHER  DEVELOPMENT PROJECTS OF THE COMPANIES; THE TIMING OF PRODUCTION AND THE CASH AND TOTAL COSTS OF PRODUCTION AT EACH OF THE COMPANY'S PROPERTIES; THE SUFFICIENCY OF THE COMPANY'S CURRENT WORKING CAPITAL, ANTICIPATED OPERATING CASH FLOW OR ITS ABILITY TO RAISE NECESSARY FUNDS; TIMING OF RELEASE OF TECHNICAL OR OTHER REPORTS, INCLUDING THE FINALIZATION OF THE ENVIRONMENTAL IMPACT ASSESSMENTS AND FEASIBILITY STUDY RELATING TO THE NAVIDAD PROJECT; THE ABILITY OF THE COMPANY TO ACHIEVE  ANY PLANNED EXPANSIONS AND DEVELOPMENT AND TIMING FOR THE SAME; THE ESTIMATES OF EXPECTED OR ANTICIPATED ECONOMIC RETURNS FROM THE COMPANY'S MINING PROJECTS; FORECAST CAPITAL AND NON-OPERATING SPENDING; FUTURE SALES OF THE METALS, CONCENTRATES OR OTHER PRODUCTS PRODUCED BY THE COMPANY; AND THE COMPANY'S PLANS AND EXPECTATIONS FOR ITS PROPERTIES AND OPERATIONS.

THESE STATEMENTS REFLECT THE COMPANY'S CURRENT VIEWS WITH RESPECT TO FUTURE EVENTS AND ARE NECESSARILY BASED UPON A NUMBER OF ASSUMPTIONS AND ESTIMATES THAT, WHILE CONSIDERED REASONABLE BY THE COMPANY, ARE INHERENTLY SUBJECT TO SIGNIFICANT BUSINESS, ECONOMIC, COMPETITIVE, POLITICAL AND SOCIAL UNCERTAINTIES AND CONTINGENCIES.  MANY FACTORS, BOTH KNOWN AND UNKNOWN, COULD CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE OR ACHIEVEMENTS THAT ARE OR MAY BE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE AND THE COMPANY HAS MADE ASSUMPTIONS AND ESTIMATES BASED ON OR RELATED TO MANY OF THESE FACTORS.  SUCH FACTORS INCLUDE, WITHOUT LIMITATION: FLUCTUATIONS IN SPOT AND FORWARD MARKETS FOR SILVER, GOLD, BASE METALS AND CERTAIN OTHER COMMODITIES (SUCH AS NATURAL GAS, FUEL OIL AND ELECTRICITY); FLUCTUATIONS IN CURRENCY MARKETS (SUCH AS THE CANADIAN DOLLAR, PERUVIAN SOL, MEXICAN PESO, ARGENTINE PESO AND BOLIVIAN BOLIVIANO VERSUS THE U.S. DOLLAR); RISKS RELATED TO THE TECHNOLOGICAL AND OPERATIONAL NATURE OF THE COMPANY'S BUSINESS; CHANGES IN NATIONAL AND LOCAL GOVERNMENT, LEGISLATION, TAXATION, CONTROLS OR REGULATIONS INCLUDING AMONG OTHERS, CHANGES TO IMPORT AND EXPORT REGULATIONS AND LAWS RELATING TO THE REPATRIATION OF CAPITAL AND FOREIGN CURRENCY CONTROLS; POLITICAL OR ECONOMIC DEVELOPMENTS IN CANADA, THE UNITED STATES, MEXICO, PERU, ARGENTINA, BOLIVIA OR OTHER COUNTRIES WHERE THE COMPANY MAY CARRY ON BUSINESS IN THE FUTURE; RISKS AND HAZARDS ASSOCIATED WITH THE BUSINESS OF MINERAL EXPLORATION, DEVELOPMENT AND MINING (INCLUDING ENVIRONMENTAL HAZARDS, INDUSTRIAL ACCIDENTS, UNUSUAL OR UNEXPECTED GEOLOGICAL OR STRUCTURAL FORMATIONS, PRESSURES, CAVE-INS AND FLOODING); RISKS RELATING TO THE CREDIT WORTHINESS OR FINANCIAL CONDITION OF SUPPLIERS, REFINERS AND OTHER PARTIES WITH WHOM THE COMPANY DOES BUSINESS; INADEQUATE INSURANCE, OR INABILITY TO OBTAIN INSURANCE, TO COVER THESE RISKS AND HAZARDS; EMPLOYEE RELATIONS; RELATIONSHIPS WITH AND CLAIMS BY LOCAL COMMUNITIES AND INDIGENOUS POPULATIONS; AVAILABILITY AND INCREASING COSTS ASSOCIATED WITH MINING INPUTS AND LABOUR; THE SPECULATIVE NATURE OF MINERAL EXPLORATION AND DEVELOPMENT, INCLUDING THE RISKS OF OBTAINING NECESSARY LICENSES AND PERMITS AND THE PRESENCE OF LAWS AND REGULATIONS THAT MAY IMPOSE RESTRICTIONS ON MINING, INCLUDING THOSE CURRENTLY IN THE PROVINCE OF CHUBUT, ARGENTINA; DIMINISHING QUANTITIES OR GRADES OF MINERAL RESERVES AS PROPERTIES ARE MINED; GLOBAL FINANCIAL CONDITIONS; THE COMPANY'S ABILITY TO COMPLETE AND SUCCESSFULLY INTEGRATE ACQUISITIONS AND TO MITIGATE OTHER BUSINESS COMBINATION RISKS; CHALLENGES TO, OR DIFFICULTY IN MAINTAINING, THE COMPANY'S TITLE TO PROPERTIES AND CONTINUED OWNERSHIP THEREOF; THE ACTUAL RESULTS OF CURRENT EXPLORATION ACTIVITIES, CONCLUSIONS OF ECONOMIC EVALUATIONS, AND CHANGES IN PROJECT PARAMETERS TO DEAL WITH UNANTICIPATED ECONOMIC OR OTHER FACTORS; INCREASED COMPETITION IN THE MINING INDUSTRY FOR PROPERTIES, EQUIPMENT, QUALIFIED PERSONNEL, AND THEIR COSTS; AND THOSE FACTORS IDENTIFIED UNDER THE CAPTION "RISKS RELATED TO PAN AMERICAN'S BUSINESS" IN THE COMPANY'S MOST RECENT FORM 40-F AND ANNUAL INFORMATION FORM FILED WITH THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION AND CANADIAN PROVINCIAL SECURITIES REGULATORY AUTHORITIES.  INVESTORS ARE CAUTIONED AGAINST ATTRIBUTING UNDUE CERTAINTY OR RELIANCE ON FORWARD-LOOKING STATEMENTS.  ALTHOUGH THE COMPANY HAS ATTEMPTED TO IDENTIFY IMPORTANT FACTORS THAT COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY, THERE MAY BE OTHER FACTORS THAT CAUSE RESULTS NOT TO BE AS ANTICIPATED, ESTIMATED, DESCRIBED OR INTENDED.  THE COMPANY DOES NOT INTEND, AND DOES NOT ASSUME ANY OBLIGATION, TO UPDATE THESE FORWARD-LOOKING STATEMENTS OR INFORMATION TO REFLECT CHANGES IN ASSUMPTIONS OR CHANGES IN CIRCUMSTANCES OR ANY OTHER EVENTS AFFECTING SUCH STATEMENTS OR INFORMATION, OTHER THAN AS REQUIRED BY APPLICABLE LAW.

Pan American Silver Corp.
Financial & Operating Highlights

  Three months ended
September 30,
Nine months ended
September 30,
    2012   2011   2012   2011
Consolidated Financial Highlights (in thousands of U.S. Dollars)
(Unaudited)
               
                 
Net earnings for the period $ 22,638 $ 52,522 $ 116,924 $ 258,679
Earnings per share attributable to common shareholders $ 0.15 $ 0.49 $ 0.85 $ 2.40
Adjusted earnings for the period (1) $ 37,604 $ 51,546 $ 122,082 $ 195,472
Adjusted earnings per share $ 0.25 $ 0.48 $ 0.89 $ 1.83
Mine operating earnings $ 68,160 $ 106,208 $ 226,352 $ 320,855
Cash flow from operations $ 79,507 $ 90,896 $ 111,702 $ 254,488
Operating cash flow before working capital changes $ 66,441 $ 100,335 $ 129,453 $ 302,405
Capital spending $ (41,821) $ (24,331) $ (94,646) $ (80,145)
Cash and short-term investments $ 547,958 $ 485,110 $ 547,958 $ 485,110
Working capital (2) $ 784,588 $ 625,726 $ 784,588 $ 625,726
                 
Consolidated Ore Milled & Metals Produced                
                 
Tonnes milled   2,529,520   1,145,394   6,197,260   3,478,275
Silver metal - ounces   6,278,728   5,554,267   18,181,133   16,519,044
Gold metal - ounces   28,162   20,647   79,902   61,187
Zinc metal - tonnes   8,502   9,077   27,963   25,503
Lead metal - tonnes   2,671   2,920   9,461   9,301
Copper metal - tonnes   1,009   1,072   3,026   3,372
                 
Consolidated Cost per Ounce of Silver (net of by-product credits)                
                 
Total cash cost per ounce $ 13.87 $ 9.58 $ 12.14 $ 8.88
Total production cost per ounce $ 19.73 $ 13.38 $ 17.17 $ 12.48
                 
Payable ounces of silver (used in cost per ounce calculations)   5,942,625   5,268,787   17,187,839   15,732,263

(1) Adjusted earnings is a non-GAAP measure calculated as net earnings for the period adjusting for the gain or loss recorded on fair market value adjustments on the Company's outstanding derivative instruments, unrealized foreign exchange gains or losses, unrealized gain or loss on commodity contracts, the transaction costs arising from the Minefinders transaction, and gains on the disposition of mineral interests.  The Company considers this measure to better reflect normalized earnings as it does not include items which may be volatile from period to period.
(2) Working capital is a non-GAAP measure calculated as current assets less current liabilities. The Company and certain investors use this information to evaluate whether the Company is able to meet its current obligations using its current assets.

 

 

SOURCE Pan American Silver Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@CloudExpo Stories
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT depl...
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at Dell EMC, introduced a methodology for capturing, enriching and sharing data (and analytics) across the organization...
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...
WebRTC is about the data channel as much as about video and audio conferencing. However, basically all commercial WebRTC applications have been built with a focus on audio and video. The handling of “data” has been limited to text chat and file download – all other data sharing seems to end with screensharing. What is holding back a more intensive use of peer-to-peer data? In her session at @ThingsExpo, Dr Silvia Pfeiffer, WebRTC Applications Team Lead at National ICT Australia, looked at differ...
"Splunk basically takes machine data and we make it usable, valuable and accessible for everyone. The way that plays in DevOps is - we need to make data-driven decisions to delivering applications," explained Andi Mann, Chief Technology Advocate at Splunk and @DevOpsSummit Conference Chair, in this SYS-CON.tv interview at @DevOpsSummit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud market growth today is largely in public clouds. While there is a lot of spend in IT departments in virtualization, these aren’t yet translating into a true “cloud” experience within the enterprise. What is stopping the growth of the “private cloud” market? In his general session at 18th Cloud Expo, Nara Rajagopalan, CEO of Accelerite, explored the challenges in deploying, managing, and getting adoption for a private cloud within an enterprise. What are the key differences between wh...
"Logz.io is a log analytics platform. We offer the ELK stack, which is the most common log analytics platform in the world. We offer it as a cloud service," explained Tomer Levy, co-founder and CEO of Logz.io, in this SYS-CON.tv interview at DevOps Summit, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle. In his session at 18th Cloud Expo, ...
Due of the rise of Hadoop, many enterprises are now deploying their first small clusters of 10 to 20 servers. At this small scale, the complexity of operating the cluster looks and feels like general data center servers. It is not until the clusters scale, as they inevitably do, when the pain caused by the exponential complexity becomes apparent. We've seen this problem occur time and time again. In his session at Big Data Expo, Greg Bruno, Vice President of Engineering and co-founder of StackIQ...
"ReadyTalk is an audio and web video conferencing provider. We've really come to embrace WebRTC as the platform for our future of technology," explained Dan Cunningham, CTO of ReadyTalk, in this SYS-CON.tv interview at WebRTC Summit at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
One of the hottest areas in cloud right now is DRaaS and related offerings. In his session at 16th Cloud Expo, Dale Levesque, Disaster Recovery Product Manager with Windstream's Cloud and Data Center Marketing team, will discuss the benefits of the cloud model, which far outweigh the traditional approach, and how enterprises need to ensure that their needs are properly being met.
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and Containers together help companies to achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of D...
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, John Jelinek IV, a web developer at Linux Academy, will discuss why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal ...
IoT is at the core or many Digital Transformation initiatives with the goal of re-inventing a company's business model. We all agree that collecting relevant IoT data will result in massive amounts of data needing to be stored. However, with the rapid development of IoT devices and ongoing business model transformation, we are not able to predict the volume and growth of IoT data. And with the lack of IoT history, traditional methods of IT and infrastructure planning based on the past do not app...
DevOps and microservices are permeating software engineering teams broadly, whether these teams are in pure software shops but happen to run a business, such Uber and Airbnb, or in companies that rely heavily on software to run more traditional business, such as financial firms or high-end manufacturers. Microservices and DevOps have created software development and therefore business speed and agility benefits, but they have also created problems; specifically, they have created software securi...
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
"There is a huge interest in Kubernetes. People are now starting to use Kubernetes and implement it," stated Sebastian Scheele, co-founder of Loodse, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
A critical component of any IoT project is what to do with all the data being generated. This data needs to be captured, processed, structured, and stored in a way to facilitate different kinds of queries. Traditional data warehouse and analytical systems are mature technologies that can be used to handle certain kinds of queries, but they are not always well suited to many problems, particularly when there is a need for real-time insights.