Pan American Silver Corp. Q1 FY2025 earnings call

• 2025 started strong with Pan American posting solid operating performance, reaching a record $250.8 million in mine operating earnings. - La Colorada contributed strongly with improved ventilation allowing higher throughput and lower per-unit costs. - Silver segment all-in sustaining costs were $13.94 per ounce, well below guidance,受益 from higher byproduct credits and lower capital expenditures. - Gold production in Q1 was 182,200 ounces, in line with guidance, and Gold segment all-in sustaining costs were better than expected. - Cash and short-term investments reached a record $923 million, free cash flow for the quarter was $112.6 million. - La Colorada Skarn project advanced with engineering work, exploration, and infill drilling; discussions on partnerships ongoing. - Escobal had 4 working meetings with Guatemalan government as part of ILO 169 consultation; no completion date or restart timeline. - Jacobina comprehensive mine and plant optimization studies progressing well, initial findings expected in early August 2025.

In Q1, Pan American Silver achieved a record mine operating earnings of $250.8 million. The Silver segment had all-in sustaining costs of $13.94 per ounce, with production of just over 5 million ounces of silver. Gold production was 182,200 ounces. Revenue in Q1 was $773 million, net earnings totaled $169 million or $0.47 per share, and adjusted earnings were $153 million or $0.42 per share.

• Maintained guidance provided in February for consolidated production cost and annual expenditures. - Forecast shows higher production over the balance of 2025. - Q1 generated $112.6 million of free cash flow, and gold prices are higher than average in Q1.

• Escobal consultation process timeline uncertainty. - Bell Creek central zone facing challenging ground conditions including seismicity and ground movements. - Minera Florida affected by mine sequencing, lower grade than expected, absenteeism, and equipment delivery delays.

Q: Drivers of high gold and silver sold this quarter?

A: Ignacio Couturier said main driver was strong Q4 production with extra production in December sold in January; Michael Steinmann mentioned timing of shipment as normal course of business.

Q: Minera Florida costs high, causes like absenteeism?

A: Scott Campbell said Minera Florida had rough quarter affected by mine sequencing, lower grade, absenteeism, and equipment delivery delays; Steve Busby added January was a hard-hit month for holidays in Chile affecting absenteeism.

Q: Bell Creek technical challenges?

A: Steve Busby said central zone of Bell Creek had challenging ground conditions with seismicity, had to manage carefully, put in dynamic support; Martin G. Wafforn added as they get deeper, seismicity is present but systems in place to deal with it.

Q: Escobal meetings progress?

A: Sean McAleer said there were good meetings with dialogue around main concerns like water, environmental health, and blasting vibrations; expect more working meetings in coming weeks and months.

Q: NRV adjustment and Dolores?

A: Ignacio Couturier said NRV adjustments were due to Dolores, and now that Dolores is in full leach mode, those numbers should taper as Dolores winds down.

Q: Full-year guidance for Q2 and Q3 sustaining cost?

A: Steve Busby said previous guidance for Q2 ($19.50 to $21.25 an ounce) and Q3 ($14.25 to $16.25 an ounce) is still good gauge as there are sustaining capital projects and tailings compaction developments.

Q: Capital allocation priorities?

A: Michael Steinmann said debt repayment not urgent due to favorable bond interest rates; shareholder return is a priority with potential dividend increase and share buybacks; investment in business through exploration and development projects like La Colorada Skarn is also a priority.