Pan American Silver Corp. Q1 FY2026 earnings call

Operating performance was strong with silver and gold production in line with outlook. Silver segment costs were below guidance, gold segment costs consistent with expectations. Revenue impacted by inventory buildup. Strong net earnings and adjusted earnings. Robust free cash flow strengthened balance sheet. Introduced enhanced shareholder return framework. La Clarada expansion revised plan provided clarity. Jacobina optimization project made progress. Escobar's ILO 169 consultation ongoing.

Silver segment had attributable silver production of 6.4 million ounces with all-in sustaining costs of $6.63 per ounce, well below guidance. Gold segment had attributable gold production of 169,000 ounces with all-in sustaining costs of $851 per ounce, consistent with expectations. Revenue was $1.2 billion. Net earnings were $456 million or $1.08 per share, adjusted earnings were $1.09 per share. Generated $488 million of attributable free cash flow in Q1, ended Q1 with over $1.8 billion in cash and short-term investments.

Maintain full year outlook for production, all-in sustaining costs and sustaining capital. Expect some gold production to shift to Q4 2026. Monitor potential cost pressures related to fuel prices.

Potential cost pressures related to fuel prices, which can have broader inflationary effects on labor and consumables.

Q: Fahad Tariq with Jefferies asked about impact of higher diesel on consumables and labour and silver segment ASIC.

A: Scott responded on consumable prices and Michael talked about silver segment cost driven by low cost ounces and byproduct credits.

Q: Obaze Habib with Scotiabank asked about 20 CPO grade and La Clarada updated study.

A: Michael and Steve responded on 20 CPO grade geology and La Clarada updated resource update.

Q: Cosmos Chu with CIBC asked about SCARN ramp dimensions, share buybacks, and Timmins project.

A: Marvin Weflin and Martin responded on SCARN ramp, share buyback reasons, and Timmins project.

Q: Jeffrey Hume with Ingles and Snyder asked about SCARN project go forward and shareholder return allocation.

A: Michael responded on SCARN project start and allocation between shares and dividends.

Q: John Tomasos with John Tomasos Very Independent Research asked about SCARN PEA capex decrease.

A: Michael responded on SCARN PEA capex decrease due to higher grade and different mining method.