All amounts expressed in U.S. dollars unless otherwise
indicated. Unaudited tabular amounts are in thousands of U.S.
dollars except number of shares, options, warrants, and per share
amounts, unless otherwise noted.
VANCOUVER, BC, Feb. 17, 2021 /PRNewswire/ - Pan American
Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American" or
the "Company") today reported audited financial results for the
year ended December 31, 2020 ("FY 2020") and the fourth
quarter ("Q4 2020"). Preliminary production results were previously
reported on January 19, 2021. Pan
American's audited consolidated financial statements ("Financial
Statements"), as well as Pan American's Management's Discussion and
Analysis ("MD&A") for the three and twelve months ended
December 31, 2020, and the Company's Annual Information Form
for the year ended December 31, 2020,
are available on Pan American's website
at panamericansilver.com and on SEDAR
at www.sedar.com.
"Pan American delivered strong financial performance in 2020,
generating a record $462.3 million in
operating cash flow, which enabled us to fully repay all bank debt,
double our quarterly dividend to shareholders, and grow our cash
balance at year end," said Michael
Steinmann, President and Chief Executive Officer. "Our
operating teams helped deliver these strong results despite the
exceptional challenges presented by the COVID-19 pandemic. We
continue to support our workforce and communities during this
difficult time, and look forward to the deployment of vaccination
programs during 2021."
Q4 2020 and FY 2020 Highlights:
- Revenue was a record $430.5
million in Q4 2020 and totaled $1.3
billion for FY 2020. The rise in realized precious metal
prices over 2020 helped mitigate the impact of COVID-19 related
mine suspensions and throughput reductions on quantities of metal
sold.
- Net earnings were $169.0
million ($0.80 basic earnings
per share) and $176.5 million
($0.85 basic earnings per share) in
Q4 2020 and FY 2020, respectively. Net earnings in Q4 2020 were
driven by record mine operating earnings of $137.2 million and the recognition of deferred
income tax assets, including $41.0
million relating primarily to mine life extensions at the
Timmins and La Arena
operations.
- Adjusted earnings in Q4 2020 were $120.5 million ($0.57 basic adjusted earnings per share). FY 2020
adjusted earnings were $243.4 million
($1.16 basic adjusted earnings per
share).
- Record net cash generated from operating activities of
$170.6 million in Q4 2020 and
$462.3 million for FY 2020.
- As previously announced, consolidated FY 2020
silver and gold production was 17.3 million ounces and 522.4
thousand ounces, respectively. FY 2020 production was largely
impacted by the COVID-19 related mine suspensions and throughput
reductions. Silver production was further impacted by an inability
to access high-grade ore at La
Colorada due to ventilation issues, which are being
remedied, and lower grades at Dolores and San Vicente from mine
sequencing.
- FY 2020 Silver Segment Cash Costs and All-in
Sustaining Costs ("AISC") of $7.05 and $11.38
per silver ounce sold, respectively, were in line with the Revised
2020 Forecast(1).
- FY 2020 Gold Segment Cash Costs and AISC of $797 and $1,011 per
gold ounce sold, respectively, were below the Revised 2020
Forecast(1).
- FY 2020 Consolidated AISC, including gold by-product
credits from the Gold Segment mines, of $(3.29) per silver ounce sold was below the
Revised 2020 Forecast(1).
- Sustaining capital was $52.0
million and $162.0 million in
Q4 2020 and FY 2020, respectively. Project capital was
$3.8 million and $21.5 million in Q4 2020 and FY 2020,
respectively. Approximately $50.0
million to $60.0 million of
capital expenditures were deferred into 2021 due to COVID-19.
- In 2020, Pan American repaid a net $275
million on its revolving Credit Facility. At December 31, 2020, the Company had cash and
short-term investment balances of $279.1
million, working capital of $495.2
million, and no amounts drawn on its $500 million Credit Facility.
- The Board of Directors has approved a cash dividend of
$0.07 per common share, or
approximately $14.7 million in
aggregate cash dividends, payable on or about March 11, 2021, to holders of record of Pan
American's common shares as of the close on March 1, 2021. Pan American's dividends are
designated as eligible dividends for the purposes of the Income
Tax Act (Canada). As is
standard practice, the amounts and specific distribution dates of
any future dividends will be evaluated and determined by the Board
of Directors on an ongoing basis.
(1)
|
Due to the
uncertainties regarding the impact of COVID-19 on our operations,
in May 2020, the Company withdrew its 2020 annual production, Cash
Costs, AISC and capital expenditure forecasts, as provided in the
2019 annual MD&A dated March 12, 2020 (the "Original 2020
Forecasts"). The Company subsequently issued a new 2020 annual
forecast on August 5, 2020 (the "August 2020 Forecast"). On
November 4, 2020, management further revised forecasts for 2020
annual silver production and capital expenditures (the
"Revised 2020 Forecast").
|
Cash Costs, AISC, adjusted earnings, basic adjusted earnings per
share, sustaining capital, project capital, working capital, total
debt, and total available liquidity are not generally accepted
accounting principle ("non-GAAP") financial measures. Please refer
to the "Alternative Performance (non-GAAP) Measures" section of
this news release for further information on these measures.
CONSOLIDATED RESULTS
|
|
|
December
31,
2020
|
|
December 31,
2019
|
|
Weighted average
shares during period (millions)
|
|
|
210.1
|
|
201.4
|
|
Shares outstanding
end of period (millions)
|
|
|
210.3
|
|
209.8
|
|
|
|
|
|
|
|
Three months
ended
December 31,
|
Year ended
December 31,
|
|
2020
|
2019
|
2020
|
2019
|
FINANCIAL
|
|
|
|
|
Revenue
|
$
|
430,461
|
|
$
|
404,379
|
|
$
|
1,338,812
|
|
$
|
1,350,759
|
|
Mine operating
earnings
|
$
|
137,172
|
|
$
|
98,610
|
|
$
|
360,177
|
|
$
|
229,288
|
|
Net
earnings
|
$
|
169,018
|
|
$
|
51,706
|
|
$
|
176,455
|
|
$
|
111,244
|
|
Basic earnings per
share(1)
|
$
|
0.80
|
|
$
|
0.25
|
|
$
|
0.85
|
|
$
|
0.55
|
|
Adjusted
earnings(2)
|
$
|
120,488
|
|
$
|
68,908
|
|
$
|
243,382
|
|
$
|
157,987
|
|
Basic adjusted
earnings (loss) per share(1)
|
$
|
0.57
|
|
$
|
0.33
|
|
$
|
1.16
|
|
$
|
0.78
|
|
Net cash generated
from operating activities
|
$
|
170,571
|
|
$
|
129,473
|
|
$
|
462,315
|
|
$
|
282,028
|
|
Net cash generated
from operating activities before changes in
working capital(2)
|
$
|
151,995
|
|
$
|
124,727
|
|
$
|
365,333
|
|
$
|
309,972
|
|
Sustaining capital
expenditures
|
$
|
52,007
|
|
$
|
46,187
|
|
$
|
162,047
|
|
$
|
179,096
|
|
Project capital
expenditures
|
$
|
3,753
|
|
$
|
9,578
|
|
$
|
21,545
|
|
$
|
44,734
|
|
Cash dividend per
share
|
$
|
0.070
|
|
$
|
0.035
|
|
$
|
0.220
|
|
$
|
0.140
|
|
PRODUCTION
|
|
|
|
|
Silver (thousand
ounces)
|
4,872
|
|
6,622
|
|
17,312
|
|
25,886
|
|
Gold (thousand
ounces)
|
152.9
|
|
173.9
|
|
522.4
|
|
559.2
|
|
Zinc (thousand
tonnes)
|
14.2
|
|
16.6
|
|
40.2
|
|
67.6
|
|
Lead (thousand
tonnes)
|
5.4
|
|
7.2
|
|
15.7
|
|
27.3
|
|
Copper (thousand
tonnes)
|
2.3
|
|
2.3
|
|
5.2
|
|
8.7
|
|
CASH
COSTS(2) ($/ounce)
|
|
|
|
|
Silver
Segment
|
6.15
|
|
7.80
|
|
7.05
|
|
6.39
|
|
Gold
Segment
|
763
|
|
693
|
|
797
|
|
712
|
|
AISC(2)
($/ounce)
|
|
|
|
|
Silver
Segment
|
10.37
|
|
11.37
|
|
11.38
|
|
10.46
|
|
Gold
Segment
|
1,023
|
|
901
|
|
1,011
|
|
948
|
|
Consolidated Silver
Basis
|
(7.28)
|
|
1.04
|
|
(3.29)
|
|
4.44
|
|
AVERAGE REALIZED
PRICES(3)
|
|
|
|
|
Silver
($/ounce)
|
24.72
|
|
17.84
|
|
20.60
|
|
16.34
|
|
Gold
($/ounce)
|
1,874
|
|
1,479
|
|
1,758
|
|
1,406
|
|
Zinc
($/tonne)
|
2,566
|
|
2,325
|
|
2,288
|
|
2,535
|
|
Lead
($/tonne)
|
1,922
|
|
2,078
|
|
1,851
|
|
1,997
|
|
Copper
($/tonne)
|
7,234
|
|
5,840
|
|
6,412
|
|
5,973
|
|
(1)
|
Per share amounts are
based on basic weighted average common shares.
|
(2)
|
Non- GAAP measures:
cash costs, AISC, adjusted earnings, basic adjusted earnings per
share, and net cash generated from operating activities before
changes in working capital are non-GAAP financial measures. Please
refer to the "Alternative Performance (non-GAAP) Measures" section
of this news release for further information on these
measures.
|
(3)
|
Metal prices stated
are inclusive of final settlement adjustments on concentrate
sales.
|
INDIVIDUAL MINE OPERATION PERFORMANCE
|
|
Silver
Production
(ounces '000s)
|
Gold
Production
(ounces '000s)
|
|
|
Three months
ended
December 31,
|
Three months
ended
December 31,
|
|
|
2020
|
2019
|
2020
|
2019
|
Silver
Segment:
|
|
|
|
|
|
La
Colorada
|
|
1,186
|
2,080
|
0.8
|
1.3
|
Dolores
|
|
764
|
1,287
|
30.5
|
26.1
|
Huaron
|
|
892
|
935
|
0.3
|
0.2
|
Morococha(1)
|
|
527
|
554
|
0.2
|
0.2
|
San
Vicente(2)
|
|
663
|
877
|
0.1
|
0.1
|
Manantial
Espejo
|
|
742
|
817
|
8.0
|
6.7
|
Gold
Segment:
|
|
|
|
|
|
Shahuindo
|
|
83
|
54
|
33.6
|
43.5
|
La Arena
|
|
11
|
11
|
41.4
|
48.4
|
Timmins
|
|
4
|
6
|
38.1
|
47.3
|
Total(3)
|
|
4,872
|
6,622
|
152.9
|
173.9
|
(1)
|
Morococha data
represents Pan American 92.3% interest in the mine's
production.
|
(2)
|
San Vicente data
represents Pan American 95.0% interest in the mine's
production.
|
(3)
|
Totals may not add
due to rounding.
|
|
|
|
Cash
Costs(1)
($ per
ounce)
|
AISC(1)
($ per
ounce)
|
Three months
ended
December 31,
|
Three months
ended
December 31,
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
La
Colorada
|
7.07
|
|
4.30
|
|
11.78
|
|
5.80
|
|
Dolores
|
(9.79)
|
|
2.64
|
|
(2.17)
|
|
9.33
|
|
Huaron
|
2.03
|
|
5.34
|
|
3.35
|
|
9.44
|
|
Morococha
|
11.85
|
|
10.85
|
|
18.29
|
|
18.83
|
|
San
Vicente
|
17.67
|
|
14.38
|
|
20.89
|
|
16.50
|
|
Manantial
Espejo
|
18.72
|
|
15.47
|
|
19.24
|
|
16.94
|
|
Silver Segment
Consolidated(2)
|
6.15
|
|
7.80
|
|
10.37
|
|
11.37
|
|
Shahuindo
|
619
|
|
605
|
|
842
|
|
970
|
|
La Arena
|
556
|
|
580
|
|
873
|
|
764
|
|
Timmins
|
1,126
|
|
884
|
|
1,355
|
|
984
|
|
Gold Segment
Consolidated(2)
|
763
|
|
693
|
|
1,023
|
|
901
|
|
Consolidated
Silver Basis(3)
|
|
|
(7.28)
|
|
1.04
|
|
Consolidated
Silver Basis, before net realizable value inventory
adjustments(3)
|
|
|
(5.85)
|
|
0.96
|
|
(1)
|
Cash costs and AISC
are non-GAAP measures. See the section "Alternative Performance
(Non-GAAP) Measures" of the MD&A for the period ended December
31, 2020 for a detailed description of these measures and where
appropriate a reconciliation of the measure to the Q4 2020
Financial Statements.
|
(2)
|
Silver segment cash
costs and AISC are calculated net of credits for realized revenues
from all metals other than silver and are calculated per ounce of
silver sold. Gold segment cash costs and AISC are calculated net of
credits for realized silver revenues and are calculated per ounce
of gold sold. Corporate general and administrative expense, and
exploration and project development expense are included in
consolidated (silver basis) AISC, but are not allocated amongst the
operations and thus are not included in either the silver or gold
segment consolidated amounts.
|
(3)
|
Consolidated silver
basis is calculated by treating all revenues from metals other than
silver, including gold, as a by-product credit.
|
|
|
|
|
Silver
Production
(ounces '000s)
|
Gold
Production
(ounces '000s)
|
|
|
Twelve months
ended
December 31,
|
Twelve months
ended
December 31,
|
|
|
2020
|
2019
|
2020
|
2019
|
Silver
Segment:
|
|
|
|
|
|
La
Colorada
|
|
5,025
|
8,206
|
3.5
|
4.6
|
Dolores
|
|
3,779
|
5,122
|
98.0
|
117.6
|
Huaron
|
|
2,148
|
3,796
|
0.5
|
1.0
|
Morococha(1)
|
|
1,173
|
2,456
|
0.6
|
1.4
|
San
Vicente(2)
|
|
2,320
|
3,528
|
0.3
|
0.5
|
Manantial
Espejo
|
|
2,547
|
2,599
|
23.4
|
22.4
|
Gold
Segment:
|
|
|
|
|
|
Shahuindo
|
|
268
|
137
|
142.4
|
145.4
|
La Arena
|
|
33
|
26
|
105.4
|
122.5
|
Timmins
|
|
18
|
18
|
148.4
|
143.8
|
Total(3)
|
|
17,312
|
25,886
|
522.4
|
559.2
|
(1)
|
Morococha data
represents Pan American 92.3% interest in the mine's
production.
|
(2)
|
San Vicente data
represents Pan American 95.0% interest in the mine's
production.
|
(3)
|
Totals may not add
due to rounding.
|
|
|
|
Cash
Costs(1)
($ per
ounce)
|
AISC(1)
($ per
ounce)
|
Twelve months
ended
December 31,
|
Twelve months
ended
December 31,
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
La
Colorada
|
6.99
|
|
2.99
|
|
10.80
|
|
4.54
|
|
Dolores
|
(2.48)
|
|
3.09
|
|
6.17
|
|
15.45
|
|
Huaron
|
3.77
|
|
4.15
|
|
6.53
|
|
7.74
|
|
Morococha
|
11.40
|
|
4.35
|
|
18.38
|
|
10.08
|
|
San
Vicente
|
15.54
|
|
11.77
|
|
17.94
|
|
13.08
|
|
Manantial
Espejo
|
15.68
|
|
19.59
|
|
15.80
|
|
18.43
|
|
Silver Segment
Consolidated(2)
|
7.05
|
|
6.39
|
|
11.38
|
|
10.46
|
|
Shahuindo
|
588
|
|
570
|
|
750
|
|
807
|
|
La Arena
|
721
|
|
644
|
|
1,109
|
|
1,042
|
|
Timmins
|
1,061
|
|
904
|
|
1,213
|
|
998
|
|
Gold Segment
Consolidated(2)
|
797
|
|
712
|
|
1,011
|
|
948
|
|
Consolidated
Silver Basis(3)
|
|
|
(3.29)
|
|
4.44
|
|
Consolidated
Silver Basis, before net realizable value inventory
adjustments(3)
|
|
|
(2.35)
|
|
4.45
|
|
(1)
|
Cash costs and AISC
are non-GAAP measures. See the section "Alternative Performance
(Non-GAAP) Measures" of the MD&A for the period ended December
31, 2020 for a detailed description of these measures and where
appropriate a reconciliation of the measure to the Q4 2020
Financial Statements.
|
(2)
|
Silver segment cash
costs and AISC are calculated net of credits for realized revenues
from all metals other than silver and are calculated per ounce of
silver sold. Gold segment cash costs and AISC are calculated net of
credits for realized silver revenues and are calculated per ounce
of gold sold. Corporate general and administrative expense, and
exploration and project development expense are included in
consolidated (silver basis) AISC, but are not allocated amongst the
operations and thus are not included in either the silver or gold
segment consolidated amounts.
|
(3)
|
Consolidated silver
basis is calculated by treating all revenues from metals other than
silver, including gold, as a by-product credit.
|
2020 ANNUAL RESULTS COMPARED TO FORECAST
The Company's 2020 annual production, Cash Costs, AISC and
capital expenditures compared to management's most recent annual
forecast amounts are as follows:
|
2020
Actual
|
Forecast
Range(1)
|
Production
|
|
|
Silver (million
ounces)
|
17.3
|
18.0 -
19.0
|
Gold (thousand
ounces)
|
522.4
|
525.0 -
575.0
|
Zinc (thousand
tonnes)
|
40.2
|
40.0 -
43.0
|
Lead (thousand
tonnes)
|
15.7
|
17.0 -
18.0
|
Copper (thousand
tonnes)
|
5.2
|
4.3 - 4.9
|
Cash
Costs(2) ($/ounce)
|
|
|
Silver
Segment
|
7.05
|
6.20 -
7.70
|
Gold
Segment
|
797
|
800 - 860
|
AISC(2)
($/ounce)
|
|
|
Silver
Segment
|
11.38
|
10.50 -
12.50
|
Gold
Segment
|
1,011
|
1,050 -
1,125
|
Consolidated Silver
Basis
|
(3.29)
|
(3.00) -
0.75
|
Capital
Expenditures ($ millions)
|
|
|
Sustaining
Capital
|
162.0
|
175.0 -
180.0
|
Project
Capital
|
21.5
|
20.0 -
21.0
|
Total
Capital
|
183.5
|
195.0 -
201.0
|
(1)
|
|
The Forecast Range
reflects the revised 2020 forecast provided on November 4,
2020.
|
(2)
|
|
Cash Costs and AISC
are non-GAAP measures. See the section "Alternative Performance
(Non-GAAP) Measures" section of this news release for a detailed
description of these measures.
|
Q4 and FY 2020 Audited Results
Pan American plans to release its audited results for Q4 and FY
2020 on February 17, 2021, after
market close. A conference call and webcast will be held on
February 18, 2021.
Conference call and webcast details:
Date:
|
Thursday, February
18, 2021
|
Time:
|
11:00 am ET (8:00 am
PT)
|
Dial-in
numbers:
|
1-800-319-4610
(toll-free in Canada and the U.S.)
|
|
+1-604-638-5340
(international participants)
|
Webcast:
|
panamericansilver.com
|
About Pan American Silver
Pan American owns and
operates silver and gold mines located in Mexico, Peru,
Canada, Argentina and Bolivia. We also own the Escobal mine in
Guatemala that is currently not
operating. As the world's second largest primary silver producer
with the largest silver reserve base globally, we provide enhanced
exposure to silver in addition to a diversified portfolio of gold
producing assets. Pan American has a 27-year history of operating
in Latin America, earning an
industry-leading reputation for corporate social responsibility,
operational excellence and prudent financial management. We are
headquartered in Vancouver, B.C.
and our shares trade on NASDAQ and the Toronto Stock Exchange under
the symbol "PAAS".
Learn more at panamericansilver.com.
Technical Information
Scientific and technical information contained in this news
release have been reviewed and approved by Martin Wafforn, P.Eng.,
Senior Vice President Technical Services and Process Optimization,
and Christopher Emerson, FAusIMM,
Vice President Business Development and Geology, each of whom are
Qualified Persons, as the term is defined in Canadian National
Instrument 43-101 - Standards of Disclosure of Mineral
Projects.
For additional information about Pan American's material mineral
properties, please refer to Pan American's Annual Information Form
dated February 17, 2021, filed at
www.sedar.com, or Pan American's most recent
Form 40-F filed with the SEC.
Alternative Performance (Non-GAAP) Measures
In this news release, we refer to measures that are not
generally accepted accounting principle ("non-GAAP") financial
measures. These measures are widely used in the mining
industry as a benchmark for performance, but do not have a
standardized meaning as prescribed by IFRS as an indicator of
performance, and may differ from methods used by other companies
with similar descriptions. These non-GAAP financial measures
include:
- Cash Costs. Pan American's method of calculating cash costs may
differ from the methods used by other entities and, accordingly,
Pan American's Cash Costs may not be comparable to similarly titled
measures used by other entities. Investors are cautioned that Cash
Costs 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.
- Adjusted earnings and basic adjusted earnings per share. Pan
American believes that these measures better reflect normalized
earnings as they eliminate items that in management's judgment are
subject to volatility as a result of factors, which are unrelated
to operations in the period, and/or relate to items that will
settle in future periods.
- All-in Sustaining Costs per silver or gold ounce sold, net of
by-product credits ("AISC"). Pan American has adopted AISC as a
measure of its consolidated operating performance and its ability
to generate cash from all operations collectively, and Pan American
believes it is a more comprehensive measure of the cost of
operating our consolidated business than traditional cash costs per
payable ounce, as it includes the cost of replacing ounces through
exploration, the cost of ongoing capital investments (sustaining
capital), general and administrative expenses, as well as other
items that affect Pan American's consolidated earnings and cash
flow.
- Total debt is calculated as the total current and non-current
portions of: long-term debt, finance lease liabilities and loans
payable. Total debt does not have any standardized meaning
prescribed by GAAP and is therefore unlikely to be comparable to
similar measures presented by other companies. Pan American and
certain investors use this information to evaluate the financial
debt leverage of Pan American.
- Working capital is calculated as current assets less current
liabilities. Working capital does not have any standardized meaning
prescribed by GAAP and is therefore unlikely to be comparable to
similar measures presented by other companies. Pan American and
certain investors use this information to evaluate whether Pan
American is able to meet its current obligations using its current
assets.
- Total available liquidity is calculated as the sum of Cash and
cash equivalents, Short-term Investments, and the amount available
on the Credit Facility. Total available liquidity does not have any
standardized meaning prescribed by GAAP and is therefore unlikely
to be comparable to similar measures presented by other companies.
Pan American and certain investors use this information to evaluate
the liquid assets available to Pan American.
Readers should refer to the "Alternative Performance (non-GAAP)
Measures" section of Pan American's Management's Discussion and
Analysis for the period ended December 31,
2020, for a more detailed discussion of these and other
non-GAAP measures and their calculation.
Cautionary Note Regarding Forward-Looking Statements and
Information
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 or
information. Forward-looking statements or information in this news
release relate to, among other things: future financial or
operational performance; expectations with respect to the future
anticipated impact of COVID-19 on our operations, the assumptions
related to the global supply of COVID-19 vaccines and the roll-out
in each country, and the effectiveness and results of any vaccines,
the lessening or increase in pandemic-related restrictions, and the
anticipated rate and timing for the same; whether Pan American is
able to maintain a strong financial condition and have sufficient
capital, or have access to capital through our corporate credit
facility or otherwise, to sustain our business and operations; and
the ability of Pan American to successfully complete any capital
projects, the expected economic or operational results derived from
those projects, and the impacts of any such projects on Pan
American.
These forward-looking statements and information reflect Pan
American's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by Pan American, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: the
world-wide economic and social impact of COVID-19 and the duration
and extent of the COVID-19 pandemic and related restrictions, and
the presence and impact of COVID-19 and COVID-19 related
restrictions on our workforce, suppliers and other essential
resources and what effect those impacts, if they change, would have
on our business; the effect that the COVID-19 pandemic may
have on our financial and operational results; the ability of Pan
American to continue with its operations, or to successfully
maintain our operations on care and maintenance, should the
situation related to COVID-19 not be as anticipated; continuation
of operations following shutdowns or reductions in production, our
ability to manage reduced operations efficiently and economically,
including to maintain necessary staffing; tonnage of ore to be
mined and processed; future anticipated prices for gold, silver and
other metals and assumed foreign exchange rates; the timing and
impact of the replacement of ventilation infrastructure at the
La Colorada mine; the ongoing
impact and timing of the court-mandated ILO 169 consultation
process in Guatemala; ore grades
and recoveries; prices for silver, gold and base metals remaining
as estimated; currency exchange rates remaining as estimated;
capital, decommissioning and reclamation estimates; our mineral
reserve and resource estimates and the assumptions upon which they
are based; prices for energy inputs, labour, materials, supplies
and services (including transportation); no labour-related
disruptions at any of our operations; no unplanned delays or
interruptions in scheduled production; all necessary permits,
licenses and regulatory approvals for our operations are received
in a timely manner; our ability to secure and maintain title and
ownership to properties and the surface rights necessary for our
operations; and our ability to comply with environmental, health
and safety laws. The foregoing list of assumptions is not
exhaustive.
Pan American cautions the reader that forward-looking statements
and information involve known and unknown risks, uncertainties and
other factors that may cause actual results and developments to
differ materially from those expressed or implied by such
forward-looking statements or information contained in this news
release and Pan American has made assumptions and estimates based
on or related to many of these factors. Such factors include,
without limitation: the duration and effects of COVID-19, and any
other pandemics on our operations and workforce, and the effects on
global economies and society; fluctuations in silver, gold and base
metal prices; fluctuations in prices for energy inputs, labour,
materials, supplies and services (including transportation);
fluctuations in currency markets (such as the PEN, MXN, ARS, BOB,
GTQ and CAD versus the USD); operational risks and hazards inherent
with the business of mining (including environmental accidents and
hazards, industrial accidents, equipment breakdown, unusual or
unexpected geological or structural formations, cave-ins, flooding
and severe weather); risks relating to the credit worthiness or
financial condition of suppliers, refiners and other parties with
whom Pan American 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; our ability to obtain all necessary
permits, licenses and regulatory approvals in a timely manner;
changes in laws, regulations and government practices in the
jurisdictions where we operate, including environmental, export and
import laws and regulations; changes in national and local
government, legislation, taxation, controls or regulations and
political, legal or economic developments in Canada, the United
States, Mexico,
Peru, Argentina, Bolivia, Guatemala or other countries where Pan
American may carry on business, including legal restrictions
relating to mining, including in Chubut, Argentina, risks relating to expropriation,
and risks relating to the constitutional court-mandated ILO 169
consultation process in Guatemala;
diminishing quantities or grades of mineral reserves as properties
are mined; increased competition in the mining industry for
equipment and qualified personnel; and those factors identified
under the caption "Risks Related to Pan American's Business" in Pan
American'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,
respectively. Although Pan American 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. Investors are
cautioned against undue reliance on forward-looking statements or
information. Forward-looking statements and information are
designed to help readers understand management's current views of
our near and longer term prospects and may not be appropriate for
other purposes. Pan American does not intend, nor does it assume
any obligation to update or revise forward-looking statements or
information, whether as a result of new information, changes in
assumptions, future events or otherwise, except to the extent
required by applicable law.
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SOURCE Pan American Silver Corp.