Suche
 
Folgen Sie uns auf:

Pan American Silver Reports Unaudited 2018 Annual and Fourth Quarter Results

21.02.2019  |  CNW

All financial figures are in U.S. dollars unless otherwise indicated.

VANCOUVER, Feb. 20, 2019 - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) today reported unaudited financial results for the year-ended December 31, 2018 ("YE 2018") and the fourth quarter ("Q4 2018"). These results are preliminary and could change based on final audited results. Preliminary operating results were previously reported on January 21, 2019.

  • Annual revenue totaled $784.5 million, and net cash generated from operating activities was $155.0 million.
  • Annual net earnings of $12.0 million ($0.07 basic earnings per share), and adjusted annual earnings of $59.4 million ($0.39 basic adjusted earnings per share).
  • Annual silver production totaled 24.8 million ounces with all-in sustaining costs per silver ounce sold ("AISCSOS") of $10.73, or $9.68 excluding net realizable value ("NRV") inventory adjustments.
  • Cash costs per payable ounce of silver, net of by-product credits ("cash costs") of $3.35 per ounce in 2018.
  • Advanced the COSE and Joaquin mine developments for initial production in 2019.
  • At December 31, 2018, the Company had cash and short-term investment balances of $212.5 million and working capital of $397.8 million. Year-end debt of $6.7 million related entirely to lease liabilities.

"Pan American's operations demonstrated solid performance in 2018, highlighted by the lowest cash costs on record since 2006. This performance resulted in strong cash flow generation and a healthy financial position at year end," said Michael Steinmann, President and Chief Executive Officer of the Company. "Importantly, we advanced our strategy of developing new catalysts to generate value for shareholders. Our acquisition of Tahoe Resources will result in a more diversified Pan American with a strong portfolio of cash-generating assets and superior growth opportunities. In addition, our major exploration discovery at La Colorada demonstrates a significant opportunity for long-term organic growth."

Consolidated Q4 2018 Highlights:

  • Revenue in Q4 2018 was $173.4 million, reflecting lower prices for all metals and lower quantities of silver, gold, and copper sold due to a build in inventories at San Vicente and La Colorada (approximate revenue impact of $8.4 million), as well as lower production at Dolores.
  • Net cash generated from operating activities was $11.9 million.
  • Net loss was $63.6 million ($0.42 basic loss per share), which included a $27.8 million impairment charge related to the Manantial Espejo/COSE/Joaquin assets, a $13.3 million reduction from NRV inventory adjustments, $10.2 million in costs related to the Tahoe Resources Inc. ("Tahoe") transaction, $8.2 million in tax expense from changes in foreign exchange rates, and a $4.7 million credit loss related to a third party refinery.
  • The impairment of the Manantial Espejo/COSE/Joaquin assets reflects the impact of the new export tax introduced in Argentina in late 2018, and the decline in short-term consensus metal prices.
  • Adjusted loss was $2.0 million ($0.01 basic adjusted loss per share).
  • Silver production was 6.1 million ounces at cash costs of $6.12 per ounce. Q4 2018 cash costs were impacted by lower by-product metal prices and reduced gold production.
  • AISCSOS were $15.86 in Q4 2018, or $13.36 excluding NRV inventory adjustments. AISCSOS were impacted by less silver ounces sold, lower by-product metal prices and higher sustaining capital expenditures.
  • The Board of Directors has approved a cash dividend of $0.035 per common share, or approximately $5.4 million in aggregate cash dividends, payable on or about March 15, 2019, to holders of record of Pan American Silver's common shares as of the close on March 4, 2019. Pan American Silver'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.

The foregoing contains measures that 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.

Amended and Restated Credit Agreement

On February 1, 2019, the Company entered into an Amending and Restating Credit Agreement with a syndicate of banks to extend and increase its existing credit facility. In conjunction with the closing of the Tahoe transaction, the credit facility is expected to increase to $500 million and would mature on February 1, 2023.

Tahoe transaction

All required regulatory, shareholder and court approvals have been received for the plan of arrangement (the "Arrangement"), whereby Pan American will acquire all of the outstanding shares of Tahoe. The Arrangement is anticipated to be completed on or about February 22, 2019.

Pan American receives award for social and environmental responsibility

Pan American is pleased to announce that Matt Andrews, Vice President Environment and Sustainability, and Monica Moretto, Director Sustainability, are the 2018 recipients of the Robert R. Hedley Award for Excellence in Social and Environmental Responsibility from the Association for Mineral Exploration (AME). In the AME's news release, dated December 6, 2018, announcing the 2018 winners, the organization states that Mr. Andrews' and Ms. Moretto's leadership "has created an environment within Pan American Silver Corp. of respect for social and environmental principles on all its projects".

CONSOLIDATED RESULTS




December 31,

2018


December 31,

2017


Shares outstanding (millions)



153,448


153,303








Three months ended

December 31,

Year ended

December 31,


2018

2017

2018

2017

FINANCIAL





Revenue

$

173,357


$

226,031


$

784,495


$

816,828


Mine operating (loss) earnings

$

(4,666)


$

43,285


$

100,897


$

168,760


Net (loss) earnings

$

(63,577)


$

49,664


$

12,041


$

123,451



Per share (1)

$

(0.42)


$

0.32


$

0.07


$

0.79


Adjusted (loss) earnings (2)

$

(2,022)


$

19,219


$

59,434


$

77,705



Per share (1)

$

(0.01)


$

0.13


$

0.39


$

0.51


Net cash generated from operating activities

$

11,930


$

79,291


$

154,978


$

224,559


Net cash generated from operating activities before changes in working capital (2)

$

16,827


$

64,098


$

159,239


$

212,850


Sustaining capital expenditures

$

31,329


$

28,668


$

105,229


$

84,420


Project capital expenditures

$

11,849


$

13,650


$

41,292


$

61,429


Dividend per share

$

0.035


$

0.025


$

0.14


$

0.10


OPERATIONAL





Production






Silver (thousand ounces)

6,128


6,579


24,776


24,979



Gold (thousand ounces)

37.2


43.7


178.9


160.0



Zinc (thousand tonnes)

18.5


14.7


64.8


55.3



Lead (thousand tonnes)

6.3


5.4


22.4


21.5



Copper (thousand tonnes)

2.2


3.0


9.8


13.4


Average realized prices






Silver ($/ounce)

$

14.35


$

16.65


$

15.61


$

16.99



Gold ($/ounce)

$

1,232


$

1,276


$

1,272


$

1,257



Zinc ($/tonne)

$

2,508


$

3,282


$

2,846


$

2,929



Lead ($/tonne)

$

1,914


$

2,472


$

2,189


$

2,351



Copper ($/tonne)

$

6,098


$

6,811


$

6,519


$

6,174


Cash costs (per payable ounce of silver, net of by-product credits)(2)

$

6.12


$

3.18


$

3.35


$

4.55


All-in sustaining costs per silver ounce sold(2)

$

15.86


$

10.86


$

10.73


$

10.79


All-in sustaining costs per silver ounce sold, excluding NRV inventory adjustments(2)

$

13.36


$

10.03


$

9.68


$

10.28


(1)

Per share amounts are based on basic weighted average common shares.

(2)

Non-GAAP measures: adjusted (loss) earnings, basic adjusted (loss) earnings per share, net cash generated from operating activities before changes in working capital, cash costs, and all-in sustaining costs per silver ounce sold (inclusive and exclusive of NRV inventory adjustments) 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.

MINE OPERATING RESULTS


Three Months Ended

December 31, 2018


Three Months Ended

December 31, 2017


Production

Cash Costs(1)


Production

Cash Costs(1)


Ag (Moz)


Au (koz)



Ag (Moz)


Au (koz)


La Colorada

2.1


1.2


$1.73


1.9


1.3


$0.43

Dolores

0.8


29.4


$7.06


1.3


31.2


($3.93)

Alamo Dorado



 NA



0.1


$2.09

Huaron

1.0


0.2


$2.82


1.0


0.2


$2.08

Morococha (2)

0.7


0.2


$0.61


0.7


0.8


($7.42)

San Vicente (3)

0.9


0.1


$9.23


1.1


0.1


$9.04

Manantial Espejo

0.6


6.2


$25.53


0.6


10.0


$26.52

TOTAL

6.1


37.2


$6.12


6.6


43.7


$3.18


Year Ended

December 31, 2018


Year Ended

December 31, 2017


Production

Cash Costs(1)


Production

Cash Costs(1)


Ag (Moz)


Au (koz)



Ag (Moz)


Au (koz)


La Colorada

7.6


4.4


$2.02


7.1


4.3


$2.08

Dolores

4.1


136.6


($1.87)


4.2


103.0


($1.65)

Alamo Dorado



 NA


0.6


2.1


$16.49

Huaron

3.6


0.8


$1.63


3.7


1.1


$1.35

Morococha(2)

2.9


2.1


($4.34)


2.6


3.5


($5.34)

San Vicente(3)

3.5


0.5


$10.12


3.6


0.5


$11.85

Manantial Espejo

3.1


34.6


$13.91


3.1


45.3


$18.25

TOTAL

24.8


178.9


$3.35


25.0


160.0


$4.55

Totals may not add up due to rounding.

(1)

Cash costs is a non-GAAP measure. Please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on this measure.

(2)

Morococha data represents Pan American Silver's 92.3% interest in the mine's production.

(3)

San Vicente data represents Pan American Silver's 95.0% interest in the mine's production.

CAPITAL EXPENDITURES(1)


Annual

Forecast(2)

Year ended

December 31,

(in millions of USD)

2018


2018


2017


La Colorada

17.5 – 18.5


16.9


13.3


Dolores

42.0 – 44.0


48.5


38.4


Huaron

17.0 – 17.5


15.9


8.8


Morococha

14.5 – 15.0


14.1


12.5


San Vicente

6.5 – 7.0


7.0


8.1


Manantial Espejo

2.5 – 3.0


2.8


3.3


Sustaining Capital Total(1)

100.0 - 105.0


105.2


84.4


Mexico project capital

15.5


15.9


56.8


Joaquin and COSE projects(3)

24.5


25.4


4.7


Project Capital Total(1)

40.0


41.3


61.5


Consolidated Total

140.0 – 145.0


146.5


145.9


(1)

The total sustaining capital amounts capitalized in 2018 were $0.8 million less than the $106.0 million of 2018 sustaining capital cash outflows. Project capital amounts capitalized in 2018 were $3.4 million less than the $44.7 million of 2018 project capital cash outflows. The sustaining capital cash outflows are included in the 2018 AISCSOS calculation, shown in the "Alternative Performance (non-GAAP) Measures" section of this news release, and in the tables included for the individual mines in the "Mine Operating Results" section of this news release; these amounts are different than the amounts capitalized in the period, which are provided  in the table above. These differences are due to the timing difference between the cash payment of capital investments compared with the period in which investments are capitalized.

(2)

Forecast amount per Q3 2018 MD&A dated November 6, 2018.

(3)

Total expenditures of $9.7 million were incurred in 2017 for the Joaquin and COSE projects, of which $5.0 million was expensed as part of 2017 exploration and project development expenses, and the remaining $4.7 million was capitalized. All Joaquin and COSE project expenditures were capitalized in 2018.

Sustaining capital of $105.2 million in 2018 was slightly above our forecast range of $100 to $105 million, reflecting higher pre-stripping and leach pad expansionary activities at Dolores, largely offset with savings on the tailings storage facility expansion at Huaron and deferral of certain exploration spending, infrastructure upgrades and equipment procurements.

Project capital of $41.3 million, compared with a forecast of $40 million, was directed at the COSE and Joaquin mine developments in Argentina, as well as investments at Dolores and La Colorada.

2019 GUIDANCE

There are no revisions to the guidance for 2019 that Pan American provided in its news release dated January 21, 2019, as provided in the table below. The guidance does not include the assets to be acquired under the Arrangement with Tahoe. Management intends to update the guidance to include these assets and allocation of new general and administrative costs in the second quarter of 2019. We may also revise guidance during the year to reflect actual results to date and those anticipated for the remainder of the year.


2019 Guidance

Production


Silver (million ounces)

26.5 - 27.5

Gold (thousand ounces)

162.5 - 172.5

Zinc (thousand tonnes)

65.0 - 67.0

Lead (thousand tonnes)

24.0 - 25.0

Copper (thousand tonnes)

9.8 - 10.3

Cash Costs(1)($/ounce)

6.50 - 7.50

AISCSOS(1) ($)

10.80 - 12.30

Sustaining capital ($millions)

85 - 90

Project capital ($millions)

30




Assumptions used to forecast total cash costs and AISCSOS for 2019


Metal prices


Silver ($/ounce)

14.50

Gold ($/ounce)

1,250

Zinc ($/tonne)

2,600

Lead ($/tonne)

1,950

Copper ($/tonne)

6,150

Average annual exchange rates relative to 1.00 U.S. dollar


Mexican peso

19.50

Peruvian sol

3.33

Argentine peso

41.80

Bolivian boliviano

6.91

(1)

Cash Costs and AISCSOS are non-GAAP measures.  Please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.

Additional details on the Company's 2019 guidance can be found in the January 21, 2019 news release entitled, "Pan American Silver Announces Preliminary 2018 Operating Results and Guidance for 2019" available at www.panamericansilver.com and as filed on SEDAR at www.sedar.com.

Fourth Quarter and Year End 2018 Unaudited Results Conference Call and Webcast

Date:

February 21, 2019

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:

www.panamericansilver.com

Callers should dial in 5 to 10 minutes prior to the scheduled start time. The live webcast and presentation slides will be available on the Company's website at www.panamericansilver.com. An archive of the webcast will also be available for three months.

Corporate Office:

625 Howe Street, Suite 1440
Vancouver, British Columbia
V6C 2T6 Canada

Tel: +1 604 684-1175
Fax: +1 604 684-0147

About Pan American Silver

Pan American Silver Corp. is the world's second largest primary silver producer, providing enhanced exposure to silver through a diversified portfolio of assets, large reserves and growing production. We own and operate six mines in Mexico, Peru, Argentina and Bolivia. Pan American Silver maintains a strong balance sheet, has an established management team with proven operating expertise, and is committed to responsible development. Founded in 1994, the Company is headquartered in Vancouver, B.C. and our shares trade on NASDAQ and the Toronto Stock Exchange under the symbol "PAAS".

For more information, visit: www.panamericansilver.com.

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 per payable ounce of silver, net of by-product credits ("cash costs"). The Company's method of calculating cash costs may differ from the methods used by other entities and, accordingly, the Company'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 (loss) and adjusted earnings (loss) per share. The Company 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 ounce sold ("AISCSOS"). The Company has adopted AISCSOS as a measure of its consolidated operating performance and its ability to generate cash from all operations collectively, and the Company 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 the Company's consolidated earnings and cash flow.
  • Net cash generated from operating activities before changes in working capital is calculated as "Net cash generated from operating activities" less "Changes in non-cash operating working capital", as shown on the Consolidated Statements of Cash Flows. The Company believes the exclusion of changes in non-cash operating working capital better reflects the cash from operating activities generated in the period. Net cash generated from operating activities before changes in 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.

Readers should refer to the "Alternative Performance (non-GAAP) Measures" section following the Consolidated Statements of Cash Flows included in this news release for a more detailed discussion of these and other non-GAAP measures and their calculation.

Technical information contained in this news release with respect to Pan American has been reviewed and approved by Martin Wafforn, P.Eng., Senior Vice President, Technical Services & Process Optimization, who is the Company's Qualified Person for the purposes of National Instrument 43-101. For additional information about the Company's material mineral properties, other than the Joaquin property, please refer to the Company's Annual Information Form dated March 22, 2018, filed at www.sedar.com. Mineral resources that are not mineral reserves have no demonstrated economic viability.

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, including our estimated production of silver, gold and other metals in 2019 our estimated Cash Costs and AISCSOS in 2019, and our expectations with respect to future metal prices and exchange rates; the ability of the Company to successfully complete any capital projects, the expected economic or operational results derived from those projects, and the impacts of any such projects on the Company, the approval or the amount of any future cash dividends; our growth profile and opportunities as results of the Arrangement; the increase of our credit facility and the timing thereof; the anticipated completion date of the Arrangement; and any update of our guidance subsequent to completion of the Arrangement, and the disclosure and timing of any such update.

These forward-looking statements and information reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: the completion date of the Arrangement; the ability of the Company to realize the anticipated benefits and opportunities as a result of the Arrangement; access to capital and other financing, if required; tonnage of ore to be mined and processed; 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; and our ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.

The Company 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 the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: 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 Canadian dollar, Peruvian sol, Mexican peso, Argentine peso and Bolivian boliviano versus the U.S. dollar); 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 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; 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; legal restrictions relating to mining, including in Chubut, Argentina; risks relating to expropriation; 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 the Company's most recent form 40-F and Annual Information Form, as well as those factors identified in the section entitled "Risk Factors" in the Company's management information circular dated December 4, 2018 with respect to the Arrangement, each filed with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities, respectively. 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. 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. The Company 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.




December 31,

2018



December 31,

2017


Assets





Current assets





Cash and cash equivalents


$

138,510



$

175,953


Short-term investments


74,004



51,590


Trade and other receivables


96,091



109,746


Income taxes receivable


13,108



16,991


Inventories


214,465



218,715


Derivative financial instruments


640



1,092


Assets held for sale




7,949


Prepaid expenses and other current assets


11,556



13,434




548,374



595,470


Non-current assets





Mineral properties, plant and equipment


1,301,002



1,336,683


Long-term refundable tax


70



80


Deferred tax assets


12,244



2,679


Investment in associates


70,566



55,017


Other assets


2,163



346


Goodwill


3,057



3,057


Total Assets


$

1,937,476



$

1,993,332







Liabilities





Current liabilities





Accounts payable and accrued liabilities


$

131,743



$

139,698


Loans payable




3,000


Derivative financial instruments


51



1,906


Current portion of provisions


5,072



8,245


Current portion of finance lease


5,356



5,734


Income tax payable


8,306



26,131




150,528



184,714


Non-current liabilities





Long-term portion of provisions


70,083



61,248


Deferred tax liabilities


148,819



171,228


Long-term portion of finance lease


1,320



1,825


Deferred revenue


13,288



12,017


Other long-term liabilities


25,425



26,954


Share purchase warrants


14,664



14,295


Total Liabilities


424,127



472,281







Equity





Capital and reserves





Issued capital


2,321,498



2,318,252


Share option reserve


22,573



22,463


Investment revaluation reserve


208



1,605


Deficit


(836,067)



(825,470)


Total Equity attributable to equity holders of the Company


1,508,212



1,516,850


Non-controlling interests


5,137



4,201


Total Equity


1,513,349



1,521,051


Total Liabilities and Equity


$

1,937,476



$

1,993,332




Three months ended

December 31,


Year ended

December 31,



2018



2017



2018



2017


Revenue


$

173,357



$

226,031



$

784,495



$

816,828


Cost of sales









 Production costs


(132,334)



(139,697)



(511,793)



(500,670)


 Metal inventory loss(1)


(4,670)





(4,670)




 Depreciation and amortization


(36,418)



(34,240)



(146,462)



(122,888)


 Royalties


(4,601)



(8,809)



(20,673)



(24,510)




(178,023)



(182,746)



(683,598)



(648,068)


Mine operating (loss) earnings


(4,666)



43,285



100,897



168,760











General and administrative


(5,450)



(4,732)



(22,649)



(21,397)


Exploration and project development


(3,509)



(4,269)



(11,138)



(19,755)


Foreign exchange gains (losses)


406



1,052



(9,326)



1,823


Impairment (charges) reversals


(27,789)



61,554



(27,789)



61,554


Gains (losses) on commodity and foreign currency contracts


524



(1,841)



4,930



606


(Losses) gains on sale of mineral properties, plant and equipment


(56)



(794)



7,973



191


Share of (loss) income from associate and dilution gain


(182)



259



13,679



2,052


Transaction costs


(10,229)





(10,229)




Other expense


(2,795)



(4,011)



(3,659)



(5,505)


(Loss) earnings from operations


(53,746)



90,503



42,689



188,329











(Loss) gain on derivatives


(60)



64



(1,078)



64


Investment (loss) income


(1,428)



658



(284)



1,277


Interest and finance expense


(2,305)



(2,353)



(8,139)



(7,185)


(Loss) earnings before income taxes


(57,539)



88,872



33,188



182,485


Income tax expense


(6,038)



(39,208)



(21,147)



(59,034)


Net (loss) earnings for the period


$

(63,577)



$

49,664



$

12,041



$

123,451











Attributable to:









Equity holders of the Company


$

(63,809)



$

48,892



$

10,294



$

120,991


Non-controlling interests


232



772



1,747



2,460




$

(63,577)



$

49,664



$

12,041



$

123,451











(Loss) earnings per share attributable to common shareholders









Basic (loss) earnings per share


$

(0.42)



$

0.32



$

0.07



$

0.79


Diluted (loss) earnings per share


$

(0.42)



$

0.32



$

0.07



$

0.79


Weighted average shares outstanding (in 000's) Basic


153,352



153,207



153,315



153,070


Weighted average shares outstanding (in 000's) Diluted


153,504



153,434



153,522



153,353











(1)

Relates to certain doré metal inventory held at a refinery used by the Company that filed for bankruptcy in November, 2018.  The inventory write-down was comprised of $3.9 million of production costs and $0.8 million of depreciation and amortization.



Three months ended

December 31,


Year ended

December 31,



2018



2017



2018



2017


Net (loss) earnings for the period


$

(63,577)



$

49,664



$

12,041



$

123,451


Items that may be reclassified subsequently to net earnings:









 Unrealized net gains on short-term investments (net of $nil tax in 2018 and 2017)


332



1,376



993



810


 Reclassification adjustment for realized (gains) losses on short-term investments to earnings


(294)



250



(788)



361


Total comprehensive (loss) earnings for the period


$

(63,539)



$

51,290



$

12,246



$

124,622











Total comprehensive (loss) earnings attributable to:









Equity holders of the Company


$

(63,771)



$

50,518



$

10,499



$

122,162


Non-controlling interests


232



772



1,747



2,460




$

(63,539)



$

51,290



$

12,246



$

124,622




Three months ended

December 31,


Year ended

December 31,



2018



2017



2018



2017


Cash flow from operating activities









Net (loss) earnings for the period


$

(63,577)



$

49,664



$

12,041



$

123,451











Current income tax expense


9,999



26,706



53,901



62,877


Deferred income tax (recovery) expense


(3,961)



12,502



(32,754)



(3,843)


Interest expense (recovery)


117



284



(678)



(1,179)


Depreciation and amortization


37,245



34,240



147,289



122,888


Impairment charges (reversals)


27,789



(61,554)



27,789



(61,554)


Accretion on closure and decommissioning provision


1,631



1,493



6,524



5,973


Unrealized (gains) losses on foreign exchange


(348)



362



10,337



(383)


Loss (gain) on sale of mineral properties, plant and equipment


56



794



(7,973)



(191)


Project development write-down








1,898


Other operating activities


19,824



7,697



17,724



12,663


Changes in non-cash operating working capital


(4,897)



15,193



(4,261)



11,709


Operating cash flows before interest and income taxes


$

23,878



$

87,381



$

229,939



$

274,309











Interest paid


(417)



(413)



(1,684)



(2,367)


Interest received


561



414



1,944



1,462


Income taxes paid


(12,092)



(8,091)



(75,221)



(48,845)


Net cash generated from operating activities


$

11,930



$

79,291



$

154,978



$

224,559











Cash flow from investing activities









Payments for mineral properties, plant and equipment


$

(42,302)



$

(36,473)



$

(144,348)



$

(142,232)


Acquisition of mineral interests






(7,500)



(20,219)


Net purchase of short-term investments


(10,020)



(703)



(25,554)



(14,267)


Proceeds from sale of mineral properties, plant and equipment


4



36



15,781



1,674


Purchase of shares in associate








(2,473)


Net proceeds (payments) from commodity, diesel fuel swaps, and foreign currency contracts


1,289



348



2,449



(304)


Net cash used in investing activities


$

(51,029)



$

(36,792)



$

(159,172)



$

(177,821)











Cash flow from financing activities









Proceeds from issue of equity shares


$



$

28



$

1,081



$

2,606


Distributions to non-controlling interests


(1,158)



(314)



(2,020)



(1,052)


Dividends paid


(5,366)



(3,830)



(21,284)



(15,314)


Repayment of credit facility








(36,200)


Proceeds from (repayment of) short-term loans




3,000



(3,000)



3,000


Payment of equipment leases


(2,223)



(1,344)



(7,911)



(4,542)


Net cash used in financing activities


$

(8,747)



$

(2,460)



$

(33,134)



$

(51,502)


Effects of exchange rate changes on cash and cash equivalents


(68)



(80)



(115)



(164)


Net (decrease) increase in cash and cash equivalents


(47,914)



39,959



(37,443)



(4,928)


Cash and cash equivalents at the beginning of the period


186,424



135,994



175,953



180,881


Cash and cash equivalents at the end of the period


$

138,510



$

175,953



$

138,510



$

175,953





















ALTERNATIVE PERFORMANCE (NON-GAAP) MEASURES

All-In Sustaining Costs per Silver Ounce Sold ("AISCSOS")

AISCSOS is a non-GAAP financial measure. AISCSOS does not have any standardized meaning prescribed by IFRS and is therefore unlikely to be comparable to similar measures presented by other companies. We believe that AISCSOS reflects a comprehensive measure of the full cost of operating our consolidated business given it includes the cost of replacing silver ounces through exploration, the cost of ongoing capital investments (sustaining capital), general and administrative expenses, as well as other items that affect the Company's consolidated cash flow. To facilitate a better understanding of this measure as calculated by the Company, the following table provides the detailed reconciliation of this measure to the applicable cost items, as reported in the consolidated income statements for the respective periods:





Three months ended

December 31,


Year ended

December 31,

(In thousands of USD, except as noted)




2018



2017



2018



2017


Direct operating costs




$

119,070



$

134,202



$

487,462



$

488,363


Inventory Net Realizable Value ("NRV") adjustments


A


13,263



5,495



24,330



12,307


Production costs




$

132,334



$

139,697



$

511,793



$

500,670


Royalties




4,601



8,809



20,673



24,510


Direct selling costs(1)




14,614



19,408



53,119



69,344


Less by-product credits(1)




(107,454)



(131,679)



(483,325)



(462,663)


Cash cost of sales net of by-products (2)




$

44,095



$

36,235



$

102,259



$

131,862


Sustaining capital (3)




$

29,377



$

25,573



$

106,030



$

84,215


Exploration and project development(4)




3,509



4,269



11,137



17,858


Reclamation cost accretion




1,631



1,493



6,524



5,973


General and administrative expense




5,450



4,732



22,649



21,397


All-in sustaining costs (4)


B


$

84,062



$

72,303



$

248,600



$

261,304


Payable ounces sold (in thousands)


C


5,299



6,659



23,160



24,212


All-in sustaining cost per silver ounce sold, net of by-products


B/C


$

15.86



$

10.86



$

10.73



$

10.79


All-in sustaining cost per silver ounce sold, net of by-products
(excludes NRV inventory adjustments)


(B-A)/C


$

13.36



$

10.03



$

9.68



$

10.28


(1)

Included in the revenue line of the interim consolidated income statements, and for by-product credits are reflective of realized metal prices for the applicable periods.

(2)

Totals may not add due to rounding.

(3)

Please refer to the table below.  Further,  Q4 2018 and 2018 annual sustaining capital cash outflows included in this table were $2.0 million less and $0.8 million more than the and $31.3 million and $105.2 million of sustaining capital expenditures capitalized in Q4 2018 and 2018, respectively, as shown in the Consolidated Results table included in this news release (Q4 2017 and 2017, $3.1 million and  $0.2 million less than the $28.7 million and $84.4 million capitalized). The difference is due to the timing difference between the cash payment of capital investments compared with the period in which investments are capitalized.

(4)

The amounts for year-to-date 2017 exclude $1.9 million from non-cash project development write-downs.

As part of the AISCSOS measure, sustaining capital is included while expansionary or acquisition capital (referred to by the Company as non-sustaining capital) is not. Inclusion of sustaining capital only is a measure of capital costs associated with current ounces sold as opposed to project capital, which is expected to increase future production. For the periods under review, the items noted below are associated with the La Colorada and Dolores projects and are considered to be investment capital projects.

Reconciliation of payments for mineral properties,

plant and equipment and sustaining capital


Three months ended

December 31,


Year ended

December 31,

(in thousands of USD)


2018



2017



2018



2017


Payments for mineral properties, plant and equipment(1)


$

42,302



$

36,473



144,348



142,232


Add/(Subtract)









Advances received for leases


450



1,385



7,028



5,000


Non-Sustaining capital


(13,375)



(12,284)



(45,346)



(63,017)


Sustaining Capital(2)


$

29,377



$

25,573



106,030



84,215


(1)

As presented on the unaudited interim consolidated statements of cash flows.

(2)

Totals may not add due to rounding.

Three months ended December 31, 2018


La

Colorada

Dolores

Huaron

Morococha

San

Vicente

Manantial

Espejo

PASCORP

Consolidated

Direct operating costs

16,947


39,667


19,707


16,096


6,984


19,671



119,070


NRV inventory adjustments


11,440





1,822



13,263


Production costs

16,947


51,107


19,707


16,096


6,984


21,494



132,334


Royalties

130


1,642




2,554


275



4,601


Direct selling costs

2,050


31


6,061


2,524


1,816


2,132



14,614


Less by-product credits

(14,749)


(35,862)


(23,682)


(19,013)


(6,231)


(7,917)



(107,454)


Cash cost of sales net of by-products(1)

4,378


16,919


2,087


(394)


5,123


15,984



44,095


Sustaining capital

5,364


13,255


5,653


3,039


1,628


436



29,377


Exploration and project development

711


241


7


123



51


2,375

3,509


Reclamation cost accretion

114


351


152


87


63


708


156

1,631


General & administrative expense







5,450

5,450


All-in sustaining costs(1)

10,567


30,766


7,899


2,855


6,814


17,178


7,981

84,062


Payable ounces sold (thousand)

1,780


870


858


674


502


615



5,299


All-in sustaining cost per silver ounce sold, net of

by-products

$

5.93


$

35.36


$

9.21


$

4.24


$

13.57


$

27.94



$

15.86


All-in sustaining cost per silver ounce sold, net of

by-products (excludes NRV inventory adjustments)

5.93


22.21


9.21


4.24


13.57


24.98



13.36


























(1)

Totals may not add due to rounding.

Three months ended December 31, 2017


La

Colorada

Dolores

Alamo

Dorado

Huaron

Morococha

San

Vicente

Manantial

Espejo

PASCORP

Consolidated

Direct operating costs

16,580


35,739


3,957


19,551


16,931


10,484


30,960



134,202


NRV inventory adjustments


4,098


(1,916)





3,313



5,495


Production costs

16,580


39,838


2,041


19,551


16,931


10,484


34,273



139,697


Royalties

106


1,966





6,105


633



8,809


Direct selling costs

4,066


31


248


6,659


5,014


3,383


8



19,408


Less by-product credits

(18,316)


(39,317)


(61)


(24,653)


(26,767)


(6,969)


(15,595)



(131,679)


Cash cost of sales net of by-products(1)

2,435


2,518


2,227


1,557


(4,823)


13,002


19,319



36,235


Sustaining capital

2,576


13,303



3,548


3,162


1,939


1,045



25,573


Exploration and project development

73


564



428


543



936


1,726

4,269


Reclamation cost accretion

112


296


89


162


105


56


619


54

1,493


General & administrative expense








4,732

4,732


All-in sustaining costs(1)

5,196


16,682


2,317


5,695


(1,013)


14,998


21,918


6,511

72,303


Payable ounces sold (thousand)

1,847


1,225


133


813


658


1,218


766



6,659


All-in sustaining cost per silver ounce

sold, net of by-products

$

2.81


$

13.62


$

17.45


$

7.00


$

(1.54)


$

12.31


$

28.63



$

10.86


All-in sustaining cost per silver ounce

sold, net of by-products (excludes NRV

inventory adjustments)

$

2.81


$

10.27


$

31.89


$

7.00


$

(1.54)


$

12.31


$

24.30



$

10.03


(1)

Totals may not add due to rounding.

Year ended December 31, 2018


La

Colorada

Dolores

Huaron

Morococha

San

Vicente

Manantial

Espejo

PASCORP

Consolidated

Direct operating costs

70,248


154,598


75,382


68,068


33,461


85,705



487,462


NRV inventory adjustments


24,567





(238)



24,330


Production costs

70,248


179,165


75,382


68,068


33,461


85,468


0

511,793


Royalties

616


7,991




9,943


2,124



20,673


Direct selling costs

8,537


129


21,326


13,313


7,451


2,363



53,119


Less by-product credits

(63,442)


(170,337)


(91,155)


(93,142)


(20,829)


(44,420)



(483,325)


Cash cost of sales net of by-products(1)

15,959


16,949


5,553


(11,761)


30,026


45,534



102,259


Sustaining capital

15,462


48,842


17,109


14,840


6,949


2,827



106,030


Exploration and project development

880


1,594


660


598



744


6,661

11,137


Reclamation cost accretion

457


1,405


609


347


252


2,832


622

6,524


General & administrative expense







22,649

22,649


All-in sustaining costs(1)

32,758


68,790


23,931


4,024


37,227


51,937


29,932

248,600


Payable ounces sold (thousand)

7,069


4,205


3,094


2,652


3,054


3,086



23,160


All-in sustaining cost per silver ounce sold, net of

by-products

$

4.63


$

16.36


$

7.73


$

1.52


$

12.19


$

16.83



$

10.73


All-in sustaining cost per silver ounce sold, net of

by-products (excludes NRV inventory adjustments)

4.63


10.52


7.73


1.52


12.19


16.91



9.68


























(1)

Totals may not add due to rounding.

Year ended December 31, 2017


La

Colorada

Dolores

Alamo

Dorado

Huaron

Morococha

San

Vicente

Manantial

Espejo

PASCORP

Consolidated

Direct operating costs

67,170


116,104


20,477


75,551


63,967


34,731


110,362



488,363


NRV inventory adjustments


6,847


(2,598)





8,058



12,307


Production costs

67,170


122,951


17,879


75,551


63,967


34,731


118,420



500,670


Royalties

475


6,501


79




14,321


3,134



24,510


Direct selling costs

12,235


93


479


26,238


18,770


10,740


789



69,344


Less by-product credits

(64,133)


(128,351)


(3,467)


(97,715)


(94,233)


(16,278)


(58,485)



(462,663)


Cash cost of sales net of by-products(1)

15,748


1,194


14,970


4,074


(11,496)


43,513


63,858



131,862


Sustaining capital

13,970


36,071



10,267


12,428


8,146


3,333



84,215


Exploration and project development

251


2,444



1,713


1,629



4,588


7,232

17,858


Reclamation cost accretion

448


1,186


357


646


420


225


2,474


216

5,973


General & administrative expense








21,397

21,397


All-in sustaining costs(1)

30,417


40,894


15,327


16,701


2,981


51,884


74,254


28,845

261,304


Payable ounces sold (thousand)

6,853


4,089


867


3,181


2,448


3,603


3,171



24,212


All-in sustaining cost per silver ounce

sold, net of by-products

$

4.44


$

10.00


$

17.69


$

5.25


$

1.22


$

14.40


$

23.42



$

10.79


All-in sustaining cost per silver ounce

sold, net of by-products (excludes NRV

inventory adjustments)

$

4.44


$

8.33


$

20.68


$

5.25


$

1.22


$

14.40


$

20.88



$

10.28


(1)

Totals may not add due to rounding.

Cash Costs per Ounce of Silver, Net of By-Product Credits
Pan American produces by-product metals incidentally to our silver mining activities. We have adopted the practice of calculating the net cost of producing an ounce of silver, our primary payable metal, after deducting revenues gained from incidental by-product production, as a performance measure. This performance measurement has been commonly used in the mining industry for many years and was developed as a relatively simple way of comparing the net production costs of the primary metal for a specific period against the prevailing market price of that metal.

Cash costs per ounce metrics, net of by-product credits, is used extensively in our internal decision making processes. We believe the metric is also useful to investors because it facilitates comparison, on a mine-by-mine basis, notwithstanding the unique mix of incidental by-product production at each mine, of our operations' relative performance on a period-by-period basis, and against the operations of our peers in the silver industry on a consistent basis. Cash costs per ounce is conceptually understood and widely reported in the silver mining industry. However, cash cost per ounce of silver is a non-GAAP measure and does not have a standardized meaning prescribed by GAAP and the Company's method of calculating cash costs may differ from the methods used by other entities.

To facilitate a better understanding of these measures as calculated by the Company, the following table provides the detailed reconciliation of these measures to the production costs, as reported in the consolidated income statements for the respective periods:

Total Cash Costs per ounce of Payable Silver, net of

by-product credits

Three months ended

December 31,

Year ended

December 31,

(in thousands of U.S. dollars except as noted)

2018


2017


2018


2017


Production costs(1)


$

136,177


$

139,697


$

515,636


$

500,670


Add/(Subtract)






Royalties


4,601


8,809


20,673


24,510


Smelting, refining, and transportation charges


14,736


18,469


57,137


73,222


Worker's participation and voluntary payments


(616)


(1,374)


(3,506)


(5,067)


Change in inventories


5,922


(12,776)


16,581


(16,011)


Other


(1,090)


555


(8,866)


1,559


Non-controlling interests (2)


(456)


(64)


(875)


(1,126)


Inventory net realizable value ("NRV") adjustments


(13,263)


(5,495)


(24,330)


(12,307)


Cash Operating Costs before by-product credits(3)


146,012


147,820


572,449


565,450


Less gold credit


(44,609)


(54,648)


(224,716)


(196,649)


Less zinc credit


(42,270)


(40,826)


(162,646)


(137,826)


Less lead credit


(11,482)


(12,687)


(46,501)


(46,948)


Less copper credit


(12,707)


(20,026)


(60,706)


(77,348)


Cash Operating Costs net of by-product credits (3)

A

34,945


19,633


77,881


106,678


Payable Silver Production (koz)

B

5,710


6,172


23,258


23,444


Cash Costs per ounce net of by-product credits

A/B

$

6.12


$

3.18


$

3.35


$

4.55


(1)

2018 annual and Q4 2018 production costs include $3.9 million of costs to produce certain doré metal inventory that was subsequently written-off in full as a result of the inventory being held at a refinery that filed for bankruptcy in November of 2018.

(2)

Figures presented in the reconciliation table above are on a 100% basis as presented in the consolidated financial statements with an adjustment line item to account for the portion of the Morococha and San Vicente mines owned by non-controlling interests, an expense item not included in operating cash costs. The associated tables below are for the Company's share of ownership only.

(3)

Figures in this table and in the associated tables below may not add due to rounding.

Three months ended December 31, 2018 (1)

(in thousands of USD except as noted)



La

Colorada

Dolores

Alamo

Dorado

Huaron

Morococha

San

Vicente

Manantial

Espejo

Consolidated

Total

Cash Costs before by-product credits

A

$

20,448


$

41,872


$


$

25,721


$

18,147


$

15,422


$

22,527


$

144,136


Less gold credit

b1

(1,223)


(36,065)



298


(63)


(7,578)


(44,631)


Less zinc credit

b2

(11,342)



(10,426)


(12,845)


(6,251)



(40,865)


Less lead credit

b3

(4,492)



(3,991)


(2,593)


(179)



(11,255)


Less copper credit

b4



(8,930)


(2,617)


(893)



(12,441)


Sub-total by-product credits

B=( b1+

b2+ b3+

b4)

$

(17,058)


$

(36,065)


$


$

(23,346)


$

(17,757)


$

(7,386)


$

(7,578)


$

(109,192)


Cash Costs net of by-product credits

C=(A+B)

$

3,390


$

5,807


$


$

2,374


$

390


$

8,036


$

14,948


$

34,945












Payable ounces of silver (thousand)

D

1,955


823


841


636


870


586


5,710












Cash cost per ounce net of by-products

C/D

$

1.73


$

7.06


 NA

$

2.82


$

0.61


$

9.23


$

25.53


$

6.12


(1)

Totals may not add due to rounding.

Year ended December 31, 2018(1)

(in thousands of USD except as noted)



La

Colorada

Dolores

Alamo

Dorado

Huaron

Morococha

San

Vicente

Manantial

Espejo

Consolidated

Total

Cash Costs before by-product credits

A

$

81,578


166,048


$


$

96,464


$

75,836


$

56,973


$

87,074


$

563,974


Less gold credit

b1

(4,802)


(173,657)


(3)


(1,673)


(284)


(44,142)


(224,561)


Less zinc credit

b2

(43,777)



(41,422)


(54,392)


(17,573)



(157,164)


Less lead credit

b3

(18,459)



(16,786)


(9,819)


(584)



(45,648)


Less copper credit

b4



(33,193)


(20,658)


(4,868)



(58,719)


Sub-total by-product credits

B=( b1+

b2+ b3+

b4)

$

(67,038)


$

(173,657)


$


$

(91,405)


$

(86,542)


$

(23,309)


$

(44,142)


$

(486,093)


Cash Costs net of by-product credits

C=(A+B)

$

14,541


$

(7,608)


$


$

5,060


$

(10,706)


$

33,664


$

42,932


$

77,883












Payable ounces of silver (thousand)

D

7,196


4,075


3,107


2,467


3,326


3,086


23,258












Cash cost per ounce net of by-products

C/D

$

2.02


$

(1.87)


 NA

$

1.63


$

(4.34)


$

10.12


$

13.91


$

3.35


(1)

Totals may not add due to rounding.

Three months ended December 31, 2017(1)

(in thousands of USD except as noted)



La

Colorada

Dolores

Alamo

Dorado

Huaron

Morococha

San

Vicente

Manantial

Espejo

Consolidated

Total

Cash Costs before by-product credits

A

$

18,708


34,778


$


136

$

26,440


$

20,276


$

15,300


$

29,800


$

145,437


Less gold credit

b1

(1,377)


(39,708)


(90)

(9)


(625)


(79)


(12,704)


(54,592)


Less zinc credit

b2

(11,337)



(12,296)


(12,205)


(3,767)



(39,605)


Less lead credit

b3

(5,232)



(4,758)


(2,361)


(131)



(12,483)


Less copper credit

b4



(7,671)


(9,585)


(1,868)



(19,124)


Sub-total by-product credits

B=( b1+

b2+ b3+

b4)

$

(17,947)


$

(39,708)


$


(90)

$

(24,733)


$

(24,776)


$

(5,845)


$

(12,704)


$

(125,804)


Cash Costs net of by-product credits

C=(A+B)

$

761


$

(4,930)


$


46

$

1,706


$

(4,500)


$

9,455


$

17,095


$

19,633












Payable ounces of silver (thousand)

D

1,777


1,254


22

821


607


1,046


645


6,172












Cash cost per ounce net of by-products

C/D

$

0.43


$

(3.93)


$


2.09

$

2.08


$

(7.42)


$

9.04


$

26.52


$

3.18


(1)

Totals may not add due to rounding.

Year ended December 31, 2017(1)

(in thousands of USD except as noted)



La

Colorada

Dolores

Alamo

Dorado

Huaron

Morococha

San

Vicente

Manantial

Espejo

Consolidated

Total

Cash Costs before by-product credits

A

$

75,407


122,532


$


12,666

$

101,588


$

76,085


$

55,286


$

113,726


$

557,291


 Less gold credit

b1

(4,477)


(129,503)


(2,498)

(148)


(2,639)


(305)


(56,842)


(196,411)


 Less zinc credit

b2

(37,967)



(46,080)


(39,402)


(10,522)



(133,972)


 Less lead credit

b3

(18,994)



(19,039)


(7,573)


(672)



(46,278)


 Less copper credit

b4



(46)

(32,059)


(38,315)


(3,533)



(73,952)


Sub-total by-product credits

B=( b1+

b2+ b3+

b4)

$

(61,438)


$

(129,503)


$


(2,544)

$

(97,327)


$

(87,929)


$

(15,032)


$

(56,842)


$

(450,614)


Cash Costs net of by-product credits

C=(A+B)

$

13,970


$

(6,971)


$


10,123

$

4,261


$

(11,844)


$

40,254


$

56,884


$

106,677












Payable ounces of silver (thousand)

D

6,709


4,225


614

3,164


2,219


3,396


3,117


23,444












Cash cost per ounce net of by-products

C/D

$

2.08


$

(1.65)


$


16.49

$

1.35


$

(5.34)


$

11.85


$

18.25


$

4.55


(1)

Totals may not add due to rounding.

Adjusted Earnings and Basic Adjusted Earnings Per Share

Adjusted earnings and basic adjusted earnings per share are non-GAAP measures that the Company considers to better reflect normalized earnings as it eliminates 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. Certain items that become applicable in a period may be adjusted for, with the Company retroactively presenting comparable periods with an adjustment for such items and conversely, items no longer applicable may be removed from the calculation. The Company adjusts certain items in the periods that they occurred but does not reverse or otherwise unwind the effect of such items in future periods. Neither adjusted earnings nor basic adjusted earnings per share have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other companies.

The following table shows a reconciliation of adjusted loss and earnings for the year and three months ended December 31, 2018 and 2017, to the net earnings for each period.



Three Months Ended

December 31,


Year ended

December 31,

(In thousands of USD, except as noted)


2018



2017



2018



2017


Net (loss) earnings for the period


$

(63,577)



$

49,664



$

12,041



$

123,451


Adjust for:









Loss (gain) on derivatives


60



(64)



1,078



(64)


Impairment charges (reversals)


27,789



(61,554)



27,789



(61,554)


Write-down of project development costs








1,898


Unrealized foreign exchange (gains) losses


(348)



362



10,337



(383)


Net realizable value adjustments to heap inventory


12,977



4,936



24,082



10,060


Unrealized losses (gains) on commodity and foreign currency contracts


765



2,190



(2,481)



(909)


Mine operation severance costs








3,509


Share of loss (income) from associate and dilution gain


182



(259)



(13,679)



(2,052)


Reversal of previously accrued tax liabilities






(1,188)



(2,793)


Metal inventory loss


4,670





4,670




Transaction costs


10,229





10,229




Losses (gains) on sale of mineral properties, plant and equipment


56



794



(7,973)



(191)


Closure and decommissioning liability adjustment


2,832



4,515



2,832



8,388


Adjust for effect of taxes relating to the above


$

(5,832)



$

6,046



$

(9,914)



$

2,273


Adjust for effect of foreign exchange on taxes


8,175



12,589



1,611



(3,928)


Adjusted (loss) earnings for the period


$

(2,022)



$

19,219



$

59,434



$

77,705


Weighted average shares for the period


153,352



153,207



153,315



153,070


Adjusted (loss) earnings per share for the period


$

(0.01)



$

0.13



$

0.39



$

0.51


 

INDIVIDUAL MINE OPERATION HIGHLIGHTS

Mexico - La Colorada mine


Three months ended

December 31,

Year ended

December 31,


2018


2017


2018


2017


Tonnes milled - kt

187.4


170.7


726.0


655.3


Average silver grade – grams per tonne

375


374


358


368


Average zinc grade - %

3.10


2.88


2.83


2.81


Average lead grade - %

1.50


1.54


1.40


1.54


Average silver recovery - %

91.7


91.1


91.2


91.1


Average zinc recovery - %

87.5


84.1


86.5


83.7


Average lead recovery - %

86.8


86.2


87.2


86.9


Production:





 Silver – koz

2,074


1,870


7,617


7,056


 Gold – koz

1.16


1.26


4.40


4.29


 Zinc – kt

5.09


4.14


17.79


15.44


 Lead – kt

2.44


2.26


8.84


8.80







Cash cost per ounce net of by-products

$

1.73


$

0.43


$

2.02


$

2.08


AISCSOS

$

5.93


$

2.81


$

4.63


$

4.44


Payable silver sold - koz

1,780


1,847


7,069


6,853


Sustaining capital -  ('000s)

$

5,364


$

2,576


$

15,462


$

13,970


 

Mexico - Dolores mine


Three months ended

December 31,

Year ended

December 31,


2018


2017


2018


2017


Tonnes placed - kt

1,818.5


1,785.1


6,903.3


6,604.9


Average silver grade – grams per tonne

25


39


31


38


Average gold grade – grams per tonne

0.68


0.76


0.85


0.66


Average silver produced to placed ratio - %

55.6


55.5


59.2


51.7


Average gold produced to placed ratio - %

73.4


71.8


72.2


70.7


Production:





 Silver – koz

824


1,256


4,081


4,232


 Gold – koz

29.4


31.2


136.6


103.0


Cash cost per ounce net of by-products

7.06


(3.93)


(1.87)


(1.65)


AISCSOS

35.36


13.62


16.36


10.00


Payable silver sold - koz

870


1,225


4,205


4,089


Sustaining capital -  ('000s)

$

13,255


$

13,303


$

48,842


$

36,071















 

Peru- Huaron mine


Three months ended

December 31,

Year ended

December 31,


2018


2017


2018


2017


Tonnes milled - kt

252.0


231.5


935.0


928.1


Average silver grade – grams per tonne

142


152


142


146


Average zinc grade - %

2.49


2.58


2.44


2.70


Average lead grade - %

1.22


1.15


1.18


1.23


Average copper grade - %

0.78


0.70


0.76


0.84


Average silver recovery - %

83.0


84.1


82.7


85.2


Average zinc recovery - %

76.4


77.8


76.0


77.6


Average lead recovery - %

70.4


76.6


73.2


77.7


Average copper recovery - %

77.6


74.5


76.9


78.5


Production:





Silver – koz

965


951


3,561


3,684


Gold – koz

0.22


0.19


0.79


1.15


Zinc – kt

4.82


4.64


17.38


19.37


Lead – kt

2.16


2.03


8.05


8.77


Copper – kt

1.52


1.21


5.44


6.09


Cash cost per ounce net of by-products

$

2.82


$

2.08


$

1.63


$

1.35


AISCSOS

$

9.21


$

7.00


$

7.73


$

5.25


Payable silver sold – koz

858


813


3,094


3,181


Sustaining capital - ('000s)

$

5,653


$

3,548


$

17,109


$

10,267


 

Peru - Morococha mine(1)


Three months ended

December 31,

Year ended

December 31,


2018


2017


2018


2017


Tonnes milled – kt

163.0


170.6


672.0


676.9


Average silver grade – grams per tonne

154


145


149


137


Average zinc grade  - %

4.02


3.25


3.80


3.01


Average lead grade  - %

1.09


0.84


0.92


0.78


Average copper grade  - %

0.44


1.07


0.66


1.20


Average silver recovery - %

91.9


91.0


90.7


89.2


Average zinc recovery - %

88.4


81.2


87.4


79.6


Average lead recovery - %

78.7


71.0


76.5


66.6


Average copper recovery - %

63.1


83.4


75.7


83.9


Production:





Silver – koz

740


721


2,881


2,634


Gold – koz

0.19


0.82


2.09


3.53


Zinc – kt

5.78


4.49


22.17


16.13


Lead – kt

1.40


1.00


4.69


3.46


Copper – kt

0.45


1.49


3.30


6.64


Cash cost per ounce net of by-products

$

0.61


$

(7.42)


$

(4.34)


$

(5.34)


AISCSOS

$

4.24


$

(1.54)


$

1.52


$

1.22


Payable silver sold (100%) - koz

674


658


2,652


2,448


Sustaining capital (100%) -  ('000s)

$

3,039


$

3,162


$

14,840


$

12,428


(1)

Production figures are for Pan American's 92.3% share only, unless otherwise noted.

 

Bolivia - San Vicente mine(1)


Three months ended

December 31,

Year ended

December 31,


2018


2017


2018


2017


Tonnes milled – kt

88.3


89.5


332.9


328.1


Average silver grade – grams per tonne

372


406


362


374


Average zinc grade - %

3.66


2.01


2.77


1.94


Average lead grade - %

0.32


0.25


0.34


0.29


Average silver recovery - %

90.7


93.9


92.7


92.6


Average zinc recovery - %

88.2


77.7


81.5


68.7


Average lead recovery - %

78.5


79.1


64.8


80.1


Production:





 Silver – koz

937


1,102


3,544


3,610


 Gold – koz

0.12


0.14


0.50


0.51


 Zinc – kt

2.82


1.40


7.47


4.36


 Lead – kt

0.26


0.11


0.78


0.47


 Copper – kt

0.22


0.33


1.02


0.63


Cash cost per ounce net of by-products

$

9.23


$

9.04


$

10.12


$

11.85


AISCSOS

$

13.57


$

12.31


$

12.19


$

14.40


Payable silver sold (100%) - koz

502


1,218


3,054


3,603


Sustaining capital (100%) -  ('000s)

$

1,628


$

1,939


$

6,949


$

8,146


(1)

Production figures are for Pan American's 95.0% share only, unless otherwise noted.

 

Argentina - Manantial Espejo mine


Three months ended

December 31,

Year ended

December 31,


2018


2017


2018


2017


Tonnes milled - kt

198.5


205.1


804.4


793.5


Average silver grade – grams per tonne

95


107


135


134


Average gold grade – grams per tonne

0.98


1.62


1.42


1.88


Average silver recovery - %

90.0


89.7


88.0


90.6


Average gold recovery - %

93.1


93.5


93.4


93.8


Production:





Silver – koz

587


646


3,092


3,123


Gold – koz

6.19


9.98


34.55


45.34


Cash cost per ounce net of by-products

$

25.53


$

26.52


$

13.91


$

18.25


AISCSOS

$

27.94


$

28.63


$

16.83


$

23.42


Payable silver sold - koz

615


766


3,086


3,171


Sustaining capital -  ('000s)

$

436


$

1,045


$

2,827


$

3,333


 

View original content:http://www.prnewswire.com/news-releases/pan-american-silver-reports-unaudited-2018-annual-and-fourth-quarter-results-300799302.html

SOURCE Pan American Silver Corp.



Contact
Siren Fisekci, VP, Investor Relations & Corporate Communications, Ph: 604-806-3191, Email: ir@panamericansilver.com
Bewerten 
A A A
PDF Versenden Drucken

Für den Inhalt des Beitrages ist allein der Autor verantwortlich bzw. die aufgeführte Quelle. Bild- oder Filmrechte liegen beim Autor/Quelle bzw. bei der vom ihm benannten Quelle. Bei Übersetzungen können Fehler nicht ausgeschlossen werden. Der vertretene Standpunkt eines Autors spiegelt generell nicht die Meinung des Webseiten-Betreibers wieder. Mittels der Veröffentlichung will dieser lediglich ein pluralistisches Meinungsbild darstellen. Direkte oder indirekte Aussagen in einem Beitrag stellen keinerlei Aufforderung zum Kauf-/Verkauf von Wertpapieren dar. Wir wehren uns gegen jede Form von Hass, Diskriminierung und Verletzung der Menschenwürde. Beachten Sie bitte auch unsere AGB/Disclaimer!




Mineninfo
Pan American Silver Corp.
Bergbau
876617
CA6979001089
Minenprofile
Alle Angaben ohne Gewähr! Copyright © by GoldSeiten.de 1999-2024.
Die Reproduktion, Modifikation oder Verwendung der Inhalte ganz oder teilweise ohne schriftliche Genehmigung ist untersagt!

"Wir weisen Sie ausdrücklich auf unser virtuelles Hausrecht hin!"