VANCOUVER, Aug. 7, 2019
/CNW/ - Pan American Silver Corp. (NASDAQ: PAAS) (TSX:
PAAS) today reported unaudited results for the second quarter ended
June 30, 2019 ("Q2 2019"). Pan American's unaudited condensed
interim consolidated financial statements and notes ("financial
statements"), as well as Pan American's Management's Discussion and
Analysis ("MD&A") for the three and six months ended
June 30, 2019, are available on Pan American's website
at panamericansilver.com and on SEDAR
at www.sedar.com.
Pan American's Q2 2019 results include the performance of the
mines acquired (the "Acquired Mines") from Tahoe Resources
Inc. ("Tahoe"), following the completion of that transaction on
February 22, 2019 (the "Completion
Date"). The Bell Creek and Timmins
mines (together, "Timmins") acquired from Tahoe remain classified
as assets held for sale and discontinued operations, and thus are
not included in Pan American's revenue or mine operating earnings
for Q2 2019.
"We delivered strong operating performance in Q2, resulting in
cash flow from operations of $83.5
million," said Michael
Steinmann, President and Chief Executive Officer. "The
integration of the Tahoe assets is progressing well, and the
associated transaction costs are now substantially behind us.
Combined with the recent strengthening in precious metal prices and
an outlook for lower costs, we should see operating margins improve
over the remainder of the year."
Consolidated Q2 2019 Highlights:
- Net income of $18.5 million,
equivalent to $0.09 basic earnings
per share.
- Adjusted income of $9.0 million,
equivalent to $0.04 basic adjusted
income per share.
- Revenue of $282.9 million
(excluding $57.5 million of revenue
from the Timmins mines).
- Net cash generated from operations of $83.5 million.
- Silver production of 6.5 million ounces and gold production of
154.6 thousand ounces.
- Zinc, lead and copper production of 17.4 thousand tonnes, 6.8
thousand tonnes, and 2.1 thousand tonnes, respectively.
- Silver Segment Cash Costs and All-in Sustaining Costs ("AISC")
were $6.67 and $10.67 per silver ounce sold, respectively, and
relate to the Company's operations other than the Acquired
Mines.
- Gold Segment Cash Costs and AISC were $700 and $980 per
gold ounce sold, respectively, and relate to the Acquired
Mines.
- Consolidated Cash Costs and AISC were ($4.19) and $6.12
per silver ounce sold, respectively, which include by-product
credits from the Acquired Mines' gold production.
- Guidance for 2019 annual Cash Costs and AISC on a consolidated
silver basis has been reduced to between ($3.30) and ($1.80)
per ounce and between $7.00 and
$9.00 per ounce, respectively.
- Guidance for 2019 annual consolidated silver and gold
production has been slightly reduced to between 25.3 and 26.3
million ounces and between 550.0 and 600.0 thousand ounces,
respectively, primarily due to postponement of commercial
production from the COSE and Joaquin projects by about three
months. The revision is not expected to have a significant adverse
impact on 2019 financial results.
- Guidance for project capital expenditures has been slightly
increased to $45 million, primarily
as a result of the delay in development of the COSE and Joaquin
projects.
- At June 30, 2019, the Company had
a cash and short-term investment balance of $138.8 million and working capital of
$793.1 million. Total debt was
$378.8 million (including
$43.8 million of lease
liabilities).
- Drilling at the La Colorada
mine has further defined the skarn mineralization, indicating a
high concentration of base metal and silver mineralization over
large widths, as reported in Pan American's news release dated
August 1, 2019.
- The Board of Directors has approved a cash dividend of
$0.035 per common share, or
approximately $7.3 million in
aggregate cash dividends, payable on or about August 30, 2019, to holders of record of Pan
American's common shares as of the close on August 19, 2019. 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.
Cash Costs, AISC, adjusted earnings, basic adjusted earnings per
share, working capital and total debt 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 FINANCIAL RESULTS
|
|
June 30,
2019
|
December 31,
2018
|
Weighted average
shares during period (millions)
|
|
209.5
|
153.3
|
Shares outstanding
end of period (millions)
|
|
209.5
|
153.4
|
|
|
|
|
|
|
Three months
ended
June 30,
|
|
|
2019
|
2018
|
|
|
|
|
Revenue
|
|
$282,948
|
$216,460
|
Mine operating
earnings
|
|
$36,140
|
$54,851
|
Net
earnings
|
|
$18,499
|
$36,696
|
Basic earnings
per share (1)
|
|
$0.09
|
$0.24
|
Adjusted earnings
(2)
|
|
$9,037
|
$35,427
|
Basic adjusted
earnings per share (1)
|
|
$0.04
|
$0.23
|
Net cash generated
from operating activities
|
|
$83,518
|
$66,949
|
Net cash generated
from operating activities before changes in working capital
(2)
|
|
$63,378
|
$59,177
|
Sustaining capital
expenditures
|
|
$55,911
|
$25,000
|
Project capital
expenditures
|
|
$13,455
|
$12,675
|
Cash dividend per
share
|
|
$0.035
|
$0.035
|
|
|
|
|
Average realized
prices
|
|
|
|
Silver ($/ounce)
(3)
|
|
14.90
|
16.40
|
Gold ($/ounce)
(3)
|
|
1,314
|
1,304
|
Zinc ($/tonne)
(3)
|
|
2,783
|
3,045
|
Lead ($/tonne)
(3)
|
|
1,875
|
2,378
|
Copper ($/tonne)
(3)
|
|
6,100
|
6,840
|
|
|
|
|
(1)
|
Per share amounts are
based on basic weighted average common shares.
|
(2)
|
Non- GAAP measures:
adjusted earnings, basic adjusted earnings per share, 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.
|
OPERATING PERFORMANCE
Silver and Gold Production
The following table
provides silver and gold production at each of Pan American's
operations for Q2 2019 and Q2 2018:
|
|
|
|
|
|
|
|
Three months
ended
June 30,
|
Three months
ended
June 30,
|
|
|
2019
|
2018
|
2019
|
2018
|
Silver
Segment:
|
|
|
|
|
|
La
Colorada
|
|
2,045
|
1,873
|
1.1
|
1.1
|
Dolores
|
|
1,226
|
1,088
|
28.5
|
39.8
|
Huaron
|
|
948
|
742
|
0.2
|
0.1
|
Morococha(1)
|
|
615
|
652
|
0.3
|
0.7
|
San
Vicente(2)
|
|
940
|
976
|
0.1
|
0.1
|
Manantial
Espejo
|
|
652
|
962
|
5.4
|
11.6
|
Gold
Segment:
|
|
|
|
|
|
La Arena
|
|
6
|
—
|
28.4
|
—
|
Shahuindo
|
|
35
|
—
|
46.8
|
—
|
Assets held for
sale:
|
|
|
|
|
|
Timmins(3)
|
|
5
|
—
|
43.8
|
—
|
Total(4)
|
|
6,474
|
6,294
|
154.6
|
53.4
|
|
|
(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)
|
Reflects production
results subsequent to the February 22, 2019 closing date of the
Acquisition as described in the "Acquisition of Tahoe" section of
the MD&A for the period ended June 30, 2019. The Timmins mines
are classified as assets held for sale in the Company's Q2 2019
Financial Statements, as described in the Note 4 of the Company's
Q2 2019 Financial Statements, and in the "Acquisition of Tahoe"
section of the MD&A for the period ended June 30,
2019.
|
(4)
|
Totals may not add
due to rounding.
|
Base Metal Production
The following table provides
consolidated base metal production at Pan American Silver's
operations for Q2 2019 and Q2 2018:
|
Base Metal
Production (tonnes '000s)
|
|
Three months
ended
June 30,
|
|
2019
|
2018
|
Zinc
|
17.4
|
14.9
|
Lead
|
6.8
|
5.1
|
Copper
|
2.1
|
2.0
|
Cash Costs and AISC
The following table reflects the
Cash Costs and AISC, net of by-product credits, at each of Pan
American's operations for Q2 2019 compared with Q2 2018:
|
Cash
Costs(1)
($ per
ounce)
|
AISC(1)
($ per
ounce)
|
Three months
ended
June 30,
|
Three months
ended
June 30,
|
2019
|
2018(2)
|
2019
|
2018(3)
|
La
Colorada
|
2.82
|
1.13
|
5.07
|
3.46
|
Dolores
|
6.87
|
(6.70)
|
22.30
|
1.18
|
Huaron
|
1.64
|
2.27
|
4.45
|
7.88
|
Morococha
|
3.69
|
(6.19)
|
10.47
|
0.57
|
San
Vicente
|
10.18
|
10.69
|
10.60
|
13.16
|
Manantial
Espejo
|
18.35
|
9.46
|
14.01
|
7.08
|
Silver Segment
Consolidated
|
6.67
|
1.84
|
10.67
|
5.33
|
Shahuindo
|
546
|
—
|
719
|
—
|
La Arena
|
652
|
—
|
1,441
|
—
|
Timmins(4)
|
884
|
—
|
946
|
—
|
Gold Segment
Consolidated(5)
|
700
|
—
|
980
|
—
|
Consolidated
metrics per silver ounce sold(6):
|
|
|
|
|
All
Operations
|
(4.19)
|
1.84
|
6.12
|
6.50
|
All Operations
before NRV inventory adjustments
|
(4.19)
|
1.84
|
6.46
|
7.72
|
|
|
(1)
|
Cash Costs and AISC
are non-GAAP measures. Please refer to the section "Alternative
Performance (Non-GAAP) Measures" of the MD&A for the period
ended June 30, 2019 for a detailed description of these measures
and where appropriate a reconciliation of the measures to the Q2
2019 Financial Statements.
|
(2)
|
Silver Segment Cash
Costs and AISC are calculated net of credits for realized revenues
from all metals other than silver ("by-product credits"), divided
by per ounce of silver sold. Cash Costs are therefore different
from previously reported Q2 2018 "Cash Costs", which were
calculated based on Cash Costs net of by-product credits divided by
payable silver ounces produced. The Q2 2018 Cash Costs per
ounce sold included in the table above have been calculated and
presented as comparative amounts to conform to the methodology used
by the Company to calculate the Q2 2019 Cash Costs per ounce
sold.
|
(3)
|
2018 AISC per ounce
sold in the table above have been calculated and presented as
comparative amounts to conform to the methodology used by the
Company to calculate the 2019 AISC per ounce sold. The change in
methodology relates to the sustaining capital calculation to
account for the adoption of IFRS 16, with sustaining capital now
including lease payments. Previously, leased assets were included
as sustaining capital in the period of acquisition, while future
related lease payments were excluded.
|
(4)
|
The Timmins mines are
classified as assets held for sale in the Company's Q2 2019
Financial Statements, as described in the Note 4 of the Company's
Q2 2019 Financial Statements, and in the "Acquisition of Tahoe"
section of the MD&A for the period ended June 30,
2019.
|
(5)
|
Gold Segment Cash
Costs and AISC are calculated net of credits for realized silver
revenues divided by per ounce of gold sold.
|
(6)
|
Calculated per silver
ounce sold with gold revenues included within by-product credits.
G&A costs are included in the consolidated AISC, but are not
allocated in calculating AISC for each operation.
|
2019 GUIDANCE
The following tables provides our
guidance for 2019, revised as at August 7,
2019. Relative to the guidance provided on May 8, 2019, management has reduced the estimate
for consolidated Cash Costs and AISC to between ($3.30) and ($1.80)
per ounce and between $7.00 and
$9.00 per ounce, respectively,
reflecting actual Cash Costs and AISC for the six months ended
June 30, 2019 ("H1 2019"), a higher
gold price assumption and the expected results for the remainder of
2019.
Management has also revised its guidance for consolidated silver
production slightly to between 25.3 to 26.3 million ounces and gold
production to between 550.0 and 600.0 thousand ounces, reflecting
the postponement of commercial production from the COSE and Joaquin
projects by about three months, mine scheduling adjustments at
Morococha and better than expected performance at Shahuindo during
H1 2019. The production in 2019 reflects a full year of production
for the Silver Segment mines and from February 22, 2019, to December 31, 2019, for the Gold Segment
mines.
These estimates are forward-looking statements and information
that are subject to the cautionary note associated with
forward-looking statements and information at the end of this news
release.
|
Silver
Production
(million ounces)
|
Gold
Production
(thousand
ounces)
|
Cash
Costs
($ per
ounce)(1)
|
AISC ($ per
ounce)(1)
|
Silver
Segment
|
|
|
|
|
La
Colorada
|
8.0 - 8.2
|
4.1 - 4.8
|
2.50 -
3.50
|
3.50 -
4.50
|
Dolores
|
5.2 - 5.5
|
114.5 -
120.0
|
2.80 -
3.40
|
15.00 -
17.00
|
Huaron
|
3.6 - 3.7
|
0.5
|
6.00 -
7.00
|
7.50 -
9.25
|
Morococha
(92.3%)(2)
|
2.5 - 2.6
|
1.2 - 1.5
|
3.10 -
4.00
|
7.00 -
9.00
|
San Vicente
(95.0%)(3)
|
3.5 - 3.7
|
0.3
|
10.60 -
11.50
|
12.25 -
13.50
|
Manantial
Espejo/COSE/Joaquin
|
2.4 - 2.5
|
20.0 -
25.0
|
21.70 -
22.60
|
22.00 -
24.00
|
Total(4)
|
25.2 -
26.2
|
140.5 -
152.5
|
6.50 -
7.50
|
9.75 -
11.25
|
Gold
Segment:
|
|
|
|
|
Shahuindo
|
0.1
|
137.0 -
165.0
|
550 - 625
|
875 -
1,000
|
La Arena
|
—
|
117.5 -
122.5
|
800 - 850
|
1,275 -
1,325
|
Timmins(5)
|
—
|
155.0 -
160.0
|
890 - 940
|
1,025 -
1,075
|
Total(4)
|
0.1
|
409.5 -
447.5
|
740 -
810
|
1,025 -
1,125
|
Total
Production(6)
|
25.3 -
26.3
|
550.0 -
600.0
|
—
|
—
|
Consolidated
Silver Basis(4)
|
—
|
—
|
(3.30) -
(1.80)
|
7.00 -
9.00
|
|
|
(1)
|
Cash Costs and AISC
are non-GAAP measures. Please refer to the section "Alternative
Performance (Non-GAAP) Measures" of the MD&A for the period
ended June 30, 2019, for a detailed description of these measures
and where appropriate a reconciliation of the measure to the Q2
2019 Financial Statements. The Cash Costs and AISC forecasts assume
realized metal prices for H1 2019 and the following metal prices
for the remainder of 2019 of $15.00/oz for silver, $2,400/tonne
($1.09/lb) for zinc, $1,950/tonne ($0.88/lb) for lead, $6,000/tonne
($2.72/lb) for copper, and $1,375/oz for gold; and average annual
exchange rates relative to 1 USD of 19.50 for the Mexican peso
("MXN"), 3.33 of the Peruvian sol ("PEN"), 41.80 for the Argentine
peso ("ARS"), 6.91 for the Bolivian boliviano ("BOL"), and $1.30
for the Canadian dollar ("CAD").
|
(2)
|
Morococha data
represents Pan American's 92.3% interest in the mine's
production.
|
(3)
|
San Vicente data
represents Pan American's 95.0% interest in the mine's
production.
|
(4)
|
As shown in the
detailed quantification of consolidated AISC, included in the
"Alternative Performance (Non-GAAP) Measures" section of the
MD&A for the period ended June 30, 2019, corporate G&A
costs, and exploration and project development expense are included
in Consolidated Silver Basis AISC, but are not allocated in
calculating AISC for each operation.
|
(5)
|
The Timmins mines are
classified as assets held for sale in the Company's Q2 2019
Financial Statements, as described in Note 4 of the Company's Q2
2019 Financial Statements, and in the "Acquisition of Tahoe"
section of the MD&A for the period ended June 30, 2019. The
gold production from the Timmins operations is included in the
consolidated guidance, pending resolution from the sale
process.
|
(6)
|
Totals may not add
due to rounding.
|
Management's guidance for zinc, lead and copper production
remains unchanged, as provided in the following table.
|
Consolidated Base
Metal Production
|
|
(tonnes
'000s)
|
Zinc
|
65.0 -
67.0
|
Lead
|
24.0 -
25.0
|
Copper
|
9.8 - 10.3
|
Capital Expenditures
The following table summarizes
the capital expenditures for H1 2019 and the revised guidance for
2019. The guidance for project capital has increased to
$45 million from $40 million, as a result of the delayed
development of the COSE and Joaquin projects.
(in millions of
USD)
|
H1 2019
Actual
|
Revised 2019
Guidance
|
La
Colorada
|
5.8
|
6.5 – 7.0
|
Dolores
|
28.0
|
53.0 –
54.0
|
Huaron
|
5.4
|
6.5 – 7.5
|
Morococha
|
5.6
|
11.0 –
12.0
|
San
Vicente
|
1.4
|
6.5 – 7.5
|
Manantial
Espejo
|
1.4
|
1.5 – 2.0
|
Shahuindo
|
7.1
|
47.5 -
49.0
|
La Arena
|
31.9
|
54.0 -
56.0
|
Timmins(1)
|
4.0
|
16.5 -
18.0
|
Sustaining Capital
Sub-total(1)
|
90.6
|
203.0 -
213.0
|
Morococha
projects
|
0.7
|
2.5
|
Mexico
projects
|
4.8
|
7.5
|
Joaquin and COSE
projects
|
12.9
|
25.0
|
Acquired Mines
projects(1)
|
5.0
|
10.0
|
Project Capital
Sub-total(1)
|
23.4
|
45.0
|
Total
Capital
|
114.0
|
248.0 -
258.0
|
|
|
(1)
|
The Timmins mines are
classified as assets held for sale in the Company's Q2 2019
Financial Statements, as described in Note 4 of the Company's Q2
2019 Financial Statements, and in the "Acquisition of Tahoe"
section of the MD&A for the period ended June 30, 2019. The
capital expenditures for the Timmins' operations are included in
the consolidated guidance pending resolution from the sale
process.
|
Second Quarter 2019 Unaudited Results Conference Call and
Webcast
Date:
|
August 8,
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:
|
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 panamericansilver.com.
An archive of the webcast will also be available for three
months.
About Pan American Silver
Pan American Silver 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 mines in Mexico, Peru,
Canada, Argentina and Bolivia. In addition, we own the Escobal mine
in Guatemala that is currently not
operating. In 2019, we celebrate our silver anniversary: 25 years
of operating in Latin America,
earning an industry-leading reputation for operational excellence
and corporate social responsibility. 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 Processing 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 ("NI
43-101").
For more detailed information regarding the Company's material
mineral properties as at December 31,
2018, and technical information related thereto, including a
complete list of current technical reports applicable to such
properties, please refer to the Company's Annual Information Form
dated March 12, 2019, filed at
www.sedar.com or the Company'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. 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 and basic adjusted earnings 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 or gold ounce sold, net of
by-product credits ("AISC"). The Company has adopted AISC 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.
- 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. The Company and
certain investors use this information to evaluate the financial
debt leverage of the Company.
- 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. The Company and
certain investors use this information to evaluate whether the
Company is able to meet its current obligations using its current
assets.
Readers should refer to the "Alternative Performance (non-GAAP)
Measures" section of the Company's Management's Discussion and
Analysis for the period ended June 30, 2019, 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,
including our estimated production of silver, gold and other metals
in 2019, our estimated Cash Costs and AISC in 2019, and our
expectations with respect to operating margins and 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; the ability of the Company to
successfully put COSE and Joaquin mines into production and the
timing thereof; the future results of exploration activities,
including with respect to the skarn exploration program at
La Colorada, and the timing of any
subsequent disclosure on such results; our growth profile and
opportunities as results of the acquisition of Tahoe; and our
ability to successfully integrate Tahoe's operations and realize
synergies and cost savings.
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: our
ability to realize the anticipated benefits and opportunities as a
result of the acquisition of Tahoe; 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; 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.
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 PEN, MXN, ARS, BOL, 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 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; 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 the Company
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 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.
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SOURCE Pan American Silver Corp.