Pan American Silver ups production of all metals, net income slides in third quarter

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(Kitco News) - Pan American Silver (NASDAQ: PAAS) (TSX: PAAS) today reported that in Q3 2021, the company's consolidated silver production was 4.8 million ounces, an increase of 17% compared to Q3 2020.

The company also produced 142.6 thousand ounces of gold in Q3 2021, up 22% from Q3 2020. In addition, the company produced 12.7 thousand tonnes of zinc (Q3 2020: 8.6 thousand tonnes), 4.2 thousand tonnes of lead (Q3 2020: 3.4 thousand tonnes), and 2.1 thousand tonnes of copper (Q3 2020: 0.7 thousand tonnes).

The company said that it generated record quarterly revenue of $460.3 million and operating cash flow of $157.0 million in Q3 2021.

However, PAAS added that its Q3 2021 net income of $20.2 million ($0.10 basic income per share) was down compared to Q3 2020 ($65.3 million), impacted by a non-cash mark-to-market loss on investment interests of $25.3 million and an income tax expense of $50.4 million.

Net cash generated from operations was $157.0 million and includes $23.0 million source of cash from working capital changes, the company noted.

Importantly, PAAS said that its Board of Directors has approved a cash dividend of $0.10 per common share, or approximately $21.0 million in aggregate cash dividends, payable on or about December 3, 2021, to holders of record of Pan American's common shares as of the close on November 22, 2021.

The company also pointed out that it has revised its 2021 guidance and said that its full-year consolidated precious metals production is now estimated to be between 19.0 and 20.0 million ounces of silver (previous guidance: between 20.5 and 22.0 million ounces) and 560.0 to 588.0 thousand ounces of gold (previous guidance: between 605.0 and 655.1 thousand ounces).

The estimated ranges for Silver Segment Cash Costs and AISC have increased to $11.60 to $12.50 and $15.75 to $16.75, respectively. The company added it has maintained its guidance for Gold Segment Cash Costs and AISC.

Pan American owns and operates silver and gold mines located in Mexico, Peru, Canada, Argentina and Bolivia.

By Vladimir Basov

For Kitco News

Follow kitconewsnow vbasov@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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