Proactiveinvestors USA & Canada Pan American Silver Corp. Proactiveinvestors USA & Canada Pan American Silver Corp. RSS feed en Wed, 19 Jun 2019 02:10:18 -0400 Genera CMS (Proactiveinvestors) (Proactiveinvestors) <![CDATA[News - Pan American Silver misses on 3Q earnings and revenue; says on track for production guidance ]]> Pan American Silver Corp (TSX:PAA) (NASDAQ:PAAS) reported a miss on third-quarter earnings and revenue while reiterating it is on track to hit its 2018 production guidance.

The company said EPS came in at a loss of US$0.03, compared with a gain in the same period last year of US$0.15 and the consensus it would rise by US$0.05. Revenue reached US$187.7 million, compared with US$190.79 million a year ago and the consensus of US$198.95 million.

"The depressed metal prices had a significant impact on both settlement adjustments on concentrate shipments and NRV inventory adjustments, which together reduced earnings in the quarter by approximately $33.2 million," said company president and CEO Michael Steinmann.

Shares of Pan American Silver in New York were down 5% to US$14.31. In Canada, the shares were weaker by 4.93% to C$18.89. 

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Pan American Silver is maintaining the guidance provided on August 8, 2018, except for project capital. Estimated project capital in 2018 has been reduced to US$40 million from US$50 million due to timing of expenditures.

For silver, the company is guiding output on November 6 at 25 - 26.5 million ounces, unchanged from its guidance. The guidance for gold production remained steady at 175,000 to 185,000 ounces. 

The guidance for zinc and lead production was also flat at 60,000-62,000 tonnes and 21,000-22,000 tonnes, respectively.

The guidance for copper output was reduced to 9,000 to 10,400 tonnes, from the January forecast of 12,000 to 12,500 tonnes.

Pan American Silver is the world's second-largest primary silver producer. The company owns and operates six mines in Mexico, Peru, Argentina and Bolivia.

The company is based in Vancouver, Canada.

Reporting by Rene Pastor, contactable on

Wed, 07 Nov 2018 10:17:00 -0500
<![CDATA[News - Pan American Silver forms streaming and royalty vehicle ]]> Pan American Silver Corp (NASDAQ:PAAS) and MacMillan Minerals Inc. (CSV:MMX) are to set up a new royalty and streaming company together, Maverix Metals Inc.

Terms of the deal will see Maverix reverse into MacMillan and buy a portfolio of thirteen royalties and precious metal streams from Pan American.

MacMillan will be renamed Maverix Metals Inc. and trade as MMX on the TSX Venture Exchange. After the sale of the streaming portfolio, Pan American will have a 54% majority ownership position (63% fully-diluted) in the combined company.

Geoff Burns, the former CEO of Pan American, will chair the new company and Daniel O'Flaherty become Maverix's chief executive.

Maverix will have C$5.5mln in cash following the transaction and  look for further opportunities in the precious metals sector;

Michael Steinmann, Pan American’s chief executive,  said, "This transaction represents an attractive opportunity for Pan American to unlock value for a group of its assets that have gone largely unrecognized by the market as a number of them are not in production and are widely dispersed in our company.”

Tue, 19 Apr 2016 09:34:00 -0400
<![CDATA[News - Pan American posts wider Q4 loss, but production, costs impress ]]> Pan American Silver Corp. (NASDAQ:PAAS) (TSE:PAA) reported fourth quarter results that seemingly impressed investors Thursday, despite posting a wider net loss and lower revenues amid a challenging environment for precious metals miners.

For the three months that ended December 31, 2013, the gold and silver producer --- with seven operating mines in Mexico, Peru, Argentina and Bolivia --- reported a net loss of $293.1 million, or $1.94 per share, compared to a net loss of $31.5 million, or 18 cents per share, in the prior year period. 

The latest results included a non-cash impairment charge of $218.1 million, net of tax, on the carrying value of its Dolores mine, due to lower assumed long-term metal prices and increased taxes. The figures also included a deferred tax charge of $86 million prompted by the recent tax changes in Mexico.

Revenue declined 22% to $192.4 million as average realized prices for both gold and silver fell sharply. For silver, the price dropped to $20.28 an ounce from $33.41 an ounce, while gold prices shed to $1,285 an ounce from $1,729 an ounce in the fourth quarter of 2012.

The company still generated net cash flow from operating activities of $46.2 million,  or 30 cents per share, reflecting its "excellent fourth quarter production results and continued cost control efforts", Pan American said.

During the fourth quarter, the company produced 6.8 million ounces of silver and a record 46,200 ounces of gold. For the full year, Pan American achieved production records of 26 million ounces of silver and 149,800 ounces of gold, 4% and 33% more than in 2012, respectively.  

The company said the new silver production record was driven by production gains at La Colorada, Huaron, Morococha and San Vicente, partially offset by a decline in silver ounces produced at Alamo Dorado and Manantial Espejo due to lower grades and recoveries. 

Gold production jumped due to production improvements at Dolores and at Manantial Espejo.

All-in sustaining costs per silver ounce sold were $17.03 in the quarter, net of by-product credits, down 33% year-on-year. 

The company, which had cash and short term investments of $422.7 million at year-end, maintained its quarterly dividend of 12.5 cents per share.

In 2014, it said it expects to produce 25.75 to 26.75 million ounces of silver and 155,000 to 165,000 ounces of gold, with all-in sustaining costs of $17.00 to $18.00, net of by-product credits. 

Shares of Pan American were up 5.7% late Thursday afternoon, at C$16.45, stretching year-to-date gains to nearly 33%. 

Thu, 20 Feb 2014 15:42:00 -0500
<![CDATA[News - Pan American Silver posts record annual output of silver, gold ]]> Pan American Silver Corp. (TSE:PAA), the world's fourth-largest silver producer, rose to the highest in nine months after saying it set a new annual silver production record and that gold production beat its guidance.

Pan American shares rose to C$14.85, the highest intraday price since April 12, before trading at C$14.48, up 2.1 percent, at 1:41 p.m. in Toronto.

Pan American produced 6.8 million ounces of silver at its seven operating mines in the fourth quarter, setting a new output record of 26 million silver ounces for 2013, matching the upper-end of its annual guidance. 

The Vancouver-based company also said in a statement today that annual gold production was a record 149,800 ounces, beating its guidance.

Looking ahead, the company projects its seven mines to produce between 25.75 and 26.75 million ounces of silver this year, a modest increase from last year.

Gold production, meanwhile, is expected to increase to between 155,000 ounces and 165,000 ounces on the strength of higher gold grades at Manantial Espejo, the company said.  

Pan American also said it plans to spend $95.5 million on sustaining capital and a further $67.0 million on long term projects.

Pan American will announce its fourth-quarter results on Feb. 20 before market opens.

The company has seven operating mines in Mexico, Peru, Argentina and Bolivia. It also owns several development projects in the U.S., Mexico, Peru and Argentina.

The shares have lost 20 percent over the past twelve months.


Mon, 20 Jan 2014 14:23:00 -0500
<![CDATA[News - Pan American Silver closes hedges of fear of sending wrong message, more optimistic about precious metals ]]> Pan American Silver Corp. (NASDAQ:PAAS) (TSE:PAA) is closing out its outstanding gold and silver hedges after worrying it may have sent shareholders a "wrong message" by the short-term hedging strategy. 

"We decided to put the hedges in place as a short term tactical response, to reduce risk during a time of extreme price volatility," said president and CEO, Geoff Burns, in a statement. "However, our action may have inadvertently sent the wrong message to the market and to our shareholders about our hedging philosophy and our view of the long term prospects for silver and gold.

"We have become more comfortable that we will realize the benefits of our cost reduction initiatives and are considerably more optimistic about the short term prospects for both silver and gold, therefore negating the conditions that initially lead us to enter into the hedges."

It previously announced it had entered forward contracts for 5.3 million ounces of silver and 24,000 ounces of gold, at average prices of $20.43 per ounce of silver and $1,323 per ounce of gold, spread almost equally over a period of 12 months. This would have represented about 20 per cent and 18 per cent of the company's forecasted 12-month silver and gold production, respectively. 

It is now planning to close all of these forward contracts before the end of the year through accelerated physical metal delivery and straight repurchase.

"We need to unequivocally reassure our shareholders that the company's fundamental philosophy is still that of not hedging our precious metal production, thereby providing maximum exposure to the price of silver," said Burns. 

The company has seven operating mines in Mexico, Peru, Argentina and Bolivia and also owns several development projects in the U.S., Mexico, Peru and Argentina.

Shares of Pan American were down 2.4 per cent within moments of market close on Tuesday, at $12.00. Its stock has fallen more than 35 per cent so far this year. 

Tue, 10 Sep 2013 16:05:00 -0400
<![CDATA[News - Pan American silver output rises to record on Dolores mine acquisition ]]>

Shares of Pan American Silver Corp. (NASDAQ: PAAS) (TSE: PAA) moved up by more than 3% on Tuesday, after the company said it produced a record amount of silver in the fourth quarter and forecasted growth in output for 2013, largely a result of the Dolores Mine acquisition last year.

Pan American bought Minefinders Corp, which owned the Dolores mine in Mexico, for about C$1.5 billion in 2012. 

The precious metals producer said today silver output in the latest period was 6.9 million ounces, 30% higher than a year ago, propelling the company to a new annual record of 25.1 million ounces of silver for the year. The yearly total is 15% more than the company produced in 2011.

It also said it produced a record 32,381 ounces of gold in the fourth quarter - an increase of 88% from a year ago - also lifting its gold output last year to an all-time high of 112,283 ounces. 

Total cash costs for the quarter were estimated at $11.75 per ounce of silver, net of by-product credits, and at $12.03 per ounce for the full year 2012. 

"2012 was an excellent production year for Pan American," said president and CEO Geoff Burns, in a statement Tuesday.

"We achieved our targets for silver production and cash costs during the fourth quarter and for the full year, and in the process we set new quarterly and annual production records for silver and gold.  

"In large part this was the result of the acquisition and integration of the Dolores mine.  However, we also saw both our La Colorada and San Vicente mines establish new annual silver production records."

Burns said further that the company expects 2013 to be "even better", as it is forecasting increases in both silver and gold production, while cash costs per ounce remain basically unchanged. 

Indeed, this year, Pan American expects to produce 25 to 26 million ounces of silver, an increase of up to one million ounces from 2012, while gold production is expected to climb to up to 34% to between 140,000 and 150,000 ounces.

Cash costs are forecast at $11.80 to $12.80 per ounce of silver for 2013, net of by-product credits.

Capital investments this year are expected to total $157 million, including around $68 million for its Dolores mine, where several major projects are planned, Pan American said. 

The silver producer has seven operating mines in Mexico, Peru, Argentina and Bolivia, including the recently acquired Dolores gold/silver mine in Chihuahua, Mexico.  

It also owns the La Virginia development project in Sonora, Mexico, the Waterloo silver project in California, USA as well as both the Navidad silver project and Calcatreu gold project in Argentina.

Shares in the company gained 56 cents to $18.92 in early afternoon trade in Toronto.

Tue, 22 Jan 2013 13:00:00 -0500
<![CDATA[News - Pan American Silver posts Q4 profit, raises dividend ]]> Pan American Silver (TSE:PAA)(NASDAQ:PAAS) Thursday posted a fourth-quarter net profit, helped by higher metal prices, as it raised its quarterly dividend by 50 percent.

For the fourth quarter, net income was $95.5 million, or 89 cents a share, compared with a net loss of $5.8 million, or 12 cents a share, a year ago.

On an adjusted basis, it earned 61 cents a share.

Sales for the company, which in January said it will buy Minefinders (TSE:MFL) for about $1.5 billion in order to more than double production by 2015, rose nine percent to $212.4 million.

Pan American Silver's executive vice president, geology and exploration Michael Steinmann said: "2011 was another exceptional year for our brownfield exploration programs, which not only replaced the silver ounces we mined, but also increased our Proven and Probable silver Reserves.

"Since 2004, our continued focus on mine-site exploration has generated substantial new value by adding over 198 million ounces of Proven and Probable silver Mineral Reserves, more than replacing the 165 million ounces we mined during the same period."

During the quarter, the company produced 5.3 million ounces of silver and 17,239 ounces of gold, a decrease of six and 10 percent, respectively, from a year earlier.

At 708.8 million ounces, Pan American's measured and indicated silver mineral resources at December 31, 2011 were practically flat year-on-year, while inferred silver mineral resources grew 26.5 million ounces to 271.7 million ounces.

Pan American--which mines silver and, to a lesser extent, gold in Mexico, Peru, Bolivia and Argentina--predicted silver production in 2012 will reach 21.5 to 22.5 million ounces at a cash cost of $12.50 to $13.50 an ounce.

The most notable exploration success last year was at the La Colorada mine, where exploration drilling added 10.6 million new ounces of silver. In 2011, La Colorada's mineral reserves grew by 15 percent from the prior year, to 44.1 million ounces of high grade proven and probable silver mineral reserves at December 31, 2011.

La Colorada now has the second-largest mineral reserve in the company's portfolio of assets, behind the Huaron mine, which has 60.9 million ounces of silver in proven and probable mineral reserves.

Other highlights of the 2011 exploration campaign include the complete replacement of silver ounces mined during 2011 at Huaron, Quiruvilca and San Vicente; however, industry-wide cost pressures, particularly in Argentina, and the deterioration of concentrate sales terms, specifically for silver-rich copper concentrates from the company's Peruvian and Bolivian operations, impacted the exploration results at some of its operations.

The company said a cash dividend of $0.0375 per share will be distributed on or about March 19 to holders on record as of March 5, 2012.

Pan American Silver is the world's second-largest primary silver producer. It has seven mines in Mexico, Peru, Argentina and Bolivia.

The silver producer also owns the Navidad silver development project in Chubut, Argentina, the Calcatreu gold project in Rio Negro, Argentina and is the operator of the La Preciosa joint venture project in Durango, Mexico.

Thu, 23 Feb 2012 09:09:00 -0500
<![CDATA[News - Shares in Peru-based mining companies plummet after Presidential vote ]]>

Shares of Peruvian-focused mining companies dropped on Monday after the country voted in left-wing former army commander, Ollanta Humala. 

Humala's victory caused the Lima General Index to drop more than 12 percent, its biggest ever one-day loss, bringing trading to a halt. It's the first time trading has stopped on the exchange since the October 2008 crisis.

The new president had previously made claims of higher taxes to foreign mining companies, provoking fears that Peru will become a far more expensive place to build and operate mines. In the past, Humala has suggested a windfall tax of up to 40% on profits by mining companies, in addition to an increase to the 30% rate that miners currently pay, in order to better distribute the country’s mineral wealth.

Peru-based  junior mining companies Rio Cristal Resources (CVE:RCZ) and Vena Resources (TSE:VEM) were among the hardest hit by the election result,  dropping 25% and 16%, respectively, by market close on Monday.  Dozens of other mining companies were also hit by the news, including Tier 1 silver producer Pan American Silver (NASDAQ:PAAS, TSE:PAS).

Markets across the globe slipped, with the Toronto Stock Exchange dropping 199 points; the mining and metals sector fell 24.5 points to finish the day at just under 1,362.

The June contract for copper, initially rose on fears that future mine developments from the second largest copper producer in the world could be jeopardized.   However, by the end of play, copper dropped by 0.18%.

Peru's currency also took a hit at Humala's victory. The sol dropped 1.25% today, at 2.791 per U.S. dollar.

Mon, 06 Jun 2011 17:48:00 -0400
<![CDATA[News - Pan American and Orko Silver JV to option Canasil Resoures' Carina project in Mexico ]]> Canasil Resources (TSX-V: CLZ) announced today that it has signed an option agreement with Pan American Silver (NASDAQ:PAAS), giving Pan American the rights to up to 80% of its Carina project in Durango State, Mexico. Under the terms of the deal, Pan American is required to transfer its option rights for the Carina property to its La Preciosa joint venture with Orko Silver (TSX: OK).

The Carina property, which covers 12,147 hectares and is located 45 km northeast of the city of Durango, is adjacent to the southern border of Pan American and Orko Silver's La Preciosa silver project.

Initially, Canasil and Pan American agreed that the optionee can earn an initial 55% interest in the Carina property by incurring total exploration expenditures of US$3.65 million and total cash payments of US$0.365 million to Canasil over a period of four years.

Following the initial earn-in, a joint venture will be established, with the optionee as the operator of the project.

The optionee may also further increase its interest in the project to 70% by funding a full feasibility study within three years, and to 80% by financing the project through to production.

Canasil's mapping and sampling at the Carina site has defined an area of 500 metres by 800 metres hosting multiple quartz vein structures, with anomalous silver, gold and base metal values in surface samples.

Canasil's shares have declined 5.3% to trade at $0.27 as of 11:55 am ET.  The company's share price has tripled in the past year.

Mon, 22 Nov 2010 19:14:00 -0500
<![CDATA[News - Silver will outperform other metals in the medium term - BMO Research ]]> By Dorothy Kosich,

BMO Research forecasts silver to average US$18.72/oz this year, $20/oz in 2011 and decline to $18/oz in 2012, with the long-term silver price projected to average $14/oz.

In a first-quarter silver recap published Wednesday, BMO said its preferred senior silver producers  are Fresnillo, Pan American Silver, and Silver Wheaton, while First Majestic is the preferred mid-tier producer. Bear Creek Mining is the junior silver producer favored by BMO analyst Andrew Kaip and associates Alexandra Syrnyk and Heather Taylor.

"BMO Research forecasts a relatively constrained physical supply/demand environment for silver and maintains the view that silver will outperform relative to other metals in the medium term," the analysts said. They cited the recent 6.5% surge in silver since the beginning of this month and the ongoing market equity correction on the back of market jitters generated by the European sovereign debt crisis.

Meanwhile, BMO anticipates increased gold purchases "by investors and central banks alike, as 2010 unfolds and the very existence of the euro is being questioned."

The analysts predict that Fresnillo, Silver Wheaton and Coeur d'Alene mines will have a capital intensive year, as Fresnillo and Coeur capital programs are focused on mine development. BMO advises Silver Wheaton will allocate capex toward silver stream purchase payments.

Pan American Silver and Hecla Mining are projected by BMO to increase cash position through 2010 "owing to strong projected cash flow and relatively low capital programs." Meanwhile, as they improve their respective balance sheets, Coeur d'Alene, Hochschild Mining and Silver Standard Resources are projected to end the year in a positive net debt position.

This year, BMO Research forecasts that Fresnillo and Pan American "are expected to maintain their status as the #1 and #2 primary silver producers. Meanwhile the analysts suggest Silver Standard "could transition into a significant silver producer."

The analysts called Bear Creek the "premier junior growth company" which could move to intermediate status by 2013. Bear Creek is expected to complete a feasibility study for the Santa Ana silver project in southern Peru in mid-third-quarter 2010.

Bear Creek claims to have more than 500 million ounces of silver, plus by-product metals in its Corani and Santa Ana projects, both located in Peru.

Fri, 21 May 2010 14:34:00 -0400
<![CDATA[News - Pan American Silver opens Butch Cassidy and Sundance Kid Museum in Bolivia ]]> By Dorothy Kosich,

The Sundance Kid: What's your idea this time?

Butch Cassidy: Bolivia

Butch: ...Look, if we'd had been in business during the California Gold Rush, where would we have gone, California, right?

Sundance: Right

Butch: So when I say Bolivia, you just think California. You wouldn't believe what they are finding in the ground down there. They're just fallin' into it. Silver mines, gold mines, tin mines, payrolls so heavy we'd strain ourselves stealin' ‘em.

                                    --Dialog from the movie "Butch Cassidy and the Sundance Kid"


Legend has it that Butch Cassidy and the Sundance Kid died in a shootout November 7, 1908 after robbing a mining payroll mule transport of 15,000 pesos. Soldiers and angry miners shot up a house in San Vicente, Bolivia where the duo was believed to have been holed up. To this day, no one is certain if Butch and Sundance are the two robbers buried in the San Vicente cemetery.

But, appropriately enough, one of the world's largest silver miners still honors their memory with the dual goal of promoting tourism in a tiny Bolivian community dependent on mining and tourism for its lifeblood.

Vancouver's Pan American Silver opened the new Butch Cassidy and Sundance Kid Memorial Museum in a one-room adobe building in November-a mix between history and the Paul Newman and Robert Redford western. Tupiza Tours specializes in taking tourists along the death trail of Butch and Sundance, who may meet up with personnel from Pan American Silver's San Vicente mine, who can locate someone with a key to open up the museum.

Pan Am founder Ross Beaty told Mineweb Monday he had been to the cemetery where the two scoundrels are buried and is "just the kind of place where those guys might have ended up."

Nevertheless, the Pinkerton Detective Agency remained unconvinced that Butch and Sundance had, indeed, perished in San Vicente and never officially called off their search.

In an e-mail to Mineweb, Pan Am CEO Geoff Burns said the company did fund the establishment of the museum. He added that "it is indeed part of a much larger program to promote economic diversification and education for our workers, their families and for the town of San Vicente, for which it currently seems that only tourism and mining provide primary economic stimuli."

TIME Magazine's Jean Freidman-Rudovsky during a recent visit to Bolivia noted, "Bolivia must be famous for its majestic salt flats and Andean peaks, but it also has a firm hold on ‘death trail' tourism. Thousands come annually to retrace leftist revolutionary hero Ernest ‘Che' Guevara's final footsteps in south central Bolivia."

For $150, Tupiza Tours will provide a private guided tour of the area's historic mining mansions, the site of the mule train payroll robbery, and San Vicente, along with meals and lodging.

San Vicente residents reenacted the shootout that killed Butch and Sundance in a centennial celebration in 2008. Butch and Sundance hats, t-shirts and key chains, along with a DVD of the reenactment, can be found at the San Vicente town store.

As miner Sixto Juarez told Freidman-Rudovsky during her visit to the museum, "At some point the mine will close. But this town's legacy will last forever."

However, the closure of the San Vicente silver mine is a long time into the future.  The recently expanded operation is performing well above expectations, producing 900,000 ounces of silver during the third quarter in a region that has been mined since colonization in the 16th Century by Spain.

Tue, 05 Jan 2010 10:03:00 -0500
<![CDATA[News - Pan American Silver reports 91% silver recoveries at La Preciosa with cyanide leaching ]]> Pan American Silver Corp (TSX: PAA, NASDAQ: PAAS) reported better than expected results from phase one metallurgical testing conducted on samples from the La Preciosa joint venture (JV) project in Mexico.

The first phase detailed metallurgical program completed by Pan American included work index tests, abrasion tests, mineralogical studies, gravity tests, floatation tests and cyanide leach tests, which yielded average silver recoveries of 91%. The company said that use of selective oxidants could further enhance these results.

Meanwhile, cyanide consumption was reduced to 1.6 kg (kilogrammes), which was lower than the results from the metallurgical work previous completed by Pan American’s JV partner Orko Silver (TSX-V: OK).

“This is excellent news. Confirming the straightforward leaching characteristics of the ore while reducing both cyanide consumption and leach times are clear enhancements to the La Preciosa project,” said President of Orko Silver Gary Cope.

A pre-feasibility study for the project is expected before the end of 2010.

Aside from continuing delineation and exploration drilling and further metallurgical testing, developments at the project included the commencement of determining appropriate water sources after contracting hydrogeological services.

Wed, 16 Dec 2009 14:30:00 -0500
<![CDATA[News - Pan American Silver reports 172% surge in third quarter net income ]]> By Dorothy Kosich,

Pan American Silver Tuesday reported a 172% increase in net income for the third quarter, along with record silver and gold production.

CEO Geoff Burns said, "The main drivers of our third quarter performance were a well executed startup of the San Vicente mine expansion, which has been producing silver beyond our expectations, and a solid quarter at Manantial Espejo. "

Vancouver-based Pan American produced a record of 6.4 million ounces of silver during the third quarter, a 31% increase over the 4.9 million ounces produced in the third-quarter 2008. The main reasons for the increase were the addition of silver production from Manantial Espejo which produced 1 million ounces of silver in the third quarter, and from increased silver production from San Vicente, which increased its production by an additional 600,000 ounces.

For the first nine months of this year, PanAm produced 17,050,812 ounces of silver compared to 14,068,379 ounces during the same period of 2008.

Gold production increased more than fourfold to 28,017 ounces during the third quarter, primarily as a result of commercial production beginning at Manantial Espejo, the processing of a small high grade gold zone at La Colorada and increased throughput at Alamo Dorado. For the first nine months of this year gold production increased from 20,078 ounces reported for the same period of 2008 to 74,080 ounces.

Gold is now PanAm's largest by-product, accounting for 18% of the total consolidated metal value of production during the third quarter.

Consolidated zinc and copper production during the third quarter increased, respectively, by 16% to 11,214 tonnes of zinc and by 22% to 1, 849 tonnes of copper. For the first nine months of the year zinc production was reported at 32,355 tonnes, up from 29,002 tonnes during the same period of 2009.

As of this date, Pan American reported that Doe Run Peru has not resolved its financing needs and the La Oroya smelter remains closed. Doe Run was the largest buyer of PanAm's copper concentrates.

For the first nine months of this year, Pan American Silver's copper production was reported at 4,865 tonnes, compared to 4,461 tonnes for the same period of 2008.

Total costs for the third quarter of this year were US$8.95 per ounce of silver, down from $9.53/oz during the third quarter of 2008. For the nine-month period ended September 30, 2009, total costs were $9.64/oz, up from $8.04/oz reported during the comparable period of 2008. The company said the achievement of commercial production at San Vicente "has resulted in a significant increase in the depreciation and amortization charged in the 2009 periods relative to the comparative periods of 2008."

Pan American officials said they are confident the company will "comfortably meet its forecast annual production target of 21.5 million ounces of silver and 85,000 ounces of gold for 2009, excluding production from Quiruvilca. Furthermore, the company now expects that its consolidated cash costs for the full year in 2009 will be below the previously announced guidance of approximately $6 per ounce of silver."

The Quiruvilca mine is being prepared for a period of care and maintenance although the company expects to continue mining through the balance of this year and into 2010/


Net income for the third quarter was US$17.4 million or 20-cents per share, a 172% increase over a year ago when net income was reported at $6.4 million or 8-cents/share. The improvement was attributed to higher gold prices and increased silver and gold production.

However, for the first nine months of this year, net income was $34.2 million or 40 cents per share, down from $58 million or 72-cents/sh reported during the first nine months of 2009.

During the third quarter Pan American made a friendly all-share C$626 million (US$596.5m) takeover bid to acquire Aquiline Resources, in particular the Navidad silver project in the Province of Chubut in Argentina.

Wed, 11 Nov 2009 14:30:00 -0500
<![CDATA[News - Pan American Silver agrees to acquire Aquiline Resources for C$626 million ]]> Pan American Silver Corporation (TSX: PAA) has agreed to acquire Aquiline Resources (TSX: AQI) for a total consideration of C$626 million to add Navidad and other silver projects to its portfolio and increase its total measured, indicated and inferred resource to over 2.7 million ounces of gold.

Under the terms of the support agreement signed by the two companies, Pan American will make a formal takeover offer for bid to acquire all the issued and outstanding shares of Aquiline, while also proposing to make a bid for each outstanding series of Aquiline warrants and the Aquiline convertible debenture for a total US$626 million.

The share offer will be made on the basis of 0.2495 of a Pan Americna common share plus 0.1 of a Pan American common share purchasing warrant, entitling the holder to buy a common share for C$35, for each Aquiline common share.

The offer of C$7.47 per share represents a 37% premium to the company’s yesterday’s closing price and a 62% premium to its 10 day average price.

Aquiline’s board recommended the shareholders to accept the share offer.

With the acquisition, Pan American will get Aquiline’s Navidad and Calcatreu project in Argentina and the Pico Machay project in Peru, increasing its resources to 945 million ounces in the measured and indicated category and 233 million ounces in the inferred category, making for 1.9 million ounces of gold in measured and indicated resource and 817,000 ounces in the inferred category.

“With both the Navidad and La Preciosa development projects in our portfolio, Pan American is well on its way to producing 40 million ounces of silver annually,” said President and Chief Executive of Pan American Geoffrey Burns.

Pan American slipped almost 4% on the announcement, while Aquiline surged 27.5%.

Wed, 14 Oct 2009 10:11:00 -0400
<![CDATA[News - Pan American Silver reports record silver and gold production, but net profits slump ]]> [Dorothy Kosich,] Pan American Silver Tuesday reported a 24% increase in silver production to a record of 5.8 million ounces during the second quarter of this year as well as a 270% increase in gold production to a record 25,068 ounces.

The main reasons for the increase were the addition of silver production from the Manantial Espejo mine, which yielded 1 million ounces of silver during the quarter and increased production from San Vicente which mined an additional 400,000 ounces.

However, these increases were partially offset by lower silver production at La Colorado and Alamo Dorado as a result of anticipated lower throughput and silver grades, as well as a five-day suspension of Mexican operations as the result of the swine flu outbreak in Mexico. Peruvian operations reported lower throughput rates which were partially offset by higher silver grades.

Production of gold also increased three-fold as a result of the commencement of production at the Manantial Espejo mine, and processing of a high-grade gold deposit at the La Colorado mine. Gold is now Pan American Silver's largest by-product, accounting for 18% of the total metal value of consolidated production in the quarter.

Pan American Silver said it stands by its forecasted production this year of 21.5 million ounces of silver at cash costs of $6/oz, 85,000 ounces of gold, 36,000 tonnes of zinc, 12,800 tonnes of lead, and 5,000 tonnes of copper.

Among the significant events reported by Pan American during the quarter was the closure of the La Oroya smelter complex by Doe Run Peru, which has since filed for reorganization protection. Pan American Silver said Doe Run Peru owes the Vancouver-based miner $8.8 million for concentrates which were sent for processing at La Oroya.

"While the company continues to pursue all legal and commercial avenues to collect outstanding payments in full, the timing of such a collection does not appear imminent and there is uncertainty regarding its collectability," Pan American said.

While the company has been able to sell copper concentrate to other buyers, Pan American has earned far less money than the Doe Run Peru contract.

For the second-quarter 2009, Pan American reported a net income of $10.2 million or 12-cents per share, down substantially from the net income of $21.4 million (26-cents/sh) reported during the second quarter of last year. "Net income in Q2 was negatively impacted by sharper lower realized silver and base metals prices relative to the comparable period of 2008," the company said. Net income was also reduced by a non-cash debt provision of $4.4 million. Included in net income was a non-cash forex loss of $1.2 million.

For the first half of this year, Pan American reported a net income of $16.8 million or 20-cents per share, down substantially from the $51.5 million (65-cents/sh) reported during the first six months of 2008.



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Wed, 12 Aug 2009 14:47:00 -0400
<![CDATA[News - Pan American and Orko begin drilling La Preciosa silver project in Mexico ]]> Pan American Silver Corp (TSX: PAA) and Orko Silver Corp (TSX-V: OK) said in a joint statement they commenced a comprehensive exploration and delineation drilling program at the La Preciosa silver project in Mexico.

The groups expect to complete approximately 30,000 meters of drilling on the property between now and the end of December of this year. The initial delineation drilling is specifically designed to upgrade Martha Vein inferred resources to measured and indicated status, while the exploration drilling will focus on several untested prominent vein structures within the joint venture property, that had been previously discovered by Orko.

Pan American, operator of the La Preciosa joint venture, plans to spend a total of US$5.7 million in 2009, to complete the drill programs, as well as to initiate other project development related activities, including advanced metallurgical testing.

The JV partners have agreed to delay the completion of a preliminary economic assessment until the 2009 drilling and metallurgical test program has been completed.

Mon, 22 Jun 2009 14:35:00 -0400
<![CDATA[News - Volatility in silver prices undermine a robust Pan American Silver Corp ]]>
Like many commodities, silver has come under pressure in recent weeks thanks to recent strength in the US dollar combined with concerns that the slowdown which stared in the US in 2007 is now starting to seriously impact other regions, including Asia. However, whilst the demand for silver in terms of manufactured goods, such as electronics may fall, silver is in fact used in many other applications, including jewelry.

For, while things are tight and people are watching their expenditure, the high price of gold and the relative affordability of silver may provide a hedge against some of the economic storm.  Silver bulls are also keen to point out that the historic ratio between the price of gold and silver, which is 50:1, is currently out of kilter, which suggests either gold needs to fall much further, or silver is long overdue a re-rating.

Vancouver based Pan American Silver Corp. (Pan American) has just released its second quarter figures. Pan American’s operations are focused in central and south America. The company has underground silver mines in Mexico and Peru and is exploring in Argentina, Bolivia, Mexico and Peru.  

Pan American’s numbers are pretty good. Silver production is up 11% on 2007 to 4.7m ounces, sales are up 31 per cent to C$104.1m, net income is up 16% to C$25m, mine operating earnings are up 25% to $39.3m and cash flow is at an all time high, up 45% to CDN$45.7m. All of those ducks in a row for silver production came at a cash cost of C$5.28 an ounce.

Geoff Burns, Pan American’s president & CEO said, "We increased silver production again, posted a new quarterly record for operating cash flow and recorded substantial bottom line income for the ninth consecutive quarter. We remain well positioned to deliver yet another year of record silver production and record earnings. Pan American now expects to produce 18.8 million ounces of silver in 2008 and 25 million ounces of silver in 2009."

One would have thought the market would be ecstatic over those numbers. And, in any kind of normal market it probably would have been. The fact is that things are far from normal right now with considerable volatility in equities, foreign exchange and commodities as the markets try to gauge where the world economy, and in particular, the US economy is heading next. In early trading yesterday, Pan American stock was trading down 6.9%, in kind with another big drop in the silver price.

Pan American has seven operating mines with an eighth in Argentina set to go into production during the fourth quarter of 2008. "Our mines are operating as planned, our expansion projects are progressing well, and we continued to realize on excellent silver prices. There is no question that of late silver prices have been extremely volatile; however, the fundamentals remain positive and I am optimistic that silver will trend higher over the balance of the year leading to continuing strong financial results for Pan American," said Burns.

It’s not all plain sailing though. Niggling challenges can occur outside of the market. For example, in July 2008 Pan American had to peg back the commissioning of its Manantial Espejo mine in Argentina some 90 days because of slow equipment deliveries and the theft of critical electrical switchgear for its processing plant. In Peru, also in July 2008, a miners strike has affected production at one of its mines, although the company is not expecting to change the mine’s production forecast because of the industrial action.  

Whether the market sentiment over Pan American’s stock is down to concerns over falling silver prices, unforeseen difficulties at its mines in Argentina and Peru, or it is an overall global malaise that seems to have set in? Only time will tell. Pan American has forecast an average cast cost of production at CDN$5.10 per ounce of silver, so there is still a considerable cushion between cash costs and silver prices, which bodes well for Pan American’s ability to continue to grow even in an environment of lower commodity prices.  Low cost operators have a competitive advantage due to their strong cash flow and ability to stay profitable even in times of weaker metal prices.          

Mon, 15 Sep 2008 00:00:00 -0400