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.