• Revenue: $815.1 million in Q4; $2.8 billion for 2024.
• Silver Production: 21.1 million ounces in 2024.
• Gold Production: 892,000 ounces in 2024.
• All-in Sustaining Costs (Silver): $18.98 per ounce in 2024.
• All-in Sustaining Costs (Gold): $1,501 per ounce in 2024.
• Cash Flow from Operations: $274.1 million in Q4; $724.1 million for 2024.
• Free Cash Flow: $196.2 million in Q4; $445.1 million for 2024.
• Net Earnings: $107.8 million or $0.30 per share in Q4; $112.7 million or $0.31 per share for 2024.
• Adjusted Earnings: $126.9 million or $0.35 per share in Q4; $286.7 million or $0.79 per share for 2024.
• Cash and Short-term Investments: $887 million.
• Total Available Liquidity: $1.6 billion.
• Dividends Paid: $145.4 million in 2024.
• Share Buyback: Approximately 2.6 million shares repurchased since March.
• 2025 Silver Production Guidance: 20 million to 21 million ounces.
• 2025 Gold Production Guidance: 735,000 to 800,000 ounces.
• 2025 All-in Sustaining Costs (Silver): $16.25 to $18.25 per ounce.
• 2025 All-in Sustaining Costs (Gold): $1,525 to $1,625 per ounce.
• Sustaining Capital (2025): $270 million to $285 million.
• Project Capital (2025): $90 million to $100 million.
• Exploration Investment (2025): $80 million.
• Cash Taxes (2025): $240 million to $260 million.
• Care and Maintenance Costs: $20.5 million to $24 million, mostly related to Escobal.

• Warning! GuruFocus has detected 7 Warning Signs with PAAS.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Pan American Silver Corp (NYSE:PAAS) reported record revenue of $815.1 million in Q4 and $2.8 billion for the full year 2024, driven by strong metal prices and full-year production from acquired Yamana mines.
• The company achieved its production guidance for 2024, with silver production totaling 21.1 million ounces and gold production reaching a record 892,000 ounces.
• Cash flow from operations was a record $274.1 million in Q4 and $724.1 million for the full year, reflecting strong margins.
• Pan American Silver Corp (NYSE:PAAS) is in a strong financial position entering 2025, with a net cash position of $887 million and total available liquidity of $1.6 billion.
• The company announced a $0.10 per share dividend for Q4 and repurchased approximately 900,000 shares under the share buyback plan, demonstrating a commitment to returning capital to shareholders.

Negative Points

• All-in sustaining costs for the silver segment were slightly above guidance at $18.98 per ounce in 2024.
• The transition of the Dolores mine to the residual leaching phase and active reclamation resulted in adjustments that offset gains from the sale of La Arena.
• The guidance for La Colorada in 2025 is lower than expected due to capacity constraints and the need to develop new areas, impacting short-term production.
• The Escobal mine in Guatemala remains in a consultation process with no published timeline for completion, leading to uncertainty about its restart.
• The company expects production and costs to be weighted towards the second half of 2025, influenced by factors such as weather and mine sequencing, which could affect financial performance in the first half.

Q & A Highlights

Q: Can you comment on the 2025 guidance for La Colorada, given the production figures from Q4 2024? A: Steven Busby, Chief Operating Officer, explained that the 2025 guidance reflects a balance between short-term production and long-term value. The focus is on developing new areas with significant exploration potential, which may temporarily impact production levels. Additionally, there are capacity constraints related to waste movement, and some production will involve sharing profits with a neighboring concession owner.

Q: What is the outlook for Jacobina in 2025, and how are the optimization studies progressing? A: Steven Busby noted that while Jacobina had a strong Q4 2024, some plant upgrades are needed for sustainable throughput. These projects are expected to be completed by late 2025. The optimization studies are progressing well, with plans to announce initial projects midyear, focusing on improving recovery and tailings management.

Q: How does the recent sale of Newmont's Timmins assets affect Pan American Silver's view on its Timmins asset? A: Michael Steinmann, President and CEO, stated that the Timmins district holds significant potential for value creation. There are opportunities for optimization and collaboration with neighboring operations, which could benefit both Pan American and Discovery Silver shareholders. The district's exploration potential remains a key focus.

Q: What is the status of the Escobal consultation process, and are there reasons to be optimistic for 2025? A: Michael Steinmann clarified that while there is no published timeline for the consultation process, meetings are ongoing, and progress is being made. Sean McAleer, Senior Vice President, Strategic Initiatives, added that recent government changes have caused some delays, but activity is expected to increase in the coming months.

Q: Can you provide more details on the production and cost guidance being second-half weighted in 2025? A: Steven Busby explained that the production and cost guidance reflects mine sequencing and seasonal factors. Cerro Moro and Shahuindo are expected to contribute more in the second half due to higher-grade ore and favorable weather conditions, respectively.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.