Pan American Silver Reports
Net Income of $71.2M in Q2 2021 and
Increases Quarterly Dividend by 43%

Pan American Silver (Nasdaq: PAAS) (TSX: PAAS) produced 4.5 million ounces of silver and 142,300 ounces of gold in Q2 2021.

The company’s net income was $71.2 million ($0.34 basic income per share), driven largely by strong mine operating earnings of $103.0 million. Pan American Silver’s revenues improved 53.2% year-over-year to $382.1 million in Q2.

“Based on the strong operating cash flow in Q2, our solid financial position, and improving outlook for our operations, we are increasing the quarterly dividend by 43% to $0.10 per common share from $0.07. This marks the third dividend hike in the past 18 months, President and CEO Michael Steinmann said.

The company also reported its estimated mineral reserves and resources as of June 30th, 2021. Proven and probable silver mineral reserves are estimated at 529 million ounces. And gold mineral reserve at 4.2 million ounces. Measured and indicated mineral resources (excluding proven and probable reserves) are estimated to total approximately 818 million ounces of silver and 8.3 million ounces of gold. In addition, inferred mineral resources total 460 million ounces of silver and 5.8 million ounces of gold.

The company reaffirmed its annual silver production forecast for 2021 of 20.5 to 22.0 million ounces. PAAS also reaffirmed its annual gold production forecast for 2021 of 605.0 to 655.1 thousand ounces.

“The exploration program over the past year was reduced by 50% due to the COVID-19 restrictions. Although we completed the planned exploration program for Timmins and at La Colorada skarn. At La Arena, we replaced 141% of the ounces mined, extending mine life by another year,” said Christopher Emerson, Pan American’s VP of Business Development and Geology.

“Mine life was also extended by another year at Timmins through the discovery of 209,000 ounces of gold, of new mineral reserves, replacing 147% of ounces mined. At La Colorada, the ventilation restrictions impacted exploration activities. However, the recent improvements to the ventilation circuit would allow us to ramp up exploration drilling at this long-life mine, where we have over 100 million ounces of silver mineral reserve and 192 million ounces of inferred resources, including the large skarn deposit. Pan American holds one of the largest silver mineral resources and reserves in the world,” said Emerson.

About Pan American Silver

Pan American Silver owns and operates silver and gold mines located in Mexico, Peru, Canada, Argentina and Bolivia. The company also owns the Escobal mine in Guatemala that is currently not operating.