In This Article:
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Mine Operating Earnings: $250.8 million, a record for the quarter.
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Silver Production: Just over 5 million ounces, slightly above guidance.
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All-In Sustaining Costs (Silver Segment): $13.94 per ounce, below guided range.
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Gold Production: 182,200 ounces, in line with guidance.
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All-In Sustaining Costs (Gold Segment): $1,485 per ounce, better than expected.
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Revenue: $773 million for Q1.
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Net Earnings: $169 million or $0.47 per share.
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Adjusted Earnings: $153 million or $0.42 per share.
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Operating Cash Flow (Before Noncash Working Capital Changes): $240 million, including $95 million cash taxes.
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Operating Cash Flow (After Working Capital Changes): Approximately $175 million.
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Cash and Short-Term Investments: Increased to $923 million.
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Free Cash Flow: $112.6 million for the quarter.
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Total Available Liquidity: Approximately $1.7 billion, including undrawn line of credit.
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Pan American Silver Corp (NYSE:PAAS) reported record mine operating earnings of $250.8 million for Q1 2025, continuing the positive trend from 2024.
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The company achieved silver production of over 5 million ounces, slightly above the guidance range, with lower-than-anticipated production costs.
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Gold production in Q1 was 182,200 ounces, in line with guidance, and gold segment all-in sustaining costs were better than expected.
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Pan American Silver Corp (NYSE:PAAS) generated $112.6 million of free cash flow in Q1, with a record cash and short-term investments balance of $923 million.
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The company has approximately $1.7 billion of total available liquidity, providing capacity to pursue growth objectives, including the La Colorada Skarn project.
Negative Points
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Minera Florida faced challenges in Q1 due to mine sequencing, lower grades, absenteeism, and equipment delivery delays, impacting production costs.
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Bell Creek experienced technical challenges with seismicity and ground conditions, which slowed down operations more than expected.
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The Escobal project in Guatemala is progressing slowly, with no set date for the completion of the consultation process or potential restart of operations.
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The company anticipates potential cost increases in Q2 due to sustaining capital spending and tailings compaction projects.
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Despite strong performance, the company maintains its cost guidance for the year, indicating potential variability in future quarters.
Q & A Highlights
Q: With Q1 costs outperforming guidance, should we expect adjustments for subsequent quarters? A: Scott Campbell, Senior VP of Operations and Projects, stated that while they are encouraged by the strong cost performance, they are maintaining their cost guidance for the year. They typically do not adjust guidance after one quarter, but favorable metal prices and exchange rates could continue to positively impact costs.