Pan American Silver (PAAS) 35th BMO Global Metals, Mining & Critical Minerals Conference summary

Strategic portfolio overview

• Operates 10 producing assets across the Americas, focusing on regions with significant silver reserves and operational familiarity.

• Recent acquisition of MAG Silver and the Juanicipio mine has significantly boosted production and reduced costs.

• Active in 8 countries, with a mix of silver and gold assets, and ongoing optimization of the asset portfolio.

• Jacobina and Timmins, primarily gold producers, are being optimized for higher efficiency and expanded production.

• Exploration and development efforts are ongoing to maximize resource potential and operational efficiency.

Production and cost performance

• Achieved over $550 million in free cash flow in Q4, with expectations for even stronger Q1 results due to higher metal prices.

• Silver production increased by 14% year-over-year, with declining costs driven by Juanicipio's addition.

• All-in sustaining costs for silver have decreased, resulting in significant margin expansion.

• Seasonality affects production, with stronger output in the second half of the year due to weather patterns in South America.

• Cost inflation is present, mainly from wages and diesel, but partially offset by lower costs for some inputs and favorable by-product credits.

Growth projects and capital allocation

• La Colorada skarn project is a major focus, with phase one targeting high-grade ore and a mine life of 15-20 years.

• Updated PEA for La Colorada skarn expected in Q2, with capital intensity projected to be significantly lower than the original $3 billion estimate.

• Escobal project in Guatemala remains a significant upside, pending completion of the ILO 169 consultation process.

• Capital allocation prioritizes exploration, sustaining capital, and shareholder returns, with a strong cash position and no immediate debt repayment needs.

• Dividend increased for the third consecutive quarter, with a share buyback program also in place.