Pan American Silver (PAAS) Investor Day 2024 summary

Strategic vision and business overview

• Aims to be the premier silver producer, leveraging a 30-year track record, operational excellence, innovation, and sustainable development.

• Recent transformative acquisitions (Tahoe and Yamana) have expanded reserves, resources, and operational flexibility, with successful divestments recouping a substantial portion of transaction costs.

• Holds the largest silver reserves in the industry (486 million oz), with a strong emphasis on brownfield exploration and portfolio optimization.

• Operates a decentralized management structure, empowering local teams and maintaining a strong focus on safety and shareholder returns.

• Achieved superior shareholder returns (+65% over 10 years) compared to peers, supported by disciplined capital allocation and a robust balance sheet.

Financial guidance and capital allocation

• 2024 silver production guidance: 21.0–23.0 Moz; gold: 880–1,000 koz; silver segment AISC: $16.00–$18.50/oz; gold segment AISC: $1,475–$1,575/oz.

• Maintains over $1 billion in liquidity, with a net debt position expected to fall below $400 million after pending asset sales and a long-term gross leverage target below 1.0x.

• Capital allocation prioritizes a strong balance sheet, investment in high-return projects (notably La Colorada Skarn), and consistent shareholder returns through dividends and buybacks.

• Dividend policy includes a $0.10/share base dividend plus a variable component linked to net cash, and a share buyback program initiated in March 2024.

• No hedging of gold or silver; risk management focuses on byproducts, diesel, and FX exposures.

Major business developments and portfolio actions

• Successful integration of Yamana Gold and Tahoe Resources, achieving ~$150M in annual cost savings and additional $90M in annual cash savings post-dispositions.

• Entered agreement to sell La Arena gold mine and La Arena II copper-gold project for $245M upfront, $50M contingent, and a 1.5% gold NSR royalty.

• Divested interests in MARA, Morococha, Agua de la Falda, and Maverix Metals, generating $988.4M in cash and multiple royalties.

• Portfolio optimization through divestment of non-core assets and evaluating new growth opportunities.

• No public equity offering since 2009; capital expenditures funded through internal cash flows.