Pan American Silver (PAAS) Q3 2024 earnings summary

Executive summary

• Achieved record Q3 2024 revenue of $716.1 million and free cash flow of $151.5 million, supported by higher production and improved metal prices.

• Net earnings were $57.1 million ($0.16 per share), with adjusted earnings of $115.1 million ($0.32 per share), including a one-time tax expense.

• Cash and short-term investments rose to $470 million, net debt decreased to $376.2 million, and available liquidity reached $1.2 billion.

• Declared a $0.10 per share dividend for Q3, with year-to-date dividends totaling $109.1 million and $24.3 million spent on share buybacks.

• Regulatory approval received for the $245 million sale of La Arena in Peru, expected to close in Q4.

Financial highlights

• Q3 2024 revenue was $716.1 million, with mine operating earnings of $175.7 million and a $30 million inventory build-up.

• Cash flow from operations before working capital changes was $235.8 million; free cash flow was $151.5 million.

• Silver production was 5.5 million ounces; gold production was 225,000 ounces.

• Silver segment cash costs averaged $15.88/oz; gold segment cash costs $1,195/oz.

• Realized silver price was $29.52/oz and gold $2,475/oz.

Outlook and guidance

• On track to achieve 2024 guidance, with silver production expected at the low end of the 21–23 million ounce range and gold at 880–1,000 thousand ounces.

• Anticipates a strong Q4, historically the strongest quarter, with back-end loaded production profile.

• 2024 capital expenditures forecasted at $375–395 million, with $80–85 million for project capital.

• Q4 2024 cash income tax payments expected between $70–90 million, reflecting settlements and higher profitability.