Pan American Silver (PAAS) Q4 2024 earnings summary

Executive summary

• Achieved record revenue of $2.82 billion and record free cash flow of $724.1 million in FY 2024, driven by strong metal prices, Yamana asset integration, and operational performance.

• Silver production reached 21.1 million ounces and gold production hit a record 892,500 ounces in 2024, both within guidance.

• Completed the sale of La Arena, generating $307 million in cash, and ended 2024 with $887 million in cash and $1.6 billion in total liquidity.

• Declared a $0.10/share dividend and repurchased 2.6 million shares since March 2024, with $145.4 million in dividends paid in 2024.

• Major projects completed at La Colorada, Huaron, Timmins, and Jacobina, positioning assets for future growth.

Financial highlights

• Q4 2024 revenue: $815.1 million; FY 2024 revenue: $2,818.9 million.

• Q4 2024 net earnings: $107.8 million ($0.30/share); FY 2024 net earnings: $112.7 million ($0.31/share).

• Q4 2024 adjusted earnings: $126.9 million ($0.35/share); FY 2024 adjusted earnings: $286.7 million ($0.79/share).

• Record cash flow from operations: $274.1 million in Q4 and $724.1 million for 2024.

• Record free cash flow: $196.2 million in Q4 and $445.1 million for 2024.

Outlook and guidance

• 2025 production guidance: 20–21 million ounces of silver and 735,000–800,000 ounces of gold.

• 2025 AISC guidance: Silver $16.25–$18.25/oz; Gold $1,525–$1,625/oz.

• Capital expenditures for 2025 projected at $360–$385 million, with $270–$285 million sustaining and $90–$100 million project capital.

• Production and lower AISC expected to be weighted to the second half of 2025.

• Exploration budget of $80 million, focused on reserve replacement and brownfield sites.