1500 – 625 H Owe S Treet
1500 – 625 H OWE S TREET
V ANCOUVER, BC C ANADA V6C 2T6
T EL 604.684.1175 • F AX 604.684.0147
www.panamericansilver.com
February 28, 2023
VIA SEDAR
To: British Columbia Securities Commission
Alberta Securities Commission
Financial and Consumer Affairs Authority, Saskatchewan
The Manitoba Securities Commission
Ontario Securities Commission
Autorité des marchés financiers
New Brunswick Securities Commission
Nova Scotia Securities Commission
Prince Edward Island Securities Registry
Securities Commission of Newfoundland and Labrador Superintendent of Securities,
Northwest Territories Superintendent of Securities, Yukon
Superintendent of Securities, Nunavut
Dear Sirs/Mesdames:
Pan American Silver Corp. -
News Release dated February 22, 2023,
“Pan American Silver reports audited financial results for 2022”
Pan American Silver Corp. has refiled a news release dated February 22, 2023, titled “Pan American Silver
reports audited financial results for 2022”.
The news release has been refiled solely to correct the selection of Subtype/Document Type from “Cover
letter” to “News release – English”.
The SEDAR project number for the original filing is 03494014.
Yours truly,
PAN AMERICAN SILVER CORP.
By: _/s/ “Delaney Fisher” _____________________
Delaney Fisher,
SVP Associate General Counsel & Corporate Secretary
Pan American Silver reports audited financial results for 2022
Vancouver, B.C. - February 22, 2023 - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American" or
the "Company") reports fourth quarter (" Q4 2022") financial results and audited financial results for the year
ended December 31, 2022 ("FY 2022").
Michael Steinmann, President and Chief Executive Officer commented: “As expected, our 2022 production was
back-end loaded with strong output in Q4, led by Shahuindo and La Arena. Our 2022 silver production was at the
top of the revised range provided in November, while gold production was in line with our original operating
outlook. World-wide inflationary pressures, and supply chain shortages and delays impacted production costs
across our operations. Revenue in Q4 was reduced by approximately $45 million to $50 million from a build-up of
finished goods inventory due to the timing of sales at the end of December. Additionally, the build-up of finished
good inventories of zinc also contributed to higher costs due to the reduction in by-product credits."
Added Mr. Steinmann: "In January, shareholders of both Pan American and Yamana overwhelmingly approved the
arrangement for Pan American to acquire Yamana and its Latin American Assets. Transaction related costs of 157.3
million were expensed in Q4 2022, and are accounted for in our earnings and cash flow statements for the period,
while the remainder of Transaction closing costs are expected to be recorded in Q1 2023. Following the
completion of the Transaction, expected in Q1 2023, Pan American will be a markedly different company. The
integration of Yamana's assets further strengthens and diversifies our portfolio. We see tremendous opportunity
to optimize our expanded base of operations in Latin America to capture synergies, increase cash flow generation
and focus on high-value growth projects."
Q4 2022 and FY 2022 Highlights:
• The Company, Yamana Gold Inc. ("Yamana") and Agnico Eagle Mines Limited (“Agnico Eagle”) entered into
an arrangement agreement dated November 4, 2022, whereby the Company agreed to acquire all of the
issued and outstanding common shares of Yamana following the sale by Yamana of its Canadian assets,
including certain subsidiaries and partnerships which hold Yamana’s interests in the Canadian Malartic
mine, to Agnico Eagle, by way of a plan of arrangement under the Canada Business Corporations Act (the
"Transaction"). The Transaction is expected to close in the first quarter of 2023, subject to receipt of
approval from the Mexican Federal Economic Competition Commission and satisfaction or waiver of
certain other closing conditions. Following completion of the Transaction, the Company will add a number
of assets to its portfolio, including: the Jacobina mine in Brazil; the El Peñón and Minera Florida mines in
Chile; and the Cerro Moro mine in Argentina as well as several development projects in Argentina and
Chile.
• Silver production was 4.8 million ounces in Q4 2022 and 18.5 million ounces in FY 2022. Gold production
of 164.4 thousand ounces in Q4 2022 was the second highest on record, and totaled 552.5 thousand
ounces in FY 2022. Silver production was within the revised guidance range provided on November 9, 2022
while gold production was within the original guidance range provided on February 23, 2022 (the "2022
Original Operating Outlook").
• Revenue was $375.5 million in Q4 2022 and $1.5 billion for FY 2022. Revenue in Q4 2022 excluded finished
goods inventory build-ups of 418 thousand ounces of silver and 17 thousand ounces of gold.
• Net loss of $172.1 million, or $0.82 basic loss per share in Q4 2022 and $340.1 million, or $1.62 basic loss
per share for FY 2022. In Q4 2022, the Company incurred $157.3 million in expenses related to the
Transaction, primarily attributable to the Company advancing $150.0 million to Yamana toward the
termination fee paid by Yamana to Gold Fields Limited ("Gold Fields") in connection with the now
terminated arrangement agreement between Yamana and Gold Fields.
• Adjusted loss was $4.8 million, or $0.02 basic adjusted loss per share in Q4 2022 and adjusted earnings
were $17.9 million, or $0.09 basic adjusted earnings per share for FY 2022.
Q4 2022 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts
are in thousands of U.S. dollars except number of shares, options,
warrants, and per share amounts, unless otherwise noted.
PAN AMERICAN SILVER CORP. 1
• Cash flow used in operating activities was $112.1 million in Q4 2022, primarily reflecting Transaction
expenses of $157.3 million. Q4 2022 cash flow was also reduced by $29.1 million of cash used for working
capital. Cash flow generated from operating activities was $31.9 million for FY 2022.
• Silver Segment Cash Costs were $14.41 and $12.72 per ounce in Q4 2022 and FY 2022, respectively. Silver
Segment all-in sustaining costs ("AISC"), excluding NRV adjustments, were $19.47 and $16.56 per ounce in
Q4 2022 and FY 2022, respectively. FY 2022 Silver Segment Cash Costs and AISC were above the 2022
Original Operating Outlook ranges, largely due to inflationary cost pressures, supply chain shortages and
delayed logistics.
• Gold Segment Cash Costs were $ 1,077 and $1,113 per ounce in Q4 2022 and FY 2022, respectively. Gold
Segment AISC, excluding NRV adjustments, were $ 1,422 and $1,459 per ounce in Q4 2022 and FY 2022,
respectively. FY 2022 Gold Segment Cash Costs were above the 2022 Original Operating Outlook range and
Gold Segment AISC were at the low end of the revised guidance range provided on August 10, 2022.
• Capital expenditures totaled $290.4 million in 2022, comprised of $223.8 million of sustaining capital and
$66.6 million of project capital, which was largely directed to the La Colorada Skarn project. Total capital
expenditures were within the 2022 Original Operating Outlook.
• At December 31, 2022 , the Company had cash and short-term investment balances of $142.3 million
(excluding long-term investments), working capital of $423.5 million, and $340.0 million available under its
revolving Sustainability-Linked Credit Facility ("SL-Credit Facility"). Total debt of $226.8 million was related
to SL-Credit Facility, lease liabilities and construction loans in Peru.
• A cash dividend of $0.10 per common share has been declared, payable on or about March 17, 2023, to
holders of record of Pan American’s common shares as of the close on March 6, 2023. The dividends are
eligible dividends for Canadian income tax purposes.
• Pan American was included in the S&P Global Sustainability Yearbook 2023 recognizing our improvement
in ESG performance. S&P Global’s annual Sustainability Yearbook aims to distinguish individual companies,
within their industries, that have demonstrated strengths in corporate sustainability. Pan American was
placed in the S&P top 10% in the Metals & Mining industry in 2022.
ILO 169 Consultation for the Escobal Mine
In Q4 2022, two meetings were held under the ILO 169 consultation process for the Escobal mine in Guatemala.
During these meetings, the Health and Cultural Ministries delivered project information to the Xinka
representatives and their expert consultants. In December 2022, the Ministry of Energy and Mines ("MEM") and
Xinka representatives delivered a progress report on the ILO 169 process to the Guatemalan Supreme Court of
Justice.
The MEM is leading the ILO 169 consultation process, and further details regarding the process are available on
the MEM’s web site: https://mem.gob.gt/pueblo-indigena-xinka/. No timeline has been set for the conclusion of
the ILO 169 consultation process, nor a potential restart of operations at the Escobal mine.
Disposition of Shares in Maverix Metals
Pan American sold its remaining interest in Maverix Metals Inc. ("MMX") in January 2023, following the acquisition
by Triple Flag Precious Metals Corp. of all the outstanding common shares of MMX for share and cash
consideration. Pan American realized net proceeds of $105.3 million on the sale of its shareholdings, which
represented approximately 17.6% of the issued and outstanding shares of MMX. In May 2020, Pan American had
sold a portion of its holdings in MMX for aggregate gross proceeds of $45.5 million. In total, Pan American has
realized $150.7 million for its interest in MMX, crystallizing value for the 19 royalties, precious metal streams and
payment agreements that Pan American sold in total from its portfolio: 13 of these were sold in 2016 to create
MMX and an additional six royalties were sold in 2021.
Q4 2022 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts
are in thousands of U.S. dollars except number of shares, options,
warrants, and per share amounts, unless otherwise noted.
PAN AMERICAN SILVER CORP. 2
2023 Operating Outlook
Pan American plans to provide its 2023 operating outlook and guidance following the completion of the
Transaction, which is expected to occur later in the first quarter of 2023. Management intends to provide a 2023
operating outlook inclusive of the Latin American assets acquired through the Transaction, as well as a
consolidated forecast for annual general and administrative, exploration and project development costs.
The 2023 operating outlook will reflect the end of mine life at Pan American's Manantial Espejo operation in
Argentina, with the asset being placed on care and maintenance at the end of 2022.
Conference Call and Webcast
Date: February 23, 2023
Time: 11:00 am ET (8:00 am PT)
Dial-in numbers: 1-800-319-4610 (toll-free in Canada and the U.S.)
+1-604-638-5340 (international participants)
Webcast: https://event.choruscall.com/mediaframe/webcast.html?webcastid=QKpLpGjJ
The live webcast, presentation slides and the Q4 2022 and FY 2022 report will be available at
panamericansilver.com. An archive of the webcast will also be available for three months.
Q4 2022 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts
are in thousands of U.S. dollars except number of shares, options,
warrants, and per share amounts, unless otherwise noted.
PAN AMERICAN SILVER CORP. 3
CONSOLIDATED RESULTS
December 31,
2022
December 31,
2021
Weighted average shares during period (millions) 210.5 210.3
Shares outstanding end of period (millions) 210.7 210.5
Three months ended
December 31,
Year ended
December 31,
2022 2021 2022 2021
FINANCIAL
Revenue $ 375,472 $ 422,170 $ 1,494,718 $ 1,632,750
Mine operating earnings $ 35,047 $ 76,039 $ 48,362 $ 367,938
Net (loss) earnings $ (172,060) $ 14,664 $ (340,063) $ 98,562
Basic (loss) earnings per share(1) $ (0.82) $ 0.07 $ (1.62) $ 0.46
Adjusted earnings (loss)(2) $ (4,798) $ 39,943 $ 17,936 $ 161,782
Basic adjusted earnings (loss) per share(1) $ (0.02) $ 0.19 $ 0.09 $ 0.77
Net cash (used in) generated from operating activities $ (112,102) $ 118,098 $ 31,909 $ 392,108
Net cash (used in) generated from operating activities before
changes in working capital(2) $ (83,030) $ 127,761 $ 73,946 $ 463,177
Sustaining capital expenditures(2) $ 62,581 $ 56,280 $ 223,760 $ 207,623
Non-sustaining capital expenditures(2) $ 15,126 $ 18,132 $ 71,000 $ 49,951
Cash dividend per share $ 0.10 $ 0.10 $ 0.45 $ 0.34
PRODUCTION
Silver (thousand ounces) 4,763 5,276 18,455 19,174
Gold (thousand ounces) 164.4 156.7 552.5 579.3
Zinc (thousand tonnes) 10.5 11.2 38.6 49.4
Lead (thousand tonnes) 5.0 4.1 18.7 18.1
Copper (thousand tonnes) 1.3 2.4 5.3 8.7
CASH COSTS(2) ($/ounce)
Silver Segment(3) 14.41 9.74 12.72 11.51
Gold Segment(3) 1,077 963 1,113 899
AISC(2) ($/ounce)
Silver Segment(3) 17.79 13.57 16.48 15.62
Gold Segment(3)(4) 1,502 1,461 1,649 1,214
AVERAGE REALIZED PRICES(5)
Silver ($/ounce) 21.17 23.33 21.59 25.00
Gold ($/ounce) 1,736 1,792 1,792 1,792
Zinc ($/tonne) 2,878 3,352 3,472 2,997
Lead ($/tonne) 2,111 2,333 2,148 2,206
Copper ($/tonne) 7,957 9,545 8,979 9,297
(1) Per share amounts are based on basic weighted average common shares.
(2) Non-GAAP measure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further
information on these measures.
(3) Silver Segment Cash Costs and AISC are calculated net of credits for realized revenues from all metals other than silver ("silver segment
by-product credits"), and are calculated per ounce of silver sold. Gold segment Cash Costs and AISC are calculated net of credits for
realized silver revenues ("gold segment by-product credits"), and are calculated per ounce of gold sold.
(4) Gold Segment AISC was impacted by the Q2 2022 impairment of the Dolores mine, which added a $190 per ounce of NRV adjustments
to the 2022 Gold Segment AISC.
(5) Metal prices stated are inclusive of final settlement adjustments on concentrate sales.
Q4 2022 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts
are in thousands of U.S. dollars except number of shares, options,
warrants, and per share amounts, unless otherwise noted.
PAN AMERICAN SILVER CORP. 4
Fourth Quarter Consolidated Income Statements
(unaudited)
Three months ended
December 31,
2022 2021
Revenue $ 375,472 $ 422,170
Cost of sales
Production costs (252,271) (263,442)
Depreciation and amortization (79,281) (76,141)
Royalties (8,873) (6,548)
(340,425) (346,131)
Mine operating earnings 35,047 76,039
General and administrative (3,002) (8,255)
Exploration and project development (8,560) (4,076)
Mine care and maintenance (10,478) (9,266)
Foreign exchange gains (losses) 795 (5,646)
Gains on derivatives 5,818 1,638
Losses on sale of mineral properties, plant and equipment (1,134) (551)
Gain and income from associates — 289
Transaction and Integration costs (157,334) —
Other (expense) income (9,167) 2,530
(Loss) earnings from operations (148,015) 52,702
Investment income (loss) 1,247 (6,083)
Interest and finance expense (6,402) (3,484)
(Loss) earnings before income taxes (153,170) 43,135
Income tax expense (18,890) (28,471)
Net (loss) earnings $ (172,060) $ 14,664
Net (loss) earnings attributable to:
Equity holders of the Company (172,756) 14,036
Non-controlling interests 696 628
$ (172,060) $ 14,664
Other comprehensive (loss) earnings, net of taxes
Items that will not be reclassified to net (loss) earnings:
Unrealized loss on long-term investment 22,010 —
Income tax recovery related to long-term investments (4,619) —
Total other comprehensive loss $ 17,391 $ —
Total comprehensive (loss) earnings $ (154,669) $ 14,664
Total comprehensive (loss) earnings attributable to:
Equity holders of the Company $ (155,365) $ 14,519
Non-controlling interests 696 145
$ (154,669) $ 14,664
(Loss) earnings per share attributable to common shareholders
Basic (loss) earnings per share $ (0.82) $ 0.07
Diluted (loss) earnings per share $ (0.82) $ 0.07
Weighted average shares outstanding (in 000’s) Basic 210,573 210,348
Weighted average shares outstanding (in 000’s) Diluted 210,573 210,450
Q4 2022 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts
are in thousands of U.S. dollars except number of shares, options,
warrants, and per share amounts, unless otherwise noted.
PAN AMERICAN SILVER CORP. 5
Fourth Quarter Consolidated Statements of Cash Flows
(unaudited)
Three months ended
December 31,
2022 2021
Operating activities
Net (loss) earnings for the period $ (172,060) $ 14,664
Income tax expense 18,890 28,471
Depreciation and amortization 79,281 76,141
Net realizable value inventory charge 5,433 21,652
Gains and income from associates — (289)
Accretion on closure and decommissioning provision 3,710 1,864
Investment (income) loss (1,247) 6,083
Interest paid (2,213) (1,523)
Interest received 1,157 27
Income taxes paid (16,678) (22,810)
Other operating activities 697 3,481
Net change in non-cash working capital items (29,072) (9,663)
$ (112,102) $ 118,098
Investing activities
Payments for mineral properties, plant and equipment $ (72,362) $ (70,147)
Proceeds from disposition of mineral properties, plant and equipment 504 1,067
Proceeds from short-term investments — 455
Proceeds from derivatives 3,617 2,300
$ (68,241) $ (66,325)
Financing activities
Proceeds from common shares issued $ 97 $ 284
Distributions to non-controlling interests (269) (43)
Dividends paid (21,032) (21,032)
Proceeds from debt 163,800 —
Repayment of debt (1,643) (850)
Payment of equipment leases (3,703) (3,416)
$ 137,250 $ (25,057)
Effects of exchange rate changes on cash and cash equivalents (2,981) (675)
(Decrease) increase in cash and cash equivalents (46,074) 26,041
Cash and cash equivalents at the beginning of the period 153,079 257,509
Cash and cash equivalents at the end of the period $ 107,005 $ 283,550
About Pan American
Pan American owns and operates silver and gold mines located in Mexico, Peru, Canada, Argentina and Bolivia. We
also own the Escobal mine in Guatemala that is currently not operating. Pan American provides enhanced
exposure to silver through a large base of silver reserves and resources, as well as major catalysts to grow silver
production. We have a 29-year history of operating in Latin America, earning an industry-leading reputation for
sustainability performance, operational excellence and prudent financial management. We are headquartered in
Vancouver, B.C. and our shares trade on NASDAQ and the Toronto Stock Exchange under the symbol "PAAS".
Learn more at panamericansilver.com.
For more information contact:
Siren Fisekci
VP, Investor Relations & Corporate Communications
Ph: 604-806-3191
Email: [email protected]
Q4 2022 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts
are in thousands of U.S. dollars except number of shares, options,
warrants, and per share amounts, unless otherwise noted.
PAN AMERICAN SILVER CORP. 6
Technical Information
Scientific and technical information contained in this news release have been reviewed and approved by Martin Wafforn,
P.Eng., Senior Vice President Technical Services and Process Optimization, and Christopher Emerson, FAusIMM, Vice President
Business Development and Geology, each of whom is a Qualified Persons, as the term is defined in Canadian National
Instrument 43-101 - Standards of Disclosure of Mineral Projects.
For additional information about Pan American Silver's material mineral properties, please refer to Pan American Silver’s
Annual Information Form dated February 22, 2023, filed at www.sedar.com, or Pan American Silver's most recent Form 40-F
filed with the SEC.
In this news release, we refer to measures that are not generally accepted accounting principle ("non-GAAP") financial
measures. These measures are widely used in the mining industry as a benchmark for performance, but do not have a
standardized meaning as prescribed by IFRS as an indicator of performance, and may differ from methods used by other
companies with similar descriptions. These non-GAAP financial measures include:
• Cash Costs. Pan American's method of calculating cash costs may differ from the methods used by other entities and,
accordingly, Pan American's Cash Costs may not be comparable to similarly titled measures used by other entities.
Investors are cautioned that Cash Costs should not be construed as an alternative to production costs, depreciation
and amortization, and royalties determined in accordance with IFRS as an indicator of performance.
• Adjusted earnings and basic adjusted earnings per share. Pan American believes that these measures better reflect
normalized earnings as they eliminate items that in management's judgment are subject to volatility as a result of
factors, which are unrelated to operations in the period, and/or relate to items that will settle in future periods.
• All-in Sustaining Costs per silver or gold ounce sold, net of by-product credits ("AISC"). Pan American has adopted
AISC as a measure of its consolidated operating performance and its ability to generate cash from all operations
collectively, and Pan American believes it is a more comprehensive measure of the cost of operating our consolidated
business than traditional cash costs per payable ounce, as it includes the cost of replacing ounces through
exploration, the cost of ongoing capital investments (sustaining capital), general and administrative expenses, as well
as other items that affect Pan American's consolidated earnings and cash flow.
• Total debt is calculated as the total current and non-current portions of: long-term debt, finance lease liabilities and
loans payable. Total debt does not have any standardized meaning prescribed by GAAP and is therefore unlikely to
be comparable to similar measures presented by other companies. Pan American and certain investors use this
information to evaluate the financial debt leverage of Pan American.
• Net cash is calculated as cash and cash equivalents plus short-term investments, other than equity securities less
total debt.
• Working capital is calculated as current assets less current liabilities. Working capital does not have any standardized
meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other
companies. Pan American and certain investors use this information to evaluate whether Pan American is able to
meet its current obligations using its current assets.
• Total available liquidity is calculated as the sum of Cash and cash equivalents, Short-term Investments, and the
amount available on the Credit Facility. Total available liquidity does not have any standardized meaning prescribed
by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan
American and certain investors use this information to evaluate the liquid assets available to Pan American.
This news release should be read in conjunction with Pan American's Audited Consolidated Financial Statements and
Management's Discussion and Analysis for the year ended December 31, 2022, and the Company's Annual Information Form
for the year ended December 31, 2022. This material is available on Pan American’s website at panamericansilver.com, on
SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
Cautionary Note Regarding Forward-Looking Statements and Information
Certain of the statements and information in this news release constitute "forward-looking statements" within the meaning of
the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of
applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking
statements or information. Forward-looking statements or information in this news release relate to, among other things:
future financial or operational performance; our expectations with respect to completing the Transaction, the timing for the
Q4 2022 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Tabular amounts
are in thousands of U.S. dollars except number of shares, options,
warrants, and per share amounts, unless otherwise noted.
PAN AMERICAN SILVER CORP. 7