Pan American Silver Provides Operations Update in Response to COVID-19
Pan American Silver Provides Operations
Update in Response to COVID-19
VANCOUVER
,
April 1, 2020
/CNW/ -
Pan American Silver Corp.
(NASDAQ: PAAS) (TSX: PAAS)
("Pan American") announced today that
Mexico's
Ministry of Health has issued an Executive Order
for the immediate suspension of non-essential activities until
April 30, 2020
in response to the
COVID-19 pandemic. Following an initiative of reducing the number of people on site to increase
physical distancing, Pan American will now expand this program in order to bring its
La Colorada
and
Dolores
operations into compliance with the Executive Order. Pan American has also begun to
voluntarily reduce throughput by approximately 10% to 20% at its
Timmins
operation in
Canada
in
order to further enhance physical distancing throughout the operation, offices and personnel
transport systems.
Michael Steinmann
, President and Chief Executive Officer of Pan American, said: "We are carefully
monitoring new developments regarding the pandemic, implementing the preventative measures
recommended by health authorities and adapting our operations to government or company-led
directives. The efforts of our employees have been invaluable in helping us manage this very
challenging but temporary period, and I am grateful for their dedication."
As previously announced, Pan American has suspended normal operations at its mines in
Peru
,
Argentina
and
Bolivia
in order to comply with mandatory national quarantines. The governments in
those countries have declared that the quarantine periods are extended to
April 12, 2020
in
Peru
,
April 13, 2020
in
Argentina
and
April 15, 2020
in
Bolivia
. These quarantine periods may be extended
further as the situation in each country develops.
There are currently no confirmed cases of COVID-19 at any of Pan American's operations.
Pan American is continuing to conduct care and maintenance at the suspended operations to sustain
strict safety and environmental systems, and to ensure operational readiness when the government
restrictions are lifted and Pan American determines that it is safe to resume operations. While Pan
American's underground mines affected by the suspensions have ceased to produce metals during
this period, limited production continues at the open pit mines from circulation of process solutions on
the heap leach pad, which is necessary for care and maintenance of the operation.
Pan American is in a strong financial position to manage the current business environment. Cash and
cash equivalents at
December 31, 2019
totaled
$120.6 million
. In addition, Pan American has a
credit facility in the amount of
$500.0 million
that matures on
February 1, 2023
. At
December 31,
2019
,
$275.0 million
was drawn on the credit facility, of which
$15.0 million
was repaid in early
2020. In order to provide additional flexibility and liquidity, Pan American has deferred certain capital
expenditures and exploration spending. As well, Pan American's senior management team has
voluntarily agreed to a salary reduction until the situation normalizes, including a 20% reduction for
the executive management team.
As the situation regarding the COVID-19 pandemic is dynamic, Pan American is currently unable to
determine the impact on its 2020 operating guidance and will update its guidance for 2020 as soon
as it is practical.
Pan American continues to implement and enforce measures to protect the health and safety of its
personnel and communities that are consistent with those recommended by the local health
authorities and the World Health Organization. For more information, please see
panamericansilver.com/covid-19-response
.
About Pan American Silver
Pan American Silver is the world's second largest primary silver producer, providing enhanced
exposure to silver through a diversified portfolio of assets, large reserves and growing production.
We own and operate mines in
Mexico
,
Peru
,
Canada
,
Argentina
and
Bolivia
. In addition, we own the
Escobal mine in
Guatemala
that is currently not operating. Pan American Silver has a 25-year history
of operating in
Latin America
, earning an industry-leading reputation for operational excellence and
corporate social responsibility. 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
.
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, and may include future-oriented financial information. 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: the duration or extent of the
suspensions or voluntary reduction of activities at our operations, and the effect that any such
reductions or suspensions may have on our operations and our financial and operational results; the
ability of Pan American to continue with any operations in
Canada
, or to successfully maintain our
other operations on care and maintenance, or to restart or ramp-up these operations efficiently or
economically, or at all; whether Pan American is able to maintain a strong financial condition and
have sufficient capital, or have access to capital through our credit facility or otherwise, to sustain
our business and operations; the presence and impact of COVID-19 on our workforce, suppliers and
other essential resources and what effect those impacts, if they occur, would have on our business;
and whether we will be successful and able to continue with our efforts to protect our personnel,
communities and others in respect of our business.
These forward-looking statements and information reflect Pan American's current views with respect
to future events and are necessarily based upon a number of assumptions that, while considered
reasonable by Pan American, are inherently subject to significant operational, business, economic
and regulatory uncertainties and contingencies, and such uncertainty generally increases with longer-
term forecasts and outlook. These assumptions include: the world-wide economic and social impact
of COVID-19 is managed and the duration and extent of the coronavirus pandemic is minimized or
not long-term; tonnage of ore to be mined and processed; ore grades and recoveries; prices for
silver, gold and base metals remaining as estimated or return to sufficient levels; currency exchange
rates remaining as estimated; availability of funds for Pan American's projects and future cash
requirements; capital, decommissioning and reclamation estimates; our mineral reserve and
resource estimates and the assumptions upon which they are based; prices for energy inputs,
labour, materials, supplies and services (including transportation); no labour-related disruptions; no
unplanned delays or interruptions in scheduled development and production; all necessary permits,
licenses and regulatory approvals are received in a timely manner; our ability to secure and maintain
title and ownership to properties and the surface rights necessary for our operations; and our ability
to comply with environmental, health and safety laws. The foregoing list of assumptions is not
exhaustive.
Pan American cautions the reader that forward-looking statements and information involve known
and unknown risks, uncertainties and other factors that may cause actual results and developments
to differ materially from those expressed or implied by such forward-looking statements or
information contained in this news release and Pan American has made assumptions and estimates
based on or related to many of these factors. Such factors include, without limitation: the duration
and effects of the coronavirus and COVID-19, and any other pandemics on our operations and
workforce, and the effects on global economies and society; fluctuations in silver and gold prices;
fluctuations in prices for energy inputs, labour, materials, supplies and services (including
transportation); fluctuations in currency markets (such as the Canadian dollar, Peruvian sol, Mexican
peso, Argentine peso and Bolivian boliviano versus the U.S. dollar); operational risks and hazards
inherent with the business of mining (including environmental accidents and hazards, industrial
accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-
ins, flooding and severe weather); risks relating to the credit worthiness or financial condition of
suppliers, refiners and other parties with whom Pan American does business; inadequate insurance,
or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships
with, and claims by, local communities and indigenous populations; our ability to obtain all necessary
permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and
government practices, including environmental, export and import laws and regulations; changes in
national and local government, legislation, taxation, controls or regulations and political, legal or
economic developments in
Canada
,
the United States
,
Mexico
,
Peru
,
Argentina
,
Bolivia
,
Guatemala
or other countries where Pan American may carry on business, including legal restrictions relating to
mining, such as those in Chubut,
Argentina
, and the constitutional court-mandated ILO 169
consultation process in
Guatemala
; risks relating to expropriation; risk of liability relating to our past
sale of the Quiruvilca mine in
Peru
; diminishing quantities or grades of mineral reserves as properties
are mined; increased competition in the mining industry for equipment and qualified personnel; and
those factors identified under the caption "Risks Related to Pan American's Business" in Pan
American's most recent form 40-F and Annual Information Form filed with the United States
Securities and Exchange Commission and Canadian provincial securities regulatory authorities,
respectively. Although Pan American has attempted to identify important factors that could cause
actual results to differ materially, there may be other factors that cause results not to be as
anticipated, estimated, described or intended. Investors are cautioned against undue reliance on
forward-looking statements or information. Forward-looking statements and information are
designed to help readers understand management's current views of our near and longer term
prospects and may not be appropriate for other purposes. Pan American does not intend, nor does
it assume any obligation to update or revise forward-looking statements or information, whether as a
result of new information, changes in assumptions, future events or otherwise, except to the extent
required by applicable law.
SOURCE
Pan American Silver Corp.
View original content:
http://www.newswire.ca/en/releases/archive/April2020/01/c3687.html
%SEDAR: 00002432E
For further information:
Siren Fisekci, VP, Investor Relations & Corporate Communications, Ph:
604-806-3191, Email: [email protected]
CO: Pan American Silver Corp.
CNW 20:12e 01-APR-20