Pan American Silver reports net income of $0.34 per share in Q2 2021 and increases quarterly dividend by 43% to $0.10 per common share
Pan American Silver reports net income of $0.34 per share in Q2 2021 and increases quarterly
dividend by 43% to $0.10 per common share
Vancouver, B.C. - August 10, 2021 - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American" or
the "Company") today reported unaudited results for the quarter ended June 30, 2021 ("Q2 2021"). Pan
American's unaudited condensed interim consolidated financial statements ("financial statements"), as well as Pan
American’s management's discussion and analysis ("MD&A") for the three and six months ended June 30, 2021 ,
are available on Pan American’s website at panamericansilver.com and on SEDAR at www.sedar.com.
“Strong mine operating earnings of $103 million and strong operating cash flow in Q2 have further improved our
financial position. Together with the sale of non-core assets, our cash and short-term investments increased by
$34 million in Q2," said Michael Steinmann, President and Chief Executive Officer. "We expect cash flows to
further improve in the second half of the year, with the anticipated rise in throughput rates at La Colorada along
with the normalization of inventory levels that were built up during the first half of 2021. Based on our strong
financial position and our expectation for improving free cash flow over the remainder of the year, we are
increasing the quarterly dividend to $0.10 per common share. This marks the third dividend hike in the past 18
months."
Added Mr. Steinmann: "At La Colorada, we have now restored ventilation in the high-grade area of the mine,
allowing underground development and throughput to ramp up over the coming months, together with an
improvement in grades."
Q2 2021 Highlights:
• Consolidated silver production was 4.5 million ounces, primarily impacted by reduced production at La
Colorada due to ventilation constraints. In July 2021, the Company successfully cleared the blockage that
formed during the Q1 2021 commissioning of the surface to 345 metre level primary ventilation raise,
which relieves the ventilation-driven constraints that have impacted development and mining rates at La
Colorada. Mine development is now underway to enable throughput rates to increase and mine
sequencing into higher grades, with production anticipated to rise through the remainder of 2021. Q2
2021 silver production was also impacted by the expected transition in mine sequencing into higher gold
grades and lower silver grades as well as the timing of leach kinetics and heap sequencing at Dolores, and
COVID-19 related protocols limiting workforce deployment levels. The Company is reaffirming its annual
silver production forecast for 2021 of 20.5 to 22.0 million ounces.
• Consolidated gold production of 142.3 thousand ounces benefited from mine sequencing into higher
grades at Dolores and La Arena. A buildup of 23.8 thousand ounces of in-heap inventory occurred at
Dolores and Shahuindo, the majority of which is expected to be recognized as production in the second
half of 2021. The Company is reaffirming its annual gold production forecast for 2021 of 605.0 to 655.1
thousand ounces.
• Revenue of $382.1 million was impacted by the following factors: (i) delays in revenue recognition for the
La Colorada concentrate stockpiled in Q1 2021 due to shipping schedules; (ii) a ramp-up in production
toward the end of Q2 2021 at the Company's open pit gold mines that was not recorded in dore sales due
to timing; and (iii) a build-up of in-heap gold inventories from the timing of leach kinetics at Dolores and
Shahuindo. These issues are transitory and are expected to result in higher revenue and cash flows over
the remainder of 2021.
• Net income was $71.2 million ($0.34 basic income per share), driven largely by strong mine operating
earnings of $103.0 million.
• Adjusted income was $46.6 million ($0.22 basic adjusted income per share). In addition to removing the
$10.6 million of investment income, mostly related to the Company’s interest in New Pacific Metals Corp.,
Q2 2021 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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
the other primary adjustments were removal of a $4.1 million gain on the sale of assets and removal of
$5.2 million in income for the effect of foreign exchange on taxes.
• Net cash generated from operations of $87.1 million includes $37.0 million use of cash from working
capital changes, driven mainly by the inventory build noted above. Concentrate and dore inventories
increased by $45.1 million during the first half of 2021, which are expected to normalize and be a source
of cash flow during the second half of 2021. In addition, heap leach inventories increased by $47.0 million
during the first half of 2021.
• Silver Segment Cash Costs and All-in Sustaining Costs ("AISC") per silver ounce were $12.71 and $16.36,
respectively. Silver Segment Cash Costs reflect lower gold by-product credits from the move of Dolores
into the Gold Segment in 2021, an increase in treatment and refining charges due to increased
contribution from concentrate mines, and an increase in royalties, primarily at San Vicente. Silver Segment
AISC included $4.19 per ounce of sustaining capital, impacted by spending on the critical ventilation work
at La Colorada. Additionally, both Cash Costs and AISC were impacted by costs associated with COVID-19
protocols, and inflationary pressures on energy, wages and consumables.
• Gold Segment Cash Costs and AISC per gold ounce were $857 and $1,163, respectively. Gold Segment
Cash Costs benefited from the move of Dolores to the Gold Segment and the current mine sequencing at
La Arena resulting in higher mining rates and grades. Cash Costs were negatively impacted by geotechnical
conditions at Bell Creek preventing access to higher grade zones and increased waste mining rates at
Shahuindo. Gold Segment AISC included $324 per ounce of sustaining capital, reflecting an increase in
spending as the Company catches up on projects deferred due to COVID-19. Additionally, both Cash Costs
and AISC were impacted by costs associated with COVID-19 protocols, strengthening of the Canadian
dollar, and inflationary pressures on energy, wages and consumables.
• Consolidated AISC, including gold by-product credits from the Gold Segment mines, were $1.42 per silver
ounce sold.
• Capital expenditures of $66.0 million were comprised of $53.2 million of sustaining capital and $12.8
million of non-sustaining capital. The majority of non-sustaining capital was directed to project capital for
exploration drilling activities at the La Colorada skarn project and the Wetmore project at Timmins.
• Pan American realized cash proceeds of $14.0 million from the sale of a portfolio of royalties and the
receipt of non-refundable deposits for the sale of the Waterloo exploration stage asset. The sale of
Waterloo closed in early July, and the $22.7 million in cash received has been recorded in the third quarter
of 2021. The Company retained a 2% Net Smelter Royalty on any future production from the Waterloo
asset.
• At June 30, 2021, Pan American had cash and short-term investment balances of $240.4 million, working
capital of $603.1 million, and $500.0 million available on its revolving credit facility (the "Credit Facility").
In addition, the Company has an equity investment in Maverix Metals Inc. that was valued at $140.0
million based on the June 30, 2021 closing share price of $5.39 on the New York Stock Exchange. Total
debt of $47.7 million was related to equipment leases and construction loans.
• The Company recently entered into an amendment agreement to amend and extend its Credit Facility
into a $500 million sustainability-linked revolving credit facility (the “Sustainability-Linked Loan”). The 4-
year, Sustainability-Linked Loan features a pricing mechanism that allows for adjustments on drawn and
undrawn balances based on third-party sustainability performance ratings, which aligns the Company’s
Environmental, Social and Governance ("ESG") performance to its cost of capital, thereby demonstrating
its commitment to ESG practices and responsibilities. The Sustainability-Linked Loan remains fully
undrawn.
• The Board of Directors has approved an increase in the cash dividend from $0.07 to $0.10 per common
share, or approximately $21.0 million in aggregate cash dividends, payable on or about September 3,
2021, to holders of record of Pan American’s common shares as of the close on August 23, 2021.
Q2 2021 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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
• Pan American is reaffirming its Guidance for 2021 annual metal production, cash costs and AISC, as
revised on May 12, 2021. The guidance incorporates the impact of comprehensive COVID-19 protocols,
which increase costs and restrict throughput levels, especially at our underground mines. Estimates for
capital project expenditures also reflect the deferral of some spending from 2020 into 2021. Inflation
driven increases in energy, wages and consumables are within guidance assumptions. See the "2021
Guidance" section of this news release for further details, and the Company's MD&A for the three and six
months ended June 30, 2021.
Cash Costs, AISC, adjusted earnings, basic adjusted earnings per share, sustaining capital, project capital, working capital, and
total debt are not generally accepted accounting principle ("non-GAAP") financial measures. Please refer to the "Alternative
Performance (non-GAAP) Measures" section of this news release for further information on these measures.
Q2 2021 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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
Three months
ended
Twelve months
ended
June 30,
2021
December 31,
2020
Weighted average shares during period (millions) 210.3 210.1
Shares outstanding end of period (millions) 210.3 210.3
Three months ended
June 30,
2021 2020
FINANCIAL
Revenue $ 382,132 $ 249,509
Mine operating earnings $ 103,048 $ 48,386
Net income $ 71,241 $ 19,412
Basic income per share(1) $ 0.34 $ 0.10
Adjusted income(2) $ 46,625 $ 11,093
Basic adjusted income per share(1) $ 0.22 $ 0.05
Net cash generated from operating activities $ 87,143 $ 62,750
Net cash generated from operating activities before changes in working capital(2) $ 124,158 $ 31,479
Sustaining capital expenditures(2) $ 53,225 $ 23,479
Non-sustaining capital expenditures(2) $ 12,799 $ 9,836
Cash dividend per share $ 0.07 $ 0.05
PRODUCTION
Silver (thousand ounces) 4,484 2,791
Gold (thousand ounces) 142.3 96.6
Zinc (thousand tonnes) 12.4 4.3
Lead (thousand tonnes) 4.8 1.7
Copper (thousand tonnes) 2.1 0.3
CASH COSTS(2) ($/ounce)
Silver Segment(3) 12.71 6.23
Gold Segment(4) 857 905
AISC(2) ($/ounce)
Silver Segment(3) 16.36 12.54
Gold Segment(4) 1,163 1,015
Consolidated per silver ounce sold(5) 1.42 (3.14)
Consolidated before NRV inventory adjustments 3.21 (3.62)
AVERAGE REALIZED PRICES(6)
Silver ($/ounce) 26.88 16.58
Gold ($/ounce) 1,809 1,708
Zinc ($/tonne) 2,935 1,791
Lead ($/tonne) 2,151 1,643
Copper ($/tonne) 9,679 5,217
(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) As of Q1 2021, Dolores was moved from the Silver Segment to the Gold Segment due to the expected mine sequencing into a higher
gold zone of the mine. 2021 Silver Segment is comprised of the following operations: La Colorada, Huaron, Morococha, San Vicente and
Manantial Espejo. The 2020 Silver Segment metrics include Dolores.
(4) 2021 Gold Segment is comprised of the following operations: Dolores, Shahuindo, La Arena and Timmins. The 2020 Gold Segment
metrics exclude Dolores.
(5) Consolidated per silver ounce sold is based on total silver ounces sold and are net of by-product credits, including gold revenues.
Corporate general and administrative expense and exploration and project development expense are included in Consolidated AISC,
but not allocated amongst the operations and thus are not included in either the silver or gold segment totals.
(6) Metal prices stated are inclusive of final settlement adjustments on concentrate sales.
Q2 2021 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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
INDIVIDUAL MINE OPERATING PERFORMANCE
Silver Production
(ounces ‘000s)
Gold Production
(ounces ‘000s)
Three months ended
June 30,
Three months ended
June 30,
2021 2020 2021 2020
La Colorada 1,099 801 0.7 0.6
Huaron 903 211 0.3 0.1
Morococha(1) 568 47 0.3 0.0
San Vicente(2) 601 265 0.1 0.0
Manantial Espejo 635 503 8.1 3.5
Dolores 612 915 43.3 17.7
Shahuindo 54 40 30.3 26.8
La Arena 9 5 23.7 13.7
Timmins 4 4 35.6 34.2
Total 4,484 2,791 142.3 96.6
(1) Morococha data represents Pan American 92.3% interest in the mine's production.
(2) San Vicente data represents Pan American 95.0% interest in the mine's production.
Cash Costs(1)
($ per ounce)
AISC(1)
($ per ounce)
Three months ended
June 30,
Three months ended
June 30,
2021 2020 2021 2020
La Colorada 4.52 7.13 12.42 12.56
Dolores(2) - 2.23 - 12.95
Huaron 5.11 3.93 9.47 6.61
Morococha 11.35 12.90 15.42 17.42
San Vicente 19.76 2.61 21.06 4.52
Manantial Espejo 25.30 16.24 24.47 16.54
Silver Segment Consolidated(2)(3) 12.71 6.23 16.36 12.54
Dolores(2) 602 - 716 -
Shahuindo 762 632 1,160 747
La Arena 720 1,082 1,244 1,259
Timmins 1,352 1,092 1,676 1,171
Gold Segment Consolidated(2)(3) 857 905 1,163 1,015
Consolidated AISC per silver ounce sold(4) 1.42 (3.14)
Consolidated AISC before NRV inventory adjustments 3.21 (3.62)
(1) Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of the
MD&A for the period ended June 30, 2021 for a detailed description of these measures and where appropriate a reconciliation of the
measure to the Q2 2021 financial statements.
(2) Due to the expected mine sequencing into a higher gold zone of the mine plan at Dolores, the Company has determined that the mine
is better identified as a Gold Segment operation from 2021 onwards. Thus, as of Q1 2021, Cash Costs and AISC at Dolores are reported
on a per ounce of gold basis and included as part of the Gold Segment Cash Costs and AISC calculations. Dolores Cash Costs and AISC in
the 2020 comparable period were reported on a per ounce of silver basis and included as part of the Silver Segment Cash Costs and
AISC calculations, as previously reported. For comparison purposes, had Dolores been reported in the Gold Segment in 2020, Gold
Segment Cash Costs and AISC for Q2 2020 would have been $923 and $1,133, respectively, and Silver Segment Cash Costs and AISC for
Q2 2020 would have been $9.16 and $12.24, respectively.
(3) Silver Segment Cash Costs and AISC are calculated net of credits for realized revenues from all metals other than silver ("silver segment
by-product credits"), and are calculated per ounce of silver sold. Gold Segment Cash Costs and AISC are calculated net of credits for
realized silver revenues ("gold segment by-product credits"), and are calculated per ounce of gold sold.
(4) Consolidated AISC is calculated per silver ounce sold with total gold revenues included within by-product credits. Corporate general
and administrative expense and exploration and project development expense are included in Consolidated AISC, but not allocated
amongst the operations and thus are not included in either the silver or gold segment totals.
Q2 2021 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited tabular amounts
are in thousands of U.S. dollars except number of shares, options, warrants, and per share
amounts, unless otherwise noted.
PAN AMERICAN SILVER CORP. 5
2021 GUIDANCE
The following tables provide management's guidance for 2021, as at August 10, 2021. Management is reaffirming
its guidance for annual 2021 production, Cash Costs, AISC and capital expenditures, as revised on May 12, 2021.
The guidance reflects Management's expectation that production will be weighted to the backend of 2021.
These estimates are forward-looking statements and information that are subject to the cautionary note
associated with forward-looking statements and information at the end of this news release.
Annual Production Guidance
Silver – Moz 20.50 - 22.00
Gold – koz 605.0 - 655.1
Zinc – kt 55.5 - 60.5
Lead – kt 21.0 - 23.5
Copper – kt 8.5 - 9.0
Cash Costs and AISC Guidance
Cash Costs(1)(2)
($ per ounce)
AISC(1)(2)
($ per ounce)
Silver Segment Total(3) 9.60 - 11.60 14.25 - 15.75
Gold Segment Total(3) 825 - 925 1,135 - 1,250
Consolidated Silver Basis(4) (2.80) - 2.70
(1) Cash Costs and AISC are non-GAAP measures. Please refer to the "Alternative Performance (non-GAAP) Measures" section of this news
release for further information on these measures.
(2) The Cash Costs and AISC forecasts assume realized metal prices for H1 2021 and the following metal prices for the remainder of 2021:
24.00/oz for silver, $2,850/tonne ($1.28/lb) for zinc, $2,000/tonne ($0.91/lb) for lead, $9,500/tonne ($4.20/lb) for copper, and $1,750/
oz for gold; and average annual exchange rates relative to 1 USD of 20.00 for the Mexican peso ("MXN"), 3.50 for the Peruvian sol
("PEN"), 96.67 for the Argentine peso ("ARS"), 7.00 for the Bolivian boliviano ("BOB"), and $1.25 for the Canadian dollar ("CAD").
(3) Corporate general and administrative expense, and exploration and project development expense are included in Consolidated Silver
Basis AISC, but are not allocated amongst the operations and thus are not included in either the silver or gold segment totals.
(4) Consolidated Silver Basis AISC is calculated per silver ounce sold with gold revenues included in the by-product credits.
Capital Expenditures Guidance
(in millions of USD)
Sustaining Capital 230.0 - 245.0
Project Capital 55.0 - 60.0
Total Capital 285.0 - 305.0
Second Quarter 2021 Unaudited Results Conference Call and Webcast
Date: August 11, 2021
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: panamericansilver.com
The live webcast, presentation slides and the Q2 2021 report will be available at panamericansilver.com. An
archive of the webcast will also be available for three months.
Q2 2021 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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
About Pan American Silver
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 27-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]
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 are 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's material mineral properties, please refer to Pan American’s Annual
Information Form dated February 17, 2021, filed at www.sedar.com, or the Company's most recent
Form 40-F filed with the SEC.
Alternative Performance (Non-GAAP) Measures
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:
• Adjusted earnings and basic adjusted earnings per share. The Company 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.
• Cash Costs. The Company's method of calculating cash costs may differ from the methods used by other entities and,
accordingly, the Company'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.
• All-in Sustaining Costs per silver or gold ounce sold, net of by-product credits. The Company has adopted AISC as a
measure of its consolidated operating performance and its ability to generate cash from all operations collectively,
and the Company 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 the Company'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. The Company and certain investors use this
information to evaluate the financial debt leverage of the Company.
• 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
Q2 2021 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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
companies. The Company and certain investors use this information to evaluate whether the Company is able to
meet its current obligations using its current assets.
Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of the Company’s Management's
Discussion and Analysis for the period ended December 31, 2020, for a more detailed discussion of these and other non-GAAP
measures and their calculation.
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, and estimates of current production levels including our estimated production of
silver, gold and other metals forecasted for 2021, and our estimated Cash Costs, AISC and expenditures in 2021; estimated
cash flows in the second half of the year; future anticipated prices for gold, silver and other metals and assumed foreign
exchange rates; the amount and timing of any future sales of inventory; the impact of completion of ventilation work at the La
Colorada mine; the anticipated increase in development and throughput rates at the La Colorada mine, as well as the
expected improvement in grades; expectations with respect to the future anticipated impact of COVID-19 on our operations;
whether Pan American is able to maintain a strong financial condition and have sufficient capital, or have access to capital
through our corporate credit facility or otherwise, to sustain our business and operations; and the ability of Pan American to
successfully complete any capital and development projects, including the La Colorada skarn project, the expected economic
or operational results derived from those projects, and the impacts of any such projects on Pan American.
These forward-looking statements and information reflect the Company's current views with respect to future events and are
necessarily based upon a number of assumptions that, while considered reasonable by the Company, are inherently subject to
significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: the
world-wide economic and social impact of COVID-19 is managed and the duration and extent of the COVID-19 pandemic is
minimized or not long-term; assumptions related to the global supply of COVID-19 vaccines and the roll-out in each country,
and the effectiveness and results of any vaccines, the lessening or increase in pandemic-related restrictions, and the
anticipated rate and timing for the same; continuation of operations following shutdowns or reductions in production, if
applicable, our ability to manage reduced operations efficiently and economically, including to maintain necessary staffing;
tonnage of ore to be mined and processed; ore grades and recoveries; prices for silver, gold and base metals remaining as
estimated; currency exchange rates remaining as estimated; 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 at any of our operations; no unplanned delays
or interruptions in scheduled production; all necessary permits, licenses and regulatory approvals for our operations 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.
The Company 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 the Company has made
assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the
duration and effects of COVID-19, and any other pandemics on our operations and workforce, and the effects on global
economies and society; fluctuations in silver, gold and base metal prices; fluctuations in prices for energy inputs, labour,
materials, supplies and services (including transportation); fluctuations in currency markets (such as the PEN, MXN, ARS, BOB,
GTQ and CAD versus the USD); 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 the Company 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 in the jurisdictions where we operate, 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
the Company may carry on business, including legal restrictions relating to mining, including in Chubut, Argentina, risks
Q2 2021 NEWS RELEASE
All amounts expressed in U.S. dollars unless otherwise indicated. Unaudited 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. 8