Unaudited tabular amounts are in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts
Q3 2018 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
Pan American Silver Reports Cash from Operating Activities of $41.7 million in Q3 2018
Vancouver, B.C. - November 6, 2018 - Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) today reported unaudited
results for the third quarter ended September 30, 2018 ("Q3 2018"). Pan American Silver’s unaudited condensed interim
consolidated financial statements and notes ("financial statements"), as well as Pan American Silver’s Management's
Discussion and Analysis ("MD&A") as at and for the three and nine months ended September 30, 2018, are available on
Pan American Silver’s website at www.panamericansilver.com and on SEDAR at www.sedar.com.
• Decreased metal prices, including their effect on net realizable value ("NRV") inventory adjustments, impacted
financial results in Q3 2018
• Revenue of $187.7 million, which was reduced approximately $9.8 million by negative settlement adjustments
on concentrate shipments
• Cash from operating activities of $41.7 million
• Net loss of $9.2 million, equivalent to $0.06 basic loss per share
• Adjusted loss of $4.7 million, equivalent to $0.03 basic adjusted loss per share, impacted by approximately
$23.4 million in negative NRV inventory adjustments
• Cash and short-term investment balance of $252.7 million, up $2.4 million from June 30, 2018
“We continue to generate strong cash flow, which increased our cash and short-term investment balance at the end of
the quarter to $252.7 million, despite realizing the lowest metal prices of the year," said Michael Steinmann, President
and Chief Executive Officer of the Company. "The depressed metal prices had a significant impact on both settlement
adjustments on concentrate shipments and NRV inventory adjustments, which together reduced earnings in the quarter
by approximately $33.2 million."
Added Mr. Steinmann: "Operationally, our La Colorada asset is exceeding expectations. The expansion is performing
above design capacity, achieving record quarterly silver production of two million ounces in Q3 2018. We are also
excited by the recent exploration discovery, which will very positively impact the future of this mine."
Consolidated Q3 2018 Highlights:
• Production on track - Silver production was 6.3 million ounces and gold production was 42.1 thousand ounces.
Zinc, lead and copper production were 16.7 thousand tonnes, 5.7 thousand tonnes, and 2.6 thousand tonnes,
respectively. The Company is on track to achieve the annual 2018 production guidance.
• Cash costs per payable ounce of silver, net of by-product credits, ("cash costs") were $5.24 per ounce and
reflect lower by-product credits, primarily from decreased base metal prices, and higher operating costs,
primarily due to the expanded operations at our Mexican mines. Partially offsetting the increases to cash costs
were lower direct selling costs from improved contract terms for concentrate treatment and refining.
• All-in sustaining costs per silver ounce sold (“AISCSOS”) were $13.73. Excluding non-cash NRV inventory
adjustments, AISCSOS were $10.05. Based on YTD 2018 cash costs and AISCSOS, the Company is on track to
achieve the annual 2018 cash costs and AISCSOS guidance, as previously lowered on August 8, 2018.
Q3 2018 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
• Solid balance sheet - At September 30, 2018, the Company had a cash and short-term investment balance of
$252.7 million, working capital of $443.6 million, and $300.0 million available under its undrawn revolving
credit facility. Total debt of $8.4 million was related entirely to finance lease liabilities.
• COSE and Joaquin projects - Both projects remain on budget with $5.3 million invested during Q3 2018. The
COSE project is progressing on schedule. At Joaquin, development of the decline has returned to planned levels
after successfully negotiating an area of unexpectedly difficult ground conditions. The delay may result in
extending completion of the project by approximately two months.
• Quarterly cash dividend - The Board of Directors has approved a cash dividend of $0.035 per common share, or
approximately $5.4 million in aggregate cash dividends, payable on or about November 30, 2018, to holders of
record of Pan American Silver’s common shares as of the close on November 19, 2018. Pan American Silver's
dividends are designated as eligible dividends for the purposes of the Income Tax Act (Canada). As is standard
practice, the amounts and specific distribution dates of any future dividends will be evaluated and determined
by the Board of Directors on an ongoing basis.
Cash costs, AISCSOS, adjusted earnings, basic adjusted earnings per share, and working capital 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.
Q3 2018 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
September 30,
2018
December 31,
2017
Shares outstanding (millions) 153,318 153,303
Three months ended
September 30,
Nine months ended
September 30,
2018 2017 2018 2017
FINANCIAL
Revenue $187,717 $190,791 $611,138 $590,797
Mine operating (loss) earnings -$4,412 $47,818 $105,563 $125,475
Net (loss) earnings -$9,234 $17,826 $75,618 $73,787
Per share (1) -$0.06 $0.11 $0.48 $0.47
Adjusted (loss) earnings (2) -$4,673 $23,318 $61,456 $54,613
Per share (1) -$0.03 $0.15 $0.40 $0.36
Net cash generated from operating activities $41,699 $63,793 $143,048 $145,268
Net cash generated from operating activities before
changes in working capital (2) $37,515 $56,878 $142,412 $148,752
Sustaining capital expenditures $24,276 $18,765 $73,900 $55,753
Project capital expenditures $8,346 $17,923 $29,444 $47,778
Dividend per share $0.035 $0.025 $0.105 $0.075
OPERATIONAL
Production
Silver (thousand ounces) 6,253 5,893 18,649 18,400
Gold (thousand ounces) 42.1 40.8 141.7 116.3
Zinc (thousand tonnes) 16.7 14.1 46.3 40.6
Lead (thousand tonnes) 5.7 5.3 16.1 16.1
Copper (thousand tonnes) 2.6 3.7 7.6 10.4
Average realized prices
Silver ($/ounce) 14.88 16.68 15.98 17.12
Gold ($/ounce) 1,212 1,277 1,283 1,250
Zinc ($/tonne) 2,472 2,974 2,981 2,801
Lead ($/tonne) 2,072 2,421 2,286 2,309
Copper ($/tonne) 6,105 6,351 6,641 5,992
Cash costs (per payable ounce of silver, net of by-
product credits) (2) $5.24 $3.12 $2.45 $5.04
All-in sustaining costs per silver ounce sold(2) $13.73 $8.69 $9.21 $10.77
All-in sustaining costs per silver ounce sold, excluding
NRV inventory adjustments(2) $10.05 $8.43 $8.59 $10.38
(1) Per share amounts are based on basic weighted average common shares.
(2) Non- GAAP measures: adjusted (loss) earnings, basic adjusted (loss) earnings per share, net cash generated from operating
activities before changes in working capital, cash costs, and all-in sustaining costs per silver ounce sold (inclusive and exclusive of
NRV inventory adjustments) 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.
Q3 2018 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
MINE OPERATING RESULTS
Three months ended September 30, 2018 Three months ended September 30, 2017
Production
Cash Costs(1)
Production
Cash Costs(1) Ag (Moz) Au (koz) Ag (Moz) Au (koz)
La Colorada 2.0 1.1 $3.50 1.8 1.2 $1.71
Dolores 1.0 33.1 $1.00 1.0 25.0 -$0.57
Huaron 0.9 0.2 $3.25 0.9 0.3 $0.31
Morococha(2) 0.8 0.4 -$0.65 0.6 1.1 -$8.16
San Vicente(3) 0.9 0.1 $11.14 0.8 0.1 $12.99
Manantial Espejo 0.7 7.1 $16.50 0.7 13.2 $12.73
TOTAL 6.3 42.1 $5.24 5.9 40.8 $3.12
Totals may not add up due to rounding.
(1) Cash costs is a non-GAAP measure. Please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for
further information on this measure.
(2) Morococha data represents Pan American Silver's 92.3% interest in the mine's production.
(3) San Vicente data represents Pan American Silver's 95.0% interest in the mine's production.
Q3 2018 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
2018 GUIDANCE
Pan American Silver is maintaining the guidance provided on August 8, 2018, except for project capital. Estimated
project capital in 2018 has been reduced to $40 million from $50 million due to timing of expenditures. Annual forecasts
for 2018 cash costs, AISCSOS and copper production were revised on August 8, 2018, from the estimates provided in our
news release dated January 11, 2018.
The following table provides our current guidance for 2018 and our original guidance as at January 11, 2018:
Guidance as at
Nov. 6, 2018
Guidance as at
Jan. 11, 2018
Production
Silver (million ounces) 25.0 - 26.5 25.0 - 26.5
Gold (thousand ounces) 175 - 185 175 - 185
Zinc (thousand tonnes) 60.0 - 62.0 60.0 - 62.0
Lead (thousand tonnes) 21.0 - 22.0 21.0 - 22.0
Copper (thousand tonnes) 9.0 - 10.4 12.0 - 12.5
Cash Costs(1)($/ounce) 2.80 - 3.80 3.60 - 4.60
AISCSOS(1) ($) 8.50 - 10.00 9.30 - 10.80
Sustaining capital ($millions) 100 - 105 100 - 105
Project capital ($millions) 40 50
Assumptions used to forecast total cash costs and AISCSOS
Forecast metal prices for 2nd half of 2018
Silver ($/ounce) 16.50
Gold ($/ounce) 1,250
Zinc ($/tonne) 2,600
Lead ($/tonne) 2,300
Copper ($/tonne) 6,200
Average annual exchange rates relative to 1.00 U.S. dollar
Mexican peso 18.50
Peruvian sol 3.23
Argentine peso 27.00
Bolivian boliviano 7.00
(1) Cash Costs and AISCSOS are non-GAAP measures. Please refer to the “Alternative Performance (non-GAAP) Measures” section of
this news release for further information on these measures.
Q3 2018 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
Third Quarter 2018 Unaudited Results Conference Call and Webcast
Date: November 7, 2018
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: www.panamericansilver .com
Callers should dial in 5 to 10 minutes prior to the scheduled start time. The live webcast and presentation slides will be
available on the Company's website at www.panamericansilver.com. An archive of the webcast will also be available for three
months.
Corporate Office:
625 Howe Street, Suite 1440
Vancouver, British Columbia
V6C 2T6 Canada
Tel: +1 604 684-1175
Fax: +1 604 684-0147
About Pan American Silver
Pan American Silver Corp. 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 six mines in
Mexico, Peru, Argentina and Bolivia. Pan American Silver maintains a strong balance sheet, has an established
management team with proven operating expertise, and is committed to responsible development. Founded in 1994,
the Company is headquartered in Vancouver, B.C. and our shares trade on NASDAQ and the Toronto Stock Exchange
under the symbol "PAAS".
For more information, visit: www.panamericansilver.com.
For more information contact:
Siren Fisekci
VP , Investor Relations & Corporate Communications
Ph: 604-806-3191
Email: ir@panamericansilver .com
Q3 2018 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
Technical Information
Scientific and technical information contained in this news release has been reviewed and approved by Martin Wafforn,
P .Eng., Senior Vice President Technical Services and Processing Optimization, and Christopher Emerson, FAusIMM, Vice
President Business Development and Geology, each of whom are Qualified Persons, as the term is defined in NI
Canadian National Instrument 43-101 - Standards of Disclosure of Mineral Projects.
For more detailed information regarding the Company’s material mineral properties and technical information related
thereto, including a complete list of current technical reports applicable to such properties, please refer to the
Company’s Annual Information Form dated March 22, 2018, 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:
• Cash costs per payable ounce of silver, net of by-product credits ("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.
• 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.
• All-in sustaining costs per silver ounce sold ("AISCSOS"). The Company has adopted AISCSOS 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 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.
Q3 2018 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
Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of the Company’s Management's
Discussion and Analysis for the period ended September 30, 2018, 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, including our estimated production of silver, gold
and other metals in 2018, our estimated cash costs and AISCSOS in 2018, and our expectations with respect to future
metal prices and exchange rates; the ability of the Company to successfully complete any capital investment programs
and projects, including the COSE and Joaquin projects, whether on time, or on or below budget, the expected economic
or operational results derived from those programs and projects, and the impacts of any such programs and projects on
the Company, including with respect to production, associated operational efficiencies and economic returns; and the
approval of or the amount of any future cash dividends.
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: 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 mineral 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 our
mine sites or maintain safe access to our mine sites due to criminal activity and violence; 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: 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 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 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; legal