Pan American Silver Corp Q4 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Cosmos Chiu - CIBC Capital Markets - Analyst : Thanks, Michael and team, and thanks, George as well. Happy retirement, but maybe my first question is on your quarterly guidance, thanks, Michael, for providing us with the quarterly guidance, as we can see, it improves quarter over quarter. My question is it all I understand the second half is going to be better than first half, but do you see a big drop or improvement in terms of silver costs in Q4? Just wondering how you're going to get I think it's a fairly big drop even from Q3 into Q4 in terms all-in sustaining costs for silver?

Question: Cosmos Chiu - CIBC Capital Markets - Analyst : Great. Thank you. And then, Michael, as you mentioned, you know, there were a number of one-time items in your earnings in Q4, including Shahuindo, the crushing and agglomeration plant, $36.2 million write-down. I'm just wondering, was that something that you could have sold to. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 22, 2024 / 4:00PM, PAAS.TO - Q4 2023 Pan American Silver Corp Earnings Call

Question: Cosmos Chiu - CIBC Capital Markets - Analyst : Yeah, Okay. I'm just wondering, I know I used to cover Tahoe as well. I know it was no longer needed. I'm just wondering if it's something that cash just monitor and in terms of.

Question: Cosmos Chiu - CIBC Capital Markets - Analyst : And then maybe one last question on Dolores. As you mentioned, you know, mining will likely come to an end soon. If this is going to be a residual leach sort of operation. Can you maybe talk about the ongoing, what would you call maintenance costs or closure costs that you will you will need to spend? And then as you enter the closure period, what would you need to do in terms of ensuring the safety of site, the no structural integrity of the leach pads and making sure that no accidents kind of happen?

Question: Cosmos Chiu - CIBC Capital Markets - Analyst : Great. Thanks, Michael and Steve, but those are the questions I have. Thanks once again.

Question: John Tumazos - Very Independent Research - Analyst : Thank you for all the explanations. Michael, La Colorada skarn PDA was $2.8 billion of capital. If you go to 50,000 tonnes a day at $2.6 billion, if you stop at 30,000 tonnes a day is a big future item on the share buyback and potentially in 2024, maybe you have a lot of time. They're earning money in two, three, four, five years from now, you're heavy in the construction and La Colorada skarn, should we take this essentially as your expression of confidence, you're going to complete a JV with a base metal partner and that your share of the capital might be less than half of the PEA number or the subsequent studies are going to reduce that CapEx number and reduce your capital?

Question: John Tumazos - Very Independent Research - Analyst : Should we also take this perhaps is an expectation that the silver or the zinc prices might rebound to help your economics or the Escobal restarts in the Guatemala.

Question: John Tumazos - Very Independent Research - Analyst : Thank you.

Question: Craig Hutchison - TD Securities - Analyst : Hi, good morning, guys. Just like La Colorada, can you give us a sense of what the grades will be in the second half of this year, obviously is going to be a big inflection point. And how durable are those higher grades kind of going forward? Is it more of a year or two or is that a very short period of time? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 22, 2024 / 4:00PM, PAAS.TO - Q4 2023 Pan American Silver Corp Earnings Call

Question: Craig Hutchison - TD Securities - Analyst : Because of the plan from a throughput perspective is around 2000 tonnes a day as we should be modeling actually ledger?

Question: Craig Hutchison - TD Securities - Analyst : Okay, great. Just in terms of, I guess, the sort of free cash flow you guys going to generate here. Do you guys anticipate being free cash flow positive in the first half of this year? Given the higher taxes you have to pay salaries you weighted to the first half or is it sort of ROE? You anticipate free cash flow sort of more of a second-half story.

Question: Craig Hutchison - TD Securities - Analyst : Okay, great. Thanks, guys.

Question: Don DeMarco - National Bank Financial - Analyst : Thank you, operator, and good morning, Michael and team. So first question that you had some strong cost performance in Q4 at a couple of your flagship mines, both quarter on quarter and relative to 2024 guidance. That's I'm referring to LTE on Q4, A6 1178 midpoint guidance is 1250, Jacobina 1022 and the midpoint of the ;24 guidance is 1,300. So in light of this Q4, are you feeling more confident on guidance at these mines, maybe even tracking the lower end of the ranges?

Question: Don DeMarco - National Bank Financial - Analyst : Okay, thank you. So just shifting to Escobal, then the ILO consultation meetings resumed and meeting was held yesterday. It's good to hear that the new minister was present. Is there any feedback from this initial meeting or insight into the next meeting or any next steps? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 22, 2024 / 4:00PM, PAAS.TO - Q4 2023 Pan American Silver Corp Earnings Call

Question: Don DeMarco - National Bank Financial - Analyst : Okay. Fair enough. And final question then with producer valuations and where they are in the market right now is call it depressed. Are your plans for asset divestment maybe de-prioritized until now valuations recover?

Question: Don DeMarco - National Bank Financial - Analyst : Okay. And just as a follow-up to that, I think La Arena to sulphide project has been mentioned as a candidate. Others certainly are. Can you share any color on what might be the sort of top candidates for divestment consideration?

Question: Don DeMarco - National Bank Financial - Analyst : Okay. Thank you, Michael, and good luck with the rest of Q1. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 22, 2024 / 4:00PM, PAAS.TO - Q4 2023 Pan American Silver Corp Earnings Call