Pan American hits 2022 production guidance

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Pan American Silver Corp. [PAAS-TSX, NASDAQ] has announced its preliminary 2022 production results. The company produced 18.5 million ounces of silver, which was within its previously announced guidance range of between 18.0-18.5 million ounces provided on November 9, 2022.

Consolidated gold production in 2022 of 552,500 ounces was also within its guidance range of between 550,000 and 605,000 ounces provided on February 23, 2022.

Pan American also produced approximately 38,000 tonnes of zinc, 18,000 tonnes of lead and 5,000 tonnes of copper in 2022.

“I am very pleased with our team’s efforts to deliver production results in line with our guidance for 2022,’’ said Pan American President and CEO Michael Steinmann.

The preliminary results were announced after the close of trading on January 17, 2023, when Pan American shares closed a $24.62. They currently trade in a 52-week range of $38.51 and $18.14.

Pan American is planning to release operating costs with its audited results for the fourth quarter of 2022 and full year 2022 on February 22, 2023.

Pan American and Agnico-Eagle Mines Ltd. (AEM-TSX, AEM-NYSE) recently agreed to acquire Yamana Gold Inc. [YRI-TSX, AUY-NYSE] in a US$4.8 billion deal, ensuring that Canada’s largest gold mine – The Canadian Malartic – remains under Canadian ownership.

The move follows the termination of a rival deal that would have seen Yamana being acquired by Gold Fields of South Africa in a deal that was worth US$6.7 billion when it was announced on May 31, 2022.

Yamana produced 264,891 GEO (gold equivalent ounces) in the fourth quarter of 2022, consisting of 235,072 ounces of gold and 2.43 million ounces of silver. Full year production came in at just over 1.0 million GEO, including 894,820 ounces of gold. Full year all-in-sustaining costs are expected to be below US$1,124 per GEO.

Pan American said it and Yamana are working together on a smooth integration of the Latin American assets and operating teams. Pan American also said it expects to provide annual production and cost guidance for 2023 for the combined entity shortly after the arrangement closes.

Yamana is a Canadian precious metals producer with significant gold and silver production, development stage properties and exploration properties in the Americas, including Brazil, Argentina, Chile, Mexico and Canada.

Its key asset is a 50% interest in the Canadian Malartic mine, which ranks as Canada’s largest gold mine and Yamana’s biggest producer. The mine is currently held jointly by Agnico-Eagle and Yamana.

Under the arrangement deal, Pan American will acquire all the issued and outstanding shares of Yamana, which would then sell certain subsidiaries and partnerships holding Yamana’s interests in its Canadian assets to Agnico. That would include a 50% interest in the Canadian Malartic mine, which is expected to produce 320,000 ounces of gold this year.

The arrangement will establish Pan American as a major precious metals producer in Latin America, with approximately 28.5 to 30 million ounces of annual silver production and approximately 1.1 to 1.2 million ounces of annual gold production.

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