Q2 2024 Pan American Silver Corp Earnings Call Transcript
Key Points
- Pan American Silver Corp (PAAS) generated record cash flow before changes in working capital of $203.3 million in Q2, resulting in $102.1 million free cash flow.
- The company's balance sheet improved with cash balances rising to $337.2 million at June 30, an increase of $36.1 million from the previous quarter.
- The new ventilation infrastructure at La Colorada was completed on schedule, improving ventilation conditions and expected to increase throughput and grades in the second half of 2024.
- Costs in Q2 were better than expected, with all-in sustaining costs for both the silver and gold segments below guidance ranges.
- The company is on track with major projects, including the new dry-stack tailings storage facility at Huaron and the paste plant project at Timmins, both scheduled for completion in 2024.
- Pan American Silver Corp (PAAS) reported a net loss in Q2 of $21.4 million, significantly impacted by a $93.1 million income tax expense and $26.7 million net realizable value inventory expense.
- Silver production of 4.57 million ounces in Q2 was below the expected range due to ventilation constraints at La Colorada and weather-related disruptions at other sites.
- Weather-related disruptions at Dolores and Cerro Moro impacted ore mining and access, leading to lower grades and throughput.
- Unusual heavy rains at Minera Florida resulted in a 10-day suspension of ore processing, affecting production.
- Currency fluctuations, particularly the devaluation of the Brazilian real and Mexican peso, impacted income tax expenses and could continue to affect financial results.
Good morning, ladies and gentlemen. And welcome to the Pan American Silver second-quarter 2024 unaudited results conference call and webcast.
(Operator Instructions) This call is being recorded on Thursday, August 8, 2024. I would now like to turn the conference over to Siren Fisekci, VP, Investor Relations. Please go ahead.
Thank you for joining us today for Pan American Silver's Q2 2024 conference call. This call includes forward-looking statements and information and makes reference to non-GAAP measures. Please see the cautionary statements in our MD&A, news release, and presentation slides for our Q2 2024 unaudited results, all of which are available on our website.
I'll now turn the call over to Michael Steinmann, Pan American's President and CEO.
Thanks, Siren. And thank you, everyone, for joining the call. Our operations
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
