Guidance for 2017 Costs Reduced
All amounts are expressed in US$ unless otherwise indicated.
Financial information is based on International Financial Reporting
Standards ("IFRS") as issued by the International Accounting
Standards Board.
This news release refers to measures that are not generally
accepted accounting principle ("Non-GAAP") financial measures,
including cash costs per payable ounce of silver, all-in sustaining
costs per silver ounce sold, adjusted earnings and total debt.
Please refer to the "Alternative Performance (non-GAAP) Measures"
section of this news release for further information on these
measures.
VANCOUVER, Aug. 9, 2017
/CNW/ - Pan American Silver Corp. (NASDAQ: PAAS; TSX:
PAAS) ("Pan American", or the "Company") today reported unaudited
net earnings of $36.0 million
($0.23 basic earnings per share) for
the second quarter ended June 30, 2017 ("Q2 2017") compared
with $34.2 million ($0.22 basic earnings per share) in the second
quarter of 2016 ("Q2 2016"). Adjusted earnings were
$22.3 million ($0.15 basic adjusted earnings per share) compared
with $18.0 million ($0.12 basic adjusted earnings per share) in Q2
2016.
"Pan American operations generated strong earnings in the
quarter on revenues that topped $200
million. Silver production is on pace to achieve our annual
targeted range, while costs are tracking well below. We have now
reduced our estimate for cash costs and AISCSOS in 2017 by 14% and
10%, respectively, from the mid-point of our original guidance,"
said Michael Steinmann, President
and Chief Executive Officer of the Company. "The longer term
outlook for operations is also encouraging with excellent progress
on our mine expansions in Mexico
and our two new projects in Argentina. Throughput at La Colorada achieved design rates of 1,800
tonnes per day in June, six months ahead of plan. At Dolores, commissioning of the new pulp
agglomeration plant has begun and the underground mine has been
delivering low-grade development muck to the heap. As we saw during
Q2 with La Colorada, these
expansions improve our operating margins through growth in low-cost
production."
Highlights for Q2 2017:
- Silver production of 6.30 million ounces was similar to
the 6.33 million ounces produced in Q2 2016. Quarter-over-quarter,
production increased at La
Colorada and Manantial Espejo, declined at Alamo Dorado and
San Vicente, and was essentially
consistent at Dolores, Morococha
and Huaron.
- Gold production was 37.7 thousand ounces compared with
48.4 thousand ounces in Q2 2016. The decrease was primarily the
result of lower ore grades at Manantial Espejo and Dolores together with the shutdown of Alamo
Dorado operations.
- Revenue was up 5% to $201.3
million from $192.3 million
reported in Q2 2016, reflecting higher realized metal prices and
lower direct selling costs, partially offset by an increase to
negative settlement adjustments on concentrate shipments and lower
quantities of gold and copper sold. The biggest impact on revenues
came from a 2% increase in realized silver prices and a 33%
increase in realized zinc prices quarter-over-quarter.
- Consolidated cash costs per payable ounce of silver, net
of by-product credits ("Cash Costs") were $5.71 in Q2 2017 compared with $5.57 recorded in Q2 2016, reflecting a decrease
in by-product credits partially offset by lower consolidated direct
operating costs. Cash Costs for the six months ended June 30, 2017 ("H1 2017") were 8% below the low
end of management's 2017 annual guidance range; accordingly,
management has revised its guidance for 2017 annual Cash Costs to
$5.50 to $6.50 per ounce from
original guidance of $6.45 to $7.45
per ounce.
- Consolidated All-In Sustaining Costs per Silver Ounce Sold
("AISCSOS") were $10.73 in Q2
2017 compared with $11.31 in Q2 2016.
AISCSOS for H1 2017 of $11.66 were
closer to the low end of management's 2017 annual guidance range of
$11.50 to $12.90; accordingly,
management has lowered the annual 2017 AISCSOS guidance to
$10.50 to $11.50.
- Net cash generated from operating activities was
$42.9 million compared with
$66.0 million in Q2 2016. The
decrease reflects a $20.7 million
change in working capital and a $10.2
million increase in taxes paid.
- Net earnings were $36.0
million ($0.23 basic earnings
per share) compared with $34.2
million ($0.22 basic earnings
per share) in Q2 2016.
- Adjusted earnings were $22.3
million ($0.15 basic adjusted
earnings per share) compared with $18.0
million ($0.12 basic adjusted
earnings per share) in Q2 2016.
- Strong liquidity and working capital position. The
Company exited Q2 2017 with cash and short-term investment balances
of $198.2 million, after directing
$7.5 million towards the acquisition
of the Cap-Oeste Sur Este ("COSE") project. At June 30, 2017, the Company had working capital of
$429.6 million, $263.8 million available under its revolving
credit facility, and total debt outstanding of $46.7 million.
- Capital expenditures totaled $41.8 million in Q2 2017, including approximately
$16.7 million of project capital;
this is a decrease from Q2 2016 capital expenditures of
$52.8 million, which included
$28.0 million of project capital. Pan
American is increasing its estimate for 2017 project capital to
total $73.5 million to $78.5 million,
with the increase largely directed to advancing the Joaquin and
COSE projects.
- On the Dolores
expansion, the Company completed construction of the pulp
agglomeration plant and commenced commissioning. Development
of the underground mine also progressed, and remains on track for
the initial stope ore mining to begin before the end of 2017.
- On the La Colorada
expansion, development of the underground mine advanced ahead
of plan, achieving the targeted 1,800 tonnes per day mining and
processing rates during the last month of Q2 2017. As well, the new
power line was energized.
- The Company has closed its acquisition of 100% of the COSE
project, originally announced on April
25, 2017. The remaining $7.5
million payment necessary to complete the purchase will be
payable either 12 months after the closing date, or upon the
commencement of commercial production of COSE, whichever is the
earlier. During H1 2017, Pan American acquired the COSE and
Joaquin projects, both high-grade silver deposits offering
synergies with the Company's Manantial Espejo mine in the
Santa Cruz province of
Argentina.
- At the Joaquin project, the Company has initiated a
6,200 metre drill program and engineering analysis to determine the
quantity of potentially economic material that could be trucked to
the Manantial Espejo processing plant for treatment. We expect to
complete a Preliminary Economic Assessment on the project by
year-end.
- For the COSE project, the Company plans to invest
$23.9 million to construct an
underground mine (excludes the final $7.5
million project acquisition payment referenced above). The
project envisions an underground decline ramp, with the first
stoping area being encountered towards the end of 2018 after 1.0
kilometre of development. The material mined will be trucked to our
Manantial Espejo plant for processing at a rate of approximately
200 tonnes per day for 18 months. On average, the project is
expected to produce approximately 112,000 ounces of silver and
2,300 ounces of gold per month. The estimated internal rate of
return on the total investment, including $15 million of acquisition costs, is 18% assuming
a flat silver price of $18.50 per
ounce and a flat gold price of $1,300
per ounce. The results of this preliminary economic assessment are
preliminary in nature in that they include inferred mineral
resources that are considered to be too geologically speculative to
have the economic considerations applied to them that would enable
them to be categorized as mineral reserves, and there is no
certainty that the assessment will be realized. Mineral resources
that are not mineral reserves have no demonstrated economic
viability.
- A quarterly cash dividend of $0.025 per common share, approximately
$3.8 million in aggregate cash
dividends, has been approved by the Board of Directors. The
dividend will be payable on or about Friday,
September 1, 2017, to holders of record of Pan American's
common shares as of the close on Monday,
August 21, 2017. Pan American'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.
Consolidated Financial Results
Unaudited in
thousands of U.S. Dollars, except per ounce and per share
amounts
|
Three months
ended
June 30,
|
2017
|
2016
|
Revenue
|
201,319
|
192,258
|
Mine operating
earnings
|
44,782
|
44,730
|
Net earnings for the
period
|
36,011
|
34,226
|
Adjusted earnings for
the period(1)
|
22,271
|
18,017
|
Net cash generated
from operating activities
|
42,906
|
66,019
|
All-in sustaining
cost per silver ounce sold(1)
|
10.73
|
11.31
|
Net earnings per
share attributable to
common shareholders
(basic)
|
0.23
|
0.22
|
Adjusted earnings per
share attributable to
common shareholders
(basic)(1)(2)
|
0.15
|
0.12
|
|
|
(1)
|
Adjusted earnings and
all-in sustaining costs per silver ounce sold 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 impact of the
unrealized foreign exchange rate changes on deferred income tax
balances has been added as a new adjusting item, along with a
modification in the quantification of the estimated effect of
taxes. For comparative purposes, Q2 2016 adjusted earnings
have been recalculated and are thus different from those originally
reported. The effect of these new adjusting items on Q2 2016
adjusted earnings was a decrease of $1.9 million from that
originally reported, resulting in adjusted earnings per share being
reduced by $0.01.
|
Consolidated Operational Results
|
Three months ended
June 30, 2017
|
Three months ended
June 30, 2016
|
|
Production
|
Cash
Costs(1)
$
|
Production
|
Cash
Costs(1)
$
|
|
Ag
(Moz)
|
Au
(koz)
|
Ag
(Moz)
|
Au
(koz)
|
La
Colorada
|
1.73
|
0.94
|
3.38
|
1.37
|
0.67
|
7.66
|
Dolores
|
1.04
|
22.44
|
0.12
|
0.97
|
25.36
|
(0.64)
|
Alamo
Dorado
|
0.26
|
0.69
|
11.18
|
0.53
|
2.34
|
13.54
|
Huaron
|
0.90
|
0.44
|
2.24
|
0.95
|
0.23
|
5.70
|
Morococha
(2)
|
0.63
|
1.03
|
(2.35)
|
0.58
|
0.59
|
1.35
|
San Vicente
(3)
|
0.77
|
0.12
|
14.02
|
1.14
|
n/a
|
12.27
|
Manantial
Espejo
|
0.98
|
12.05
|
15.11
|
0.78
|
19.20
|
(2.40)
|
TOTAL
|
6.30
|
37.71
|
5.71
|
6.33
|
48.38
|
5.57
|
|
Totals may not add up
due to rounding.
|
(1)
|
Cash costs are a
non-GAAP measure. Please refer to the "Alternative Performance
(non-GAAP) Measures" section of this news release for further
information on these measures.
|
(2)
|
Morococha data
represents Pan American's 92.3% interest in the mine's
production.
|
(3)
|
San Vicente data
represents Pan American's 95.0% interest in the mine's
production.
|
By-Product Results
Production
|
Three months ended
June 30,
|
|
2017
|
2016
|
Gold - ounces '000s
("koz")
|
37.7
|
48.4
|
Zinc - tonnes '000s
("kt")
|
13.7
|
12.7
|
Lead - kt
|
5.5
|
5.0
|
Copper -
kt
|
3.5
|
4.4
|
Average Market
Metal Prices
|
Three months ended
June 30,
|
|
2017
|
2016
|
Gold
$/ounce
|
1,257
|
1,260
|
Zinc
$/tonne
|
2,596
|
1,918
|
Lead
$/tonne
|
2,161
|
1,719
|
Copper
$/tonne
|
5,662
|
4,729
|
2017 Guidance revised
Pan American has revised the estimates provided in its press
release dated January 12, 2017, for
Cash Costs, AISCSOS and project capital in 2017 while maintaining
its estimates for sustaining capital and production.
Silver production for H1 2017 of 12.5 million ounces was on
track to achieve our targeted range of 24.5 to 26.0 million ounces
for 2017. Gold production was 75.4 thousand ounces in H1 2017, and
given the higher anticipated production for the remainder of the
year at Dolores, management
reaffirms the 2017 annual gold production guidance of 155.0 to
165.0 thousand ounces. Zinc, lead and copper production during H1
2017 were within management's expectations based on current mine
plans, and management has reaffirmed its 2017 annual guidance for
zinc, lead and copper production.
The Company has revised its estimate for 2017 project capital to
a range of $73.5 million to $78.5
million. The increase reflects an additional approximately
$5 million to complete the
Dolores expansion and new
investment of $11.0 million to
$12.5 million to advance development
of the recently acquired Joaquin and COSE projects in Argentina, partially offset by slightly lower
project capital at La
Colorada.
The following table provides Pan American's revised Guidance for
2017:
|
Revised 2017
Guidance
as at Aug. 9, 2017
|
Original 2017
Guidance
as at Jan. 12, 2017
|
Silver production
(million ounces)
|
24.5 -
26.0
|
24.5 -
26.0
|
Gold production
(thousand ounces)
|
155 - 165
|
155 - 165
|
Zinc production
(thousand tonnes)
|
56.5 -
58.5
|
56.5 -
58.5
|
Lead production
(thousand tonnes)
|
19.0 -
20.0
|
19.0 -
20.0
|
Copper production
(thousand tonnes)
|
8.8 - 9.3
|
8.8 - 9.3
|
Cash
Costs(1)($/ounce)
|
5.50 -
6.50
|
6.45 -
7.45
|
Sustaining capital ($
millions)
|
82 - 88
|
82 - 88
|
Project capital ($
millions)(2)
|
73.5 -
78.5
|
58 - 62
|
AISCSOS(1) ($/ounce)
|
10.50 -
11.50
|
11.50 -
12.90
|
|
|
(1)
|
Cash Costs and
AISCSOS are non-GAAP measures. Please refer to the
"Alternative Performance (non-GAAP) Measures" section of this news
release for further information on these measures.
|
(2)
|
Project capital
relates to development of the Joaquin and COSE projects, and the
current mine expansions at La Colorada and Dolores; 2017 is
expected to be the final year of spending on the La Colorada and
Dolores mine expansions.
|
The following table provides the price and foreign exchange rate
assumptions used for the second half of the year to forecast total
Cash Costs and AISCSOS in the Guidance for the full year of
2017:
2nd Half 2017
Forecast Metal prices
|
|
Silver
($/ounce)
|
16.50
|
Gold
($/ounce)
|
1,200
|
Zinc
($/tonne)
|
2,700
|
Lead
($/tonne)
|
2,200
|
Copper
($/tonne)
|
5,700
|
Average annual
exchange rates relative to 1 USD
|
|
Mexican
peso
|
20.00
|
Peruvian
sol
|
3.30
|
Argentine
peso
|
17.05
|
Bolivian
boliviano
|
7.00
|
Further details on the Company's 2017 Guidance, including
forecasts per mine, are provided in the "Operating Outlook for
2017" section of Pan American's Management Discussion and Analysis
for the period ended June 30,
2017.
Technical information contained in this news release with
respect to Pan American has been reviewed and approved by Martin
Wafforn, P.Eng., Senior Vice President, Technical Services &
Process Optimization, who is the Company's Qualified Person for the
purposes of National Instrument 43-101. For additional information
about the Company's material mineral properties, please refer to
the Company's Annual Information Form dated March 22, 2017, filed at www.sedar.com. For
further technical information relating to the La Colorada and Dolores expansion projects, please refer to
the National Instrument 43-101 technical reports entitled
"Technical Report - Preliminary Economic Analysis for the Expansion
of the La Colorada Mine, Zacatecas,
Mexico," with an effective date of December 31, 2013, and "Technical Report for the
Dolores Property, Chihuahua,
Mexico", with an effective date of December 31, 2016, both of which are filed on
SEDAR at www.sedar.com and available on the Company's website. The
results of the preliminary economic assessments at La Colorada, Dolores and COSE are preliminary in nature, in
that they include inferred mineral resources that are considered
too geologically speculative to have the economic considerations
applied to them that would enable them to be categorized as mineral
reserves, and there is no certainty that the assessment will be
realized. Mineral resources that are not mineral reserves have no
demonstrated economic viability.
Second Quarter 2017 Unaudited Results Conference Call and
Webcast
Date:
|
Thursday, August 10,
2017
|
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)
|
A live and archived webcast and presentation slides will be
available on the Company's website at
www.panamericansilver.com.
About Pan American Silver
Pan American Silver Corp. is one of the world's largest primary
silver producers, providing investors with enhanced exposure to
silver through low-cost operations. Founded in 1994, Pan American
is recognized for its operating expertise, prudent financial
management and commitment to responsible development. The
Company is headquartered in Vancouver,
B.C. and owns and operates six mines in Mexico, Peru,
Argentina and Bolivia. Our
shares trade on NASDAQ and the Toronto Stock Exchange under the
symbol "PAAS".
For more information, visit: www.panamericansilver.com.
Alternative Performance (Non-GAAP) Measures
In this press 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 adjusted earnings per share. The Company
believes that these measures better reflect normalized earnings as
they eliminate items that in management's judgement 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.
Readers should refer to the "Alternative Performance (non-GAAP)
Measures" section of Pan American's Management's Discussion and
Analysis for the period ended June 30,
2017, 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 2017 and beyond, our estimated
Cash Costs and AISCSOS in 2017 and beyond, and expectations with
respect to operating margins; the ability of the Company to
successfully complete any capital investment programs and projects,
including whether on time, or on or below budget, and the success,
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; the
election by the Company and its ability to successfully complete
the acquisition of the COSE project; the realization of benefits
from any transactions, including the Joaquin and COSE transactions,
and the financial and operational impacts of any such transactions
on the Company; and the approval 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 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; 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 restrictions relating to mining, including in
Chubut, Argentina; risks relating
to expropriation; diminishing quantities or grades of mineral
reserves as properties are mined; increased competition in the
mining industry for equipment and qualified personnel; and those
factors identified under the caption "Risks Related to Pan
American's Business" in the Company's most recent form 40-F and
Annual Information Form filed with the United States Securities and
Exchange Commission and Canadian provincial securities regulatory
authorities, respectively. Although the Company has attempted to
identify important factors that could cause actual results to
differ materially, there may be other factors that cause results
not to be as anticipated, estimated, described or intended.
Investors are cautioned against undue reliance on forward-looking
statements or information. Forward-looking statements and
information are designed to help readers understand management's
current views of our near and longer term prospects and may not be
appropriate for other purposes. The Company does not intend, nor
does it assume any obligation to update or revise forward-looking
statements or information, whether as a result of new information,
changes in assumptions, future events or otherwise, except to the
extent required by applicable law.
Cautionary Note to US Investors Concerning Estimates of
Mineral Reserves and Resources
This news release has been prepared in accordance with the
requirements of Canadian securities laws, which differ from the
requirements of U.S. securities laws. Unless otherwise indicated,
all mineral reserve and resource estimates included in this news
release have been disclosed in accordance with Canadian National
Instrument 43-101 - Standards of Disclosure for Mineral Projects
(''NI 43-101'') and the Canadian Institute of Mining, Metallurgy
and Petroleum definition standards. NI 43-101 is a rule developed
by the Canadian Securities Administrators that establishes
standards for all public disclosure an issuer makes of scientific
and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly
from the requirements of the SEC, and information concerning
mineralization, deposits, mineral reserve and resource information
contained or referred to herein may not be comparable to similar
information disclosed by U.S. companies. In particular, and without
limiting the generality of the foregoing, this news release uses
the terms ''measured resources'', ''indicated resources'' and
''inferred resources''. U.S. investors are advised that, while such
terms are recognized and required by Canadian securities laws, the
SEC does not recognize them. The requirements of NI 43-101 for
identification of ''reserves'' are not the same as those of the
SEC, and reserves reported by Pan American in compliance with NI
43-101 may not qualify as ''reserves'' under SEC standards. Under
U.S. standards, mineralization may not be classified as a
''reserve'' unless the determination has been made that the
mineralization could be economically and legally produced or
extracted at the time the reserve determination is made. U.S.
investors are cautioned not to assume that any part of a "measured
resource" or "indicated resource" will ever be converted into a
"reserve". U.S. investors should also understand that "inferred
resources" have a great amount of uncertainty as to their existence
and great uncertainty as to their economic and legal feasibility.
It cannot be assumed that all or any part of "inferred resources"
exist, are economically or legally mineable or will ever be
upgraded to a higher category. Under Canadian securities laws,
estimated "inferred resources" may not form the basis of
feasibility or pre-feasibility studies except in rare cases.
Disclosure of "contained ounces" in a mineral resource is permitted
disclosure under Canadian securities laws. However, the SEC
normally only permits issuers to report mineralization that does
not constitute "reserves" by SEC standards as in place tonnage and
grade, without reference to unit measures. Accordingly, information
concerning mineral deposits set forth herein may not be comparable
with information made public by companies that report in accordance
with U.S. standards.
SOURCE Pan American Silver Corp.