Pan American’s Timmins operations continues to provide value

By Kevin Vincent
Pan American Silver Corp. finished 2020 in a strong position and the company’s Timmins-based operations was a solid gold contributor.
“Pan American delivered strong financial performance in 2020, generating a record $462.3 million in operating cash flow, which enabled us to fully repay all bank debt, double our quarterly dividend to shareholders, and grow our cash balance at year end,” said Michael Steinmann, President and Chief Executive Officer.
“Our operating teams helped deliver these strong results despite the exceptional challenges presented by the COVID-19 pandemic. We continue to support our workforce and communities during this difficult time, and look forward to the deployment of vaccination programs during 2021.”
Pan American expects to produce between 148,000 and 158,000 ounces of gold from Lake Shore in 2021. The company’s overall gold production in 2021 is expected to be between 605,000 and 655,000 ounces, which is an increase of between 16% and 25% from 2020 production levels.
The company says the 2021 forecast assumes operations will continue to be impacted by comprehensive COVID-19 protocols, which increase costs and restrict throughput levels, especially at underground mines.
Pan American expects to spend between $40 and $43 million in capital costs this year at Lake Shore and its Bell Creek Mines on tailings storage facility expansions, mine equipment replacements and refurbishments, mill upgrades, and near-mine exploration.

Pan American owns and operates silver and gold mines in Mexico, Peru, Canada, Argentina and Bolivia. they also own the Escobal mine in Guatemala that is currently not operating. As the world’s second largest primary silver producer with the largest silver reserve base globally, Pan American says it provides enhanced exposure to silver in addition to a diversified portfolio of gold producing assets.

 

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