Pan American Silver Corp. (NYSE:PAAS) Q2 2023 Earnings Conference Call August 10, 2023 11:00 AM ET
Company Participants
Siren Fisekci - Vice President of Investor Relations
Michael Steinmann - President and Chief Executive Officer
Ignacio Couturier - Chief Financial Officer
Steve Busby - Chief Operating Officer
Sean McAleer - Senior Vice President of Strategic Initiatives
Conference Call Participants
Lawson Winder - Bank of America Merrill Lynch
Craig Hutchison - TD Securities
Don DeMarco - National Bank Financial, Inc.
Operator
Good morning. My name is Joanna, and I will be your conference operator today. At this time, I would like to welcome everyone to Pan American Silver’s Second Quarter 2023 Conference Call.
Siren, you may begin your conference.
Siren Fisekci
Thank you for joining us today for Pan American Silver’s Q2 2023 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 2023 unaudited results. All of which are available on our website.
I will now turn the call over to Michael Steinmann, Pan American’s President and CEO.
Michael Steinmann
Thanks, Siren, and thank you, everyone for joining our call today. The second quarter is the first period we are reporting results inclusive of the assets acquired through the Yamana transaction, which closed on March 31st. The results clearly deliver on the benefits we had expected through the strategic acquisition enhancing both the scale and quality of our portfolio.
With the contribution of the new assets, production in Q2 was up 102% for gold and 55% for silver relative to Q1. Consolidated Q2 silver production of 6 million ounces was at the high-end of our 2023 quarterly guidance and consolidated record gold production of 248,200 ounces also approach the upper end of the range.
Silver and Gold segment all-in sustaining costs per ounce of $15.70 and $1,342 respectively are within our full-year cost guidance. With a strong performance year-to-date, we have reaffirmed our original 2023 operating guidance provided in our Q1 2023 MD&A. As indicated with that guidance, our production is back-end weighted particularly for gold in the fourth quarter. Please see the quarterly operating outlook provided in the Q1 MD&A for the slides that accompany this call for the detail.
The strong production and sales volumes resulted in Q2 revenue of $639.9 million. Net loss in Q2 was $47.4 million or $0.13 per share. This reflects non-cash accounting impacts. Notably, a $33.3 million impairment charge net of tax related to the sale of our 92.3% interest in Morococha for cash consideration of $25 million as per our news release from July 31. The net loss also includes $26.1 million net of tax for fair value adjustments on finished goods inventories that were expensed during the quarter.