Pan American Silver Corp. (NYSE:PAAS) Q4 2023 Earnings Conference Call February 22, 2024 11:00 AM ET

Company Participants

Siren Fisekci - Vice President of Investor Relations

Michael Steinmann – President and CEO

Steve Busby - Chief Operating Officer

Ignacio Couturier - CFO

Conference Call Participants

Cosmos Chiu - CIBC

John Tumazos - Very Independent Research

Craig Hutchison - TD

Don DeMarco - National Bank Financial

Operator

Good morning, ladies and gentlemen, and welcome to the Pan American Silver’s Fourth Quarter 2023 Unaudited Results Conference Call and Webcast. At this time, all lines in a listen-only mode. Following the presentation, we'll conduct a question-and-answer session. [Operator Instructions] This call is being recorded on Thursday, February 22, 2024.

I would now like to turn the conference over to Siren. Thank you. Please go ahead.

Siren Fisekci

Thank you for joining us today for Pan American Silver's Q4 and full year 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 Q4 2023 audited 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.

Michael Steinmann

Thanks, Siren and thank you, everyone for joining our call today. The past year was a dynamic period of growth and change for Pan American. We added four new mines in two new jurisdictions. We streamlined our portfolio through the sale of non-core assets and we announced the preliminary economic assessment for the La Colorada Skarn. With integration of the assets we acquired from Yamana now complete, we continue our focus on improving margins through safe cost efficient operations, harvesting synergies and further portfolio optimization.

In 2023, the nine month contribution of the assets we acquired grew 11% increase in silver production and a 60% increase in gold production over 2022, and resulted in record revenue for both Q4 and for the full year. Operating cash flow for Q4 was $167.4 million net of $32.4 million in taxes paid and inclusive of $56.1 million of cash from working capital. We recorded the net loss of $0.19 per share in Q4, driven by three non-cash charges.

The first relates to the final purchase price allocation for the acquired Yamana assets and American finalized the purchase price allocation or PPA. Asset values for the amount of gold acquisition in Q4 2023 resulting in a $16.5 million improvement to previously reported Q2 2023 and Q3 2023.