Pan American Silver Corp. (NYSE:PAAS) Q1 2024 Earnings Conference Call May 9, 2024 11:00 AM ET

Company Participants

Siren Fisekci - VP of IR
Michael Steinmann - President and CEO
Steve Busby - COO
Sean McAleer - SVP and MD, Guatemala

Conference Call Participants

Ovais Habib - Scotiabank
Don DeMarco - National Bank Financial
Cosmos Chiu - CIBC

Operator

Good morning, ladies and gentlemen, and welcome to the Pan American Silver’s First Quarter 2024 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] Also note that this call is being recorded on Thursday, May 9, 2024.

And I would like to turn the conference over to Siren Fisekci, VP Investor Relations. Please go ahead.

Siren Fisekci

Thank you for joining us today for Pan American Silver's Q1 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 Q1, 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.

Michael Steinmann

Thanks, Siren and thank you, everyone for joining us today.

Our Q1 operating results were in line, or better than expected. Silver and gold production were within our guided ranges. And I am particularly pleased with our strong performance on controlling costs. Cash costs and all-in sustaining costs, excluding net realizable value inventory adjustments for both Silver and Gold segments were lower than quarterly guidance. Operations generated $133.2 million of cash flow before working capital changes in Q1.

This includes $41.1 million in cash taxes paid, with Q1 typically being the quarter with the highest cash tax payments. We recorded a $30.8 million net loss or $0.08 loss per share in Q1, which includes a $34.4 million tax expense of which $15.2 million is related to an inflation adjustment in Argentina, $14.4 million of net realizable value inventory expense and a $10.8 million non-cash investment loss largely due to the decrease of the New Pacific Metals Corp share price.

Adjusted earnings were $4.7 million or $0.01 per share. We exited Q1 in a strong financial position. Cash and investments totaled $331.4 million, and we have the full $750 million available under our undrawn credit facility. Total available liquidity is $1.1 billion. This strong financial position allowed us to return $58 million of capital to shareholders in Q1, $36.5 million in total cash dividends paid, and $21.5 million in share buybacks.