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Pan American Silver reports cash flow from operations of $62.8 million in Q2 2020 and updates 2020 guidance

www.sedar.com.” data-reactid=”12″>VANCOUVER, BC, Aug. 5, 2020 /CNW/ – Pan American Silver Corp. (NASDAQ: PAAS) (TSX: PAAS) (“Pan American” or the “Company”) today reported unaudited results for the second quarter ended June 30, 2020 (“Q2 2020”). Pan American’s unaudited condensed interim consolidated financial statements and notes (“financial statements”), as well as Pan American’s management’s discussion and analysis (“MD&A”) for the three and six months ended June 30, 2020, are available on Pan American’s website at panamericansilver.com and on SEDAR at www.sedar.com.

Peru, all operations are now back in production under comprehensive health and safety protocols,” said Michael Steinmann, President and Chief Executive Officer. “Our ability to successfully navigate the extraordinary challenges over the first half of this year demonstrates the resilience of our business and the capability and efforts of our team. With the updated guidance for 2020 that we provided today and rising precious metal prices, we are looking forward to strong cash flow generation over the remainder of 2020.”

June 30, 2020, our cash and short term investment balances increased to approximately $262 million, while the amount drawn on our Credit Facility was reduced to $200 million. In August, we repaid an additional $40 million on our Credit Facility.”

  • Revenue was $249.5 million. Strong precious metal prices, with gold and silver averaging $1,708 per ounce and $16.58 per ounce, respectively, helped offset the impact of the COVID-19 related suspensions at our Latin American operations.
  • Consolidated silver production of 2.8 million ounces and gold production of 96.6 thousand ounces primarily reflect the COVID-19 related suspensions.
  • Net cash generated from operations was $62.8 million, which included $46.5 million of COVID-19 related mine care and maintenance costs. Working capital changes resulted in a $31.3 million source of cash, mainly driven by the draw-down in inventories from continued leaching at the Company’s three heap leach operations during the COVID-19 related suspensions.
  • Net income of $19.4 million ($0.10 basic income per share) reflects mine operating earnings of $48.4 million, with the impact of COVID-19 related suspensions reducing both revenue and cost of sales. Net income includes $47.5 million of investment income, primarily relating to gains on the sale and fair value measurements of certain equity investments owned by Pan American, offset by $52.2 million of mine care and maintenance costs, the vast majority incurred from the COVID-19 related suspensions.
  • Adjusted earnings of $58.4 million ($0.28 basic adjusted earnings per share) excludes $46.5 million of COVID-19 related mine care and maintenance costs.
  • Silver Segment Cash Costs and All-in Sustaining Costs (“AISC”) were $6.23 and $12.54 per silver ounce sold, respectively. Due to the continuation of leaching activities, Dolores made up a significant portion of production in the quarter and materially benefited Silver segment Cash Costs. Silver Segment AISC reflects investment in critical projects and cost-increasing net realizable value (“NRV”) inventory adjustments at Dolores, offset by cost-reducing NRV adjustments at Manantial Espejo.
  • Gold Segment Cash Costs and AISC were $905 and $1,015 per gold ounce sold, respectively. Gold Segment Cash Costs were negatively impacted by mine sequencing at the La Arena operation, resulting in less ore tonnes at lower grades, and mining lower grade extensions to reserves at Timmins.
  • Consolidated AISC, including gold by-product credits from the Gold Segment mines, were $(3.14) per silver ounce sold.
  • Based on drilling completed over the six month period ended June 30, 2020, Pan American updated its inferred mineral resource estimate for the La Colorada skarn deposit in Mexico to 100.4 million tonnes, containing an estimated 141.0 million ounces of silver with 4.3 million tonnes of zinc, 1.8 million tonnes of lead and 0.2 million tonnes of copper; see our news release dated August 4, 2020 for further details.
  • Through 200,000 metres of drilling from July 2019 to June 2020, we were able to add 22.1 million ounces of silver and 719 thousand ounces of gold to our proven and probable mineral reserves, replacing 76% of silver and 107% of the gold mined for the 12-month period ended June 30, 2020; see our news release dated August 5, 2020 for further details.
  • Pan American realized cash proceeds totaling $81.1 million from the divestment of investment interests and non-core assets, primarily related to: the sale of 10.35 million common shares of Maverix Metals Inc. and a subsequent exercise of 8.25 million common share purchase warrants, resulting in a current undiluted interest of approximately 19.9%; the sale of 10.0 million shares in New Pacific Metals Corp., resulting in a current undiluted interest of approximately 9.96%; and, the sale of the Juby and Knight exploration properties in Ontario, Canada.
  • Pan American repaid $140.0 million on its four-year, $500.0 million Credit Facility, reducing the amount drawn as at June 30, 2020, to $200.0 million. The $140.0 million repayment is comprised of $80.0 million that was drawn in April 2020 as a precautionary measure in response to COVID-19 and subsequently repaid, and a further repayment of $60.0 million. At June 30, 2020, the Company had cash and short-term investment balances of $261.6 million and working capital of $471.6 million. Total debt was $236.9 million (including $36.9 million of lease liabilities). In August, the Company made an additional repayment on the Credit Facility of $40.0 million.
  • The Board of Directors has approved a cash dividend of $0.05 per common share, or approximately $10.5 million in aggregate cash dividends, payable on or about August 27, 2020, to holders of record of Pan American’s common shares as of the close on August 17, 2020. 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.
  • Pan American released its 2019 Sustainability Report in May 2020 and became a signatory of the United Nations Global Compact in July 2020.
  • Cash Costs, AISC, adjusted earnings, basic adjusted earnings per share, sustaining capital, project capital, working capital, total debt and total available liquidity are not generally accepted accounting principle (“non-GAAP”) financial measures. Please refer to the “Alternative Performance (non-GAAP) Measures” section of this news release for further information on these measures.

    Mexico, Peru, Argentina and Bolivia in care and maintenance for various durations, depending on the government restrictions imposed in those regions in response to COVID-19. Company-wide, Pan American restricted international travel and enabled work-from-home arrangements where practical. The Company’s Timmins operation in Canada continued to produce gold at modestly reduced capacity to comply with physical distancing restrictions. Limited production also continued at the Dolores, La Arena and Shahuindo open pit operations during their suspensions from circulation of process solutions on the heap leach pads. The Company incurred $46.5 million in care and maintenance costs in Q2 2020 for the COVID-19 related suspensions.

    Peru were returned to care and maintenance on July 20, 2020 after several workers at the mines tested positive for the COVID-19 virus. A reduced workforce will conduct care and maintenance activities at those mines until it is determined that normal operations can safely resume.

    panamericansilver.com. Pan American has been remobilizing the workforce gradually in order to provide greater physical distancing and to allow time to adopt as well as progressively assess and refine the pandemic related operating protocols. Overall, operations are producing modesty below design capacity to accommodate physical distancing restrictions.” data-reactid=”39″>Pan American coordinated closely with government authorities, local communities and its workforce on the safe restart of operations and the implementation of comprehensive COVID-19 protocols to protect health and safety. These protocols include strict sanitary measures, return-to-work health screenings, and where applicable, testing for the COVID-19 virus, contact tracing and quarantining. For more information on these protocols, see panamericansilver.com. Pan American has been remobilizing the workforce gradually in order to provide greater physical distancing and to allow time to adopt as well as progressively assess and refine the pandemic related operating protocols. Overall, operations are producing modesty below design capacity to accommodate physical distancing restrictions.

    La Colorada during the operating suspensions in Q2 2020. Development work on the underground mine at COSE was suspended on March 23, 2020 and resumed on May 4, 2020, and the Company expects to commence processing ore mined from COSE in the third quarter of 2020. The Company achieved 90% completion of the Timmins expansion project in Q2 2020; however, production capacity is expected to continue to be reduced by COVID-19 related restrictions.

    Latin America. We are adapting our community outreach programs to best support the communities near our mines during this very difficult time. Our support is currently focused on donating food and sanitation supplies, conducting hygiene and sanitation campaigns, and working with local authorities to assist in delivering education and donations of healthcare equipment and supplies.

    We also recognize the additional stress and challenges the COVID-19 pandemic present to our employees. We are introducing programs to support employee mental health and stress management at our operations. In addition, we are communicating with our employees, including those who have been demobilized or working from remote locations, to check on their physical and emotional health.

    Date:

    August 6, 2020

    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)

    Webcast:

    panamericansilver.com

    panamericansilver.com. An archive of the webcast will also be available for three months.
    ” data-reactid=”50″>Callers should dial in 5 to 10 minutes prior to the scheduled start time. The live webcast and presentation slides will be available on the Company’s website at panamericansilver.com. An archive of the webcast will also be available for three months.

    Three months ended

    Twelve months ended

    June 30,
    2020

    December 31,
    2019

    Weighted average shares during period (millions)

    210.0

    201.4

    Shares outstanding end of period (millions)

    210.1

    209.8

    Three months ended
    June 30,

    2020

    2019

    FINANCIAL

    Revenue

    $

    249,509

    $

    340,494

    Mine operating earnings

    $

    48,386

    $

    51,058

    Net earnings

    $

    19,412

    $

    18,499

    Basic earnings per share(1)

    $

    0.10

    $

    0.09

    Adjusted earnings(2)

    $

    58,424

    $

    13,378

    Basic adjusted earnings per share(1)

    $

    0.28

    $

    0.06

    Net cash generated from operating activities

    $

    62,750

    $

    83,518

    Net cash generated from operating activities before changes in working capital(2)

    $

    31,479

    $

    63,378

    Sustaining capital expenditures(2)

    $

    23,479

    $

    55,911

    Project capital expenditures(2)

    $

    9,836

    $

    13,688

    Cash dividend per share

    $

    0.050

    $

    0.035

    PRODUCTION

    Silver (thousand ounces)

    2,791

    6,474

    Gold (thousand ounces)

    96.6

    154.6

    Zinc (thousand tonnes)

    4.3

    17.4

    Lead (thousand tonnes)

    1.7

    6.8

    Copper (thousand tonnes)

    0.3

    2.1

    CASH COSTS(2) ($/ounce)

    Silver Segment

    6.23

    6.67

    Gold Segment

    905

    696

    AISC(2) ($/ounce)

    Silver Segment

    12.54

    10.67

    Gold Segment

    1,015

    977

    Consolidated Silver Basis

    (3.14)

    6.06

    AVERAGE REALIZED PRICES(3)

    Silver ($/ounce)

    16.58

    14.90

    Gold ($/ounce)

    1,708

    1,312

    Zinc ($/tonne)

    1,791

    2,783

    Lead ($/tonne)

    1,643

    1,875

    Copper ($/tonne)

    5,217

    6,100

    (1)

    Per share amounts are based on basic weighted average common shares.

    (2)

    Non- GAAP measures: adjusted earnings, basic adjusted earnings per share, and net cash generated from operating activities before changes in working capital are non-GAAP financial measures. Please refer to the “Alternative Performance (non-GAAP) Measures” section of this news release for further information on these measures.

    (3)

    Metal prices stated are inclusive of final settlement adjustments on concentrate sales.

    Silver Production
    (ounces ‘000s)

    Gold Production
    (ounces ‘000s)

    Three months ended
    June 30,

    Three months ended

    June 30,

    2020

    2019

    2020

    2019

    Silver Segment:

    La Colorada

    801

    2,045

    0.6

    1.1

    Dolores

    915

    1,226

    17.7

    28.5

    Huaron

    211

    948

    0.1

    0.2

    Morococha(1)

    47

    615

    —

    0.3

    San Vicente(2)

    265

    940

    —

    0.1

    Manantial Espejo

    503

    652

    3.5

    5.4

    Gold Segment:

    Shahuindo

    40

    35

    26.8

    46.8

    La Arena

    5

    6

    13.7

    28.4

    Timmins

    4

    5

    34.2

    43.8

    Total(3)

    2,791

    6,474

    96.6

    154.6

    (1)

    Morococha data represents Pan American 92.3% interest in the mine’s production.

    (2)

    San Vicente data represents Pan American 95.0% interest in the mine’s production.

    (3)

    Totals may not add due to rounding.

    Cash Costs(1)

    ($ per ounce)

    AISC(1)

    ($ per ounce)

    Three months ended

    June 30,

    Three months ended

    June 30,

    2020

    2019

    2020

    2019

    La Colorada

    7.13

    2.82

    12.56

    5.07

    Dolores

    2.23

    6.87

    12.95

    22.30

    Huaron

    3.93

    1.64

    6.61

    4.45

    Morococha

    12.90

    3.69

    17.42

    10.47

    San Vicente

    2.61

    10.18

    4.52

    10.60

    Manantial Espejo

    16.24

    18.35

    16.54

    14.01

    Silver Segment Consolidated(2)

    6.23

    6.67

    12.54

    10.67

    Shahuindo

    632

    546

    747

    719

    La Arena

    1,082

    652

    1,259

    1,441

    Timmins(3)

    1,092

    875

    1,171

    937

    Gold Segment Consolidated(2)(3)

    905

    696

    1,015

    977

    Consolidated metrics per silver ounce sold(3)(4):

    All Operations

    (3.14)

    6.06

    Consolidated AISC before NRV inventory adjustments

    (3.62)

    6.40

    (1)

    Cash Costs and AISC are non-GAAP measures. Please refer to the section “Alternative Performance (Non-GAAP) Measures” of the MD&A for the three months ended June 30, 2020 for a detailed description of these measures and where appropriate a reconciliation of the measure to the Q2 2020 financial statements.

    (2)

    Silver segment Cash Costs and AISC are calculated net of credits for realized revenues from all metals other than silver and are calculated per ounce of silver sold. Gold segment Cash Costs and AISC are calculated net of credits for realized silver revenues and are calculated per ounce of gold sold. Consolidated AISC is based on total silver ounces sold and are net of by-product credits from all metals other than silver.

    (3)

    2019 Timmins, Gold Segment, and Consolidated AISC were adjusted to reflect amounts recast, and presented, for the three months ended June 30, 2019 as if Timmins had not been classified as held for sale.  

    (4)

    Consolidated silver basis total is calculated per silver ounce sold with total gold revenues included within by-product credits. G&A costs are included in the consolidated AISC, but not allocated in calculating AISC for each operation.

    May 6, 2020, the Company withdrew its 2020 annual production, Cash Costs, AISC and capital expenditure forecasts, as provided in the 2019 annual MD&A dated March 12, 2020 (the “Original 2020 Guidance”). The decision to withdraw the Original 2020 Guidance was based on the uncertainties regarding the impact of the COVID-19 pandemic on our operations.

    The Company has revised its annual production, Cash Costs, AISC and capital expenditure forecasts for 2020 (the “Revised 2020 Guidance”), which is provided below. The estimates comprising the Revised 2020 Guidance are forward-looking statements and information that are subject to the cautionary note associated with forward-looking statements and information at the end of this news release.

    Silver Production
    (million ounces)

    Gold Production

    (thousand ounces)

    Cash Costs
    ($ per ounce)

    AISC

    ($ per ounce)(1)

    Silver Segment:

    La Colorada

    6.40 – 7.20

    4.0

    6.20 – 7.00

    9.50 – 10.50

    Dolores

    4.00 – 4.80

    99.0 – 104.0

    (5.60) – (3.90)

    3.90 – 7.40

    Huaron

    2.00 – 2.20

    1.0

    8.20 – 9.10

    11.80 – 12.80

    Morococha (92.3%)(2)

    1.20 – 1.40

    1.0

    11.00 – 12.30

    16.80 – 18.40

    San Vicente (95.0%)(3)

    2.20 – 2.60

    —

    14.30 – 16.20

    16.10 – 18.20

    Manantial Espejo, COSE, and Joaquin

    3.00 – 3.50

    24.0 – 27.0

    13.80 – 15.90

    15.30 – 17.70

    Total (4,5)

    18.80 – 21.70

    130.0 – 138.0

    6.20 – 7.70

    10.50 – 12.50

    Gold Segment:

    Shahuindo

    0.20 – 0.30

    147.0 – 164.0

    590 – 660

    860 – 960

    La Arena

    —

    103.0 – 114.0

    760 – 860

    1,140 – 1,260

    Timmins

    —

    145.0 – 159.0

    1,030 – 1,060

    1,175 – 1,240

    Total (4,5)

    0.20 – 0.30

    395.0 – 437.0

    800 – 860

    1,050 – 1,125

    Total Production (5)

    19.00 – 22.00

    525.0 – 575.0

    Consolidated Silver Basis (4)

    n/a (6)

    (3.00) – 0.75

    (1)

    Cash Costs and AISC are non-GAAP measures. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of the MD&A for the three months ended June 30, 2020 for further information on these measures. The Cash Costs and AISC forecasts assume realized prices and exchange rates for the six month period ended June 30, 2020 and the following price and exchange rate assumptions for the period July 1, 2020 to December 31, 2020: metal prices of $18.25/oz for silver, $1,850/oz for gold, $2,050/tonne ($0.93/lb) for zinc, $1,775/tonne ($0.81/lb) for lead, and $6,150/tonne ($2.79/lb) for copper; and for the period July 1, 2020 to December 31, 2020, average exchange rates relative to 1 USD of 22.50 for the Mexican peso (“MXN”), 3.50 for the Peruvian sol (“PEN”), 77.53 for the Argentine peso (“ARS”), 6.91 for the Bolivian boliviano (“BOB”), and $1.35 for the Canadian dollar (“CAD”).

    (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.

    (4)

    As shown in the detailed quantification of consolidated AISC, included in the “Alternative Performance (Non-GAAP) Measures” section of the MD&A for the three months ended June 30, 2020, corporate general and administrative costs, and exploration and project development expenses are included in Consolidated Silver Basis AISC, but are not allocated in calculating AISC for the Silver and Gold Segments.

    (5)

    Totals may not add due to rounding.

    (6)

    Pan American does not  provide guidance for Cash Costs on a Consolidated Silver Basis, as  AISC guidance better reflects costs on a Consolidated Silver Basis.

    Consolidated Base Metal Production

    (tonnes ‘000s)

    Zinc

    40.0 – 43.0

    Lead

    17.0 – 18.0

    Copper

    4.3 – 4.9

    2020 Capital
    Investment
    ($ millions)

    La Colorada

    19.0 – 19.5

    Dolores

    42.0 – 42.5

    Huaron

    5.5 – 6.0

    Morococha

    5.5 – 6.0

    San Vicente

    3.5 – 4.0

    Manantial Espejo, COSE, and Joaquin

    3.0

    Shahuindo

    44.5 – 45.5

    La Arena

    40.0 – 41.0

    Timmins

    23.0 – 24.0

    Sustaining Capital Total

    185.0 – 189.0

    La Colorada skarn project

    13.5 – 14.0

    Timmins expansion

    4.0 – 4.5

    Other

    7.5

    Project Capital

    25.0 – 26.0

    Total Capital

    210.0 – 215.0

    Mexico, Peru, Canada, Argentina and Bolivia. We 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, we provide enhanced exposure to silver in addition to a diversified portfolio of gold producing assets. Pan American has a 26-year history of operating in Latin America, earning an industry-leading reputation for corporate social responsibility, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C. and our shares trade on NASDAQ and the Toronto Stock Exchange under the symbol “PAAS”.

    panamericansilver.com.” data-reactid=”82″>Learn more at panamericansilver.com.

    Christopher Emerson, FAusIMM, Vice President Business Development and Geology, each of whom are Qualified Persons, as the term is defined in Canadian National Instrument 43-101 – Standards of Disclosure of Mineral Projects.

    www.sedar.com, or Pan American’s most recent Form 40-F furnished to the SEC.” data-reactid=”85″>For additional information about Pan American’s material mineral properties, please refer to Pan American’s Annual Information Form dated March 12, 2020, filed at www.sedar.com, or Pan American’s most recent Form 40-F furnished to the SEC.

    In this news 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. 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 basic adjusted earnings per share. The Company believes that these measures better reflect normalized earnings as they eliminate items that in management’s judgment 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 or gold ounce sold, net of by-product credits (“AISC”). The Company has adopted AISC 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.
    • Working capital is calculated as current assets less current liabilities. Working capital 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 whether the Company is able to meet its current obligations using its current assets.
    • Total available liquidity is calculated as the sum of Cash and cash equivalents, Short-term Investments, and the amount available on the Credit Facility. Total available liquidity 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 liquid assets available to the Company.

    Readers should refer to the “Alternative Performance (non-GAAP) Measures” section of the Company’s Management’s Discussion and Analysis for the period ended December 31, 2019, for a more detailed discussion of these and other non-GAAP measures and their calculation.

    La Colorada; and our portfolio growth profile.

    Bell Creek; 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; our ability to secure and maintain title and ownership to properties and the surface rights necessary for our operations; and our ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.

    Canada, the United States, Mexico, Peru, Argentina, Bolivia, Guatemala or other countries where the Company may carry on business, including legal restrictions relating to mining, including in Chubut, Argentina, risks relating to expropriation, and risks relating to the constitutional court-mandated ILO 169 consultation process in Guatemala; risks of liability relating to our past sale of the Quiruvilca mine in Peru; 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.

    Canadian public disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and information concerning mineralization, deposits, mineral reserve and mineral 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 term ”inferred mineral 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 mineral 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.

    http://www.prnewswire.com/news-releases/pan-american-silver-reports-cash-flow-from-operations-of-62-8-million-in-q2-2020-and-updates-2020-guidance-301107067.html” data-reactid=”114″>View original content:http://www.prnewswire.com/news-releases/pan-american-silver-reports-cash-flow-from-operations-of-62-8-million-in-q2-2020-and-updates-2020-guidance-301107067.html

    SOURCE Pan American Silver Corp.

    http://www.newswire.ca/en/releases/archive/August2020/05/c9588.html” data-reactid=”135″>View original content: http://www.newswire.ca/en/releases/archive/August2020/05/c9588.html

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