# paas12 31x2024mda

Source Brief: https://evesgoldminers.com/research/source-briefs/pan-american-silver-2025-02-19-paas12-31x2024mda-c7413fd4
Original source: https://www.sec.gov/Archives/edgar/data/771992/000077199225000015/paas12-31x2024mda.htm
Original published: 2025-02-19
EGM generated: 2026-09-04
Company: Pan American Silver (PAAS)

## Use Note

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## Extracted Document Text

# paas12 31x2024mda

Source: https://www.sec.gov/Archives/edgar/data/771992/000077199225000015/paas12-31x2024mda.htm
Published: 2025-02-19T00:00:00+00:00
Fetched: 2026-05-05T09:39:55.961+00:00
Source artifact: c7413fd4-c69b-46ea-a353-8be92bab438f
Normalizer input: text

## Content

# paas12 31x2024mda
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Document Management’s Discussion and Analysis FOR THE YEAR ENDED DECEMBER 31, 2024 February 19, 2025 TABLE OF CONTENTS Introduction 2 Core Business and Strategy 3 Strategic Dispositions 3 202 4 Highlights 4 202 4 Operating Results vs Operating Outlook 5 Operating Performance 6 Financial Performance 10 202 5 Operating Outlook 17 Annual and Quarterly Financial Information 24 Operating Metrics 25 Alternative Performance Measures (Non-GAAP) 27 Risks and Uncertainties 36 Material Accounting Policies, Standards and Judgements 46 Related Party Transactions 47 Disclosure Controls and Procedures 47 Mineral Reserves and Resources 49 Cautionary Note 53 PAN AMERICAN SILVER CORP. 1 Management Discussion and Analysis For the years ended December 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS  INTRODUCTION This Management’s Discussion and Analysis (“MD&A”) is intended to help the reader understand the significant factors that influence the performance of Pan American Silver Corp. and its subsidiaries (collectively “Pan American”, “we”, “us”, “our” or the “Company”) and such factors that may affect its future performance. This MD&A should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2024 (the "2024 Annual Financial Statements”) prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards”), and the related notes contained therein. All amounts in this MD&A, the 2024 Annual Financial Statements are expressed in United States dollars (“USD”) unless identified otherwise. This MD&A refers to various non-Generally Accepted Accounting Principles (“non-GAAP”) measures, such as "All-in Sustaining Costs per ounce sold”, “Cash Costs per ounce sold”, “sustaining capital”, “project capital”, “adjusted earnings and loss” and “basic adjusted earnings and loss per share”, “total debt”, “capital”, and “working capital”, which are used by the Company to manage and evaluate operating performance at each of the Company’s mines and are widely reported in the mining industry as benchmarks for performance, do not have standardized meanings under IFRS Accounting Standards, and the methodology by which these measures are calculated may differ from similar measures reported by other companies. To facilitate a better understanding of these non-GAAP measures as calculated by the Company, additional information has been provided in this MD&A. Please refer to the section of this MD&A entitled “Alternative Performance (Non-GAAP) Measures” for a detailed description of “All-in Sustaining Costs per ounce sold”, “Cash Costs per ounce sold”, "sustaining capital", "project capital", “adjusted earnings” and “basic adjusted earnings per share”, “total debt”, “capital”, and “working capital” as well as details of the Company’s by-product credits and a reconciliation, where appropriate, of these measures to the 2024 Annual Financial Statements. Any reference to “Cash Costs” in this MD&A should be understood to mean Cash Costs per ounce of silver or gold sold, net of by-product credits (respectively, the "Silver Segment Cash Costs" or "Gold Segment Cash Costs"). Any reference to “AISC” in this MD&A should be understood to mean all-in sustaining costs per silver or gold ounce sold, net of by-product credits (respectively, the "Silver Segment AISC" or "Gold Segment AISC"). Except for historical information contained in this MD&A, the following disclosures are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian provincial securities laws, or are future oriented financial information and as such, are based on an assumed set of economic conditions and courses of action. Please refer to the cautionary note regarding forward-looking statements and information at the back of this MD&A, the “Risks Related to Pan American’s Business” contained in the Company’s most recent Annual Information Form on file with the Canadian provincial securities regulatory authorities and Form 40-F on file with the U.S. Securities and Exchange Commission (the “SEC”). Additional information about Pan American and its business activities are available on SEDAR+ at www.sedarplus.ca and with the SEC on EDGAR at www.sec.gov/edgar. PAN AMERICAN SILVER CORP. 2 Management Discussion and Analysis For the years ended December 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) CORE BUSINESS AND STRATEGY Pan American engages in silver and gold mining and related activities, including exploration, mine development, extraction, processing, refining and reclamation. The Company owns and operates mines located in Canada, Mexico, Peru, Bolivia, Argentina, Chile and Brazil. We also own the Escobal mine in Guatemala that is currently not operating. In addition, the Company is exploring for new silver deposits and opportunities throughout the Americas. The Company is listed on the Toronto Stock Exchange (Symbol: PAAS) (the "TSX") and on the New York Stock Exchange (Symbol: PAAS) (the "NYSE"). Pan American’s vision is to be the world’s premier silver mining company, with a reputation for excellence in discovery, engineering, innovation and sustainable development. To achieve this vision, we base our business on the following strategy: • Generate sustainable profits and superior returns on investments through the safe, efficient and environmentally sound development and operation of our assets. • Constantly replace and grow our mineral reserves and mineral resources through targeted near-mine exploration and global business development. • Foster positive long-term relationships with our employees, shareholders, communities and local governments through open and honest communication and ethical and sustainable business practices. • Continually search for opportunities to upgrade and improve the quality of our assets, both internally and through acquisition. • Encourage our employees to be innovative, responsive and entrepreneurial throughout our entire organization. To execute this strategy, Pan American has assembled a sector-leading team of mining professionals with a depth of knowledge and experience in all aspects of our business, which enables the Company to confidently advance early-stage projects through construction and into operation. STRATEGIC DISPOSITION On December 2, 2024, the Company completed the previously announced divestment of its 100% interest in La Arena S.A. (“La Arena”), which owns the La Arena gold mine as well as the La Arena II project in Peru, to Jinteng (Singapore) Mining Pte. Ltd., a subsidiary of Zijin Mining Group Co., Ltd. (collectively, “Zijin”). In accordance with the share purchase agreement for the sale of La Arena ("SPA"), the Company received total cash proceeds of $306.6 million, which was comprised of $245.0 million of cash consideration, estimated net closing cash, and an estimated net working capital amount. The net working capital is subject to final adjustments as provided in the SPA. Additionally, Zijin granted the Company a life-of-mine gold net smelter return royalty of 1.5% for the La Arena II project, and contingent consideration of $50.0 million payable in cash ("Contingent Consideration") contingent upon the commencement of commercial production from the La Arena II project. The Contingent Consideration is also subject to certain adjustments as provided in the SPA relating to closure costs of the La Arena mine. As part of the approval received from the Government of Canada under the Investment Canada Act, Pan American and La Arena entered into an offtake agreement in respect of the La Arena II project, which will enable Pan American to secure up to 60% of the future copper concentrate supply from the La Arena II project on commercial terms for sale in North American markets, following the commencement of commercial production. PAN AMERICAN SILVER CORP. 3 Management Discussion and Analysis For the years ended December 31, 2024 and 2023 (tabular amounts are in millions of U.S. dollars except number of shares, options, warrants, per share amounts, and per ounce amounts, unless otherwise noted) 2024 OPERATIONAL AND FINANCIAL HIGHLIGHTS Silver production of 21.06 million ounces Consolidated silver production for 2024 was 21.06 million ounces, 0.62 million ounces higher than the 20.44 million ounces produced in 2023. Silver and gold production in 2024 reflected a full twelve-month contribution from the Cerro Moro, Minera Florida, El Peñon and Jacobina mines acquired in 2023 (the “Acquired Mines”) as part of the acquisition of Yamana Gold Inc. (“Yamana”), completed on March 31, 2023 (the “Yamana Acquisition”). Gold production of 892.5 thousand ounces Consolidated gold production for 2024 was 892.5 thousand ounces, 9.6 thousand ounces higher than the 882.9 thousand ounces produced in 2023. Gold production for 2024 was a Company record, primarily reflecting the full-year contribution from the Acquired Mines. Cash Costs (1) and All-In Sustaining Costs (“AISC”) (1) Silver Segment Cash Costs per ounce in 2024 were $14.30, $1.23 higher than in 2023. Gold Segment Cash Costs per ounce in 2024 were $1,203, $90 higher than the Cash Costs reported in 2023. Silver Segment AISC excluding net realizable value ("NRV") inventory adjustments for 2024 of $18.98 per ounce ($18.70 per ounce including NRV inventory adjustments) were $1.07 per ounce higher than in 2023. Gold Segment AISC excluding NRV inventory adjustments for 2024 of $1,501 per ounce ($1,530 per ounce including NRV inventory adjustments) were $85 per ounce higher than in 2023. Income Statement, Cash Flow, Liquidity and Working Capital Position Revenue in 2024 of $2.8 billion was 22% higher than in 2023, primarily as a result of higher metal prices. Net earnings of $112.7 million, or $0.31 basic earnings per share, in 2024 compared with the 2023 net loss of $104.9 million, or $0.32 basic loss per share. The increase was largely driven by a $251.7 million increase in mine operating earnings, with the impact of other items largely offsetting each other, as described in the "Financial Performance" section of this MD&A. Adjusted earnings (1) were $286.7 million, or $0.79 basic adjusted earnings per share in 2024, compared to adjusted earnings of $39.3 million, or $0.12 basic adjusted earnings per share in 2023. Cash flow from operations generated $724.1 million in 2024, compared to $450.2 million in 2023. Available liquidity and working capita

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