Pan American Silver Investor Presentation - November 2019
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Pan American Silver
Investor Presentation
November 2019
Cautionary Note Non-GAAP Measures This presentation of Pan American Silver Corp. and its subsidiaries (collectively, “Pan American”, “Pan American Silver”, the “Company”, “we” or “our”) refers to various non-GAAP measures, such as “all- in sustaining costs per ounce sold", “cash costs per ounce sold”, “adjusted earnings” and “basic adjusted earnings per share”, "total debt", "capital", “operating margin”, “cumulative operating margin” and “working capital". These measures do not have a standardized meaning prescribed by IFRS as an indicator of performance, and may differ from methods used by other companies. Any reference to “Cash Costs” in this presentation should be understood to mean cash costs per ounce of silver or gold sold, net of by-product credits. Any reference to “AISC” in this presentation should be understood to mean all-in sustaining costs per silver or gold ounce sold, net of by-product credits. Readers should refer to the “Alternative Performance (Non-GAAP) Measures” section of the Company’s Management’s Discussion and Analysis (“MD&A”) for the period ended September 30, 2019, available at www.sedar.com. Reporting Currency and Financial Information Unless we have specified otherwise, all references to dollar amounts or $ are to United States dollars. Integration of Tahoe Resources Inc. (“Tahoe”) On February 22, 2019, the Company completed the previously announced transaction whereby Pan American acquired all of the issued and outstanding shares of Tahoe (“Acquisition”). Tahoe was a mid- tier publicly traded precious metals mining company with ownership interests in a diverse portfolio of mines and projects including the following principal mines: La Arena and Shahuindo in Peru; Timmins West and Bell Creek in Canada (together "Timmins"); and Escobal in Guatemala, where operations have been suspended since June 2017 (together the "Acquired Mines"). The Company now operates three gold mines as a result of the Acquisition. Consequently, the Company's operations have been divided into silver and gold segments for the purposes of our financial reporting. All production, operating and financial results of the Acquired Mines (including Cash Costs and AISC amounts) and included in the Company's consolidated results and updated guidance, reflect only the results from February 22, 2019 onwards. Further details of the Acquisition are provided in the "Acquisition of Tahoe" section of the MD&A for the period ended September 30, 2019. Cautionary Note Regarding Forward Looking Statements and Information Certain of the statements and information in this presentation constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this presentation relate to, among other things, future financial and operational performance; future production of silver, gold and other metals produced by the Company, including the Acquired Mines; future Cash Costs and AISC; the sufficiency of the Company’s current working capital, anticipated operating cash flow or its ability to raise necessary funds; the anticipated amount and timing of production at each of the Company’s properties and in the aggregate; our expectations with respect to future metal prices and exchange rates; the duration and effect of the license suspensions and any road blocks relating to the Escobal mine; the estimated cost of and availability of funding necessary for sustaining capital; forecast capital and non-operating spending; and the Company’s plans and expectations for its properties, operations and exploration projects. These statements and information reflect Pan American’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by Pan American, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: 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 mineral 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 and can be maintained; and our ability to comply with environmental, health and safety laws, particularly given the potential for modifications and expansion of such laws. The foregoing list of assumptions is not exhaustive. …continued on next page 2 November 7, 2019
Cautionary Note Cautionary Note Regarding Forward Looking Statements and Information (continued)… The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this presentation and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in silver, gold, and base metal prices; fluctuations in prices for energy inputs; fluctuations in currency markets (such as the PEN, MXN, ARS, BOL, GTQ and CAD versus the USD); risks related to the technological and operational nature of the Company’s business; changes in national and local government, legislation, taxation, controls or regulations and political, legal or economic developments in Canada, the United States, Mexico, Peru, Argentina, Bolivia, Guatemala or other countries where the Company may carry on business, including the risk of expropriation related to certain of our operations, particularly in Argentina and Bolivia and risks related to the constitutional court-mandated ILO 169 consultation process in Guatemala; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected geological or structural formations, pressures, cave-ins and flooding); risks relating to claims and legal proceedings involving or against the Company and our subsidiaries; risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with and claims by the local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the Company’s ability to secure our mine sites or maintain access to our mine sites due to criminal activity, violence, or civil and labour unrest; the speculative nature of mineral exploration and development, including the risk of obtaining or retaining necessary licenses and permits and the presence of laws, regulations and other legal impediments that may impose restrictions on mining, including those currently in the province of Chubut, Argentina, or that might otherwise prevent or cause the suspension or discontinuation of mining activities; diminishing quantities or grades of mineral reserves as properties are mined; global financial conditions; the Company’s ability to complete and successfully integrate acquisitions and to mitigate other business combination risks; challenges to, or difficulty in maintaining, the Company’s title to properties and continued ownership thereof; the actual results of current exploration activities, conclusions of economic evaluations, and changes in project parameters to deal with unanticipated economic or other factors; increased competition in the mining industry for properties, equipment, qualified personnel, and their costs; having sufficient cash to pay obligations as they come due; 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 attributing undue certainty or 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, and does not assume any obligation, to update or revise forward-looking statements or information to reflect changes in assumptions or in circumstances or any other events affecting such statements or information, other than as required by applicable law. Technical Information Scientific and technical information contained in this presentation with respect to Pan American Silver Corp. has been reviewed and approved by Martin Wafforn, P.Eng., SVP Technical Services and Process Optimization, and Chris Emerson, FAusIMM, VP Business Development and Geology, who are Pan American’s qualified persons for the purposes of National Instrument 43-101 (“NI 43-101”). Mineral reserves in this presentation were prepared under the supervision of, or were reviewed by, Martin Wafforn and Chris Emerson. See Pan American’s Annual Information Form dated March 12, 2019, available at www.sedar.com for further information on Pan American’s material mineral properties as at December 31, 2018, including information concerning associated QA/QC and data verification matters, the key assumptions, parameters and methods used by the Pan American to estimate mineral reserves and mineral resources, and for a detailed description of known legal, political, environmental, and other risks that could materially affect Pan American’s business and the potential development of Pan American’s mineral reserves and resources. Please also refer to Pan American’s news releases dated October 23, 2018, February 21, 2019, May 8, 2019, August 1, 2019, and October 1, 2019 with respect to the La Colorada skarn exploration results. For further information on the material mineral properties acquired from Tahoe, please refer to the Company's management information circular dated December 4, 2018, including additional information contained in Tahoe's disclosure incorporated by reference therein, available at www.sedar.com. The mineral reserves and resources of Pan American in this presentation reflect our mineral reserves and resources estimates as at June 30, 2019 as announced in our news release dated September 4, 2019. See presentation appendix for more detailed information. 3 November 7, 2019
Cautionary Note to U.S. Investors Concerning Estimates of Mineral Reserves and Resources This presentation has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all mineral reserve and resource estimates included in this presentation have been prepared in accordance with Canadian National Instrument 43-101 – Standards of Disclosure for Mineral Projects (‘‘NI 43-101’’) and the Canadian Institute of Mining, Metallurgy and Petroleum classification system. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian 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 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 presentation uses the terms ‘‘measured resources’’, ‘‘indicated resources’’ and ‘‘inferred resources’’. U.S. investors are advised that, while such terms are recognized and required by Canadian securities laws, the SEC has not recognized them under Industry Guide 7 prior to the adoption of the modernization of Property Disclosure for Mining Registrants. The requirements of NI 43-101 for identification of ‘‘reserves’’ has not the same as those of the SEC, and 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 has previously only permitted 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. 4 November 7, 2019
The World’s Premier Silver Mining Company
Largest publicly traded silver mining company by free float
World class primary silver asset portfolio containing 557 M ounces of silver reserves
An industry leader in high margin / low cost production
Strong production profile
2019 production guidance: 25.3 – 26.3 Moz silver and 550 – 600 koz gold, plus base metals
Strong financial position and capital discipline
Since 2010, returned $446M to shareholders and invested $553M in high-quality expansions funded from cash flow
Three large catalysts for growing shareholder value:
Escobal, Guatemala – one of world’s largest silver mines
La Colorada, Mexico -- major new silver-zinc-lead discovery
Navidad, Argentina – world’s largest undeveloped silver deposit
25-year proven track record of responsibly building and operating mines in Latin America
5 November 2019
A Leader in Responsible Mining
Culture of Social Responsibility
Human Rights Approach to Social Sustainability
and Environmental Stewardship
Transparent Sustainability Human Rights Policy implemented
Reporting Human Rights Officer appointed
• Based on annual consultation process with • Voluntary Principles on Security and Human Rights and UNICEF
stakeholder groups Child Rights and Security Gap Analysis in the mines with
security forces: Dolores and La Colorada mines (Mexico) and
• Report on our efforts towards the UN’s Escobal (Guatemala)
Sustainable Development Goals
• Report on environmental and social audits
Track Record of Success in Latin America
Member of the Mining 25 years of building trust with local communities
and indigenous groups across Latin America
Association of Canada’s
Towards Sustainable
Robert R. Hedley Award for
Mining Program Excellence in Social and
Environmental Responsibility
(AME, 2019)
Social responsibility is an important pillar of Pan American’s governing philosophy
6 November 2019
Responsible Environmental Management
Best Practice Tailings Management
• Implementing Canadian tailings standards Successfully permitted 2 new
at all operations mines and 5 major mine
• Completed successful independent tailings expansions in the past 13 years
dam safety reviews of all facilities in the last
5 years
• Disclosure on tailings according to Investor Climate Change Strategy
Mining and Tailings Safety Initiative Disclosure: Reporting Scope 1 and 2 emissions
• Advocating for responsible tailings since 2010. Site-based energy efficiency goals.
management through MAC and the Global Disclosure in line with the Task Force on Climate
Tailings Review Related Disclosure (TCFD).
Benefits: Role of silver in the low-carbon
economy.
Zero material environmental incidents Advocacy: Member of the World Economic
in Company history Forum’s Alliance of CEO Climate Leaders.
Resilience: Assessment of potential climate
change risks to our operations by Q4 2019.
7 November 2019
Diversified Portfolio Across the Americas
25 years of experience working in Latin America
8 November 2019
Consolidated Q3 2019 Highlights
• Revenue of $352.2M, up 88% from Q3 2018, primarily on higher gold
sales volumes and higher precious metal prices
• Net earnings of $37.7M, or $0.18 basic earnings per share
• Silver production of 6.7 Moz and gold production of 150.2 koz
• Quarterly cash dividend of $0.035 per common share paid
• Integration of former Tahoe operations progressing well
• Exploration success continues at La Colorada
9 November 2019
Q3 2019 Consolidated Cash Flows (1) Net cash generated from operating activities before changes in working capital, interest and income taxes paid, and mine care and maintenance. (2) Excludes amounts included in Transaction and integration costs. (3) “STI” means short-term investments, “NCI” means non-controlling interests, and “NUAG” means New Pacific Metals Corp. 10 November 2019
Liquidity and Capital Position
US$ Millions at September 30, 2019
Cash and Short-term Investments 177.0
Total Available Liquidity(1) 362.0
Working Capital(2) 459.3
Amount drawn on Revolving Credit Facility 315.0
Total debt(3) 360.5
(1) Total available liquidity is a non-GAAP measure, and includes cash and cash equivalents, short-term investments, and the undrawn portion of the
Company’s revolving credit facility.
(2) Working capital is a non-GAAP measure calculated as current assets less current liabilities. The Company and certain investors use this information
to evaluate whether the Company is able to meet its current obligations using its current assets.
(3) Total debt is a non-GAAP measure calculated as the total of amounts drawn on the Company’s $500 million revolving credit facility, finance lease
liabilities and loans payable.
See the “Non-GAAP Measures” section of our Cautionary Note on page 2 of this presentation.
11 November 2019Tahoe Acquisition:
Accretive on Reserves per Share
The Tahoe transaction increased silver equivalent reserves per share nearly 50%
from 4.3 AgEqOz/share to 6.5 AgEqOz/share.
1,400 1,315 7.0
1,200 6.0
Silver equivalent reserve ounces/share
Silver equivalent reserves (Moz)1
1,000 5.0
800 4.0
639 662
590 603 580 584
600 531 3.0
400 346 2.0
200 1.0
0 0.0
2011 2012 2013 2014 2015 2016 2017 2018 2019
Silver Gold AgEq Zinc AgEq Lead AgEq Copper AgEq Silver equivalent reserve ounces/share
(1) Silver equivalent reserves are estimated using annual average market prices for each year as published by the London Metal Exchange (“LME”, for zinc, lead, copper) and London Bullion Market
Association (“LBMA”, for silver and gold).
See presentation Appendix for more detailed information on the Company's reserves and resources.
12 November 2019Tahoe Acquisition:
Accretive on Production per Share
The Tahoe acquisition increased silver equivalent production per share by 27% based on 2019
Guidance, before any potential Escobal production1.
Silver equivalent production Silver equivalent production (oz)/share 0.7
100
92.7
0.6
Silver equivalent production (oz)/share
Silver equivalent production (Moz)2
80
0.5
58.5
60 53.9 0.4
51.6 51.5
46.7
41.1
0.3
40 35.3
29.7
0.2
20
0.1
0 0.0
2011 2012 2013 2014 2015 2016 2017 2018 2019
Guidance
(1) Based on the Revised August 2019 Forecast. Please refer to the MD&A for the period ended September 30, 2019 for more information.
(2) Silver equivalent production is calculated using annual average market prices for each year as published by the LME and LBMA, and realized metal prices for Q3 YTD 2019 and the following
metal prices for the remainder of 2019 for the 2019 Guidance: of $17.25/oz for silver, $2,400/tonne ($1.09/lb) for zinc, $2,150/tonne ($0.98/lb) for lead, $5,750/tonne ($2.61/lb) for copper, and
$1,475/oz for gold.
13 November 2019Strong Operating Margins through
Cost Discipline
Generated a Cumulative Operating Margin1 of ~$0.5 billion dollars over the 2015 to 2018 period.
$800 $20
Cumulative Operating Margin (Millions)
$/oz
$17.35 $16.99 $18
$700 $16.17
$15.53 $15.61
$16
$600
$14.49 $14
$500
$12
$11.94
$400 $10
$10.28
$9.68
$8
$300
$6.00 - $7.50 $6
$200
$4
$100
$2
$0 $0
2
2015 2016 2017 2018 2019 Guidance
& Forecasted Margin
1
All-in Sustaining Costs Operating Margin per Ounce 1 Cumulative Operating Margin1 Average Realized Silver Price
(1) All-in Sustaining Costs per Ounce (AISC), Operating Margin per Ounce and Cumulative Operating Margin are non-GAAP financial measures; see the “Non-GAAP Measures” section of our
Cautionary Note on page 2 of this presentation. Operating Margin per Ounce and Cumulative Operating Margin are calculated as the difference between the average realized silver price and
AISC, on a per ounce sold basis and on a dollar basis, respectively.
(2) 2019 Guidance and forecast operating margin and cumulative operating margin are based on realized silver price for Q3 YTD 2019 and forecast silver price of $17.25/oz for the remainder
of 2019 for the 2019 Guidance and the mid-point of the Revised November 2019 Forecast range for AISC on a consolidated silver basis and silver production; for more information on the
Revised November 2019 Forecast, please refer to the MD&A for the period ended September 30, 2019.
14 November 2019Free Cash Flow Allocation(1)
11%
Return to shareholders
27%
through dividends
~$1
Cash Flow Priorities
Billion Invest in high-return
FCF generated projects
since 2010(2) 13%
49% Maintain balance sheet
flexibility, with low to
zero debt
Dividends Share Repurchases Expansion Capital Debt Repayment
$446 M cumulative cash returned to shareholders (dividends and share buy-backs) since 2010 in
addition to investing $553 M in expansionary capital
(1) Generated approximately $1.08 billion in free cash flow and allocated approximately $1.12 billion.
(2) Free Cash Flow is a non-GAAP measure calculated as net increase (decrease) in cash and cash equivalents before dividend payments, share repurchases, expansion capital, M&A, short
term investment payments and proceeds, debt repayments and proceeds and equity issuances.
See the “Non-GAAP Measures” section of our Cautionary Note on page 2 of this presentation.
15 November 2019Product Portfolio with Long-Term
Silver Exposure
2019 Guidance1 2019 Revenue by Metal3 Reserves by Metal4
Silver
Production: 25.3 – 26.3 Moz
AISC: $9.50 - $11.002
Gold
Production: 550 – 600 koz
AISC: $1,000 - $1,1002
Silver Gold Zinc Lead Copper
(1) For more information on the 2019 Guidance, including revisions to AISC, please refer to the MD&A for the period ended September 30, 2019.
(2) All-in sustaining costs per ounce (AISC) is a non-GAAP financial measures; see the “Non-GAAP Measures” section of our Cautionary Note on page 2 of this presentation.
(3) 2019 revenue by metal is based on the mid-point of the Revised August 2019 Forecast range and realized metal prices for Q3 YTD 2019 and the following metal prices for the remainder of 2019:
$17.25/oz for silver, $2,400/tonne ($1.09/lb) for zinc, $2,150/tonne ($0.98/lb) for lead, $5,750/tonne ($2.61/lb) for copper, and $1,475/oz for gold.
(4) The reserves by metal reflect the Company's 2019 mineral reserve estimates as announced in the news release dated September 4, 2019 and metal price assumptions of $17.00/oz for silver, $1,300/oz
for gold, $2,500/tonne for zinc, $2,100/tonne for lead, and $6,000/tonne for copper. See presentation Appendix for more detailed information on the Company's reserves and resources.
16 November 2019Strategic Priorities
Integration & • Integrate Tahoe operations and capture synergies
Synergies • Divest non-core assets over time
• Reduce debt incurred through Tahoe acquisition
Capital Allocation • Return to shareholders through dividends
• Invest in high-return projects
• Focus on cost control to optimize operating margins
Operations • Ramp-up Dolores underground mine to 1,500 tpd
• Re-initiate development of the Joaquin and COSE mines in H2 2019
• La Colorada exploration discovery – targeting initial resource estimate in December 2019
Value Drivers • Potential development of the Navidad project
• Potential restart of operations at Escobal
Vision: The Premier Silver Mining Company
17 November 2019Escobal
One of The Largest Primary Silver Deposits
Dolores
Huaron
2017 Silver Production (Moz Ag)
Source: all information shown in the table has been obtained from CIBC World Markets, as at November 2017, and has not been independently verified by the Company.
Escobal’s silver production and AISC is based on Tahoe’s disclosure for 2016. Escobal has not operated since June 2017. See slides on Escobal in presentation Appendix for further details.
Bubble size represents silver reserves; see presentation Appendix for more detailed information on Pan American’s and Tahoe’s reserves and resources.
AISC (US$/oz) or all-in sustaining costs per silver ounce sold is shown net of by-product credits and considered to be a non-GAAP financial measure.
18 November 2019Escobal
One of The World’s Best Silver Mines
High quality, well built operation with over US$500 million invested (1)
One of the world’s largest primary silver deposits with reserves of 264 Moz(2)
3 consecutive years of production above 20 Moz Ag/year at
AISC consistently below US$10/oz Ag prior to 2017
Support ILO 169 consultation led by Guatemalan government and implement
Pan American’s approach to community engagement and business practices
Historical Gold Production & AISC(3) Reserves & Resources(2) (as at June 30, 2019)
$9.15 $9.11
$8.06 Grade Contained Metal
Tonnes Ag Au Pb Zn Ag Au Pb Zn
(Mt) (g/t) (g/t) (%) (%) (Moz) (koz) (kt) (kt)
P&P Reserves 24.7 334 0.35 0.79 1.30 264.5 278 196 320
20 20 21
M&I Resources 16.5 208 0.21 0.37 0.65 110.1 110 61 106
2014A 2015A 2016A Inferred
1.9 180 0.90 0.22 0.42 10.7 54 4 8
Production (Moz) AISC ($/oz) Resources
(1) Based on development, expansion, and sustaining capital invested from 2011 to 2017. (2) See presentation Appendix for more detailed information on the Company's
19 reserves and resources. (3) AISC is a non-GAAP financial measure; see the “Non-GAAP Measures” section of our Cautionary Note on page 2 of this presentation.La Colorada Discovery
Major skarn deposit discovered late 2018
Discovery located adjacent and below Pan American’s La Colorada vein system
Drilling encountered wide intercepts with high-grade, polymetallic mineralization
Drill holes currently cover an area of 600 metres x 300 metres
Targeting initial resource estimate late 2019
DRILL HIGHLIGHTS
• U-39-18: 223 m at 69 g/t Ag, 0.2 % Cu, 1.86% Pb and 3.36% Zn
• U-51-19: 114.0 m at 109 g/t Ag, 0.38% Cu, 1.66% Pb and 3.80% Zn
• including 58.2 m at 158 g/t Ag, 0.59% Cu, 2.57% Pb and 5.08% Zn
• U-46-19: 126.0 m at 55 g/t Ag, 0.22% Cu, 3.79% Pb and 6.56% Zn
• U-22-19: 254 m at 41 g/t Ag, 0.07 % Cu, 0.92 % Pb, 3.68 % Zn
• U-68-18: 308.1 m at 46 g/t Ag, 0.20% Cu, 1.93% Pb, 4.56% Zn
• U-26-19: 276.1 m at 34 g/t Ag, 0.18% Cu, 1.69% Pb, 3.76% Zn
• U-66-19: 252.9 m at 67 g/t Ag, 0.19% Cu, 3.84% Pb, 6.56% Zn
• including 148.6 m at 81 g/t Ag, 0.23% Cu, 4.43% Pb and 7.66% Zn
• U-79-19: 379.0 m at 54 g/t Ag, 0.50% Cu, 1.96% Pb, 3.73% Zn
• U-72-19: 132.5 m at 56 g/t Ag, 0.19% Cu, 3.81% Pb, 6.32% Zn
Drill results have been reported in our news releases dated Oct. 23, 2018, Feb. 21, 2019, May 8, 2019, Aug. 1, 2019 and Oct. 30, 2019.
For further details please see the Company’s website at www.panamericansilver.com/operations/north-and-central-america/la-colorada/
20 November 2019Navidad
One of the Largest Undeveloped Primary Silver Deposits
100% owned silver project located in Chubut Province, Argentina
Project comprises 8 individual mineral deposits in 3 separate mineralized
trends
Scalable production profile with high-grade mineralization at surface
Development contingent on provincial mining law change
Navidad
Resources1 (as at June 30, 2019)
Grade Contained Metal
Tonnes Ag Cu Pb Ag Cu Pb
(Mt) (g/t) (%) (%) (Moz) (kt) (kt)
M&I Resources 155.2 127 0.05 0.85 632.4 71 1326
Inferred
45.9 81 0.02 0.57 119.4 9 262
Resources
(1) See presentation Appendix for more detailed information on the Company's reserves and resources.
21 November 2019Portfolio Assets Offering Additional Value
• Maverix Metals Inc. - Pan American owns ~26% (~29% fully diluted) of this
precious metals royalty and streaming company, representing a market value of
~$156 M(1).
• Shalipayco project (Peru) – Pan American holds a free carried interest of 25%
to commercial production in this zinc development project owned by Nexa
Resources.
• Silver Sand property (Bolivia) – Pan American holds ~17% interest in New
Pacific Metals Corp.(2)
• Amalia project (Mexico) – JV agreement with Radius Gold whereby Pan
American can earn an initial 65% in the project and may earn an additional 10%
by completing a preliminary feasibility study.
(1) Based on Maverix Metals Inc. (“Maverix”) closing price as at November 7, 2019 of $5.65/share on the TSX Venture Exchange (listed as “MMX”) and Pan
American’s ownership of ~26% of Maverix.
(2) Share ownership interest as of October 2019 and calculated on a non-diluted basis.
22 November 2019PAAS Company Snapshot
Ticker TSX/NASDAQ PAAS
Shares outstanding 209.6 million
Shares issuable upon exchange of CVRs(1) 15.6 million
Market cap(2) $4.0 billion
Avg. daily volume (3 month)(2) 3.1 million shares
Dividend yield(3) 0.8%
Total debt(4) $360.5 million
Total available liquidity(5) $362.0 million
(1) Shareholders of Tahoe received one contingent value right ("CVR") for each Tahoe under the plan of arrangement with Pan American Silver. Each
CVRs will be exchanged for 0.0497 of a Pan American share upon first commercial shipment of concentrate following restart of operations at the
Escobal mine. The CVRs expire in 2029.
(2) All data based on NASDAQ exchange; as of market close November 20, 2019.
(3) Based on closing share price on November 20, 2019 and dividend declared November 6, 2019, annualized.
(4) Total debt is a non-GAAP measure that includes all financial liabilities; total debt at September 30, 2019.
(5) Total available liquidity is a non-GAAP measure, and includes cash and cash equivalents, short-term investments, and the undrawn portion of the
Company’s revolving credit facility.
See the “Non-GAAP Measures” section of our Cautionary Note on page 2 of this presentation.
23 November 2019Appendix
2019 Guidance
The table provides management’s guidance for 2019, as at November 6, 2019.
Silver Production Gold Production Cash Costs AISC
(million ounces) (thousand ounces) ($ per ounce)(1) ($ per ounce)(1)
Silver Segment(2) 25.2 – 26.2 140.5 – 152.5 6.00 – 7.00 9.50 – 11.00
Gold Segment(2) 0.1 409.5 – 447.5 725 - 775 1,000 – 1,100
Consolidated Silver Basis(2)(3) 25.3 – 26.3 550.0 – 600.0 (5.50) – (3.80) 6.00 – 7.50
(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 period ended September 30, 2019, for a detailed description of
these measures and where appropriate a reconciliation of the measure to the Q3 2019 Financial Statements. The Cash Costs and AISC forecasts assume realized metal prices for YTD 2019 and the following
metal prices for the remainder of 2019 of $17.25/oz for silver, $2,400/tonne ($1.09/lb) for zinc, $2,150/tonne ($0.98/lb) for lead, $5,750/tonne ($2.61/lb) for copper, and $1,475/oz for gold; and average
annual exchange rates relative to 1 USD of 19.50 for the Mexican peso ("MXN"), 3.33 of the Peruvian sol ("PEN"), 41.80 for the Argentine peso ("ARS"), 6.91 for the Bolivian boliviano ("BOL"), and $1.30 for the
Canadian dollar ("CAD").
(2) As shown in the detailed quantification of consolidated AISC, included in the “Alternative Performance (Non-GAAP) Measures” section of the MD&A for the period ended September 30, 2019, corporate
general and administrative expense, and exploration and project development expense are included in Consolidated Silver Basis AISC, but are not allocated in calculating AISC for the Silver and Gold segments.
(3) Totals may not add due to rounding.
25 November 2019Silver Market
2018 Supply & Demand (million ounces)
2018 Fundamentals
• Silver price averaged $15.71, down ~8% from 2017. Total Supply 1,004.3
• Demand greater than supply, resulting in physical deficit of
Demand 1,033.5
29.2M oz in 2018.
• Strengthening USD negatively impacted silver prices. Jewelry 212.5
Coins & Bars 181.2
Outlook for 2019
• Supply demand balance tight, silver/gold ratio at historic heights. Silverware 61.1
• Investment demand will drive silver prices. Absent investment Industrial 578.6
demand, silver trades like a base metal, reflecting industrial
Electronics 248.5
demand.
• Increasing importance for exposure to precious metals, including Brazing Alloys & Solders 58.0
silver, in investment portfolio to hedge against potential
Photography 39.3
downturn in equity markets.
Photovoltaic 80.5
Other Industrial 152.3
ETP & Exchange Inventory Build 50.9
Net Deficit -80.1
Source: The Silver Institute, World Silver Survey 2019
published April 2019
26 November 2019Silver: Metal of the Future
Supply 2018: Mine 856 Moz Demand 2018: Industrial 579 Moz
Scrap 155 Moz Jewelry 213 Moz
TOTAL ~ 1.0 Boz Bullion 181 Moz
Silverware 61 Moz
TOTAL ~ 1.03 Boz
Source: The Silver Institute, World Silver Survey 2019 published April 2019
27 November 2019La Colorada
Pan American’s Largest Silver Producing Mine
• 100% owned and operated by Pan American
• Underground mine located in Zacatecas, Mexico
• Expansion completed in 2017 – new mine shaft and
sulphide processing plant
La Colorada
• Currently producing silver-gold doré bars from a
conventional cyanide leach plant for the oxide ore, and
silver-rich lead and zinc concentrates from a flotation
plant treating sulphide ore
Mexico
Silver Production (Moz) Reserves & Resources(2) (as at June 30, 2019)
Grade Contained Metal
Tonnes Ag Au Pb Zn Ag Au Pb Zn
(Mt) (g/t) (g/t) (%) (%) (Moz) (koz) (kt) (kt)
7.6 8.0 - 8.2 P&P Reserves 9.4 333 0.29 1.51 2.73 100.4 86 141 256
7.1
M&I Resources 2.1 196 0.17 0.58 1.16 13.4 12 12 25
Inferred
8.1 133 0.12 2.03 4.01 34.5 32 163 324
2017A 2018A 2019 Guidance (1) Resources
(1) Guidance as at Aug. 7, 2019; Consolidated production guidance maintained on Nov. 6, 2019.
(2) See presentation Appendix for more detailed information on the Company's reserves and resources.
28 November 2019Dolores
Large Silver/Gold Mine
• 100% owned and operated by Pan American
• Located in Chihuahua, Mexico Dolores
• Mining is by open pit and underground methods
and uses conventional cyanide heap leaching to
produce gold and silver doré
• Expansion completed in 2017 featuring a pulp
agglomeration plant to process high-grade ore
• Average throughput capacity of 20,000 tpd
Mexico
Silver Production (Moz) Reserves & Resources(2) (as at June 30, 2019)
Grade Contained Metal
Tonnes Ag Au Ag Au
(Mt) (g/t) (g/t) (Moz) (koz)
5.2 - 5.5
P&P Reserves 43.7 26 0.84 36.7 1178
4.2 4.1
M&I Resources 3.5 24 0.44 2.7 49
Inferred
2017A 2018A 2019 Guidance (1) 4.0 47 1.22 6.0 156
Resources
(1) Guidance as at Aug. 7, 2019; Consolidated production guidance maintained on Nov. 6, 2019.
(2) See presentation Appendix for more detailed information on the Company's reserves and resources.
29 November 2019Huaron
Polymetallic Silver Mine
• 100% owned and operated by Pan American
• Underground mine located in Pasco, Peru
• Average throughput capacity of 2,500 tpd using
flotation technology to produce silver in copper, Peru
lead, and zinc concentrates
• Mechanization of mining methods has improved
efficiency and reduced operating costs
Huaron
• Upgrades to the flotation circuit have resulted in
improved mill recoveries
Silver Production (Moz) Reserves & Resources(2) (as at June 30, 2019)
Grade Contained Metal
Tonnes Ag Cu Pb Zn Ag Cu Pb Zn
(Mt) (g/t) (%) (%) (%) (Moz) (kt) (kt) (kt)
3.7 3.6 3.6 - 3.7 P&P Reserves 9.9 168 0.56 1.48 3.01 53.7 55 147 298
M&I Resources 4.6 156 0.60 1.57 2.92 23.0 27 72 134
Inferred
2017A 2018A 2019 Guidance (1) 6.2 155 0.41 1.45 2.77 30.8 25 90 171
Resources
(1) Guidance as at Aug. 7, 2019; Consolidated production guidance maintained on Nov. 6, 2019.
(2) See presentation Appendix for more detailed information on the Company's reserves and resources.
30 November 2019Morococha
Polymetallic Silver Mine
• 92.3% owned and operated by Pan American
• Underground mine located in Yauli, Peru
• Average throughput capacity of 2,000 tpd using
Peru
flotation technology to produce silver in zinc,
lead, and copper concentrates
• Mechanization of mining methods has improved
efficiency and reduced operating costs
• Current activities focus on opportunities to Morococha
enhance productivity and efficiencies while
designing for the eventual mill relocation
Silver Production (Moz) Reserves & Resources(2) (as at June 30, 2019)
Grade Contained Metal
Tonnes Ag Cu Pb Zn Ag Cu Pb Zn
(Mt) (g/t) (%) (%) (%) (Moz) (kt) (kt) (kt)
2.9 P&P Reserves 6.3 156 0.35 1.32 3.76 31.9 22 84 239
2.6 2.5 - 2.6
M&I Resources 0.6 141 0.24 0.84 2.11 2.8 1 5 13
Inferred
(1)
4.5 138 0.37 1.02 3.26 19.9 17 45 146
2017A 2018A 2019 Guidance Resources
(1) Guidance as at Aug. 7, 2019; Consolidated production guidance maintained on Nov. 6, 2019.
(2) See presentation Appendix for more detailed information on the Company's reserves and resources.
31 November 2019San Vicente
Polymetallic Silver Mine
• 95% owned and operated by Pan American
• Underground mine located in Bolivia
• Average throughput capacity of 950 tpd utilizing
a standard flotation process to produce silver-
zinc and silver-lead concentrates
• Mechanization efforts, enhanced mine dilution
controls and improvements in site infrastructure
underway to lower production costs San Vicente
Silver Production (Moz) Reserves & Resources(2) (as at June 30, 2019)
Grade Contained Metal
Tonnes Ag Cu Pb Zn Ag Cu Pb Zn
(Mt) (g/t) (%) (%) (%) (Moz) (kt) (kt) (kt)
P&P Reserves 1.9 395 0.40 0.37 2.96 24.6 8 7 57
3.6 3.5 3.5 - 3.7
M&I Resources 1.1 160 0.23 0.20 2.14 5.8 3 2 24
Inferred
3.0 289 0.24 0.38 3.32 27.9 7 11 100
2017A 2018A 2019 Guidance (1) Resources
(1) Guidance as at Aug. 7, 2019; Consolidated production guidance maintained on Nov. 6, 2019.
(2) See presentation Appendix for more detailed information on the Company's reserves and resources.
32 November 2019Manantial Espejo
High-grade ore from Joaquin and COSE
• 100% owned and operated by Pan American
• Underground mines located in Santa Cruz, Argentina
• Average throughput capacity of 2,150 tpd, treating ore
by gravity concentration, agitation leaching and Merril
Crowe processing to produce silver-gold doré
• Combined production from the Joaquin, COSE and
Manantial Espejo mines is expected to add 21 million
ounces of silver and 135 thousand ounces of gold over
the next 3 years Manantial Espejo
Silver Production (Moz) Proven & Probable Reserves(2) (as at June 30, 2019)
Grade Contained Metal
Tonnes Ag Au Ag Au
(Mt) (g/t) (g/t) (Moz) (koz)
Manantial
3.1 3.1
1.0 175 1.67 5.5 52
Espejo
2.4 - 2.5
Joaquin 0.5 721 0.41 11.0 6
COSE 0.1 918 17.70 2.2 43
2017A 2018A 2019 Guidance(1)
(1) Guidance as at Aug. 7, 2019; Consolidated production guidance maintained on Nov. 6, 2019.
(2) See presentation Appendix for more detailed information on the Company's reserves and resources.
33 November 2019Shahuindo
Large Gold Mine with Significant Growth Potential
• 100% owned and operated by Pan American
• Open pit gold mine located in northern Peru producing
silver by-products from doré
• Average throughput capacity of 36,000 tpd with heap
leach processing
• Commercial production began in 2016 with current
estimated mine life until 2028
• Significant exploration opportunity and ability to
Shahuindo
extend mine life
Gold Production (koz) Reserves & Resources(2) (as at June 30, 2019)
1
1 Grade Contained Metal
1 Tonnes Au Ag Au Ag
1
1 (Mt) (g/t) (g/t) (koz) (Moz)
137 - 165 1
0 P&P Reserves 112.6 0.49 6.2 1763 22.3
0
79 90 0 M&I Resources 12.1 0.48 6.0 187 2.3
30.7 0
0 Inferred
107.3 0.71 13.5 2464 46.7
2017A 2018E Tahoe guidance 2019 PAAS Guidance(1) Resources
(1) Guidance as at Aug. 7, 2019; Consolidated production guidance maintained on Nov. 6, 2019. Shaded region represents 30.7koz of gold production in 2019 prior to Pan American Silver acquiring ownership as of February 22, 2019.
(2) See presentation Appendix for more detailed information on the Company's reserves and resources.
34 November 2019La Arena
Gold Mine with Sulphide Expansion Potential (La Arena II)
• 100% owned and operated by Pan American
• Open pit gold mine located in northern Peru producing
doré
• Run-of-mine heap leach currently processing 36,000
tpd
• PEA released February 2018 on sulphide expansion La Arena
(“La Arena II”)
Gold Production (koz) Reserves & Resources(2) (as at June 30, 2019)
La Arena
1.2
Grade Contained Metal
Tonnes Au Au
1 (Mt) (g/t) (koz)
0.8 P&P Reserves 36.8 0.35 410
M&I Resources 3.0 0.39 38
196 0.6 Inferred Resources 1.1 0.30 11
117.5 - 122.5
162
0.4 La Arena II
Grade Contained Metal
0.2
32.8 Tonnes Au Cu Au Cu
0 (Mt) (g/t) (%) (koz) (kt)
2017A 2018E Tahoe guidance 2019 PAAS Guidance(1) M&I Resources 742.4 0.24 0.35 5637 2626
Inferred Resources 91.6 0.23 0.17 683 156
(1) Guidance as at Aug. 7, 2019; Consolidated production guidance maintained on Nov. 6, 2019. Shaded region represents 32.8koz of gold production in 2019 prior to Pan American
35 Silver acquiring ownership as of February 22, 2019.
(2) See presentation Appendix for more detailed information on the Company's reserves and resources.Timmins Mines
Two Producing Mines in Prolific Canadian Mining Camp
• 100% owned and operated by Pan American
• Located in Ontario, Canada and consists of two
underground gold mines, Timmins West and Bell
Creek, which both feed the Bell Creek mill
• Average throughput capacity of 4,400 tpd producing
doré
Bell Creek
• Shaft upgrade to 1,080 metres completed in 2019 Timmins West
and contributing to reduced costs
• Significant land position in the Timmins Camp with
potential for exploration upside
Gold Production (koz) Reserves & Resources(2) (as at June 30, 2019)
1200
Grade Contained Metal
1150
1100 Tonnes Au Au
1050 (Mt) (g/t) (koz)
155 - 160 1000
P&P Reserves 9.9 3.09 988
167 950
152
900
M&I Resources 7.1 3.52 800
850
37.3 800
Inferred Resources 3.7 3.74 444
750
(1)
2017A 2018E Tahoe guidance 2019 PAAS Guidance
(1) Guidance as at Aug. 7, 2019; Consolidated production guidance maintained on Nov. 6, 2019. Shaded region represents 37.3koz of gold production in 2019 prior to Pan American Silver acquiring ownership as of February 22, 2019.
(2) See presentation Appendix for more detailed information on the Company's reserves and resources.
36 November 2019Pan American Silver Proven and Probable Reserves1,2
Property Location Classification Tonnes Ag Contained Au Contained Cu (%) Contained Pb (%) Contained Zn (%) Contained
(Mt) (g/t) Ag (Moz) (g/t) Au (koz) Cu (kt) Pb (kt) Zn (kt)
Silver Segment
Huaron Peru Proven 6.2 168 33.5 - - 0.69 43.0 1.44 89.5 3.02 188.1
Probable 3.7 170 20.1 - - 0.33 12.3 1.55 57.1 3.00 110.2
Morococha (92.3%) (3) Peru Proven 4.1 147 19.5 - - 0.38 15.5 1.38 57.1 4.03 166.7
Probable 2.2 173 12.3 - - 0.31 6.9 1.20 26.5 3.26 72.2
La Colorada Mexico Proven 4.0 395 50.8 0.33 42.0 - - 1.72 68.9 3.11 124.4
Probable 5.4 287 49.6 0.26 44.4 - - 1.35 72.4 2.44 131.4
Dolores Mexico Proven 35.9 26 29.8 0.84 967.4 - - - - - -
Probable 7.8 28 6.9 0.84 210.7 - - - - - -
Manantial Espejo Argentina Proven 0.8 170 4.6 1.35 36.2 - - - - - -
Probable 0.1 204 0.9 3.64 16.0 - - - - - -
San Vicente (95%) (3) Bolivia Proven 1.4 414 18.6 - - 0.43 6.0 0.35 4.9 3.06 42.9
Probable 0.5 345 6.0 - - 0.32 1.7 0.42 2.3 2.71 14.5
Joaquin Argentina Probable 0.5 721 11.0 0.41 6.2 - - - - - -
COSE Argentina Probable 0.1 918 2.2 17.7 43.3 - - - - - -
Escobal Guatemala Proven 2.5 486 39.5 0.42 34.2 - - 1.02 25.7 1.75 44.4
Probable 22.1 316 225.0 0.34 243.8 - - 0.77 169.9 1.25 275.7
Total Silver
Segment(4) 97.5 169 530.4 0.64 1,644.1 0.47 85.4 1.10 574.1 2.24 1,170.6
Gold Segment
La Arena Peru Proven 27.4 - - 0.36 319.4 - - - - - -
Probable 9.5 - - 0.30 90.9 - - - - - -
Shahuindo Peru Proven 69.8 6 14.4 0.51 1,133.2 - - - - - -
Probable 42.8 6 7.8 0.46 629.9 - - - - - -
Timmins Canada Proven 2.7 - - 3.06 269.1 - - - - - -
Probable 7.2 - - 3.10 718.6 - - - - - -
La Bolsa Mexico Proven 9.5 10 3.1 0.67 202.9 - - - - - -
Probable 6.2 7 1.4 0.57 113.1 - - - - - -
Total Gold Segment(4)
175.0 6 26.8 0.62 3,476.9 - - - - - -
Total Gold and Silver Proven +
Segments (4) Probable 272.5 77 557.2 0.63 5,121.1 0.47 85.4 1.10 574.1 2.24 1,170.6
(1) See table below entitled “Metal price assumptions used to estimate mineral reserves and resources as at June 30, 2019”.
(2) Mineral reserve estimates were prepared under the supervision of, or were reviewed by, Christopher Emerson, FAusIMM, Vice President Business Development and Geology and Martin G.
Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, each of whom are Qualified Persons as that term is defined in National Instrument 43-101 (“NI 43-101).
(3) This information represents the portion of mineral reserves attributable to Pan American based on its ownership interest in the operating entity as indicated.
(4) Totals may not add up due to rounding. Total average grades of each element are with respect to those mines that produce the element.
37 Pan American Silver Mineral Reserve and Mineral Resource Information as at June 30, 2019Pan American Silver Measured and Indicated Resources1,2
Property Location Classification Tonnes (Mt) Ag (g/t) Contained Ag Au (g/t) Contained Au (koz) Cu (%) Pb (%) Zn (%)
(Moz)
Silver Segment
Huaron Peru Measured 2.2 157 11.0 - - 0.59 1.50 2.80
Indicated 2.4 155 12.0 - - 0.61 1.64 3.03
Morococha (92.3%) (3) Peru Measured 0.3 138 1.2 - - 0.29 0.86 2.14
Indicated 0.3 143 1.6 - - 0.20 0.83 2.09
La Colorada Mexico Measured 0.5 229 3.8 0.24 4.0 - 0.65 1.16
Indicated 1.6 185 9.6 0.15 7.8 - 0.56 1.16
Dolores Mexico Measured 2.0 21 1.3 0.35 22.0 - - -
Indicated 1.5 28 1.4 0.56 27.1 - - -
Manantial Espejo Argentina Measured 0.1 164 0.7 1.65 7.1 - - -
Indicated 0.2 241 1.4 2.86 16.5 - - -
San Vicente (95%) (3) Bolivia Measured 0.9 161 4.4 - - 0.22 0.20 2.27
Indicated 0.3 158 1.4 - - 0.27 0.21 1.73
Navidad Argentina Measured 15.4 137 67.8 - - 0.10 1.44 -
Indicated 139.8 126 564.5 - - 0.04 0.79 -
Joaquin Argentina Indicated 0.1 385 0.7 0.58 1.1 - - -
Escobal Guatemala Measured 2.3 251 18.6 0.23 16.7 - 0.31 0.59
Indicated 14.2 201 91.6 0.20 93.0 - 0.38 0.66
Total Silver Segment(4) 184.0 134 792.9 0.27 195.3 0.06 0.82 1.21
Gold Segment
La Bolsa Mexico Measured 1.4 11 0.5 0.90 39.9 - - -
Indicated 4.5 9 1.3 0.50 71.2 - - -
Pico Machay Peru Measured 4.7 - - 0.91 137.5 - - -
Indicated 5.9 - - 0.67 127.1 - - -
La Arena Peru Measured 1.3 - - 0.41 17.5 - - -
Indicated 1.7 - - 0.38 20.6 - - -
Shahuindo Peru Measured 3.7 7 0.8 0.53 63.2 - - -
Indicated 8.4 5 1.5 0.46 123.6 - - -
Timmins Canada Measured 1.7 - - 3.89 212.4 - - -
Indicated 5.4 - - 3.41 587.8 - - -
La Arena II Peru Measured 155.7 - - 0.25 1,265.2 0.37 - -
Indicated 586.7 - - 0.23 4,371.9 0.35 - -
Fenn-Gib Canada Indicated 40.8 - - 0.99 1,298.6 - - -
Whitney Canada Measured 1.0 - - 7.02 218.1 - - -
Indicated 2.3 - - 6.77 490.5 - - -
Gold River Canada Indicated 0.7 - - 5.29 117.4 - - -
Juby Canada Indicated 26.6 - - 1.28 1,094.7 - - -
Marlhill Canada Indicated 0.4 - - 4.52 57.4 - - -
Vogel Canada Indicated 2.2 - - 1.75 125.0 - - -
Total Gold Segment(4) 854.9 7 4.1 0.38 10,439.6 0.35 - -
Total Gold and Silver Segments (4) Measured + Indicated
1,038.8 122.8 797.0 0.38 10,634.9 0.30 0.82 1.21
(1) See table below entitled “Metal price assumptions used to estimate mineral reserves and resources as at June 30, 2019”.
(2) Mineral reserve estimates were prepared under the supervision of, or were reviewed by, Christopher Emerson, FAusIMM, Vice President Business Development and Geology and Martin G.
Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, each of whom are Qualified Persons as that term is defined in National Instrument 43-101 (“NI 43-101).
(3) This information represents the portion of mineral reserves attributable to Pan American based on its ownership interest in the operating entity as indicated.
(4) Totals may not add up due to rounding. Total average grades of each element are with respect to those mines that produce the element.
38 Pan American Silver Mineral Reserve and Mineral Resource Information as at June 30, 2019Pan American Silver Inferred Resources1,2
Property Location Classification Tonnes (Mt) Ag (g/t) Contained Ag Au (g/t) Contained Au Cu (%) Pb (%) Zn (%)
(Moz) (koz)
Silver Segment
Huaron Peru Inferred 6.2 155 30.8 - - 0.41 1.45 2.77
Morococha (92.3%) (3) Peru Inferred 4.5 138 19.9 - - 0.37 1.02 3.26
La Colorada Mexico Inferred 8.1 133 34.5 0.12 31.6 - 2.03 4.01
Dolores Mexico Inferred 4.0 47 6.0 1.22 156.3 - - -
Manantial Espejo Argentina Inferred 0.5 194 3.0 2.71 41.4 - - -
San Vicente (95%) (3) Bolivia Inferred 3.0 289 27.9 - - 0.24 0.38 3.32
Navidad Argentina Inferred 45.9 81 119.4 - - 0.02 0.57 -
Joaquin Argentina Inferred 0.01 389 0.1 1.29 0.2 - - -
COSE Argentina Inferred 0.03 382 0.3 7.10 6.3 - - -
Escobal Guatemala Inferred 1.9 180 10.7 0.90 53.7 - 0.22 0.42
Total Silver Segment(4) 74.0 106 252.5 0.62 289.5 0.10 0.83 3.17
Gold Segment
La Bolsa Mexico Inferred 13.7 8 3.3 0.51 224.6 - - -
Pico Machay Peru Inferred 23.9 - - 0.58 445.7 - - -
La Arena Peru Inferred 1.1 - - 0.30 10.7 - - -
Shahuindo Peru Inferred 10.0 5 1.6 0.44 140.6 - - -
Shahuindo Sulphide Peru Inferred 97.4 14 45.1 0.74 2,323.3 - - -
Timmins Canada Inferred 3.7 - - 3.74 443.8 - - -
La Arena II Canada Inferred 91.6 - 0.23 683.1 0.17 - -
Fenn-Gib Canada Inferred 24.5 - 0.95 750.0 - - -
Whitney Canada Inferred 1.0 - 5.34 170.7 - - -
Gold River Canada Inferred 5.3 - 6.06 1,027.4 - - -
Juby Canada Inferred 96.2 - 0.94 2,908.8 - - -
Vogel Canada Inferred 1.5 - 3.60 168.8 - - -
Total Gold Segment(4) 369.8 13 50.0 0.78 9,297.6 0.17 - -
Total Gold and Silver Inferred
Segments (4) 443.8 48 302.5 0.78 9,587.1 0.14 0.83 3.17
(1) See table below entitled “Metal price assumptions used to estimate mineral reserves and resources as at June 30, 2019”.
(2) Mineral reserve estimates were prepared under the supervision of, or were reviewed by, Christopher Emerson, FAusIMM, Vice President Business Development and Geology and Martin G.
Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, each of whom are Qualified Persons as that term is defined in National Instrument 43-101 (“NI 43-101).
(3) This information represents the portion of mineral reserves attributable to Pan American based on its ownership interest in the operating entity as indicated.
(4) Totals may not add up due to rounding. Total average grades of each element are with respect to those mines that produce the element.
39 Pan American Silver Mineral Reserve and Mineral Resource Information as at June 30, 2019Metal price assumptions used to estimate mineral reserves and resources as at June 30, 2019
Mine Category Ag US$/oz Au US$/oz Cu US$/t Pb US$/t Zn US$/t
Huaron All categories 17.00 1,300 6,000 2,100 2,500
Morococha All categories 17.00 1,300 6,000 2,100 2,500
La Colorada All categories 17.00 1,300 6,000 2,100 2,500
Reserves 17.00 1,300
Dolores
Resources 22.00 1,400
La Bolsa All categories 14.00 825
Manantial Espejo All categories 16.00 1,300
San Vicente All categories 17.00 1,300 6,000 2,100 2,500
Navidad All categories 12.52 1,100
Pico Machay All categories 700
Joaquin All categories 16.00 1,300
COSE All categories 16.00 1,300
Escobal All categories 20.00 1,300 2,204 2,424
Reserves 17.00 1,300
Shahuindo
Resources 22.00 1,400
Shahuindo
Inferred Resource 15.00 1,400
Sulphide
Reserves 17.00 1,400
La Arena
Resources 22.00 1,500
La Arena II All categories 1,500 8,816
Timmins - Bell
All categories 1,300
Creek
Timmins -
All categories 1,300
Timmins West
Inside pit 1,190
Fenn-Gib
Below pit 1,190
Whitney All categories 1,200
Gold river All categories 1,200
Juby(1) All categories
Marlhill All categories 1,125
Inside pit 1,150
Vogel
Below pit 1,150
(1) Estimation used a cut off grade of 0.40% g/t Au.
40 Pan American Silver Mineral Reserve and Mineral Resource Information as at June 30, 2019Economic & Social Development Programs 41 November 2019
Suite 1440, 625 Howe Street, Vancouver, BC, V6C 2T6
PanAmericanSilver.com
ir@panamericansilver.com
+1-604-684-1175
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