Condensed Interim Consolidated Statements of Financial Position
(unaudited, in thousands of U.S. dollars)
|
March 31, | December 31, | |||
2021 | 2020 | |||
Assets | ||||
Current assets | ||||
Cash and cash equivalents (Note 21) | $ | 133,497 | $ | 167,113 |
Short-term investments (Note 5) | 72,913 | 111,946 | ||
Trade and other receivables | 123,915 | 127,756 | ||
Income taxes receivable | 23,689 | 22,051 | ||
Inventories (Note 6) | 458,582 | 406,191 | ||
Derivative financial instruments (Note 4a) | 9,031 | 7,812 | ||
Prepaid expenses and other current assets | 16,236 | 14,055 | ||
837,863 | 856,924 | |||
Non-current assets | ||||
Mineral properties, plant and equipment (Note 7) | 2,361,777 | 2,415,006 | ||
Inventories (Note 6) | 24,143 | 24,355 | ||
Long-term refundable tax | 4,706 | 4,009 | ||
Deferred tax assets | 57,116 | 57,850 | ||
Investment in associates (Note 9) | 72,822 | 71,560 | ||
Goodwill and other assets (Note 10) | 4,183 | 4,171 | ||
Total Assets | $ | 3,362,610 | $ | 3,433,875 |
Liabilities | ||||
Current liabilities | ||||
Accounts payable and accrued liabilities (Note 11) | $ | 278,128 | $ | 281,938 |
Derivative financial instruments (Note 4a) | 1,700 | 367 | ||
Current portion of provisions (Note 12) | 11,725 | 12,066 | ||
Current portion of lease obligations (Note 13) | 12,087 | 12,829 | ||
Income tax payable | 21,178 | 54,556 | ||
324,818 | 361,756 | |||
Non-current liabilities | ||||
Long-term portion of provisions (Note 12) | 209,663 | 229,887 | ||
Deferred tax liabilities | 185,971 | 175,311 | ||
Long-term portion of lease obligations (Note 13) | 18,753 | 20,736 | ||
Deferred revenue (Note 9) | 12,995 | 13,273 | ||
Other long-term liabilities (Note 15) | 27,120 | 27,073 | ||
Total Liabilities | 779,320 | 828,036 | ||
Equity | ||||
Capital and reserves (Note 16) | ||||
Issued capital | 3,132,186 | 3,132,140 | ||
Reserves | 93,407 | 93,409 | ||
Deficit | (645,859) | (623,030) | ||
Total Equity attributable to equity holders of the Company | 2,579,734 | 2,602,519 | ||
Non-controlling interests | 3,556 | 3,320 | ||
Total Equity | 2,583,290 | 2,605,839 | ||
Total Liabilities and Equity | $ | 3,362,610 | $ | 3,433,875 |
'signed' | Ross Beaty, Director | 'signed' | Michael Steinmann, Director |
PAN AMERICAN SILVER CORP. |
1
|
Condensed Interim Consolidated Statements of
Income and Comprehensive Income
(unaudited, in thousands of U.S. dollars)
|
Three months ended March 31, | ||||
2021 | 2020 | |||
Revenue (Note 22) | $ | 368,099 | $ | 358,428 |
Cost of sales (Note 22) | ||||
Production costs (Note 17) | (193,180) | (224,317) | ||
Depreciation and amortization | (75,093) | (78,149) | ||
Royalties | (9,862) | (5,904) | ||
(278,135) | (308,370) | |||
Mine operating earnings (Note 22) | 89,964 | 50,058 | ||
General and administrative | (8,052) | (6,588) | ||
Exploration and project development | (2,480) | (2,427) | ||
Mine care and maintenance (Note 18) | (7,266) | (16,024) | ||
Foreign exchange losses | (2,409) | (1,843) | ||
Gains (losses) on commodity and foreign currency contracts (Note 4c) | 2,377 | (8,823) | ||
Gains on sale of mineral properties, plant and equipment | 110 | 35 | ||
Share of income (loss) from associate and dilution loss (Note 9) | 198 | (2,929) | ||
Other income (expense) | 854 | (759) | ||
Earnings from operations | 73,296 | 10,700 | ||
Loss on derivatives (Note 4c) | (7) | - | ||
Investment loss (Note 4b) | (39,033) | (28,824) | ||
Interest and finance expense (Note 19) | (3,841) | (6,391) | ||
Earnings (loss) before income taxes | 30,415 | (24,515) | ||
Income tax expense (Note 23) | (37,977) | (52,720) | ||
Net loss and comprehensive loss | $ | (7,562) | $ | (77,235) |
Net loss attributable to: | ||||
Equity holders of the Company | $ | (7,798) | $ | (76,807) |
Non-controlling interests | 236 | (428) | ||
$ | (7,562) | $ | (77,235) | |
Comprehensive loss attributable to: | ||||
Equity holders of the Company | $ | (7,798) | $ | (76,807) |
Non-controlling interests | 236 | (428) | ||
$ | (7,562) | $ | (77,235) | |
Loss per share attributable to common shareholders (Note 20) | ||||
Basic loss per share | $ | (0.04) | $ | (0.37) |
Diluted loss per share | $ | (0.04) | $ | (0.37) |
Weighted average shares outstanding (in 000's) Basic | 210,261 | 209,779 | ||
Weighted average shares outstanding (in 000's) Diluted | 210,261 | 209,779 |
PAN AMERICAN SILVER CORP. |
2
|
Condensed Interim Consolidated Statements of Cash Flows
(unaudited, in thousands of U.S. dollars)
|
Three months ended March 31, | ||||
2021 | 2020 | |||
Operating activities | ||||
Net loss for the period | $ | (7,562) | $ | (77,235) |
Income tax expense (Note 23) | 37,977 | 52,720 | ||
Depreciation and amortization | 75,093 | 78,149 | ||
Losses on securities held | 39,033 | 28,824 | ||
Accretion on closure and decommissioning provision (Note 12,19) | 1,869 | 2,066 | ||
Unrealized losses on foreign exchange | 2,167 | 3,527 | ||
Interest expense (Note 19) | 1,043 | 3,545 | ||
Interest paid | (1,215) | (3,724) | ||
Interest received | 117 | 87 | ||
Income taxes paid | (61,333) | (36,499) | ||
Other operating activities (Note 21) | (9,941) | 24,440 | ||
Net change in non-cash working capital items (Note 21) | (47,398) | 38,151 | ||
$ | 29,850 | $ | 114,051 | |
Investing activities | ||||
Payments for mineral properties, plant and equipment | $ | (47,971) | $ | (55,750) |
Net proceeds from (purchase of) short-term investments and other securities | 255 | (2,394) | ||
Proceeds from sale of mineral properties, plant and equipment | 770 | 205 | ||
Net proceeds (payments) from commodity, diesel fuel swaps, and foreign currency contracts | 2,484 | (541) | ||
$ | (44,462) | $ | (58,480) | |
Financing activities | ||||
Proceeds from issue of equity shares | $ | 39 | $ | 2,931 |
Distributions to non-controlling interests | (313) | - | ||
Dividends paid | (14,718) | (10,500) | ||
Repayment of credit facility (Note 14) | - | (15,000) | ||
Payment of equipment leases | (2,982) | (4,064) | ||
$ | (17,974) | $ | (26,633) | |
Effects of exchange rate changes on cash and cash equivalents | (1,030) | (1,675) | ||
(Decrease) increase in cash and cash equivalents | (33,616) | 27,263 | ||
Cash and cash equivalents at the beginning of the period | 167,113 | 120,564 | ||
Cash and cash equivalents at the end of the period | $ | 133,497 | $ | 147,827 |
PAN AMERICAN SILVER CORP. |
3
|
Condensed Interim Consolidated Statements of Changes in Equity
(unaudited, in thousands of U.S. dollars, except for number of shares)
|
Attributable to equity holders of the Company | |||||||||||||
Issued shares |
Issued capital |
Reserves
| Deficit | Total |
Non- controlling interests |
Total equity | |||||||
Balance, December 31, 2019 | 209,835,558 | $ | 3,123,514 | $ | 94,274 | $ | (754,689) | $ | 2,463,099 | $ | 4,747 | $ | 2,467,846 |
Total comprehensive earnings | |||||||||||||
Net earnings for the year | - | - | - | 177,882 | 177,882 | (1,427) | 176,455 | ||||||
Shares issued on the exercise of stock options | 329,379 | 5,800 | (1,063) | - | 4,737 | - | 4,737 | ||||||
Shares issued as compensation | 93,730 | 2,826 | - | - | 2,826 | - | 2,826 | ||||||
Share-based compensation on option grants | - | - | 198 | - | 198 | - | 198 | ||||||
Dividends paid | - | - | - | (46,223) | (46,223) | - | (46,223) | ||||||
Balance, December 31, 2020 | 210,258,667 | $ | 3,132,140 | $ | 93,409 | $ | (623,030) | $ | 2,602,519 | $ | 3,320 | $ | 2,605,839 |
Total comprehensive loss | |||||||||||||
Net loss for the period | - | - | - | (7,798) | (7,798) | 236 | (7,562) | ||||||
Shares issued on the exercise of stock options | 2,868 | 46 | (7) | - | 39 | - | 39 | ||||||
Share-based compensation on option grants | - | - | 5 | - | 5 | - | 5 | ||||||
Distributions by subsidiaries to non-controlling interests | - | - | - | (313) | (313) | - | (313) | ||||||
Dividends paid | - | - | - | (14,718) | (14,718) | - | (14,718) | ||||||
Balance, March 31, 2021 | 210,261,535 | $ | 3,132,186 | $ | 93,407 | $ | (645,859) | $ | 2,579,734 | $ | 3,556 | $ | 2,583,290 |
Attributable to equity holders of the Company | |||||||||||||
Issued shares |
Issued capital | Reserves |
Deficit(1)
| Total |
Non- controlling interests |
Total equity | |||||||
Balance, December 31, 2019 | 209,835,558 | $ | 3,123,514 | $ | 94,274 | $ | (754,689) | $ | 2,463,099 | $ | 4,747 | $ | 2,467,846 |
Total comprehensive loss | |||||||||||||
Net loss for the period | - | - | - | (76,807) | (76,807) | (428) | (77,235) | ||||||
Shares issued on the exercise of stock options | 166,559 | 3,384 | (453) | - | 2,931 | - | 2,931 | ||||||
Share-based compensation on option grants | - | - | 53 | - | 53 | - | 53 | ||||||
Dividends paid | - | - | - | (10,500) | (10,500) | - | (10,500) | ||||||
Balance, March 31, 2020 | 210,002,117 | $ | 3,126,898 | $ | 93,874 | $ | (841,996) | $ | 2,378,776 | $ | 4,319 | $ | 2,383,095 |
PAN AMERICAN SILVER CORP. |
4
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
Subsidiary | Location |
Ownership Interest | Accounting |
Operations and Development Projects Owned | |
Lake Shore Gold Corp. | Canada | 100 | % | Consolidated | Bell Creek and Timmins West mines |
Plata Panamericana S.A. de C.V. | Mexico | 100 | % | Consolidated | La Colorada mine |
Compañía Minera Dolores S.A. de C.V. | Mexico | 100 | % | Consolidated | Dolores mine |
Pan American Silver Huaron S.A. | Peru | 100 | % | Consolidated | Huaron mine |
Compañía Minera Argentum S.A. | Peru | 92 | % | Consolidated | Morococha mine |
Shahuindo S.A.C. | Peru | 100 | % | Consolidated | Shahuindo mine |
La Arena S.A. | Peru | 100 | % | Consolidated | La Arena mine |
Pan American Silver (Bolivia) S.A. | Bolivia | 95 | % | Consolidated | San Vicente mine |
Pan American Silver Guatemala S.A. | Guatemala | 100 | % | Consolidated | Escobal mine |
Minera Tritón Argentina S.A. | Argentina | 100 | % | Consolidated | Manantial Espejo & Cap-Oeste Sur Este ('COSE') mines |
Minera Joaquin S.R.L. | Argentina | 100 | % | Consolidated | Joaquin mine |
Minera Argenta S.A. | Argentina | 100 | % | Consolidated | Navidad project |
PAN AMERICAN SILVER CORP. |
5
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. |
6
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
March 31, 2021 | Amortized cost | FVTPL | Total | |||
Financial Assets: | ||||||
Cash and cash equivalents | $ | 133,497 | $ | - | $ | 133,497 |
Trade receivables from provisional concentrates sales(1)
| - | 33,290 | 33,290 | |||
Receivables not arising from sale of metal concentrates(1)
| 82,151 | - | 82,151 | |||
Short-term investments, equity securities | - | 72,913 | 72,913 | |||
Derivative financial assets | - | 9,031 | 9,031 | |||
$ | 215,648 | $ | 115,234 | $ | 330,882 | |
Financial Liabilities: | ||||||
Derivative financial liabilities | $ | - | $ | 1,700 | $ | 1,700 |
December 31, 2020 | Amortized cost | FVTPL | Total | |||
Financial Assets: | ||||||
Cash and cash equivalents | $ | 167,113 | $ | - | $ | 167,113 |
Trade receivables from provisional concentrates sales(1)
| - | 35,084 | 35,084 | |||
Receivables not arising from sale of metal concentrates(1)
| 84,486 | - | 84,486 | |||
Short-term investments, equity securities | - | 111,946 | 111,946 | |||
Derivative financial assets | - | 7,812 | 7,812 | |||
$ | 251,599 | $ | 154,842 | $ | 406,441 | |
Financial Liabilities: | ||||||
Derivative financial liabilities | - | 367 | 367 |
Three months ended March 31, | ||||
2021 | 2020 | |||
Unrealized losses on short-term investments, equity securities | $ | (39,033) | $ | (28,824) |
Realized gains on short-term investments, equity securities | - | - | ||
$ | (39,033) | $ | (28,824) |
PAN AMERICAN SILVER CORP. |
7
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
Three months ended March 31, | ||||
2021 | 2020 | |||
Gains (losses) on foreign currency and commodity contracts: | ||||
Realized gains (losses) on foreign currency and commodity contracts | $ | 2,484 | $ | (541) |
Unrealized losses on foreign currency and commodity contracts | (107) | (8,282) | ||
$ | 2,377 | $ | (8,823) | |
Loss on derivatives: | ||||
Loss on warrants | $ | (7) | $ | - |
At March 31, 2021 | At December 31, 2020 | |||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||
Assets and Liabilities: | ||||||||
Short-term investments | $ | 72,913 | $ | - | $ | 111,946 | $ | - |
Trade receivables from provisional concentrate sales | - | 33,290 | - | 35,084 | ||||
Derivative financial assets | - | 9,031 | - | 7,812 | ||||
Derivative financial liabilities | - | (1,700) | - | (367) | ||||
$ | 72,913 | $ | 40,621 | $ | 111,946 | $ | 42,529 |
PAN AMERICAN SILVER CORP. |
8
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. |
9
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. |
10
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
PAN AMERICAN SILVER CORP. |
11
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
March 31, 2021 | December 31, 2020 | |||||||||||
Fair Value | Cost |
Accumulated unrealized holding gains | Fair Value | Cost |
Accumulated unrealized holding gains | |||||||
Short-term investments | $ | 72,913 | $ | 20,419 | $ | 52,494 | $ | 111,946 | $ | 20,419 | $ | 91,527 |
March 31, 2021 |
December 31, 2020 | |||
Concentrate inventory | $ | 36,924 | $ | 19,104 |
Stockpile ore | 41,376 | 30,063 | ||
Heap leach inventory and in process | 240,269 | 219,334 | ||
Doré and finished inventory | 78,153 | 77,489 | ||
Materials and supplies | 86,003 | 84,556 | ||
Total inventories | $ | 482,725 | $ | 430,546 |
Less: current portion of inventories | $ | (458,582) | $ | (406,191) |
Non-current portion of inventories(1)
| $ | 24,143 | $ | 24,355 |
PAN AMERICAN SILVER CORP. |
12
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
March 31, 2021 | December 31, 2020 | |||||||||||
Cost |
Accumulated Depreciation and Impairment |
Carrying Value | Cost |
Accumulated Depreciation and Impairment |
Carrying Value | |||||||
Huaron, Peru | $ | 212,752 | $ | (133,391) | $ | 79,361 | $ | 218,270 | $ | (135,932) | $ | 82,338 |
Morococha, Peru | 267,844 | (178,768) | 89,076 | 267,705 | (175,844) | 91,861 | ||||||
Shahuindo, Peru | 540,950 | (96,929) | 444,021 | 546,643 | (86,855) | 459,788 | ||||||
La Arena, Peru | 182,614 | (73,604) | 109,010 | 170,401 | (66,313) | 104,088 | ||||||
Alamo Dorado, Mexico | - | - | - | 71,725 | (71,725) | - | ||||||
La Colorada, Mexico | 330,635 | (169,689) | 160,946 | 308,378 | (164,443) | 143,935 | ||||||
Dolores, Mexico(1)
| 1,691,473 | (1,263,338) | 428,135 | 1,709,105 | (1,228,492) | 480,613 | ||||||
Manantial Espejo, Argentina (2)(4)
| 513,788 | (486,704) | 27,084 | 513,626 | (485,036) | 28,590 | ||||||
San Vicente, Bolivia | 146,536 | (103,865) | 42,671 | 144,790 | (101,408) | 43,382 | ||||||
Timmins, Canada | 314,140 | (85,837) | 228,303 | 307,243 | (75,902) | 231,341 | ||||||
Other | 29,198 | (18,597) | 10,601 | 28,653 | (18,313) | 10,340 | ||||||
Total | $ | 4,229,930 | $ | (2,610,722) | $ | 1,619,208 | $ | 4,286,539 | $ | (2,610,263) | $ | 1,676,276 |
Land and Non-Producing Properties: | ||||||||||||
Land | $ | 6,756 | $ | (1,254) | $ | 5,502 | $ | 6,758 | $ | (1,254) | $ | 5,504 |
Navidad, Argentina(3)
| 566,577 | (376,101) | 190,476 | 566,577 | (376,101) | 190,476 | ||||||
Escobal, Guatemala | 257,564 | (1,383) | 256,181 | 259,198 | (1,072) | 258,126 | ||||||
Timmins, Canada | 71,839 | - | 71,839 | 71,099 | - | 71,099 | ||||||
Shahuindo, Peru | 6,079 | - | 6,079 | 6,079 | - | 6,079 | ||||||
La Arena, Peru | 117,000 | - | 117,000 | 117,000 | - | 117,000 | ||||||
Minefinders, Mexico | 80,239 | (36,975) | 43,264 | 80,239 | (36,975) | 43,264 | ||||||
La Colorada, Mexico | 27,230 | - | 27,230 | 21,589 | - | 21,589 | ||||||
Morococha, Peru | 5,054 | - | 5,054 | 5,054 | - | 5,054 | ||||||
Other | 32,035 | (12,091) | 19,944 | 32,533 | (11,994) | 20,539 | ||||||
Total non-producing properties | $ | 1,170,373 | $ | (427,804) | $ | 742,569 | $ | 1,166,126 | $ | (427,396) | $ | 738,730 |
Total mineral properties, plant and equipment | $ | 5,400,303 | $ | (3,038,526) | $ | 2,361,777 | $ | 5,452,665 | $ | (3,037,659) | $ | 2,415,006 |
PAN AMERICAN SILVER CORP. |
13
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
2021 | ||
Maverix investment, December 31, 2020 | $ | 71,560 |
Dilution losses | (403) | |
Dividends | (254) | |
Income from associate | 616 | |
Maverix investment, March 31, 2021 | 71,519 | |
Other investment, March 31, 2021 | 1,303 | |
Total investment in associates, March 31, 2021 | $ | 72,822 |
March 31, 2021 |
December 31, 2020 | |||
Goodwill | $ | 2,775 | $ | 2,775 |
Other assets | 1,408 | 1,396 | ||
$ | 4,183 | $ | 4,171 |
PAN AMERICAN SILVER CORP. |
14
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
March 31, 2021 |
December 31, 2020 | |||
Trade accounts payable(1)
| $ | 77,414 | $ | 80,280 |
Royalties payable | 20,396 | 18,166 | ||
Other accounts payable and trade related accruals | 101,224 | 94,600 | ||
Payroll and related benefits | 45,119 | 53,780 | ||
Severance accruals | 2,413 | 2,935 | ||
Refundable tax payable | 11,367 | 11,208 | ||
Other taxes payable | 20,195 | 20,969 | ||
$ | 278,128 | $ | 281,938 |
Closure and Decommissioning | Litigation | Total | ||||
December 31, 2020 | $ | 235,110 | $ | 6,843 | $ | 241,953 |
Revisions in estimates and obligations incurred | (20,922) | - | (20,922) | |||
Charged (credited) to earnings: | ||||||
-new provisions | - | 556 | 556 | |||
-change in estimate | - | (938) | (938) | |||
-exchange gains on provisions | - | (170) | (170) | |||
-utilized in the period | - | (158) | (158) | |||
Reclamation expenditures | (802) | - | (802) | |||
Accretion expense (Note 19) | 1,869 | - | 1,869 | |||
March 31, 2021 | $ | 215,255 | $ | 6,133 | $ | 221,388 |
Maturity analysis of total provisions: |
March 31, 2021 |
December 31, 2020 | ||
Current | $ | 11,725 | $ | 12,066 |
Non-Current | 209,663 | 229,887 | ||
$ | 221,388 | $ | 241,953 |
PAN AMERICAN SILVER CORP. |
15
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
Three months ended March 31, | ||
2021 | ||
Opening net book value | $ | 33,543 |
Additions | 250 | |
Depreciation | (3,100) | |
Other | (459) | |
Closing net book value | $ | 30,234 |
March 31, 2021 |
December 31, 2020 | |||
Within one year | $ | 12,855 | $ | 13,505 |
Between one and five years | 15,721 | 17,902 | ||
Beyond five years | 18,649 | 19,255 | ||
Total undiscounted lease obligations | 47,225 | 50,662 | ||
Less future interest charges | (16,385) | (17,097) | ||
Total discounted lease obligations | 30,840 | 33,565 | ||
Less: current portion of lease obligations | (12,087) | (12,829) | ||
Non-current portion of lease obligations | $ | 18,753 | $ | 20,736 |
PAN AMERICAN SILVER CORP. |
16
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
March 31, 2021 |
December 31, 2020 | |||
Deferred credit(1)
| $ | 20,788 | $ | 20,788 |
Other income tax payable | 49 | 54 | ||
Severance accruals | 6,283 | 6,231 | ||
$ | 27,120 | $ | 27,073 |
Stock Options | |||
Options |
Weighted Average Exercise Price CAD$ | ||
As at December 31, 2019 | 1,143,348 | $ | 33.84 |
Granted | 7,605 | 39.48 | |
Exercised | (329,711) | 19.23 | |
Expired | (482,438) | 53.41 | |
Forfeited | (21,387) | 43.08 | |
As at December 31, 2020 | 317,417 | $ | 18.78 |
Exercised | (2,868) | 17.53 | |
Expired | (2,162) | 41.62 | |
Forfeited | (5,045) | 55.39 | |
As at March 31, 2021 | 307,342 | $ | 18.03 |
PAN AMERICAN SILVER CORP. |
17
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
Options Outstanding | Options Exercisable | ||||||
Range of Exercise Prices CAD$ | Number Outstanding as at March 31, 2021 |
Weighted Average Remaining Contractual Life (months) |
Weighted Average Exercise Price CAD$ | Number Outstanding as at March 31, 2021 |
Weighted Average Exercise Price CAD$ | ||
$9.76 - $17.11 | 101,059 | 18.71 | $ | 10.83 | 101,059 | $ | 10.83 |
$17.12 - $24.46 | 165,800 | 50.31 | $ | 18.72 | 165,800 | $ | 18.72 |
$24.47 - $31.81 | 22,788 | 68.21 | $ | 26.54 | 11,396 | $ | 26.54 |
$31.82 - $46.53 | 17,695 | 41.80 | $ | 41.70 | 10,090 | $ | 43.37 |
307,342 | 40.76 | $ | 18.03 | 288,345 | $ | 17.13 |
PSU | Number Outstanding | Fair Value | |
As at December 31, 2019 | 247,601 | $ | 5,896 |
Granted | 62,920 | 1,942 | |
Paid out | (54,962) | (2,626) | |
Change in value | - | 3,658 | |
As at December 31, 2020 | 255,559 | $ | 8,870 |
Change in value | - | (1,132) | |
As at March 31, 2021 | 255,559 | $ | 7,738 |
RSU | Number Outstanding | Fair Value | |
As at December 31, 2019 | 299,216 | $ | 7,107 |
Granted | 261,224 | 6,302 | |
Paid out | (148,049) | (4,762) | |
Forfeited | (15,819) | (545) | |
Change in value | - | 5,628 | |
As at December 31, 2020 | 396,572 | $ | 13,730 |
Forfeited | (3,803) | (114) | |
Change in value | - | (1,758) | |
As at March 31, 2021 | 392,769 | $ | 11,858 |
PAN AMERICAN SILVER CORP. |
18
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
Declaration Date | Record Date | Dividend per common share | |
May 12, 2021(1)
| May 25, 2021 | $ | 0.070 |
February 17, 2021 | March 1, 2021 | $ | 0.070 |
November 4, 2020 | November 16, 2020 | $ | 0.070 |
August 5, 2020 | August 17, 2020 | $ | 0.050 |
May 6, 2020 | May 19, 2020 | $ | 0.050 |
February 19, 2020 | March 2, 2020 | $ | 0.050 |
Three months ended March 31, | ||||
2021 | 2020 | |||
Consumption of raw materials and consumables | $ | 88,064 | $ | 85,707 |
Employee compensation and benefits expense | 81,861 | 74,865 | ||
Contractors and outside services | 46,843 | 28,786 | ||
Utilities | 11,810 | 11,739 | ||
Other expenses | 12,020 | 5,175 | ||
Changes in inventories | (47,418) | 18,045 | ||
$ | 193,180 | $ | 224,317 |
Three months ended March 31, | ||||
2021 | 2020 | |||
COVID-19 related mine care and maintenance expenses(1)
| $ | - | $ | 8,110 |
Mine care and maintenance expenses | 7,266 | 7,914 | ||
$ | 7,266 | $ | 16,024 |
PAN AMERICAN SILVER CORP. |
19
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
Three months ended March 31, | ||||
2021 | 2020 | |||
Interest expense | $ | 1,043 | $ | 3,545 |
Finance fees | 929 | 780 | ||
Accretion expense (Note 12) | 1,869 | 2,066 | ||
$ | 3,841 | $ | 6,391 |
For the three months ended March 31, | 2021 | 2020 | ||||||||
Earnings(1)
(Numerator)
|
Shares (000's) (Denominator) |
Per-Share Amount |
Earnings(1)
(Numerator)
|
Shares (000's) (Denominator) |
Per-Share Amount | |||||
Net loss for the period | $ | (7,798) | $ | (76,807) | ||||||
Basic loss per share | $ | (7,798) | 210,261 | $ | (0.04) | $ | (76,807) | 209,779 | $ | (0.37) |
Effect of Dilutive Securities: | ||||||||||
Stock Options | - | - | - | - | ||||||
Diluted loss per share | $ | (7,798) | 210,261 | $ | (0.04) | $ | (76,807) | 209,779 | $ | (0.37) |
Three months ended March 31, | ||||
Other operating activities | 2021 | 2020 | ||
Adjustments for non-cash income statement items: | ||||
Net realizable value adjustment for inventories | $ | (8,143) | $ | 11,720 |
(Gains) losses on commodity and foreign currency contracts (Note 4c) | (2,377) | 8,823 | ||
Share-based compensation expense | 880 | 1,003 | ||
Share of (income) loss from associate and dilution gain (Note 9) | (198) | 2,929 | ||
Gain on sale of mineral properties, plant and equipment | (110) | (35) | ||
Loss on derivatives (Note 4c) | 7 | - | ||
$ | (9,941) | $ | 24,440 |
PAN AMERICAN SILVER CORP. |
20
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
Three months ended March 31, | ||||
Changes in non-cash operating working capital items: | 2021 | 2020 | ||
Trade and other receivables | $ | 1,223 | $ | 39,608 |
Inventories | (39,934) | 8,990 | ||
Prepaid expenses | (2,180) | (2,055) | ||
Accounts payable and accrued liabilities | (6,415) | (7,562) | ||
Provisions | (92) | (830) | ||
$ | (47,398) | $ | 38,151 |
Cash and Cash Equivalents |
March 31, 2021 |
December 31, 2020 | ||
Cash in banks | $ | 133,497 | $ | 167,113 |
For the three months ended March 31, 2021 | |||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings | Mine care and maintenance |
Capital expenditures(1)
| ||||||
Silver Segment: | |||||||||||||
Mexico | La Colorada | $ | 5,330 | $ | 4,204 | $ | 2,364 | $ | (1,238) | $ | - | $ | 9,468 |
Peru | Huaron | 38,502 | 21,706 | 2,875 | 13,921 | - | 1,612 | ||||||
Morococha | 24,357 | 18,164 | 3,550 | 2,643 | - | 2,391 | |||||||
Bolivia | San Vicente | 24,651 | 15,909 | 2,936 | 5,806 | - | 558 | ||||||
Argentina | Manantial Espejo | 29,102 | 26,396 | 3,963 | (1,257) | - | 1,378 | ||||||
Guatemala | Escobal | - | - | - | - | 5,862 | 32 | ||||||
Total Silver Segment | 121,942 | 86,379 | 15,688 | 19,875 | 5,862 | 15,439 | |||||||
Gold Segment: | |||||||||||||
Mexico |
Dolores(2)
| 72,493 | 28,840 | 28,581 | 15,072 | - | 8,918 | ||||||
Peru | Shahuindo | 58,337 | 25,772 | 9,158 | 23,407 | - | 2,822 | ||||||
La Arena | 55,953 | 19,063 | 11,251 | 25,639 | - | 14,719 | |||||||
Canada | Timmins | 59,374 | 42,988 | 10,040 | 6,346 | - | 8,866 | ||||||
Total Gold Segment | 246,157 | 116,663 | 59,030 | 70,464 | - | 35,325 | |||||||
Other segment: | |||||||||||||
Canada | Pas Corp | - | - | 119 | (119) | - | 81 | ||||||
Argentina | Navidad | - | - | - | 1,404 | 61 | |||||||
Other | Other | - | - | 256 | (256) | - | 47 | ||||||
Total | $ | 368,099 | $ | 203,042 | $ | 75,093 | $ | 89,964 | $ | 7,266 | $ | 50,953 |
PAN AMERICAN SILVER CORP. |
21
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
For the three months ended March 31, 2020 | |||||||||||||
Segment/Country | Operation | Revenue | Production costs and royalties | Depreciation | Mine operating earnings | Mine care and maintenance |
Capital expenditures(1)
| ||||||
Silver Segment: | |||||||||||||
Mexico | La Colorada | $ | 34,824 | $ | 21,432 | $ | 5,917 | $ | 7,475 | $ | - | $ | 8,395 |
Peru | Huaron | 17,822 | 15,219 | 3,035 | (432) | 2,254 | 1,413 | ||||||
Morococha | 14,576 | 15,241 | 3,481 | (4,146) | 2,203 | 2,624 | |||||||
Bolivia | San Vicente | 13,320 | 11,280 | 2,432 | (392) | - | 1,925 | ||||||
Argentina | Manantial Espejo | 21,425 | 19,257 | 1,796 | 372 | 1,973 | 4,261 | ||||||
Guatemala | Escobal | - | - | - | - | 6,414 | 11 | ||||||
Total Silver Segment | 101,967 | 82,429 | 16,661 | 2,877 | 12,844 | 18,629 | |||||||
Gold Segment: | |||||||||||||
Mexico |
Dolores(2)
| 61,396 | 52,659 | 25,971 | (17,234) | - | 15,124 | ||||||
Shahuindo | 83,587 | 34,246 | 13,850 | 35,491 | 857 | 7,932 | |||||||
La Arena | 41,350 | 19,732 | 7,465 | 14,153 | 823 | 12,698 | |||||||
Canada | Timmins | 70,128 | 41,155 | 13,808 | 15,165 | - | 4,507 | ||||||
Total Gold Segment | 256,461 | 147,792 | 61,094 | 47,575 | 1,680 | 40,261 | |||||||
Other segment: | |||||||||||||
Canada | Pas Corp | - | - | 128 | (128) | - | 248 | ||||||
Argentina | Navidad | - | - | - | - | 1,500 | 8 | ||||||
Other | Other | - | - | 266 | (266) | - | 668 | ||||||
Total | $ | 358,428 | $ | 230,221 | $ | 78,149 | $ | 50,058 | $ | 16,024 | $ | 59,814 |
At March 31, 2021 | |||||||
Segment/Country | Operation | Assets | Liabilities | Net assets | |||
Silver Segment: | |||||||
Mexico | La Colorada | $ | 248,883 | $ | 43,047 | $ | 205,836 |
Peru | Huaron | 115,910 | 45,766 | 70,144 | |||
Morococha | 120,255 | 36,093 | 84,162 | ||||
Bolivia | San Vicente | 81,371 | 41,044 | 40,327 | |||
Argentina | Manantial Espejo | 71,582 | 27,703 | 43,879 | |||
Guatemala | Escobal | 287,434 | 21,681 | 265,753 | |||
Total Silver Segment | 925,435 | 215,334 | 710,101 | ||||
Gold Segment: | |||||||
Mexico |
Dolores(1)
| 753,807 | 166,368 | 587,439 | |||
Peru | Shahuindo | 539,856 | 165,280 | 374,576 | |||
La Arena | 284,823 | 108,240 | 176,583 | ||||
Canada | Timmins | 408,109 | 59,377 | 348,732 | |||
Total Gold Segment | 1,986,595 | 499,265 | 1,487,330 | ||||
Other segment: | |||||||
Canada | Pas Corp | 187,201 | 17,508 | 169,693 | |||
Argentina | Navidad | 193,047 | 193,047 | ||||
Other | 70,332 | 47,213 | 23,119 | ||||
Total | $ | 3,362,610 | $ | 779,320 | $ | 2,583,290 |
PAN AMERICAN SILVER CORP. |
22
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
At December 31, 2020 | |||||||
Segment/Country | Operation | Assets | Liabilities | Net assets | |||
Silver Segment: | |||||||
Mexico | La Colorada | $ | 231,217 | $ | 48,971 | $ | 182,246 |
Peru | Huaron | 113,177 | 40,663 | 72,514 | |||
Morococha | 121,004 | 34,906 | 86,098 | ||||
Bolivia | San Vicente | 83,668 | 40,536 | 43,132 | |||
Argentina | Manantial Espejo | 75,113 | 26,950 | 48,163 | |||
Guatemala | Escobal | 288,588 | 24,427 | 264,161 | |||
Total Silver Segment | 912,767 | 216,453 | 696,314 | ||||
Gold Segment: | |||||||
Mexico |
Dolores(1)
| 752,873 | 169,444 | 583,429 | |||
Peru | Shahuindo | 566,734 | 201,427 | 365,307 | |||
La Arena | 299,372 | 112,475 | 186,897 | ||||
Canada | Timmins | 414,396 | 60,482 | 353,914 | |||
Total Gold Segment | 2,033,375 | 543,828 | 1,489,547 | ||||
Other segment: | |||||||
Canada | Pas Corp | 230,872 | 18,795 | 212,077 | |||
Argentina | Navidad | 192,999 | - | 192,999 | |||
Other | 63,862 | 48,960 | 14,902 | ||||
Total | $ | 3,433,875 | $ | 828,036 | $ | 2,605,839 |
Three months ended March 31, | ||||
Product Revenue | 2021 | 2020 | ||
Refined silver and gold | $ | 278,925 | $ | 281,686 |
Zinc concentrate | 25,285 | 18,962 | ||
Lead concentrate | 17,857 | 34,549 | ||
Copper concentrate | 29,834 | 10,205 | ||
Silver concentrate | 16,198 | 13,026 | ||
Total | $ | 368,099 | $ | 358,428 |
Three months ended March 31, | ||||
2021 | 2020 | |||
Current income tax expense | $ | 26,576 | $ | 19,323 |
Deferred income tax expense | 11,401 | 33,397 | ||
Income tax expense | $ | 37,977 | $ | 52,720 |
PAN AMERICAN SILVER CORP. |
23
|
Notes to the Condensed Interim Consolidated Financial Statements
| |
As at March 31, 2021 and December 31, 2020, and for the three months ended March 31, 2021 and 2020 (unaudited with tabular amounts in thousands of U.S. dollars except number of shares, options, warrants, and per share amounts, unless otherwise noted) |
Three months ended March 31, | ||||
2021 | 2020 | |||
Earnings (loss) before taxes and non-controlling interests | $ | 30,415 | $ | (24,515) |
Statutory Canadian income tax rate | 27.00 | % | 27.00 | % |
Income tax expense (recovery) based on above rates | $ | 8,212 | $ | (6,619) |
Increase (decrease) due to: | ||||
Non-deductible expenditures | 1,367 | 2,096 | ||
Foreign tax rate differences | 3,915 | 6,911 | ||
Change in net deferred tax assets not recognized: | ||||
- Argentina exploration expenditures | 474 | 735 | ||
- Other deferred tax assets | 14,116 | 24,172 | ||
Effect of other taxes paid (mining and withholding) | 8,374 | 4,562 | ||
Effect of foreign exchange on tax expense | 7,662 | 40,971 | ||
Non-taxable impact of foreign exchange | (2,546) | (17,632) | ||
Change in non-deductible portion of reclamation liabilities | (3,243) | 819 | ||
Change in opening temporary differences | 514 | (1,327) | ||
Other | (868) | (1,968) | ||
Income tax expense | $ | 37,977 | $ | 52,720 |
PAN AMERICAN SILVER CORP. |
24
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Disclaimer
Pan American Silver Corporation published this content on 12 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2021 18:54:09 UTC.