Pan American Silver Corp. Announces Unaudited Consolidated Earnings and Production Results for the Fourth Quarter and Full Year Ended December 31, 2014; Maintains Production and Capex Guidance for the Full Year of 2015; Records Impairment Charges for the Fourth Quarter of 2014
Feb 19 15
Pan American Silver Corp. announced unaudited consolidated earnings and production results for the fourth quarter and full year ended December 31, 2014. For the quarter, the company reported revenues of $163,096,000 compared with $192,360,000 for the same period a year ago. Loss from continuing operations was $630,084,000 compared with $310,152,000 for the same period a year ago. Loss before income taxes was $631,045,000 compared with $312,397,000 for the same period a year ago. Net loss for the period attributable to equity holders of the company was $526,706,000 or $3.48 per diluted share compared with $293,615,000 or $1.94 per diluted share for the same period a year ago. Net cash generated from operating activities was $823,000 compared with $46,156,000 for the same period a year ago. Payments for mineral property, plant and equipment was $30,131,000 compared with $33,669,000 for the same period a year ago.
For the full year, the company reported revenues of $751,942,000 compared with $824,504,000 for the same period a year ago. Loss from continuing operations was $632,766,000 compared with $438,613,000 for the same period a year ago. Loss before income taxes was $637,317,000 compared with $429,089,000 for the same period a year ago. Net loss for the period attributable to equity holders of the company was $545,588,000 or $3.60 per diluted share compared with $445,851,000 or $2.96 per diluted share for the same period a year ago. Net cash generated from operating activities was $124,188,000 compared with $119,606,000 for the same period a year ago. Payments for mineral property, plant and equipment was $131,761,000 compared with $159,401,000 for the same period a year ago.
During the fourth quarter of 2014, the company's mines performed within management's expectations and produced 6.75 million ounces of silver and 43,900 ounces of gold. The company produced 10,200 tonnes of zinc, 3,900 tonnes of lead and a record 3,000 tonnes of copper on account of quarterly record zinc and lead production at La Colorada and quarterly record copper production at both Huaron and Morococha.
Consolidated silver production for the full year 2014 was a record 26.11 million ounces, slightly higher than 2013 silver production and well within management's expectations. The new record was achieved due to production gains at La Colorada, Manantial Espejo, Dolores and Huaron and despite the expected decline of silver production at Alamo Dorado.
For the quarter, the company recorded an impairment charge of $596,262,000 compared with $336,785,000 for the same period a year ago.
As announced on January 19, 2015, the company expects to maintain current production levels of between 25.50 and 26.50 million ounces of silver at cash costs of between $10.80 and $11.80 per ounce of silver, net of by-product credits. In addition, higher gold grades at Dolores are expected to contribute to an increase in consolidated gold production to between 165,000 and 175,000 ounces, (between 2% and 8% higher than in 2014). The company's consolidated 2015 base metals production is expected to total 41,000 to 43,000 tonnes of zinc, 14,500 to 15,000 tonnes of lead and 8,000 to 8,500 tonnes of copper. Pan American also expects to spend between $71 to $84 million on sustaining capital in 2015, while investing $98 to $109 million in long term projects, primarily for the expansion project at La Colorada. Perhaps most importantly, consolidated AISCSOS are expected to decline from $17.88 in 2014 to between $15.50 and $16.50, net of by-product credits in 2015, mainly on lower sustaining capital expenditures and due to the above-mentioned decline in silver cash costs. The Company's AISCSOS guidance for 2015 is based on assumptions of exploration expenses increasing to $16.50 million, while G&A costs and reclamation cost accretion are expected to remain steady at $17.50 million and $3.00 million, respectively. For the purposes of providing AISCSOS guidance for 2015, the company have assumed that payable silver sold in 2015 will be between 24.10 million and 25.10 million ounces.
Pan American Silver Corp. Announces Changes to its Senior Management Team
Feb 19 15
Pan American Silver Corp. announced that it has promoted Mr. Michael Steinmann to President of the company effective February 18, 2015. Mr. Steinmann will assume the role of President and will report to Pan American's Chief Executive Officer, Mr. Geoff Burns. Prior to this promotion, Mr. Steinmann was the Company's Executive Vice President, Corporate Development & Geology and was responsible for the Company's business development activities, production geology, resource and reserve estimations, as well as for exploration programs of Pan American. The company also announced that Mr. Keenan Hohol will assume the role of General Counsel effective April 1, 2015. Mr. Hohol joined the Company in November 2014 as Deputy General Counsel. Most recently, Mr. Hohol held the position of VP Legal & General Counsel at Silver Standard Resources, and prior to that, General Counsel & Corporate Secretary at Walter Energy, Global Head of Legal at Western Coal Corp, and General Counsel Minerals Exploration with BHP Billiton. Mr. Hohol will be replacing Mr. Robert Pirooz who will be stepping down as the company's General Counsel effective March 31, 2015, to pursue other interests, after having diligently served in this role for the past 12 years. Mr. Pirooz will remain a member of Pan American's Board of Directors.