Pan American Silver Reports Rise In 1Q Profit
(Kitco News) - Pan American Silver Corp. (Nasdaq, TSX: PAAS),the world's second-largest primarysilver producer, late Wednesday reported that its first-quarter profit rose on acombination of higher revenues and lower costs.
Net earnings were $48.2 million, or 31 cents per share, up sharply from $20million, or 13 cents, in the first quarter of 2017. The January-March resultsincluded an $8 million gain on the sale of theMinera Aquiline Argentina SA, which owns the Calcatreu project in Argentina.
Excluding special items,adjusted earnings were $30.7 million, or 20 centsper share. This is up from $9 million, or 6 cents, in the year-ago period.
Pan American listed $207million in revenue, up from $198.7 million a year ago. The average realizedprice of silver fell to $16.78 from $17.44, but the average gold price climbedto $1,333 from $1,219.
"Higher revenues andlower production and royalty costs resulted in $55.1million of mine operating earnings in the first quarter of 2018, up68% from the comparable 2017 period,” said MichaelSteinmann, president and chief executive officer. He characterizedthe company’s operating performance as “strong,” noting that Dolores silverproduction was up 25% year-on-year.
Company-wide silverproduction was 6.1 million ounces, down slightly from 6.2 million in theyear-ago quarter. However, gold production rose to 46,200 ounces from 37,700ounces. January-March zinc, lead and copper production were 14,700 tonnes,5,200 tonnes, and 3,000 tonnes, respectively.
All-in sustaining costs persilver ounce sold were $6.98, while cash costs perounce, after by-product credits, were $1.18.Pan American said cash costs were the lowest in a decade, reflecting increasedthroughput, higher by-product credits, and lower treatment and refiningcharges.
The company maintained full-yearguidance of 25 million to 26.5 million ounces of silver production at cashcosts of $3.60 to $4.60 per ounce and AISCSOS of $9.30 to $10.80.Projected gold output is 175,000 to 185,000 ounces.
The board of directorsapproved a cash dividend of $0.035 per commonshare, payable around June 4 to shareholders ofrecord as of the close on May 22.
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