Pan American Silver Lists 1Q Profit, Updates Guidance After Merger
(Kitco News) - Pan American Silver Corp. (TSX: PAAS), the world’s second-largest primary silver producer, late Wednesday reported a profit and updated 2019 production guidance to include mines that were acquired during the first quarter.
Pan American Silver completed the acquisition of all shares of Tahoe Resources Inc. on Feb. 22.
The company listed first-quarter adjusted income of $8.7 million, or a nickel per share, down from $30.7 million, or 20 cents, in the same quarter of 2018. Analysts said this topped consensus estimates that were around 2 cents a share.
Net income was $33.8 million, or 19 cents per share, down from $46.2 million, or 31 cents.
Officials said silver production of 6.1 million ounces was in line management's annual guidance. Gold output of around 80,500 ounces reflects a 38-day contribution during the quarter from the mines that were acquired.
The company also produces zinc, lead and copper. Base-metal production was said to be on track to achieve annual 2019 production guidance.
Prices for all of the precious and base metals that Pan American mines were down from the same quarter a year ago. The average realized silver price fell to $15.52 from $16.78, while the gold price fell to $1,300 from $1,333.
"After closing the Tahoe transaction in February, Pan American is now a larger, more diversified company with enhanced growth prospects,” said Michael Steinmann, president and chief executive officer. “As we integrate these new assets into our portfolio, we are focused on capturing synergies and maintaining low-cost, efficient operations across the company."
The company updated its 2019 guidance to factor in output from new mines from Feb. 22 until year-end. Pan American looks for silver output of 26.6 million to 27.6 million ounces and gold output of 570,000 to 620,000 ounces.
The board of directors approved a cash dividend of $0.035 per common share payable around June 3 to shareholders of record as of the close on May 21.