Pan American Silver Reports Rise In 1Q Profit
(Kitco News) - Pan American Silver Corp. (Nasdaq, TSX: PAAS),the world’s second-largest primary silver producer, late Wednesday reported that its first-quarter profit rose on a combination of higher revenues and lower costs.
Net earnings were $48.2 million, or 31 cents per share, up sharply from $20 million, or 13 cents, in the first quarter of 2017. The January-March results included an $8 million gain on the sale of the Minera Aquiline Argentina SA, which owns the Calcatreu project in Argentina.
Excluding special items, adjusted earnings were $30.7 million, or 20 cents per share. This is up from $9 million, or 6 cents, in the year-ago period.
Pan American listed $207 million in revenue, up from $198.7 million a year ago. The average realized price of silver fell to $16.78 from $17.44, but the average gold price climbed to $1,333 from $1,219.
"Higher revenues and lower production and royalty costs resulted in $55.1 million of mine operating earnings in the first quarter of 2018, up 68% from the comparable 2017 period,” said Michael Steinmann, president and chief executive officer. He characterized the company’s operating performance as “strong,” noting that Dolores silver production was up 25% year-on-year.
Company-wide silver production was 6.1 million ounces, down slightly from 6.2 million in the year-ago quarter. However, gold production rose to 46,200 ounces from 37,700 ounces. January-March zinc, lead and copper production were 14,700 tonnes, 5,200 tonnes, and 3,000 tonnes, respectively.
All-in sustaining costs per silver ounce sold were $6.98, while cash costs per ounce, after by-product credits, were $1.18. Pan American said cash costs were the lowest in a decade, reflecting increased throughput, higher by-product credits, and lower treatment and refining charges.
The company maintained full-year guidance of 25 million to 26.5 million ounces of silver production at cash costs 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 directors approved a cash dividend of $0.035 per common share, payable around June 4 to shareholders of record as of the close on May 22.