Pan American Silver 2Q Adjusted Profit Rises
(Kitco News) - Pan American Silver Corp. (Nasdaq, TSX: PAAS), the world’s second-largest primary silver producer, late Wednesday reported a rise in second-quarter adjusted net earnings as silver output was steady but costs fell.
The company reported adjusted earnings of $35.4 million, or 23 cents a share, that were up from $22.3 million, or 15 cents, in the same quarter of 2017.
Net earnings were $36.7 million, or 24 cents, compared to $36 million, or 23 cents, in the same period a year ago.
"Our operations continue to generate robust cash flow with mine operating earnings up 22% compared with the same quarter last year," said Michael Steinmann, president and chief executive officer. "We are realizing the benefits of increased throughput from the expansions of our La Colorada and Dolores mines, in addition to strong performance and low costs across all our other mines during the quarter."
Silver production during the quarter was roughly steady at around 6.29 million ounces, versus 6.3 million a year ago. Gold output rose to 53,370 ounces from 37,710. The company also produces zinc, lead and copper.
Pan American maintained its 2018 production guidance for all of these metals except copper, which has been revised to a range of 9,000 to 10,400 tonnes from 12,000 to 12,500 previously. Guidance for silver output is 25 million to 26.5 million ounces, while the gold forecast is 175,000 to 185,000.
The company reported record low cash costs, after by-product credits, of 92 cents per silver ounce sold. These costs fell due to higher throughput, higher by-product credits and lower treatment and refining charges, Pan American said. All-in sustaining costs per silver ounce sold were $6.45. The company lowered its guidance for cash costs to a range of $2.80 to $3.80 per ounce, and AISC per silver ounce sold to a range of $8.50 to $10.
The average realized silver price fell to $16.40 an ounce from $17.19 in the year-ago period, but the prices for gold, zinc, lead and copper were all higher.
The board of directors approved a cash dividend of $0.035 per share payable around Aug. 31 to holders of record as of the Aug. 20 close.