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Pan American Silver reports net income of $76.8 million in Q1, maintains its 2022 guidance

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(Kitco News) - Pan American Silver (TSX: PAAS) today reported its Q1 2022 silver production of 4.62 million ounces (Q1 2021: 4.58 million ounces) and gold production of 131.0 thousand ounces (Q1 2021: 137.6 thousand ounces).

The company also produced 10.2 thousand tonnes of zinc (Q1 2021: 13.1 thousand tonnes), 4.7 thousand tonnes of lead (Q1 2021: 5.0 thousand tonnes) and 1.8 thousand tonnes of copper (Q1 2021: 2.1 thousand tonnes).

The company revenue was $439.9 million (Q1 2021: $368.1 million), net earnings were $76.8 million (Q1 2021: net loss of $7.6 million) and adjusted earnings were $32.0 million (Q1 2021: $37.4 million).

Importantly, PAAS noted that its Silver Segment cash costs and all-in sustaining costs ("AISC") per silver ounce were $10.23 and $13.41, respectively, down compared to cash costs of $12.3 and AISC of $16.99 per silver ounce in Q1 2021.

The company said that management maintains its guidance for 2022 production, costs and capital expenditures. Production is expected to be weighted to the second half of 2022, reflecting the impact on production from reduced workforce deployment levels in Q1 2022 due to the Omicron variant and mine sequencing.

In addition, a cash dividend of $0.12 per common share has been declared, payable on or about June 3, 2022, to holders of record of Pan American's common shares as of the close on May 24, 2022.


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"Pan American reported strong financial performance in the quarter, enabling us to declare a dividend of $0.12 per common share for Q1, in line with the new dividend policy announced in February 2022," said Michael Steinmann, President and CEO.

He also noted that the company's operations experienced high levels of workforce absenteeism in January and early February due to the Omicron variant of COVID-19.

“Workforce deployment is now back to more normal levels, and we are maintaining our guidance for 2022 with production weighted to the second half of the year," he added.

Pan American owns and operates silver and gold mines located in Mexico, Peru, Canada, Argentina and Bolivia. The company also owns the Escobal mine in Guatemala that is currently not operating.

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