Pan American Silver Posts Record Silver Ouput For Fourth Straight Year

By Paul Ploumis (ScrapMonster Author)

January 20, 2016 03:10:18 AM

(Kitco News) - Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) Tuesday reported that preliminary data shows record annual silver production for the fourth straight year, although the company anticipates a decline in 2016.

Pan American reported output of 26.12 million ounces of silver last year, plus a record 183,700 ounces of gold.

For the fourth quarter, output was 6.79 million ounces of silver and 48,200 ounces of gold.

Pan American reported that the La Colorada and Dolores expansion projects are on track. Meanwhile, the company completed mining in the Alamo Dorado open pit during December, although processing of stockpiled ore will continue in 2016.

Preliminary cash costs were $9.70 per payable ounce of silver, after by-product credits, which was below the company's reduced 2015 guidance of $10 to $10.50 per ounce of silver and 15% lower than in 2014, Pan American reported.

Steve Busby, chief operating officer, reported that the company achieved silver-production records at four of its mines -- La Colorada , Dolores , Huaron and San Vicente. This offset the expected silver production declines at Alamo Dorado, Morococha and Manantial Espejo.

"At the same time, we were able to meaningfully reduce our operating cash costs on the back of strong by-product gold and copper production, helped to a lesser extent by weakening local currencies and lower oil prices." Busby continued.

For 2016, Pan American said it expects annual silver production to decline slightly to between 24 million and 25 million ounces, while gold production is expected to be between 175,000 and 185,000 ounces.

Consolidated cash costs for the full year 2016 are expected to be between $9.45 and $10.45 per ounce of silver, after by-product credits and based on certain assumptions for by-product metal prices and exchange rates. Consolidated all-in sustaining costs per silver ounce sold for 2016 are expected to be between $13.60 and $14.90 per ounce, down from Pan American's 2015 of forecast between $15 and $15.50 announced in November.

Pan American projected output of 22.5 million to 24 million silver ounces for 2017, followed by 25 million to 27 million for 2018.

Courtesy: Kitco News