Precious metals miner Pan American Silver on Thursday announced its 2023 production guidance – its first since buying Yamana Gold, which resulted in the addition of four producing mines and several exploration projects.
The NYSE- and TSX-listed company is forecasting silver production of 21-million to 23-million ounces and gold production of 870 000 oz to 970 000 oz.
In addition, Pan American is forecasting zinc output of 41 000 t to 45 000 t, lead output of 18 000 t to 21 000 t and copper production of about 5 000 t.
“The 2023 guidance is in line with our expectation for a material increase in silver and gold production together with lower consolidated operating costs, following the acquisition of Yamana, indicative of the accretive nature of the transaction,” said president and CEO Michael Steinmann.
Pan American also unveiled a capital expenditure forecast of $380-million to $405-million for the year, of which project capital is forecast to be $75-million to $85-million.
Steinmann reported that the integration of Yamana into Pan American was progressing well.
“After only one month of ownership of the acquired operations, we are on track to realise the $40-million to $60-million in annual synergies we had identified. Our teams are now focused on delivering the production and cost targets through the safe, efficient and environmentally sound operation of our mines."
The company remained in a strong financial position after completing the Yamana transaction. At March 31, Pan American had cash and short-term investments of $513.1-million, inclusive of $204.7-million related to the MARA project in Argentina, and $425-million available under its $750-million revolving Sustainability-Linked Credit Facility.