Precious metals miner Pan American Silver is entering 2020 as a “much larger, stronger and more profitable” company, following its 2019 acquisition of Tahoe Resources, standing it in good stead to capture the benefits of the current strong metal prices.

During 2019, which CEO Michael Steinmann said on Wednesday was the most important year in the company's quarter-century history, Pan American completed the $1.07-billiion Tahoe transaction, integrated the new assets into its portfolio and captured $25-million to $30-million a year in synergies.

Robust cash flow generation also allowed the silver major to repay a further $40-million to its line of credit in the fourth quarter.

During 2019, Pan American produced 25.89-million ounces of silver, which was in line with the revised range of 25.3-million to 26.3-million ounces provided in August, and 559 200 oz of gold, which was also in line with the revised guidance range of 550 000 oz to 600 000 oz.

Zinc, lead and copper production was 67 600 t, 27 300 t and 8 700 t, respectively.

The company on Wednesday highlighted some of its production highlights, including the above-average mining and processing rate of 2 100 t/d achieved at the La Colorada mine, in Mexico. This compares with a targeted rate of 2 000 t/d, resulting in record yearly silver, zinc and lead production. Pan American continues to achieve greater than expected efficiencies from the mine expansion completed in 2017, which had a design throughput rate of 1 800 t/d.

Pan American also last year released an initial inferred mineral resource estimate for the La Colorada skarn deposit of 72.5-million tonnes, averaging 44 g/t silver, 0.17% copper, 2.02% lead and 4.40% zinc, assuming a cut-off value of $60/t after accounting for transportation, smelting and refining costs.

Besides the record yearly mining and processing rates at La Colorada, the miner also achieved the same at Peru’s Huaron and Morococha mines, as well as record yearly openpit mining rates at Dolores, in Mexico, record yearly zinc and lead plant recovery rates at Morococha, driving record annual zinc production at that mine; and, yearly mining and processing rates at Bolivia’s San Vicente, which largely offset an increase in operating costs per tonne due to the mining of narrower ore bodies than in previous years.

“In 2020, Pan American is well positioned for strong, low cost production. Combined with current metal prices, that should result in a rewarding year for our shareholders,” said Steinmann.

The miner’s forecast for 2020 is to produce 27-million to 28.5-million ounces of silver and 625 000 oz to 675 000 oz of gold at an all-in sustaining cost of $4.50 to $6.50 per ounce of silver.