Vancouver-based Pan American Silver has reported lower first-quarter financial results, with revenue falling from $439.9-million to $390.3-million in the quarter under review.
Adjusted earnings reduced to $21.2-million, or $0.10 a share, from $31-9-million, or $0.15 a share, the company, which recently completed the acquisition of Yamana Gold, reported on Wednesday.
Silver production dropped from 4.62-million ounces to 3.89-million ounces, while gold output reduced from 131-million ounces to 122.7-million ounces. The Manantial Espejo mine has been placed on care and maintenance following the completion of mining at the end of 2022, although some residual production was recorded for the first quarter.
"Pan American reported solid results for the first quarter of 2023, with adjusted earnings of $0.10 per share," said president and CEO Michael Steinmann.
"Going forward, Pan American will be a significantly larger, more diversified company following our acquisition of Yamana. Our guidance for 2023 demonstrates the positive impact of the four new mines on production and costs, and we are excited by the growth opportunities the combined portfolio presents."
The company last month issued its 2023 production guidance of 21-million to 23-million ounces of silver and 870 000 oz to 970 000 oz of gold. 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.
Pan American on Wednesday adjusted its 2023 capital expenditure (capex) guidance, from the previously provided range of $75-million to $85-million to a new range of $95-million to $105-million.
The revised capex reflects an updated estimate to complete the preliminary economic assessment studies and to advance exploration drilling for the La Colorada Skarn project.