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Financial and Operational Highlights
Three months ended
March 31
2002 2001
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Consolidated Financial Highlights
(in thousands of US dollars)
Net income (loss) ($1,303) ($1,541)
Earnings (loss) per share (0.03) (0.04)
Contribution from mining operations 997 (353)
EBITDA (note 1) 392 (821)
Capital spending 1,314 5,133
Exploration expense 83 152
Cash 19,921 3,531
Working capital $14,298 ($2,380)
Note 1 - EBITDA is a non-GAAP performance measure, which is useful for
evaluating current performance because it excludes the affect of
past financing and investment decisions. It is calculated as net
income (loss), plus interest expense plus depreciation and
amortization.
Consolidated Ore Milled & Metals
Recovered to Concentrate
Tonnes milled 299,871 153,038
Silver metal - ounces 2,065,503 886,183
Zinc metal - tonnes 10,107 5,659
Lead metal - tonnes 5,441 2,225
Copper metal - tonnes 669 306
Zinc concentrate produced - tonnes 18,593 9,737
Lead concentrate produced - tonnes 6,819 3,717
Copper concentrate produced - tonnes 2,800 1,580
Zinc concentrate sold - tonnes 18,990 9,259
Lead concentrate sold - tonnes 4,790 -
Copper concentrate sold - tonnes 2,934 1,640
Net smelter return per tonne milled $41.33 $44.44
Cost per tonne 37.99 44.85
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Margin (loss) per tonne $ 3.34 $(0.41)
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Consolidated Cost per Ounce of Silver
(net of by-product credits)
Total cash cost per ounce $3.84 $3.66
Total production cost per ounce $4.63 $4.58
Average Metal Prices
Silver - LME Cash Settlement per ounce $4.49 $4.54
Zinc - LME Cash Settlement per pound $0.36 $0.46
Lead - LME Cash Settlement per pound $0.22 $0.22
Copper - LME Cash Settlement per pound $0.71 $0.80
Average Metal Prices Realized
Silver - per ounce (note 2) $4.15 $4.16
Zinc - per pound $0.36 $0.46
Lead - per pound (note 3) $0.22 -
Copper - per pound (note 2) $0.62 $0.71
Note 2 - Pan American pays a refining charge for silver and copper
Note 3 - there were no lead sales during the first quarter of 2001.
Mine Operations Highlights
Quiruvilca Mine
Three months ended
March 31
2002 2001
Tonnes milled 135,148 153,038
Average silver grade - grams per tonne 191.5 201.8
Average zinc grade - percent 4.04% 4.11%
Silver - ounces 728,619 886,183
Zinc - tonnes 4,888 5,659
Lead - tonnes 1,819 2,225
Copper - tonnes 288 306
Zinc concentrate produced - tonnes 8,404 9,737
Lead concentrate produced - tonnes 2,981 3,717
Copper concentrate produced - tonnes 1,273 1,580
Zinc concentrate sold - tonnes 6,997 9,259
Lead concentrate sold - tonnes (note 1) - -
Copper concentrate sold - tonnes 1,365 1,640
Note 1 -- Quiruvilca did not sell any lead concentrate in these periods
Net smelter return per tonne milled $36.93 $44.44
Cost per tonne 38.39 44.85
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Margin (loss) per tonne $(1.46) $(0.41)
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Total cash cost per ounce of silver produced $4.44 $3.66
Total production cost per ounce of
silver produced $5.79 $4.58
Huaron Mine
Three months ended
March 31
2002 2001
Tonnes milled 149,100 -
Average silver grade - grams per tonne 268.8 -
Average zinc grade - percent 4.12% -
Silver - ounces 1,146,309 -
Zinc - tonnes 5,121 -
Lead - tonnes 3,515 -
Copper - tonnes 381 -
Zinc concentrate produced - tonnes 9,997 -
Lead concentrate produced - tonnes 6,496 -
Copper concentrate produced - tonnes 1,527 -
Zinc concentrate sold - tonnes 11,803
Lead concentrate sold - tonnes 4,467
Copper concentrate sold - tonnes 1,569
Net smelter return per tonne milled $44.82 -
Cost per tonne 35.57 -
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Margin (loss) per tonne $ 9.25 -
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Total cash cost per ounce of silver produced $3.17 -
Total production cost per ounce of
silver produced $3.61 -
La Colorada Mine
Three months ended
March 31
2002 2001
Tonnes milled 15,623 -
Average silver grade - grams per tonne 434.0 -
Silver - ounces 190,575 -
Zinc - tonnes 98 -
Lead - tonnes 107 -
Zinc concentrate produced - tonnes 192 -
Lead concentrate produced - tonnes 323 -
Zinc concentrate sold - tonnes 190 -
Lead concentrate sold - tonnes 323 -
Net smelter return per tonne milled $46.09 -
Cost per tonne 57.59 -
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Margin (loss) per tonne $(11.50) -
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Total cash cost per ounce of silver produced $5.64 -
Total production cost per ounce of
silver produced $6.30 -
PAN AMERICAN SILVER CORP.
Consolidated Balance Sheets
(Unaudited - in thousands of U.S. dollars)
March 31 December 31
2002 2001
ASSETS
Current
Cash and cash equivalents $ 19,921 $ 3,331
Short-term investments 513 513
Accounts receivable 3,387 6,037
Inventories 6,282 4,655
Prepaid expenses 5,474 6,534
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Total Current Assets 35,577 21,070
Property, plant and equipment, net 65,940 66,659
Mineral properties 3,778 1,785
Other assets 2,003 2,003
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Total Assets $ 107,298 $ 91,517
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LIABILITIES
Current
Operating line of credit $ 1,500 $ 1,390
Accounts payable and accrued liabilities 11,931 12,283
Advances for concentrate shipments 4,196 4,071
Current portion of bank loans 2,209 2,209
Current portion of severance indemnity
and commitments 838 547
Current portion of deferred revenue 605 643
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Total Current Liabilities 21,279 21,143
Deferred revenue 1,850 1,850
Bank loans 4,752 5,010
Provision for reclamation 2,310 2,112
Severance indemnity and commitments 1,904 2,525
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Total Liabilities 32,095 32,640
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SHAREHOLDERS' EQUITY
Share capital
Authorized:
100,000,000 common shares of no par value
Issued:
December 31, 2001 - 37,628,234
common shares
March 31, 2002 - 41,510,445 common shares 148,361 130,723
Additional paid in capital 1,111 1,120
Deficit (74,269) (72,966)
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Total Shareholders' Equity 75,203 58,877
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Total Liabilities and Shareholders' Equity $ 107,298 $ 91,517
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See accompanying notes to consolidated financial statements
PAN AMERICAN SILVER CORP.
Consolidated Statements of Operations and Deficit
For the three months ended March 31, 2002 and 2001
(Unaudited - in thousands of U.S. dollars,
except for shares and per share amounts)
2002 2001
Revenue $ 10,199 $ 4,541
Expenses
Operating 9,202 4,894
General and administration 359 505
Depreciation and amortization 1,429 708
Reclamation 198 115
Exploration 83 152
Interest expense 266 11
Other expenses (income) (35) (303)
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11,502 6,082
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Net loss from operations for the period (1,303) (1,541)
Deficit, beginning of period (72,966) (64,889)
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Deficit, end of period $ (74,269) $ (66,430)
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Loss per share - Basic and Fully Diluted $ (0.03) $ (0.04)
Weighted average shares outstanding 38,603,987 34,381,234
See accompanying notes to consolidated financial statements
PAN AMERICAN SILVER CORP.
Consolidated Statements of Cash Flows - Direct Method
For the three months ended March 31, 2002 and 2001
(Unaudited - in thousands of U.S. dollars)
2002 2001
Operating activities
Sales proceeds $ 12,380 $ 8,353
Hedging activities 313 22
Interest paid (266) (11)
Other income and expenses 36 286
Products and services purchased (10,406) (5,189)
Exploration (77) (157)
General and administration (348) (451)
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1,632 2,853
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Financing activities
Proceeds from (repayments of) bank loans (258) (1,729)
Proceeds from (repayments of) operating
line of credit 110 -
Shares issued for cash 17,251 -
Share issue costs (792) -
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16,311 (1,729)
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Investing activities
Property, plant and equipment expenditures (710) (47)
Mineral property expenditures (604) (5,086)
Short-term investments (purchases) sales - (3)
Other (39) (1)
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(1,353) (5,137)
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Increase (decrease) in cash and cash
equivalents for the period 16,590 (4,013)
Cash and cash equivalents, beginning of period 3,331 7,544
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Cash and cash equivalents, end of period $ 19,921 $ 3,531
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Supplemental disclosure on non-cash
transaction
Shares issued for acquisition of
mineral property $ 1,250 $ -
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See accompanying notes to consolidated financial statements
PAN AMERICAN SILVER CORP.
Consolidated Statements of Cash Flows - Indirect Method
For the three months ended March 31, 2002 and 2001
(Unaudited - in thousands of U.S. dollars)
2002 2001
Operating activities
Net loss for the period $ (1,303) $ (1,541)
Items not involving cash
Depreciation and amortization 1,429 708
Reclamation 198 115
Operating cost provisions (260) 187
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64 (531)
Changes in non-cash operating working
capital items 1,568 3,384
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Cash provided (used in) by operations 1,632 2,853
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Financing activities
Proceeds from (repayments of) bank loans (258) (1,729)
Proceeds from (repayments of) operating
line of credit 110 -
Shares issued for cash 17,189 -
Share issue costs (730) -
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16,311 (1,729)
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Investing activities
Property, plant and equipment
(additions) disposals (710) 21
Mineral property expenditures (743) (3,645)
Changes in non-cash working capital items 139 (1,509)
Short-term investments (purchases) sales - (3)
Other (39) (1)
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(1,353) (5,137)
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Increase (decrease) in cash and cash
equivalents for the period 16,590 (4,013)
Cash and cash equivalents, beginning
of period 3,331 7,544
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Cash and cash equivalents, end of period $ 19,921 $ 3,531
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Supplemental disclosure on non-cash
transaction
Shares issued for acquisition of
mineral property $ 1,250 $ -
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See accompanying notes to consolidated financial statements
SOURCE Pan American Silver Corp.
CONTACT: Ross J. Beaty, Chairman or Rosie Moore, VP Corporate Relations,
604-684-1175
(PAA. PAAS) |
