VANCOUVER, BC, Feb. 24, 2022 /CNW/ - Pan American Silver
Corp. (NASDAQ: PAAS) (TSX: PAAS) ("Pan American" or the
"Company") today announced that the Board of Directors of Pan
American has approved a 20% increase in the cash dividend to
$0.12 per common share based on our
new dividend policy. The policy adds a variable amount to a base
dividend of $0.10 per common share
paid on a quarterly basis. The variable quarterly dividend will be
linked to the net cash on the balance sheet for the previous
quarter, as illustrated in the following table:
Net
Cash(1)
|
Base
Dividend
per
Quarter
|
Variable
Dividend
per
Quarter
|
Total
Dividend
per
Quarter
|
Less than $100
million
|
$0.10 per
share
|
$0.00 per
share
|
$0.10 per
share
|
$100 million to less
than $200 million
|
$0.10 per
share
|
$0.01 per
share
|
$0.11 per
share
|
$200 million to less
than $300 million
|
$0.10 per
share
|
$0.02 per
share
|
$0.12 per
share
|
$300 million to less
than $400 million
|
$0.10 per
share
|
$0.06 per
share
|
$0.16 per
share
|
$400 million or
greater
|
$0.10 per
share
|
$0.08 per
share
|
$0.18 per
share
|
(1) Net cash is
calculated as cash and cash equivalents plus short-term
investments, other than equity securities, less total debt. Net
cash and total debt are non-GAAP measures and do not have
standardized meaning prescribed by IFRS and are therefore unlikely
to be comparable to similar measures presented by other companies;
please refer to the "Alternative Performance (non-GAAP) Measures"
section of our management's discussion and analysis for the twelve
months ended December 31, 2021, for a discussion of various
non-GAAP measures.
|
"Pan American's new dividend policy is aligned with our capital
allocation priorities. It protects our balance sheet strength while
allowing shareholders to participate in an improving financial
position and for the Company to invest in its growth projects. We
exited 2021 with cash and cash equivalents of $283.6 million and short-term investments of
$51.7 million. Pan American is
advancing its large La Colorada Skarn project, with 55,000 metres
of exploration and infill drilling planned for 2022, and
construction of initial infrastructure projects," said Michael Steinmann, President and Chief Executive
Officer.
The cash dividend of $0.12 per
common share, or approximately $25.3
million in aggregate cash dividends, is payable on or about
March 21, 2022, to holders of record
of Pan American's common shares as of the close on March 7, 2022. Pan American's dividends are
designated as eligible dividends for Canadian income tax purposes.
As at December 31, 2021, the Net Cash
position of $237.7 million is
calculated in the following table:
Cash and cash
equivalents
|
283,550
|
Short-term
investments, other than equity securities (1)
|
—
|
Total debt
|
(45,861)
|
Net cash
|
237,689
|
(1) As at
December 31, 2021, the Company's short-term investments are
comprised entirely of equity investments and largely in exploration
and development companies.
|
About Pan American Silver
Pan American Silver owns and operates silver and gold mines
located in Mexico, Peru, Canada,
Argentina and Bolivia. We also own the Escobal mine in
Guatemala that is currently not
operating. Pan American Silver provides enhanced exposure to silver
through a large base of silver reserves and resources, as well as
major catalysts to grow silver production. We have a 28-year
history of operating in Latin
America, earning an industry-leading reputation for
sustainability performance, operational excellence and prudent
financial management. We are headquartered in Vancouver, B.C. and our shares trade on NASDAQ
and the Toronto Stock Exchange under the symbol "PAAS".
Learn more at panamericansilver.com.
Cautionary Note Regarding Forward-Looking Statements and
Information
Certain of the statements and information in this news release
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
"forward-looking information" within the meaning of applicable
Canadian provincial securities laws. All statements, other than
statements of historical fact, are forward-looking statements or
information. Forward-looking statements or information in this news
release relate to, among other things: future financial or
operational performance, including our net cash, and whether Pan
American will be able to maintain a strong financial condition and
have sufficient capital to sustain our business and operations;
timing and amounts of any future dividends; and the planned
exploration and development of the La Colorada Skarn project, and
the timing thereof.
These forward-looking statements and information reflect Pan
American's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by Pan American, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: the
world-wide economic and social impact of COVID-19 and the duration
and extent of the COVID-19 pandemic and related restrictions, and
the presence and impact of COVID-19 and COVID-19 related
restrictions on our workforce, suppliers and other essential
resources and what effect those impacts, if they change, would have
on our business; the effect that the COVID-19 pandemic may have on
our financial and operational results; the ability of Pan American
to continue with its operations, or to successfully maintain our
operations on care and maintenance, should the situation related to
COVID-19 not be as anticipated; continuation of operations
following shutdowns or reductions in production, our ability to
manage reduced operations efficiently and economically, including
to maintain necessary staffing; tonnage of ore to be mined and
processed; future anticipated prices for gold, silver and other
metals and assumed foreign exchange rates; the timing and impact of
planned capital expenditure projects at La Colorada and our other operations,
including anticipated sustaining, project, and exploration
expenditures; the ongoing impact and timing of the court-mandated
ILO 169 consultation process in Guatemala; ore grades and recoveries; prices
for silver, gold and base metals remaining as estimated; currency
exchange rates remaining as estimated; capital, decommissioning and
reclamation estimates; our mineral reserve and resource estimates
and the assumptions upon which they are based; prices for energy
inputs, labour, materials, supplies and services (including
transportation); no labour-related disruptions at any of our
operations; no unplanned delays or interruptions in scheduled
production; all necessary permits, licenses and regulatory
approvals for our operations are received in a timely manner; our
ability to secure and maintain title and ownership to properties
and the surface rights necessary for our operations; and our
ability to comply with environmental, health and safety laws. The
foregoing list of assumptions is not exhaustive.
These forward-looking statements and information reflect Pan
American's current views with respect to future events and are
necessarily based upon a number of assumptions that, while
considered reasonable by Pan American, are inherently subject to
significant operational, business, economic and regulatory
uncertainties and contingencies. These assumptions include: the
world-wide economic and social impact of COVID-19 and the duration
and extent of the COVID-19 pandemic and related restrictions, and
the presence and impact of COVID-19 and COVID-19 related
restrictions on our workforce, suppliers and other essential
resources and what effect those impacts, if they change, would have
on our business; the effect that the COVID-19 pandemic may
have on our financial and operational results; the ability of Pan
American to continue with its operations, or to successfully
maintain our operations on care and maintenance, should the
situation related to COVID-19 not be as anticipated; continuation
of operations following shutdowns or reductions in production, our
ability to manage reduced operations efficiently and economically,
including to maintain necessary staffing; tonnage of ore to be
mined and processed; future anticipated prices for gold, silver and
other metals and assumed foreign exchange rates; the timing and
impact of planned capital expenditure projects at La Colorada and our other operations,
including anticipated sustaining, project, and exploration
expenditures; the ongoing impact and timing of the court-mandated
ILO 169 consultation process in Guatemala; ore grades and recoveries; prices
for silver, gold and base metals remaining as estimated; currency
exchange rates remaining as estimated; capital, decommissioning and
reclamation estimates; our mineral reserve and resource estimates
and the assumptions upon which they are based; prices for energy
inputs, labour, materials, supplies and services (including
transportation); no labour-related disruptions at any of our
operations; no unplanned delays or interruptions in scheduled
production; all necessary permits, licenses and regulatory
approvals for our operations are received in a timely manner; our
ability to secure and maintain title and ownership to properties
and the surface rights necessary for our operations; and our
ability to comply with environmental, health and safety laws. The
foregoing list of assumptions is not exhaustive.
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SOURCE Pan American Silver Corp.