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Pan American Silver announces net earnings of $34.2 million ($0.22 per share) in the second quarter

All amounts are expressed in US$ unless otherwise indicated. Financial information is based on International Financial Reporting Standards ("IFRS"). Results are unaudited.

This news release refers to measures that are not generally accepted accounting principle ("Non-GAAP") financial measures, including cash costs per payable ounce of silver, all-in sustaining costs per silver ounce sold, and adjusted earnings (losses). Please refer to the section titled "Alternative Performance (non-GAAP) Measures" contained in this news release for further information on these measures.

This news release should be read in conjunction with the Company's unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2016 and 2015, and related notes contained therein, and the related management's discussion and analysis, which have been filed on SEDAR and are available at and on the Company's website at

VANCOUVER, Aug. 11, 2016 /PRNewswire/ - Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) ("Pan American", or the "Company") today reported unaudited results for the second quarter ended June 30, 2016 ("Q2 2016"). Net earnings were $34.2 million ($0.22 per share) compared with a net loss of $7.3 million ($0.05 loss per share) recorded in the second quarter of 2015 ("Q2 2015"). The $41.5 million increase in net earnings was largely driven by lower production costs, as reflected by a 41% drop in quarter over quarter cash costs to $5.57 per payable ounce of silver in Q2 2016. The increase in net earnings also reflects the sale of certain non-core mineral property assets in Peru.

"We generated $66 million of operating cash flow in the second quarter, the highest level since the fourth quarter of 2012. Even more impressive is the fact that the increase was largely driven by reduced costs across all of our operations," said Michael Steinmann, President and Chief Executive Officer of the Company. "The cash generated fully funded all of our capital requirements, including our expansion projects, and increased our cash and short-term investment position to over $204 million."

Mr. Steinmann added: "The outlook for the remainder of the year is very encouraging. We've lowered our guidance for cash costs and all-in sustaining costs per ounce by 30% and 16%, respectively, for 2016. We're on pace to meet our production targets, and we're pleased too that silver prices have improved substantially in recent months."

  • Silver production was 6.33 million ounces, down slightly from 6.65 million ounces produced in Q2 2015. The decrease reflects anticipated production declines from sequencing at the Dolores, Alamo Dorado, and Manantial Espejo mines, partially offset by increased production at all other operations. Silver production for the first half of 2016 totaled 12.75 million ounces, and is on pace to achieve our annual forecast of 24.0 to 25.0 million ounces.
  • Gold production increased 9% in both the three and six-month periods ending June 30, 2016 to 48.4 thousand ounces and 89.6 thousand ounces, respectively, over the comparable periods of 2015. The increase in gold production was anticipated, as mine sequencing at Dolores resulted in higher grades.
  • Consolidated cash...