Pan American Silver misses Q4 earnings, revenue estimates (NASDAQ:PAAS)

Pan American Silver misses Q4 earnings, revenue estimates (NASDAQ:PAAS)

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Pan American Silver (NASDAQ:PAAS) reports Q4 adjusted basic earnings of $39.9M, or $0.19/share, below $0.30 analyst consensus estimate and $0.57 in the year-ago quarter, while revenues fell 2% Y/Y to $422M, below $431M consensus.

Pan American said it will launch a new dividend policy, which adds a variable amount to a base quarterly dividend of $0.10/share that will be linked to the net cash on the balance sheet for the previous quarter; based on the new policy, the board approved a 20% increase in the cash dividend to $0.12/share.

Q4 silver production rose 8% Y/Y to 5.27M oz. at all-in sustaining cost of $13.57/oz., compared with $10.37/oz. in the year-ago quarter; gold output increased 2.5% to 156.7K oz. at AISC of $1,461/oz., vs. $1,023/oz. a year earlier.

For FY 2022, Pan American forecasts silver production of 19M-20.5 oz. of silver and 550K-605K oz. of gold, which excludes the Morococha mine because of the decision to place the operation on care and maintenance in early 2022; silver all-in sustaining cost is seen at $14.50-$16.00/oz. and gold AISC is guided for $1,240-$1,365/oz.

Pan American said 2022 guidance assumes the impact from COVID-19 will diminish over the course of the year following lower workforce deployment levels in January and February.

Planned project capital in 2022 of $80M-$95M is directed towards the La Colorada Skarn project for further exploration and infill drilling, and engineering studies to determine the optimal project design.

The company also appointed current VP Finance Ignacio Couturier as its new CFO, succeeding Rob Doyle, who is retiring.

Pan American Silver’s stock price return is down 32% over the past year and 6% lower YTD.

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