Pan American Silver Corp. (NASDAQ:PAAS) Q2 2020 Earnings Conference Call - Final Transcript

Aug 06, 2020 • 11:00 am ET

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Pan American Silver Corp. (NASDAQ:PAAS) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Thank you for standing by. This is the conference operator. Welcome to the Pan American Silver Second Quarter Results 2020 Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions]

I would now like to turn the conference over to Siren Fisekci, VP, Investor Relations. Please go ahead.

Executive
Siren Fisekci

Thank you, operator, and welcome, everyone, to Pan American Silver's second quarter 2020 conference call. Media and other participants on the call are invited to participate in listen-only mode. We released our results after yesterday's market close and a copy of the news release, MD&A and presentation slides for today's call are available on our website.

The material on today's call contains certain statements and information that constitute forward-looking statements and information. Please review the cautionary statements included in our news release and presentation as well as the risk factors described in our most recent Form 40-F and annual Information Form.

I will now turn the call over to Pan American's President and CEO, Michael Steinmann, who will provide a brief review of our results. We will then open the call to questions and answers.

Executive
Michael Steinmann

Thank you everyone for joining us today to discuss our second quarter results. The global COVID-19 pandemic had a significant impact on our operations over the second quarter. Despite strong government measures introduced in many of the countries where we operate to control the spread of the virus, infection rates are climbing and health care systems are struggling to cope. Our operations in Mexico, Peru, Argentina, and Bolivia were all suspended for various durations during Q2, in order to comply with mandatory national quarantines imposed in response to COVID-19 pandemic.

Silver and base metal production were most impacted as limited gold production continued from the heap leach operations at Shahuindo, La Arena, and Dolores and from the Timmins operation, which continues to produce gold at about 90% of capacity since the pandemic was declared. By June 1, all our operations were back in production except for Huaron and Morococha in Peru. Well, those mines restarted in June, they were returned to care and maintenance on July 20 following several workers testing positive for the COVID-19 virus. A reduced workforce is conducting care and maintenance activities at those mines, until it is determined that normal operations can safely resume.

Across all our operations, we have introduced comprehensive protocols to safeguard health and safety of our workforce and communities. The slides accompanying this call and posted on our website provide a channel description of those protocols. We have limited the remobilization of the workforce in order to allow time to adopt and refine these protocols. Our mines are currently operating at lower capacities with reduced staffing levels to accommodate the COVID-19 related protocols, particularly physical distancing in the workplace, camps, cafeterias and transport system.

Revenue in Q2 of $249 million reflects the impact on sales volumes from the mine suspensions,