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
Executive
Michael Steinmann

Q2 results yesterday, we also provide a revised guidance for 2020. We withdrew the guidance previously provided for 2020, because we were unable to determine the impact from the government mandated suspensions at that time. While the situation regarding the COVID-19 pandemic is still very fluid and uncertain, we feel we are in a better position to provide guidance with most of our operations now having resumed. In 2020, we are expecting the total silver production of 19 million to 22 million ounces and gold production of 525,000 to 575,000 ounces.

All-in sustaining costs for the silver segment are expected to be between $10.50 to $12.50 per ounce. For the gold segment, all-in sustaining costs are expected between $1,050 to $1,125. Capital expenditures are estimated to total between $210 million to $215 million, including $25 million to $26 million for project capital. Again, there remains significant uncertainty in the second half of the year due to the potential impact of COVID-19 on production and cost.

The past few months have been the most challenging in Pan American's 26-year history due to the global COVID-19 pandemic. I'm very proud of our team has been managing this crisis, which gives me the confidence that our business is resilient and can navigate these extraordinary challenges. The unprecedented economic impact of the pandemic has forced governments to unleash monetary measures, the scale of which we have never seen before. Gold and silver have responded with prices rising significantly over the course of the year. This should generate margin expansion and improved financial performance over the reminder of 2020.

And with that, I would like to open for questions.