Pan American Silver (PAAS) investor relations material

Executive summary

• Achieved strong Q1 2026 operating performance with silver and gold production in line with or exceeding outlook, and robust operating earnings.

• Net earnings reached $456 million ($1.08 per share), with adjusted earnings at $1.09 per share.

• Attributable production was 6.44 million ounces of silver and 169.2 thousand ounces of gold.

• Generated $488 million in attributable free cash flow, ending Q1 with record cash and short-term investments of up to $1.8 billion.

• Enhanced shareholder return framework targets up to $1 billion in 2026 via dividends and share repurchases, with $305 million in dividends and $25 million in Q1 buybacks.

Financial highlights

• Q1 2026 revenue was $1.2 billion, with attributable revenue including joint ventures at $1.33 billion.

• Silver Segment AISC was $6.63/oz, well below guidance; Gold Segment AISC was $1,851/oz, in line with expectations.

• Attributable free cash flow was $488 million; cash flow from operations totaled $505 million.

• Cash and short-term investments stood at $1.6 billion (excluding $199 million from Juanicipio), with total available liquidity of $2.4 billion.

• Revenue was impacted by a buildup of 644,000 ounces of silver in inventory due to shipment timing.

Outlook and guidance

• 2026 guidance reaffirmed: attributable silver production 25–27 million oz, gold 700–750 thousand oz.

• Silver Segment AISC forecasted at $15.75–$18.25/oz; Gold Segment AISC at $1,700–$1,850/oz.

• Production and cash flow expected to be weighted to the second half of 2026, with gold production higher in Q4 due to deferred output.

• Sustaining capital expenditures expected at $320–$340 million; project capital expenditures raised to $240–$255 million.

• Monitoring potential cost pressures, especially related to fuel prices, though direct exposure is limited to about 5% of operating costs.