Each one in plain English, with the numbers worked through for a shareholder.
21 Oct 2019resource reserve update● Neutral
Pan American filed a technical report on the Shahuindo Mine in Cajabamba, Peru, dated January 25, 2016 (resource effective April 15, 2015, reserve effective November 1, 2015). It was written by Kappes, Cassiday & Associates and Tahoe Resources staff. The filing does not explain Pan American's link to the mine, and the resource and reserve figures were truncated. Inference only: another Tahoe-related asset, following the Timmins West and Bell Creek reports filed the same day.
Pan American filed a technical report on the Bell Creek gold mine in Timmins, Ontario, prepared for Lake Shore Gold Corp., dated March 27, 2015 (effective December 31, 2014). It sits alongside the Timmins West report filed the same day; the filing does not say why Pan American is filing these, and the reserve figures were truncated, so none can be given. Inference only: the Lake Shore Gold and Tahoe reports may point to assets acquired through a Tahoe combination, but the filing does not state this.
Pan American filed a technical report on the Timmins West gold mine in Ontario, prepared for Tahoe Resources and dated September 20, 2017 (effective May 15, 2017). This is a mine Pan American does not appear in earlier context to own, so the filing implies a Tahoe-related link; the supplied text does not explain it, and the report's resource, reserve and economic figures were truncated. Inference only: it may relate to a Tahoe combination, but the filing as provided does not say so. No figures can be drawn from it here.
The Maverix deal announced in April closed. Maverix acquired the 13 royalties, streams and payment agreements from Pan American, which received 42,850,000 Maverix shares and 20,000,000 five-year warrants (half at C$0.70, half at C$1.00). Pan American holds about 54% of Maverix (79,837,856 shares outstanding) on a non-diluted basis. Pan American keeps exposure to the portfolio only through this stake, including the La Colorada gold stream it granted.
Pan American and MacMillan Minerals signed an arrangement with Maverix Metals to create a new royalty and streaming company. MacMillan would buy Maverix and a package of thirteen royalties and streams from Pan American, including a gold stream on La Colorada (100% of gold at a fixed US$650/oz), and a stream on La Bolsa. Pan American would hold 54% (63% fully diluted) of the combined company, which would be renamed Maverix Metals with former Pan American CEO Geoff Burns as chairman. Independent valuer RPA put the portfolio at C$52-57 million. The release names Michael Steinmann as Pan American's President and CEO, and Geoff Burns had retired on December 31, 2015. The deal needed approvals and was not yet complete.
Pan American announced a new share buyback, accepted by the TSX, to purchase up to 7,575,290 shares (5% of the 151,505,815 outstanding at December 7, 2014) from December 22, 2014 to December 21, 2015. It disclosed that it made no purchases under the previous bid (Dec 5, 2013 to Dec 4, 2014), which allowed up to 7,570,535 shares. Shares bought would be cancelled and paid from working capital, and the company is not obliged to buy. The board says the share price may not fully reflect the value of its mines, properties and growth prospects.
Pan American declared its third quarterly dividend of 2014 at $0.125 per share, payable about September 5, 2014 to holders of record August 25, 2014. The rate is unchanged from earlier in 2014; the company cites a yield of about 3.3% if it continues, subject to future board approval.
Pan American declared its second quarterly dividend of 2014 at $0.125 per share, payable about June 3, 2014 to holders of record May 21, 2014. The rate is unchanged from the first 2014 dividend; the company cites a yield of about 4.0% if it continues, subject to future board approval.
Pan American reported year-end 2013 proven and probable silver reserves of 323.5 million ounces, up 2% from about 317 million a year earlier, and gold reserves of about 2.5 million ounces. Exploration added 40.1 Moz against 33.7 Moz mined, and the company used lower metal prices (silver $22/oz versus $25). La Colorada rose to 81.4 Moz; Dolores tonnes fell from 87.8 Mt to 68.6 Mt with higher grades, leaving silver reserves at 72.6 Moz (down 3.5 Moz) and gold at 1.75 Moz (up 135,000 oz); Manantial Espejo replaced only 42% of what was mined. Huaron, Morococha and San Vicente each replaced their 2013 production. For 2014 it plans $14.0M for about 108 km of drilling at its seven mines and $6.5M for greenfield exploration, down from $16.3M and $14.7M in 2013. This delivers the reserve update promised in the January release.
Pan American declared its first quarterly dividend of 2014 at $0.125 per share, payable about March 17, 2014 to holders of record March 3, 2014. The rate is unchanged from every 2013 quarter; the company cites a yield of about 3.4% if the rate continues, which depends on future board approval.
Pan American said La Colorada's proven and probable silver reserves rose 26% to 81.4 million ounces at December 31, 2013 (about 16.7 million ounces of new reserves added net of 2013 production, per this release). It also filed a preliminary technical report on SEDAR for the mine expansion announced December 18, 2013, which targets annual silver output rising from 4.6 million ounces (2013) to 7.7 million ounces in 2018. The company notes the expansion decision is not based on a feasibility study and the report includes speculative inferred resources, so results are uncertain. This builds on the La Colorada Amolillo/NC2 drilling flagged in earlier filings and the 64.8 Moz reserve at end 2012.
Pan American announced a new share buyback, accepted by the TSX, to purchase up to 7,570,535 shares (5% of the 151,410,712 outstanding at November 14, 2013) from December 5, 2013 to December 4, 2014. The prior bid (Sept 2012 to Sept 2013) ended with only 1,012,900 shares bought at an average US$17.21, far fewer than the 7,607,277 it allowed. Shares bought are cancelled and funded from working capital, and the company is not obliged to buy. The board says the share price may not fully reflect the value of its mines and projects.
Pan American declared its fourth quarterly dividend of 2013 at $0.125 per share, payable about December 9, 2013 to holders of record November 25, 2013. The rate is unchanged for the year; the company cites a yield of about 4.9% if it continues, a higher figure than in August that reflects the share price it used on November 13.
Pan American declared its third quarterly dividend of 2013 at $0.125 per share, payable about September 9, 2013 to holders of record August 26, 2013. The rate is unchanged from February and May; the company cites a yield of about 3.6% if it continues, and describes seven operating mines.
Pan American declared its second quarterly dividend of 2013 at $0.125 per share, payable about June 5, 2013 to holders of record May 24, 2013. This is unchanged from the rate set in February; the company cites an annual yield of about 3.9% if the rate continues, which depends on future board approval.
Pan American reported year-end 2012 proven and probable silver reserves of 316.9 million ounces, up 35% from 235.3 million at end 2011, and gold reserves of about 2.4 million ounces. Exploration added 31.2 Moz against 26.0 Moz mined, La Colorada rose 47% to 64.8 Moz, and the Dolores mine and La Bolsa project added 80.6 Moz after the Minefinders deal, while 4.2 Moz left with Quiruvilca. Morococha (down 8% to 37.1 Moz) and Manantial Espejo (down 27% to 21.2 Moz) fell, and the first Dolores estimate (76 Moz silver, 1.6 Moz gold) is below Minefinders' 2010 estimate. The company plans $16.3M for about 124,000 m of drilling at its seven mines and $14.7M for greenfield exploration in 2013. This delivers the December 2012 update that earlier filings said was due in February 2013.
Pan American raised its quarterly dividend 150%, from $0.05 to $0.125 per share ($0.50 a year if maintained), and declared the first dividend of 2013, payable about March 18, 2013 to holders of record March 4, 2013. The CEO calls it the fourth increase since the first dividend in February 2010 and says the company expects solid net cash flow in 2013 and enough cash to fund growth at La Colorada and Dolores, projects, exploration and continued buybacks (company statements). It follows the 50% raise in February 2012 and the 33% raise in August 2012.
Pan American declared its fourth quarterly dividend of 2012 at $0.05 per share, payable about December 3, 2012 to holders of record November 19, 2012. This is unchanged from the rate set in August.
Pan American announced a new share buyback, accepted by the TSX, to purchase up to 7,607,277 shares (5% of the 152,145,556 outstanding at August 20, 2012) from September 4, 2012 to September 3, 2013. The prior bid is finished: 5,395,540 shares were bought at an average US$23.14 over 12 months. Purchases are funded from working capital, shares bought are cancelled, and the company is not obligated to buy. The 152.1 million share count shows the larger base after the Minefinders deal. This replaces the bid that was due to end August 31, 2012.
Pan American raised its quarterly dividend 33%, from $0.0375 to $0.05 per share, and declared the third dividend of 2012, payable about September 10, 2012 to holders of record August 27, 2012. This is the second increase of the year, following the 50% rise in February, and annualises to $0.20 per share from $0.15. Future dividends remain at the board's discretion.
Pan American reported 2012 drill results. At La Colorada, the Amolillo vein (about 500 m northwest of the main HW/NC2 structures, currently producing 125 tonnes a day) was intersected down to the 520 level, with its strike length now 900 m; best sulphide hole returned 2.41 m at 1,750 g/t silver. At Waterloo (California, 100% held since 1996), the first drilling returned 108 m at 181 g/t silver from surface. Waterloo's 101 million ounce estimate is historical, not verified and not treated as a current resource; a second phase is planned. Results will feed the December 2012 reserve and resource update, due February 2013.
27 June 2012asset acquisition disposition● NeutralMajor
Pan American sold 100% of Quiruvilca, its Peruvian mine, to Quiruvilca Ltd., a subsidiary of Southern Peaks Mining L.P., effective June 1, 2012, for $2 million (subject to adjustments) with the buyer assuming all liabilities. Pan American can also elect either a 2% net smelter royalty (when silver is above $15/oz, zinc above $1,200/t and copper above $6,061/t) or payments based on the gap between $23/oz silver and market price on 50% of future payable silver, capped at $3 million per 12 months until Quiruvilca generates $25 million EBITDA. It expects a net gain of about $11.3 million. The company calls Quiruvilca a higher-cost producer that no longer fit its portfolio, and now cites seven operating mines. This ends the Quiruvilca asset that earlier filings had flagged for care and maintenance.
21 June 2012regulatory community update● NeutralMajor
Pan American reported that on June 19, 2012 Chubut's governor presented pending legislation for a new mining and petroleum framework covering labor, environmental compliance, community consultation, higher provincial royalties, possible participation by the provincial company Petrominera, and areas where open-pit mining would be allowed, including where Navidad is located. The company has not yet seen the detailed text, cannot say whether it will be presented, enacted or amended, and will assess the impact on Navidad once it does. This continues the Chubut regulatory risk flagged for Navidad; no impact is yet quantified.
Pan American declared its second quarterly dividend of 2012 at $0.0375 per share, payable on or about June 11, 2012 to holders of record May 28, 2012, unchanged from the rate raised in February. It also restarted its share buyback, which had been paused to complete the Minefinders acquisition: 3,582,200 shares were repurchased in 2011, and up to 1,813,340 more can be bought before the program ends August 31, 2012. The board says the share price does not fully reflect the value of the business. Purchases are not obligatory.
Pan American completed its acquisition of all Minefinders shares on March 30, 2012, resolving the pending deal announced in January. Minefinders holders received, per share, C$1.84 plus 0.55 Pan American shares (full proration election), 0.6235 shares plus C$0.0001 (share election), or C$2.0306 plus 0.5423 shares (cash election). Pan American now describes eight operating mines in Mexico, Peru, Argentina and Bolivia, and says the deal increases near-term silver and gold production and cash flow and reduces average cash costs (company's statements). Minefinders shares are to be delisted from the TSX and NYSE Amex. Existing shareholders are diluted by the shares issued; the filing does not give the final share count.
Both companies' shareholders approved the Minefinders deal on March 26, 2012: 79.78% of Pan American shares represented at its meeting voted to allow issuing up to 53,666,003 shares, and 99.79% of Minefinders shares represented voted in favour. Minefinders was to seek final Ontario court approval on March 28, with the deal expected to take effect on or about March 30, 2012. This resolves the shareholder-vote step of the pending deal; court approval and closing were still to come.
Proxy advisers ISS and Glass Lewis recommended that shareholders of both Pan American and Minefinders vote for the Minefinders arrangement, and Mexico's Federal Competition Commission authorized it, which the companies call the principal outstanding regulatory condition aside from shareholder and court approvals. Both special meetings are set for March 26, 2012, with Pan American's proxy deadline March 22. This advances the pending Minefinders deal but it is not yet approved or closed.
Pan American raised its quarterly dividend by 50%, from $0.025 to $0.0375 per share, and declared the first quarterly dividend of 2012 at that rate, payable on or about March 19, 2012 to holders of record on March 5, 2012. This is the first increase since the dividend was set at $0.025 in 2010.
Pan American reported year-end 2011 proven and probable silver reserves of 235.3 million ounces, up 2% from 230.7 million. It added 29.3 million ounces against 24.7 million mined, with La Colorada up 15% to 44.1 million ounces (NC2 vein still open at depth and to the east). Measured and indicated resources were 708.8 million ounces and inferred 271.7 million; the Navidad resource update is deferred to its feasibility study later in 2012. It plans $15.5 million for about 116,000 m of drilling at the seven operating mines and $7.8 million for greenfield exploration in 2012; the filing says cost pressures (notably in Argentina) and weaker concentrate sales terms affected results at some operations. These figures exclude Minefinders.
Pan American agreed to buy Minefinders (owner of the Dolores gold and silver mine in Mexico) by plan of arrangement, in a deal valued at about C$1.5 billion. Minefinders holders can elect 0.55 Pan American shares plus C$1.84 cash, 0.6235 shares, or C$15.60 cash per share, subject to pro-ration of pools of about C$176 million cash and about 53 million Pan American shares. Minefinders holders would own about 33% of Pan American on a fully diluted basis, so existing shareholders are diluted to that extent. The deal needs court, Minefinders holder and Pan American shareholder approval (meetings expected March 2012) plus regulatory approvals, and carries a C$42 million reciprocal termination payment. The company says it expects to keep its existing dividend and fund growth without equity dilution; the filing also cites about US$570 million pro forma cash and US$150 million undrawn credit facilities. This is a new, large pending transaction.
