3. Cautionary Note
Non-GAAP Measures
This presentation refers to various measures that are not generally accepted accounting pinciples (“non-GAAP”), such as cash costs per payable ounce of silver, all-in sustaining cost per silver ounce
sold (“AISCSOS”) and adjusted (loss) earnings. Readers should refer to the “Alternative Performance (non-GAAP) Measures” section in Pan American Silver Corp.’s press release dated Feb 14, 2017
available at www.sedar.com.
Reporting Currency and Financial Information
Unless we have specified otherwise, all references to dollar amounts or $ are to United States dollars.
Cautionary Note Regarding Forward Looking Statements and Information
Certain of the statements and information in this presentation constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and
“forward-looking information” within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or
information. Forward-looking statements or information in this presentation relate to, among other things: our estimated production of silver, gold and other metals in 2016; our estimated cash
costs per payable ounce of silver and AISCSOS in 2016; the ability of the Company to successfully complete any capital investment programs and projects, the schedule for any such completion, and
the impacts of any such programs and projects on the Company; and any anticipated level of financial and operational success in 2016.
These statements and information reflect the Company’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by
the Company, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: tonnage of ore to be mined and
processed; ore grades and recoveries; prices for silver, gold and base metals remaining as estimated; currency exchange rates remaining as estimated; capital, decommissioning and reclamation
estimates; our mineral reserve and recourse estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies and services (including transportation);
no labour-related disruptions at any of our operations; no unplanned delays or interruptions in scheduled production; all necessary permits, licenses and regulatory approvals for our operations are
received in a timely manner; and our ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.
The Company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and
developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this presentation and the Company has made assumptions and
estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in silver, gold and base metal prices; fluctuations in prices for energy inputs, labour,
materials, supplies and services (including transportation); fluctuations in currency markets (such as the Canadian Dollar, Peruvian Sol, Mexican Peso, Argentine Peso and Bolivian Boliviano versus
the U.S. Dollar); operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or
unexpected geological or structural formations, cave-ins, flooding and severe weather); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with
whom the Company does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with, and claims by, local communities
and indigenous populations; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in the
jurisdictions where we operate, including environmental, export and import laws and regulations; diminishing quantities or grades of mineral reserves as properties are mined; increased
competition in the mining industry for equipment and qualified personnel; and those factors identified under the caption “Risks Related to Pan American’s Business” in the Company’s most recent
form 40-F and Annual Information Form filed with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities. Although the Company has
attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended.
Investors are cautioned against undue reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management’s
current views of our near and longer term prospects and may not be appropriate for other purposes. The Company does not intend, nor does it assume any obligation to update or revise forward-
looking statements or information, whether as a result of new information, changes in assumptions, future events or otherwise, except to the extent required by applicable law.
Technical Information
Technical information contained in this presentation with respect to Pan American has been reviewed or approved by Martin Wafforn, P.Eng., SVP Technical Services and Process Optimization, who
is the Company’s qualified person for the purposes of National Instrument 43-101. For additional information about the Company’s material mineral properties, please refer to the Company’s
Annual Information Form dated March 24, 2016, filed at www.sedar.com.
3 February 14, 2017
4. Cautionary Note About Mineral Reserves and
Resources
4
Cautionary Note to US Investors Concerning Estimates of Mineral Reserves and Resources
This presentation has been prepared in accordance with the requirements of Canadian securities laws, which differ from the requirements of U.S. securities laws. Unless otherwise
indicated, all mineral reserve and resource estimates included in this presentation have been prepared in accordance with Canadian National Instrument 43-101 – Standards of
Disclosure for Mineral Projects (‘‘NI 43-101’’) and the Canadian Institute of Mining, Metallurgy and Petroleum classification system. NI 43-101 is a rule developed by the Canadian
Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.
Canadian standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and information concerning
mineralization, deposits, mineral reserve and resource information contained or referred to herein may not be comparable to similar information disclosed by U.S. companies. In
particular, and without limiting the generality of the foregoing, this presentation uses the terms ‘‘measured resources’’, ‘‘indicated resources’’ and ‘‘inferred resources’’. U.S. investors
are advised that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. The requirements of NI 43-101 for identification of
‘‘reserves’’ are not the same as those of the SEC, and reserves reported by Pan American in compliance with NI 43-101 may not qualify as ‘‘reserves’’ under SEC standards. Under U.S.
standards, mineralization may not be classified as a ‘‘reserve’’ unless the determination has been made that the mineralization could be economically and legally produced or extracted
at the time the reserve determination is made. U.S. investors are cautioned not to assume that any part of a “measured resource” or “indicated resource” will ever be converted into a
“reserve”. U.S. investors should also understand that “inferred resources” have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal
feasibility. It cannot be assumed that all or any part of “inferred resources” exist, are economically or legally mineable or will ever be upgraded to a higher category. Under Canadian
securities laws, estimated “inferred resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. Disclosure of “contained ounces” in a mineral resource
is permitted disclosure under Canadian securities laws. However, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as
in place tonnage and grade, without reference to unit measures. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made
public by companies that report in accordance with U.S. standards.
February 14, 2017
5. Q4 2016 Financial Results
Consolidated Financial Highlights Q4 2016 Q4 2015
Net earnings (loss) ($ millions) 22.3 (137.0)
Net earnings (loss) per share 0.14 (0.88)
Adjusted earnings (loss) (1) ($ millions) 19.0 (12.7)
Adjusted earnings (loss) per share 0.12 (0.08)
AISCSOS ($/ounce) (1) 10.38 14.76
Operating cash flow before changes in non-cash
operating working capital ($ millions)
43.4 17.3
Operating cash flow before changes in non-cash
operating working capital per share
0.28 0.11
5
(1)
Adjusted earnings (loss), adjusted earnings (loss) per share, and AISCSOS are non-GAAP measures. Readers should refer to the “Alternative Performance (non-GAAP) Measures” section of the
press release dated Feb 14, 2017 for a more detailed discussion of this and other non-GAAP measures and their calculation.
February 15, 2017
7. 18
2016 Consolidated Cash Flows
▪ 2016 operating cash flow before changes in working capital was sufficient to fund sustaining capital, income tax
payments, and dividends, while generating $122M in excess cash, $3M than the $119M used for project capital.
▪ The robust sustaining cash flows in 2016, plus $16M of cash generated on the sale of Shalipayco, resulted in year-
over-year treasury balances only decreasing $9M (4%), after funding $119M of expansion project costs, $23M of
short-term debt settlement and $5 million used to exercise MMX warrants.
8. Financial strength
USD Millions
Cash and cash equivalents and short-term investments 217.6
Working capital (1) 428.6
Total debt (2) 43.3
Total available liquidity (3) 481.4
At Dec. 31, 2016
8 February 14, 2017
(1) Working capital is a non-GAAP measure calculated as current assets less current liabilities. The Company and certain investors
use this information to evaluate whether the Company is able to meet its current obligations using its current assets.
(2) Inclusive of $7.1 million in capital leases.
(3) Includes cash and cash equivalents, short-term investments, and the undrawn portion of the Company’s secured line of credit.
9. La Colorada expansion (1)
9 February 14, 2017
Highlights
• 69% increase expected in average annual
silver production to 7.7 Moz by 2018
• 137% and 185% increase expected in zinc
and lead production, respectively, by 2018
Project Scope
• New 618-metre deep mine shaft – fully
commissioned in Q3 2016
• New sulphide processing plant – began
operating Q3 2016
• Underground development to open new
production areas – advancing on schedule for
completion in 2017
• New 115kV power line - targeted for
completion in 2017
(1) For additional information, please refer to the Company’s technical report entitled “Technical Report – Preliminary Economic Analysis for the Expansion of the La Colorada Mine, Zacatecas, Mexico”,
with an effective date of Dec. 31, 2013 available at www.SEDAR.com. The results of this preliminary economic assessment are preliminary in nature, in that it includes inferred mineral resources that are
considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the assessment
will be realized. Mineral resources that are not mineral reserves have no demonstrated economic viability.
Original investment of $163.8 M, including sustaining
capital, generated an IRR of 22% at Ag $19/oz
Now expected to be ~5% under budget
10. La Colorada Expansion Project Close-Out
• Apart from some additional work to complete the new 115 kV
powerline and some underground development in the Estrella vein,
the project is complete.
• Both of these remaining scopes of work have been budgeted in 2017
($4.2 million total). Mine operations will complete the underground
development, and a 2-person team from the project group is in charge
of overseeing the completion of the 115 kV powerline installation.
• The overall project, with the cost of the above remaining work
included, is expected to be completed at 95% of CAR budget.
• The plant and shaft inauguration was successfully hosted on January
26, 2017 at the La Colorada site.
8
11. Dolores expansion (1)
10 February 14, 2017
Highlights
• During first 5 years, estimated increases in
average annual production of:
• Silver up 40%
• Gold up 52%
• Reduce Cash Costs through operational
efficiencies and higher gold production
Project Scope
• New 5,600 tpd pulp agglomeration plant -
scheduled for start-up in mid 2017
• New underground mine - scheduled to
reach 1,500 tpd by end of 2017
• New 115 kV power line - energized in
September 2016
(1) For additional information, please refer to the Company’s technical report entitled “Technical Report for the Dolores Property, Chihuahua, Mexico - Preliminary Economic Assessment of a Pulp
Agglomeration Treatment and Underground Option”, with an effective date of May 31, 2014 available at www.SEDAR.com. The results of this preliminary economic assessment are preliminary in
nature, in that it includes inferred mineral resources that are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized
as mineral reserves, and there is no certainty that the assessment will be realized. Mineral resources that are not mineral reserves have no demonstrated economic viability.
Estimated capital investment ~$132.4 M (incl. power line)
IRR 27% at Ag $19/oz & Au $1,200/oz
On budget
13. Improving operating margins
11 February 14, 2017
By-product metal prices assumptions used for forecast Cash Costs calculation: Au $1,200/oz, Zn $2,500/tonne, Pb $2,100/tonne, Cu $5,400/tonne. Exchange rates
relative to US$ assumed: Mexican peso 20:1, Peruvian sol 3.3:1, Argentine peso 17.05:1, Bolivian boliviano 7:1. Cash Costs is a non-GAAP measure. Refer to
“Alternative Performance (non-GAAP) Measures” section of the press release dated Jan 12, 2017 for more information.
14. Q4 and FY 2016 Operating Results
Consolidated Q4 2016 FY 2016
Silver production (million ounces) 6.3 25.4
Gold production (thousand ounces) 43.9 183.9
Zinc production (thousand tonnes) 13.2 51.9
Lead production (thousand tonnes) 5.5 20.2
Copper production (thousand tonnes) 3.1 14.4
Cash Costs(1) ($/ounce) 6.66 6.29
12 February 14, 2017
(1) Preliminary Cash Costs per payable ounce of silver, net of by-product credits. Average by-product metal prices for Q4 2016 were: Au $1,222/oz,
Zn $2,517/tonne, Pb $2,149/tonne, and Cu $5,277/tonne. Average by-product metal prices for 2016 were: Au $1,251/oz, Zn $2,095/tonne, Pb
$1,872/tonne, and Cu $4,860/tonne. Cash Costs is a non-GAAP measure and readers should refer to the “Alternative Performance (non-GAAP)
Measures" section of Pan American’s press release dated Feb 14, 2017 for more information.
15. Q4 2016 – Operating Results by Mine
13
Mine Ag Production
(Moz)
Au Production
(koz)
$ Cash Costs (1)
La Colorada 1.67 0.86 4.38
Dolores 0.90 28.83 (5.93)
Alamo Dorado 0.40 1.41 22.80
Huaron 0.94 0.20 4.54
Morococha (2) 0.58 0.43 5.52
San Vicente (2) 1.05 N/A 11.22
Manantial Espejo 0.78 12.21 14.61
TOTAL (3) 6.31 43.94 6.66
(1) Cash costs per ounce of silver, net of by-product credits. Cash cost is a non-GAAP measure. Cash costs does not have a standardized meaning prescribed by IFRS as an indicator of
performance. The Company’s method of calculating cash costs may differ from the methods used by other entities and, accordingly, the Company’s cash costs may not be comparable to
similarly titled measures used by other entities. Readers should refer to the “Alternative Performance (Non-GAAP) Measures” section of the Company’s Management’s Discussion &
Analysis for the period ended Dec. 31, 2016, for a more detailed description of this measure and its calculation.
(2) Represents the Company’s partial ownership interest.
(3) Totals may not add up due to rounding.
February 14, 2017
16. Three-year outlook
Consolidated 2017 Guidance 2018 Outlook 2019 Outlook
Silver production (million ounces) 24.5 – 26.0 26.0 - 28.0 26.5 – 29.5
Gold production (thousand ounces) 155 - 165 170 - 185 175 - 200
Zinc production (thousand tonnes) 56.5 - 58.5 59.0 - 63.0 55.0 - 65.0
Lead production (thousand tonnes) 19.0 - 20.0 23.0 - 26.0 23.0 - 27.0
Copper production (thousand tonnes) 8.75 - 9.25 6.00 - 8.00 4.00 - 4.20
Cash Costs(1)($/ounce) 6.45 - 7.45 5.60 - 7.10 5.20 – 6.80
Sustaining capital ($ millions) 82 - 88 75 - 85 75 - 90
Project Capital ($ millions) (2) 58 - 62 - -
AISCSOS(1) ($/ounce) 11.50 - 12.90 10.00 - 12.20 9.30 - 11.60
14 February 14, 2017
(1) Cash Costs and AISCSOS are non-GAAP measures. Please refer to the “Alternative Performance (non-GAAP) Measures"
section of Pan American’s Management’s Discussion and Analysis for the period ended Dec. 31, 2016 for more
information.
(2) Project Capital relates to the current mine expansions at La Colorada and Dolores; 2017 is expected to be the final year of
project capital related to these expansions.
17. Pan American Silver Proven and Probable
Reserves at December 31, 2016 (1) (2)
Property Location Category Tonnes
(Mt)
Ag
g/t
Contained
Ag (Moz)
Au
g/t
Contained
Au (000’s oz)
Cu
%
Pb
%
Zn
%
Huaron Peru Proven 5.7 169 30.8 N/A 0.37 1.46 3.02
Probable 3.8 167 20.6 N/A 0.38 1.62 3.10
Morococha (92.3%) (3) Peru Proven 2.6 173 14.6 N/A 0.58 1.18 3.78
Probable 2.2 181 12.8 N/A 0.44 1.64 4.21
La Colorada Mexico Proven 3.7 432 51.3 0.33 39.1 1.72 3.08
Probable 4.0 362 46.8 0.32 41.2 1.24 2.06
Dolores Mexico Proven 41.6 27 36.1 0.77 1,034.9
Probable 22.5 25 17.9 0.65 472.4
La Bolsa Mexico Proven 9.5 10 3.1 0.67 203.0
Probable 6.2 7 1.4 0.57 113.1
Manantial Espejo Argentina Proven 2.2 111 8.0 1.17 84.4
Probable 0.5 244 3.8 3.32 52.2
San Vicente (95%) (3) Bolivia Proven 2.0 464 29.4 N/A 0.46 0.39 3.00
Probable 0.5 531 9.2 N/A 0.56 0.45 2.52
Total (4) Proven +
Probable
107.0 83 285.8 0.70 2,040.3 0.43 1.36 3.06
15 February 14, 2017
(1) Prices used to estimate mineral reserves for 2016 were $18.50 per ounce of silver, $1,300 per ounce of gold, $2,200 per tonne of zinc, $2,000 per tonne of
lead, and $5,000 per tonne of copper, except at Manantial Espejo where $17.00 per ounce of silver and $1,200 per ounce of gold were used for planned
2017 production, reverting to $18.50 per ounce of silver and $1,300 per ounce of gold thereafter. Metal prices used for La Bolsa were $14.00 per ounce of
silver and $825 per ounce of gold.
(2) Mineral reserve estimates were prepared under the supervision of, or were reviewed by, Christopher Emerson, FAusIMM, Vice President Business
Development and Geology and Martin G. Wafforn, P.Eng., Senior Vice President Technical Services and Process Optimization, each of whom are Qualified
Persons as that term is defined in National Instrument 43-101 (“NI 43-101).
(3) This information represents the portion of mineral reserves attributable to Pan American based on its ownership interest in the operating entity as indicated.
(4) Totals may not add up due to rounding.
18. Q&A
16
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19. Archive Webcast
17
The audio and presentation archive of this
conference call will be accessible on the Events
page of our website at:
www.panamericansilver.com/Investors/Events
February 14, 2017