Since its inception in 1994, Pan American Silver has grown to become the world’s second-largest primary silver producer. In 2010, Pan American produced a record 24.3 million ounces of silver and generated record sales of $632 million, record net income of approximately $113 million and record cash flow from operations of $242.3 million. On the back of record financial results, Pan American ended 2010 with over $360 million in cash and short-term investments and working capital of $434 million.
Also in 2010, Pan American adopted a quarterly dividend policy and began returning cash to its shareholders on a regular basis. Our current cash distribution policy is not just a way to reward investors for their continued support, but also an expression of management’s confidence in our ability to generate healthy financial returns without jeopardizing our capacity to fund our next leg of growth.
In the current metal prices environment, we continue generating outstanding cash flows and net income. Investors looking for quality silver equities should consider Pan American Silver’s solid balance sheet, un-hedged exposure to silver and gold, long-life proven and probable silver reserves, diversified geopolitical risk in Latin America, proven management team with experience in mine development and operation, and unmatched growth profile.