The Company’s authorized share capital consists of 200,000,000 common shares without par value. The holders of common shares are entitled to: (i) one vote per common share at all meetings of shareholders; (ii) receive dividends as and when declared by the directors of the Company; and (iii) receive a pro rata share of the assets of the Company available for distribution to the shareholders in the event of liquidation, dissolution or winding-up of the Company. There are no pre-emptive, conversion or redemption rights attached to the common shares.
At September 30, 2011 the company has 106.9m shares outstanding.
Shares of Pan American Silver trade on:
Our shares form part of the S&P/TSX Composite Index, S&P/TSX Small Cap Index, and S&P/TSX Capped Materials Index. We are also the only silver mining company to trade on the prestigious Philadelphia Gold and Silver Index, known as the XAU.
Percentages vary as shares of Pan American Silver are traded on NASDAQ and the TSX. Typically, Pan American Silver’s ownership is:
Pan American Silver cannot sell shares directly to the public. If you wish to purchase Pan American Silver shares, please contact your financial advisor or stock broker, who will be able to inform you how to purchase Pan American shares in the open market.
As approved by Pan American Silver’s Board of Directors in February 2010, the Company distributes dividends to holders of its common shares on a quarterly basis. In 2012, Pan American Silver distributed a total of $24.9 million in dividends to holders of common shares and in February 2013, the Company raised its quarterly cash dividend to $0.125 per share. Specific dates and amounts of future dividends will be determined by the Board on an ongoing basis.
Please refer to the “Analyst Coverage” page in the “Investors” section of our website for a list of analysts and institutions currently covering our Company.
Like many precious metals producers, Pan American Silver uses methods established by The Gold Institute (Production Cost Standards, Nov. 1999) to calculate costs per ounce of silver produced at mine operations. All of our operations are “primary” silver mines, meaning that the majority of their revenues come from silver and the rest come from by-product metals.
The “cash costs per ounce” of silver for each mine are based on the ounces of silver for which we are paid, which excludes the ounces lost in smelting and refining. Cash costs are also “net of by-product credits”, which means that revenues from products other than silver – like gold, zinc, lead and copper – are used to offset the cost of producing each ounce of silver.
A detailed reconciliation of cash costs and total costs per ounce to the Company’s cost of sales can be found in the Company’s latest Consolidated Statement of Operations, which can be found in the latest MD&A.
The word “leverage” is used in the metals industry as a measure of a company’s exposure to a metal. For instance, our Manantial Espejo mine is a co-product silver producer; meaning that most of the economic value from the mine comes from two metals, silver and gold. Because of silver’s geologic mode of occurrence, there are very few, if any, pure silver mines, ones from which no economic value is gained from the production of other metals. In 2011, we expect that our leverage to silver will be one of the highest in the industry at approximately 66%.
With the addition of the Manantial Espejo mine, Pan American’s leverage to gold has also increased significantly and we expect that in 2011, 13% of our revenues will come from gold and 79% from gold and silver.
Pan American Silver takes the view that its precious metals production should not be hedged, thereby allowing the Company to maintain maximum exposure to precious metal prices. However, in times of extreme price volatility or deteriorating market conditions, the Board of Directors may make exceptions to this approach and authorize Management to enter short-duration hedging for a limited portion of the Company’s forecasted production of precious metals, in order to protect the Company’s margins at its higher cost operations. Based on market conditions, from time to time Pan American mitigates the risks associated with our base metals production by committing some of our forecasted production under forward sales or option contracts. At any given time, the Company may have approximately 25% of its forecasted base metals production under such contracts.
Every exploration project will define first Mineral Resources, which are categorized into Inferred, Indicated and Measured Resources with increasing geological information and confidence. Mineral Resources have not proven their feasible economic extraction yet. Mineral Reserves are the economically mineable part of a Measured or Indicated Mineral Resource, demonstrated by at least a Preliminary Feasibility Study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors to demonstrate, at the time of reporting, that economic extraction can be justified.
Pan American Silver cannot provide shareholders with information regarding their holdings, or copies of share certificates. To obtain such information or documents, please contact your stock broker or contact our Registrar and Transfer Agent:
Computershare Trust Company of Canada
400-510 Burrard Street
Vancouver, British Columbia
Canada V6C 3B9
Pan American Silver’s operations produce silver-bearing base metals concentrates and silver doré bars. Concentrates are sold in the international market to smelters and traders, while silver doré bars are sent to refineries for further processing, after which refined silver and gold is sold in the wholesale markets to banks and traders.
Pan American Silver does not have the infrastructure, or the logistical capacity to produce retail products such as silver coins and bars for retail sale. Investors looking for Pan American Silver coins and bars can purchase them from the Northwest Territorial Mint. A link to the Northwest Territorial Mint’s order form can be found at the top of our website’s home page at www.panamericansilver.com
NOTE: Please note that Pan American Silver does not have any economic or ownership interest in the Northwest Territorial Mint.
There are several compelling reasons to invest in silver. Silver is a precious metal and as such has served as a store of value against monetary devaluation since ancient times. This quality was once again evidenced during the world financial crisis that started in late 2008 and continues to affect several European countries and the US. In this environment, investment demand for silver has multiplied and continues to be the most important driving force behind the surge in silver prices. According to Goldfields Mineral Services, combined ETF holdings grew an impressive 125% in value during 2010 and although silver has continued to appreciate in the first half of 2011, investment demand remains strong.
Silver is also an industrial metal which possesses a number of qualities that make it ideal for a wide range of traditional industrial applications. For example, silver is an excellent thermal and electrical conductor used in electronic devices, a reflective agent used as coating in optical data storage devices and mirrors, silver alloys are used as cathodes in both rechargeable and non-rechargeable batteries, and silver in mesh screens or crystals is used as a catalyst in numerous chemical reactions, among other traditional uses.
With the advent of new technologies the use of silver in environmentally-friendly applications keeps growing. Due to its bactericidal and anti-microbial properties silver is used for medicinal purposes in bandages and dressings, as well as in cleansing agents and water purifying solutions as a substitute of chlorine and other chemicals. But perhaps one of silver’s fastest growing industrial applications is in solar panels, due to its superior conductive properties. Silver is used; in 90% of all crystalline silicon photovoltaic cells. In 2010, silver demand in the production of photo voltaic cells soared by over 70% to reach a record 50 million ounces.
A PDF copy of our latest annual report can be obtained from the “Investors” section of our website. We encourage investors and the general public to reduce waste and to obtain electronic copies of our annual and quarterly reports to shareholders from the investors section of our website at www.panamericansilver.com
Hard copies are printed in March and are available only as long as quantities last. If you wish to receive a copy of our latest annual report, or an investor package, please send us an email with your mailing address and your contact information, including your email address and phone number, to: [email protected]
Pursuant to the acquisition of Aquiline Resources Inc., under the Share Offer, Pan American Silver offered to purchase all of the outstanding Aquiline Shares on the basis of 0.2495 of a Pan American share and 0.1 of a Pan American Consideration warrant for each Aquiline share.
Each whole Pan American consideration warrant will entitle the holder thereof to purchase one Pan American Share at the price of CDN $35.00 per Pan American Share for a period of five years from the initial Take-Up Date (December 7, 2009). All other terms and conditions of the Pan American Considerations Warrants shall be governed by the Warrant Indenture described in Section 9 of the Circular, “Certain Information Concerning Pan American and the Pan American Securities – Pan American American Consideration Warrants”. The Circular can be obtained from SEDAR at www.sedar.com