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 March 31, 2014 the company has 151.5m 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. At June 2014, Pan American’s approximate ownership distribution per category 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.
Since February 2010, the Company distributes cash dividends to holders of its common shares. Pan American’s dividends are currently paid on a quarterly basis and the dates and amounts of the distributions are determined by the Board and communicated to the market on an ongoing basis as they are approved. In 2013, Pan American Silver distributed a total of $75.8 million in dividends to holders of common shares at a rate of $0.125 per share, per quarter.
Please refer to http://www.panamericansilver.com/investors/analyst-coverage/ 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) and endorsed by the Silver Institute, 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.
We believe that AISCSOS is a more comprehensive measure of the cost of operating our consolidated business than traditional cash and total costs per ounce, as it includes the cost of replacing ounces through exploration, the cost of ongoing capital investments (sustaining capital), general and administrative expenses, as well as other items that affect the Company’s consolidated earnings and cash flow.
A detailed reconciliation of cash costs, total costs per ounce and AISCSOS can be found in the Company’s latest Consolidated Statement of Operations, in the 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 2013, our leverage to silver was one of the highest in the industry at approximately 64%. In addition, we derived 21% of our revenues from gold, bringing our total exposure to precious metals up to 85%.
In 2014, we expect our silver production to be in the order of 25.75 Moz to 26.75 Moz, while our gold production is expected to increase significantly too 155 Koz to 165 Koz. As a consequence, we expect a great increase in our exposure to precious metals, in particular to gold.
Pan American believes 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. At present, the Company does not have any forward contracts on any portion of its precious metals production and it does not intend to enter into any 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.
NOTE: Please note that Pan American Silver does not have any economic or ownership interest in the Northwest Territorial Mint.
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. (2009), under the Share Offer, Pan American 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 Consideration Warrants”. The Circular can be obtained from SEDAR at www.sedar.com
The warrants do not trade on any exchange and the terms of the warrants have not been changed since they were issued.