Heut nacht kam der Q-3-Bericht: Wenn ich das alles richtig interpretiere, dann ist PAA auf bestem Wege, ein noch größerer Silverplayer zu werden. Interessant auch die Meinung zu Bolivien. Viel Spaß beim Lesen! 1155 Pan American Silver Reports Q3 Results: Record Revenues & Net Income << (all amounts in US Dollars unless otherwise stated) CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS VANCOUVER, Nov. 2 /CNW/ - ------------------------------------------------------------------------- THIRD QUARTER HIGHLIGHTS ------------------------------------------------------------------------- - Record metal sales of $64.3 million, up 114% from $30.1 million in third quarter 2005. - Record net income of $16.4 million ($0.22/share), up from $0.2 million in Q3 2005. - Mine operating earnings of $29.2 million, a five-fold increase over Q3 2005. - Cash costs decrease 62% to $1.57 per ounce of silver as compared to Q3 2005. - Silver production of 3.2 million ounces. - Cash flow from operations of $15.8 million, an increase of $11.5 million over Q3 2005. - Construction of Alamo Dorado mine completed in October 2006. - Basic engineering at Manantial Espejo project completed, on schedule. - San Vicente mine began processing ore and selling concentrates. ------------------------------------------------------------------------- >> FINANCIAL RESULTS ----------------- Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) today reported record results for the third quarter ending September 30, 2006. Third quarter sales reached an all time high of $64.3 million, a 114% increase over the year earlier period. Consolidated net income for the quarter established a new Company record at $16.4 million, or $0.22 per share, as compared to $0.2 million, or $nil per share, in the third quarter of 2005. Net income for the third quarter of 2006 included an income tax provision of $8.4 million. Commenting on the quarter, Geoff Burns, President and CEO, said: "As forecast, Pan American Silver again delivered record results as we continue to benefit from strong silver and base metal prices and growing production profile." Mine operating earnings for the third quarter increased almost 500% to $29.2 million over the $5.0 million recorded in the year-earlier period. The increase is attributed to higher silver prices and higher revenues from base metal production, partially offset by increased operating costs resulting from increases in labour compensation, energy and fuel costs, as well as increased workers' participation costs in Peru. Operating cash flow in the quarter was $15.8 million compared to $4.2 million in the year-earlier period. Working capital at September 30, 2006 was $196.1 million, an increase of $7.1 million from June 30, 2006. The Company's cash flow from operations plus its liquid assets should be more than sufficient to fund all currently planned capital expenditures, including construction of the Manantial Espejo project and the expansion of the Morococha mine. Consolidated silver production for the third quarter totaled 3.2 million ounces, a slight increase over Q3 2005. The La Colorada mine continued to ramp up its rate of production during the third quarter, producing 13% more ounces of silver compared to the year earlier period. Processing of ore at the San Vicente mine commenced in August, which added modestly to the Company's third quarter silver production. Partially offsetting these increases in production were modest production declines at Quiruvilca and Morococha where, as expected, ore grades declined due to the planned extraction of lower grade ore during the quarter. Consolidated cash costs for the quarter were $1.57 per ounce compared to $4.15 per ounce for the year-earlier period. Byproduct base metal credits continued to have an extremely positive effect on the Company's cost to produce silver. Morococha was once again the Company's lowest cost mine, recording cash costs of negative $5.14 per ounce for the third quarter. Ross Beaty, Chairman, stated: "Pan American is thriving today with record financial results, our best balance sheet ever, a well-diversified base of six operating silver mines, one newly constructed mine and another project under development that will double our silver production by 2008. We are also actively exploring in many locations and I am confident that this will lead to great new silver growth opportunities for the long term." OPERATIONS AND PRODUCTION HIGHLIGHTS ------------------------------------ PERU The Morococha mine contributed 694,984 ounces of silver in the quarter at a cash cost of negative $5.14 per ounce. As anticipated, mill throughput increased steadily throughout the quarter, with the mill posting a new monthly tonnage record by processing just over 56,000 tonnes of ore in August. Production at the mine is expected to continue to increase as mill capacity is ramped up to 60,000 tonnes per month and rehabilitation of the tunnel access to the high grade Buenaventura ore block is completed. Silver production at the Quiruvilca mine was 489,972 ounces for the quarter, and year-to-date production continues to track projections. Cash costs per ounce of production remained extremely low at negative $0.39 per ounce, down from $3.55 per ounce in Q3 2005. Third quarter production at Huaron was 941,569 ounces of silver produced at cash costs of $2.32 per ounce as compared to 940,400 ounces at a cash cost of $5.13 per ounce recorded in the year earlier period. The sustained high production results from the mine are attributed to record mill throughput (offset slightly by lower grades and recovery) that is expected to continue through the balance of 2006 and into 2007. The Silver Stockpile operation produced 121,327 ounces of silver in the third quarter, which is lower than expected as a result of fewer tonnes being shipped at lower than expected grade. Year-to-date production nevertheless remains within budget and fourth quarter shipments are expected to increase. MEXICO The commissioning team at the Alamo Dorado mine was assembled in the third quarter and construction of the mine was completed on schedule in October 2006, with silver production set to commence in mid-November. By the end of the quarter, the primary crusher was operative and ore stockpiled ahead of the crusher totaled 345,000 tonnes. Construction expenditures were within 4% of the original budget, totaling approximately $79.9 million. Alamo Dorado is expected to produce an average of 5 million ounces of silver annually. The La Colorada mine notched another consecutive record producing quarter, with silver production increasing to 923,553 ounces, or 13% more than the year-earlier period. Cash costs increased slightly to $5.92 per ounce of silver, reflecting the fact that mining and processing from the sulphide zone has only reached 50% of planned capacity. Production from the oxide zone continued to meet quarterly and year-to-date forecasts, with slightly lower grades in the third quarter being offset by higher mill throughput and higher than expected recovery rates. By the end of 2006, the sulphide plant is expected to reach full capacity of 200 tonnes per day. ARGENTINA Basic engineering and plant design for the Manantial Espejo project was substantially completed in the third quarter and site construction planning commenced. Mining crews began ramp development at the Maria mine site area. By the end of the fourth quarter, all surface and underground mining equipment will be on site. Total project commitments at the end of the quarter totaled $7.0 million, primarily for the purchase of mobile equipment and for SAG and ball mill purchases. The project is scheduled to be completed in early 2008 and produce an average of 4.3 million ounces of silver and 62,000 ounces of gold annually. BOLIVIA Following recommencement of milling at the high grade silver-zinc San Vicente mine, the mine contributed a total of 55,370 ounces of silver in the third quarter from ore that had been mined and stockpiled throughout the second quarter. Cash costs per ounce of silver were significantly higher (at $8.09) than the Company's long-term expectations of $3.50 per ounce as a result of mill start-up costs, costs to warehouse ore not shipped, and higher silver prices which increased royalty payments owed to Comibol, Bolivia's national mining company. Feasibility analysis and engineering is continuing on a plan to expand mine production and build a new mill on the property. An investment decision is expected in early 2007 and will carefully take into consideration the political climate in Bolivia. The San Vicente mine today represents less than 2% of the book value of Pan American's consolidated operations. EXPLORATION ----------- By the end of the third quarter, the Company had more than 25 active drill rigs at existing operations, development projects and exploration sites. The more notable exploration results came from the Huaron and La Colorada mines. At Huaron, a total of 24 holes were drilled on site throughout the quarter. Very positive results were obtained at the 250 level, where high grade silver and base metal intersects were found. At La Colorada, exploration in the third quarter continued to focus on delineation of the new Amolillo vein and Recompensa structure to expand reserves and resources in the area. Primarily as a result of development of the Amolillo deposit, the Company expects to more than replace all reserves mined in 2006. In the third quarter, the Company set up an exploration office in Ecuador as it initiated exploration efforts within that country. SILVER MARKETS -------------- The price of silver steadily increased through the first two months of the quarter, reaching a high of $13.50 (London fix) per ounce on September 5, then dropping to a low of $10.70 per ounce in mid-September, only to rebound somewhat by the end of the month to close to the average price for the quarter of approximately $11.70 per ounce. Investment demand for silver remained strong throughout the third quarter, as evidenced by holdings in the silver exchange traded fund ("ETF"), which, by the end of the quarter, reached approximately 105 million ounces of physical silver. To meet this rising demand, the administrators of the ETF, on September 27, filed for registration with the SEC of 15 million additional shares, enabling purchase by the ETF of 150 million additional ounces of physical silver. Physical interest in the Pan American Silver line of bullion products continues to remain high, as indicated by the sale of the 1,000,000th ounce of silver by the Northwest Territorial Mint in the third quarter and by the strong demand for the Company's new 100-ounce silver bar. All Pan American Silver products are available directly through the mint's website (http://www.silverpa.com). Pan American will host a conference call to discuss its financial and operating results on Friday, November 3, 2006 at 7:00 am PST (10:00 am EST). North American participants please dial toll-free 1-888-694-4728 and international participants please dial 1-973-582-2745. The call may also be accessed from the home page of the Company's website at http://www.panamericansilver.com. The call will be available for replay for one week after the call by dialing 1-877-519-4471 (for North American callers) and 1- 973-341-3080 (for international callers) and using the replay pin number 7953226.
