Pan American Silver Q2 Loss Widens - Quick Facts

(RTTNews) - Pan American Silver Corp. (PAAS, PAA.TO) reported a second-quarter net loss of $7.3 million, and $0.05 per basic share, compared to a net loss of $5.7 million, and $0.04 per basic share in the comparable quarter of 2014.

The net loss generated in the reporting quarter resulted primarily from lower mine operating earnings due to lower revenues, partially offset by lower production costs, lower income taxes, and gains on the sale of commodities contracts and derivatives. The net loss for the current quarter also included $1.5 million in net realizable value ("NRV") adjustments.

Adjusted loss per basic share was $0.07, compared to a loss of $0.01 per share in the previous year.

During the second quarter of 2015, Pan American generated $174.2 million in revenue, 13% less than in the comparable quarter of 2014. Lower revenue was due primarily to a marked decline in metal prices (with the exception of zinc), negative settlement adjustments on concentrate sales, lower quantities of zinc, lead and gold sold, and higher treatment and refining charges. These factors were partially offset by higher quantities of silver and copper sold and higher zinc prices.

Analysts polled by Thomson Reuters expected the company to report a loss of $0.09 per share and revenues of $178.73 million for the quarter. Analysts' estimates typically exclude special items.

During the second quarter of 2015 Pan American produced 6.65 million silver ounces and 44,400 gold ounces. Silver production was similar to the 6.56 million silver ounces produced a year ago as a 0.25 million ounce production decline at Alamo Dorado was offset by production increases at the Company's other mines. Gold production rose 18% from the second quarter of 2014, boosted by more ounces produced at Manantial Espejo and Dolores.

Pan American reaffirmed its annual precious metals production forecast of between 25.50 million and 26.50 million silver ounces, and between 165,000 ounces and 175,000 ounces of gold.

With the revised mine sequencing at Morococha, the Company increased the annual production forecast for copper in 2015 to between 14,000 to 15,000 tonnes, an 81% increase from the low end of the 8,000 to 8,500 tonnes originally forecasted for the year. Conversely, the Company is reducing its full year 2015 consolidated zinc and lead production forecast to 37,000 to 39,000 tonnes and 13,000 to 13,500 tonnes, respectively from 41,000 to 43,000 tonnes of zinc and 14,500 to 15,000 tonnes of lead.