VANCOUVER, Jan. 22, 2013 /CNW/ - Pan American Silver Corp. ("Pan American" or the "Company") (NASDAQ: PAAS) (TSX: PAA) produced a record 6.9 million ounces of silver during the fourth quarter of 2012, propelling the Company to a new annual production record of 25.1 million ounces for the full year.
The Company also produced a record 32,381 ounces of gold during the fourth quarter of 2012, lifting annual gold production to112,283 ounces, also a new record.
Fourth Quarter 2012 Preliminary Unaudited Operational Highlights *
-- Record silver production of 6.9 million ounces, an increase of 30% over the fourth quarter of 2011
-- Record gold production of 32,381 ounces, an increase of 88% over the fourth quarter of 2011
-- Preliminary, consolidated cash costs of $11.75 per ounce of silver, net of by-product credits
2012 Full Year Preliminary Unaudited Operational Highlights *
-- Record silver production of 25.1 million ounces, an increase of 15% from 2011
-- Record gold production of 112,300 ounces, an increase of 43% from 2011
-- Preliminary consolidated cash costs of $12.03 per ounce of silver, net of by-product credits
Cash costs per ounce for both the quarter and full year have been estimated and could change based on final audited results.
Geoff Burns, President and CEO of Pan American commented, "2012 was an excellent production year for Pan American. We achieved our targets for silver production and cash costs during the fourth quarter and for the full year, and in the process we set new quarterly and annual production records for silver and gold.
In large part this was the result of the acquisition and integration of the
Dolores mine. However, we also saw both our La Colorada and San Vicente mines establish new annual silver production records. We are expecting 2013 to be even better, as we are forecasting increases in both our silver and gold production while our cash costs per ounce remain basically unchanged."
Pan American also produced 36,848 tonnes of zinc, 12,266 tonnes of lead and 4,162 tonnes of copper for the full year 2012.
2013 Operational Forecast
This year, Pan American expects to produce 25 to 26 million ounces of silver, an increase of up to one million ounces from 2012, while gold production is expected to climb to up to 34% to between 140,000 and 150,000 ounces. Cash costs are forecast at $11.80 to $12.80 per ounce of silver for 2013, net of by-product credits, which is comparable to 2012 actual results.
The Company anticipates similar levels of base metals production in 2013 at 36,000 to 39,600 tonnes of zinc, 11,500 to 12,500 tonnes of lead, and 3,500 to 4,000 tonnes of copper.
Capital investments in 2013 are expected to total $157 million. The Dolores mine, where several major projects are planned, will require approximately $68 million. Dolores' capital projects include; the construction of the first phase of leach pad 3, significant pre-stripping and the systematic rehabilitation of the mining fleet. The Company also plans to invest $15 million at La Colorada, $7.5 million at Alamo Dorado, $20 million at Huaron, $15 million at Morococha, $11.5 million at San Vicente, and $20 million at Manantial Espejo.
About Pan American Silver
Pan American Silver's mission is to be the world's pre-eminent silver producer, with a reputation for excellence in discovery, engineering, innovation and sustainable development. The Company has seven operating mines in Mexico, Peru, Argentina and Bolivia, including the recently acquired Dolores gold/silver mine in Chihuahua, Mexico. Pan American also owns the La Virginia development project in Sonora, Mexico, the Waterloo silver project in California, USA as well as both the Navidad silver project and Calcatreu gold project in Argentina.
SOURCE Pan American Silver Corp.