Earnings Labs

Pan American Silver Corp. (PAAS)

Q3 2022 Earnings Call· Fri, Oct 28, 2022

$52.22

-5.45%

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Transcript

Operator

Operator

All participants, please stand by, your conference is ready to begin. Thank you all for joining us this morning. Before I turn the call over, I need to advise that certain statements made during this call today may contain forward-looking information and actual results could differ from the conclusions or projections in that forward-looking information, which include but are not limited to statements with respect to the estimation of mineral reserves and resources, the timing and amount of estimated future production, cost of production, capital expenditures, future metal prices and the cost and timing of the development of new projects. For a complete discussion of the risks, uncertainties and factors which may lead to actual financial results and performance being different from the estimates contained in the forward-looking statements. Please refer to Yamana’s press release issued yesterday announcing third quarter 2022 results as well as the management's discussion and analysis for the same period and other regulatory filings in Canada and the United States. I would like to remind everyone that this conference call is being recorded and will be available for replay today at 12:00 PM Eastern Time. Replay information and the presentation slides accompanying this conference call and webcast are available on Yamana’s website at yamana.com. I will now turn the call over to Mr. Daniel Racine, President and CEO.

Daniel Racine

Management

Thank you, operator. Thank you all for joining us and welcome to our Third Quarter 2022 Conference Call and Webcast. Presenting with me today is Peter Marrone, our Executive Chairman. Jason is here with the rest of our senior management and they will be available to answer a question during the Q&A portion of the call. As usual, I will start with a few words on health, safety and sustainable development. The health and safety of our employees always come first. Our total recordable injury rate was 0.85 for the first nine month of 2022. And I would like to thank all our employees for remaining focused and committed to our safety values. Despite our excellent track record, this is something we are always working on improving and getting better at. The company continues the implementation of its climate action strategy during the quarter, including work on assisting our Scope 3 emission and evaluation of the establishment of an internal carbon price. Yamana has a long history of prioritizing the health and safety of its people, protecting the environment and the communities where we operate. And we are committed to continuing to improve our responsible development strategy. Giving our focus on ESG, I'm very pleased to highlight that we have recently received updated performance rating from three major ESG research and rating organization with ratings improvement reflecting continued progress in the company's deep commitment to ESG excellence. The company's 2022 S&P Corporate Sustainability Assessment score increased from 48 to 50. Its MSCI rating improved from BBB to A and our Sustainalytics score improved to 21.2 from 24.7 where our lower score signify improved performance. Turning now to our third quarter highlights, we continued our track record of operation excellence and produce over 216,000 ounces of gold exceeding our plan for…

Peter Marrone

Management

Daniel, thank you very much. So just to recap, to begin, we have an all share offer by Gold Fields under a plan of arrangement under Canadian law at an exchange ratio of 0.6 Gold Fields shares for each Yamana share. The consideration represents a premium of just under 42% to the unaffected pre-announcement closing price or just over 30% on the weighted average on an weighted average price basis. Yamana shareholders alone as a result of this transaction about 39% of the combined company, which is in line with the respective net asset value contributions are brought to bear by each companies – each company. The management information circular relating to the meeting and proxy materials in connection with that special meeting of shareholders have been filed and are publicly available. The Yamana Board has set the close of business on October 18 as the record date for determining the Yamana shareholders who are eligible to receive notice of and to vote at that special meeting. And in addition to public filing of the information circular, the materials are currently being mailed to Yamana shareholders of record on the – that record date of October 18. The Yamana special meeting will be held at 10:00 a.m. that’s Toronto time on November 21 subject to any adjournment or postponement of that meeting, the meeting will be held at the Design Exchange in the Toronto-Dominion Centre, 234 Bay Street in Toronto. And will be broadcast online at the website noted below with a password as identified. Let me comment for a moment on certain points, much has been said about the deal, the result of which may have cast some doubt and we would like to address those points and those doubts for the benefit of our shareholders and other listeners.…

Daniel Racine

Management

Thank you very much Peter. We’ll open for question. Operator?

Operator

Operator

Thank you. [Operator Instructions] And there are no questions registered at this time. So I’ll turn the meeting back over to Mr. Racine. : :

Daniel Racine

Management

Thanks, operator. I’m happy that we were very clear with our presentation this morning. Please all note that we are planning to release an exploration update on November 9 on our mines and our project. Thank you all for joining our third quarter conference call and webcast. Please take care and be safe. Bye for now.

Operator

Operator

Thank you. The conference has now ended. Please disconnect your lines at this time. And we thank you for your participation.