PAN AMERN SILVER CORP earnings calls

Jacobina seismic effects on 2026 production

Q (Lawson Winder · Bank of America Merrill Lynch): He asked how Jacobina's production issues changed 2026 guidance and whether they affect sustaining about 200,000 ounces into 2027. He also asked if El Niño impacts were included in guidance and whether the plan to return up to $1 billion remains on track.

A: Management said the Jacobina seismic activity is ongoing but has not damaged infrastructure; they moved up plans for paste backfill and are leaving larger pillars short-term, which caused a guidance reduction of about 10,000 ounces this year. They said this is short-term and reserves extend 'way into the 2050s', and that El Niño impacts (mainly in Chile) are included in planning and mitigations. They confirmed the cash return plan remains in place, they returned $300 million this quarter and have bought 'Above 7 million' shares so far.

"I think we guided down about 10,000 ounces less production." — Michael Steinmann (CEO)

Jacobina mining method and expansion

Q (Wayne Lam · TD): He asked if a recent seismic event prompted a change in mining method at Jacobina and whether selective mining still allows future production scaling. He also asked about El Peñón's reserve continuity and the timing of the reserve update, plus Timmins' H2 production increase and ground condition status.

A: They said the Jacobina microseismic activity prompted a short-term precaution and accelerated work on optimization, but the mid- and long-term expansion potential is unchanged. They are studying plant revamp, filtered tailings and paste backfill, and may increase mill size though technical work is ongoing. For El Peñón, they will publish a midyear reserve update in early September and said some smaller, less-continuous structures were moved out of reserves, which shifted production toward higher silver and lower gold areas; at Timmins geotechnical seismicity has been quiet and paste backfill at Bell Creek is helping.

"we're going to put our reserve update out in early September for the midyear reserve." — Michael Steinmann (CEO)

Taxes, El Peñón grades, project capital timing

Q (Cosmos Chiu · CIBC): He asked why Q2 taxes were higher and whether a 37% tax rate is the new normal, and if higher metal prices could push taxes above guidance. He also asked whether El Peñón's secondary structures affect gold more than silver and about the timing of project capital spend catch-up.

A: Ignacio said the effective tax rate varies quarter-to-quarter and year-to-date it's in the low 30s, with Q2 in the high 30s driven by true-ups from prior quarters and a 2025 Q4 profitability spike; they guided taxes for the year to $585 million to $635 million and noted withholding taxes on repatriated cash add variability. Michael said some El Peñón secondary structures lacked continuity and were moved to resources pending more drilling, so they replaced that production with higher-silver, lower-gold material which kept silver guidance but lowered gold. On project capital, Scott said first-half timing lagged due to a national strike in Bolivia and contractor mobilization delays, but no projects were postponed and spending will pick up later in the year.

La Colorada royalties and credit facility

Q (Carey MacRury · Canaccord Genuity): He asked what to expect for royalties at La Colorada in the back half of the year and into 2027. He also asked why the company doubled its credit facility given strong cash and limited near-term capital needs.

A: Management said royalties were a bit higher in Q2 but will even out during the year, with a short-term shift in tonnage as they move back onto their own claims; they noted about 30% to 40% of production this year came from that adjacent ground and that will decline over time. Ignacio said the credit facility was increased to ensure financial flexibility while market conditions were favorable, so the undrawn line is available to react to opportunities. Michael added the company has liquidity of about $3.2 billion and is funding several large projects like La Colorada Skarn, Jacobina optimization and Timmins work.

"Generally, this is just to make sure that the company has the financial flexibility that we need." — Ignacio Couturier

Escobal visit, Jacobina CapEx, silver costs

Q (Don DeMarco · National Bank Financial): He asked whether the recent governmentofficials' visit to Escobal was the first and if there was a specific purpose. He also asked whether Jacobina needs extra preemptive CapEx beyond sustaining budgets and whether silver costs might rise in H2.

A: They said visits to Escobal by authorities and community representatives are routine, not a first time, and the mine is regularly shown to visitors. On Jacobina, they said the measurable impact is limited to the roughly 10,000 ounce production reduction and that additional capital for the paste backfill plant is in the engineering phase and will be disclosed when finalized. On silver costs, they said quarter-to-quarter variability is driven by metal prices, byproduct credits and foreign exchange, so they are keeping guidance for now and will update in Q3.

"Obviously, we are working on that optimization study and the additional capital that will be required for plant, paste backfill plant." — Michael Steinmann (CEO)

Escobal community issues and update timing

Q (Lawson Winder · Bank of America Merrill Lynch): He asked whether government support for mining in Guatemala has strengthened and whether Escobal has programs like Era Dorada's water purification that build community support. He also asked for finer timing on the reserve, resource and exploration update.

A: Management said you cannot draw direct conclusions from other projects because each Guatemalan project has different community realities; the main discussion topics at Escobal are typical mining issues like water, dust, vibration from blasting and tailings. They confirmed the reserve/resource and exploration update will be a September event, early September, and is a few weeks away.

"It will be a September event, early September, but yes, just a few weeks away." — Michael Steinmann (CEO)