On Wednesday, Shares of Pan American Silver Corp. (USA)(NASDAQ:PAAS), added -0.18% and closed at $16.77 in the last trading session. The last trading range of the stock ranges between $16.14 and $16.99. Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA) (“Pan American”, or the “Company”) recently stated unaudited results for the third quarter ended September 30, 2016 (“Q3 2016”). Net earnings were $43.4 million ($0.28 basic earnings per share) contrast with a net loss of $67.5 million ($0.44 basic net loss per share) recorded in the third quarter of 2015 (“Q3 2015”).
“Cash costs of $4.89 per payable ounce of silver in the third quarter assisted generate impressive mine operating earnings of $88.5 million – almost double the earnings generated last quarter,” said Michael Steinmann, President and Chief Executive Officer of the Company. “Cash flow from operations of over $102 million exceeded our funding requirements for our growth projects, sustaining capital and dividend, which facilitated us to reduce our modest debt and increase our cash and short term investment position to over $245 million. With an exceptionally strong balance sheet, we are well positioned to take advantage of growth opportunities, both within our suite of assets and outside our portfolio.” Highlights for the three and nine-month periods ended September 30, 2016:
Silver production in Q3 2016 was 6.36 million ounces contrast with 6.61 million ounces in Q3 2015. The decrease reflects anticipated production declines at Alamo Dorado, with the mine reaching the end of its life, and at Dolores because of lower grades from mine sequencing. The decreases at these mines were partially offset by higher silver production at La Colorada, Morococha and Huaron. For the nine-month period, silver production totaled 19.11 million ounces in 2016 contrast with 19.34 million ounces in the same period of 2015. Silver production in 2016 is pacing ahead of plan, and we are now raising our outlook for silver production in 2016 to 25.0 to 25.7 million ounces.
Gold production was 50.4 thousand ounces in the third quarter of 2016 and 140.0 thousand ounces in the nine-month period of 2016, in line with guidance.
Merged cash costs dropped 44% to $4.89 per payable ounce of silver in Q3 2016 contrast with Q3 2015. For the nine-month period, cash costs were $6.17 per ounce, down 38% from the same period of 2015. The reduction in costs reflects raised by-product credits, export incentives at Manantial Espejo, and lower direct operating costs. Given cash costs are below the low end of our guidance, we are reducing the estimate for 2016 merged cash costs to between $6.25 and $7.00 per ounce. This is the second reduction in the outlook for 2016 cash costs, representing a decline of 33% from original guidance.
McEwen Mining Inc (NYSE:MUX), dropped -6.35% and closed at $2.95 in the last trading session. The last trading range of the stock ranges between $2.83 and $3.16. The company’s Market capitalization is $973.20 million with the total Outstanding Shares of 299.53 Billion. McEwen Mining Inc. (MUX) (MUX) is happy to declare the appointment of Xavier Ochoa to President and Chief Operating Officer (“COO”). Xavier joined the Company this past September, 2016 as McEwen Mining’s COO (see news release dated September 9, 2016).
The change in administration represents a noteworthystep towards reaching our operational aims and further advancing our portfolio of projects. Xavier brings over 25 years of international experience in the mining industry, counting senior administration positions where he was instrumental for leading project and operational teams, both underground and open pit.
In Mexico, we have an extensive land package with numerous small scale historic areas of mine production throughout the property package. A new geological interpretation making use of advanced geophysics and information collected from exploration work has been developed for our El Gallo property which confirms the geological potential. Recent work has demonstrated encouraging results at the El Encuentro – La Revancha Zone (see news release dated October 13, 2016). The Company has recently begun to demonstrate the prospective nature and potential longevity of mining within the El Gallo District. Under Xavier’s direction, we will continue to implement this program with the aim of extending the mine life at El Gallo Complex.
At the El Gallo Silver Project we are revisiting the project and conducting new studies to improve the project economics in light of current silver prices and our ongoing exploration program on the El Gallo District.