Canada-based, Latin America-focused Pan American Silver has reported record free cash flow for the fourth quarter and full year of 2024, supported by strong metal prices, expanding margins, and solid operating performance. 

The company generated $196.2-million in free cash flow during the fourth quarter, bringing total free cash flow for the year to $445.1-million.

Silver production for the quarter amounted to six-million ounces, while full-year silver production stood at 21.1-million ounces, aligning with the company’s 2024 guidance. 

Gold production reached 224 200 oz in the fourth quarter, contributing to a record yearly production of 892 500 oz. The fourth-quarter figures exclude December production from the La Arena mine, which was sold on December 2.

Pan American recorded revenue of $815.1-million in the fourth quarter and $2.8-billion for the full year. Net earnings for the quarter totalled $107.8-million, or $0.30 a share, while full-year net earnings were $112.7-million, or $0.31 a share. Adjusted earnings for the quarter were $126.9-million, with full-year adjusted earnings reaching $286.7-million.

Cash flow from operating activities was reported at $274.1-million for the quarter and $724.1-million for the year. The company ended 2024 with a strong financial position, holding $1.6-billion in total available liquidity, including $887.3-million in cash and short-term investments and $750-million available under its revolving credit facility. Total debt stood at $803.3-million.

Pan American’s silver segment cash costs for the fourth quarter were $14.06/oz, with full-year costs averaging $14.30/oz. All-in sustaining costs (AISC) for the silver segment, excluding net realizable value adjustments, were $19.88/oz in the fourth quarter and $18.98/oz for the year. While these costs slightly exceeded guidance, gold segment cash costs of $1 223/oz for the quarter and $1 203/oz for the year remained within guidance. Gold segment AISC, excluding adjustments, were $1 521/oz for the quarter and $1 501/oz for the year.

For 2025, Pan American expects silver production of between 20-million and 21-million ounces. Higher development rates at La Colorada and increased throughput at Huaron are expected to support production, while a decline at Dolores, owing to the cessation of active mining, will offset some gains. Gold production is forecast at between 735 000 oz and 800 000 oz, reflecting the sale of La Arena and the transition of Dolores to residual leaching.

Silver segment AISC is expected to range between $16.25/oz and $18.25/oz, benefiting from new ventilation infrastructure at La Colorada and higher gold by-product credits at Cerro Moro. However, additional payments for concessions at La Colorada and higher operating costs at Huaron are expected to provide some cost pressures. Gold segment AISC is forecast to be between $1 525/oz and $1 625/oz, with increased costs expected at Shahuindo owing to lower ore grades and deferred sustaining capital, while Timmins faces cost pressures from its new paste plant and inflation.

Both silver and gold production, along with lower AISC per ounce, are weighted towards the second half of 2025.