Pan American Silver’s plans for 2022

In 2022, Canadian mining company Pan American Silver expects to produce between 19.0 and 20.5 million ounces of silver and between 550,000 and 605,000 ounces of gold.

The company is engaged in the operation, development and exploration of silver and gold producing properties and assets.

Its main products are silver and gold, although it also produces and markets zinc, lead and copper.

Pan American Silver

US dollars.

As of year-end 2021, Pan American Silver operated mines and developed mining projects in Mexico, Peru, Canada, Argentina and Bolivia, and had control over non-producing silver assets in each of those jurisdictions, in addition to Guatemala and the United States.

In preparing this forecast, the company assumes, among other things, that operations will continue to be affected by its comprehensive Covid-19 protocols to protect health and safety, which increase costs and restrict production levels, especially at its mines. underground.

The impact of Covid-19 on its operations is expected to subside over the course of 2022; however, this may get better or worse relative to your assumptions, depending on new outbreaks, including those regarding variants of Covid-19, how each jurisdiction manages potential Covid-19 outbreaks, and the supply and effectiveness of the vaccines.

The Escobal mine is also supposed to remain in care and maintenance through 2022, as the Guatemalan Ministry of Energy and Mines conducts the court-ordered ILO 169 consultation process.

Pan American Silver

Additionally, the 2022 production forecast excludes the Morococha mine, which is expected to enter care and maintenance in early 2022 due to the decision to close and dismantle the mine’s processing plant in connection with the planned expansion of the mine. Toromocho open pit copper mine by Minera Chinalco. Peru (MCP).

In financial terms, Pan American Silver plans to incur project capital expenditures of approximately US$80.0 million to US$95.0 million, primarily related to the La Colorada skarn project for infill and exploration drilling, early stage engineering, completion of a technical and investment to advance in infrastructure in the longer term.

In addition, the project’s anticipated capital expenditures include approximately $12.0 million to $14.0 million related to the construction of a paste filling plant for Bell Creek.


The company expects to spend approximately $200.0 million to $210.0 million on sustaining capital in 2022, primarily on open-pit pre-stripping, leach pads and tailings storage facilities, exploration, site infrastructure, and mine equipment reconditioning and replacement. .

At the same time, exploration expenditures in 2022, including amounts to be expensed and capitalized, are expected to total approximately $42.0 million to $46.0 million, consisting of: (1) 12, 0 million to 13.0 million for 95,000 meters of near-mine brownfield exploration drilling for reserve replacement, which is included in the 2022 forecast underpinning capital expenditures; (2) $8.0 million to $9.0 million in new regional exploration in Peru, Mexico and Canada and corporate general expenses; and (3) $22.0 million to $24.0 million for 88,000 meters of project drilling at the La Colorada skarn discovery and Wetmore project, which is included in the project’s 2022 capex forecast.


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