PAN AMERICAN FIRST QUARTER RESULTS + Nice Outlookhttps://www.panamericansilver.com/documents/2009-NR-016-05_12-PAAS_Q1_Results_FINALFORPUBLICATION.pdf
Outlook
Pan American expects to deliver continued production growth and generate positive cash flow
and earnings in 2009 and beyond. Prices of silver and gold have improved as they occupy their
traditional status as a “safe haven” amid turbulent market conditions. With Manantial Espejo
now in commercial production and the San Vicente expansion being commissioned, the
Company has significantly increased its exposure to precious metals.
The Company will continue with the cost reductions programs implemented in late 2008, which
significantly reduced Pan American’s capital and operating expenditures. Results from the first
quarter have clearly shown the positive impact that these measures have had on profitability and
overall financial performance.
Looking to augment its growth pipeline, in April the Company announced an agreement with
Orko Silver Corp. (“Orko”) to jointly develop Orko’s La Preciosa silver project in Durango,
Mexico. Pan American will contribute its demonstrated expertise in mine development, plus
100% of the funds necessary to develop the property into a mine in order to gain a 55% interest
in the joint venture.
Commenting on today’s news release, Geoff Burns said: “With no debt, our major capital
expenditures now behind us and our liquidity bolstered by February’s equity issue, we are well
positioned to capitalize on new opportunities.”
Mr. Burns added: “I am also very excited to be
partnering with Orko Silver in the joint development of La Preciosa in Mexico. The La Preciosa
silver project already hosts a large silver resource and it is at an ideal stage to take the next
steps toward future production. We have begun re-deploying our mine development team and
look forward to creating some real value and growth for both Pan American’s and Orko’s
shareholders.”