2024 Outlook
Moving to Pan American's 2024 outlook, we can see that 2023 was a strong year for growth (albeit at a cost due to share dilution from the Yamana deal), but we will see further growth in 2024 with a full year of contribution from Cerro Moro, El Penon, Jacobina, and Minera Florida. In fact, these assets are expected to contribute over 500,000 ounces of gold and 7+ million ounces of silver at costs well below the legacy portfolio average.
That being said, the 2024 guidance midpoint came in below my expectations at 22 million ounces of silver at the midpoint (roughly in line with 2023 guidance despite a partial year from Yamana assets) and 940,000 ounces of gold at the midpoint which is barely up from the 2023 guidance midpoint. And while this is partially due to another soft year at La Colorada, investors will have to wait for 2025 to see meaningful free cash flow generation when factoring in the capex budget of $375 million to $395 million, with incremental expenditures on reclamation and care and maintenance.
https://seekingalpha.com/article/4666692-pan-american-silver-a-higher-cost-year-on-deck