Pan American Silver (
TSX: T.PAA,
Stock Forum), late Tuesday evening, reported that during the first quarter of 2012 it produced 5.5 million ounces of silver and 19,496 ounces of gold, which represented a year-on-year increase of 3% and 5%, respectively.
The silver miner said its revenue for the quarter rose 20% to $228.8 million, while net earnings fell to $50.2 million, or 47 cents per share, which the company attributed in part to $13.8 million worth of closing costs incurred for the acquisition of Minefinders, as well as $7.2 million spent in exploration and development activities.
Adjusted earnings for the first quarter were $61.4 million, or 58 cents per share, compared with adjusted earnings of $65.2 million, or 61 cents per share, during the same period last year. Consolidated cash costs for Q1 were $10.49 per ounce of silver, net of by-product credits.
"We've had an excellent start to 2012 and delivered a very respectable first quarter, on all metrics. Our consolidated silver production was right in line with our forecast and our cash costs were more than 15% less than we had anticipated,” said Pan American President and CEO Geoff Burns.
"With the acquisition (of Minefinders) and most of the integration activities now complete, we are concentrating on unlocking the outstanding exploration upside and expansion potential of the Dolores mine, as well as aggressively exploring the highly prospective La Virginia property also located in Mexico."
Pan American Silver added that it expects to produce 24.25 million to 25.5 million ounces of silver at cash costs of $11.50 to $12.50 per ounce through year-end 2012, as well as 124,000 to 133,000 ounces of gold.