Pan American Silver Corp.

Thank you for standing by. This is the conference operator. Welcome to the Pan American Silver fourth quarter and full year end 2025 results conference call. As a reminder, all participants are in a listen-only mode. The conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star and then one on your telephone keypads. Should you need assistance during the conference call, you may reach an operator by pressing star and zero. This time, I'd like to turn the conference call over to Sirin Pasecki, Vice President, Buster Relations. Please go ahead, ma'am.

Thank you for joining us today for Pan American Silver's conference call and webcast to discuss our fourth quarter and full year 2025 results. This call includes forward-looking statements and information and references non-GAAP measures. Please see the cautionary statements in our MD&A news release and presentation slides for the period ended December 31st, 2025, all of which are available on our website. I'll now turn the call over to Michael Steinman, Pan American's president and CEO.

Good morning, everyone. I'm glad you could join us to discuss Pan American's 2025 results and our outlook for 2026. I'll start with the headline. We delivered record financial results across the board in Q4 and for the full year 2025, reflecting strong execution of our business and meaningful margin expansion from higher metal prices. Net earnings were a record $452 million in Q4, or $1.07 per basic share, which included $61 million of income from our investment in Huani CPO, For the full year, net earnings were a record $980 million, or $2.56 per basic share. On an adjusted basis, earnings were $470 million in Q4, or $1.11 per share. And for the full year, $959 million, or $2.54 per share. The record financial results reflect both the operating strength of our assets and the leverage we have to metal prices. Importantly, that translates into record attributable free cash flow of $553 million in Q4 and $1.2 billion for the full year. Cash and short-term investments increased by $408 million from Q3, totaling $1.3 billion at year-end, or $1.4 billion, including our 44% interest in cash at 20 CPO. To allow shareholders to participate directly in rising net cash levels, we declared a dividend of 18 cents per common share, our third dividend increase in a row. Turning to operating performance. Attributable silver production of 22.8 million ounces in 2025 exceeded the top end of the guidance range we have increased in November, while attributable gold production of 742,200 ounces was within guidance. Silver segment all-in sustaining costs excluding NRV inventory adjustments were $9.51 per ounce in Q4, and $13.88 per ounce for the full year. Silver all-in sustaining costs in 2025 were below the decreased guidance. A key contributor here is Guanescipio, which has been performing better than expected since we acquired the mine in September 2025 through the MAC silver transaction. For the gold segment, all-in sustaining costs excluding NRV inventory adjustments were $1,699 per ounce in Q4 and $1,621 per ounce for the full year, which was within our guidance for 2025. It's worth noting that both silver and gold segment costs in Q4 were impacted by higher royalties and worker participation expenditures, reflecting the increase in metal prices. The silver segment, is also affected by additional royalties at La Corada related to mining and adjacent concession, where we pay the concession owner a share of net profits earned on ores from their concession, which we treat as a royalty expense. Royalties are also impacted at San Vicente to reflect profit sharing with the state-owned mining company Commibor. In 2025, we make good progress on our major projects investing $94 million in line with our guidance to advance several major projects. Most notably, at La Glorada, where the discovery of multiple high-grade silver zones and the subsequent expansion of mineral resources have led us to re-evaluate the development plans for the SCARN project. We now see an opportunity to integrate the mine plans and infrastructure of the La Glorada vein mine with the SCARN project to a phased approach to development. The phased approach would allow us to focus on higher-grade, lower-tonnage, and less capital-intensive initial stage with the option to target lower-grade material in a future expansion. We are aiming to release an updated technical report for LaGuardia in the second quarter of 2026 to include a preliminary economic assessment of the new development approach for this current project. There are also continuing discussions with our potential partners on this project to include the proposed changes. At Jacobina, our investment in 2025 were directed at strengthening operational reliability and to advance long-term growth initiatives. We have provided more details on these initiatives in our MD&A, so I won't run through them item by item. But at high level, they include plant upgrades, tailings filtration, and filter stack and paste backfill plant. At Escobar, the Guatemalan Ministry of Energy and Mines continued meetings in Q4 2025 to advance the ILO 169 consultation process. And in December 2025, posted an update on progress for the October 2024 to November 2025 period. The Ministry also conducted an inspection in Q4 and confirmed our activities are compliant with the court order and suspension of operations. As we have said previously, there is no timeline for completion of the consultation process and no date for restart. Turning to 2026 guidance. For silver, we are guiding attributable production of 25 to 27 million ounces and silver segment all in sustaining costs of $15.75 to $18.25 per ounce. The year-over-year increase in silver production reflects, in part, the full year contribution from Juanis Cipio, along with mine sequencing into higher silver grade at Cerro Moro. For gold, we are guiding attributable production of 700,000 to 750,000 ounces, and gold segment all-in sustaining costs of $1,700 to $1,850 per ounce. We expect higher-grade attainments, plus a full year of production from Juanisipio, offset by a lower contribution from Dolores as residual leaching declines, and at El Peñon from the exhaustion of low-grade stockpiles and lower ore tons processed. Our all-in-sustaining cost guidance for both the silver and gold segments reflects higher metal price assumptions, which flow through to royalties, worker participation payments, and increased smelting and refining costs due to price participation. Needless to say, increased metal prices far outweigh these additional royalties and provide superior return to our business, as seen with record earnings and cash flow in Q4. Sustaining capital is expected to be similar to 2025, with the addition of capital for Juanisipio. We also plan increased project capital to advance La Corada's Carn and Chaco Vina, and at Timmins, with part of the increase directed towards satellite deposits reflecting positive drill results and continued work on exploration and preliminary engineering. Please refer to our MD&A for further detail on our 2026 outlook, including an operating outlook by quarter. As we look ahead, we see several meaningful catalysts for 2026. First, with metal prices currently well above Q4 and last year's average, we see potential for strong free cash flow and high returns of capital to shareholders, while also funding an expanded exploration program, internal growth projects, and further strengthening of our balance sheet. Second, we expect to release an updated LaGuardia SCARN PA in Q2, 2026, which we believe will demonstrate higher risk-adjusted returns than the original PA for the project. And third, the Jacobino optimization study is advancing well, and we look forward to sharing findings and opportunities as the engineering work progresses. Before I wrap up my prepared remarks, I would like to provide a few thoughts on the metal price environment. This is an exceptionally fortunate period for Pan American Silver and our investors, as the increase in metal price coincides with increased silver production, driving higher levels of free cash flow. Gold's strength has been driven by sustained central bank purchases and renewed investor interest named volatile geopolitical backdrop, U.S. policy uncertainty, and weakening confidence in fiat currencies, particularly the U.S. dollar. Those underlying drivers are similarly supportive for silver, in addition to supply-demand fundamentals, with the silver market expected to remain in a deficit for the sixth consecutive year in 2026. We are well positioned in this environment, remaining unhatched on both gold and silver, and with a focus on delivering margin expansion. To close, 2025 was a record year for Pan American, record revenue, earnings, and free cash flow, paired with strong operating execution and a stronger balance sheet. We are entering 2026 from a position of strength with a clear plan, execute safely and reliably, generate strong cash flow, advance our high-quality growth pipeline, and return capital to shareholders in a disciplined way. And with that, I'd like to open the call for questions.