Pan American Silver (NASDAQ: PAAS) reported Q1 EPS of ($0.04), $0.17 worse than the analyst estimate of $0.13. Revenue for the quarter came in at $358.4 million versus the consensus estimate of $373.18 million.

Q1 2020 Highlights:

• Revenue was $358.4 million, which reflects the strong contribution from the Gold Segment mines with consolidated gold production totaling 156.1 thousand ounces and an average realized price of $1,580 per ounce.
• Silver production of 5.6 million ounces primarily reflects the suspensions of the Huaron, Morococha, Manantial Espejo and San Vicente operations and the failure of an underground ventilation circuit at the La Colorada operation. The Company is currently deploying an upgrade of the mine ventilation system to re-establish access to a high-grade zone within the La Colorada mine.
• Net cash generated from operations was $114.1 million, reflecting strong operating earnings from the Gold Segment mines.
• A net loss of $77.2 million ($0.37 basic loss per share) reflects: a tax expense of $52.7 million, primarily driven by non-cash devaluations of certain tax assets denominated in foreign currencies; a $28.3 million investment loss, primarily from non-cash unrealized mark to market adjustments on the Company's equity interest in New Pacific Metals Corp.; $16.0 million in care and maintenance costs; and, $8.8 million in mostly non-cash losses on foreign currency contracts.
• An adjusted loss of $7.6 million ($0.04 basic adjusted loss per share) was recorded, which includes $28.3 million ($0.13 per share) of non-cash, unrealized mark-to-market investment losses in our equity interests.
• Silver Segment Cash Costs and All-in Sustaining Costs ("AISC") were $8.18 and $15.26 per silver ounce sold, respectively.
• Gold Segment Cash Costs and AISC were $757 and $969 per gold ounce sold, respectively.
• Consolidated AISC, including gold by-product credits from the Gold Segment mines, were $3.49 per silver ounce sold.
• Project development expenditures of $8.7 million were directed at exploration drilling of the La Colorada skarn deposit, development advances on the COSE project, and expansion of the Bell Creek mine and plant at the Timmins operation.
• At March 31, 2020, the Company had cash and short-term investment balances of $239.2 million and working capital of $488.0 million. Total debt was $299.2 million (including $39.2 million of lease liabilities). During Q1 2020, the Company made a $15 million repayment of its four-year, $500 million Credit Facility, reducing the drawn amount at March 31, 2020, to $260 million.
• The Board of Directors has approved a cash dividend of $0.05 per common share, or approximately $10.5 million in aggregate cash dividends, payable on or about May 29, 2020, to holders of record of Pan American's common shares as of the close on May 19, 2020. Pan American's dividends are designated as eligible dividends for the purposes of the Income Tax Act (Canada). As is standard practice, the amounts and specific distribution dates of any future dividends will be evaluated and determined by the Board of Directors on an ongoing basis.

"The COVID-19 pandemic escalated quickly over Q1 2020. Pan American took immediate steps to protect the health and safety of our people, and mobilized our business continuity plans. We are also providing support to our local communities during this very difficult time. In addition to our existing community programs, we are donating $2 million in food and hygiene supplies, as well as facilitating access to health care," said Michael Steinmann, President and Chief Executive Officer.

Added Mr. Steinmann: "Cash flow generation of $114.1 million in Q1 reflects the Company's strong operating performance before the impact of the COVID-19 related mine suspensions. However, earnings in the period were significantly impacted by non-cash, mark-to-market investment losses and non-cash tax expense due to COVID-19 related currency devaluations. We have a strong balance sheet with approximately $479 million of total available liquidity, and we have taken steps to defer or reduce non-essential expenditures to preserve our financial strength. Many of the temporary COVID-19 related suspensions are now being lifted, and we are preparing to restart those operations. Profit margins should benefit from the improvement in gold prices combined with lower costs due to currency devaluations in our operating jurisdictions."

For earnings history and earnings-related data on Pan American Silver (PAAS) click here.