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PAN AMERICAN SILVER - Q1 2021 NEWS RELEASE All amounts expressed in U.S. dollars unless otherwise indicated . Unaudited tabular amounts are in thousands of U.S. dollars except number of shares , options , warrants , and per share amounts , unless otherwise noted . Pan American Silver reports Q1 2021 results Vancouver , B.C. - May 12 , 2021 - Pan American Silver Corp. ( NASDAQ : PAAS ) ( TSX : PAAS ) ( " Pan American " or the " Company " ) today reported unaudited results for the quarter ended March 31 , 2021 ( " Q1 2021 " ) . Pan American's unaudited condensed interim consolidated financial statements ( " financial statements " ) , as well as Pan American's management's discussion and analysis ( " MD & A " ) for the three months ended March 31 , 2021 , are available on Pan American's website at panamericansilver.com and on SEDAR at www.sedar.com . " Q1 was a challenging quarter , as the COVID - 19 pandemic continues to grip Latin America , impacting our workforce , communities and operations . At La Colorada , we experienced large inventory build - ups and a blockage of a ventilation project that occurred during commissioning , which reduced Q1 sales and production . These are transitory issues expected to be resolved during the remainder of 2021 , with the roll - out of vaccination programs across our operating jurisdictions alleviating some of the impact of the pandemic , " said Michael Steinmann , President and Chief Executive Officer . " In Q1 , we also made large tax payments totaling $ 61.3 million . " " Concentrate inventories are back to normal levels at La Colorada , and we anticipate that the majority of the Q1 inventory build , which reduced operating cash flow by $ 39.9 million and resulted in lower revenue , will be mostly sold in the second quarter of 2021. At La Colorada , we are implementing a by - pass of the blockage in the ventilation raise , which should allow ventilation to improve and throughput rates to increase later in the year . We continue to expect annual production and cash flows to be back - end loaded in 2021 , " added Mr. Steinmann . Q1 2021 Highlights : • • A large inventory build impacted revenue , cash flows , and Silver Segment Cash Costs and All - in Sustaining Costs ( " AISC " ) . The inventory primarily related to a three - month build - up of concentrate production at La Colorada due to extended negotiations with a transport supplier and changes to smelting contracts . That inventory is expected to be sold and recognized in revenue over Q2 2021 and Q3 2021. In addition , a build- up in inventory occurred at Dolores from leach pad kinetics , which delayed production later into 2021 . Protocols to protect health and safety during the COVID - 19 pandemic reduce throughput rates across Pan American's operations , and have had a disproportionate impact on its La Colorada and Manantial Espejo operations , which contribute a significant portion of the Company's silver production . This is due to COVID - 19 related shortfalls in workforce deployments at these operations . Consolidated silver production of 4.6 million ounces primarily reflects reduced production at La Colorada and Dolores . In addition to the COVID - 19 related impact , noted above , at La Colorada , the bottom 42 metres of the new ventilation raise from surface to the 345 metre level became blocked from sloughing of the raise wall during shotcreting and commissioning in Q1 2021 , restricting mining rates . Pan American is currently working to bypass the blockage through drifting from a nearby ramp and additional raise boring . This work is expected to be completed in Q3 2021 , enabling mining rates to improve later this year . At Dolores , lower silver production reflects mine sequencing into higher gold grades and lower silver grades , as expected . Consolidated gold production of 137.6 thousand ounces reflects reduced production at Timmins where we adjusted mining to address geotechnical conditions in a section of the Bell Creek mine , and at Shahuindo from lower tonnes placed , grades and extraction rates due to mine sequencing . As expected , Dolores benefited from mine sequencing into higher gold grades , albeit at a lower ratio of ounces recovered to stacked due to temporary leach constraints during the current stage of pad construction . • Revenue of $ 368.1 million was impacted by the $ 39.9 million inventory increase noted above . • A Net loss of $ 7.6 million ( $ 0.04 basic loss per share ) was recorded , impacted by an investment loss of $ 39.0 million , primarily related to the mark - to - market fair - value adjustment of the Company's investment in New Pacific Metals . PAN AMERICAN SILVER CORP . 1