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PAN AMERICAN SILVER Q2 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 net income of $ 0.34 per share in Q2 2021 and increases quarterly dividend by 43 % to $ 0.10 per common share Vancouver , B.C. - August 10 , 2021 - Pan American Silver Corp. ( NASDAQ : PAAS ) ( TSX : PAAS ) ( " Pan American " or the " Company " ) today reported unaudited results for the quarter ended June 30 , 2021 ( " Q2 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 and six months ended June 30 , 2021 , are available on Pan American's website at panamericansilver.com and on SEDAR at www.sedar.com . " Strong mine operating earnings of $ 103 million and strong operating cash flow in Q2 have further improved our financial position . Together with the sale of non - core assets , our cash and short - term investments increased by $ 34 million in Q2 , " said Michael Steinmann , President and Chief Executive Officer . " We expect cash flows to further improve in the second half of the year , with the anticipated rise in throughput rates at La Colorada along with the normalization of inventory levels that were built up during the first half of 2021. Based on our strong financial position and our expectation for improving free cash flow over the remainder of the year , we are increasing the quarterly dividend to $ 0.10 per common share . This marks the third dividend hike in the past 18 months . " Added Mr. Steinmann : " At La Colorada , we have now restored ventilation in the high - grade area of the mine , allowing underground development and throughput to ramp up over the coming months , together with an improvement in grades . " Q2 2021 Highlights : • • Consolidated silver production was 4.5 million ounces , primarily impacted by reduced production at La Colorada due to ventilation constraints . In July 2021 , the Company successfully cleared the blockage that formed during the Q1 2021 commissioning of the surface to 345 metre level primary ventilation raise , which relieves the ventilation - driven constraints that have impacted development and mining rates at La Colorada . Mine development is now underway to enable throughput rates to increase and mine sequencing into higher grades , with production anticipated to rise through the remainder of 2021. Q2 2021 silver production was also impacted by the expected transition in mine sequencing into higher gold grades and lower silver grades as well as the timing of leach kinetics and heap sequencing at Dolores , and COVID - 19 related protocols limiting workforce deployment levels . The Company is reaffirming its annual silver production forecast for 2021 of 20.5 to 22.0 million ounces . Consolidated gold production of 142.3 thousand ounces benefited from mine sequencing into higher grades at Dolores and La Arena . A buildup of 23.8 thousand ounces of in - heap inventory occurred at Dolores and Shahuindo , the majority of which is expected to be recognized as production in the second half of 2021. The Company is reaffirming its annual gold production forecast for 2021 of 605.0 to 655.1 thousand ounces . Revenue of $ 382.1 million was impacted by the following factors : ( i ) delays in revenue recognition for the La Colorada concentrate stockpiled in Q1 2021 due to shipping schedules ; ( ii ) a ramp - up in production toward the end of Q2 2021 at the Company's open pit gold mines that was not recorded in dore sales due to timing ; and ( iii ) a build - up of in - heap gold inventories from the timing of leach kinetics at Dolores and Shahuindo . These issues are transitory and are expected to result in higher revenue and cash flows over the remainder of 2021 . Net income was $ 71.2 million ( $ 0.34 basic income per share ) , driven largely by strong mine operating earnings of $ 103.0 million . Adjusted income was $ 46.6 million ( $ 0.22 basic adjusted income per share ) . In addition to removing the $ 10.6 million of investment income , mostly related to the Company's interest in New Pacific Metals Corp. , PAN AMERICAN SILVER CORP . 1