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PAN AMERICAN ― SILVER Q3 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 cash flow from operations of $ 157.0 million in Q3 2021 Vancouver , B.C. - November 9 , 2021 - Pan American Silver Corp. ( NASDAQ : PAAS ) ( TSX : PAAS ) ( " Pan American " or the " Company " ) today reported unaudited results for the quarter ended September 30 , 2021 ( " Q3 2021 " ) . " Pan American generated record quarterly revenue of $ 460.3 million and operating cash flow of $ 157.0 million in Q3 . Our cash and short term investments increased to $ 315.4 million , " said Michael Steinmann , President and Chief Executive Officer . " We have continued to face challenges with availability of qualified labor and costs related to the COVID pandemic . Vaccination rates have been increasing at all our operations , and we expect to see an improvement in productivity and costs over the coming quarters , especially at La Colorada . " Q3 2021 Highlights : • • • • Consolidated silver production was 4.8 million ounces . La Colorada was largely responsible for increased production relative to the first and second quarters of 2021. With improved ventilation air volumes allowing accelerated mine development , mining rates increased by 21 % relative to the previous quarter of 2021 and further increases are anticipated through the balance of 2021. We expect mine developments and mining rates to continue increasing over the coming quarters , with throughput rates increasing to approximately 2,000 tonnes per day by mid - 2022 . We also expect to increase underground exploration drilling rates , particularly for the Skarn deposit . Consolidated gold production was 142.6 thousand ounces . At Dolores , a delay in completing construction of leach pad 1 south has resulted in an in - heap gold inventory build - up of 8.1 thousand ounces in Q3 2021 and 37.0 thousand ounces year - to - date 2021 ( " YTD 2021 " ) . Loading of pad 1 south is expected to begin by the end of November 2021 , which should allow inventory levels to normalize in 2022. At Shahuindo , an increase in pad inventories of 5.9 thousand ounces in Q3 2021 and 16.1 thousand ounces YTD 2021 was recorded . Revenue of $ 460.3 million benefited from the sale of dore and concentrate inventories built - up in prior periods , which was partially offset by the increase of on - pad inventories at Dolores and Shahuindo . Net income of $ 20.2 million ( $ 0.10 basic income per share ) was impacted by a non - cash mark - to - market loss on investment interests of $ 25.3 million ( $ 0.12 per share ) and an income tax expense of $ 50.4 million ( $ 0.24 per share ) , partially offset by a $ 28.5 million gain ( $ 0.14 per share ) on the sale of a non - core exploration stage property . Adjusted income was $ 37.8 million ( $ 0.18 basic adjusted income per share ) . Net cash generated from operations was $ 157.0 million and includes $ 23.0 million source of cash from working capital changes . Silver Segment Cash Costs and All - in Sustaining Costs ( " AISC " ) per silver ounce were $ 11.92 and $ 16.30 , respectively . Silver Segment costs were mainly impacted by increased mining costs at La Colorada for ventilation upgrades , extensive shotcrete ground support and investments in long - hole mining methods to benefit future operations . La Colorada AISC are expected to gradually decline , as throughput increases over the coming quarters . Gold Segment Cash Costs and AISC per gold ounce were $ 922 and $ 1,176 , respectively . • Capital expenditures of $ 66.2 million were comprised of $ 52.9 million of sustaining capital and $ 13.3 million of non - sustaining capital , which is mostly related to project capital . Project capital of $ 12.8 million was largely invested in advancing the exploration and development studies for the La Colorada Skarn project , including advancing construction of the new concrete - lined ventilation shaft and refrigeration plant , and the Wetmore exploration project at Timmins . • 2021 Guidance revised . Full - year consolidated precious metals production is now estimated to be between 19.0 and 20.0 million ounces of silver and 560.0 to 588.0 thousand ounces of gold . The estimated PAN AMERICAN SILVER CORP . 1