Pan American Silver Corp.

Pan American Silver Corp. is a senior gold and silver producer headquartered in Vancouver, Canada, operating primarily in Mexico and South America. The company's portfolio consists of 12 projects, comprising 9 operating mines, 1 development, 1 suspended, and 1 reclamation project. Key assets include La Colorada, El Peñon, Escobal, and Navidad. The enterprise is principally engaged in the operation, development, and exploration of precious and base metal producing properties. The business model involves selling doré, refined from its own processing facilities, to international bullion banks and traders, and selling metal-bearing concentrates to international traders and smelters. Operations utilize a range of processing technologies, including conventional flotation circuits to produce separate concentrates, as well as heap leaching and carbon-in-pulp/carbon-in-column adsorption circuits. The company manages market volatility through selective hedging of its base metal production, while generally maintaining full exposure to precious metal prices to maximize shareholder returns from price fluctuations. A portion of its production is committed under various streaming and off-take agreements, including a life-of-mine stream on a portion of its payable metals at one operation and a percentage-based stream at another. The operational approach is supported by a workforce of approximately 9,000 employees and 7,800 contractors.

Strategic objectives center on strengthening the entity's market position by acquiring or discovering resources that can be developed economically to enhance the production profile and lower consolidated unit costs. Growth is pursued through a combination of acquisition, exploration, development, and expansion efforts, with a focus on adding low-cost production and long-life reserves. A key priority is the replacement and growth of mineral reserves and resources, achieved through sustained investment in mine and near-mine exploration programs across commodity price cycles. Financial performance is monitored against targets for operating earnings and cash flow, as well as against operational metrics like production volumes and all-in sustaining costs. The organization actively evaluates strategic opportunities to acquire promising production, development, and exploration properties. Capital allocation is directed towards funding working capital, capital replacement and improvement programs, and advancing future construction and development projects, while maintaining a financial position that allows for capitalizing on new strategic opportunities as they arise.

Executive leadership is guided by a President and CEO with over 20 years of senior management experience within the organization, having held the top role since 2016. The board of directors is composed of 9 members, 8 of whom are independent, ensuring robust oversight. Governance is structured through 5 standing committees: Audit; Human Resources and Compensation; Health, Safety, and Environment; Communities and Sustainable Development; and Nominating and Governance. The Audit Committee, comprising 3 independent and financially literate members, directly oversees financial reporting integrity, internal controls, and the external auditor relationship, meeting at least 4 times annually. The governance framework is reinforced by board-level policies, including a Global Code of Ethical Conduct and an Anti-Corruption Policy, with annual certifications required from senior leadership. This structure supports a management approach focused on ethical conduct, risk management, and alignment with shareholder interests through transparent and accountable oversight of the company's operations and strategic initiatives.

Sustainability initiatives are integrated into corporate strategy, guided by a board-level Communities and Sustainable Development Committee. The organization is committed to the Towards Sustainable Mining (TSM) protocols of the Mining Association of Canada to enhance community engagement and environmental practices. Climate action includes a formal goal to reduce greenhouse gas emissions by 30% by 2030 from a 2019 baseline, with reporting aligned to the TCFD framework. A formal Human Rights Policy, based on UN Guiding Principles and the Voluntary Principles on Security and Human Rights, governs interactions with stakeholders. The company is a signatory to the United Nations Global Compact and a member of the World Gold Council, adhering to its Conflict-Free Standard. Workplace safety is a priority, supported by participation in the Mining Safety Roundtable and the implementation of a Critical Risk Management program. Environmental management includes regular independent dam safety reviews for all tailings facilities and adherence to comprehensive closure and reclamation plans for all sites.

The corporate structure has been significantly shaped by major transactions, including the acquisition of Yamana Gold Inc. in March 2023, which added 4 producing mines. This followed the 2019 acquisition of Tahoe Resources Inc. A key joint venture arrangement involves a partnership with Corporación Minera de Bolivia (COMIBOL) for the San Vicente operation. The company has actively optimized its portfolio through strategic divestitures, completing the sale of the MARA Project to Glencore International AG in September 2023, along with other non-core asset sales in 2023 and 2024. Operations are conducted through various wholly-owned subsidiaries, including Plata Panamericana S.A. de C.V., Shahuindo S.A.C., Jacobina Mineração e Comércio Ltda., and Minera Meridian Ltda., which hold the primary operating assets. The company also holds contingent value rights, issued to former Tahoe shareholders in 2019, which are exchangeable for common shares upon the restart of a specific suspended operation.