Vancouverite Pan American Silver's (TSX: PAA) net income fell 73.2% to US$6.40mn in the third quarter from US$23.9mn year-on-year, the company reported in a statement.
Pan American said an unrealized loss of US$2.9mn on non-US currencies and US$2.0mn in negative pricing adjustments on concentrates previously included in sales reduced the company's net income in the recent period.
The company added that revenues slipped 10% year-on-year to US$79.5mn on lower base metals prices that were partially offset by higher silver values.
Production totaled 4.86Moz silver, 9,648t zinc, 3,967t lead, 1,514t copper and 6,499oz gold in the recent quarter, compared to 4.45Moz silver, 10,221t zinc, 4,159t lead, 1,544t copper and 5,497oz gold year-on-year.
Cash costs jumped to US$6.61/oz silver net of byproduct credits in Q3 from US$3.32/oz silver in the year-ago period.
Pan American said that due to "delays caused by slow equipment deliveries, lower than planned contractor productivity and extreme seasonal wind conditions" it expects the capex for its Manantial Espejo mine in Argentina's Santa Cruz province to be some 20-24% above the previous estimate of US$185mn.
The expansion of the San Vicente mine in Bolivia is expected to be complete by year end, with commissioning in the first half of 2009, Pan American said.
The company maintained its production guidance at 18.8Moz silver in 2008, but increased its estimate of consolidated cash costs to US$5.70/oz silver on average for this year.
Pan American also owns the Alamo Dorado and La Colorada mines in Mexico, and the Huarón, Quiruvilca and Morocha mines in Peru.
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