Upcoming AWS Coverage on Silver Wheaton Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 22, 2017 / Active Wall St. announces its post-earnings coverage on Pan American Silver Corp. (NASDAQ: PAAS). The Company posted its fourth quarter fiscal 2016 (Q4 FY16) and full year fiscal 2016 (FY16) earnings on February 14, 2017. The Vancouver, Canada-based Company reported a revenue y-o-y growth, while it posted positive net earnings for Q4 FY16. Register with us now for your free membership at:

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One of Pan American Silver's competitors within the Silver industry, Silver Wheaton Corp. (NYSE: SLW), announced on January 31, 2017, that it will release its Q4 and full year 2016 results on Tuesday, March 21, 2017, after market close. A conference call will be held Wednesday, March 22, 2017, starting at 11:00 am ET to discuss these results. AWS will be initiating a research report on Silver Wheaton in the coming days.

Today, AWS is promoting its earnings coverage on PAAS; touching on SLW. Get our free coverage by signing up to:

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Earnings Reviewed

During the Q4 FY16, Pan American Silver reported total revenues of $190.60 million compared to $162.96 million in Q4 FY15. However, total revenues number for Q4 FY16 lagged market expectations of $192.9 million.

The silver mining Company reported net earnings of $22.28 million, or $0.14 per diluted share, in Q4 FY16 versus net loss of $136.96 million, or $0.88 loss per diluted share, in the prior year's comparable quarter. The Company's adjusted earnings for Q4 FY16 came in at $19.0 million, or $0.12 per diluted share, against adjusted net loss of $12.69 million, or $0.08 loss per diluted share, in Q4 FY15. Additionally, Wall Street had also expected the Company to report adjusted earnings of $0.12 per diluted share.

Due to higher metal prices, Pan American Silver's total revenues rose 15% during FY16 to $774.78 million from $674.69 million in FY15. The Company's net earnings for FY16 were $101.83 million, or $0.66 per diluted share, compared to a net loss of $231.56 million, or $1.49 loss per diluted share, in FY15. Furthermore, adjusted earnings for FY16 stood at $95.17 million, or $0.63 per diluted share, versus adjusted net loss of $41.26 million, or $0.27 loss per diluted share, in FY15.

Production Numbers

The Company's silver production during Q4 FY16 was 6.31 million ounces compared to 6.79 million ounces in Q4 FY15. The fall in production figures reflected anticipated production declines at Alamo Dorado and Manantial Espejo, and was partially offset by higher silver production at La Colorada and Morococha. Furthermore, silver cash cost during Q4 FY16 was $6.66 per ounce against $9.09 per ounce in Q4 FY15.

In Q4 FY16, Gold production came in at 43.94 thousand ounces compared to 48.22 thousand ounces in the year ago same quarter. Meanwhile, Zinc production increased to 13.2 thousand tons in Q4 FY16 from 11.5 thousand tons in the prior year's same quarter. Lead production also increased from 4.1 thousand tons in Q4 FY15 to 5.5 thousand tons in the reported quarter. However, copper production fell to 3.1 thousand tons during Q4 FY16 from 4.0 thousand tons in Q4 FY15.

Cash Flow and Balance Sheet

In the three months ended December 31, 2016, net cash generated by operating activities surged 95% to $45.67 million from $23.40 million in Q4 FY15. As on December 31, 2016, cash and cash equivalents and short-term investment balances stood at $217.6 million with working capital position of $428.6 million. The Company's debt outstanding as on December 31, 2016 was $43.3 million after repayment of $5.9 million in short-term debt in Q4 FY16. Furthermore, the Company made capital expenditures of $198.4 million in FY16, including $119.0 million on projects at Dolores and La Colorada mine, while the remaining $79.4 million was spent on sustaining capital.

Dividends and Share Repurchases

In its earnings press release, Pan American Silver's Board of Directors raised quarterly cash dividend from $0.0125 per common share to $0.025 per common share, aggregating approximately $3.8 million. The dividend will be payable on March 10, 2017, to the holders of record of Pan American's common shares as of the close on February 27, 2017.

Earnings Outlook

For its guidance for full year FY17, Pan American Silver's silver production outlook range is 24.5 million to 26.0 million ounces. The Company's expects FY17 gold production to be between 155 thousand ounces and 165 thousand ounces. Zinc production for FY17 is forecasted to be in the range of 56.5 thousand tons to 58.5 thousand tons. The Company anticipates producing 19.0 thousand tons to 20.0 thousand tons of lead during FY17. Meanwhile, copper production during FY17 is expected to be in the range of 8.75 thousand tons to 9.25 thousand tons. The Company's silver cash costs are anticipated it to be between $6.45 and $7.45 per ounce. In FY17, sustaining capital expenditures is likely to be in the range of $82 million to $88 million, while project capital expenditure during FY17 is forecasted to be in between $58 million and $62 million.

Stock Performance

On Tuesday, February 21, 2017, the stock closed the trading session at $19.57, climbing 1.19% from its previous closing price of $19.34. A total volume of 1.93 million shares have exchanged hands. Pan American Silver's stock price surged 6.42% in the last month, 21.12% in the past three months, and 108.94% in the previous twelve months. Moreover, the stock rallied 29.86% since the start of the year. The stock is trading at a PE ratio of 29.83 and has a dividend yield of 0.51%.

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SOURCE: Active Wall Street