[Management View]
Pan American Silver Corp. reported record revenue of $811.9 million in Q2 2025, driven by strong operational execution and favorable metal prices. Net earnings reached $189.6 million, or $0.52 per share, with adjusted earnings at $155.4 million, or $0.43 per share. The company achieved record operating cash flow of $293.4 million and free cash flow of $233 million, increasing the cash balance to $1.1 billion. The proposed acquisition of MagSilver is on track, with expected closure in 2025 pending regulatory approval.

[Outlook]
The company maintains its gold and silver production guidance for 2025, with gold output expected to be more heavily weighted towards the second half of the year. Capital expenditures are set to ramp up in Q3 and Q4 2025. The La Colorada Skarn project is progressing, with updates expected before mid-September. The ILO 169 consultation process in Guatemala continues, with no set completion date.

[Financial Performance]
Pan American Silver achieved several record financial results in Q2 2025, including net earnings, free cash flow, and total liquidity. The company increased its dividend by 20% and repurchased nearly 500,000 shares. The acquisition of MagSilver is expected to expand silver output and reduce costs.

[Q&A Highlights]
Question 1: In Q2, several operations experienced negative grade reconciliation or geotechnical issues. Have these issues been resolved going into Q3? How confident are you in meeting the gold production guidance?
Answer: Steve Busby explained that the issues are being addressed aggressively, with some expected to linger into Q3. The company remains confident in meeting gold production guidance by Q4, with improvements in geotechnical issues at Timmins.

Question 2: Should we expect more non-core asset sales in the second half or next twelve months?
Answer: Michael Steinmann confirmed ongoing work on smaller deals, mostly involving mid to later stage exploration assets, with several expected to close by year-end.

Question 3: On Jacobina, what are the expectations for grades in the second half of the year?
Answer: Steve Busby stated that the company is moving towards mining at reserve grades, which are slightly lower, but remains confident in delivering guidance.

Question 4: Is Pan American involved in the ILO 169 consultation meetings directly?
Answer: Sean McAleer clarified that the consultation is led by the government, with Pan American participating when needed.

Question 5: Can you provide an update on the La Colorada Skarn project and potential monetization or partnership transactions?
Answer: Michael Steinmann mentioned ongoing discussions and expected updates on high-grade vein discoveries and resource calculations in the coming months.

Question 6: Could you give an idea of the timing for the reserve and resource update and the impact of gold and silver price assumptions?
Answer: Michael Steinmann indicated the update is expected before mid-September, with price assumptions adjusted to reflect the current environment.

Question 7: Are the geotechnical and grade reconciliation issues related to new areas or structures at the operations?
Answer: Steve Busby noted that the issues are more related to the extremities of known veins and are typical of narrow vein mining.

Question 8: Can you discuss the capital expenditure budget for the year and plans for Q3 and Q4?
Answer: Scott Campbell confirmed that delays in major capital projects are being addressed, with full speed ahead for the rest of the year.

Question 9: Will the MagSilver acquisition impact the dividend policy?
Answer: Michael Steinmann stated that robust free cash flow generation should prevent a material reduction in the dividend.

Question 10: Is the Mexican antitrust approval the last hurdle for the MagSilver acquisition?
Answer: Michael Steinmann confirmed it is the last hurdle, with the transaction expected to close shortly after approval.

[Sentiment Analysis]
The tone of the management was confident and optimistic, emphasizing strong financial performance and strategic growth initiatives. Analysts' questions focused on operational challenges and future plans, with a generally positive reception to the company's responses.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 |
|--------|---------|---------|
| Revenue | $811.9M | $750M |
| Net Earnings | $189.6M | $170M |
| Adjusted Earnings | $155.4M | $140M |
| Operating Cash Flow | $293.4M | $260M |
| Free Cash Flow | $233M | $200M |
| Silver Production | 5.1M oz | 4.8M oz |
| Gold Production | 178,700 oz | 180,000 oz |

[Risks and Concerns]
- Ongoing geotechnical and grade reconciliation issues at several operations.
- Dependence on regulatory approval for the MagSilver acquisition.
- Potential delays in capital projects and the ILO 169 consultation process.

[Final Takeaway]
Pan American Silver Corp. delivered record financial results in Q2 2025, driven by strong operational performance and favorable metal prices. The company remains confident in meeting its production guidance for 2025, with strategic initiatives such as the MagSilver acquisition expected to enhance future growth. While operational challenges persist, management's proactive approach and robust financial position provide a solid foundation for continued success.