Pan American Silver to Buy Back 5% of Shares

TL;DR

PAAS is buying back 5% of its stock starting March 6th, signaling confidence.

AI Summary

Pan American Silver Corp. announced on March 4, 2024, that the Toronto Stock Exchange has approved its Normal Course Issuer Bid. The company plans to purchase up to 18,232,990 common shares, representing 5% of its outstanding shares as of February 29, 2024. These purchases will occur on the TSX and NYSE from March 6, 2024, to March 5, 2025, at market prices.

Why It Matters

This share buyback program indicates management's belief that the company's stock is undervalued, potentially signaling confidence in future performance and aiming to increase shareholder value.

Risk Assessment

Risk Level: low — A normal course issuer bid is a routine share repurchase program, not typically indicative of significant new risks.

Key Numbers

• 18,232,990 — Shares to be repurchased (Represents up to 5% of outstanding shares, indicating a significant capital allocation towards share buybacks.)
• 5% — Percentage of shares (This is the maximum proportion of the company's shares that can be repurchased under the bid.)

Key Players & Entities

• Pan American Silver Corp. (company) — Company announcing the bid
• Toronto Stock Exchange (company) — Exchange approving the bid
• New York Stock Exchange (company) — Exchange where shares may be purchased
• 18,232,990 (dollar_amount) — Maximum number of shares to be repurchased
• 5% (dollar_amount) — Percentage of outstanding shares to be repurchased
• March 4, 2024 (date) — Date of announcement
• March 6, 2024 (date) — Start date of the bid
• March 5, 2025 (date) — End date of the bid

FAQ

Filing Documents

• a2024_03x04ncibapprovalnr.htm (6-K) — 16KB
• form6kncibapprovalnr.htm (EX-99.1) — 18KB
• paaslogo1.jpg (GRAPHIC) — 17KB
• 0000771992-24-000021.txt ( ) — 57KB

From the Filing

Document NEWS RELEASE Pan American Silver Announces Normal Course Issuer Bid Vancouver, B.C. - March 4, 2024 - Pan American Silver Corp. (NYSE PAAS) (TSX PAAS) ("Pan American" or the "Company") today announced that the Toronto Stock Exchange (the "TSX") has accepted the Company's notice of its intention to make a normal course issuer bid (the "Bid") to purchase up to 18,232,990 of its common shares, representing up to 5% of Pan American's issued and outstanding shares as at February 29, 2024. Purchases pursuant to the Bid will be made on the open market through the facilities of the TSX and the New York Stock Exchange ("NYSE") and alternative trading systems in Canada and the United States. The period of the Bid will begin on March 6, 2024 and will continue until March 5, 2025 or an earlier date should the Company complete its purchases. Pan American will pay the market price at the time of acquisition of any common shares in accordance with the rules and policies of the TSX and NYSE and applicable securities laws. All common shares acquired by the Company under the Bid will be cancelled and purchases will be funded out of Pan American's working capital. Although the Company has a present intention to acquire its common shares pursuant to the Bid, it is not obligated to make any purchases, and the actual number of common shares to be purchased, and the timing of any purchases, will be at the Company's discretion. As at February 29, 2024, the number of Pan American's issued and outstanding common shares totaled 364,659,809. In accordance with the rules of the TSX, the maximum daily purchases on the TSX under this Bid will be 151,485 common shares, which is 25% of the average daily trading volume for the Company's common shares on the TSX for the six months ended February 29, 2024, which was 605,942 common shares. In accordance with applicable U.S. securities laws, the maximum daily purchases on the NYSE under this Bid will be 25% of the average daily trading volume for the Company's common shares in the four calendar weeks preceding the date of purchase, subject to certain exceptions for block purchases. Pan American is undertaking the Bid because, in the opinion of its Board of Directors, the market price of its common shares, from time to time, may not fully reflect the underlying value of its mining operations, properties and future growth prospects. The Company believes that in such circumstances, the outstanding common shares represent an accretive investment for Pan American since a portion of the Company's excess cash generated on an annual basis can be invested for an attractive risk-adjusted return on capital through the Bid. Pan American has established an automatic securities purchase plan ("ASPP") with its broker, National Bank Financial Inc., to allow for the repurchase of common shares under the Bid at any time, including when it ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. The ASPP has been pre-cleared by the TSX and will be effective contemporaneously with the Bid. All purchases made under the ASPP will be included in computing the number of shares purchased and cancelled by the Company under the Bid. A copy of the Company's Notice of Intention to Make a Normal Course Issuer Bid filed with the TSX can be obtained from the Corporate Secretary of Pan American without charge. PAN AMERICAN SILVER CORP. 1 NEWS RELEASE About Pan American Silver Pan American Silver is a leading producer of precious metals in the Americas, operating silver and gold mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. We also own the Escobal mine in Guatemala that is currently not operating, and we hold interests in exploration and development projects. We have been operating in the Americas for three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C. and our shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol PAAS. Learn more at panamericansilver.com Follow us on LinkedIn For more information contact Siren Fisekci VP, Investor Relations Corporate Communications Ph 604-806-3191 Email irpanamericansilver.com Cautionary Note Regarding Forward-Looking Statements and Information Certain of the statements and information in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this news release relate to, among other things, statements with respect to the terms which the Bid will be operated,

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View this 6-K filing on SEC EDGAR