Pan American boosts dividend by 43% on strong 2019 cash flow

Pan American Silver (NASDAQ: PAAS) (TSX: PAAS) has had a strong financial year in 2019, generating $282 million in operational cash flow. The company also retired $60 million in debt, paid out $29 million to shareholders, made investments in new projects and had an improved cash position throughout the year.

During the fourth quarter alone, Pan American generated $129.5 million from operating activities, the highest in company history. The miner also posted revenues of $404.4 million in the fourth quarter – a 130% improvement on the previous year – and $1.35 billion for the full year, which was 70% higher than 2018.

Net earnings for the quarter totalled $51.7 million, compared with a $63.6 million loss in the prior-year quarter. For the 12 months, net earnings came to $111.2 million, up from $12.04 million in 2018. Adjusted net earnings were $68.9 million and $158 million, respectively.

Based on those results, Pan American’s board of directors has decided to increase the quarterly dividend by 43% to $0.05 per common share, for about $10.5 million in total cash dividends payable on March 12.

In 2019, Pan American increased its silver production from 24.8 million ounces to 25.9 million ounces and gold production from 178,900 ounces to 559,200 ounces, at an all-in sustaining cost of $10.46/oz in the silver segment and $948/oz in the gold segment.