You are here
Pan American Silver repudiates recent hedging
Pan American Silver to Eliminate Silver and Gold Hedge Contracts
Company Press Release
From PR Newswire via Yahoo Finance
Tuesday, September 10, 2013
http://finance.yahoo.com/news/pan-american-silver-eliminate-silver-12300...
VANCOUVER, British Columbia -- Pan American Silver Corp. has decided to close out its outstanding silver and gold hedges.
The company previously announced that it had entered into forward contracts for 5.3 million ounces of silver and 24,000 ounces of gold, at average prices of $20.43 per ounce of silver and $1,323 per ounce of gold, spread relatively equally over a period of 12 months. The amount of silver and gold under contract represented approximately 20% and 18% of the company's forecasted 12-month silver and gold production, respectively.
Through accelerated physical metal delivery, and straight repurchase, Pan American now intends to close all of these forward contracts before the end of the current year.
... Dispatch continues below ...
Precious Metals Round Table:
Where Do We Go From Here?
On Tuesday, September 24, Sprott Asset Management will assemble four experts for a live Internet broadcast about the prospects for the precious metals. Participating will be Sprott's CEO, Eric Sprott; financial letter writer and internationally renowned conference speaker Marc Faber; Sprott's chief investment strategist, John Embry; and Sprott Asset Management President Rick Rule. To participate, please visit:
https://event.on24.com/eventRegistration/EventLobbyServlet?target=regist...
President and CEO Geoff Burns commented on the company's decision; "We decided to put the hedges in place as a short-term tactical response to reduce risk during a time of extreme price volatility. However, our action may have inadvertently sent the wrong message to the market and to our shareholders about our hedging philosophy and our view of the long-term prospects for silver and gold."
Burns continued, "We have become more comfortable that we will realize the benefits of our cost-reduction initiatives and are considerably more optimistic about the short term prospects for both silver and gold, therefore negating the conditions that initially lead us to enter into the hedges. More importantly, we need to unequivocally reassure our shareholders that the company's fundamental philosophy is still that of not hedging our precious metal production, thereby providing maximum exposure to the price of silver."
Pan American's vision is to be the world's pre-eminent silver producer, with a reputation for excellence in discovery, engineering, innovation, and sustainable development. The company has seven operating mines in Mexico, Peru, Argentina, and Bolivia. Pan American also owns several development projects in the United States, Mexico, Peru, and Argentina.
* * *
Join GATA here:
Gold Investment Symposium 2013
Luna Park Conference Center, Sydney, Australia
Wednesday-Thursday, October 16-17, 2013
Mines and Money Australia
Melbourne Conference and Exhibition Centre
Tuesday, October 29-Friday, November 1, 2013
New Orleans Investment Conference
Sunday-Wednesday, November 10-13, 2013
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
https://jeffersoncompanies.com/landing/speakers?IDPromotion=613011610080...
* * *
Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:
http://www.goldrush21.com/order.html
Or by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
http://gata.org/node/wallstreetjournal
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit:
