FIRST QUARTER REPORT TO SHAREHOLDERS

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FIRSTQUARTERREPORTTOSHAREHOLDERS

FortheperiodendingMarch31,2021

www.panamericansilver.com

PanAmericanSilverreportsQ12021results

Vancouver,B.C.-May12,2021-PanAmericanSilverCorp.(NASDAQ:PAAS)(TSX:PAAS)("PanAmerican"orthe"Company")todayreportedunauditedresultsforthequarterendedMarch31,2021("Q12021").PanAmerican'sunauditedcondensedinterimconsolidatedfinancialstatements("financialstatements"),aswellasPanAmerican’smanagement'sdiscussionandanalysis ("MD&A") for thethreemonthsendedMarch31,2021,areavailableonPanAmerican’swebsiteatpanamericansilver.comandonSEDARatwww.sedar.com.

“Q1 was a challenging quarter, as the COVID-19 pandemic continues to grip Latin America, impacting ourworkforce,communitiesandoperations.AtLaColorada,weexperiencedlargeinventorybuild-upsandablockageofaventilationproject thatoccurredduringcommissioning,whichreducedQ1salesandproduction.Thesearetransitoryissuesexpectedtoberesolvedduringtheremainderof2021,withtheroll-outofvaccinationprogramsacross our operating jurisdictions alleviating some of the impact of the pandemic," said Michael Steinmann,PresidentandChiefExecutiveOfficer."InQ1,wealsomadelargetaxpaymentstotaling$61.3million."

"ConcentrateinventoriesarebacktonormallevelsatLaColorada,andweanticipatethatthemajorityoftheQ1inventorybuild,whichreducedoperatingcashflowby$39.9millionandresultedinlowerrevenue,willbemostlysold in the second quarter of 2021. At La Colorada, we are implementing a by-pass of the blockage in theventilationraise,whichshouldallowventilationtoimproveandthroughputratestoincreaselaterintheyear.Wecontinuetoexpectannualproductionandcashflowstobeback-endloadedin2021,"addedMr.Steinmann.

Q12021Highlights:

• Alargeinventorybuildimpactedrevenue,cashflows,andSilverSegmentCashCostsandAll-inSustainingCosts("AISC").Theinventoryprimarilyrelatedtoathree-monthbuild-upofconcentrateproductionatLaColoradaduetoextendednegotiationswithatransportsupplierandchangestosmeltingcontracts.ThatinventoryisexpectedtobesoldandrecognizedinrevenueoverQ22021andQ32021.Inaddition,abuild-upininventoryoccurredatDoloresfromleachpadkinetics,whichdelayedproductionlaterinto2021.

• ProtocolstoprotecthealthandsafetyduringtheCOVID-19pandemicreducethroughputratesacrossPanAmerican'soperations,andhavehadadisproportionateimpactonitsLaColoradaandManantialEspejooperations, which contribute a significant portion of the Company's silver production. This is due toCOVID-19relatedshortfallsinworkforcedeploymentsattheseoperations.

• Consolidatedsilverproductionof4.6millionouncesprimarilyreflectsreducedproductionatLaColoradaand Dolores. In addition to the COVID-19 related impact, noted above, at La Colorada, the bottom 42metresofthenewventilationraisefromsurfacetothe345metrelevelbecameblockedfromsloughingoftheraisewallduringshotcretingandcommissioninginQ12021,restrictingminingrates.PanAmericaniscurrentlyworkingtobypasstheblockagethroughdriftingfromanearbyrampandadditionalraiseboring.Thiswork isexpected tobecompleted inQ32021,enablingmining rates to improve later thisyear.AtDolores,lowersilverproductionreflectsminesequencingintohighergoldgradesandlowersilvergrades,asexpected.

• Consolidatedgoldproductionof137.6 thousandounces reflects reducedproductionatTimminswherewe adjusted mining to address geotechnical conditions in a section of the Bell Creek mine, and atShahuindofromlowertonnesplaced,gradesandextractionratesduetominesequencing.Asexpected,Dolores benefited from mine sequencing into higher gold grades, albeit at a lower ratio of ouncesrecoveredtostackedduetotemporaryleachconstraintsduringthecurrentstageofpadconstruction.

• Revenueof$368.1millionwasimpactedbythe$39.9millioninventoryincreasenotedabove.

• ANet lossof$7.6million ($0.04basic losspershare)was recorded, impactedbyan investment lossof$39.0million,primarilyrelatedtothemark-to-marketfair-valueadjustmentoftheCompany'sinvestmentinNewPacificMetals.

Q12021NEWSRELEASEAllamountsexpressedinU.S.dollarsunlessotherwiseindicated.Unauditedtabularamounts

areinthousandsofU.S.dollarsexceptnumberofshares,options,warrants,andpershareamounts,unlessotherwisenoted.

PANAMERICANSILVERCORP. 1

• Adjustedearningswere$37.4million($0.18basicadjustedearningspershare).Theprimaryadjustmentwas removing the$39.0million investment loss. Commencing inQ1 2021, the Companywill no longerinclude in adjusted earnings the gains and losses recognized in relation to certain equity investmentsownedbytheCompany.

• Net cash generated from operations of $29.9million includes $61.3million in income taxes paid and$47.4millionuseof cash fromworkingcapital changes,drivenmainlyby the inventorybuild-upsnotedabove.

• SilverSegmentCashCostswere$12.30perounce,reflectinglowergoldby-productcreditsfromthemoveof Dolores into theGold Segment, reduced throughput and grades at La Colorada from the temporaryventilationconstraints,theinventorybuild-upatLaColorada,anincreaseinoperatingcostsatManantialEspejoduetotheramp-upofminingactivitiesatCOSEandJoaquin,andgreaterCOVID-19relatedcosts.Costsbenefitedfromstrongby-productbasemetalproductionandpricesatHuaron.

• Silver Segment AISC were $16.99, including net realizable value ("NRV") inventory adjustments thatincreasedSilverSegmentAISCby$0.51perounce.SilverSegmentAISCwassignificantlydistortedbytheventilationconstraintsandinventorybuild-upatLaColorada,andisexpectedtonormalizeover2021.

• GoldSegmentCashCostsof$846perouncebenefitedfromthemoveofDolorestotheGoldSegmentandstrongproductionatLaArena,whilecostswerenegativelyimpactedbythelowerthroughputandgradesatTimminsandShahuindo.

• GoldSegmentAISCwere$1,058perounce,includingNRVinventoryadjustmentsatDoloresthatreducedGoldSegmentAISCby$75perounce.

• ConsolidatedAISC,includinggoldby-productcreditsfromtheGoldSegmentmines,were$(5.23)persilverouncesold.

• Capital expenditures totaled $51.0 million, comprised of $45.2 million of sustaining capital and $5.7million of non-sustaining capital, the majority of which was directed to project capital for explorationdrillingactivitiesattheLaColoradaskarnprojectandtheWetmoreprojectatTimmins.

• TheCompany's liquidityandcapitalpositionatMarch31,2021,wascomprisedofcashandshort-terminvestmentbalancesof$206.4million,anequityinvestmentinMaverixMetalsInc.withamarketvalueof$134.3million,workingcapitalof$513.0million,and$500.0millionavailableonitsrevolvingcreditfacility(the"CreditFacility").Totaldebtof$30.8millionwasrelatedtoleaseliabilities.

• TheBoardofDirectorshasapprovedacashdividendof$0.07percommonshare,orapproximately$14.7million in aggregate cash dividends, payable on or about June 7, 2021, to holders of record of PanAmerican’scommonsharesasofthecloseonMay25,2021.PanAmerican'sdividendsaredesignatedaseligibledividendsforthepurposesofthe IncomeTaxAct(Canada).Asisstandardpractice,theamountsandspecificdistributiondatesofanyfuturedividendswillbeevaluatedanddeterminedbytheBoardofDirectorsonanongoingbasis.

• PanAmerican isrevisingGuidance for2021annual silverproduction tobetween20.50 to22.00millionouncesandSilverSegmentCashCoststoarangeof$9.60to$11.60perounceandSilverSegmentAISCtoa range of $14.25 to $15.75 per ounce. The revisions reflect extended ventilation constraints at LaColoradawhilecompletingtheby-passoftheblockageinthenewventilationraise,aswellasgreaterthanoriginallyanticipatedCOVID-19relatedproductionimpactsatManantialEspejo.Therearenochangestoestimated2021annualgoldproductionof605.0to655.1thousandouncesandestimatedGoldSegmentCashCostsorAISC.Theestimatedrangeforconsolidatedsustainingcapitalhasbeenreducedtobetween$230.0millionand$245.0millionwhileestimatedprojectcapital isunchangedat$55.0millionto$60.0million.Furtherdetailsareprovidedinthe"Guidance"sectionofthisnewsrelease.




CashCosts,AISC,adjustedearnings,basicadjustedearningspershare,sustainingcapital,projectcapital,workingcapital,andtotaldebtarenotgenerallyacceptedaccountingprinciple("non-GAAP")financialmeasures.Pleaserefertothe"AlternativePerformance(non-GAAP)Measures"sectionofthisnewsreleaseforfurtherinformationonthesemeasures.

CONSOLIDATEDRESULTSThreemonths

endedTwelvemonths

ended

March31,2021

December31,2020

Weightedaveragesharesduringperiod(millions) 210.3 210.1Sharesoutstandingendofperiod(millions) 210.3 210.3

ThreemonthsendedMarch31,

2021 2020

FINANCIALRevenue $ 368,099 $ 358,428Mineoperatingearnings $ 89,964 $ 50,058Netloss $ (7,562)$ (77,235)

Basiclosspershare(1) $ (0.04)$ (0.37)Adjustedearnings(2) $ 37,434 $ 21,206

Basicadjustedearningspershare(1) $ 0.18 $ 0.10Netcashgeneratedfromoperatingactivities $ 29,850 $ 114,051Netcashgeneratedfromoperatingactivitiesbeforechangesinworkingcapital(2) $ 77,248 $ 75,900Sustainingcapitalexpenditures(2) $ 45,210 $ 50,207Non-sustainingcapitalexpenditures(2) $ 5,743 $ 9,608

Cashdividendpershare $ 0.07 $ 0.05PRODUCTIONSilver(thousandounces) 4,583 5,561Gold(thousandounces) 137.6 156.1Zinc(thousandtonnes) 13.1 13.1Lead(thousandtonnes) 5.0 5.3Copper(thousandtonnes) 2.1 1.9CASHCOSTS(2)($/ounce)SilverSegment(3) 12.30 8.18GoldSegment(4) 846 757AISC(2)($/ounce)SilverSegment(3) 16.99 15.26GoldSegment(4) 1,058 969Consolidatedpersilverouncesold(5) (5.23) 3.49ConsolidatedbeforeNRVinventoryadjustments (2.90) 1.41AVERAGEREALIZEDPRICES(6)

Silver($/ounce) 26.41 16.50Gold($/ounce) 1,788 1,580Zinc($/tonne) 2,756 2,125Lead($/tonne) 2,036 1,857Copper($/tonne) 8,515 5,801(1) Pershareamountsarebasedonbasicweightedaveragecommonshares.(2) Non-GAAPmeasures:adjustedearnings,basicadjustedearningspershare,andnetcashgeneratedfromoperatingactivitiesbefore

changesinworkingcapital,CashCosts,andAISCarenon-GAAPfinancialmeasures.Pleaserefertothe"AlternativePerformance(non-GAAP)Measures"sectionofthisnewsreleaseforfurtherinformationonthesemeasures.

(3) 2021SilverSegmentcomprisedofthefollowingoperations:LaColorada,Huaron,Morococha,SanVicenteandManantialEspejo.2020SilverSegmentcomprisedofthefollowingoperations:LaColorada,Dolores,Huaron,Morococha,SanVicenteandManantialEspejo.

(4) 2021GoldSegmentcomprisedofthefollowingoperations:Dolores,Shahuindo,LaArenaandTimmins.2020GoldSegmentcomprisedofthefollowingoperations:Shahuindo,LaArenaandTimmins.




(5) Metalpricesstatedareinclusiveoffinalsettlementadjustmentsonconcentratesales.

INDIVIDUALMINEOPERATINGPERFORMANCE

SilverProduction(ounces‘000s)

GoldProduction(ounces‘000s)

Threemonthsended

March31,Threemonthsended

March31, 2021 2020 2021 2020LaColorada 1,065 1,593 0.5 1.1Huaron 884 771 0.3 0.2Morococha(1) 521 457 0.2 0.3SanVicente(2) 701 738 0.1 0.1ManantialEspejo 697 695 5.9 6.5Dolores 634 1,230 37.0 27.1Shahuindo 65 64 29.5 48.9LaArena 11 8 33.2 28.7Timmins 4 5 31.0 43.3Total 4,583 5,561 137.6 156.1

(1) MorocochadatarepresentsPanAmerican92.3%interestinthemine'sproduction.(2) SanVicentedatarepresentsPanAmerican95.0%interestinthemine'sproduction.

CashCosts(1)

($perounce)AISC(1)

($perounce)



2021 2020 2021 2020LaColorada 15.62 7.23 42.44 9.98Dolores(2) - 0.07 - 23.29Huaron 2.35 7.95 4.82 10.56Morococha 13.89 12.29 17.47 20.23SanVicente 13.35 14.71 14.20 17.08ManantialEspejo 19.78 13.69 24.43 14.85SilverSegmentConsolidated(2)(3) 12.30 8.18 16.99 15.26Dolores(2) 718 - 723 -Shahuindo 751 617 844 775LaArena 598 725 1,072 1,212Timmins(3) 1,292 945 1,568 1,051GoldSegmentConsolidated(2)(3) 846 757 1,058 969ConsolidatedAISCpersilverouncesold(4) (5.23) 3.49ConsolidatedAISCbeforeNRVinventoryadjustments (2.90) 1.41

(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionoftheMD&AfortheperiodendedMarch31,2021foradetaileddescriptionofthesemeasuresandwhereappropriateareconciliationofthemeasuretotheQ12021financialstatements.

(2) DuetotheexpectedminesequencingintoahighergoldzoneofthemineplanatDolores,theCompanyhasdeterminedthatthemineisbetteridentifiedasaGoldSegmentoperationfrom2021onwards.Thus,asofQ12021,CashCostsandAISCatDoloresarereportedonaperounceofgoldbasisandincludedaspartoftheGoldSegmentCashCostsandAISCcalculations.DoloresCashCostsandAISCinthe2020comparableperiodwerereportedonaperounceofsilverbasisandincludedaspartoftheSilverSegmentCashCostsandAISCcalculations,aspreviouslyreported.Forcomparisonpurposes,hadDoloresbeenreportedintheGoldSegmentin2020,GoldSegmentCashCostsandAISCforQ12020wouldhavebeen$772and$1,126,respectively,andSilverSegmentCashCostsandAISCforQ12020wouldhavebeen$10.29and$13.16,respectively.

(3) SilverSegmentCashCostsandAISCarecalculatednetofcreditsforrealizedrevenuesfromallmetalsotherthansilver("silversegmentby-productcredits"),andarecalculatedperounceofsilversold.GoldsegmentCashCostsandAISCarecalculatednetofcreditsforrealizedsilverrevenues("goldsegmentby-productcredits"),andarecalculatedperounceofgoldsold.

(4) ConsolidatedAISCisbasedontotalsilverouncessoldandarenetofby-productcreditsfromallmetalsotherthansilver("silverbasisconsolidatedby-productcredits").




2021GUIDANCE

Thefollowingtablesprovidemanagement'sguidancefor2021,asatMay12,2021.Theseestimatesareforward-looking statements and information that are subject to the cautionary note associated with forward-lookingstatementsandinformationattheendofthisnewsrelease.

AnnualProductionGuidance

Silver–Moz 20.50-22.00Gold–koz 605.0-655.1Zinc–kt 55.5-60.5Lead–kt 21.0-23.5Copper–kt 8.5-9.0

Based on year-to-date production results and the expected production for the remainder of the year,managementhaslowereditsestimateforannualconsolidatedsilverproductiontobetween20.50to22.00millionouncesfrom22.50to24.00millionounces,reflecting:

• an approximately 20% to 25% reduction in estimated 2021 silver production at La Colorada due toventilationconstraintswhiletheCompanycompletesaby-passoftheblockageinthebottom42metresoftheprimaryventilationraise,aswellas lowerthanoriginallyanticipatedworkforcedeploymentsduetosevereregionalCOVID-19epidemicconditions;and

• anapproximately8to10%reductioninestimated2021silverproductionatManantialEspejo,reflectinghigherthanoriginallyanticipatedCOVID-19relatedshortfallsinworkforcedeployments.

Managementhasalsoreviseditsestimatesforzinc,leadandcopperproductiontoreflecttheexpectedproductionshortfallsatLaColorada,whichareexpectedtobepartiallyoffsetbybetterthanexpectedproductionatHuaronandMorococha.

TheCompany'sestimateforannual2021goldproductionisunchanged.

CashCostsandAISCGuidance

CashCosts(1)(2)

($perounce)AISC(1)(2)

($perounce)SilverSegmentTotal(3) 9.60-11.60 14.25-15.75GoldSegmentTotal(3) 825-925 1,135-1,250ConsolidatedSilverBasis(4) (2.80)-2.70

(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe"AlternativePerformance(non-GAAP)Measures"sectionofthisnewsreleaseforfurtherinformationonthesemeasures.

(2) TheCashCostsandAISCforecastsassumerealizedmetalpricesforQ12021andthefollowingmetalpricesfortheremainderof2021:of$24.00/ozforsilver,$2,850/tonne($1.28/lb)forzinc,$2,000/tonne($0.91/lb)forlead,$9,500/tonne($4.20/lb)forcopper,and$1,750/ozforgold;andaverageannualexchangeratesrelativeto1USDof20.00fortheMexicanpeso("MXN"),3.50forthePeruviansol("PEN"),96.67fortheArgentinepeso("ARS"),7.00fortheBolivianboliviano("BOB"),and$1.25fortheCanadiandollar("CAD").

(3) Corporategeneralandadministrativeexpense,andexplorationandprojectdevelopmentexpenseareincludedinConsolidatedSilverBasisAISC,butarenotallocatedamongsttheoperationsandthusarenotincludedineitherthesilverorgoldsegmenttotals.

(4) ConsolidatedSilverBasisAISCiscalculatedpersilverouncesoldwithgoldrevenuesincludedintheby-productcredits.

SilverSegmentCashCostsandAISCguidancehavebeenrevisedtoincorporatetherevisionstoproductionforecastsandbasemetalpricesrealizedinQ12021.

CapitalExpendituresGuidance

(inmillionsofUSD)

SustainingCapital 230.0-245.0ProjectCapital 55.0-60.0

TotalCapital 285.0-305.0




Estimatedsustainingcapitalin2021hasbeenreducedfromarangeof$245millionto$260milliontoarangeof$230millionto$245million,reflectingthetimingofcashoutflowsforprojectsatShahuindo.

Estimatedprojectcapitalin2021isunchanged.

FirstQuarter2021UnauditedResultsConferenceCallandWebcast

Date: May13,2021Time: 11:00amET(8:00amPT)Dial-innumbers: 1-800-319-4610(toll-freeinCanadaandtheU.S.)

+1-604-638-5340(internationalparticipants)Webcast: panamericansilver.com

Callersshoulddialin5to10minutespriortothescheduledstarttime.Thelivewebcastandpresentationslideswill be available on the Company's website at panamericansilver.com. An archive of the webcast will also beavailableforthreemonths.

AboutPanAmericanSilverPanAmericanownsandoperatessilverandgoldmineslocatedinMexico,Peru,Canada,ArgentinaandBolivia.Wealsoown theEscobalmine inGuatemala that is currentlynotoperating.As theworld's second largestprimarysilverproducerwiththelargestsilverreservebaseglobally,weprovideenhancedexposuretosilverinadditiontoadiversifiedportfolioofgoldproducingassets.PanAmericanhasa27-yearhistoryofoperatinginLatinAmerica,earning an industry-leading reputation for corporate social responsibility, operational excellence and prudentfinancial management. We are headquartered in Vancouver, B.C. and our shares trade on NASDAQ and theTorontoStockExchangeunderthesymbol"PAAS".

Learnmoreatpanamericansilver.com.

Formoreinformationcontact:

SirenFisekciVP,InvestorRelations&CorporateCommunicationsPh:604-806-3191Email:[email protected]

TechnicalInformation

Scientific and technical information contained in this news release have been reviewed and approvedbyMartinWafforn,P.Eng.,SeniorVicePresidentTechnicalServicesandProcessOptimization,andChristopherEmerson,FAusIMM,VicePresidentBusiness Development and Geology, each of whom are Qualified Persons, as the term is defined in Canadian NationalInstrument43-101-StandardsofDisclosureofMineralProjects.

For additional information about Pan American's material mineral properties, please refer to Pan American’s AnnualInformationFormdatedFebruary17,2021,filedatwww.sedar.com,ortheCompany'smostrecentForm40-FfiledwiththeSEC.

AlternativePerformance(Non-GAAP)Measures

In this news release, we refer to measures that are not generally accepted accounting principle ("non-GAAP") financialmeasures. These measures are widely used in the mining industry as a benchmark for performance, but do not have astandardizedmeaning as prescribed by IFRS as an indicator of performance, andmay differ frommethods used by othercompanieswithsimilardescriptions.Thesenon-GAAPfinancialmeasuresinclude:




• Adjustedearningsandbasicadjustedearningspershare.TheCompanybelievesthatthesemeasuresbetterreflectnormalizedearningsastheyeliminate itemsthat inmanagement's judgmentaresubjecttovolatilityasaresultoffactors,whichareunrelatedtooperationsintheperiod,and/orrelatetoitemsthatwillsettleinfutureperiods.

• CashCosts.TheCompany'smethodofcalculatingcashcostsmaydifferfromthemethodsusedbyotherentitiesand,accordingly, theCompany'sCashCostsmaynotbecomparabletosimilarly titledmeasuresusedbyotherentities.InvestorsarecautionedthatCashCostsshouldnotbeconstruedasanalternativetoproductioncosts,depreciationandamortization,androyaltiesdeterminedinaccordancewithIFRSasanindicatorofperformance.

• All-inSustainingCostspersilverorgoldouncesold,netofby-productcredits.TheCompanyhasadoptedAISCasameasureof itsconsolidatedoperatingperformanceanditsabilitytogeneratecashfromalloperationscollectively,andtheCompanybelieves it isamorecomprehensivemeasureofthecostofoperatingourconsolidatedbusinessthan traditionalcashcostsperpayableounce,as it includes thecostof replacingounces throughexploration, thecostofongoingcapitalinvestments(sustainingcapital),generalandadministrativeexpenses,aswellasotheritemsthataffecttheCompany'sconsolidatedearningsandcashflow.

• Totaldebtiscalculatedasthetotalcurrentandnon-currentportionsof:long-termdebt,financeleaseliabilitiesandloanspayable.TotaldebtdoesnothaveanystandardizedmeaningprescribedbyGAAPandisthereforeunlikelytobe comparable to similar measures presented by other companies. The Company and certain investors use thisinformationtoevaluatethefinancialdebtleverageoftheCompany.

• Workingcapitaliscalculatedascurrentassetslesscurrentliabilities.Workingcapitaldoesnothaveanystandardizedmeaning prescribed byGAAP and is therefore unlikely to be comparable to similarmeasures presented by othercompanies. TheCompany and certain investors use this information to evaluatewhether the Company is able tomeetitscurrentobligationsusingitscurrentassets.

Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of the Company’s Management'sDiscussionandAnalysisfortheperiodendedDecember31,2020,foramoredetaileddiscussionoftheseandothernon-GAAPmeasuresandtheircalculation.

CautionaryNoteRegardingForward-LookingStatementsandInformation

Certainofthestatementsandinformationinthisnewsreleaseconstitute"forward-lookingstatements"withinthemeaningoftheUnitedStatesPrivateSecuritiesLitigationReformActof1995and"forward-looking information"withinthemeaningofapplicableCanadianprovincial securities laws.All statements,other than statementsofhistorical fact, are forward-lookingstatementsor information. Forward-looking statementsor information in this news release relate to, amongother things:futurefinancialoroperationalperformance,andestimatesofcurrentproductionlevelsincludingourestimatedproductionofsilver, gold and other metals forecasted for 2021, and our estimated Cash Costs, AISC and expenditures in 2021; futureanticipatedpricesforgold,silverandothermetalsandassumedforeignexchangerates;theamountandtimingofanyfuturesalesofinventory;expectationswithrespecttothefutureanticipatedimpactofCOVID-19onouroperations,theassumptionsrelatedtotheglobalsupplyofCOVID-19vaccinesandtheroll-outineachcountry,andtheeffectivenessandresultsofanyvaccines, the lessening or increase in pandemic-related restrictions, and the anticipated rate and timing for the same;whetherPanAmerican isabletomaintainastrongfinancialconditionandhavesufficientcapital,orhaveaccesstocapitalthrough our corporate credit facility or otherwise, to sustain our business and operations; the ability and timing of PanAmericantocompletetherequiredventilationworkatLaColorada,anditsabilitytocomplete,andtheeffectivenessof,anyby-pass; and the ability of Pan American to successfully complete any capital and development projects, including the LaColorada skarnproject, theexpectedeconomicoroperational resultsderived from thoseprojects, and the impactsofanysuchprojectsonPanAmerican.

Theseforward-lookingstatementsandinformationreflecttheCompany'scurrentviewswithrespecttofutureeventsandarenecessarilybaseduponanumberofassumptionsthat,whileconsideredreasonablebytheCompany,areinherentlysubjecttosignificantoperational,business,economicand regulatoryuncertaintiesandcontingencies.Theseassumptions include: theworld-wideeconomicandsocial impactofCOVID-19 ismanagedandthedurationandextentoftheCOVID-19pandemic isminimizedornot long-term;continuationofoperations followingshutdownsor reductions inproduction, ifapplicable,ourabilitytomanagereducedoperationsefficientlyandeconomically,includingtomaintainnecessarystaffing;tonnageoforetobeminedandprocessed;oregradesandrecoveries;pricesforsilver,goldandbasemetalsremainingasestimated;currencyexchange rates remaining as estimated; capital, decommissioning and reclamation estimates; our mineral reserve andresourceestimatesandtheassumptionsuponwhichtheyarebased;pricesforenergyinputs,labour,materials,suppliesandservices (including transportation); no labour-related disruptions at any of our operations; no unplanned delays orinterruptions in scheduled production; all necessary permits, licenses and regulatory approvals for our operations arereceived in a timelymanner; our ability to secure andmaintain title and ownership to properties and the surface rights




necessary for our operations; and our ability to complywith environmental, health and safety laws. The foregoing list ofassumptionsisnotexhaustive.

The Company cautions the reader that forward-looking statements and information involve known and unknown risks,uncertaintiesandotherfactorsthatmaycauseactualresultsanddevelopmentstodiffermateriallyfromthoseexpressedorimplied by such forward-looking statements or information contained in this news release and the Company has madeassumptions and estimates based on or related to many of these factors. Such factors include, without limitation: theduration and effects of COVID-19, and any other pandemics on our operations and workforce, and the effects on globaleconomies and society; fluctuations in silver, gold and basemetal prices; fluctuations in prices for energy inputs, labour,materials,suppliesandservices(includingtransportation);fluctuationsincurrencymarkets(suchasthePEN,MXN,ARS,BOB,GTQandCADversustheUSD);operationalrisksandhazardsinherentwiththebusinessofmining(includingenvironmentalaccidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structuralformations,cave-ins,floodingandsevereweather);risksrelatingtothecreditworthinessorfinancialconditionofsuppliers,refinersandotherpartieswithwhomtheCompanydoesbusiness;inadequateinsurance,orinabilitytoobtaininsurance,tocover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenouspopulations;ourabilitytoobtainallnecessarypermits,licensesandregulatoryapprovalsinatimelymanner;changesinlaws,regulationsandgovernmentpracticesinthejurisdictionswhereweoperate,includingenvironmental,exportandimportlawsandregulations;changesinnationalandlocalgovernment,legislation,taxation,controlsorregulationsandpolitical,legaloreconomicdevelopmentsinCanada,theUnitedStates,Mexico,Peru,Argentina,Bolivia,Guatemalaorothercountrieswherethe Company may carry on business, including legal restrictions relating to mining, including in Chubut, Argentina, risksrelatingtoexpropriation,andrisksrelatingtotheconstitutionalcourt-mandatedILO169consultationprocessinGuatemala;risksofliabilityrelatingtoourpastsaleoftheQuiruvilcamineinPeru;diminishingquantitiesorgradesofmineralreservesaspropertiesaremined;increasedcompetitionintheminingindustryforequipmentandqualifiedpersonnel;andthosefactorsidentifiedunderthecaption"RisksRelatedtoPanAmerican'sBusiness"intheCompany'smostrecentform40-FandAnnualInformation Form filed with the United States Securities and Exchange Commission and Canadian provincial securitiesregulatory authorities, respectively. Although the Company has attempted to identify important factors that could causeactualresultstodiffermaterially,theremaybeotherfactorsthatcauseresultsnottobeasanticipated,estimated,describedorintended.Investorsarecautionedagainstunduerelianceonforward-lookingstatementsorinformation.Forward-lookingstatementsand informationaredesigned tohelp readersunderstandmanagement's current viewsofournearand longerterm prospects andmay not be appropriate for other purposes. The Company does not intend, nor does it assume anyobligationtoupdateorreviseforward-lookingstatementsorinformation,whetherasaresultofnewinformation,changesinassumptions,futureeventsorotherwise,excepttotheextentrequiredbyapplicablelaw.




Management’sDiscussionandAnalysisFORTHETHREEMONTHSENDEDMARCH31,2021


TABLEOFCONTENTS

Introduction 11

CoreBusinessandStrategy 12

Highlights 13

Environmental,Social,andGovernance 15

OperatingPerformance 16

2021AnnualOperatingOutlook 28

ProjectDevelopmentUpdate 30

OverviewofFinancialResults 31

LiquidityPositionandCapitalResources 36

ClosureandDecommissioningCostProvision 37

RelatedPartyTransactions 38

AlternativePerformanceMeasures(Non-GAAP) 38

RisksandUncertainties 45

SummaryofSignificantAccountingPolicies,StandardsandJudgements 49

DisclosureControlsandProceduresandTechnicalInformation 49

CautionaryNote 51

ManagementDiscussionandAnalysisForthethreemonthsendedMarch31,2021and2020

(tabularamountsareinthousandsofU.S.dollarsexceptnumberofshares,options,warrants,pershareamounts,andperounceamounts,unlessotherwisenoted)


MANAGEMENT’SDISCUSSIONANDANALYSISOFFINANCIALCONDITIONANDRESULTSOFOPERATIONS

May12,2021

INTRODUCTION

ThisManagement’sDiscussionandAnalysis (“MD&A”) is intendedtohelpthereaderunderstandthesignificantfactors that influence the performance of Pan American Silver Corp. and its subsidiaries (collectively “PanAmerican”, “we”, “us”, “our” or the “Company”) and such factors thatmay affect its future performance. ThisMD&AshouldbereadinconjunctionwiththeCompany’sauditedconsolidatedfinancialstatementsfortheyearendedDecember31,2020 (the "2020Financial Statements"), and the relatednotes contained therein,and theunauditedcondensedinterimconsolidatedfinancialstatementsforthethreemonthsendedMarch31,2021(the“Q12021FinancialStatements”),andtherelatednotescontainedtherein.Allamounts in thisMD&A, the2020FinancialStatements,andtheQ12021FinancialStatementsareexpressedinUnitedStatesdollars(“USD”),unlessidentified otherwise. The Company reports its financial position, results of operations and cash flows inaccordancewith International Financial Reporting Standards (“IFRS”), as issuedby the InternationalAccountingStandards Board. Pan American’s significant accounting policies are set out in Note 3 of the 2020 FinancialStatements.

ThisMD&Areferstovariousnon-GenerallyAcceptedAccountingPrinciples(“non-GAAP”)measures,suchas“all-insustainingcostsperouncesold",“cashcostsperouncesold”,“adjustedearnings”and“basicadjustedearningspershare”, "total debt", "capital", and “working capital",which areusedby theCompany tomanageandevaluateoperating performance at each of the Company’s mines and are widely reported in the mining industry asbenchmarks for performance, but do not have standardized meaning under IFRS. To facilitate a betterunderstanding of these non-GAAP measures as calculated by the Company, additional information has beenprovided inthisMD&A.PleaserefertothesectionofthisMD&Aentitled“AlternativePerformance(Non-GAAP)Measures” for a detailed description of “all-in sustaining cost per ounce sold”, “cash costs per ounce sold”,“adjustedearnings“and“basicadjustedearningspershare”,"totaldebt","capital",and“workingcapital”aswellasdetailsoftheCompany’sby-productcreditsandareconciliation,whereappropriate,ofthesemeasurestotheQ12021FinancialStatements.

Anyreferenceto“CashCosts”inthisMD&Ashouldbeunderstoodtomeancashcostsperounceofsilverorgoldsold, net of by-product credits. Any reference to “AISC” in this MD&A should be understood to mean all-insustainingcostspersilverorgoldouncesold,netofby-productcredits.

ExceptforhistoricalinformationcontainedinthisMD&A,thefollowingdisclosuresareforward-lookingstatementswithinthemeaningoftheU.S.PrivateSecuritiesLitigationReformActof1995andforward-looking informationwithinthemeaningofapplicableCanadianprovincialsecurities lawsorarefutureorientedfinancial informationand as such are based on an assumed set of economic conditions and courses of action. Please refer to thecautionarynoteregardingforward-lookingstatementsandinformationatthebackofthisMD&Aandthe“RisksRelated toPanAmerican’sBusiness” contained in theCompany’smost recentAnnual Information Formon filewith theCanadianprovincial securities regulatoryauthoritiesandForm40-Fon filewith theU.S.SecuritiesandExchangeCommission(the“SEC”).AdditionalinformationaboutPanAmericananditsbusinessactivities,includingitsAnnualInformationForm,isavailableonSEDARatwww.sedar.com




COREBUSINESSANDSTRATEGY

PanAmericanengages insilverandgoldminingandrelatedactivities, includingexploration,minedevelopment,extraction,processing,refiningandreclamation.TheCompanyownsandoperatessilverandgoldmineslocatedinPeru,Mexico,Argentina,Bolivia,andCanada.WealsoowntheEscobalmine inGuatemalathat iscurrentlynotoperating. In addition, the Company is exploring for new silver deposits and opportunities throughout theAmericas.TheCompanyislistedontheTorontoStockExchange(Symbol:PAAS)andontheNasdaqGlobalSelectMarket(“NASDAQ”)inNewYork(Symbol:PAAS).

Pan American’s vision is to be theworld’s premier silvermining company, with a reputation for excellence indiscovery,engineering,innovationandsustainabledevelopment.Toachievethisvision,webaseourbusinessonthefollowingstrategy:

• Generate sustainable profits and superior returns on investments through the safe, efficient andenvironmentallysounddevelopmentandoperationofourassets.

• Constantlyreplaceandgrowourmineablereservesandresourcesthroughtargetednear-mineexplorationandglobalbusinessdevelopment.

• Foster positive long-term relationships with our employees, shareholders, communities and localgovernmentsthroughopenandhonestcommunicationandethicalandsustainablebusinesspractices.

• Continuallysearchforopportunitiestoupgradeandimprovethequalityofourassets,bothinternallyandthroughacquisition.

• Encourage our employees to be innovative, responsive and entrepreneurial throughout our entireorganization.

Toexecutethisstrategy,PanAmericanhasassembledasector-leadingteamofminingprofessionalswithadepthofknowledgeandexperience inallaspectsofourbusiness,whichenablestheCompanytoconfidentlyadvanceearlystageprojectsthroughconstructionandintooperation.




Q12021HIGHLIGHTS

Operations

• Coronavirusdisease("COVID-19")pandemicimpact

PanAmericancontinues to implementandenforceprotocols toprotect thehealthandsafetyofourworkforceand communities during the COVID-19 pandemic. These protocols result in lower throughput rates and areimpactingourabilitytotimelyexecuteplannedcapitalinvestments,particularlyatourundergroundmineswherephysicaldistancingmeasureshaveabiggerimpact,aswellasadditionalcostsfordistancing,testing,isolatingandmonitoring.

COVID-19 protocols have had a disproportionate impact on the La Colorada andManantial Espejo operations,which contribute a significant portion of the Company's silver production. This is due to higher rates ofabsenteeismandreducedworkforcedeploymentsattheseoperations,whichisinpartthedriverforthereducedsilverproductionguidanceforboththeseoperations,asfurtherdescribedinthe"2021AnnualOperatingOutlook"section.

• Silverproductionof4.58millionounces

Consolidated silverproduction forQ12021of4.58millionounceswas18% lower than the5.56millionouncesproduced in the threemonths endedMarch 31, 2020 ("Q1 2020"), primarily reflecting lower production at LaColoradaandDolores.AtLaColorada,thenewventilationraisethatwasexpectedtobecompletedinQ12021hasbeendelayeduntilthelaterpartof2021,therebyrestrictingminingrates,asfurtherdescribedinthe"IndividualMine Performance" section of this MD&A. At Dolores, lower silver production is the result of expected minesequencingtohighergoldgradesandlowersilvergrades.

DuetothechallengeswithventilationatLaColorada,andexpectedshortfallsatManantialEspejo,Managementisrevisingitssilverproductionforecastfor2021tobetween20.50and22.00millionounces,asfurtherdescribedinthe"2021AnnualOperatingOutlook"ofthisMD&A.

• Goldproductionof137.6thousandounces

Consolidated gold production forQ1 2021 of 137.6 thousand ounceswas 12% lower than the 156.1 thousandouncesproduced inQ12020,primarily from: lowerproductionatTimmins,asweadjustminingmethods, ratesandsequencingtoaddressgeotechnicalconditionsincertainlevelsoftheBellCreekmine;andlowerproductionatShahuindo,duetolowertonnesplaced,gradesandextractionratesfromoresinthecurrentsectionofthepit;partiallyoffsetbyanincreaseinproductionatDoloresduetohighergoldgradesfromminesequencing,albeitatalower ratioofounces recovered to stackeddue to temporary leachconstraintsduring thecurrent stageofpadconstruction.

TheCompanyreaffirmsits2021originalannualforecastforgoldproduction,aspresentedintheCompany's2020AnnualMD&AdatedFebruary17,2021.

• Basemetalproduction

ZincproductioninQ12021of13.1thousandtonneswasconsistentwithQ12020production.Leadproductionof5.0 thousandtonneswas5% less thanQ12020production.Copperproductionof2.1 thousandtonneswas9%morethanQ12020production.

Asfurtherdescribedinthe"2021"AnnualOperatingOutlook"section,zincandleadguidancehavebeenreviseddownwardtoaccountfortheproductionshortfallsexpectedatLaColorada,whilecopperproductionguidancehasbeenrevisedupwardduetobetterthanexpectedproductionatthePeruvianoperations.




Financial

• Revenueandnetincome

Revenue in Q1 2021 of $368.1millionwas 3% higher than inQ1 2020, primarily due to higher realizedmetalprices,partiallyoffsetbydecreasedquantitiesofmetalsold.

Q12021revenuewas impactedbya$39.9million inventory increase,whichprimarilyrelatedtoathreemonthbuild-upofconcentrateproductionatLaColorada,asaresultofextendednegotiationswithatransportsupplierandchangestosmeltingcontracts.ThatinventoryisexpectedtoberecognizedinrevenueoverQ22021andQ32021.Inaddition,abuild-upininventoryoccurredatDoloresfromleachpadkinetics,whichdelayedproductionlaterinto2021.Bothoftheseitemsarefurtherdescribedinthe"OperatingPerformance"sectionofthisMD&A.

Netlossof$7.6million($0.04basiclosspershare)wasrecordedforQ12021comparedwithanetlossof$77.2million($0.37basiclosspershare)inQ12020.The$69.7millionquarter-over-quarterdecreaseinnetlossmainlyreflectsa$39.9million increase inmineoperatingearnings from increased revenuesand lower costof sales, a$14.7milliondecreaseinincometaxexpense,andan$8.8milliondecreaseincareandmaintenanceexpenditures,all of which are further described in the "Overview of Q1 2021 Financial Results" section of this MD&A. Theincreaseinearningswaspartiallyoffsetbya$10.2millionincreaseininvestmentloss,reflectinglossesrecognizedinQ12021onthefair-valueadjustmentsofcertainequityinvestmentsownedbytheCompany.

Q1 2021 net loss of $7.6 million was significantly impacted by a $39.0 million investment loss, which relatedprimarilytomark-to-marketfair-valueadjustmentsontheCompany'sinvestmentinNewPacificMetals.

Adjustedearnings(1):of$37.4million,($0.18pershare)wasrecordedinQ12021comparedtotheQ12020revisedadjustedearningsof$21.2million($0.10pershare).

Cashflowfromoperations: inQ12021totaled$29.9million,which is$84.2million lessthanthe$114.1milliongeneratedinQ12020,duetolargerincometaxpaymentsandnegativeworkingcapitalchanges.

Q12021cashflowswereimpactedby$61.3millioninincometaxpayments,whichincluded$31.6millioninfinalinstallments for 2020 taxes, and $47.4 million in negative working capital movements, driven mainly by thepreviouslydescribedinventorybuild-ups.Cashflowmovementsarefurtherdescribedinthe"OverviewofQ12021FinancialResults"section.

• Liquidityandworkingcapitalposition

AsatMarch31, 2021, theCompanyhad cashand short-term investmentbalancesof$206.4million, anequityinvestment inMaverixMetals Inc. ("Maverix")withamarket valueof$134.3million,working capitalof$513.0million,andmaintainedanavailable$500.0millionunder itsrevolvingcredit facility (the"CreditFacility").Totaldebtof$30.8millionwasrelatedtoleaseliabilities.

TheCompany's cash and short-term investmentbalancesdecreasedby$72.6million, drivenby a$39.0millionnegativemark-to-markettotheCompany'sinvestments,primarilythoseinNewPacificMetals,anda$33.6milliondrawdownincashandcashequivalents,whichisrelatedtotheaforementionedlargetaxpaymentsandnegativeworkingcapitalmovementsthatimpactedQ12021.

• Q12021CashCosts(1)perouncesold

• SilverSegmentCashCostswere$12.30persilverouncesold.

• GoldSegmentCashCostswere$846pergoldouncesold.

• Q12021All-InSustainingCostsperouncesold(“AISC”)(1)

• SilverSegmentAISCwere$16.99persilverouncesold.

• GoldSegmentAISCwere$1,058pergoldouncesold.




• ConsolidatedAISCpersilverouncesold,includingby-productcreditsfromtheGoldSegmentproduction,werenegative$5.23persilverouncesold.

(1)Adjustedearnings,CashCostsandAISCarenon-GAAPmeasures,pleaserefertothe“AlternativePerformance(Non-GAAP)Measures” section of this MD&A for a detailed reconciliation of these measures to the Q1 2021FinancialStatements.

ENVIRONMENTAL,SOCIAL,ANDGOVERNANCE(ESG)

Pan American is committed to conducting its business in a responsible and sustainablemanner. Our core ESGvaluesare: caring for theenvironment inwhichweoperate; contributing to the long-termdevelopmentofourhost communities; ensuring safe and secureworkplaces for our employees; contributing to thewelfare of ouremployees,localcommunitiesandgovernments;and,operatingtransparently.

Pan American released its 2020 sustainability report (the "Sustainability Report") on May 6, 2021, which isavailable on our website at www.panamericansilver.com. The Sustainability Report articulates our vision ofsustainability, shares our management approach to sustainable development in the context of our business,discloses environmental, workplace and social performance, including challenges and opportunities, anddemonstrates our progress toward our sustainability goals and initiatives. In addition to the Global ReportingInitiative (GRI) Standards, the Sustainability Report takes into consideration the Sustainability AccountingStandards Board (SASB) framework; and Task Force on Climate Related Financial Disclosure (TCFD) reportingframework, which is included in the Climate Change, Energy, and Greenhouse Gas Emissions section of theSustainabilityReport.

Later in2021theCompanyplansonprovidingamid-yearupdateonourprogresswithregardstoour2021ESGgoals.

PanAmerican'sresponsetoCOVID-19

TheCOVID-19pandemiccontinuestobeahumanitariancrisisthroughoutmuchoftheworld,andparticularlyinLatinAmericawheremostofPanAmerican'soperationsarelocated.Wehavebeenengagingwithourworkforceandlocalcommunitiestodeterminehowbesttosupportthemduringthisdifficulttime.Inadditiontodonationsoffood,sanitationsupplies,andpersonalprotectionandmedicalequipmentthroughoutallouroperatingregions,during Q1 2021, Pan American contributedmaterial andmedical supplies to establish a COVID-19 vaccinationcentreinHuayllay,PeruwhereourHuaronmineislocated.ThisinitiativeisinpartnershipwiththelocalbranchofDIRESA,thePeruvianHealthAuthority.




OPERATINGPERFORMANCE

SilverandGoldProduction

ThefollowingtableprovidessilverandgoldproductionateachofPanAmerican’soperationsforthethreemonthperiods ended March 31, 2021 and 2020. Each operation’s production variances are further discussed in the“IndividualMinePerformance”sectionofthisMD&A.

SilverProduction(ounces‘000s)

GoldProduction(ounces‘000s)

Threemonthsended


March31, 2021 2020 2021 2020LaColorada 1,065 1,593 0.5 1.1Huaron 884 771 0.3 0.2Morococha(1) 521 457 0.2 0.3SanVicente(2) 701 738 0.1 0.1ManantialEspejo 697 695 5.9 6.5Dolores 634 1,230 37.0 27.1Shahuindo 65 64 29.5 48.9LaArena 11 8 33.2 28.7Timmins 4 5 31.0 43.3Total 4,583 5,561 137.6 156.1(1) MorocochadatarepresentsPanAmerican's92.3%interestinthemine'sproduction.(2) SanVicentedatarepresentsPanAmerican's95.0%interestinthemine'sproduction.

Consolidated silver production inQ1 2021 of 4.58million ounceswas 18% lower than the 5.56million ouncesproduced inQ12020,whileconsolidatedgoldproduction inQ12021of137.6thousandounceswas12%lowerthan the156.1 thousandouncesproduced inQ12020. The reasons for thedecrease in production are furtherdescribedinthe"Q12021Highlights"and"IndividualMinePerformance"sectionsoftheMD&A.

BaseMetalProduction

ThefollowingtableprovidestheCompany’sbasemetalproductionforthethreemonthperiodsendedMarch31,2021and2020:

BaseMetalProduction


2021 2020Zinc–kt 13.1 13.1Lead–kt 5.0 5.3Copper–kt 2.1 1.9

Zinc, leadandcopperproduction inQ12021was largely in linewithproduction inQ12020,as shortfalls at LaColoradafromventilationconstraintswereoffsetbyhigherproductionatourPeruvianoperations.

CashCostsandAISC

ThequantificationofbothCashCostsandAISCmeasuresisdescribedindetail,andwhereappropriatereconciledto the Q1 2021 Financial Statements, in the "Alternative (Non-GAAP) Performance Measures" section of thisMD&A.




ThefollowingtablereflectstheCashCostsandAISCnetofby-productcreditsateachofPanAmerican’soperationsforthethreemonthsendedMarch31,2021,ascomparedtothesameperiodin2020.

CashCosts(1)

($perounce)AISC(1)

($perounce)

Threemonthsended

March31,

Threemonthsended

March31,

2021 2020 2021 2020LaColorada 15.62 7.23 42.44 9.98Dolores(2) - 0.07 - 23.29Huaron 2.35 7.95 4.82 10.56Morococha 13.89 12.29 17.47 20.23SanVicente 13.35 14.71 14.20 17.08ManantialEspejo 19.78 13.69 24.43 14.85SilverSegmentConsolidated(2)(3) 12.30 8.18 16.99 15.26Dolores(2) 718 - 723 -Shahuindo 751 617 844 775LaArena 598 725 1,072 1,212Timmins 1,292 945 1,568 1,051GoldSegmentConsolidated(2)(3) 846 757 1,058 969ConsolidatedAISCpersilverouncesold(4) (5.23) 3.49ConsolidatedAISCbeforeNRVinventoryadjustments (2.90) 1.41

(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&AforadetaileddescriptionofthesemeasuresandwhereappropriateareconciliationofthemeasuretotheQ12021FinancialStatements.

(2) Due to the expectedmine sequencing into a higher gold zone of themine plan at Dolores, the Company has determined that themine is betteridentifiedasaGoldSegmentoperationfrom2021onwards.Thus,asofQ12021,CashCostsandAISCatDoloresarereportedonaperounceofgoldbasisandareincludedaspartoftheGoldSegmentCashCostsandAISCcalculations.DoloresCashCostsandAISCinthe2020comparableperiodwerereported on a per ounce of silver basis and included as part of the Silver Segment Cash Costs and AISC calculations, as previously reported. Forcomparisonpurposes,hadDoloresbeenreportedintheGoldSegmentin2020,GoldSegmentCashCostsandAISCforQ12020wouldhavebeen$772and$1,126,respectively,andSilverSegmentCashCostsandAISCforQ12020wouldhavebeen$10.29and$13.16,respectively.

(3) SilverSegmentCashCostsandAISCarecalculatednetof credits for realized revenues fromallmetalsother thansilver ("silver segmentby-productcredits"),andarecalculatedperounceofsilversold.GoldsegmentCashCostsandAISCarecalculatednetofcreditsforrealizedsilverrevenues("goldsegmentby-productcredits"),andarecalculatedperounceofgoldsold.ConsolidatedAISCisbasedontotalsilverouncessoldandarenetofby-productcreditsfromallmetalsotherthansilver("silverbasisconsolidatedby-productcredits").

(4) Consolidatedsilverbasistotaliscalculatedpersilverouncesoldwithtotalgoldrevenuesincludedwithinby-productcredits.G&AcostsareincludedintheconsolidatedAISC,butnotallocatedincalculatingAISCforeachoperation.

CashCosts

SilverSegmentCashCostsperounceinQ12021were$12.30,$4.12higherthaninQ12020.Theincreaseisdrivenprimarilyfrom:(i)reducedby-productcreditsperouncefromthemoveofDoloresintotheGoldSegmentduetothechangingproductionprofileofthemineadding$2.11perouncetoSilverSegmentCashCosts; (ii) increasedcostsperounceatLaColoradadueto lower throughputandgrades fromthetemporaryventilationconstraintsadding$2.44perouncetoSilverSegmentCashCosts;(iii)higheroperatingcostsatManantialEspejoduetotheramp-upofminingactivitiesatCOSEandJoaquinadding$1.27perouncetoSilverSegmentCashCosts;partiallyoffsetby,(iv)lowercostsatHuaronfromanincreaseinby-productbasemetalproductionandmetalprices,whichreducedSilverSegmentCashCostsby$1.55perounce.

GoldSegmentCashCostsperounceinQ12021were$846,$89higherthaninQ12020.GoldSegmentCashCostswere negatively impacted by lower throughput and grades at Timmins while addressing the geotechnicalconditionsatBellCreekasmentionedpreviouslywhichadded$103perouncetoGoldSegmentCashCosts,andhighercostsatShahuindofromlowertonnesplaced,gradesandextractionratesduetominesequencingwhichadded $70 per ounce toGold Segment Cash Costs. These increaseswere partially offset by the decrease fromincludingDoloresasaGoldSegmentoperation,whichbenefitedGoldSegmentCashCostsby$42perounceinthecurrentquarter,aswellasdecreasedCashCostsatLaArenaduetohigheroreminingratesinthecurrentminesequencingleadingtohigherproductionwhichbenefitedGoldSegmentCashCostsby$42perounce.




AISC

Silver Segment AISC for Q1 2021 of $16.99 per ouncewas $1.73 higher thanQ1 2020. The increase primarilyreflectsthesamefactorsthatimpactedCashCostsdescribedabove,partiallyoffsetbya$0.91perouncedecreasein sustaining capital and a $1.59 per ounce decrease in negative net realizable value ("NRV") inventoryadjustmentsperounce,bothofwhichwere lower than thepreviousperioddue to themoveofDolores to theGoldSegment.

GoldSegmentAISC forQ12021of$1,058perouncewas$89higher thanQ12020, largely reflecting thesamefactors impacting Gold Segment Cash Costs described above, while a $74 per ounce increase from highersustainingcapitalperouncewasoffsetbya$75perouncebenefitfromcost-reducingNRVinventoryadjustmentsatDoloresinQ12021.

ConsolidatedsilverbasisAISCwasnegative$5.23inQ12021,an$8.72decreasefromQ12020.Thequarter-over-quarter decrease was largely the result of a $19.9million benefit to costs from the change in NRV inventoryadjustmentsgoingfromalossinQ12020toagaininQ12021,aswellashigherby-productcredits,whichlargelyoffsetthereductioninsilversalesvolumes.




IndividualMinePerformance

An analysis of performance at each operation inQ1 2021 comparedwithQ1 2020 follows. The project capitalamountsinvestedinQ12021arefurtherdiscussedinthe"ProjectDevelopmentUpdate"sectionofthisMD&A.

LaColoradaOperation

Threemonthsended

March31, 2021 2020Tonnesmilled–kt 133.5 174.2

Averagesilvergrade–gramspertonne 276 312

Averagezincgrade-% 1.98 2.70

Averageleadgrade-% 1.04 1.34

Production:Silver–koz 1,065 1,593

Gold–koz 0.53 1.08

Zinc–kt 2.25 4.09

Lead–kt 1.17 1.98CashCosts-$perounce(1) 15.62 7.23Sustainingcapital-$thousands(2) 5,386 4,753Careandmaintenancecosts-$thousands — —AISC-$perounce(1) 42.44 9.98Payablesilversold-koz 225 1,839(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetailed

reconciliationofthesemeasurestocostofsales.(2) Sustainingcapitalexpendituresexclude$4.1millionofinvestingactivitycashoutflowsforQ12021(Q12020:$3.6million)relatedtoinvestmentcapital

incurredontheLaColoradaprojects,asdisclosedinthe“ProjectDevelopmentUpdate”sectionofthisMD&A.

Q12021vs.Q12020

Production:

• Silver: 33% decrease, primarily due to lower grades and reduced throughput, largely from restrictedminingratesduetoablockagethatdevelopednearthebottomofthenewsurfacetothe345metrelevelprimary ventilation raise, from sloughing of the raisewall during shotcreting and commissioning inQ12021;aswellastheimpactofCOVID-19operatingprotocolsresultinginhigherabsenteeismandlimitingworkforce deployments. Efforts to bypass the blockage through drifting from a nearby ramp andadditional raise boring are ongoing and expected to be completed in Q3 2021. Once completed, theventilationprojectsareexpectedtoallowforanormalizationinthroughputratesandminesequencingin2022.

• By-products: 45% and 41% decreases in zinc and lead production, respectively, due to the factorsdescribedabove.

CashCosts:increased$8.39perounce,primarilyduetolowerthroughput,aswellaslowersalesfromthesilver-zinc-lead rich concentratesproducedat theminedue toa three-monthbuild-up in inventory froma change inlogisticsanddelayedrevenuerecognitionfromchangesincertainsmeltingandrefiningsalecontracts.Thebuild-upininventoryisvaluedat$30.3millionatQ1averagerealizedpricesandisexpectedtobesoldthroughouttheremainderof2021.

SustainingCapital:wasconsistentwiththepriorperiod,andisprimarilyrelatedtoventilationprojects,atailingsstoragefacilitylift,equipmentreplacements,leasepaymentsforequipment,andnear-mineexplorationactivities.

AISC: the $32.46 per ounce increase was due to the same factors affecting Cash Costs, in addition to highersustainingcapitalperouncefromtheimpactoflowersilversales.




HuaronOperation

Threemonthsended

March31, 2021 2020Tonnesmilled-kt 237.7 203.2




Averagecoppergrade-% 0.87 0.89

Production:Silver–koz 884 771

Gold–koz 0.28 0.16

Zinc–kt 5.13 3.85

Lead–kt 2.30 1.96

Copper–kt 1.56 1.37CashCosts-$perounce(1) 2.35 7.95Sustainingcapital-$thousands 1,612 1,413Careandmaintenancecosts-$thousands — 2,254AISC-$perounce(1) 4.82 10.56Payablesilversold–koz 709 596(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetailed

reconciliationofthesemeasurestocostofsales.

Q12021vs.Q12020

Production:

• Silver:15%higher,primarilyfromhigherthroughputratesrelativetoQ12020,whichhadbeenimpactedbytheCOVID-19relatedminesuspensioninthesecondhalfofMarch2020.

• By-products:zinc,leadandcopperproductionwere33%,18%and14%higher,respectively,reflectingthesamefactorsaffectingsilverproduction.Zincproductionalsobenefitedfromimprovedgradesduetominesequencing.

CashCosts:decreased$5.60perounce,primarilyduetohigherby-productcreditsperouncefromimprovedbasemetalproductionandprices,whichoffsetthehigheroperatingcostsperouncefrommodestescalationsinwagesandconsumables,increasedminingdepth,anda$1.8millionone-timeadjustmentrelatedtotheterminationofacommercial contract which is expected to be offset by lower treatment and refining charges through theremainderof2021.

Sustaining Capital: consistent with the prior period, and comprised mainly of equipment and facility leases,equipmentreplacementsandnear-mineexplorationactivities.

AISC:decreasedby$5.74perounceasaresultofthesamefactorsthatcausedthedecreaseinCashCosts.




MorocochaOperation(1)

Threemonthsended

March31, 2021 2020Tonnesmilled–kt 149.2 138.9






Gold–koz 0.16 0.28

Zinc–kt 3.72 4.12

Lead–kt 1.43 1.33

Copper–kt 0.37 0.37CashCosts-$perounce(2) 13.89 12.29Sustainingcapital(100%)-$thousands(3) 1,735 2,236Careandmaintenancecosts-$thousands — 2,203AISC-$perounce(2) 17.47 20.23Payablesilversold(100%)-koz 514 408(1) ProductionfiguresareforPanAmerican’s92.3%shareonly,unlessotherwisenoted.(2) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetailed

reconciliationofthesemeasurestocostofsales.(3) Sustainingcapitalexpendituresexclude$0.1millionofinvestingactivitycashoutflowsforQ12021(Q12020:$0.4million)relatedtoinitialengineering

onapotentialrelocationoftheMorocochaplant,andisincludedinOtherProjects,asdisclosedinthe“ProjectDevelopmentUpdate”sectionofthisMD&A.

Q12021vs.Q12020

Production:

• Silver:14%higher,primarilyfromhigherthroughputratesrelativetoQ12020,whichhadbeenimpactedbytheCOVID-19relatedminesuspensioninthesecondhalfofMarch2020.

• By-products: zinc production decreased 10% due to lower grades from mine sequencing, while leadproductionincreased8%fromthehigherthroughput.Copperproductionwasconsistentwiththepreviousperiod,aslowergradesfromminesequencingwereoffsetbythehigherthroughputrates.

CashCosts:were$1.60perouncehigher, primarilydue to lowerby-product creditsper silverounce sold fromminesequencingintolowerbasemetalgradesandhighersilvergrades.

SustainingCapital:primarilyrelatedtonear-mineexploration,mineandcampinfrastructure,andequipmentandfacilityleases.

AISC: were $2.76 per ounce lower due to a decrease in sustaining capital and a decrease in NRV inventoryadjustments,whichhadimpactedQ12020duetothedeclineinpricescoincidentwiththeonsetoftheCOVID-19pandemic.ThesedecreasesinAISCmorethanoffsetthefactorsincreasingquarter-over-quarterCashCosts.




SanVicenteOperation(1)

Threemonthsended

March31, 2021 2020Tonnesmilled–kt 89.0 82.6Averagesilvergrade–gramspertonne 265 302Averagezincgrade-% 2.58 1.59Averageleadgrade-% 0.13 —



Gold–koz 0.08 0.10Zinc–kt 1.96 1.05Lead–kt 0.11 —Copper–kt 0.16 0.18

CashCosts-$perounce(2) 13.35 14.71Sustainingcapital(100%)-$thousands 558 1,925Careandmaintenancecosts-$thousands — —AISC-$perounce(2) 14.20 17.08Payablesilversold(100%)-koz 732 840(1) ProductionfiguresareforPanAmerican’s95.0%shareonly,unlessotherwisenoted.(2) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetailed


Q12021vs.Q12020

Production:

• Silver:5%lower,primarilyfromlowergradesduetominesequencingandthenarrowingstructureoftheveinsystem,whichwaspartiallyoffsetbyincreasedthroughput.

• By-products:an87%increaseinzincproductionfromminesequencingintozinc-richzonesofthedeposit.Thesmalldecreaseincopperproductionwasoffsetbyintentionallyincreasedleadproductiondrivenbyourcommercializationstrategytotakeadvantageofthebulksilver-leadconcentratemarket.

CashCosts:were$1.36perouncelower,primarilyfromincreasedby-productcreditsperouncefromhigherbasemetal grades and prices and lower silver ounces sold, which more than offset higher royalty expenses fromincreasedmetalprices.

Sustaining Capital: primarily related tomine infrastructure and tailings storage facility investments, equipmentreplacements,near-mineexploration.

AISC:the$2.88perouncedecreasewasprimarilyduetothesamefactorsthatincreasedCashCosts,inadditiontolowersustainingcapital.




ManantialEspejoOperation

Threemonthsended



Averagegoldgrade–gramspertonne 1.30 1.33


Gold–koz 5.89 6.45CashCosts-$perounce(1) 19.78 13.69Sustainingcapital-$thousands(2) 1,378 716Careandmaintenancecosts-$thousands — 1,973AISC-$perounce(1) 24.43 14.85Payablesilversold-koz 631 730(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetailed

reconciliationofthesemeasurestocostofsales.(2) Sustainingcapitalexpendituresexclude$nilofinvestingactivitycashoutflowsforQ12021(Q12020:$3.5million)relatedtothedevelopmentofthe

JoaquinandCOSEprojects,asdisclosedinthe“ProjectDevelopmentUpdate”sectionofthisMD&A.

Q12021vs.Q12020

Production:

• Silver andGold: silverproductionwas flat,while goldproductionwas9% lower. ThroughputduringQ12021was constrainedby reducedworkforcedeploymentsdue toCOVID-19 relatedabsenteeism,whichimpactedtheexpectedramp-upinproductionfromCOSEandJoaquin.

CashCosts:were$6.09perouncehigher,primarilyasa resultofhigheroperating costs from increasedminingactivitiesattheCOSEandJoaquinsatellitedeposits,partiallyoffsetbyhighergoldprices.

SustainingCapital:primarilyrelatedtoleasepaymentsfordieselgeneratorsonsiteandprocessplantequipment.

AISC:the$9.58perounceincreasewaslargelyduetothesamefactorsaffectingCashCosts,inadditiontoacostincreasing$1.4millionNRVinventoryadjustmentinQ12021,andhighersustainingcapital.




DoloresOperation

Threemonthsended

March31, 2021 2020Tonnesplaced–kt 1,859.8 1,905.0



Production:Silver–koz 634 1,230

Gold–koz 37.0 27.1

CashCosts-$pergoldounce(1)(2) 718 843

Sustainingcapital-$thousands 8,919 15,124

Careandmaintenancescosts-$thousands — —

AISC-$pergoldounce(1)(2) 723 1,857Payablegoldsold 31,478 26,335(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetailed

reconciliationofthesemeasurestocostofsales.PreviouslyreportedCashCostsandAISConapersilverouncebasisaredisclosedintheCashCostsandAISCsection.

(2) Aspreviouslydescribed,beginningin2021,DoloresCashCostsandAISCarebeingreportedonaperounceofgoldbasiswithsilverconsideredasaby-product,ratherthanonasilverbasiswithgoldconsideredasaby-product. InQ12020,silverbasisCashCostsandAISCwerereportedas$0.07and$23.29perounce,respectively.

Q12021vs.Q12020

Production:

• Silver: 48% lower, primarily due to the expected decrease in silver grades frommine sequencing intohighergoldgradezones.

• Gold:36%higher,asexpected,froma76%increaseingradesfromminesequencing,partiallyoffsetbya21%decrease in the ratioofounces recovered to stackeddue to the timingof leach recovery kinetics,whichareexpectedtonormalizethroughouttheremainderof2021.

CashCosts:decreased$125perounce,primarilyfromhighergoldgradesandloweroperatingcosts,partlyfromthedepreciationoftheMXNrelativetotheUSD,whichmorethanoffsetlowerby-productcreditsperouncefromlowersilversales.

SustainingCapital:the$6.2millionreductionreflectstheminetransitioningtoalowerlowerstripratioportionofthemineplan.SustainingcapitalinQ12021wasprimarilyrelatedtoleachpadexpansions.

AISC:decreased$1,134perouncedue to thesame factorsaffectingCashCosts, inaddition to lowersustainingcapitalexpenditures,anda$20.4millionbenefitfromNRVinventoryadjustmentswhichwerecostreducinginthecurrentperiodbutcostincreasinginthepriorperiod.




ShahuindoOperation

Threemonthsended

March31, 2021 2020Tonnesplaced-kt 2,806.5 2,932.1




Gold–koz 29.54 48.91CashCosts-$perounce(1) 751 617Sustainingcapital-$thousands(2) 2,681 7,844Careandmaintenancecosts-$thousands — 857AISC$perounce(1) 844 775Payablegoldsold 31,736 52,002(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetailed

reconciliationofthesemeasurestocostofsales.(2) Sustainingcapitalexpendituresexclude$0.1millionofinvestingactivitycashoutflowsforQ12021(Q12020:$0.1million)relatedtoleasepaymentsfor

thecrushingandagglomerationplantcompletedbyTahoe,andisincludedinOtherProjects,asdisclosedinthe“ProjectDevelopmentUpdate”sectionofthisMD&A.

Q12021vs.Q12020

Production:

• Gold:40%lower,primarilyduetoacombinationoflowertonnesplaced,gradesandextractionratesfromminesequencingintoanewareaofthepitcontainingahigherproportionoffine-grainoresthathadtobestockpileduntilasufficientquantityofcoarseroresareencountered forblendingbeforeplacingontheheaps.Inaddition,theratioofouncesrecoveredtostackedwasanomalousrelativetoQ12020whenin-heap inventories were released without ore placement due to the COVID-19mine suspension inmid-March2020.

CashCosts:were$134perouncehigher,primarilyduetothelowergoldproductionwhichincreasedcostsonaperouncebasis.

SustainingCapital:relatedprimarilytoleachpadexpansions,siteinfrastructureimprovements,andpaymentsforleasedminingequipment.ThedecreaseoverQ12020wasduelargelytothetimingofpayments.

AISC:were $69 per ounce higher due to the same factors affecting Cash Costs, partially offset by the lowersustainingcapitalexpenditures.




LaArenaOperation

Threemonthsended

March31, 2021 2020Tonnesplaced-kt 2,040.8 1,048.4




Gold–koz 33.15 28.70CashCosts-$perounce(1) 598 725Sustainingcapital-$thousands 14,719 12,698Careandmaintenancecosts-$thousands — 823AISC-$perounce(1) 1,072 1,212Payablegoldsold 31,351 26,662(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetailed


Q12021vs.Q12020

Production:

• Gold:16%higher,asaresultofincreasedthroughputduetohigherorerelativetowastemined,drivenbyminesequencing,aswellasafullquarterofoperationsin2021comparedwiththeCOVID-19relatedminesuspension inmid-March 2020. This increased throughputmore than offset the lower ratio of ouncesrecoveredtostacked,relatedtoananomalousratioofouncesrecoveredtostackedcausedbythereleaseof in-heap inventories without ore placement that occurred during to the government mandatedCOVID-19minesuspensioninmid-March2020

CashCosts:decreasedby$127,primarilyreflectinghigherproductionandsalesfromthedecreaseinthewastetooreminingratio.

Sustaining Capital: comprised mainly of capitalized deferred stripping, leach pad expansions, near-mineexploration,andothercampandmineinfrastructure.

AISC:decreasedby$140perounceduetothesamefactorsaffectingCashCosts.




TimminsOperation

Threemonthsended


Averagesilvergrade–gramspertonne — —



Gold–koz 30.98 43.31CashCosts-$perounce(1) 1,292 945Sustainingcapital-$thousands(2) 8,222 3,498Careandmaintenancecosts-$thousands — —AISC-$perounce(1) 1,568 1,051Payablegoldsold 33,200 43,480(1) CashCostsandAISCarenon-GAAPmeasures.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetailed

reconciliationofthesemeasurestocostofsales.(2) Sustainingcapitalexpendituresexclude$0.6millionofinvestingactivitycashoutflowsforQ12021(Q12020:$1.0million)relatedtoinvestmentcapital

incurredontheTimminsprojects,asdisclosedinthe“ProjectDevelopmentUpdate”sectionofthisMD&A.

Q12021vs.Q12020

Production:

• Gold:28%lower,asaresultoflowerthroughput,grades,andrecoveryrates,fromadjustmentsmadetotheminingmethodsandgroundsupportsystemstoaddressgeotechnicalconditions incertain levelsoftheBellCreekmineresultinginreducedminingratesandchangestominesequencing,andabuild-upofin-process inventory at the mill during Q1 2021. Modifications to the Bell Creek mining method andground support standards are being implemented to adapt to wider ore extensions which are beingdevelopedforminingathigherratesfromBellCreeklaterintheyear.

CashCosts:anincreaseof$347perounce,primarilyasaresultofthelowerproduction.

Sustaining Capital: expenditures primarily related to tailings storage facility expansions, mine equipmentrefurbishmentsandreplacements,near-mineexploration,andleasepaymentsforminingequipment.

AISC:the$517perounceincreasereflectsthesamefactorsthataffectedCashCosts,aswellashighersustainingcapitalperounce.




2021ANNUALOPERATINGOUTLOOK

All2021 forecastamounts in thissectionrefer to the2021annual forecast,asprovided in theCompany's2020AnnualMD&AdatedFebruary17,2021 ("2021Forecast").Theseestimatesare forward-lookingstatementsandinformationthataresubjecttothecautionarynoteassociatedwithforward-lookingstatementsandinformationattheendofthisMD&A.

ProductionRelativetoForecast:

ThefollowingtablesummarizestheQ12021metalproductioncomparedtothe2021Forecastamount,aswellastheCompany's2021MayRevisedForecast:

2021OriginalForecast

Q12021Actual

2021MayRevisedForecast

Silver–Moz 22.50-24.00 4.58 20.50-22.00Gold–koz 605.0-655.1 137.6 605.0-655.1Zinc–kt 60.7-64.5 13.1 55.5-60.5Lead–kt 23.4-25.7 5.0 21.0-23.5Copper–kt 7.1-8.0 2.1 8.5-9.0

Based on year-to-date production results and the expected production for the remainder of the year,Managementis loweringtheestimatedannualconsolidatedsilverproductiontobetween20.50to22.00millionounces,reflectingchangesattheLaColoradaandManantialEspejomines,furtherdescribedbelow.

• At LaColorada, theCompany is reducing its full-year2021 silverproductionguidancebyapproximately20%to25%giventheextendedventilationconstraintstheoperationfaceswhilecompletingtheby-passoftheblockageatthebottomoftheprimaryventilationraisethatwasfurtherdiscussedinthe"IndividualMine Performance" section of this MD&A, as well as lower than originally anticipated workforcedeploymentsduetosevereregionalCOVID-19epidemicconditions.

• AtManantialEspejo,theCompanyisreducingthefull-year2021silverproductionguidanceforManantialEspejo by approximately 8 to 10%, reflecting higher than originally anticipated COVID-19 relatedabsenteeismandreducedworkforcedeployments.

Managementisalsorevisingitsestimatesforzinc,leadandcopperproductiontoreflecttheexpectedproductionshortfallsatLaColorada,whichwaspartiallyoffsetbybetterthanexpectedproductionatHuaronandMorococha.




CashCostsandAISCComparedtoForecast:

ThefollowingtablesummarizesCashCostsandAISCforeachoperationforQ12021comparedtotherespective2021Forecastamounts,aswellasthe2021MayRevisedForecast.Theseforecastestimatesarelargelyinfluencedby Management's assumptions and estimates for productivity, input costs, commodity prices and currencyexchangerates.

CashCosts(1)

($perounce)AISC(1)

($perounce)

2021OriginalForecast(2)

Q12021Actual 2021MayRevised

Forecast(3)2021OriginalForecast(2)

Q12021Actual 2021MayRevised

Forecast(3)

SilverSegment:LaColorada 4.00-5.00 15.62 9.80-11.20 8.50-9.50 42.44 15.50-16.90Huaron 4.80-7.90 2.35 (1.60)-0.60 9.50-12.50 4.82 3.70-5.90Morococha 10.00-14.20 13.89 5.60-8.50 13.50-17.50 17.47 9.10-11.80SanVicente 12.30-13.50 13.35 11.60-13.40 16.75-17.75 14.20 16.50-18.20ManantialEspejo 16.30-17.30 19.78 21.80-23.70 19.00-20.00 24.43 24.40-26.10Total(4) 8.50-10.00 12.30 9.60-11.60 12.50-14.00 16.99 14.25-15.75GoldSegment:Dolores 665-820 718 nochange 850-1,000 723 nochangeShahuindo 715-795 751 nochange 1,125-1,250 844 nochangeLaArena 870-940 598 nochange 1,275-1,400 1,072 nochangeTimmins 1,085-1,160 1,292 nochange 1,375-1,450 1,568 nochangeTotal 825-925 846 nochange 1,135-1,250 1,058 nochangeConsolidatedSilverBasis(5) (2.80)-2.70 (5.23) nochange(1) Cash Costs and AISC are non-GAAPmeasures. Please refer to the “Alternative Performance (Non-GAAP)Measures” section of thisMD&A for a

detaileddescriptionofthesecalculationsandareconciliationofthesemeasurestotheQ12021FinancialStatements.(2) ThecashcostsandAISCforecastsassumeaveragemetalpricesof$23.50/ozforsilver,$1,825/ozforgold,$2,700/tonne($1.22/lb)forzinc,$1,900/

tonne($0.86/lb)forlead,and$7,400/tonne($3.36/lb)forcopper;andaverageannualexchangeratesrelativeto1USDof20.00fortheMexicanpeso("MXN"),3.50forthePeruviansol("PEN"),96.67fortheArgentinepeso("ARS"),7.00fortheBolivianboliviano("BOB"),and$1.30fortheCanadiandollar("CAD").

(3) ThecashcostsandAISCforecastsassumerealizedmetalpricesforQ12021andthefollowingmetalpricesfortheremainderof2021:of$24.00/ozforsilver,$2,850/tonne($1.28/lb) forzinc,$2,000/tonne($0.91/lb) for lead,$9,500/tonne($4.20/lb) forcopper,and$1,750/oz forgold;andaverageannual exchange rates relative to 1USDof 20.00 for theMexicanpeso ("MXN"), 3.50 for thePeruvian sol ("PEN"), 96.67 for theArgentinepeso("ARS"),7.00fortheBolivianboliviano("BOB"),and$1.25fortheCanadiandollar("CAD").

(4) AsshowninthedetailedquantificationofconsolidatedAISC,includedinthe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&A,corporategeneralandadministrativeexpense,andexplorationandprojectdevelopmentexpenseareincludedinconsolidated(silverbasis)AISC,butarenotallocatedamongsttheoperationsandthusarenotincludedineitherthesilverorgoldsegmenttotals.

(5) Consolidatedtotaliscalculatedpersilverouncesoldwithgoldrevenuesincludedintheby-productcredits.

Basedon therevisions toproduction forecastsdetailed in theprevioussection,andhigher thanbudgetedbasemetalprices realized inQ12021andanticipated for the remainderof theyear,wehavealso revisedourSilverSegmentCashCostsandAISCguidance,asfurtherdetailedinthetableabove.




CapitalExpendituresRelativetoForecast:

ThefollowingtablesummarizestheQ12021capitalexpenditurescomparedtothe2021Forecast:

2021CapitalExpenditures($millions)

Q12021Actual

2021OriginalForecast(1)

LaColorada 5.4 27.0-29.5Huaron 1.6 14.5-15.5Morococha 1.7 6.0-7.0SanVicente 0.6 13.5-14.5ManantialEspejo 1.4 6.5-7.5Dolores 8.9 26.0-30.0Shahuindo(1) 2.7 66.5-68.0LaArena 14.7 44.5-45.0Timmins 8.2 40.5-43.0SustainingCapitalSub-total 45.0 245.0-260.0LaColoradaSkarnproject 4.1 50.0-55.0Timminsexpansion 0.6 5.0Other 0.2 —ProjectCapitalSub-total 4.9 55.0-60.0TotalCapital 49.9 300.0-320.0

(1) AsdescribedinthissectionoftheMD&A,theforecast2021annualsustainingcapitalamountfortheShahuindooperationhasbeenreducedfromtheoriginalforecastamountasincludedinthistable.

Wearerevisingoursustainingcapitalexpenditurestoreflectthetimingofcashoutflowsfortheongoingprojectsat our Shahuindo mine, which is expected to be $15.0 million lower than original guidance, decreasing thesustainingcapitalrangetheretobetween$51.5millionand$53.0millionandtheconsolidatedsustainingcapitalrange to between $230.0 million and $245.0 million. All other sustaining and project capital estimates areexpectedtoremainthesame.

PROJECTDEVELOPMENTUPDATE

ThefollowingtablereflectstheamountsspentoneachofPanAmerican’smajorprojects inQ12021comparedwithQ12020:

ProjectDevelopmentCapital ThreemonthsendedMarch31,(thousandsofUSD)

2021 2020LaColoradaSkarnProject 4,082 3,642

JoaquinandCOSEprojects — 3,545

Timminsprojects 644 1,008Other 225 477Total $ 4,951 8,672

DuringQ1 2021, the Company invested $5.0million, largely in exploration drilling activities at the La ColoradaSkarnprojectandtheWetmoreprojectatTimmins.




OVERVIEWOFQ12021FINANCIALRESULTS

SelectedAnnualandQuarterlyInformation

Thefollowingtablessetoutselectedquarterlyresultsforthepastninequartersaswellasselectedannualresultsforthepasttwoyears.Thedominantfactorsaffectingresultsinthequartersandyearspresentedbelowarethevolatilityofrealizedmetalpricesandthetimingofsales,whichvarywiththetimingofshipmentsandimpairmentcharges.Thefourthquarterof2019includedimpairmentchargestotheManantialEspejomineandtheCOSEandJoaquinprojects.

2021QuarterEnded

(InthousandsofUSD,otherthanpershareamounts) March31Revenue $ 368,099Mineoperatingearnings $ 89,964Earningsfortheperiodattributabletoequityholders $ (7,798)Basicearningspershare $ (0.04)Dilutedearningspershare $ (0.04)Cashflowfromoperatingactivities $ 29,850Cashdividendspaidpershare $ 0.07OtherfinancialinformationTotalassets $ 3,362,610Totallong-termfinancialliabilities(1) $ 255,536Totalattributableshareholders’equity $ 2,579,734(1) Total long-term financial liabilities are comprised of non-current liabilities excluding deferred tax liabilities, deferred revenue, and share purchase

warrantliabilities.

2020 QuarterEndedYearEnded

(InthousandsofUSD,otherthanpershareamounts) March31 June30 Sept30 Dec31 Dec31Revenue $ 358,428 $ 249,509 $ 300,414 $ 430,461 $ 1,338,812Mineoperatingearnings $ 50,058 $ 48,386 $ 124,561 $ 137,172 $ 360,177Earnings(loss)fortheperiodattributabletoequityholders $ (76,807) $ 20,063 $ 65,741 $ 168,885 $ 177,882Basicearnings(loss)pershare $ (0.37) $ 0.10 $ 0.31 $ 0.80 $ 0.85Dilutedearnings(loss)pershare $ (0.37) $ 0.10 $ 0.31 $ 0.80 $ 0.85Cashflowfromoperatingactivities $ 114,051 $ 62,750 $ 114,943 $ 170,571 $ 462,315Cashdividendspaidpershare $ 0.05 $ 0.05 $ 0.05 $ 0.07 $ 0.22OtherfinancialinformationTotalassets $ 3,433,875Totallong-termfinancialliabilities(1) $ 277,696Totalattributableshareholders’equity $ 2,602,519(1) Total long-term financial liabilities are comprised of non-current liabilities excluding deferred tax liabilities, deferred revenue, and share purchase

warrantliabilities.




2019 QuarterEndedYearEnded

(InthousandsofUSD,otherthanpershareamounts) March31(1) June30(1) Sept30(1) Dec31 Dec31Revenue(2) $ 253,699 $ 340,494 $ 352,187 $ 404,379 $ 1,350,759Mineoperatingearnings(2) $ 15,770 $ 51,058 $ 63,850 $ 98,610 $ 229,288Earningsfortheperiodattributabletoequityholders $ 2,783 $ 18,371 $ 37,657 $ 51,927 $ 110,738Basicearningspershare $ 0.02 $ 0.09 $ 0.18 $ 0.26 $ 0.55Dilutedearningspershare $ 0.02 $ 0.09 $ 0.18 $ 0.26 $ 0.55Cashflowfromoperatingactivities $ (12,911) $ 83,518 $ 81,948 $ 129,473 $ 282,028Cashdividendspaidpershare $ 0.035 $ 0.035 $ 0.035 $ 0.035 $ 0.14OtherfinancialinformationTotalassets $ 3,461,682Totallong-termfinancialliabilities(3) $ 517,776Totalattributableshareholders’equity $ 2,463,099(1) Amounts differ from those originally reported in the respective quarter due to: (1) the finalization of the purchase price allocation, which was

retrospectively applied, themost significant changebeing the removal of thepreviously recorded$30.5Mbargain purchase gain; and, (2) amountspresentedretrospectivelyasifTimminshadnotbeenclassifiedasheldforsale.

(2) Concurrent with the acquisition of Tahoe, the Company classified the Timmins mines as a discontinued operation held for sale and, in Q3 2019,reclassifiedtobeacontinuingoperation.Asaresult,thepreviouslyrecordedfirstandsecondquartershavebeenrecasttopresenttheTimminsminesascontinuingoperations.

(3) Total long-term financial liabilities are comprised of non-current liabilities excluding deferred tax liabilities, deferred revenue, and share purchasewarrantliabilities.




IncomeStatement:Q12021vs.Q12020

Netlossof$7.6millionwasrecordedinQ12021comparedtoalossof$77.2millioninQ12020,whichcorrespondstobasiclossespershareof$0.04and$0.37,respectively.

ThefollowingtablehighlightsthedifferencesbetweentheQ12020andQ12021netlosses:

Netloss,threemonthsendedMarch31,2020 $ (77,235) Note

Revenue:

Increasedrealizedmetalprices $ 75,424Lowerquantitiesofmetalsold (70,117)Decreaseddirectsellingcosts 1,844Decreasednegativesettlementadjustments 2,520

Totalincreaseinrevenue $ 9,671 (1)Costofsales:

Decreasedproductioncostsandincreasedroyaltycharges $ 27,179 (2)

Decreaseddepreciationandamortization 3,056 (3)

Totaldecreaseincostofsales $ 30,235

Decreasedincometaxexpense 14,743 (4)

Decreasednetlossoncommoditycontracts,derivativesandassetsales 11,268 (5)

Increasedinvestmentloss (10,209) (6)

Decreasedcareandmaintenancecosts 8,758 (7)

Decreaseddilutionloss,netofshareofincomefromassociate 3,127 (8)

Decreasedinterestandfinanceexpense 2,550

Decreasedotherexpense 1,613

Increasedgeneralandadministrativeexpense (1,464)

Increasedforeignexchangeloss (566)

Increasedexplorationandprojectdevelopmentexpense (53)

Netloss,threemonthsendedMarch31,2021 $ (7,562)

1. RevenueforQ12021was$9.7millionhigherthaninQ12020,asaresultofhigherrealizedprices,lowertreatment and refining charges, and positive concentrate settlement adjustments, partially offset bydecreasedquantitiesofmetalsold.ThelowerquantitiesofmetalsoldareprimarilytheresultofdelayedconcentratesalesfromLaColorada,aspreviouslydescribed,andlowerproductionatLaColoradaduetoongoingventilationprojects. Lower realizedgradesatShahuindoandTimminsalsonegatively impactedthequantitiesofmetalsold,asdiscussedinthe"OperatingPerformance"sectionofthisMD&A.Realizedsilverandgoldpriceswereup60%and13%,respectively,andrealizedcopper,zincandleadpriceswereup47%,30%,and10%,fromQ12020,respectively.

The following table reflects themetal prices realized by the Company and the quantities ofmetal soldduringeachquarter:

RealizedMetalPrices(1) QuantitiesofMetalSold(2)

Threemonthsended


March31,

2021 2020 2021 2020Silver $ 26.41 $ 16.50 3,490 5,647Gold $ 1,788 $ 1,580 136.0 156.4Zinc $ 2,756 $ 2,125 11.1 11.5Lead $ 2,036 $ 1,857 3.9 5.9Copper $ 8,515 $ 5,801 1.8 1.4(1) Metal price stated as dollars per ounce for silver and gold, anddollars per tonne for zinc, lead and copper, inclusiveof final settlement

adjustmentsonconcentratesales.(2) Metalquantitiesstatedaskozforsilverandgoldandktforzinc,leadandcopper.

2. Productionand royaltycosts inQ12021were$27.2million lower than inQ12020. Thedecreasewasdrivenbya$31.1million,or14%,declineinproductioncosts,partiallyoffsetbya$4.0millionincreasein




royaltycosts.Thelowerproductioncostspartiallyreflect$8.1millionofnon-cash,costreducing,positiveNRVinventoryadjustmentsinQ12021,whichweremainlyduetoincreasedpreciousmetalsprices.Theseadjustments reflected a $19.9million variance from theQ1 2020 negative NRV inventory adjustmentswhichincreasedproductioncosts$11.7millioninthatquarter. Themajorityoftheadjustmentsineachperiodwere related to inventoriesat theDoloresmine.Other thanNRV impacts, the lowerproductioncostsreflectthepreviouslydiscussedlowersalesvolumes,primarilysilverandgold,whichweredown38%and13%,respectively,fromQ12020.Thevarianceinsalesquantities,andin-turnproductioncosts,werelargelyattributableto:thedelayedshipmentsanddecreasedproductionatLaColorada;lowerproductionvolumes at Shahuindo; partially offset by higher costs from increased production and sales volumes atHuaronandMorococha, reflectinga fullquarterofoperations compared to theCOVID-19 relatedminesuspensionsQ12020.

3. Depreciationandamortization("D&A")expensewas$3.1millionlowerthaninQ12020,reflectinglowersalesandproductionvolumes,asdescribedpreviously.

4. Income tax expense in Q1 2021 was $38.0million compared to $52.7million in Q1 2020. The $14.7milliondecreaseintaxexpensewasprimarilyduetoreduceddevaluationoftheMXNandPENinQ12021comparedtoQ12020,resultingina$33.3millionreductionintaxexpense.Thisdecreaseintaxexpensewaspartiallyoffsetbyhighertaxableincome.

5. Netgainsonassetsales,commoditycontractsandderivativeswere$2.4millioninQ12021comparedtonetlossesof$8.8millioninQ12020.ThegainsinQ12021werelargelydrivenbygainsintheCompany'sdiesel andCADcontracts, offsetby losses in theMXN,PENandCopper contracts. TheQ12020 lossesprimaryreflectedlossesrelatedtotheCompany'sforeigncurrencycontractsdrivenbythedevaluationoftheMXN,thePENandtheCADduringthatquarter.

6. Investment losswas$39.0million inQ12021,$10.2millionhigher than inQ12020. Investment loss ineachquarter,alongwiththequarter-over-quarterdecrease,wasdrivenprimarilybyfairvalue"mark-to-market"adjustmentsontheCompany'sequityinvestmentinNewPacificMetalsCorp.

7. Care and maintenance costswere $7.3 million in Q1 2021, an $8.8 million decrease from Q1 2020,reflectingnooperationsbeingoncareandmaintenanceasaresultofCOVID-19in2021comparedtotheCOVID-19relatedminesuspensionsofourPeruvianassetsduringQ12020.

8. Shareof income fromassociate inQ12021was$0.2million compared toa lossof$2.9million inQ12020, and primarily related to the Company's investment inMaverix,which is accounted for using theequity method whereby the Company records its portion of Maverix's net income based on PanAmerican'sfullydilutedownershipinterest.TheQ12020lossreflectedtheCompanyrecordingitsportionofaroyaltyinterestimpairmentchargerecordedbyMaverixinQ42019.

StatementofCashFlows:Q12021vs.Q12020

CashflowfromoperationsinQ12021totaled$29.9million,$84.2millionlessthanthe$114.1milliongeneratedinQ12020.Thedecreasewasmainlyattributabletoan$85.5milliondecreasefromchangesinnon-cashoperatingworking capital, as further described below, and a $24.8 million increase in tax payments, which offset theincreaseincashfrommineoperatingearnings.Thehighercashmineoperatingearningswaslargelytheresultofincreasedmetalprices.

WorkingcapitalchangesinQ12021resultedina$47.4millionuseofcashcomparedwitha$38.2millionsourceofcashinQ12020.TheQ12021useofcashwasmainlydrivenbya$39.9millionbuild-upininventories,largelytheresult of the delay in transporting concentrate inventories from La Colorada, and a $6.4 million decrease inaccountspayables.TheQ12020sourceofcashfromworkingcapitalchangeswaslargelytheresultofaninflowofcash from the collection of accounts receivable and the release of inventories, which offset the decrease inaccountspayables,allofwhichwereimpactedbytheCOVID-19relatedsuspensionofourPeruvianoperationsinmid-March2020.

Investing activities used $44.5 million in Q1 2021, primarily related to the $48.0 million spent on mineralproperties,plantandequipmentattheCompany’sminesandprojects,aspreviouslydescribedinthe“OperatingPerformance”sectionofthisMD&A,whichwaspartiallyoffsetby$2.5millioninproceedsfromthesettlementof




the Company's commodity and FX hedging programs. In Q1 2020, investing activities utilized $58.5 million,primarilyfromthe$55.8millionspentonmineralproperties,plantandequipment.

Financingactivities inQ12021used$18.0millioncomparedto$26.6millionused inQ12020.Cashused inQ12021primarilyconsistedof$14.7millionindividendsand$3.0millionofleaserepayments.ThenetcashusedinQ12020consistedprimarilyofa$15.0millionrepaymentoftheCreditFacility,$10.5millionpaidasdividendstoshareholdersand$4.1millionofleasepayments.

AdjustedEarnings:Q12021vsQ12020

Adjustedearnings isanon-GAAPmeasure.Pleaserefertothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetaileddescriptionof“adjustedearnings”,andareconciliationofthesemeasurestotheQ12021FinancialStatements.

Adjusted Earnings in Q1 2021 was $37.4 million, representing basic adjusted earnings per share of $0.18,compared to the revisedQ12020 adjusted earnings of $21.2million, andbasic adjusted earnings per share of$0.10.Q12021adjustedearningsexcludes,amongotheritems,investmentlossesof$39.0million(Q12020:$28.8million).AreconciliationofadjustedearningsforthethreemonthsendedMarch31,2021and2020,tothenetearnings for each period is included in the “Alternative Performance (Non-GAAP) Measures” section of thisMD&A.

ThefollowingchartillustratesthekeyfactorsleadingtothechangeinadjustedearningsfromQ12020toQ12021:

Adjusted Earnings Reconciliation - Q1 2020 to Q1 2021 ($ millions)

$21.2

$77.9

$(70.1)

$15.6

$(13.4)

$3.0 $2.6 $0.6 $37.4

RevisedQ1 2020adjusted

earnings(1)

Increasedmetalpricesand

positiveconcentratesettlement

adjustments

Decreasedquantitiesof metal

sold

Decreaseddirect

operatingcost ofsales

Increasedtax

expense

Increasedrealized

derivativeincome

Decreasedinterestexpense

Other Q1 2021adjustedearnings

$—

$25.0

$50.0

$75.0

$100.0

$125.0

(1)CommencinginQ12021gainsandlossesrecognizedinrelationtocertainequityinvestmentsownedbytheCompany,andincludedinInvestmentincome(loss)intheCompany'sfinancialstatements,arebeingexcludedfromAdjustedEarnings.ThischangewasbasedontheincreaseinboththemagnitudeandvolatilityoftheseinvestmentshavingalargerimpacttotheCompany’snetincomeinrecentyears,andManagement’sbeliefthatthesefair-market-valuesareneitherunderthecontrolofManagementnorrepresentativeofnormalcourseoperatingresultsThecomparativeperiod'sadjustedearningshavebeenrevisedtoconformtothischangeandthusdifferfromthatpreviouslyreported.




LIQUIDITYANDCAPITALPOSITION

LiquidityandCapitalMeasures(in$000s) March31,2021 Dec.31,2020 ChangeCashandcashequivalents("Cash") $ 133,497 $ 167,113 $ (33,616)Short-termInvestments $ 72,913 $ 111,946 $ (39,033)CashandShort-terminvestments $ 206,410 $ 279,059 $ (72,649)Fair-valueofMaverixinvestment(1) $ 134,298 $ 139,140 $ (4,842)WorkingCapital $ 513,045 $ 495,168 $ 17,877CreditFacilitycommittedamount $ 500,000 $ 500,000 $ —CreditFacilityamountsdrawn $ — $ — $ —Shareholders'equity $ 2,583,290 $ 2,605,839 $ (22,549)Totaldebt(2) $ 30,840 $ 33,565 $ (2,725)Capital(3) $ 2,407,720 $ 2,360,345 $ 47,375(1) Fair value of the Company's equity ownership in Maverix based on the March 31, 2021 New York Stock Exchange closing share price of $5.27

(December31,2020:$5.46).(2) Totaldebtisanon-GAAPmeasurecalculatedasthetotalofamountsdrawnontheCreditFacility,financeleaseliabilitiesandloanspayable.Pleaserefer

tothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetaileddescriptionofthecalculations.(3) Capitalisanon-GAAPmeasureandconsistsofshareholders’equityanddebtnetofcashandcashequivalentsandshortterminvestments.Pleaserefer

tothe“AlternativePerformance(Non-GAAP)Measures”sectionofthisMD&Aforadetaileddescriptionofthecalculations.

LiquidityandCapitalResources

TheCompany'scashandshort term investmentsdecreasedby$72.6millionduringQ12021.Thedecreasewasdrivenprimarily by a $39.0milliondecrease in short-term investments,mostly attributable todecreases in thesharepricesoftheCompany'sinvestmentsinNewPacificMetalsandNewOroPeru,anda$33.6milliondecreaseincashandcashequivalents.

Thedecreaseincashandcashequivalentswasduetoonly$29.9millionbeinggeneratedinoperatingcashflowintheperiod,asa resultofa$47.4millionbuild incash fromworkingcapitalchangesandtaxpaymentsof$61.3million,whichwasinsufficienttofundtheinvestingandfinancingactivitiesdescribedabove.

Pan American’s investment objectives for its cash balances are to preserve capital, to provide liquidity and tomaximize returns. The Company’s strategy to achieve these objectives is to invest excess cash balances in aportfolio of primarily fixed income instrumentswith specified credit rating targets established by the Board ofDirectors,andbydiversifyingthecurrenciesinwhichitmaintainsitscashbalances.TheCompanydoesnotownanyasset-backedcommercialpaperorothersimilar,known,at-riskinvestmentsinitsinvestmentportfolio.

Working capital of $513.0million atMarch 31, 2021 was $17.8million higher than working capital of $495.2millionatDecember31,2020.Theincreaseisprimarilydrivenbyabuild-upininventoriesinthequarter,whichmorethanoffsetthedecreaseincashandshortterminvestmentsdescribedabove.

TheCompanymaintainsa$500millionrevolvingcreditfacility,whichwasfullyundrawnatMarch31,2021.AsofMarch31,2021,andasof thedateof thisMD&A, theCompanywas incompliancewithall financialcovenantsunder theCreditFacility.Theborrowingcostsunder theCompany'sCreditFacilityarebasedon theCompany'sleverageratioateither(i)LIBORplus1.875%to2.750%or;(ii)TheBankofNovaScotia'sBaseRateonU.S.dollardenominatedcommercialloansplus0.875%to1.750%.UndrawnamountsundertheCreditFacilityaresubjecttoastand-by feeof0.4219%to0.6188%perannum,dependenton theCompany's leverageratio.TheCompany'sCreditFacilitymaturesonFebruary1,2023.

Thenetcashgeneratedfromthesalesofmetalproductionprovidesourprimarysourceofcashflows,andwedonot currently expect to experience payment delinquencies from our metal sales counterparties during theCOVID-19crisis, thoughthe impactofCOVID-19onthecreditriskassociatedwithourcounterpartiescannotbedeterminedwithanydegreeofcertainty.




TheCompany’sfinancialpositionatMarch31,2021,andtheoperatingcashflowsthatareexpectedoverthenexttwelvemonths, leadManagement tobelieve that theCompany’s liquidassetsare sufficient to satisfyour2021working capital requirements, fund currently planned capital expenditures, and to discharge liabilities as theycomedue. TheCompany remainswell positioned to take advantageof strategic opportunities as theybecomeavailable.Liquidityrisksarediscussedfurtherinthe“RisksandUncertainties”sectionofthisMD&A.

In the normal course of business, the Company enters into contracts that give rise to commitments for futureminimumpayments,detailsofwhicharedescribed inNote9(f)(ii)of the2020FinancialStatements,and in theLiquidity andCapital Position section of the Company's annual 2020ManagementDiscussion andAnalysis (the"2020AnnualMD&A"). SinceDecember 31, 2020, there have beenno significant changes to these contractualobligationsandcommitments.

TheimpactofinflationontheCompany’sfinancialposition,operationalperformance,orcashflowsoverthenexttwelvemonths cannotbedeterminedwithanydegreeof certaintydue toanumberofuncertainties, includingthoserelatedtotheCOVID-19businessdisruptions.

OutstandingShareAmounts

AsatMarch31,2021,theCompanyhadapproximately0.3millionstockoptionsoutstanding(eachexercisableforonecommonshareoftheCompany),withexercisepricesintherangeofCAD$9.76toCAD$46.53andaweightedaveragelifeof41months.Approximately0.3millionofthestockoptionswerevestedandexercisableatMarch31,2021,withanaverageweightedexercisepriceofCAD$17.13pershare.

ThefollowingtablesetsoutthecommonsharesandoptionsoutstandingasatthedateofthisMD&A:

OutstandingasatMay12,2021

Commonshares 210,280,880Options 284,393Total 210,565,273

Aspartof theconsiderationpayable toTahoeshareholders in connectionwith theacquisitionofTahoe,Tahoeshareholdersreceivedcontingentconsiderationintheformofonecontingentvalueright("CVR")foreachTahoeshare. Each CVR has a 10 year term and will be exchanged for 0.0497 of a Pan American share upon firstcommercialshipmentofconcentratefollowingrestartofoperationsattheEscobalmine.TheCompanyissuedanaggregateof313,887,490CVRs.

CLOSUREANDDECOMMISSIONINGCOSTPROVISION

Theestimated future closureanddecommissioning costs arebasedprincipallyon the requirementsof relevantauthorities and the Company’s environmental policies. The provision is measured using management’sassumptionsandestimatesforfuturecashoutflows.TheCompanyaccruesthesecosts,whicharedeterminedbydiscountingcostsusingratesspecific to theunderlyingobligation.Uponrecognitionofa liability for theclosureanddecommissioningcosts,theCompanycapitalizesthesecoststotherelatedmineandamortizessuchamountsoverthe lifeofeachmineonaunit-of-productionbasisexcept inthecaseofexplorationprojectsforwhichtheoffset to the liability isexpensed.Theaccretionof thediscountdue to thepassageof time is recognizedasanincreaseintheliabilityandafinanceexpense.

ThetotalinflatedandundiscountedamountofestimatedcashflowsrequiredtosettletheCompany’sestimatedfutureclosureanddecommissioningcostsasofMarch31,2021was$336.5million(December31,2020-$330.6million)usinginflationratesofbetween0%and4%(December31,2020-between0%and4%).TheinflatedanddiscountedprovisiononthestatementoffinancialpositionasatMarch31,2021was$215.3million(December31,2020-$235.1million),usingdiscountratesbetween0%and9%(December31,2020-between0%and8%).Spendingwith respect to decommissioning obligations at Alamo Dorado andManantial Espejo began in 2016,while the remainder of the obligations are expected to be paid through 2046, or later if the mine lives areextended.RevisionsmadetothereclamationobligationsinQ12021wereprimarilyaresultofincreaseddiscount




ratesduetohighergovernmentdebtyields,increasedsitedisturbancefromtheordinarycourseofoperationsatthemines, reclamationactivities,andrevisions to theestimatesbasedonperiodic reviewsofclosureplansandrelated costs, actual expenditures incurred, and closure activities completed. These obligations will be fundedfromoperatingcashflows,reclamationdeposits,andcashonhand.

Theaccretionof thediscountcharged inQ12021as financeexpensewas$1.9million (Q12020-$2.1million).ReclamationexpendituresincurredduringQ12021were$0.8million(Q12020-$0.7million).

RELATEDPARTYTRANSACTIONS

TheCompany’srelatedpartiesincludeitssubsidiaries,associatesoverwhichitexercisessignificantinfluence,andkeymanagementpersonnel.Duringitsnormalcourseofoperation,theCompanyentersintotransactionswithitsrelatedpartiesforgoodsandservices.

RelatedpartytransactionswithMaverixhavebeendisclosedinNote9oftheQ12021FinancialStatements.Thesetransactionsareinthenormalcourseofoperationsandaremeasuredattheamountofconsiderationestablishedandagreedtobythepartieswhichapproximatesfairvalue.

ALTERNATIVEPERFORMANCE(NON-GAAP)MEASURES

PerOunceMeasures

CashCostsandAISCarenon-GAAPfinancialmeasuresthatdonothaveanystandardizedmeaningprescribedbyIFRSandarethereforeunlikelytobecomparabletosimilarmeasurespresentedbyothercompanies.

PanAmericanproducesby-productmetalsincidentallytooursilverandgoldminingactivities.Wehaveadoptedthepracticeofcalculatingaperformancemeasurewiththenetcostofproducinganounceofsilverandgold,ourprimarypayablemetals,afterdeductingrevenuesgainedfromincidentalby-productproduction.Thisperformancemeasurementhasbeencommonlyusedintheminingindustryformanyyearsandwasdevelopedasarelativelysimplewayofcomparingthenetproductioncostsoftheprimarymetalforaspecificperiodagainsttheprevailingmarketpriceofthatmetal.

SilversegmentCashCostsandAISCarecalculatednetofcreditsforrealizedrevenuesfromallmetalsotherthansilver("silversegmentby-productcredits"),andarecalculatedperounceofsilversold.GoldsegmentCashCostsandAISCare calculatednetof credits for realized silver revenues ("gold segmentby-product credits"), andarecalculatedperounceofgoldsold.ConsolidatedCashCostsandAISCarebasedontotalsilverouncessoldandarenetofby-productcreditsfromallmetalsotherthansilver("silverbasisconsolidatedby-productcredits").

Cash costs per ounce metrics, net of by-product credits, is used extensively in our internal decision makingprocesses.Webelievethemetricisalsousefultoinvestorsbecauseitfacilitatescomparison,onamine-by-minebasis, notwithstanding the unique mix of incidental by-product production at each mine, of our operations’relativeperformanceonaperiod-by-periodbasis,andagainsttheoperationsofourpeers inthesilver industry.Cashcostsperounceisconceptuallyunderstoodandwidelyreportedintheminingindustry.

WebelievethatAISC,alsocalculatednetofby-products,isacomprehensivemeasureofthefullcostofoperatingourconsolidatedbusiness,givenitincludesthecostofreplacingsilverandgoldouncesthroughexploration,thecost of ongoing capital investments (sustaining capital), general and administrative expenses, as well as otheritemsthataffecttheCompany’sconsolidatedcashflow.

Due to the expectedmine sequencing into a higher gold zone of themine plan at Dolores, the Company hasdetermined that themine is better identified as aGold Segmentoperation from2021onwards. Thus asofQ12021,DoloresCashCostsandAISCarereportedonaperounceofgoldbasisandareincludedaspartoftheGoldSegmentCashCostsandAISCcalculations.2020DoloresCashCostsandAISCarereportedonaperounceofsilverbasisandareincludedaspartoftheSilverSegmentCashCostsandAISCcalculationsaspreviouslyreported.




TofacilitateabetterunderstandingofthesemeasureascalculatedbytheCompany,thefollowingtableprovidesthedetailedreconciliationofthesemeasuretotheapplicablecostitems,asreportedintheconsolidatedfinancialstatementsfortherespectiveperiods.




Threemonthsended

March31,2021Threemonthsended

March31,2020

(InthousandsofUSD,exceptasnoted) SilverSegment GoldSegment CorporateConsolidated(silverbasis)(1) SilverSegment GoldSegment Corporate

Consolidated(silverbasis)(1)

Productioncosts $ 80,601 $ 112,580 $ 193,180 $ 130,995 $ 93,322 $ 224,317

PurchasePriceAllocationInventoryFairValueAdjustment — (327) (327) (1,323) (1,323)NRVinventoryadjustments (1,441) 9,585 8,143 (11,720) — (11,720)On-sitedirectoperatingcosts 79,159 121,837 200,996 119,275 91,999 211,274Royalties 5,779 4,083 9,862 4,094 1,810 5,904Smelting,refininganddirectsellingcharges(2) 18,154 50 18,204 20,013 35 20,048Cashcostofsalesbeforeby-productcredits 103,093 125,969 229,062 143,382 93,844 237,226Silversegmentby-productcredits(2) (68,530) — — (97,898) — —Goldsegmentby-productcredits(2) — (17,869) — — (1,359) —Consolidatedsilverbasisby-productcredits(1)(2) — — (296,792) — — (290,529)CashCosts $ 34,563 $ 108,100 $ (67,730) $ 45,484 $ 92,485 $ (53,303)

NRVinventoryadjustments 1,441 (9,585) (8,143) 11,720 — 11,720Sustainingcapital 10,669 34,541 45,210 26,167 24,040 50,207Explorationandprojectdevelopment 566 1,003 911 2,480 275 1,031 1,121 2,427Reclamationcostaccretion 504 1,129 235 1,869 1,228 750 88 2,066Generalandadministrativeexpense — — 8,052 8,052 — — 6,588 6,588All-insustainingcosts $ 47,744 $ 135,189 $ 9,199 $ (18,262) $ 84,874 $ 118,306 $ 7,797 $ 19,705

Silversegmentsilverouncessold(koz) 2,810 — — 5,563 — —Goldsegmentgoldouncessold(koz) — 128 — — 122 —Totalsilverouncessold(koz)(1) — — 3,490 — — 5,647Cashcostsperouncesold $ 12.30 $ 846 $ 8.18 $ 757AISCperouncesold $ 16.99 $ 1,058 $ (5.23) $ 15.26 $ 969 $ 3.49

AISCperouncesold(excludingNRVinventoryadjustments) $ 16.48 $ 1,133 $ (2.90) $ 13.15 $ 969 $ 1.41

(1) Consolidatedsilverbasiscalculatedbytreatingallrevenuesfrommetalsotherthansilver, includinggold,asaby-productcredit inCashCosts.Consolidatedsilverbasisby-productcredits includeallsilversegmentby-productcredits,aswellasgoldrevenuesfromtheGoldSegmentminesasby-products.TotalsilverouncessoldlikewiseincludessilverouncessoldfromGoldSegmentoperations.

(2) Includedintherevenuelineoftheconsolidatedincomestatements.By-productcreditsarereflectiveofrealizedmetalpricesfortheapplicableperiods.

SustainingcapitalisincludedinAISC,whilecapitalrelatedtogrowthprojectsoracquisitions(referredtobytheCompanyasprojectorinvestmentcapital)isnot.InclusionofonlysustainingcapitalintheAISCmeasurereflectsthecapitalcostsassociatedwithcurrentouncessoldasopposedtoprojectcapital,whichisexpectedtoincreasefutureproduction.Theprojectcapitalexcludedinthereconciliationbelowisfurtherdescribedinthe"ProjectDevelopmentUpdate"sectionofthisMD&A.




Reconciliationofpaymentsformineralproperties,plantandequipmentandsustainingcapital


(inthousandsofUSD) 2021 2020Paymentsformineralproperties,plantandequipment(1) $ 47,971 $ 55,750Add/(Subtract)LeasePayments(1) 2,982 4,064Investment(non-sustaining)capital (5,743) (9,608)SustainingCapital $ 45,210 $ 50,207(1) Aspresentedontheconsolidatedstatementsofcashflows.




SilverSegmentCashCostsandAISCbymine:

SILVERSEGMENT ThreemonthsendedMarch31,2021

(InthousandsofUSD,exceptasnoted) LaColorada Huaron MorocochaSan

VicenteManantialEspejo

ConsolidatedSilver

SegmentProductionCosts $ 4,089 $ 21,732 $ 18,165 $ 10,820 $ 25,795 $ 80,601NRVinventoryadjustments — — — — (1,441) (1,441)On-sitedirectoperatingcosts 4,089 21,732 18,165 10,820 24,354 79,159Royalties 114 (25) — 5,089 601 5,779Smelting,refining&directsellingcosts 207 6,390 5,045 4,590 1,923 18,154CashCostsbeforeby-productcredits 4,410 28,096 23,209 20,499 26,878 103,093Silversegmentby-productcredits (894) (26,431) (16,068) (10,730) (14,407) (68,530)CashCosts $ 3,516 $ 1,666 $ 7,141 $ 9,769 $ 12,471 $ 34,563

NRVinventoryadjustments — — — — 1,441 1,441Sustainingcapital 5,386 1,612 1,735 558 1,378 10,669Explorationandprojectdevelopment 540 — 27 — — 566Reclamationcostaccretion 113 139 75 65 112 504All-insustainingcosts $ 9,555 $ 3,417 $ 8,977 $ 10,392 $ 15,403 $ 47,744

Silversegmentsilverouncessold(koz) 225 709 514 732 631 2,810

Cashcostperouncesold $ 15.62 $ 2.35 $ 13.89 $ 13.35 $ 19.78 $ 12.30AISCperouncesold $ 42.44 $ 4.82 $ 17.47 $ 14.20 $ 24.43 $ 16.99

AISCperouncesold(excludingNRVinventoryadjustments) $ 42.44 $ 4.82 $ 17.47 $ 14.20 $ 22.14 $ 16.48

SILVERSEGMENT ThreemonthsendedMarch31,2020

(InthousandsofUSD,exceptasnoted) LaColorada Dolores Huaron MorocochaSan

VicenteManantialEspejo

ConsolidatedSilver

SegmentProductionCosts $ 21,296 $ 50,623 $ 15,143 $ 15,241 $ 9,883 $ 18,809 $ 130,995NRVinventoryadjustments — (10,833) — (879) — (7) (11,720)On-sitedirectoperatingcosts 21,296 39,790 15,143 14,362 9,883 18,802 119,275Royalties 135 2,038 76 — 1,398 447 4,094Smelting,refining&directsellingcosts 5,370 23 5,401 4,155 3,611 1,453 20,013CashCostsbeforeby-productcredits 26,801 41,851 20,620 18,517 14,892 20,702 143,382Silversegmentby-productcredits (13,503) (41,772) (15,881) (13,501) (2,540) (10,701) (97,898)CashCosts $ 13,298 $ 79 $ 4,739 $ 5,016 $ 12,352 $ 10,001 $ 45,484

NRVinventoryadjustments — 10,833 — 879 — 7 11,720Sustainingcapital 4,753 15,124 1,413 2,236 1,925 716 26,167Explorationandprojectdevelopment 161 72 — 42 — — 275Reclamationcostaccretion 143 663 144 84 71 123 1,228All-insustainingcosts $ 18,355 $ 26,771 $ 6,296 $ 8,257 $ 14,348 $ 10,847 $ 84,874

Silversegmentsilverouncessold(koz) 1,839 1,150 596 408 840 730 5,563

Cashcostperouncesold $ 7.23 $ 0.07 $ 7.95 $ 12.29 $ 14.71 $ 13.69 $ 8.18AISCperouncesold $ 9.98 $ 23.29 $ 10.56 $ 20.23 $ 17.08 $ 14.85 $ 15.26

AISCperouncesold(excludingNRVinventoryadjustments) $ 9.98 $ 13.86 $ 10.56 $ 18.07 $ 17.08 $ 14.84 $ 13.15




GoldSegmentCashCostsandAISCbymine:

GOLDSEGMENT ThreemonthsendedMarch31,2021

(InthousandsofUSD,exceptasnoted) Dolores Shahuindo LaArena Timmins TotalProductionCosts $ 26,330 $ 25,772 $ 19,063 $ 41,415 $ 112,580PurchasePriceAllocationInventoryFairValueAdjustment — (322) (6) — (327)NRVinventoryadjustments 9,585 — — — 9,585On-sitedirectoperatingcosts 35,914 25,450 19,057 41,415 121,837Royalties 2,510 — — 1,573 4,083Smelting,refining&directsellingcosts 12 — — 37 50CashCostsbeforeby-productcredits 38,437 25,450 19,057 43,025 125,969Goldsegmentby-productcredits (15,828) (1,615) (305) (122) (17,869)CashCostsofSales $ 22,608 $ 23,836 $ 18,753 $ 42,904 $ 108,100

NRVinventoryadjustments (9,585) — — — (9,585)Sustainingcapital 8,919 2,681 14,719 8,222 34,541Explorationandprojectdevelopment 99 — — 904 1,003Reclamationcostaccretion 701 263 150 15 1,129All-insustainingcosts $ 22,743 $ 26,780 $ 33,621 $ 52,045 $ 135,189

Goldsegmentgoldouncessold 31,478 31,736 31,351 33,200 127,764

Cashcostperouncesold $ 718 $ 751 $ 598 $ 1,292 $ 846AISCperouncesold $ 723 $ 844 $ 1,072 $ 1,568 $ 1,058AISCperouncesold(excludingNRVinventoryadjustments) $ 1,027 $ 844 $ 1,072 $ 1,568 $ 1,133

GOLDSEGMENT ThreemonthsendedMarch31,2020

(InthousandsofUSD,exceptasnoted) Shahuindo LaArena Timmins TotalProductionCosts $ 34,247 $ 19,731 $ 39,344 $ 93,322PurchasePriceAllocationInventoryFairValueAdjustment (1,114) (207) (1) (1,323)NRVinventoryadjustments — — —On-sitedirectoperatingcosts 33,133 19,523 39,343 91,999Royalties — — 1,810 1,810Smelting,refining&directsellingcosts — — 35 35CashCostsbeforeby-productcredits 33,133 19,523 41,188 93,844Goldsegmentby-productcredits (1,068) (205) (86) (1,359)CashCostsofSales $ 32,065 $ 19,318 $ 41,102 $ 92,485

NRVinventoryadjustments — — — —Sustainingcapital 7,844 12,698 3,498 24,040Explorationandprojectdevelopment (5) — 1,036 1,031Reclamationcostaccretion 404 295 51 750All-insustainingcosts $ 40,308 $ 32,311 $ 45,687 $ 118,306

Goldsegmentgoldouncessold 52,002 26,662 43,480 122,144

Cashcostperouncesold $ 617 $ 725 $ 945 $ 757AISCperouncesold $ 775 $ 1,212 $ 1,051 $ 969AISCperouncesold(excludingNRVinventoryadjustments) $ 775 $ 1,212 $ 1,051 $ 969




AdjustedEarningsandBasicAdjustedEarningsPerShare

Adjustedearningsandbasicadjustedearningspersharearenon-GAAPmeasuresthattheCompanyconsiderstobetter reflect normalized earnings because it eliminates items that in management's judgment are subject tovolatilityasa resultof factorswhichareunrelated tooperations in theperiod, and/or relate to items thatwillsettleinfutureperiods.Certainitemsthatbecomeapplicableinaperiodmaybeadjustedfor,withtheCompanyretroactivelypresentingcomparableperiodswithanadjustmentforsuch itemsandconversely, itemsno longerapplicablemay be removed from the calculation. The Company adjusts certain items in the periods that theyoccurred,butdoesnotreverseorotherwiseunwindtheeffectofsuchitemsinfutureperiods.Neitheradjustedearnings nor basic adjusted earnings per share have any standardized meaning prescribed by GAAP and arethereforeunlikelytobecomparabletosimilarmeasurespresentedbyothercompanies.

ThefollowingtableshowsareconciliationofadjustedearningsforthethreemonthsendedMarch31,2021and2020,tothenetearningsforeachperiod.


(InthousandsofUSD,exceptasnoted) 2021 2020(1)

Netlossfortheperiod $ (7,562)$ (77,235)Adjustfor:Derivativelosses $ 7 $ —Unrealizedforeignexchangelosses 2,167 3,527Heapinventorynetrealizablevalue(recovery)charge (5,714) 8,971Unrealizedlossesonforeigncurrencyandcommoditycontracts 107 8,282Shareof(income)lossfromassociateanddilutiongain (198) 2,929Gainonsaleofassets (110) (35)COVID19minecareandmaintenance — 8,111Lossesonequitysecurities(1) 39,033 28,824Effectoftaxesonadjustingitems 2,041 (3,139)Effectofforeignexchangeontaxes 7,662 40,971Totaladjustments $ 44,996 $ 98,441Adjustedearningsfortheperiod $ 37,434 $ 21,206Weightedaveragesharesfortheperiod $ 210,261 $ 209,779Adjustedearningspersharefortheperiod $ 0.18 $ 0.10(1) Commencing inQ12021 gains and losses recognized in relation to certain equity investmentsownedby theCompany, and included in Investment

income(loss) intheCompany's financialstatements,arebeingexcludedfromAdjustedEarnings.Thischangewasbasedonthe increase inboththemagnitudeandvolatilityoftheseinvestmentshavingalargerimpacttotheCompany’snetincomeinrecentyears,andManagement’sbeliefthatthesefair-market-values are neither under the control ofManagement nor representative of normal course operating results. The comparative period'sadjustedearningshavebeenrevisedtoconformtothischangeandthusdifferfromthatpreviouslyreported.

TotalDebt

Total debt is a non-GAAPmeasure calculated as the total current and non-current portions of: long-termdebt(includingamountsdrawnontheCreditFacility),leaseliabilities,andloanspayable.Totaldebtdoesnothaveanystandardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measurespresentedbyothercompanies.TheCompanyandcertaininvestorsusethisinformationtoevaluatethefinancialdebtleverageoftheCompany.

Capital

Capitalisanon-GAAPmeasureandiscalculatedastotalequityplustotaldebtlesscashandcashequivalentsandshort term investments. Capital does not have any standardizedmeaning prescribed byGAAP and is therefore




unlikelytobecomparabletosimilarmeasurespresentedbyothercompanies.TheCompanyandcertaininvestorsusethisinformationtoevaluatetheenterprisevalueoftheCompany.

WorkingCapital

Workingcapital isanon-GAAPmeasurecalculatedascurrentassets lesscurrent liabilities.Workingcapitaldoesnot have any standardizedmeaning prescribed by GAAP and is therefore unlikely to be comparable to similarmeasures presented by other companies. The Company and certain investors use this information to evaluatewhethertheCompanyisabletomeetitscurrentobligationsusingitscurrentassets.

RISKSANDUNCERTAINTIES

TheCompanyisexposedtomanyrisksinconductingitsbusiness,includingbutnotlimitedto:metalpriceriskastheCompanyderivesitsrevenuefromthesaleofsilver,gold,zinc,lead,andcopper;tradingandcreditriskinthenormal course of dealing with other companies; foreign exchange risk as the Company reports its financialstatements inUSDwhereas theCompanyoperates in jurisdictions thatutilizeother currencies; risks relating tocyber secuity; the inherent risk of uncertainties in estimatingmineral reserves andmineral resources; political,economicandsocialrisksrelatedtoconductingbusinessinjurisdictionssuchasCanada,Peru,Mexico,Argentina,BoliviaandGuatemala;environmental risks; risks related to its relationswithemployeesand localcommunitieswhereweoperate,andrisksrelatingtothespreadofCOVID-19,whichhastodateresultedinprofoundhealthandeconomicimpactsgloballyandwhichpresentsfuturerisksanduncertaintiesthatarelargelyunknownatthistime. Certain of these risks are described below, and are more fully described in Pan American’s AnnualInformationForm(availableonSEDARatwww.sedar.com)andForm40-FfiledwiththeUnitedStatesSecuritiesandExchangeCommission(the"SEC"),andintheRisksandUncertaintiessectionoftheCompany's2020AnnualMD&A, and the 2020 Financial Statements. Readers are encouraged to refer to these documents for a moredetaileddescriptionofsomeoftherisksanduncertaintiesinherenttoPanAmerican’sbusiness.

FinancialRiskExposure

TheCompanyisexposedtofinancialrisks,includingmetalpricerisk,creditrisk,interestraterisk,foreigncurrencyexchange rate risk, and liquidity risk. The Company's exposures and management of each of those risks aredescribed inNote9(f) to theCompany's2020FinancialStatements.Therewerenosignificantchanges to thoserisksortotheCompany'smanagementofexposuretothoserisksduringthethreemonthsendedMarch31,2021.Thefollowingprovidesanupdatetocertainrelevantfinancialinstrumentrisksforthequarter:

PriceRisk

Adecreaseinthemarketpriceofcommoditiessuchassilver,goldandothermetalsandconsumablescouldaffectour profitability, along with the commercial viability of our mines and production from some of our miningproperties.Fromtimetotime,PanAmericanmitigatesthepriceriskassociatedwithitsbasemetalproductionbycommittingsomeofitsfutureproductionunderforwardsalesoroptioncontracts.However,decisionsrelatingtohedging may have material adverse effects on our financial performance, financial position, and results ofoperations.TheBoardofDirectorscontinuallyassessesPanAmerican’sstrategytowardsourbasemetalexposure.AsatMarch31,2021,theCompanyhadoutstandingcollarsmadeupofputandcallcontractsforitsexposuretocopper (1,350 tonnes)with settlement dates on those positions between April 2021 andDecember 2021. Theoutstandingcontractshaverespectiveweightedaveragefloorandcappricespertonneof$7,500and$8,775.TheCompanyrecordedlossesof$0.6millioninQ12021(Q12020-$nil),onthesepositions.

During2020,theCompanyenteredintodieselswapcontractsdesignedtofixorlimittheCompany’sexposuretohigher fuel prices. At March 31, 2021, the Company had outstanding positions on its diesel exposure with anotionalamountof12.6milliongallons,withaweightedaverage fixedpriceof$1.21pergallon.TheCompanyrecordedgainsof$4.2millionforthethreemonthsendedMarch31,2021(Q12020-$nil).




TradingActivitiesandCreditRisk

As atMarch31, 2021,wehad receivablebalances associatedwithbuyersof our concentratesof$33.3million(December31,2020-$35.1million).ThevastmajorityoftheCompany'sconcentrateissoldtoalimitednumberofconcentratebuyers.

As atMarch 31, 2021,we had approximately $55.3million contained in preciousmetal inventory at refineries(December31,2020-$61.8million).Doréproduction isrefinedunder long-termagreementswithfixedrefiningterms at five separate refineries worldwide. We generally retain the risk and title to the precious metalsthroughout theprocessof refiningand thereforeareexposed to the risk that the refinerieswill notbeable toperforminaccordancewiththerefiningcontractandthatwemaynotbeabletofullyrecoverourpreciousmetalsinsuchcircumstances.

Supplier advances forproducts and services yet tobeprovidedarea commonpractice in some jurisdictions inwhichtheCompanyoperates.TheseadvancesrepresentacreditrisktotheCompanytotheextentthatsuppliersdo not deliver products or perform services as expected. As atMarch 31, 2021, the Company hadmade $8.5million of supplier advances (December 31, 2020 - $8.2 million), which are reflected in “Trade and otherreceivables”ontheCompany’sbalancesheet.

Foreigncurrencyexchangeraterisk

Apartof theCompany’soperatingandcapitalexpenditures isdenominated in localcurrenciesother thanUSD.TheseexpendituresareexposedtofluctuationsinUSDexchangeratesrelativetothelocalcurrencies.Fromtimeto time, the Companymitigates part of this currency exposure by accumulating local currencies, entering intocontractsdesignedtofixorlimittheCompany’sexposuretochangesinthevalueoflocalcurrenciesrelativetotheUSD, or assuming liability positions to offset financial assets subject to currency risk. AtMarch 31, 2021, theCompanyhadoutstandingpositionsonitsforeigncurrencyexposureofCAD,PEN,andMXNpurchases.TheCADpositionsarecollarswithanoutstandingnotionalamountof$54.0millionUSD,withweightedaverageUSDputand call exchange rates of $1.25 and $1.32, respectively. The PEN positions are collars with an outstandingnotionalamountof$56.7millionUSD,withweightedaverageUSDputandcallexchangeratesof$3.50and$3.71,respectively. The MXN positions are collars with an outstanding notional amount of $56.3 million USD, withweighted averageUSDput and call exchange rates of $20.88 and $29.21, respectively. The Company recordedgains of $0.5 million, losses of $0.9 million, and losses of $0.8 million, respectively, on CAD, PEN and MXNderivativecontracts forthethreemonthsendedMarch31,2021(2020- lossesof$2.2million,$1.2millionand$5.4milliononCAD,PENandMXNderivativecontracts,respectively).AtMarch31,2021,theCompanyheldcashandshort-term investmentsof$80.8million inCanadiandollars,$10.4million inPeruvian soles,$9.1million inArgentinepesos,$2.7millioninBolivianbolivianos,$5.0millioninMexicanpesos,and$0.2millioninGuatemalanquetzales.

ClaimsandLegalProceedings

PanAmericanissubjecttovariousclaimsandlegalproceedingscoveringawiderangeofmattersthatariseintheordinarycourseofbusinessactivities.Thenature,assessmentandmanagementofsuchclaimsisdescribedintheRisksandUncertaintiessectionof the2020AnnualMD&A,and inNote24 to theCompany'sQ12021FinancialStatements. Therewerenosignificantchangestothoserisksor totheCompany'smanagementofexposuretothose risks during the three months ended March 31, 2021. In early May 2021 the Company’s subsidiary inGuatemalaandtheMinistryofEnergyandMineswereservedwithlegalproceedingsthatwereoriginatedintheConstitutional Court of Guatemala by a small group of residents and landowners, or alleged residents andlandowners,fromtheLaCuchillacommunityneartheEscobalmineclaimingthatpriorminingactivitiesdamagedtheir lands.Currentlyoperationsat Escobal are suspendedpending the completionof the ILO169 consultationprocess.Nevertheless,theactionseeks injunctiverelieftopreventfutureminingactivitiesatEscobal.WhiletheCompanybelievestheclaimsareprocedurallyandsubstantivelyflawedandwithoutmerit,theoutcomeoftheseproceedingscannotbedeterminedatthistime.




COVID-19andOtherPandemics

Since the outbreak of the coronavirus in late 2019 ("COVID-19"), it has spread into areas where we haveoperationsandwhereourofficesarelocated. GovernmenteffortstocurtailthespreadofCOVID-19resultedintemporarysuspensionsofouroperationsinMexico,Peru,ArgentinaandBolivia,andwehavereducedthroughputatourCanadianoperationsinTimminsinordertoenhancephysicaldistancingandprotectourpersonnelandthecommunity. The spread of COVID-19 has impacted our employees and contractors, not only as it relates topotentialhealthconcerns,butalsointermsoflimitationsonmovement,availabilityoffoodandothergoods,andpersonalwell-being,amongothers.Oursuppliersandserviceprovidershavealsobeenimpacted.

WhileCOVID-19hasalreadyhadsignificant,direct impactsonouroperations,ourbusiness,ourworkforce,andour production, the extent to which COVID-19 will continue to impact our operations will depend on futuredevelopmentswhicharehighlyuncertainandcannotbepredictedwithconfidence.These futuredevelopmentsinclude,butarenot limitedto, thedurationof theoutbreak,new informationthatmayemergeconcerningtheseverity of COVID-19, and the actions taken to contain COVID-19 or treat it. The impact of governmentalrestrictionsandhealthandsafetyprotocolscouldimproveorworsenrelativetoourassumptions,dependingonhow each jurisdiction manages potential outbreaks of COVID-19, the development and adequate supply ofvaccines,andtheroll-outofvaccinationprogramsineachjurisdiction.Weassumeoperationswillcontinuetobeimpacted by comprehensive COVID-19 protocols in 2021, which would increase costs and restrict throughputlevels, especially at our underground mines. Our ability to continue with our operations, or to successfullymaintainouroperationson careandmaintenance if so required,or to restartor ramp-upany suchoperationsefficiently or economically, or at all, is unknown. It is also uncertain,whetherwewill be able tomaintain anadequate financial condition and have sufficient capital, or have access to capital through our credit facility orotherwise,tosustainourbusinessandoperations.

Moreover, thecontinuedpresenceof,orspread,ofCOVID-19,andany futureemergenceandspreadofsimilarpathogens, globallywould likelyhavematerial adverseeffectonbothglobal and regional economies, includingthoseinwhichweoperate,aswehaveseenalready.Sucheffectswouldnotonlyaffectourbusinessandresultsofoperations,butalsotheoperationsofoursuppliers,contractorsandserviceproviders, includingsmelterandrefining service providers, and the demand for our production. COVID-19 and the spread of similar pathogenscouldalsonegativelyimpactstockmarkets,includingthetradingpriceofourshares,adverselyimpactourabilityto raise capital, cause continued interest rate volatility andmovements that couldmakeobtaining financingorrefinancing our debt obligationsmore challenging ormore expensive (if such financing is available at all), andresult in any operations affected by coronavirus becoming subject to quarantine or shut down. Any of thesedevelopments,andothers,couldhaveamaterialadverseeffectonourbusinessandresultsofoperations.




ClimateChange

Thereissignificantevidenceoftheeffectsofclimatechangeonourplanetandanintensifyingfocusonaddressingtheseissues.TheCompanyrecognizesthatclimatechangeisaglobalchallengethatmayhavebothfavorableandadverseeffectsonourbusinessinarangeofpossibleways.Miningandprocessingoperationsareenergyintensiveandresultinacarbonfootprinteitherdirectlyorthroughthepurchaseoffossil-fuelbasedelectricity.Assuch,theCompanyis impactedbycurrentandemergingpolicyandregulationrelatingtogreenhousegasemission levels,energyefficiency,andreportingofclimate-changerelatedrisks.Whilesomeofthecostsassociatedwithreducingemissionsmaybeoffsetbyincreasedenergyefficiency,technologicalinnovation,ortheincreaseddemandforourmetalsaspartoftechnologicalinnovations,thecurrentregulatorytrendmayresultinadditionaltransitioncostsat some of our operations. Governments are introducing climate change legislation and treaties at theinternational, national, and local levels, and regulations relating to emission levels and energy efficiency areevolvingandbecomingmorerigorous. Current lawsandregulatory requirementsarenotconsistentacross thejurisdictionsinwhichweoperate,andregulatoryuncertaintyislikelytoresultinadditionalcomplexityandcostinourcomplianceefforts.Publicperceptionofminingis,insomerespects,negativeandthereisincreasingpressureto curtail mining in many jurisdictions as a result, in part, of perceived adverse effects of mining on theenvironment.

Concerns around climate changemay also affect themarket price of our shares as institutional investors andothersmay divest interests in industries that are thought to havemore environmental impacts.Whilewe arecommittedtooperatingresponsiblyandreducingthenegativeeffectsofouroperationsontheenvironment,ourability to reduceemissions,energyandwaterusageby increasingefficiencyandbyadoptingnew innovation isconstrainedby technological advancement, operational factors and economics. Adoptionof new technologies,theuseof renewableenergy,and infrastructureandoperationalchangesnecessarytoreducewaterusagemayalso increase our costs significantly. Concerns over climate change, and our ability to respond to regulatoryrequirementsandsocietalpressures,mayhavesignificantimpactsonouroperationsandonourreputation,andmayevenresultinreduceddemandforourproducts.

Thephysicalrisksofclimatechangecouldalsoadverselyimpactouroperations.Theserisksinclude,amongotherthings, extremeweather events, resource shortages, changes in rainfall and in storm patterns and intensities,water shortages, changing sea levels and extreme temperatures. Climate-related events such as mudslides,floods,droughtsandfirescanhavesignificantimpacts,directlyandindirectly,onouroperationsandcouldresultin damage to our facilities, disruptions in accessingour siteswith labour and essentialmaterials or in shippingproducts from our mines, risks to the safety and security of our personnel and to communities, shortages ofrequiredsuppliessuchasfuelandchemicals,inabilitytosourceenoughwatertosupplyouroperations,andthetemporaryorpermanentcessationofoneormoreofouroperations.Thereisnoassurancethatwewillbeabletoanticipate,respondto,ormanagetherisksassociatedwithphysicalclimatechangeeventsandimpacts,andthismayresultinmaterialadverseconsequencestoourbusinessandtoourfinancialresults.




SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES,STANDARDSANDJUDGEMENTS

Changesinaccountingpolicies

Theaccountingpoliciesapplied in thepreparationof theseunauditedcondensed interimconsolidated financialstatements are consistent with those applied and disclosed in the Company’s audited consolidated financialstatementsfortheyearendedDecember31,2020.

Futurechangesinaccountingstandards

Certainnewaccountingstandardsandinterpretationshavebeenpublishedthatarenotmandatoryforthecurrentperiod and have not been early adopted. These standards are not expected to have amaterial impact on theCompanyuponadoption;however,thepronouncementbelowmayhaveasignificantimpactinfutureperiods.

Property,PlantandEquipment—ProceedsbeforeIntendedUse(AmendmentstoIAS16)

TheseamendmentswillprohibittheCompanyfromdeductingnetproceedsfromsellinganyitemsproducedwhilebringinganitemofproperty,plantandequipmenttothelocationandconditionnecessaryforittobecapableofoperatinginamannerintendedbymanagement.TheamendmentsrequireretrospectiveapplicationandeffectiveforannualreportingperiodsbeginningonorafterJanuary1,2022,withearlierapplicationpermitted.

Significantjudgements

In preparing financial statements in accordance with IFRS, Management is required to make estimates andassumptionsthataffecttheamountsreportedintheconsolidatedfinancialstatements.ThesecriticalaccountingestimatesrepresentManagement'sestimatesand judgmentsthatareuncertainandanychanges inthesecouldmaterially impact the Company’s financial statements. Management continuously reviews its estimates,judgments,andassumptionsusingthemostcurrentinformationavailable.

ReadersshouldalsorefertoNote3ofthe2020FinancialStatements,fortheCompany’ssummaryofsignificantaccountingpolicies.

DISCLOSURECONTROLSANDPROCEDURES

Management’sReportonInternalControloverFinancialReporting

Management of Pan American is responsible for establishing andmaintaining an adequate system of internalcontrol, including internal controlsover financial reporting. Internal controlover financial reporting isaprocessdesignedby,orunderthesupervisionof,thePresidentandChiefExecutiveOfficerandtheChiefFinancialOfficerand effected by the Board of Directors, Management and other personnel to provide reasonable assuranceregardingthereliabilityoffinancialreportingandthepreparationoffinancialstatementsforexternalpurposesinaccordancewithInternationalFinancialReportingStandardsasissuedbytheInternationalAccountingStandardsBoard.Itincludesthosepoliciesandproceduresthat:

a. pertain to the maintenance of records that in reasonable detail accurately and fairly reflect thetransactionsanddispositionsoftheassetsofPanAmerican,

b. are designed to provide reasonable assurance that transactions are recorded as necessary to permitpreparationof financial statements in accordancewith International FinancialReporting Standards, andthatreceiptsandexpendituresofPanAmericanarebeingmadeonlyinaccordancewithauthorizationsofManagementandPanAmerican’sdirectors,and

c. aredesignedtoprovidereasonableassuranceregardingpreventionor timelydetectionofunauthorizedacquisition,useordispositionofPanAmerican’sassets thatcouldhaveamaterialeffecton theannualfinancialstatementsorinterimfinancialreports.

The Company’s management, including its President and Chief Executive Officer and Chief Financial Officer,believe that due to its inherent limitations, internal control over financial reportingmaynot prevent or detect




misstatementsonatimelybasis.Inaddition,projectionsofanyevaluationoftheeffectivenessofinternalcontroloverfinancialreportingtofutureperiodsaresubjecttotheriskthatthecontrolsmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

ChangesinInternalControlsoverFinancialReporting

There has been no change in the Company’s internal control over financial reporting during the threemonthperiodendedMarch31,2021thathasmateriallyaffectedor isreasonably likelytomateriallyaffect, its internalcontroloverfinancialreporting.

TECHNICALINFORMATION

ScientificandtechnicalinformationcontainedinthisMD&AhasbeenreviewedandapprovedbyMartinWafforn,P.Eng.,SeniorVicePresidentTechnicalServicesandProcessingOptimization,andChristopherEmerson,FAusIMM,VicePresidentBusinessDevelopmentandGeology,eachofwhomareQualifiedPersons,asthetermisdefinedinNI43-101.

Formore detailed information regarding the Company’smaterialmineral properties and technical informationrelatedthereto,includingacompletelistofcurrenttechnicalreportsapplicabletosuchproperties,pleaserefertotheCompany’sAnnualInformationFormdatedFebruary17,2021,filedatwww.sedar.comortheCompany’smostrecentForm40-FfiledwiththeSEC.




CautionaryNoteRegardingForward-LookingStatementsandInformation

Certain of the statements and information in this MD&A constitute “forward-looking statements” within themeaningoftheUnitedStatesPrivateSecuritiesLitigationReformActof1995and“forward-lookinginformation”within the meaning of applicable Canadian provincial securities laws relating to the Pan American and itsoperations.Allstatements,otherthanstatementsofhistoricalfact,areforward-lookingstatements.Whenusedinthis MD&A, the words, “will”, “believes”, “expects”, “intents”, “plans”, “forecast”, “objective”, “guidance”,“outlook”,“potential”,“anticipated”,“budget”,andothersimilarwordsandexpressions,identifyforward-lookingstatementsorinformation.Theseforward-lookingstatementsorinformationrelateto,amongotherthings:futurefinancial or operational performance, and estimates of current production levels including our estimatedproductionofsilver,goldandothermetalsforecastedfor2021,ourestimatedCashCosts,AISCandexpendituresin 2021; future anticipated prices for gold, silver and other metals and assumed foreign exchange rates;expectations with respect to the future anticipated impact of COVID-19 on our operations, the assumptionsrelated to the global supply of COVID-19 vaccines and the roll-out in each country, and the effectiveness andresultsof anyvaccines, the lesseningor increase inpandemic-related restrictions, and theanticipated rateandtimingforthesame;theeffectthattheCOVID-19pandemicmayhaveonourfinancialandoperationalresults;theabilityofPanAmerican to continuewith itsoperations,or to successfullymaintainouroperationson careandmaintenance, should the situation related toCOVID-19notbeas anticipated;whetherPanAmerican is able tomaintain a strong financial condition and have sufficient capital, or have access to capital through our CreditFacility or otherwise, to sustain our business and operations; the presence and impact of COVID-19 on ourworkforce,suppliersandotheressentialresourcesandtheeffectthoseimpactshaveonourbusiness;thetimingandoutcomewith respect toPanAmerican'senvironmental, socialandgovernanceactivitiesandour reportingthere;of futurefinancialandoperationalperformance;thetimingand impactof thereplacementofventilationinfrastructureattheLaColoradamine;thesufficiencyofourcurrentworkingcapital,anticipatedoperatingcashfloworitsabilitytoraisenecessaryfunds;thedurationandeffectofthelicensesuspensionsandanyroadblocksrelatingtotheEscobalmine;theconstitutionalcourt-mandatedILO169consultationprocess inGuatemala,andthetimingandanyanticipatedcompletionthereof;theestimatedcostofandavailabilityoffundingnecessaryforsustainingcapital;forecastcapitalandnon-operatingspending;andourplansandexpectationsforitspropertiesandoperations.

Theseforward-lookingstatementsandinformationreflectourcurrentviewswithrespecttofutureeventsandarenecessarily based upon a number of assumptions and estimates that, while considered reasonable by us, areinherently subject to significant operational, business, economic, competitive, political, regulatory, and socialuncertainties and contingencies. These assumptions include: the world-wide economic and social impact ofCOVID-19ismanagedandthedurationandextentofthecoronaviruspandemicisminimizedornotlong-term;ourabilitytoimplementenvironmental,socialandgovernanceactivities;tonnageoforetobeminedandprocessed;oregradesandrecoveries;pricesforsilver,goldandbasemetalsremainingasestimated;currencyexchangeratesremaining as estimated; capital, decommissioning and reclamation estimates; ourmineral reserve andmineralresourceestimatesandtheassumptionsuponwhichtheyarebased;pricesforenergy inputs, labour,materials,supplies and services (including transportation); no labour-related disruptions at any of our operations; nounplanned delays or interruptions in scheduled production; all necessary permits, licenses and regulatoryapprovals forouroperationsarereceived ina timelymannerandcanbemaintained;andourability tocomplywith environmental, health and safety laws, particularly given thepotential formodifications and expansionofsuchlaws.Theforegoinglistofassumptionsisnotexhaustive.

We caution readers that forward-looking statements and information involve known and unknown risks,uncertaintiesandother factors thatmaycauseactual resultsanddevelopments todiffermaterially from thoseexpressedor impliedby such forward-looking statementsor information contained in thisMD&Aandwehavemade assumptions and estimates based on or related tomany of these factors. Such factors include, withoutlimitation:thedurationandeffectsofthecoronavirusandCOVID-19,andanyotherpandemicsonouroperationsandworkforce, and their effects on global economies and society; fluctuations in silver, gold, and basemetalprices;fluctuationsinpricesforenergyinputs;fluctuationsincurrencymarkets(suchasthePEN,MXN,ARS,BOL,GTQandCADversustheUSD);risksrelatedtothetechnologicalandoperationalnatureofourbusiness;changes




in national and local government, legislation, taxation, controls or regulations and political, legal or economicdevelopmentsinCanada,theUnitedStates,Mexico,Peru,Argentina,Bolivia,Guatemalaorothercountrieswherewemaycarryonbusiness, includingtheriskofexpropriationrelatedtocertainofouroperations,particularly inArgentina and Bolivia, and risks related to the constitutional court-mandated ILO 169 consultation process inGuatemala; risks and hazards associated with the business of mineral exploration, development and mining(includingenvironmentalhazards,industrialaccidents,unusualorunexpectedgeologicalorstructuralformations,pressures,cave-insandflooding);risksrelatingtothecreditworthinessorfinancialconditionofsuppliers,refinersand other partieswithwhomwe do business; inadequate insurance, or inability to obtain insurance, to coverthese risks and hazards; employee relations; relationships with and claims by the local communities andindigenouspopulations;availabilityand increasingcostsassociatedwithmining inputsand labour;ourability tosecureourminesitesormaintainaccess toourminesitesdue tocriminalactivity,violence,orciviland labourunrest;thespeculativenatureofmineralexplorationanddevelopment,includingtheriskofobtainingorretainingnecessary licenses and permits and the presence of laws, regulations and other legal impediments that mayimpose restrictions on mining, including those currently in the province of Chubut, Argentina, or that mightotherwisepreventor cause the suspensionordiscontinuationofminingactivities; the riskof litigationand theresultingfinancialoroperational impactsofsuchcurrentorfuturelitigation, includingchallengestotheILO169consultationprocess;diminishingquantitiesorgradesofmineralreservesaspropertiesaremined;globalfinancialconditions;risksrelatingtoinformationandcybersecurity,andourabilitytosecureourinformationanddataandprotectourselvesfromcyber-attack,breach,ortechnology-basedfraud;ourabilitytocompleteandsuccessfullyintegrateacquisitionsandtomitigateotherbusinesscombinationrisks;challengesto,ordifficultyinmaintaining,theour title topropertiesandcontinuedownership thereof; theactual resultsof currentexplorationactivities,conclusionsofeconomicevaluations,andchangesinprojectparameterstodealwithunanticipatedeconomicorother factors; increased competition in themining industry forproperties, equipment,qualifiedpersonnel, andtheir costs; having sufficient cash to pay obligations as they come due; and those factors identified under thecaption“RisksRelatedtoPanAmerican’sBusiness” inourmostrecentForm40-FandAnnual InformationFormfiledwith theUnited States Securities and Exchange Commission and Canadian provincial securities regulatoryauthorities, respectively.Although thewehaveattempted to identify important factors that couldcauseactualresults to differmaterially, theremay be other factors that cause results not to be as anticipated, estimated,described,orintended.Investorsarecautionedagainstattributingunduecertaintyorrelianceonforward-lookingstatementsorinformation.Forward-lookingstatementsandinformationaredesignedtohelpreadersunderstandManagement's current views of our near and longer term prospects and may not be appropriate for otherpurposes.Wedonotintend,anddoesnotassumeanyobligation,toupdateorreviseforward-lookingstatementsor information to reflect changes in assumptions or in circumstances or any other events affecting suchstatementsorinformation,otherthanasrequiredbyapplicablelaw.

CautionaryNotetoU.S.InvestorsConcerningEstimatesofMineralReservesandMineralResources

ThisMD&AhasbeenpreparedinaccordancewiththerequirementsofCanadiansecuritieslaws,whichdifferfromthe requirements of U.S. securities laws. Unless otherwise indicated, all references to mineral reserves andmineralresources,andanyrelatedestimates, included intheMD&Ahavebeendisclosed inaccordancewithNI43-101andtheCanadianInstituteofMining,Metallurgy,andPetroleumDefinitionStandards.NI43-101isaruledevelopedbytheCanadianSecuritiesAdministratorsthatestablishesstandardsforallpublicdisclosureanissuermakesofscientificandtechnicalinformationconcerningmineralprojects.




UnauditedCondensedInterimConsolidatedFinancialStatementsandNotes

FORTHETHREEMONTHSENDINGMARCH31,2021


March31, December31,2021 2020

Assets Currentassets Cashandcashequivalents(Note21) $ 133,497 $ 167,113Short-terminvestments(Note5) 72,913 111,946Tradeandotherreceivables 123,915 127,756Incometaxesreceivable 23,689 22,051Inventories(Note6) 458,582 406,191Derivativefinancialinstruments(Note4a) 9,031 7,812Prepaidexpensesandothercurrentassets 16,236 14,055 837,863 856,924Non-currentassets Mineralproperties,plantandequipment(Note7) 2,361,777 2,415,006Inventories(Note6) 24,143 24,355Long-termrefundabletax 4,706 4,009Deferredtaxassets 57,116 57,850Investmentinassociates(Note9) 72,822 71,560Goodwillandotherassets(Note10) 4,183 4,171TotalAssets $ 3,362,610 $ 3,433,875

Liabilities Currentliabilities Accountspayableandaccruedliabilities(Note11) $ 278,128 $ 281,938Derivativefinancialinstruments(Note4a) 1,700 367Currentportionofprovisions(Note12) 11,725 12,066Currentportionofleaseobligations(Note13) 12,087 12,829Incometaxpayable 21,178 54,556 324,818 361,756Non-currentliabilities Long-termportionofprovisions(Note12) 209,663 229,887Deferredtaxliabilities 185,971 175,311Long-termportionofleaseobligations(Note13) 18,753 20,736Deferredrevenue(Note9) 12,995 13,273Otherlong-termliabilities(Note15) 27,120 27,073TotalLiabilities 779,320 828,036

Equity Capitalandreserves(Note16) Issuedcapital 3,132,186 3,132,140Reserves 93,407 93,409Deficit (645,859) (623,030)TotalEquityattributabletoequityholdersoftheCompany 2,579,734 2,602,519Non-controllinginterests 3,556 3,320TotalEquity 2,583,290 2,605,839TotalLiabilitiesandEquity $ 3,362,610 $ 3,433,875

Contingencies(Note24)SeeaccompanyingnotestothecondensedinterimconsolidatedfinancialstatementsAPPROVEDBYTHEBOARDONMAY12,2021

"signed" RossBeaty,Director "signed" MichaelSteinmann,Director

CondensedInterimConsolidatedStatementsofFinancialPosition(unaudited,inthousandsofU.S.dollars)



2021 2020Revenue(Note22) $ 368,099 $ 358,428Costofsales(Note22)Productioncosts(Note17) (193,180) (224,317)Depreciationandamortization (75,093) (78,149)Royalties (9,862) (5,904)

(278,135) (308,370)Mineoperatingearnings(Note22) 89,964 50,058

Generalandadministrative (8,052) (6,588)Explorationandprojectdevelopment (2,480) (2,427)Minecareandmaintenance(Note18) (7,266) (16,024)Foreignexchangelosses (2,409) (1,843)Gains(losses)oncommodityandforeigncurrencycontracts(Note4c) 2,377 (8,823)Gainsonsaleofmineralproperties,plantandequipment 110 35Shareofincome(loss)fromassociateanddilutionloss(Note9) 198 (2,929)Otherincome(expense) 854 (759)Earningsfromoperations 73,296 10,700

Lossonderivatives(Note4c) (7) —Investmentloss(Note4b) (39,033) (28,824)Interestandfinanceexpense(Note19) (3,841) (6,391)Earnings(loss)beforeincometaxes 30,415 (24,515)Incometaxexpense(Note23) (37,977) (52,720)Netlossandcomprehensiveloss $ (7,562)$ (77,235)

Netlossattributableto:EquityholdersoftheCompany $ (7,798)$ (76,807)Non-controllinginterests 236 (428)

$ (7,562)$ (77,235)Comprehensivelossattributableto:EquityholdersoftheCompany $ (7,798)$ (76,807)Non-controllinginterests 236 (428)

$ (7,562)$ (77,235)

Losspershareattributabletocommonshareholders(Note20)Basiclosspershare $ (0.04)$ (0.37)Dilutedlosspershare $ (0.04)$ (0.37)Weightedaveragesharesoutstanding(in000’s)Basic 210,261 209,779Weightedaveragesharesoutstanding(in000’s)Diluted 210,261 209,779

Seeaccompanyingnotestothecondensedinterimconsolidatedfinancialstatements.

CondensedInterimConsolidatedStatementsofIncomeandComprehensiveIncome

(unaudited,inthousandsofU.S.dollars)



2021 2020OperatingactivitiesNetlossfortheperiod $ (7,562)$ (77,235)Incometaxexpense(Note23) 37,977 52,720Depreciationandamortization 75,093 78,149Lossesonsecuritiesheld 39,033 28,824Accretiononclosureanddecommissioningprovision(Note12,19) 1,869 2,066Unrealizedlossesonforeignexchange 2,167 3,527Interestexpense(Note19) 1,043 3,545Interestpaid (1,215) (3,724)Interestreceived 117 87Incometaxespaid (61,333) (36,499)Otheroperatingactivities(Note21) (9,941) 24,440Netchangeinnon-cashworkingcapitalitems(Note21) (47,398) 38,151

$ 29,850 $ 114,051InvestingactivitiesPaymentsformineralproperties,plantandequipment $ (47,971)$ (55,750)Netproceedsfrom(purchaseof)short-terminvestmentsandothersecurities 255 (2,394)Proceedsfromsaleofmineralproperties,plantandequipment 770 205Netproceeds(payments)fromcommodity,dieselfuelswaps,andforeigncurrencycontracts 2,484 (541)

$ (44,462)$ (58,480)FinancingactivitiesProceedsfromissueofequityshares $ 39 $ 2,931Distributionstonon-controllinginterests (313) —Dividendspaid (14,718) (10,500)Repaymentofcreditfacility(Note14) — (15,000)Paymentofequipmentleases (2,982) (4,064)

$ (17,974)$ (26,633)Effectsofexchangeratechangesoncashandcashequivalents (1,030) (1,675)(Decrease)increaseincashandcashequivalents (33,616) 27,263Cashandcashequivalentsatthebeginningoftheperiod 167,113 120,564Cashandcashequivalentsattheendoftheperiod $ 133,497 $ 147,827

Supplementalcashflowinformation(Note21).Seeaccompanyingnotestothecondensedinterimconsolidatedfinancialstatements.

CondensedInterimConsolidatedStatementsofCashFlows(unaudited,inthousandsofU.S.dollars)


AttributabletoequityholdersoftheCompany

Issuedshares

Issuedcapital Reserves Deficit Total

Non-controllinginterests

Totalequity

Balance,December31,2019 209,835,558 $ 3,123,514 $ 94,274 $ (754,689) $ 2,463,099 $ 4,747 $ 2,467,846Totalcomprehensiveearnings Netearningsfortheyear — — — 177,882 177,882 (1,427) 176,455Sharesissuedontheexerciseofstockoptions 329,379 5,800 (1,063) — 4,737 — 4,737Sharesissuedascompensation 93,730 2,826 — — 2,826 — 2,826Share-basedcompensationonoptiongrants — — 198 — 198 — 198Dividendspaid — — — (46,223) (46,223) — (46,223)

Balance,December31,2020 210,258,667 $ 3,132,140 $ 93,409 $ (623,030) $ 2,602,519 $ 3,320 $ 2,605,839Totalcomprehensiveloss Netlossfortheperiod — — — (7,798) (7,798) 236 (7,562)Sharesissuedontheexerciseofstockoptions 2,868 46 (7) — 39 — 39Share-basedcompensationonoptiongrants — — 5 — 5 — 5Distributionsbysubsidiariestonon-controllinginterests — — — (313) (313) — (313)Dividendspaid — — — (14,718) (14,718) — (14,718)

Balance,March31,2021 210,261,535 $ 3,132,186 $ 93,407 $ (645,859) $ 2,579,734 $ 3,556 $ 2,583,290

AttributabletoequityholdersoftheCompany

Issuedshares

Issuedcapital Reserves Deficit(1) Total

Non-controllinginterests

Totalequity

Balance,December31,2019 209,835,558 $ 3,123,514 $ 94,274 $ (754,689) $ 2,463,099 $ 4,747 $ 2,467,846Totalcomprehensiveloss Netlossfortheperiod — — — (76,807) (76,807) (428) (77,235)Sharesissuedontheexerciseofstockoptions 166,559 3,384 (453) — 2,931 — 2,931Share-basedcompensationonoptiongrants — — 53 — 53 — 53Dividendspaid — — — (10,500) (10,500) — (10,500)

Balance,March31,2020 210,002,117 $ 3,126,898 $ 93,874 $ (841,996) $ 2,378,776 $ 4,319 $ 2,383,095

Seeaccompanyingnotestothecondensedinterimconsolidatedfinancialstatements.

CondensedInterimConsolidatedStatementsofChangesinEquity(unaudited,inthousandsofU.S.dollars,exceptfornumberofshares)


1.NATUREOFOPERATIONS

PanAmericanSilverCorp.istheultimateparentcompanyofitssubsidiarygroup(collectively,the“Company”,or“PanAmerican”). PanAmerican is aBritishColumbia corporationdomiciled inCanada, and itsoffice is at Suite1440–625HoweStreet,Vancouver,BritishColumbia,V6C2T6.

TheCompanyisengagedintheproductionandsaleofsilver,gold,zinc,leadandcopperaswellasotherrelatedactivities, includingexploration,extraction,processing,refiningandreclamation.TheCompany’smajorproductsareproducedfromminesinCanada,Peru,Mexico,ArgentinaandBolivia.Additionally,theCompanyhasprojectdevelopment activities in Canada, Peru, Mexico and Argentina, and exploration activities throughout SouthAmerica,CanadaandMexico.AsatMarch31,2021,theCompany'sEscobalmineinGuatemalacontinuestobeoncareandmaintenancependingsatisfactorycompletionofaconsultationprocessledbytheMinistryofEnergyandMinesinGuatemala.

Principalsubsidiaries:

TheprincipalsubsidiariesoftheCompanyandtheirgeographiclocationsatMarch31,2021wereasfollows:

Subsidiary LocationOwnershipInterest Accounting

OperationsandDevelopmentProjectsOwned

LakeShoreGoldCorp. Canada 100% Consolidated BellCreekandTimminsWestminesPlataPanamericanaS.A.deC.V. Mexico 100% Consolidated LaColoradamineCompañíaMineraDoloresS.A.deC.V. Mexico 100% Consolidated DoloresminePanAmericanSilverHuaronS.A. Peru 100% Consolidated HuaronmineCompañíaMineraArgentumS.A. Peru 92% Consolidated MorocochamineShahuindoS.A.C. Peru 100% Consolidated ShahuindomineLaArenaS.A. Peru 100% Consolidated LaArenaminePanAmericanSilver(Bolivia)S.A. Bolivia 95% Consolidated SanVicenteminePanAmericanSilverGuatemalaS.A. Guatemala 100% Consolidated Escobalmine

MineraTritónArgentinaS.A. Argentina 100% ConsolidatedManantialEspejo&Cap-OesteSurEste("COSE")mines

MineraJoaquinS.R.L. Argentina 100% Consolidated JoaquinmineMineraArgentaS.A. Argentina 100% Consolidated Navidadproject

2.BASISOFPREPARATION

These condensed interim consolidated financial statements have been prepared in accordance with IAS 34 -InterimFinancial Reporting (“IAS34”) as issuedby the InternationalAccounting StandardsBoard (“IASB”).As aresult, these unaudited condensed interim consolidated financial statements prepared in accordance withInternational Financial Reporting Standards ("IFRS") as issued by the IASB have been condensed with certaindisclosures from the Annual Financial Statements omitted. Accordingly, these unaudited condensed interimconsolidated financial statements should be read in conjunction with the Company's audited consolidatedfinancialstatementsfortheyearendedDecember31,2020(the"AnnualFinancialStatements").

TheCompany’sinterimresultsarenotnecessarilyindicativeofitsresultsforafullyear.

NotestotheCondensedInterimConsolidatedFinancialStatementsAsatMarch31,2021andDecember31,2020,andforthe

threemonthsendedMarch31,2021and2020(unauditedwithtabularamountsinthousandsofU.S.dollarsexceptnumberof

shares,options,warrants,andpershareamounts,unlessotherwisenoted)


3.SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES,STANDARDS,ANDJUDGEMENTS

a) Changesinaccountingpolicies

The accounting policies applied in the preparation of these unaudited condensed interim consolidatedfinancialstatementsareconsistentwiththoseappliedanddisclosed in theCompany’sauditedconsolidatedfinancialstatementsfortheyearendedDecember31,2020.

b) Futurechangesinaccountingstandards

Certainnewaccounting standardsand interpretationshavebeenpublished that arenotmandatory for thecurrentperiodandhavenotbeenearlyadopted.ThesestandardsarenotexpectedtohaveamaterialimpactontheCompanyuponadoption;however,thepronouncementbelowmayhaveasignificantimpactinfutureperiods.

Property,PlantandEquipment—ProceedsbeforeIntendedUse(AmendmentstoIAS16)

TheseamendmentswillprohibittheCompanyfromdeductingnetproceedsfromsellinganyitemsproducedwhilebringinganitemofproperty,plantandequipmenttothelocationandconditionnecessaryforittobecapable of operating in a manner intended by management. The amendments require retrospectiveapplication and effective for annual reporting periods beginning on or after January 1, 2022, with earlierapplicationpermitted.

c) Significantjudgements

In preparing the Company’s unaudited condensed interim consolidated financial statements for the threemonthsendedMarch31,2021,theCompanyappliedthecriticaljudgmentsandestimatesdisclosedinNote5ofitsauditedconsolidatedfinancialstatementsfortheyearendedDecember31,2020.





4.FINANCIALINSTRUMENTS

a) Financialassetsandliabilitiesbycategories

March31,2021 Amortizedcost FVTPL TotalFinancialAssets: Cashandcashequivalents $ 133,497 $ — $ 133,497Tradereceivablesfromprovisionalconcentratessales(1) — 33,290 33,290Receivablesnotarisingfromsaleofmetalconcentrates(1) 82,151 — 82,151Short-terminvestments,equitysecurities — 72,913 72,913Derivativefinancialassets — 9,031 9,031

$ 215,648 $ 115,234 $ 330,882FinancialLiabilities:Derivativefinancialliabilities $ — $ 1,700 $ 1,700

(1) IncludedinTradeandotherreceivables.

December31,2020 Amortizedcost FVTPL TotalFinancialAssets: Cashandcashequivalents $ 167,113 $ — $ 167,113Tradereceivablesfromprovisionalconcentratessales(1) — 35,084 35,084Receivablesnotarisingfromsaleofmetalconcentrates(1) 84,486 — 84,486Short-terminvestments,equitysecurities — 111,946 111,946Derivativefinancialassets — 7,812 7,812

$ 251,599 $ 154,842 $ 406,441FinancialLiabilities:Derivativefinancialliabilities — 367 367

(1) IncludedinTradeandotherreceivables.

b) Short-terminvestmentsinequitysecuritiesrecordedatfairvaluethroughprofitorloss("FVTPL")

TheCompany’sshort-terminvestmentsinequitysecuritiesarerecordedatFVTPL.Thelossesfromshort-terminvestmentsinequitysecuritiesforthethreemonthsendedMarch31,2021and2020wereasfollows:

Threemonthsended

March31, 2021 2020Unrealizedlossesonshort-terminvestments,equitysecurities $ (39,033)$ (28,824)Realizedgainsonshort-terminvestments,equitysecurities — — $ (39,033)$ (28,824)





c) Derivativeinstruments

TheCompany'sderivativefinancialinstrumentsarecomprisedofforeigncurrencyandcommoditycontracts.Thegains(losses)oncommoditycontractsandlossonderivativesforthethreemonthsendedMarch31,2021and2020werecomprisedofthefollowing:


2021 2020Gains(losses)onforeigncurrencyandcommoditycontracts: Realizedgains(losses)onforeigncurrencyandcommoditycontracts $ 2,484 $ (541)Unrealizedlossesonforeigncurrencyandcommoditycontracts (107) (8,282)

$ 2,377 $ (8,823)Lossonderivatives: Lossonwarrants $ (7)$ —

d) Fairvalueinformation

i) FairValueMeasurement

Thecategoriesof the fairvaluehierarchythat reflect the inputs tovaluationtechniquesusedtomeasure fairvalueareasfollows:

Level1:Quotedpricesinactivemarketsforidenticalassetsorliabilities;

Level2: Inputsother thanquotedprices includedwithin Level1 thatareobservable for theassetor liability,eitherdirectlyorindirectly;and

Level3:Inputsfortheassetorliabilitybasedonunobservablemarketdata.

ThelevelsinthefairvaluehierarchyintowhichtheCompany’sfinancialassetsandliabilitiesthataremeasuredand recognized on the Consolidated Statements of Financial Position at fair value on a recurring basis werecategorizedasfollows:

AtMarch31,2021 AtDecember31,2020 Level1 Level2 Level1 Level2AssetsandLiabilities: Short-terminvestments $ 72,913 $ — $ 111,946 $ —Tradereceivablesfromprovisionalconcentratesales — 33,290 — 35,084Derivativefinancialassets — 9,031 — 7,812Derivativefinancialliabilities — (1,700) — (367) $ 72,913 $ 40,621 $ 111,946 $ 42,529

Themethodologyandassessmentofinputsfordeterminingthefairvalueoffinancialassetsandliabilitiesaswellas the levels of hierarchy for the Company’s financial assets and liabilities measured at fair value remainsunchangedfromthatatDecember31,2020.





ii) ValuationTechniques

Short-terminvestmentsandotherinvestments

TheCompany’sshort-terminvestmentsandotherinvestmentsarevaluedusingquotedmarketpricesinactivemarkets andas suchare classifiedwithin Level 1of the fair valuehierarchy andareprimarilymoneymarketsecurities andU.S. Treasury securities. The fair valueof the investment securities is calculatedas thequotedmarketpriceoftheinvestmentandinthecaseofequitysecurities,thequotedmarketpricemultipliedbythequantityofsharesheldbytheCompany.

Derivativeassetsandliabilities

TheCompany’sderivativeassetsand liabilitieswerecomprisedof investments inwarrants, commodityswapsandforeigncurrencycontracts.Thefairvalueofthewarrantsiscalculatedusinganoptionpricingmodelwhichutilizes a combination of quoted prices and market-derived inputs. The Company's commodity swaps andforeigncurrencycontractsarevaluedusingobservablemarketprices.WarrantsareclassifiedwithinLevel2ofthefairvaluehierarchy.

ReceivablesfromProvisionalConcentrateSales

A portion of the Company’s trade receivables arose from provisional concentrate sales and are valued usingquotedmarketpricesbasedontheforwardLondonMetalExchangeforcopper,zincandleadandtheLondonBullionMarketAssociationP.M.fixforgoldandsilver.

e) FinancialInstrumentsandrelatedrisks

TheCompanyhasexposuretorisksofvaryingdegreesofsignificancewhichcouldaffectitsabilitytoachieveitsstrategicobjectives forgrowthand shareholder returns.Theprincipal financial risks towhich theCompany isexposedare:

i) Creditriskii) Liquidityriskiii) Marketrisk

1.Currencyrisk2.Interestraterisk3.Pricerisk

The Company’s Board of Directors has overall responsibility for the establishment and oversight of theCompany’sriskmanagementframeworkandreviewstheCompany’spoliciesonanongoingbasis.

i) CreditRisk

CreditriskistheriskoffinanciallosstotheCompanyifacustomerorcounterpartytoafinancialinstrumentfailstomeet its contractual obligations and arises principally from the Company’s trade receivables. The carryingvalueoftradereceivablesrepresentsthemaximumcreditexposure.

The Company has long-term concentrate contracts to sell the zinc, lead, copper and silver concentratesproducedbytheHuaron,Morococha,SanVicenteandLaColoradamines.Concentratecontractsareacommonbusinesspractice inthemining industry.ThetermsoftheconcentratecontractsmayrequiretheCompanytodeliver concentrate that has a value greater than the payment received at the time of delivery, therebyintroducing theCompany tocredit riskof thebuyersofconcentrates.Shouldanyof thesecounterpartiesnothonour supply arrangements, or should any of them become insolvent, the Company may incur losses forproductsalreadyshippedandbeforcedtosellitsconcentratesonthespotmarketoritmaynothaveamarketfor its concentrates and therefore its future operating results may be materially adversely impacted. AtMarch 31, 2021, the Company had receivable balances associated with buyers of its concentrates of $33.3million(December31,2020-$35.1million).ThevastmajorityoftheCompany’sconcentrateissoldtofivewell-knownconcentratebuyers.





DoréproductionfromLaColorada,Dolores,ManantialEspejo,Shahuindo,LaArena,BellCreekandTimminsisrefined under long term agreements with fixed refining terms at four separate refineries worldwide. TheCompany generally retains the risk and title to the precious metals throughout the process of refining andtherefore isexposedtotheriskthattherefinerieswillnotbeabletoperforminaccordancewiththerefiningcontract and that the Companymay not be able to fully recover preciousmetals in such circumstances. AtMarch31, 2021, theCompanyhadapproximately$55.3million (December31, 2020 - $61.8million)of valuecontainedinpreciousmetalinventoryatrefineries.TheCompanymaintainsinsurancecoverageagainstthelossofpreciousmetalsattheCompany’sminesites,in-transittorefineriesandwhileattherefineries.

TheCompanymaintainstradingfacilitieswithseveralbanksandbulliondealersforthepurposesoftransactingtheCompany’smetalsales.Noneofthesefacilitiesaresubjecttomarginarrangements.TheCompany’stradingactivitiescanexposetheCompanytothecreditriskofitscounterpartiestotheextentthatthetradingpositionshave a positive mark-to-market value. However, the Company minimizes this risk by ensuring there is noexcessive concentration of credit risk with any single counterparty, by active credit management andmonitoring.

Refinedsilverandgoldaresold in thespotmarket tovariousbullion tradersandbanks.Credit riskmayarisefromtheseactivities if theCompany isnotpaid formetalat the time it isdelivered,as requiredbyspot salecontracts.

Management constantly monitors and assesses the credit risk resulting from its refining arrangements,concentrate sales and commodity contracts with its refiners, trading counterparties and customers.Furthermore,managementcarefullyconsiderscreditriskwhenallocatingprospectivesalesandrefiningbusinesstocounterparties.Inmakingallocationdecisions,managementattemptstoavoidunacceptableconcentrationofcreditrisktoanysinglecounterparty.

TheCompanyinvestsitscashandcashequivalents,whichalsohascreditrisk,withtheobjectiveofmaintainingsafetyofprincipalandprovidingadequateliquiditytomeetallcurrentpaymentobligations.

ii) LiquidityRisk

LiquidityriskistheriskthattheCompanywillnotbeabletomeetitsfinancialobligationsastheycomedue.TheCompanymanagesitsliquidityriskbycontinuouslymonitoringforecastedandactualcashflows.TheCompanyhas in place a rigorous planning andbudgetingprocess to help determine the funds required to support theCompany’snormaloperatingrequirementsonanongoingbasisanditsexpansionplans.TheCompanystrivestomaintain sufficient liquidity tomeet its short-termbusiness requirements, taking into account its anticipatedcashflowsfromoperations,itsholdingsofcashandshort-terminvestments,anditscommittedloanfacilities.

Therewas no significant change to the Company’s exposure to liquidity risk during the threemonths endedMarch31,2021.

iii) MarketRisk

1. CurrencyRisk

TheCompanyreportsitsfinancialstatementsinUSD;however,theCompanyoperatesinjurisdictionsthatutilizeothercurrencies.Asaconsequence,thefinancialresultsoftheCompany’soperationsasreportedinUSDaresubjecttochangesinthevalueoftheUSDrelativetolocalcurrencies.SincetheCompany’ssalesaredenominatedinUSDandaportionoftheCompany’soperatingcostsandcapitalspendingareinlocalcurrencies,theCompanyisnegativelyimpactedbystrengtheninglocalcurrenciesrelativetotheUSDandpositivelyimpactedbytheinverse.

AtMarch31,2021,theCompanyhadoutstandingpositionsonitsforeigncurrencyexposureofMexicanpeso ("MXN"), Peruvian peso ("SOL") and Canadian dollar ("CAD") purchases. The Company recordedlossesof$0.8million,lossesof$0.9million,andgainsof$0.5million,respectively,onMXN,SOLandCADderivativecontractsforthethreemonthsendedMarch31,2021(2020-lossesof$5.4million,1.2millionand$2.2million,respectively).





2. InterestRateRisk

InterestrateriskistheriskthatthefairvaluesandfuturecashflowsoftheCompanywillfluctuatebecauseofchanges inmarket interest rates.Theaverage interest rateearnedby theCompanyduring thethreemonthsendedMarch31,2021onitscashandshort-terminvestmentswas0.35%(2020-0.82%).

TheamountsdrawnontheCompany'ssecuredrevolvingcreditfacility(the"CreditFacility") incurredanaverage interestrateof3.7%duringthethreemonthsendedMarch31,2020. TherewerenoamountsdrawnontheCreditFacilityduringthethreemonthsendedMarch31,2021.

At March 31, 2021, the Company had $30.8 million in lease obligations (December 31, 2020 - $33.6million)thataresubjecttoanannualizedinterestrateof11.0%(2020-9.3%).

3. PriceRisk

MetalpriceriskistheriskthatchangesinmetalpriceswillaffecttheCompany’sincomeorthevalueofitsrelatedfinancialinstruments.TheCompanyderivesitsrevenuefromthesaleofsilver,gold,lead,copper,andzinc.TheCompany’ssalesaredirectlydependentonmetalpricesthathaveshownsignificantvolatilityandarebeyondtheCompany’scontrol.ConsistentwiththeCompany’smissiontoprovideequityinvestorswithexposuretochangesinpreciousmetalprices,theCompany’scurrentpolicyistonothedgethepriceofpreciousmetal.

TheCompanymitigatesthepriceriskassociatedwithitsbasemetalproductionbycommittingsomeofitsforecastedbasemetalproductionfromtimetotimeunderforwardsalesandoptioncontracts.TheBoardofDirectorscontinuallyassessestheCompany’sstrategytowardsitsbasemetalexposure,dependingonmarketconditions.

As atMarch 31, 2021, the Company had outstanding collarsmade up of put and call contracts for itsexposure to copper (1,350 tonnes) with settlement dates on those positions between April 2021 andDecember 2021. The outstanding contracts have respectiveweighted average floor and cap prices pertonneof$7,500and$8,775.TheCompanyrecordedlossesof$0.6millioninQ12021(Q12020-$nil),onthesepositions.

AtMarch31,2021,theCompanyhadoutstandingpositionsofdieselswapcontractsdesignatedtofixorlimittheCompany’sexposuretohigherfuelprices(the“Dieselfuelswaps”).TheCompanyrecordedgainsof$4.2milliononDieselfuelswapsforthethreemonthsendedMarch31,2021. TheCompanydidnotenterintoanyDieselfuelswapsduringthecomparableperiod2020.





5.SHORT-TERMINVESTMENTS

March31,2021 December31,2020

FairValue Cost

Accumulatedunrealized

holdinggains FairValue Cost

Accumulatedunrealized

holdinggainsShort-terminvestments $ 72,913 $ 20,419 $ 52,494 $ 111,946 $ 20,419 $ 91,527

6.INVENTORIES

Inventoriesconsistof:

March31,

2021December31,

2020Concentrateinventory $ 36,924 $ 19,104Stockpileore 41,376 30,063Heapleachinventoryandinprocess 240,269 219,334Doréandfinishedinventory 78,153 77,489Materialsandsupplies 86,003 84,556Totalinventories $ 482,725 $ 430,546Less:currentportionofinventories $ (458,582)$ (406,191)Non-currentportionofinventories(1) $ 24,143 $ 24,355

(1) InventoriesatEscobalmine,whichinclude$16.8million(December31,2020-$17.1million)insupplieswiththeremainderattributabletometals,havebeenclassifiedasnon-currentpendingtherestartofoperations.

Totalinventoriesheldatnetrealizablevalueamountedto$200.0millionatMarch31,2021(December31,2020–$200.9million).TotalinventoryrecoveriesduringthethreemonthsendedMarch31,2021were$8.1million(2020–write-downsof$11.7million)andwereincludedincostofsales.





7.MINERALPROPERTIES,PLANTANDEQUIPMENT

Mineralproperties,plantandequipmentconsistof:

March31,2021 December31,2020

Cost

AccumulatedDepreciation

andImpairment

CarryingValue Cost

AccumulatedDepreciation

andImpairment

CarryingValue

Huaron,Peru $ 212,752 $ (133,391) $ 79,361 $ 218,270 $ (135,932) $ 82,338Morococha,Peru 267,844 (178,768) 89,076 267,705 (175,844) 91,861Shahuindo,Peru 540,950 (96,929) 444,021 546,643 (86,855) 459,788LaArena,Peru 182,614 (73,604) 109,010 170,401 (66,313) 104,088AlamoDorado,Mexico — — — 71,725 (71,725) —LaColorada,Mexico 330,635 (169,689) 160,946 308,378 (164,443) 143,935Dolores,Mexico(1) 1,691,473 (1,263,338) 428,135 1,709,105 (1,228,492) 480,613ManantialEspejo,Argentina(2)(4) 513,788 (486,704) 27,084 513,626 (485,036) 28,590SanVicente,Bolivia 146,536 (103,865) 42,671 144,790 (101,408) 43,382Timmins,Canada 314,140 (85,837) 228,303 307,243 (75,902) 231,341Other 29,198 (18,597) 10,601 28,653 (18,313) 10,340Total $ 4,229,930 $ (2,610,722) $ 1,619,208 $ 4,286,539 $ (2,610,263) $ 1,676,276

LandandNon-ProducingProperties: Land $ 6,756 $ (1,254) $ 5,502 $ 6,758 $ (1,254) $ 5,504Navidad,Argentina(3) 566,577 (376,101) 190,476 566,577 (376,101) 190,476Escobal,Guatemala 257,564 (1,383) 256,181 259,198 (1,072) 258,126Timmins,Canada 71,839 — 71,839 71,099 — 71,099Shahuindo,Peru 6,079 — 6,079 6,079 — 6,079LaArena,Peru 117,000 — 117,000 117,000 — 117,000Minefinders,Mexico 80,239 (36,975) 43,264 80,239 (36,975) 43,264LaColorada,Mexico 27,230 — 27,230 21,589 — 21,589Morococha,Peru 5,054 — 5,054 5,054 — 5,054Other 32,035 (12,091) 19,944 32,533 (11,994) 20,539Totalnon-producingproperties $ 1,170,373 $ (427,804) $ 742,569 $ 1,166,126 $ (427,396) $ 738,730

Totalmineralproperties,plantandequipment $ 5,400,303 $ (3,038,526) $ 2,361,777 $ 5,452,665 $ (3,037,659) $ 2,415,006

(1) Includespreviouslyrecordedimpairmentchargesof$748.9millionatMarch31,2021(December31,2020-$748.9million).(2) Includespreviouslyrecordedimpairmentchargesof$173.3millionatMarch31,2021(December31,2020-$173.3million).(3) Includespreviouslyrecordedimpairmentchargesof$376.1millionatMarch31,2021(December31,2020-$376.1million).(4) ComprisedoftheJoaquinandCOSEprojectswhichenteredcommercialproductionandweretransferredtoManantialEspejoduring

theyearendedDecember31,2020.

8.IMPAIRMENTOFNON-CURRENTASSETS

Non-current assets are tested for impairment, or reversal of previous impairment charges, when events orchanges in circumstance indicate that the carrying amount may not be recoverable, or previous impairmentchargesagainstassetsarerecoverable.TheCompanyperformsanimpairmenttestforgoodwillateachfinancialyear end and when events or changes in circumstances indicate that the related carrying value may not berecoverable.

Based on the Company’s assessment with respect to possible indicators of either impairment or reversal ofprevious impairments to its mineral properties, the Company concluded that as of March 31, 2021, no suchindicatorswerenoted,andnoimpairmentchargesorimpairmentchargereversalswererequired.

Aspartoftheassessmentforindicatorsofimpairmentorreversal,theCompanyconsideredvariousexternalandinternal factors, such as significant increases or decreases in forecasted production volumes (which include





assumptions related to proved and probable reserves), commodity prices, capital expenditures and operatingcosts. In future periods, the effects of the COVID-19 pandemicmay havematerial impacts on our anticipatedoperatingresultsandtherecoverableamountofourCGUs.

9.INVESTMENTINASSOCIATES

ThefollowingtableshowsacontinuityoftheCompany'sinvestmentsinMaverixMetalsInc.("Maverix")andotherassociates:

2021Maverixinvestment,December31,2020 $ 71,560

Dilutionlosses (403)Dividends (254)Incomefromassociate 616Maverixinvestment,March31,2021 71,519Otherinvestment,March31,2021 1,303Totalinvestmentinassociates,March31,2021 $ 72,822

InvestmentinMaverix:

TheCompany'sshareofMaverixincomeorlosswasrecorded,basedonits17%interestduringthethreemonthsendedMarch31,2021(2020-26%),representingtheCompany’sfullydilutedownership.

DeferredRevenue:

Deferred revenue relates to precious metal streams whereby the Company will sell 100% of the future goldproductionfromLaColoradaand5%ofthefuturegoldproductionfromLaBolsa,whichisintheexplorationstage,toMaverixfor$650and$450perounce,respectively(the"Streams").

ThedeferredrevenuerelatedtotheStreamswillberecognizedasrevenuebyPanAmericanasthegoldouncesaredeliveredtoMaverix.AsatMarch31,2021, thedeferredrevenue liabilitywas$13.0million (December31,2020-$13.3million).

IncomeStatementImpacts:

TheCompanyrecognized$0.4million indilution lossesduring the threemonthsendedMarch31,2021 (2020 -$0.2million).Dilutiongainsandlossesarerecordedinshareofincomefromassociateanddilutiongain.

For the threemonths endedMarch 31, 2021, theCompany also recognized$0.6million share of income fromassociate(2020-$2.8millionshareoflossfromassociate),whichrepresentstheCompany'sproportionateshareofMaverix'searningsduringtheperiods.

10.GOODWILLANDOTHERASSETS

Otherassetsconsistof:

March31,2021

December31,2020

Goodwill $ 2,775 $ 2,775Otherassets 1,408 1,396

$ 4,183 $ 4,171





11.ACCOUNTSPAYABLEANDACCRUEDLIABILITIES

Accountspayableandaccruedliabilitiesconsistof:

March31,2021

December31,2020

Tradeaccountspayable(1) $ 77,414 $ 80,280Royaltiespayable 20,396 18,166Otheraccountspayableandtraderelatedaccruals 101,224 94,600Payrollandrelatedbenefits 45,119 53,780Severanceaccruals 2,413 2,935Refundabletaxpayable 11,367 11,208Othertaxespayable 20,195 20,969

$ 278,128 $ 281,938

(1) Nointerestischargedonthetradeaccountspayablerangingfrom30to60daysfromtheinvoicedate.TheCompanyhaspoliciesinplacetoensurethatallpayablesarepaidwithinthecreditterms.

12.PROVISIONS

ClosureandDecommissioning Litigation Total

December31,2020 $ 235,110 $ 6,843 $ 241,953Revisionsinestimatesandobligationsincurred (20,922) — (20,922)Charged(credited)toearnings: -newprovisions — 556 556-changeinestimate — (938) (938)-exchangegainsonprovisions — (170) (170)

-utilizedintheperiod — (158) (158)Reclamationexpenditures (802) — (802)Accretionexpense(Note19) 1,869 — 1,869March31,2021 $ 215,255 $ 6,133 $ 221,388

Maturityanalysisoftotalprovisions: March31,2021

December31,2020

Current $ 11,725 $ 12,066Non-Current 209,663 229,887

$ 221,388 $ 241,953





13.LEASES

(a) ROUAssets

ThefollowingtablesummarizeschangesinROUAssetsforthethreemonthsendedMarch31,2021whichhavebeenrecordedinmineralproperties,plantandequipmentontheCondensedInterimConsolidatedStatementsofFinancialPosition:

Threemonthsended

March31,

2021Openingnetbookvalue $ 33,543Additions 250Depreciation (3,100)Other (459)Closingnetbookvalue $ 30,234

(b) Leaseobligations

The following tablepresentsa reconciliationof theCompany'sundiscountedcash flowsatMarch31,2021andDecember31,2020totheirpresentvaluefortheCompany'sleaseobligations:

March31,2021

December31,2020

Withinoneyear $ 12,855 $ 13,505Betweenoneandfiveyears 15,721 17,902Beyondfiveyears 18,649 19,255Totalundiscountedleaseobligations 47,225 50,662Lessfutureinterestcharges (16,385) (17,097)Totaldiscountedleaseobligations 30,840 33,565Less:currentportionofleaseobligations (12,087) (12,829)Non-currentportionofleaseobligations $ 18,753 $ 20,736

14.DEBT

The Company's four-year, $500.0 million secured revolving credit facility, maturing on February 1, 2023, wasundrawnatMarch31,2021andDecember31,2020.TheCreditFacilitycanbedrawndownatanytimetofinancetheCompany’sworkingcapitalrequirements,acquisitions,investmentsandforgeneralcorporatepurposes.

ThefinancialcovenantsrequiretheCompanytomaintainaminimumtangiblenetworthofgreaterthan70%ofitstangiblenetworthasofMarch31,2019plus50%ofpositivenet income fromand including the fiscalquarterendedJune30,2019.Inaddition,thefinancialcovenantscontinuetoincludetherequirementfortheCompanytomaintain:(i)aleverageratiolessthanorequalto3.5:1;and(ii)aninterestcoverageratiomorethanorequalto3.0:1.AsofMarch31,2021,theCompanywasincompliancewithallcovenantsrequiredbytheCreditFacility.

AmountscanbedrawnundertherevolvingfacilityandwillincurinterestatLIBORplus1.88%to2.75%.Undrawnamountsundertherevolvingfacilityaresubjecttoastand-byfeeof0.42%to0.62%perannum,dependentontheCompany'sleverageratio.TheCreditFacilityremainedundrawnatMarch31,2021andDecember31,2020.

During the three months ended March 31, 2021, the Company incurred $0.5 million in standby charges onundrawnamountsunderthisFacility.DuringthethreemonthsendedMarch31,2020,theCompanyincurred$0.3millioninstandbychargesonundrawnamountsand$2.5millionininterest,atanaverageinterestrateof3.7%,ondrawnamountsunderthisFacility.





15.OTHERLONGTERMLIABILITIES

Otherlongtermliabilitiesconsistof:

March31,

2021December31,

2020Deferredcredit(1) $ 20,788 $ 20,788Otherincometaxpayable 49 54Severanceaccruals 6,283 6,231

$ 27,120 $ 27,073

(1) RepresentstheobligationtodeliverfuturesilverproductionofNavidadpursuanttoasilverstreamcontract.

16.SHARECAPITALANDEMPLOYEECOMPENSATIONPLANS

a. Stockoptionsandcommonsharesissuedascompensation("CompensationShares")

For the three months ended March 31, 2021, the total share-based compensation expense relating to stockoptions and Compensation Shares was $0.9million (2020 - $1.0 million) and is presented as a component ofgeneralandadministrativeexpense.

• Stockoptions

The Company did not grant any stock options during the three months ended March 31, 2021 or thecomparativeperiodsin2020.

DuringthethreemonthsendedMarch31,2021,theCompanyissued2,868commonsharesinconnectionwiththeexerciseofoptions(2020–166,559commonshares).

The followingtablesummarizeschanges instockoptions for thethreemonthsendedMarch31,2021andyearendedDecember31:

StockOptions

Options

WeightedAverageExercise

PriceCAD$AsatDecember31,2019 1,143,348 $ 33.84Granted 7,605 39.48Exercised (329,711) 19.23Expired (482,438) 53.41Forfeited (21,387) 43.08AsatDecember31,2020 317,417 $ 18.78Exercised (2,868) 17.53Expired (2,162) 41.62Forfeited (5,045) 55.39AsatMarch31,2021 307,342 $ 18.03





ThefollowingtablesummarizesinformationabouttheCompany'sstockoptionsoutstandingatMarch31,2021:

OptionsOutstanding OptionsExercisable

RangeofExercisePricesCAD$

NumberOutstandingasatMarch31,

2021

WeightedAverageRemaining

ContractualLife(months)

WeightedAverage

ExercisePriceCAD$

NumberOutstandingasatMarch31,

2021

WeightedAverageExercise

PriceCAD$$9.76-$17.11 101,059 18.71 $ 10.83 101,059 $ 10.83$17.12-$24.46 165,800 50.31 $ 18.72 165,800 $ 18.72$24.47-$31.81 22,788 68.21 $ 26.54 11,396 $ 26.54$31.82-$46.53 17,695 41.80 $ 41.70 10,090 $ 43.37 307,342 40.76 $ 18.03 288,345 $ 17.13

b. PSUs

CompensationexpenseforPSUswas$0.2millionforthethreemonthsendedMarch31,2021(2020-$0.4million)andispresentedasacomponentofgeneralandadministrativeexpense.

AtMarch31,2021,thefollowingPSUswereoutstanding:

PSUNumber

Outstanding FairValueAsatDecember31,2019 247,601 $ 5,896Granted 62,920 1,942Paidout (54,962) (2,626)Changeinvalue — 3,658AsatDecember31,2020 255,559 $ 8,870Changeinvalue — (1,132)AsatMarch31,2021 255,559 $ 7,738

c. RSUs

CompensationexpenseforRSUswas$0.6millionforthethreemonthsendedMarch31,2021(2020–$0.1million)andispresentedasacomponentofgeneralandadministrativeexpense.

AtMarch31,2021,thefollowingRSUswereoutstanding:

RSUNumber

Outstanding FairValueAsatDecember31,2019 299,216 $ 7,107Granted 261,224 6,302Paidout (148,049) (4,762)Forfeited (15,819) (545)Changeinvalue — 5,628AsatDecember31,2020 396,572 $ 13,730Forfeited (3,803) (114)Changeinvalue — (1,758)AsatMarch31,2021 392,769 $ 11,858





d. Issuedsharecapital

TheCompanyisauthorizedtoissue400,000,000commonshareswithoutparvalue.

e. Dividends

TheCompanydeclaredthefollowingdividendsforthethreemonthsendedMarch31,2021and2020:

DeclarationDate RecordDateDividendpercommonshare

May12,2021(1) May25,2021 $ 0.070February17,2021 March1,2021 $ 0.070November4,2020 November16,2020 $ 0.070August5,2020 August17,2020 $ 0.050May6,2020 May19,2020 $ 0.050February19,2020 March2,2020 $ 0.050(1) ThesedividendsweredeclaredsubsequenttothequarterendedMarch31,2021andhavenotbeenrecognizedasdistributionstoownersduringthe

periodpresented.

f. CVRs

OnFebruary22,2019,theCompanyissued313,887,490CVRsaspartoftheTahoeAcquisition,whichwereconvertibleinto15,600,208commonsharesfollowingtheFirstShipmentupontherestartofoperationsattheEscobalmine.AsofMarch31,2021,therewere313,883,990CVRsoutstandingwhichwereconvertibleinto15,600,034commonshares(December31,2020-313,883,990CVRsconvertibleinto15,600,034commonshares).

17.PRODUCTIONCOSTS

Productioncostsarecomprisedofthefollowing:

ThreemonthsendedMarch31,2021 2020

Consumptionofrawmaterialsandconsumables $ 88,064 $ 85,707Employeecompensationandbenefitsexpense 81,861 74,865Contractorsandoutsideservices 46,843 28,786Utilities 11,810 11,739Otherexpenses 12,020 5,175Changesininventories (47,418) 18,045 $ 193,180 $ 224,317

18.MINECAREANDMAINTENANCE


COVID-19relatedminecareandmaintenanceexpenses(1) $ — $ 8,110Minecareandmaintenanceexpenses 7,266 7,914 $ 7,266 $ 16,024(1) AsaresultofthetemporarysuspensionofminesduetoCOVID-19.





19.INTERESTANDFINANCEEXPENSE


Interestexpense $ 1,043 $ 3,545Financefees 929 780Accretionexpense(Note12) 1,869 2,066 $ 3,841 $ 6,391

20.EARNINGSPERSHARE(BASICANDDILUTED)

ForthethreemonthsendedMarch31, 2021 2020

Earnings(1)

(Numerator)Shares(000’s)(Denominator)

Per-ShareAmount

Earnings(1)

(Numerator)Shares(000’s)(Denominator)

Per-ShareAmount

Netlossfortheperiod $ (7,798) $ (76,807)Basiclosspershare $ (7,798) 210,261 $ (0.04)$ (76,807) 209,779 $ (0.37)EffectofDilutiveSecurities:StockOptions — — — —Dilutedlosspershare $ (7,798) 210,261 $ (0.04)$ (76,807) 209,779 $ (0.37)

(1) NetearningsattributabletoequityholdersoftheCompany.

Potentiallydilutivesecuritiesexcluded in thedilutedearningspersharecalculation for thethreemonthsendedMarch31,2021were10,090out-of-the-moneyoptionsandCVRspotentiallyconvertibleinto15,600,034commonshares (2020 – 32,112 out-of-the-money options and CVRs potentially convertible into 15,600,034 commonshares).

21.SUPPLEMENTALCASHFLOWINFORMATION

The following tables summarize other adjustments for non-cash income statement items, changes in operatingworkingcapitalitemsandsignificantnon-cashitems:


Otheroperatingactivities 2021 2020Adjustmentsfornon-cashincomestatementitems:

Netrealizablevalueadjustmentforinventories $ (8,143)$ 11,720(Gains)lossesoncommodityandforeigncurrencycontracts(Note4c) (2,377) 8,823Share-basedcompensationexpense 880 1,003Shareof(income)lossfromassociateanddilutiongain(Note9) (198) 2,929Gainonsaleofmineralproperties,plantandequipment (110) (35)Lossonderivatives(Note4c) 7 —

$ (9,941)$ 24,440






Changesinnon-cashoperatingworkingcapitalitems: 2021 2020Tradeandotherreceivables $ 1,223 $ 39,608Inventories (39,934) 8,990Prepaidexpenses (2,180) (2,055)Accountspayableandaccruedliabilities (6,415) (7,562)Provisions (92) (830) $ (47,398)$ 38,151

CashandCashEquivalentsMarch31,

2021December31,

2020Cashinbanks $ 133,497 $ 167,113

22.SEGMENTEDINFORMATION

TheCompanyreviews its segment reporting toensure it reflects theoperational structureof theCompanyandenablestheCompany'sChiefOperatingDecisionMaker("CODM")toreviewoperatingsegmentperformance.Wehave determined that each producing mine and significant development property represents an operatingsegment.TheCompanyhasorganizeditsreportableandoperatingsegmentsbysignificantrevenuestreamsandgeographicregions.

SignificantinformationrelatingtotheCompany’sreportableoperatingsegmentsissummarizedinthetablebelow:

ForthethreemonthsendedMarch31,2021

Segment/Country Operation Revenue

Productioncostsandroyalties Depreciation

Mineoperatingearnings

Minecareandmaintenance

Capitalexpenditures(1)

SilverSegment:Mexico LaColorada $ 5,330 $ 4,204 $ 2,364 $ (1,238) $ — $ 9,468Peru Huaron 38,502 21,706 2,875 13,921 — 1,612

Morococha 24,357 18,164 3,550 2,643 — 2,391Bolivia SanVicente 24,651 15,909 2,936 5,806 — 558Argentina ManantialEspejo 29,102 26,396 3,963 (1,257) — 1,378Guatemala Escobal — — — — 5,862 32TotalSilverSegment 121,942 86,379 15,688 19,875 5,862 15,439GoldSegment:

Mexico Dolores(2) 72,493 28,840 28,581 15,072 — 8,918

Peru Shahuindo 58,337 25,772 9,158 23,407 — 2,822LaArena 55,953 19,063 11,251 25,639 — 14,719

Canada Timmins 59,374 42,988 10,040 6,346 — 8,866TotalGoldSegment 246,157 116,663 59,030 70,464 — 35,325Othersegment:Canada PasCorp — — 119 (119) — 81Argentina Navidad — — — 1,404 61Other Other — — 256 (256) — 47

Total $ 368,099 $ 203,042 $ 75,093 $ 89,964 $ 7,266 $ 50,953

(1) Includespaymentsformineralproperties,plantandequipmentandpaymentofequipmentleases.(2) TheminewasreclassifiedtotheGoldSegmentin2021asaresultofexpectedminesequencingintoahighergoldzone.





ForthethreemonthsendedMarch31,2020

Segment/Country Operation Revenue

Productioncostsandroyalties Depreciation

Mineoperatingearnings

Minecareandmaintenance

Capitalexpenditures(1)

SilverSegment:

Mexico LaColorada $ 34,824 $ 21,432 $ 5,917 $ 7,475 $ — $ 8,395Peru Huaron 17,822 15,219 3,035 (432) 2,254 1,413

Morococha 14,576 15,241 3,481 (4,146) 2,203 2,624Bolivia SanVicente 13,320 11,280 2,432 (392) — 1,925Argentina ManantialEspejo 21,425 19,257 1,796 372 1,973 4,261Guatemala Escobal — — — — 6,414 11TotalSilverSegment 101,967 82,429 16,661 2,877 12,844 18,629GoldSegment:Mexico Dolores(2) 61,396 52,659 25,971 (17,234) — 15,124

Shahuindo 83,587 34,246 13,850 35,491 857 7,932LaArena 41,350 19,732 7,465 14,153 823 12,698

Canada Timmins 70,128 41,155 13,808 15,165 — 4,507TotalGoldSegment 256,461 147,792 61,094 47,575 1,680 40,261Othersegment:Canada PasCorp — — 128 (128) — 248Argentina Navidad — — — — 1,500 8Other Other — — 266 (266) — 668Total $ 358,428 $ 230,221 $ 78,149 $ 50,058 $ 16,024 $ 59,814

(1) Includespaymentsformineralproperties,plantandequipmentandpaymentofequipmentleases.(2) TheminewasreclassifiedtotheGoldSegmentin2021asaresultofexpectedminesequencingintoahighergoldzone.

AtMarch31,2021

Segment/Country Operation Assets Liabilities NetassetsSilverSegment:Mexico LaColorada $ 248,883 $ 43,047 $ 205,836Peru Huaron 115,910 45,766 70,144

Morococha 120,255 36,093 84,162Bolivia SanVicente 81,371 41,044 40,327Argentina ManantialEspejo 71,582 27,703 43,879Guatemala Escobal 287,434 21,681 265,753TotalSilverSegment 925,435 215,334 710,101GoldSegment:

Mexico Dolores(1) 753,807 166,368 587,439Peru Shahuindo 539,856 165,280 374,576

LaArena 284,823 108,240 176,583Canada Timmins 408,109 59,377 348,732TotalGoldSegment 1,986,595 499,265 1,487,330Othersegment:Canada PasCorp 187,201 17,508 169,693Argentina Navidad 193,047 193,047

Other 70,332 47,213 23,119

Total $ 3,362,610 $ 779,320 $ 2,583,290

(1) TheminewasreclassifiedtotheGoldSegmentin2021asaresultofexpectedminesequencingintoahighergoldzone.





AtDecember31,2020

Segment/Country Operation Assets Liabilities Netassets

SilverSegment:Mexico LaColorada $ 231,217 $ 48,971 $ 182,246Peru Huaron 113,177 40,663 72,514

Morococha 121,004 34,906 86,098Bolivia SanVicente 83,668 40,536 43,132Argentina ManantialEspejo 75,113 26,950 48,163Guatemala Escobal 288,588 24,427 264,161TotalSilverSegment 912,767 216,453 696,314GoldSegment:Mexico Dolores(1) 752,873 169,444 583,429Peru Shahuindo 566,734 201,427 365,307

LaArena 299,372 112,475 186,897Canada Timmins 414,396 60,482 353,914TotalGoldSegment 2,033,375 543,828 1,489,547Othersegment:Canada PasCorp 230,872 18,795 212,077Argentina Navidad 192,999 — 192,999

Other 63,862 48,960 14,902Total $ 3,433,875 $ 828,036 $ 2,605,839

(1) TheminewasreclassifiedtotheGoldSegmentin2021asaresultofexpectedminesequencingintoahighergoldzone.

Threemonthsended

March31,ProductRevenue 2021 2020Refinedsilverandgold $ 278,925 $ 281,686Zincconcentrate 25,285 18,962Leadconcentrate 17,857 34,549Copperconcentrate 29,834 10,205Silverconcentrate 16,198 13,026Total $ 368,099 $ 358,428

23.INCOMETAXES

ComponentsofIncomeTaxExpense


Currentincometaxexpense $ 26,576 $ 19,323Deferredincometaxexpense 11,401 33,397Incometaxexpense $ 37,977 $ 52,720

IncometaxexpensediffersfromtheamountthatwouldresultfromapplyingtheCanadianfederalandprovincialincometaxratestoearningsbeforeincometaxes.Thesedifferencesresultfromtheitemsshownonthefollowingtable,whichresultsineffectivetaxratesthatvaryconsiderablyfromthecomparableperiod.ThemainfactorsthatimpactedtheeffectivetaxrateforthethreemonthsendedMarch31,2021andthecomparableperiodfor2020werechangesintherecognitionofcertaindeferredtaxassets(resultingprimarilyfromunrealizedlossesonshort-term investments and foreign denominated liabilities), mining taxes paid, and withholding taxes remitted onpaymentsfromforeignsubsidiaries.TheCompanycontinuestoexpectthattheseandotherfactorswillcontinuetocausevolatilityineffectivetaxratesinthefuture.





ReconciliationofEffectiveIncomeTaxRate


Earnings(loss)beforetaxesandnon-controllinginterests $ 30,415 $ (24,515)StatutoryCanadianincometaxrate 27.00% 27.00%Incometaxexpense(recovery)basedonaboverates $ 8,212 $ (6,619)Increase(decrease)dueto:Non-deductibleexpenditures 1,367 2,096Foreigntaxratedifferences 3,915 6,911Changeinnetdeferredtaxassetsnotrecognized:-Argentinaexplorationexpenditures 474 735-Otherdeferredtaxassets 14,116 24,172Effectofothertaxespaid(miningandwithholding) 8,374 4,562Effectofforeignexchangeontaxexpense 7,662 40,971Non-taxableimpactofforeignexchange (2,546) (17,632)Changeinnon-deductibleportionofreclamationliabilities (3,243) 819Changeinopeningtemporarydifferences 514 (1,327)Other (868) (1,968)

Incometaxexpense $ 37,977 $ 52,720

24.CONTINGENCIES

The Company is subject to various legal, tax, environmental and regulatorymatters that arise in the ordinarycourseofbusinessactivities.Eachofthesemattersissubjecttovariousuncertaintiesanditispossiblethatsomeof thesemattersmay be resolved unfavorably to the Company. In the opinion ofmanagement none of thesemattersareexpectedtohaveamaterialadverseeffectontheresultsofoperationsorfinancialconditionsoftheCompany.SinceDecember31,2020,therehavebeennosignificantchangestothesecontractualobligationsandcommitments.

25.RELATEDPARTYTRANSACTIONS

TheCompany’srelatedpartiesincludeitssubsidiaries,associatesoverwhichitexercisessignificantinfluence,andkeymanagementpersonnel.TransactionswiththeCompany'ssubsidiarieshavebeeneliminatedonconsolidation.RelatedpartytransactionswithMaverixaremeasuredattheamountofconsiderationestablishedandagreedtobythepartiesandhavebeendisclosed inNote9ofthesecondensedinterimconsolidatedfinancialstatements.TherewerenootherrelatedpartytransactionsforthethreemonthsendedMarch31,2021and2020.





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FIRST QUARTER REPORT TO SHAREHOLDERS