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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------------------
FORM 6-K
REPORT OF FOREIGN ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER
THE SECURITIES EXCHANGE ACT OF 1934
DATED MAY 13, 2003
Commission File Number 000-13727
PAN AMERICAN SILVER CORP.
-------------------------
(Registrant's name)
SUITE 1500, 625 HOWE STREET
VANCOUVER, BRITISH COLUMBIA, CANADA V6C 2T6
-------------------------------------------
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F [ ] Form 40-F [X]
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101(b)(1): [ ]
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a
Form 6-K if submitted solely to provide an attached annual report to security
holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as
permitted by Regulation S-T Rule 101 (b)(7): [ ]
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a
Form 6-K if submitted to furnish a report or other document that the registrant
foreign private issuer must furnish and make public under the laws of the
jurisdiction in which the registrant is incorporated, domiciled or legally
organized (the registrant's "home country"), or under the rules of the home
country exchange on which the registrant's securities are traded, as long as the
report or other document is not a press release, is not required to be and has
not been distributed to the registrant's security holders, and, if discussing a
material event, has already been the subject of a Form 6-K submission or other
Commission filing on EDGAR.
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes [ ] No [X]
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-________
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant, Pan American Silver Corp., has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
Date: May 13, 2003
PAN AMERICAN SILVER CORP.
By:
/s/ Ross Beaty
----------------------------
Ross Beaty
Chairman and C.E.O.
[PAN AMERICAN SILVER CORP. LETTERHEAD]
Pan American will host a conference call on Tuesday May 13th at 9:00 a.m.
Pacific time (12 a.m. Eastern time) to discuss the first quarter financial and
operational results, give project updates, and answer questions. To listen to
the call live, dial 1-416-695-5806. To listen to a playback of the call after it
has ended, dial 1-416-695-5800 and enter the pass code 1415074. This option will
be available for 2 weeks after the call. The conference call will also be
broadcast live and archived for later playback on the Internet at
http://www.q1234.com.
PAN AMERICAN SILVER REPORTS RECORD SILVER PRODUCTION
IN FIRST QUARTER 2003
HIGHLIGHTS
o Record quarterly silver production of 2.15 million ounces from Pan
American's four wholly owned silver operations.
o Acquisition of Corner Bay Silver completed and feasibility study review of
Alamo Dorado silver project initiated.
o Excellent silver and gold drilling results at Manantial Espejo property,
Argentina.
o La Colorada mine expansion on schedule and budget for July 2003 start-up.
FINANCIAL (ALL AMOUNTS ARE EXPRESSED IN US$)
Pan American Silver Corp. (NASDAQ: PAAS; TSX: PAA; Warrants TSX: PAA_t) reported
a net loss for the first quarter of $1.1 million ($0.02 per share) compared to a
net loss of $1.3 million ($0.03 per share) for the first quarter of 2002.
Consolidated silver production for the three months ended March 31, 2003
totalled 2.15 million ounces representing a four percent increase from the same
period of the prior year. This increase was due to increased production from the
Huaron mine and production from silver-rich pyrite stockpiles acquired late last
year partially offset by lower production from the Quiruvilca mine. Zinc metal
produced during the first quarter of 2003 amounted to 9,343 tonnes (2002 -
10,107 tonnes), lead production was 5,812 tonnes (2002 - 5,441 tonnes) and
copper production was 767 tonnes (2002 - 669 tonnes).
Revenue for the first quarter of 2003 amounted to $7.8 million (2002 - $10.2
million). The decrease in revenue was due to the timing of concentrate
shipments. Revenue for the first quarter of this year was generated from sales
of 14,260 tonnes of zinc concentrate (2002 - 18,990 tonnes), 1,256 tonnes of
lead concentrate (2002 - 4,790 tonnes) and 2,878 tonnes of copper concentrate
(2002 - 2,934 tonnes). Operating costs were also lower for the first quarter of
2003 relative to 2002 because of lower shipments. The concentrate shipment
delays were
1500-625 HOWE STREET, VANCOUVER, BC CANADA V6C 2T6
TEL 604.684.1175 FAX 604.684.0147
www.panamericansilver.com
requested by certain purchasers to allow them to accumulate larger volumes and
thereby lower unit shipping costs.
The average metal prices realized during the first quarter of 2003 were
marginally higher than for the corresponding period of last year. The price
received per ounce of silver averaged $4.37 (2002 -- $4.15) and for zinc the
realized price per pound was $0.36 (2002 -- $0.36).
During the first quarter of 2003, operating activities generated cash of $0.5
million. Investing activities consumed $2.3 million and financing activities
generated $4.2 million. Operating cash flow resulted from an increase in cash
advances received for concentrates not shipped. Investing activities consisted
of spending on property plant and equipment of $5.4 million including $4.1
million for the La Colorada mine expansion and $0.5 million on infrastructure
and equipment at the Huaron mine. Cash of $3.1 million was received from the
acquisition of Corner Bay Silver Inc. Proceeds of $4 million were received from
the La Colorada expansion loan and repayments of $0.4 million were made on the
Huaron loan. Total debt and capital asset lease obligations outstanding at March
31, 2003 amounted to $9.2 million of which $1.6 million is current.
PERU OPERATIONS
Pan American's three Peru silver operations produced a total of 1.95 million
ounces of silver in the first quarter. The Huaron mine had a good quarter,
producing 1.2 million ounces of silver, 5,500 tonnes of zinc and 4,400 tonnes of
lead from 158,000 tonnes of ore at a total cash cost of $3.81 per ounce of
silver produced net of by product credits. The mine's 10 percent expansion,
which commenced in late 2002, is nearly complete and production for 2003 is
planned at 4.9 million ounces of silver. The Quiruvilca mine produced 0.6
million ounces of silver, 3,700 tonnes of zinc and 1,300 tonnes of lead in the
quarter from 121,000 tonnes of ore. Quiruvilca's operating results continue to
be negatively affected by low metal prices, and expected but lower-than-normal
grades in the current mining areas. Total cash costs at Quiruvilca were $5.20
per ounce of silver produced net of by product credits. The small pyrite
stockpile operation near the Huaron mine produced 0.13 million ounces of silver
in the quarter at a cash cost of $2.08 per ounce.
MEXICO OPERATIONS
At the Company's La Colorada mine, 0.2 million ounces of silver were produced in
the first quarter. Operating results continue to be treated as pre-production
revenue. The mine's fully financed $20 million expansion project remains on
schedule and budget for completion in early July, with forecast production of
2.2 million ounces in 2003 at a cash cost of $3.06 per ounce of silver. In March
the Company began drawing from the $10 million project loan from the
International Finance Corporation, a member of the World Bank Group, to fund
remaining capital expenditures.
The highlight of the first quarter was the completion of the Company's
acquisition of Corner Bay Silver and its wholly owned Alamo Dorado silver
project in Sonora State. This followed approval of the transaction by
shareholders in September and an agreement respecting water rights for the
project from Mexican authorities in February. Pan American is now updating the
-2-
Corner Bay feasibility study and a drilling and metallurgical testing program
has been initiated in order to evaluate a mill versus heap leach process for the
project. This program is expected to be complete in September and will enable
project financing later in the year and, subject to financing, commencement of
construction. Based on Corner Bay's original feasibility study, planned
production from Alamo Dorado is 6 million ounces per year at an average cash
cost of $3.25 per equivalent ounce of silver.
EXPLORATION AND DEVELOPMENT PROJECTS
A 6,000 meter drilling program at the 50 percent owned Manantial Espejo property
in Argentina concluded during the quarter, with excellent results. Planning is
now in progress for an underground tunnelling and drilling program, to commence
in late 2003. The recent drilling is expected to increase the current measured
and indicated resource of 4,390,000 tonnes grading 264 g/t silver and 4.51g/t
gold and inferred resource of 1,590,000 tonnes grading 258 g/t silver and 3.65
g/t gold. In Bolivia, silver production continued from the small scale San
Vicente silver mine under lease to a Bolivian mining company. Discussions remain
underway to re-initiate work that will enable a new feasibility study and
ultimately expanded mine production. Finally, in Russia, the Dukat mine
continued its start-up though production statistics are not yet available.
OTHER DEVELOPMENTS
Pan American is pleased to welcome several new members to its senior operating
group to better manage its strong growth. John Wright, President and Chief
Operating Officer, will be stepping down in mid-year for family reasons but he
will remain an active Director of the company. Geoff Burns has been appointed to
fulfil his functions. Mr. Burns has had a distinguished career in the mining
industry. He served in a variety of financial roles including Chief Financial
Officer and Controller with a major Canadian gold mining company from 1984 to
1998 and most recently he was Chief Financial Officer of a large US silver and
gold producer from 1999 to 2003. Brenda Radies has joined the company as Vice
President of Corporate Relations to replace Rosie Moore. Since 1993, Ms. Radies
has been with one of Canada's and the world's largest gold producers, most
recently as Director of Corporate Communications. Robert Pirooz has rejoined the
Company as Vice President, Legal Affairs. Finally, Bill Faust, a mining engineer
with broad experience in mine development and operations in North America and
Mexico, joins the company as manager of the Alamo Dorado silver mine development
project, a position he held with Corner Bay Silver.
SILVER MARKETS
The most reliable annual compendium of silver statistics was published on May 8,
2003 by London-based GFMS on behalf of the Silver Institute. GFMS reported that
the deficit between silver fabrication demand and conventional silver supply
(mine production and scrap) remained very large at 67.4 million ounces.
Industrial demand for silver increased in 2002, world silver mine production
declined (and is likely to decline further in 2003), and overall silver demand
fell by 3.5 percent, overwhelmingly due to a 28 percent slump in Indian
jewellery and silverware demand. Chinese government sales were reported to have
decreased to 51 million ounces from 68 million in 2002. Although GFMS increased
its estimate of remaining Chinese silver stocks, it
-3-
noted that Chinese internal demand increased sharply in 2002 almost eliminating
the historic surplus of Chinese mine supply. Once this surplus is eliminated,
China will be a net silver consumer which is expected to result in faster
depletion of remaining Chinese official silver stocks. The recent weakness of
the US dollar is also a positive factor in silver market fundamentals.
- End -
Ross J. Beaty, Chairman or Tony Hawkshaw, Chief Financial Officer 604-684-1175
To view Pan American's entire first quarter release, please visit
www.panamericansilver.com/s/InvestorRelations.asp or call the office for a faxed
copy.
CAUTIONARY NOTE
Some of the statements in this news release are forward-looking statements, such
as estimates of future production levels, expectations regarding mine production
costs, expected trends in mineral prices and statements that describe Pan
American's future plans, objectives or goals. Actual results and developments
may differ materially from those contemplated by these statements depending on
such factors as changes in general economic conditions and financial markets,
changes in prices for silver and other metals , technological and operational
hazards in Pan American's mining and mine development activities, uncertainties
inherent in the calculation of mineral reserves, mineral resources and metal
recoveries, the timing and availability of financing, governmental and other
approvals, political unrest or instability in countries where Pan American is
active, labor relations and other risk factors listed from time to time in Pan
American's Form 40-F.
-4-
FINANCIAL AND OPERATIONAL HIGHLIGHTS
THREE MONTHS ENDED
MARCH 31
----------------------------
2003 2002
---------- ----------
CONSOLIDATED FINANCIAL HIGHLIGHTS (IN THOUSANDS OF US DOLLARS)
Net income (loss) $ (1,104) $ (1,303)
Earnings (loss) per share (0.02) (0.03)
Contribution from mining operations 393 997
Capital spending 5,436 1,314
Exploration expense 496 83
Cash 12,561 19,921
Working capital $ 3,901 $ 14,298
CONSOLIDATED ORE MILLED & METALS RECOVERED TO CONCENTRATE
Tonnes milled 305,669 299,871
Silver metal - ounces 2,150,052 2,065,503
Zinc metal - tonnes 9,343 10,107
Lead metal - tonnes 5,812 5,441
Copper metal - tonnes 767 669
Net smelter return per tonne milled $ 40.42 $ 41.33
Cost per tonne 38.44 37.99
---------- ----------
Margin per tonne $ 1.97 $ 3.34
========== ==========
CONSOLIDATED COST PER OUNCE OF SILVER (NET OF BY-PRODUCT CREDITS)
Total cash cost per ounce $ 4.13 $ 3.84
Total production cost per ounce $ 4.60 $ 4.63
(In thousands of US dollars)
Direct operating costs & value of metals lost in smelting and refining $ 12,409 $ 12,535
By-product credits (4,335) (4,594)
---------- ----------
Total Cash operating costs 8,074 7,941
Depreciation, amortization & reclamation 902 1,619
---------- ----------
Total Production costs $ 8,977 $ 9,560
========== ==========
Ounces used in cost per ounce calculations 1,953,340 2,065,503
AVERAGE METAL PRICES
Silver - London Fixing $ 4.67 $ 4.49
Zinc - LME Cash Settlement per pound $ 0.36 $ 0.36
Lead - LME Cash Settlement per pound $ 0.21 $ 0.22
Copper - LME Cash Settlement per pound $ 0.75 $ 0.71
AVERAGE PRICES REALIZED
Silver - per ounce (note) $ 4.37 $ 4.15
Zinc - per pound $ 0.36 $ 0.36
Lead - per pound $ 0.21 $ 0.22
Copper - per pound (note) $ 0.67 $ 0.62
Note - Pan American pays a refining charge for silver and copper
-5-
MINE OPERATIONS HIGHLIGHTS
THREE MONTHS ENDED
MARCH 31
----------------------------
2003 2002
---------- ----------
HUARON MINE
Tonnes milled 158,040 149,100
Average silver grade - grams per tonne 264 269
Average zinc grade - percent 4.06% 4.12%
Silver - ounces 1,199,701 1,146,309
Zinc - tonnes 5,502 5,121
Lead - tonnes 4,416 3,515
Copper - tonnes 265 381
Net smelter return per tonne $ 45.62 $ 44.82
Cost per tonne 40.62 35.57
---------- ----------
Margin per tonne $ 5.00 $ 9.25
========== ==========
Total cash cost per ounce $ 3.81 $ 3.17
Total production cost per ounce $ 4.35 $ 3.61
(In thousands of US dollars)
Direct operating costs & value of metals lost in smelting and refining $ 7,004 $ 5,963
By-product credits (2,431) (2,329)
---------- ----------
Total cash operating costs 4,572 3,634
Depreciation, amortization and reclamation 647 507
---------- ----------
Total production costs $ 5,219 $ 4,141
========== ==========
Ounces for cost per ounce calculations 1,199,701 1,146,309
QUIRUVILCA MINE
Tonnes milled 121,345 135,148
Average silver grade - grams per tonne 183 192
Average zinc grade - percent 3.53% 4.04%
Silver - ounces 619,754 728,619
Zinc - tonnes 3,740 4,888
Lead - tonnes 1,303 1,819
Copper - tonnes 502 288
Net smelter return per tonne $ 34.55 $ 36.93
Cost per tonne 39.17 38.39
---------- ----------
Loss per tonne $ (4.62) $ (1.46)
========== ==========
Total cash cost per ounce $ 5.20 $ 4.44
Total production cost per ounce $ 5.46 $ 5.79
(In thousands of US dollars)
Direct operating costs & value of metals lost in smelting and refining $ 5,126 $ 5,485
By-product credits (1,903) (2,253)
---------- ----------
Total cash operating costs 3,223 3,232
Capital spending expensed and reclamation 164 987
---------- ----------
Total production costs $ 3,387 $ 4,219
========== ==========
Ounces for cost per ounce calculations 619,754 728,619
-6-
THREE MONTHS ENDED
MARCH 31
------------------------
2003 2002
-------- --------
LA COLORADA MINE
Tonnes milled 14,828 15,623
Average silver grade - grams per tonne 512 434
Silver - ounces 196,712 190,575
Zinc - tonnes 101 98
Lead - tonnes 93 107
Net smelter return per tonne $ -- $ 46.09
Cost per tonne -- 57.59
-------- --------
Loss per tonne $ -- $ (11.50)
======== ========
Total cash cost per ounce $ -- $ 5.64
Total production cost per ounce $ -- $ 6.30
(In thousands of US dollars)
Direct operating costs & value of metals lost in smelting and refining $ -- $ 1,087
By-product credits -- (12)
-------- --------
Total cash operating costs -- 1,075
Depreciation, amortization and reclamation -- 125
-------- --------
Total production costs $ -- $ 1,200
======== ========
Ounces for cost per ounce calculations -- 190,575
PYRITE STOCKPILE SALES
Tonnes sold 11,456 --
Average silver grade - grams per tonne 363 --
Silver ounces 133,885 --
Net smelter return per tonne $ 30.83 $ --
Cost per tonne 0.74 --
-------- --------
Margin per tonne $ 30.09 $ --
======== ========
Total cash cost per ounce $ 2.08 $ --
Total production cost per ounce $ 2.77 $ --
(In thousands of US dollars)
Value of metals lost in smelting and refining $ 279 $ --
By-product credits -- --
-------- --------
Total cash operating costs $ 279 --
Depreciation, amortization and reclamation 92 --
-------- --------
Total production costs 371 --
======== ========
Ounces for cost per ounce calculations 133,885 --
-7-
PAN AMERICAN SILVER CORP.
Consolidated Balance Sheets
(Unaudited - in thousands of U.S. dollars)
MARCH 31 DECEMBER 31
2003 2002
-------- -----------
CURRENT
Cash and cash equivalents $ 12,561 $ 10,185
Short-term investments 13 13
Accounts receivable 4,931 4,598
Inventories 7,593 4,637
Prepaid expenses 2,019 3,197
--------- ---------
Total Current Assets 27,117 22,630
Mineral property, plant and equipment, net 66,110 59,447
Investment and other properties (note 4) 83,048 4,193
Direct smelting ore 4,229 4,303
Other assets 4,413 4,393
--------- ---------
Total Assets $ 184,917 $ 94,966
========= =========
LIABILITIES
Current
Operating line of credit $ -- $ 125
Accounts payable and accrued liabilities (note 5) 14,501 15,227
Advances for metal shipments 6,228 2,158
Current portion of bank loans and capital lease 1,638 1,638
Current portion of severance indemnity and commitments 933 953
Current portion of deferred revenue 130 130
--------- ---------
Total Current Liabilities 23,430 20,231
Deferred revenue 1,006 923
Bank loans and capital lease (note 6) 7,535 3,942
Provision for reclamation 13,051 12,971
Provision for future income tax 19,035 --
Severance indemnities 1,521 1,407
--------- ---------
Total Liabilities 65,578 39,474
--------- ---------
SHAREHOLDERS' EQUITY
Share capital
Authorized:
100,000,000 common shares of no par value
Issued:
December 31, 2002 - 43,883,454 common shares
March 31, 2003 - 51,684,728 common shares 215,950 161,024
Additional paid in capital 11,117 1,092
Deficit (107,728) (106,624)
--------- ---------
Total Shareholders' Equity 119,339 55,492
--------- ---------
Total Liabilities and Shareholders' Equity $ 184,917 $ 94,966
========= =========
See accompanying notes to consolidated financial statements
-8-
PAN AMERICAN SILVER CORP.
Consolidated Statements of Operations and Deficit
(Unaudited - in thousands of U.S. dollars,
except for shares and per share amounts)
THREE MONTHS ENDED
MARCH 31,
---------------------------
2003 2002
---------- ----------
REVENUE $ 7,822 $ 10,199
EXPENSES
Operating 7,429 9,202
General and administration 401 359
Depreciation and amortization 471 1,429
Reclamation 79 198
Exploration 496 83
Interest expense 159 266
---------- ----------
9,035 11,537
---------- ----------
Net loss from operations (1,213) (1,338)
Other income 109 35
---------- ----------
Net loss for the period (1,104) (1,303)
Deficit, beginning of period (106,624) (72,966)
---------- ----------
Deficit, end of period $ (107,728) $ (74,269)
========== ==========
Basic and fully diluted loss per share ($0.02) ($0.03)
Weighted average shares outstanding 50,597,399 38,603,987
See accompanying notes to consolidated financial statements
-9-
PAN AMERICAN SILVER CORP.
Consolidated Statements of Cash Flows - Direct Method
(Unaudited - in thousands of U.S. dollars)
THREE MONTHS ENDED
MARCH 31,
-----------------------
2003 2002
-------- --------
OPERATING ACTIVITIES
Sales proceeds $ 11,958 $ 12,380
Hedging activities 164 313
Interest paid (70) (266)
Other income and expenses 19 36
Products and services purchased (10,585) (10,406)
Exploration (505) (77)
General and administration (504) (348)
-------- --------
477 1,632
-------- --------
FINANCING ACTIVITIES
Shares issued for cash 723 17,251
Share issue costs -- (792)
Proceeds from line of credit -- 110
Repayment of line of credit (125) --
Proceeds from bank loans 4,000 --
Repayment of bank loans (note 5) (407) (258)
-------- --------
4,191 16,311
-------- --------
INVESTING ACTIVITIES
Property, plant and equipment expenditures (5,436) (710)
Investment and other property expenditures 100 (604)
Acquisition of cash of subsidiary 3,063 --
Other (19) (39)
-------- --------
(2,292) (1,353)
-------- --------
Increase in cash and cash equivalents during the period 2,376 16,590
Cash and cash equivalents, beginning of period 10,185 3,331
-------- --------
Cash and cash equivalents, end of period $ 12,561 $ 19,921
======== ========
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS
Shares issued for acquisition of mineral property (note 4) $ -- $ 1,250
Shares issued for acquisition of subsidiary (note 2) 64,228 --
-------- --------
$ 64,228 $ 1,250
======== ========
See accompanying notes to consolidated financial statements
-10-
PAN AMERICAN SILVER CORP.
Consolidated Statements of Cash Flows - Indirect Method
(Unaudited - in thousands of U.S. dollars)
THREE MONTHS ENDED
MARCH 31,
-----------------------
2003 2002
------- -------
OPERATING ACTIVITIES
Net loss for the period $(1,104) $(1,303)
Items not involving cash
Depreciation and amortization 471 1,429
Reclamation provision 79 198
Operating cost provisions 352 (260)
Changes in non-cash operating working capital items 679 1,568
------- -------
Cash provided by operations 477 1,632
------- -------
FINANCING ACTIVITIES
Shares issued for cash 723 17,189
Share issue costs -- (730)
Proceeds from line of credit -- 110
Repayment of line of credit (125) --
Proceeds from bank loans 4,000 --
Repayment of bank loans (407) (258)
------- -------
4,191 16,311
------- -------
INVESTING ACTIVITIES
Property, plant and equipment expenditures (4,415) (710)
Mineral property expenditures 100 (743)
Changes in non-cash working capital items (1,021) 139
Acquisition of cash of subsidiary 3,063 --
Other (19) (39)
------- -------
(2,292) (1,353)
------- -------
Increase in cash and cash equivalents during the period 2,376 16,590
Cash and cash equivalents, beginning of period 10,185 3,331
------- -------
Cash and cash equivalents, end of period $12,561 $19,921
======= =======
SUPPLEMENTAL DISCLOSURE OF NON-CASH TRANSACTIONS
Shares issued for acquisition of mineral property (note 4) $ -- $ 1,250
Shares issued for acquisition of subsidiary (note 2) 64,228
------- -------
$64,228 $ 1,250
======= =======
See accompanying notes to consolidated financial statements
-11-
PAN AMERICAN SILVER CORP.
Consolidated Statements of Shareholders' Equity
For three months ended March 31, 2003
(in thousands of US dollars, except for shares)
COMMON SHARES ADDITIONAL
---------------------- PAID IN
SHARES AMOUNT CAPITAL DEFICIT TOTAL
---------- -------- ---------- --------- --------
Balance, December 31, 2001 37,628,234 $130,723 $ 1,120 $ (72,966) $ 58,877
Exercise of stock options 1,445,400 6,102 -- -- 6,102
Shares issued for cash, net of share
issue costs 3,450,000 15,599 -- -- 15,599
Issued on acquisition of Manantial
Espejo 231,511 1,250 -- -- 1,250
Issued on acquisition of royalty 390,117 3,000 -- -- 3,000
Issued as compensation payable 69,000 253 -- -- 253
Issued to purchase silver stockpiles 636,942 4,000 -- -- 4,000
Exercise of shares purchase warrants 32,250 97 -- -- 97
Foreign exchange translation
adjustment -- -- (28) -- (28)
Net loss for the year -- -- -- (33,658) (33,658)
---------- -------- ------- --------- --------
Balance, December 31, 2002 43,883,454 161,024 1,092 (106,624) 55,492
Exercise of stock options 164,615 723 -- -- 723
Issued on acquisition of Corner Bay 7,636,659 54,203 -- -- 54,203
Fair value of stock options granted -- -- 1,136 -- 1,136
Fair value of warrants granted -- -- 8,889 -- 8,889
Net loss for the quarter -- -- -- (1,104) (1,104)
---------- -------- ------- --------- --------
Balance, March 31, 2003 51,684,728 $215,950 $11,117 $(107,728) $119,339
========== ======== ======= ========= ========
-12-