Pan American Silver’s quarterly earnings came in below consensus, but shares are on the rise nevertheless. BNN speaks to Geoff Burns, CEO, Pan American Silver, to get his outlook for production in Mexico and Argentina, and silver prices in general.

Please click here to see the clip.

First Quarter 2010 Highlights are as follows:

Gold production increased 34% to 27,896 ounces.

• Cash costs (2) declined 27% to $4.35 per ounce of payable silver, net of by-product credits.

• Mine operating earnings (3) increased 252% to $36.9 million.

• Net income increased 189% to $19.1 million or $0.18 per share.

• Cash flow from operations (before changes in non-cash working capital) (4) increased 127% to $42.1 million, or $0.39 per share.

• Sales rose 88% to $132.4 million.

• First semi-annual dividend of $0.025 per share paid to shareholders in March.

• Completed acquisition of Aquiline Resources Inc. and launched a comprehesive development program at the Navidad silver project in Argentina.

To read the whole news release please click here.

Note the dramatic drop in their cash costs which Geoff puts down partly to higher gold prices, which is a by-product for PAAS. Going forward they are predicting output of 20 million ounces rising to 40 million ounces plus by 2014. Currently number two to Fresnillo, could challenge for the top spot shortly. Seven mines in operation now with two more heading for production shortly, so they are aiming to become the brand name in the silver space. All bodes well for the future.

Pan American Silver Corporation trades on the NASDAQ under the symbol of PAAS and on the Toronto Stock Exchange under the symbol of PAA.

PAAS has a market capitalization of $2.98 billion, with 106.09 million shares outstanding. PAAS closed yesterday at $27.87.

Keep smiling its all falling into place for gold and silver bugs.

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