Maybe. Looking through the press release I don't see any major production issues. A minor reduction in Dolores (Mex) production to fix a broken crusher. A larger production hit at Manantial (Arg) due to switching to processing medium-grade waste ore. Confirmed annual guidance at the end:
"However, the stringent importation restrictions enacted in Argentina severely restricted our ability to mine productively at Manantial Espejo. Because of that, we made a decision to process lower grade stockpile ores while focusing on waste mining. This should allow for more efficient high- grade ore mining to begin again in early 2013. Despite the shortfall in Argentina , I remain confident that we will achieve our full year silver production guidance of 24.25 to 25.5 million ounces and our annual cost guidance of $11.50 to $12.50 per ounce, net of by-product credits."
No change in Navidad status:
"As announced on July 2 (nd) 2012, given the fiscal implications of the proposed new legislation to regulate all oil and gas and mining activities in the province of Chubut, Argentina , Pan American has curtailed its project development activities at the Navidad silver project until changes, if any, to the law relating to mining activities in the province are enacted and the true implications of that law can be properly assessed. During the third quarter, the Company spent $3.9 million continuing community relations efforts and advancing limited technical work aimed at completing an environmental impact assessment by year-end.
In view of the delay at Navidad , the Company has successfully redeployed its project development team to focus on the Leach Pad 3 construction at the Dolores mine, as well as the evaluation of potential expansion opportunities at the La Colorada and Dolores mines in Mexico."
It is kind of expected miss; analysts are still behind in understanding that both Bolivia and Argentina do not contribute earnings. Also, they got broken crusher in Dolores (anyone with MFN experience should not be surprised much :).
In overall, it is not too bad, imho. Dolores is still producing; it’s already good (or even amazing). Peruvian operations are better now; that’s very important turnaround component. Market reaction will depend a lot on details (Navidad and Dolores) that company will be asked to disclose during conference call tomorrow.