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Pan American Silver 3Q net income falls 37 percent

The Associated Press

NEWS: Pan American Silver Corp. said that its net income fell 37 percent in the third quarter, even as silver and gold production increased. The Canadian mining company's results beat expectations and its shares rose Thursday.

DETAILS: The company, which is based in Vancouver, produces and sells silver, gold, copper, lead, and zinc.

Silver production rose 7 percent to $6.7 million ounces in the quarter. Gold production jumped 48 percent to 41,600 ounces, a record for the company, it said.

NUMBERS: Pan American's net income fell to $14.2 million, or 9 cents per share, in the three months ended Sept. 30. That compares with $22.6 million, or 15 cents per share, in the same quarter a year ago.

Adjusted to exclude one-time items, earnings were 8 cents per share.

Analysts, on average, expected earnings of 2 cents per share, according to FactSet.

Revenue fell 15 percent to $213.6 million. Analysts expected revenue of $196.4 million.

FUTURE: Pan American said it is confident that it will reach its goal of producing between 25 million to 26 million ounces of silver and 125,000 to 135,000 ounces of gold this year.

It also expects to produce 38,500 to 41,500 metric tons of zinc, 12,500 to 13,500 metric tons of lead and 4,500 to 5,000 metric tons of copper. A metric ton equals 1,000 kilograms, or roughly 2,204.6 lbs.

STOCK: Up 69 cents, or 6.8 percent, to $10.98 in midday trading Thursday.