Earnings Call Excerpt
Pan American Silver Corp. (PAAS)
Q4 2005 Earnings Conference Call
February 23rd 2006, 2:00 PM.
Executives:
Ross Beaty, Chairman
Geoff Burns, President and Chief Executive Officer
Andy Pooler, Vice President of Operations
Steve Busby, Vice President of Projects
Rob Doyle, Chief Financial Officer
Brenda Radies, Vice President of Corporate Relations
Analysts:
Ivan Sacks, Institutional Equity
Adrian Day, Adrian Day Asset Management
John Doody, Gold Stock Analyst
Haytham Hodaly, Salman Partners
Presentation
Operator
Good afternoon, ladies and gentlemen. My name is Sandra, and I will be your conference facilitator today. At this time, I would like to welcome everyone to your Pan American Silver Corporation Fourth Quarter 2005 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer period. If you would like to ask a question during this time, please press "*" then the number "1" on your telephone keypad. If you would like to withdraw your question, press the "#" key. Thank you. It is now my pleasure to turn the floor over to your host, Mr. Ross Beaty, Chairman and Chief Executive Officer. Sir, you may begin your conference.
Ross Beaty, Chairman
Thank you very much, operator. Good morning and good afternoon ladies and gentlemen and welcome to the Pan American 2005 results conference call. With me in Vancouver are Geoff Burns, who actually is Pan American's Chief Executive Officer, and Geoff will review our operations and projects with you after I have some preliminary comments. We also have our Vice President of Operations, Andy Pooler, our Vice President of Projects, Steve Busby, and our Chief Financial Officer, Rob Doyle, as well as Brenda Radies, our Vice President of Corporate Relations. Starting with our financial and operating results, our Q4 results and annual results do not really reflect our good operating picture today. They are heavily skewed by one-time non-cash charges in Q4 of 2005, and our one-time gain in Q4 of 2004 resulting from our sale of the Dukat mine.
I have to begin by saying that I am frustrated by our need to restate our 2004 and 2005 earnings, due to a mistake in interpretation in hedge accounting by our auditors. We have hedged for reasonable production for years, and all our accounting for this was reviewed quarterly and received the blessing of our auditors. This year, and we were only informed of this 10 days ago, our auditors told us they felt we had changed how we accounted for this hedge production, resulting in our need to restate the last 7 quarters and use a new method to account for our hedges.
Thank you. At this time, if you wish to ask a question, please press "*" ?1
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