XML 64 R26.htm IDEA: XBRL DOCUMENT v3.22.0.1
Share-Based Compensation And Other Related Information
 12 Months Ended
Dec. 31, 2021
Disclosure of share-based payment arrangements [Abstract]  
Share-Based Compensation And Other Related Information
19. SHARE CAPITAL AND EMPLOYEE COMPENSATION PLANS
a.Stock options and common shares issued as compensation ("Compensation Shares")
For the year ended December 31, 2021, the total share-based compensation expense relating to stock options and Compensation Shares was $5.1 million (2020 - $3.0 million) and is presented as a component of general and administrative expense.
•Stock options
During the year ended December 31, 2021, the Company granted 53,115 (2020 – 7,605 stock options) stock options.
During the year ended December 31, 2021, the Company issued 65,780 common shares in connection with the exercise of stock options (2020 – 329,379 common shares in connection with the exercise of 329,711 stock options).
•Compensation shares
During the year ended December 31, 2021, the Company issued 9,646 common shares to Directors in lieu of Directors' fees of $0.3 million (2020 - 9,883 common shares in lieu of fees of $0.2 million).
The following table summarizes changes in stock options for the years ended December 31:
 Stock Options
  
 
Shares		Weighted
Average Exercise
Price CAD$
As at December 31, 20191,143,348 $33.84 
Granted7,605 $39.48 
Exercised(329,711)$19.23 
Expired(482,438)$53.41 
Forfeited(21,387)$43.08 
As at December 31, 2020317,417 $18.78 
Granted53,115 30.70 
Exercised(65,780)$11.77 
Expired(2,162)41.62 
Forfeited(23,587)$32.27 
As at December 31, 2021279,003 $21.38 
The following table summarizes information about the Company's stock options outstanding at December 31, 2021:
 Options OutstandingOptions Exercisable
Range of Exercise
Prices
CAD$
Number Outstanding as at December 31, 2021Weighted Average
Remaining
Contractual Life
(years)		Weighted
Average
Exercise Price
CAD$		Number Outstanding as at December 31, 2021Weighted
Average
Exercise
Price CAD$
$9.76 - $17.1148,458 0.9 $11.59 48,458 $11.59 
$17.12 - $24.46143,896 3.4 $18.90 143,896 $18.90 
$24.47 - $31.8174,720 6.4 $29.50 21,605 $26.54 
$31.82 - $41.6211,929 3.9 $40.26 8,128 $40.62 
 279,003 3.8 $21.38 222,087 $18.84 
The following assumptions were used in the Black-Scholes option pricing model in determining the fair value of options granted during the years ended December 31:
20212020
Expected life4.0 4.0 
Expected volatility44.0 %37.9 %
Expected dividend yield2.4 %1.1 %
Risk-free interest rate1.9 %0.8 %
Weighted average exercise price (CAD$)$30.70 $39.45 
Weighted average fair value (CAD$)$9.39 $15.80 
b.PSUs
PSUs are notional share units that mirror the market value of the Company’s common shares. Each vested PSU entitles the participant to a cash payment equal to the value of an underlying share, less applicable taxes, at the end of the term, plus the cash equivalent of any dividends distributed by the Company during the three-year performance period. PSU grants will vest on the date that is three years from the date of grant subject to certain exceptions. Performance results at the end of the performance period relative to predetermined performance criteria and the application of the corresponding performance multiplier determine how many PSUs vest for each participant. The Board of Directors approved the issuance of 79,417 PSUs for 2021 with a share price of CAD $32.72 (2020 - 62,920 PSUs approved at a share price of CAD $39.51). Compensation expense for PSUs was $1.9 million for the year ended December 31, 2021 (2020 - $4.2 million) and is presented as a component of general and administrative expense. 
At December 31, 2021, the following PSUs were outstanding:  
PSUNumber OutstandingFair Value
As at December 31, 2019247,601 $5,896 
Granted62,920 1,942 
Paid out(54,962)(2,626)
Change in value— 3,658 
As at December 31, 2020255,559 $8,870 
Granted79,417 2,049 
Paid out(117,328)(4,539)
Forfeited— — 
Change in value— (901)
As at December 31, 2021217,648 $5,479 
c.RSUs
Under the Company’s RSU plan, selected employees are granted RSUs where each RSU has a value equivalent to one Pan American common share. At the time of settlement, the Board of Directors has the discretion to settle the RSUs with cash or common shares. The RSUs vest in three installments, the first 33.3% vest on the first anniversary date of the grant, the second 33.3% vest on the second anniversary date of the grant, and a further 33.3% vest on the third anniversary date of the grant. Additionally, RSU value is adjusted to reflect dividends paid on common shares over the vesting period. 
Compensation expense for RSUs was $1.8 million for the year ended December 31, 2021 (2020 – $5.0 million) and is presented as a component of general and administrative expense. 
At December 31, 2021, the following RSUs were outstanding:
RSUNumber OutstandingFair Value
As at December 31, 2019299,216 $7,107 
Granted261,224 6,302 
Paid out(148,049)(4,762)
Forfeited(15,819)(545)
Change in value— 5,628 
As at December 31, 2020396,572 $13,730 
Granted240,366 5,818 
Paid out(197,320)(4,829)
Forfeited(13,218)(329)
Change in value— (3,699)
As at December 31, 2021426,400 $10,691 
d.Issued share capital 
The Company is authorized to issue 400,000,000 common shares without par value.
e.Dividends 
The Company declared the following dividends for the years ended December 31, 2021 and 2020:
Declaration dateRecord dateDividend per common share
February 23, 2022 (1)
March 7, 2022$0.12 
November 9, 2021November 22, 2021$0.10 
August 10, 2021August 23, 2021$0.10 
May 12, 2021May 25, 2021$0.07 
February 17, 2021March 1, 2021$0.07 
November 4, 2020November 16, 2020$0.07 
August 5, 2020August 17, 2020$0.05 
May 6, 2020May 19, 2020$0.05 
February 19, 2020March 2, 2020$0.05 
(1)These dividends were declared subsequent to the year end and have not been recognized as distributions to owners during the period presented.
f.CVRs 
As part of the acquisition of Tahoe Resources Inc ("Tahoe"), on February 22, 2019, the Company issued 313,887,490 Contingent Value Rights ("CVRs"), with a term of 10 years, which were convertible into 15,600,208 common shares upon the first commercial shipment of concentrate following the restart of operations at the Escobal mine. As of December 31, 2021 and 2020, there were 313,883,990 CVRs outstanding which were convertible into 15,600,034 common shares