Good morning ladies and gentlemen. My name is Pam and I'll be your conference operator today. At this time, I would like to welcome everyone to the Pan American Silver Corporation Third Quarter 2006 Earnings 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. (Operator Instructions). Thank you. It is now my pleasure to turn the floor over to your host, Mr. Ross Beaty, Chairman. Sir, you may begin your conference.

Thank you very much operator, and good morning ladies and gentlemen. Welcome to Pan American Silver's third quarter conference call. I'd first want to apologize for following up the time a little bit. We changed it last night to this morning. We originally planned to do it on Monday morning, but we thought it was better to give some color to the news release more quickly than three days later. The reason we originally thought we would delay it is because I am actually speaking today from the beautiful historic silver mining town of Alamos in Mexico, where yesterday our full Board of Directors met here in person to review our quarterly results, projects, operations, and plans. And right after this call ends, our Board and all our senior managers will head out to the Alamo Dorado mine, our newest silver mine to participate in its official inauguration. Along with the Board and our senior management team, we will congratulate the whole 600 person strong Alamo Dorado construction team for their amazing success at bringing the Alamo Dorado mine into production on time and on budget. I will talk more about this later. So because we have the inauguration happening today, we had a Board meeting last night, we decided we put this call together today instead of delaying it until Monday. Around the table with me today are, Geoff Burns, Pan American Silver's CEO; Andy Pooler, our Senior VP, Operations; Michael Steinmann, Senior VP, Exploration; Rob Doyle, our Chief Financial Officer; Alexis Stewart; Director of Investor Relations; and Joe Phillips, the President of our Mexican Operations to whom we owe so much regarding Alamo Dorado's great record. As well, there are seven mining analysts here, who have worked with -- who we invited for the Alamo Dorado opening and…

Thank you. (Operator Instructions). Sir, there appears to be no questions at this time.

I am sorry. One moment please, operator. Operator, we have one call here from the room. One question I should take from the room from John Doody. John.

Yes, Ross, you have been doing some work in your small mine in Bolivia. Can you give us any current update or what the political situation is there vis-à-vis mining?

Sure. The question was, what is the political climate in Bolivia, and probably by extension Peru, where we have operations active and where there has some been some political uncertainty in the last little while. Regarding Bolivia, the first thing I want to say is that, our San Vicente mine represents 2% of our assets. It's an important asset to us, but it is not terribly material in the big picture. We like San Vicente because it's a high grade, standard milling, easy milling, very nice deposit. We have done a lot of work there over the years to explore the project and expand the reserves. In Q3, we began producing from San Vicente at a relatively small scale, just a couple of hundreds tonnes a day, and we're milling the ore at a custom mill about 45 kilometers from San Vicente. The mining and the milling operation has gone on without any delays, without any issues, and it's very profitable today. So, we are very pleased to have it up and running again. At the same time, we are working on the feasibility study and detailed engineering to build a new mill right onsite at San Vicente in the next couple of years. And so, we've been working hard there and we have been working more or less as we intend to do despite a lot of noise. There has been a lot of political noise and a lot of our shareholders seem to get fussed and worried and investors get fussed and worried by all the noise. It is not terribly friendly noise. The President has been talking about nationalizing the mining industry and taking away rights and doing all sorts of investor-unfriendly things -- foreign investor unfriendly things. We've just kept our heads down and we've a…

Sir, we do have a question from the line.

Okay.

Your first question comes from [Randal Stevens], please go ahead.

Yes, do you hedge forward any of your production?

No, we don’t, we have no hedge positions outstanding right now at all; we did hedge some zinc last year, we closed that out in June this year completely, and we are unexposed in every way; we have a small program where we sell our silver as soon as we produce it rather than wait for 3 to 5 months that it gets priced under smelting contract, so that's not properly speaking hedging.

Thank you.

Okay.

(Operator Instructions).

We've got one more call here from the room, operator, go ahead.

Okay.

Hi, you mentioned that mill work pressure has been resolved facing the mine.

Right.

You mentioned that mining is trying to catch up and obviously opening more mining areas, can you talk a little bit about the timing for that on, or will you need to access some of those (inaudible).

Sure. Andy?

Yes, this is Andy Pooler, Senior Vice President of Operations. We can see great response from development into the higher grade areas, which we call the (inaudible) in first quarter of 2007, at this time we are going to rely a lot less (inaudible) which we are currently processing about 3,000 tonnes a month.

Thanks Andy.

Question coming from [Brian Benahiem] of [Benaheim Trust Management]; please go ahead.

Could just elaborate a little bit on the income tax charge this quarter you just referred to, was that a catch-up charge or a previous in year, or was that all from the third quarter and you expect that to recur in coming quarters at the same rate.

Brian, most of that charge was the current charge based on our cash flow income generated from our Peruvian operations during the quarter. So, I would expect that it's going to be of that kind of level going forward.

Thank you, congratulations.

Thank you.

(Operator Instructions)

We have gone off lately today operator, I guess we will close the call with that and I thank everybody for joining us today. This call will be taped and if you have got any further questions, call us up in Vancouver on Monday, morning.

Thank you. And this concludes today's Pan American Silver Corporation third quarter 2006 Earnings Call. You may now disconnect and have pleasant day.