Download PDF

1. Company Snapshot

1.a. Company Description

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia.It holds interests in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad mines.The company was formerly known as Pan American Minerals Corp.


and changed its name to Pan American Silver Corp.in April 1995.Pan American Silver Corp.


was incorporated in 1979 and is headquartered in Vancouver, Canada.

Show Full description

1.b. Last Insights on PAAS

Pan American Silver's recent performance was driven by notable growth in annual revenue and net income. The company's Q3 earnings revealed record revenue and free cash flow, accompanied by a higher dividend. Strong operations and rising liquidity also fueled investor interest, with a second-straight quarter of record cash flow. Furthermore, the company's strategic progress, despite operational challenges, has garnered attention. Its impressive financials have likely bolstered investor confidence. (Source: Pan American Silver Corp (PAAS) Q3 2025 Earnings Call Highlights).

1.c. Company Highlights

2. Pan American Silver's Q3 2025 Earnings: A Strong Performance

Pan American Silver reported record attributable free cash flow of $251.7 million and attributable revenue of $884.4 million for the third quarter of 2025. The company's net earnings were $169.2 million, or $0.45 basic earnings per share, while adjusted earnings were $181 million, or $0.48 basic adjusted earnings per share. Notably, the actual EPS came in at $0.673, slightly below estimates of $0.808. The company's financial performance was boosted by its acquisition of MAG Silver, which contributed to its revenue and cash flow.

Publication Date: Nov -16

📋 Highlights
  • Record Free Cash Flow:: Achieved $251.7M attributable free cash flow in Q3 2025, driven by $884.4M in attributable revenue.
  • Earnings Growth:: Net earnings rose to $169.2M ($0.45 EPS), with adjusted earnings at $181M ($0.48 EPS), reflecting strong operational performance.
  • Dividend Hike:: Increased dividend to $0.14/share, supported by $1.7B in liquidity and $146.9M in shareholder returns (dividends/share buybacks) YTD 2025.
  • Production Guidance Raised:: Raised silver production to 22–22.5M oz and reduced AISC to $14.50–16/oz, reflecting efficiency gains from MAG Silver acquisition (44% in Juanicipio).
  • Capital Investment & Liquidity:: Invested $35.3M in La Colorada and Jacobina projects, while maintaining $1.7B in total available liquidity for strategic opportunities.

Operational Highlights

The company reported attributable silver production of 5.5 million ounces and attributable gold production of 183,500 ounces. Silver segment cash costs were $10.41 per ounce, and all-in sustaining costs were $15.43 per ounce. Pan American Silver raised its attributable silver production guidance to 22-22.5 million ounces and lowered silver segment all-in sustaining costs to $14.50-16 per ounce. The company's operational performance was driven by its various mines, including La Colorada, Jacobina, and Escobal.

Growth Initiatives and Outlook

Pan American Silver invested $35.3 million in capital projects, mainly at La Colorada and Jacobina. The company is optimistic about its prospects, with a strong Q3 and a positive outlook for Q4. The Juanicipio mine had a positive impact in its first full quarter of production, and its full impact on silver production will be seen in Q4. Analysts estimate revenue growth of 18.0% for next year, driven by the company's growth initiatives and operational performance.

Valuation and Dividend

The company's valuation metrics indicate a reasonable price for its shares. The P/E Ratio is 26.67, while the P/S Ratio is 4.53. The Dividend Yield is 1.09%, indicating a relatively stable return for investors. The Board approved an increase to the dividend to $0.14 per common share, citing strong cash flow generation. The company's strong financial position, with $1.7 billion in total available liquidity, positions it well to act opportunistically.

Future Prospects

A detailed outlook for 2026, including production guidance and cost guidance, will be reported early next year. The company's operational portfolio is progressing well, with a strong pipeline of projects in development. The La Colorada Skarn project's PEA is expected to provide further insights into its potential, and the company is optimistic about its prospects. With a strong Q3 and a positive outlook for Q4, Pan American Silver is well-positioned for future growth.

3. NewsRoom

Card image cap

Galleon Gold Closed a $30 Million Financing with Lead Orders from Pan American Silver and Eric Sprott

Dec -04

Card image cap

Galleon Gold Announces Closing of Oversubscribed $30M Financing with Lead Orders from Pan American Silver and Eric Sprott

Dec -04

Card image cap

Resourcing Tomorrow: stakeholder collaboration key to artisanal sector formalisation

Dec -03

Card image cap

PAAS Reports Strong 2025 Exploration Results Across Operating Mines

Dec -02

Card image cap

Pan American Silver Posts Year-End Exploration Results Across Its Seven Mines

Dec -01

Card image cap

Pan American Silver Provides 2025 Year End Exploration Update

Dec -01

Card image cap

Pan American Silver Stock Hits 52-Week High: What's Driving It?

Dec -01

Card image cap

These stocks have the greatest “leverage” to rising gold prices: BofA

Dec -01

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.00%)

6. Segments

Gold - Jacobina

Expected Growth: 7%

Gold production at Jacobina, Pan American Silver Corp., is driven by increased ore processing rates, higher grades, and improved recoveries. The 7% growth is attributed to successful mine optimization efforts, enhanced exploration, and strategic investments in infrastructure, resulting in increased production and lower costs.

Gold - Shahuindo

Expected Growth: 7%

Shahuindo's 7% growth is driven by increasing gold production, improved ore grades, and higher mill throughput. Additionally, Pan American Silver Corp.'s focus on operational efficiencies, cost reductions, and exploration success have contributed to the mine's growth. Strong gold prices and a favorable mining environment in Peru have also supported the segment's expansion.

Gold - Dolores

Expected Growth: 7%

Gold - Dolores from Pan American Silver Corp. growth driven by increasing gold prices, strong mine production, and exploration success. Additionally, declining cash costs, improved recoveries, and robust demand from central banks and ETFs support growth. The 7% growth rate is also fueled by the company's focus on operational efficiency, cost management, and strategic acquisitions.

Gold - Timmins

Expected Growth: 7%

The 7% growth of Gold - Timmins from Pan American Silver Corp. is driven by increasing gold prices, improved mining efficiency, and successful exploration efforts. Additionally, the company's focus on cost reduction and optimization of operations has contributed to the growth. Furthermore, the Timmins mine's proximity to existing infrastructure and a skilled workforce has also supported the expansion.

Gold - El Peñon

Expected Growth: 7%

Gold - El Peñon from Pan American Silver Corp. growth driven by increasing gold prices, strong mine operating performance, and exploration success. Additionally, the mine's high-grade ore and low cash costs contribute to its profitability. Furthermore, Pan American Silver Corp.'s focus on operational efficiency and cost management also supports the growth.

Silver - Cerro Moro

Expected Growth: 7%

Cerro Moro's 7% growth is driven by increasing silver prices, rising production volumes, and improved operational efficiencies. The mine's high-grade ore and low cash costs also contribute to its strong performance. Additionally, Pan American Silver Corp.'s focus on exploration and expansion initiatives is expected to further boost production and drive growth.

Gold - La Arena

Expected Growth: 7%

Gold - La Arena from Pan American Silver Corp. growth driven by increasing gold prices, strong mine operating performance, and exploration success. Additionally, the company's focus on cost reduction, efficient capital allocation, and strategic acquisitions contribute to its 7% growth.

Gold - Minera Florida

Expected Growth: 7%

Minera Florida's 7% growth is driven by increasing gold production, driven by higher ore grades and improved recoveries. Additionally, Pan American Silver Corp.'s focus on operational efficiencies, cost reductions, and strategic investments in exploration and development have contributed to the growth.

Silver - Huaron

Expected Growth: 7%

Silver - Huaron from Pan American Silver Corp. growth driven by increasing silver prices, rising demand from industrial applications, and growing adoption in renewable energy technologies. Additionally, Pan American Silver Corp.'s focus on operational efficiency, cost reduction, and exploration efforts contribute to the 7% growth.

Silver - La Colorada

Expected Growth: 7%

Silver - La Colorada's 7% growth is driven by increasing silver prices, rising production volumes, and improved ore grades. Additionally, Pan American Silver Corp.'s cost reduction initiatives, exploration success, and strategic investments in mine development contribute to the segment's growth.

Silver - San Vicente

Expected Growth: 7%

Silver - San Vicente from Pan American Silver Corp. growth driven by increasing silver prices, rising production volumes, and declining cash costs. Strong demand from industrial and jewelry sectors, coupled with supply constraints, supports price growth. Operational efficiencies and exploration success at San Vicente also contribute to the 7% growth.

Silver - Manantial Espejo

Expected Growth: 7%

Silver - Manantial Espejo from Pan American Silver Corp. growth driven by increasing silver prices, strong demand from industrial and jewelry sectors, and rising production levels at the mine, supported by efficient operations and cost management. Additionally, exploration and development of new projects contribute to the 7% growth.

Other - Yamana Corp

Expected Growth: 7%

Yamana Corp's 7% growth is driven by increased gold production at its Canadian Malartic mine, higher gold prices, and cost savings from its Chapada mine. Additionally, the company's focus on exploration and development of its Cerro Moro and Minera Florida projects contributes to its growth. The acquisition from Pan American Silver Corp also brings new assets and opportunities, further supporting Yamana's growth momentum.

7. Detailed Products

Silver

Pan American Silver Corp. is one of the largest primary silver producers in the world, with a focus on sustainable and responsible mining practices.

Gold

The company also produces gold as a by-product of its silver mining operations, with a focus on high-grade ore deposits.

Zinc

Pan American Silver Corp. also produces zinc as a by-product of its silver mining operations, with a focus on high-grade ore deposits.

Lead

The company also produces lead as a by-product of its silver mining operations, with a focus on high-grade ore deposits.

Copper

Pan American Silver Corp. produces copper as a by-product of its silver mining operations, with a focus on high-grade ore deposits.

8. Pan American Silver Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Pan American Silver Corp. is medium due to the availability of alternative metals and materials that can be used in place of silver.

Bargaining Power Of Customers

The bargaining power of customers for Pan American Silver Corp. is low due to the company's strong market position and the lack of concentration among its customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Pan American Silver Corp. is medium due to the presence of several major suppliers of silver ore and the company's dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants for Pan American Silver Corp. is low due to the high barriers to entry in the silver mining industry, including the need for significant capital investment and expertise.

Intensity Of Rivalry

The intensity of rivalry for Pan American Silver Corp. is high due to the presence of several major competitors in the silver mining industry, leading to a highly competitive market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 14.41%
Debt Cost 3.95%
Equity Weight 85.59%
Equity Cost 10.71%
WACC 9.73%
Leverage 16.84%

11. Quality Control: Pan American Silver Corp. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NewMarket

A-Score: 6.7/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 3.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Cabot

A-Score: 5.5/10

Value: 7.1

Growth: 6.4

Quality: 6.0

Yield: 5.0

Momentum: 1.0

Volatility: 7.7

1-Year Total Return ->

Stock-Card
Pan American Silver

A-Score: 5.5/10

Value: 3.7

Growth: 4.3

Quality: 7.1

Yield: 3.0

Momentum: 10.0

Volatility: 4.7

1-Year Total Return ->

Stock-Card
Reliance Steel & Aluminum

A-Score: 5.3/10

Value: 4.6

Growth: 6.1

Quality: 5.6

Yield: 3.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Steel Dynamics

A-Score: 4.9/10

Value: 3.4

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 6.0

Volatility: 6.0

1-Year Total Return ->

Stock-Card
CMC

A-Score: 4.4/10

Value: 3.9

Growth: 3.8

Quality: 4.5

Yield: 2.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

61.36$

Current Price

61.36$

Potential

-0.00%

Expected Cash-Flows