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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.

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1.b. Last Insights on PAAS

Pan American Silver's recent performance was driven by strong Q4 earnings, beating estimates with a 23.64% earnings surprise and 6.00% revenue surprise. The company's record revenue, earnings, and cash flow were fueled by higher silver and gold production. A major acquisition, rising output, and a valuation that still trails peers have contributed to the positive momentum. Additionally, the company raised its production guidance and increased its quarterly dividend, signaling a focus on shareholder returns. Analyst optimism builds ahead of future growth.

1.c. Company Highlights

2. Pan American Silver Shines with Record Financial Results

Pan American Silver reported impressive financial results for Q4 and full-year 2025, with net earnings of $452 million in Q4 and $980 million for the full year. Adjusted earnings were $470 million in Q4 and $959 million for the full year, with EPS coming in at $1.49, beating estimates of $1.11. The company's attributable free cash flow was a record $553 million in Q4 and $1.2 billion for the full year, driven by strong production, cost control, and high metal prices. Average metal prices in Q4 were $58 for silver and $4,100 for gold.

Publication Date: Feb -22

📋 Highlights
  • Record Net Earnings:: Q4 net earnings reached $452 million and $980 million for 2025, driven by high silver/gold prices ($58/silver, $4,100/gold) and cost control.
  • Free Cash Flow Surge:: Generated $553 million in Q4 and $1.2 billion for 2025, with cash reserves rising to $1.3 billion (up $408 million).
  • Strong Production Growth:: Silver output hit 22.8M oz in 2025 (exceeding guidance), with Juanicipio contributing low-cost production and 14% growth expected in 2026.
  • Cost Efficiency:: Silver all-in sustaining costs averaged $13.88/oz (full year), while gold costs were $1,621/oz, below 2026 guidance ranges.

Operational Highlights

The company's silver production was 22.8 million ounces in 2025, exceeding guidance, while gold production was 742,200 ounces, within guidance. The acquisition of Juanicipio has been performing well, with strong silver production and low costs. Silver segment all-in sustaining costs were $9.51 per ounce in Q4 and $13.88 per ounce for the full year, while gold segment all-in sustaining costs were $1,699 per ounce in Q4 and $1,621 per ounce for the full year.

Guidance and Outlook

Pan American Silver provided 2026 guidance, expecting attributable silver production of 25-27 million ounces and gold production of 700,000-750,000 ounces. The company is evaluating a phased approach to development at La Colorada Skarn, with an updated technical report expected in Q2 2026. CEO Michael Steinmann expressed optimism about the company's prospects, citing strong metal prices and the potential for high returns on capital, as the company has increased its exploration budget for 2026.

Valuation and Cash Management

With a P/E Ratio of 27.72 and an EV/EBITDA of 13.71, the market is pricing in a certain level of growth. The company's cash and short-term investments increased by $408 million to $1.3 billion at year-end, and it has $278 million in senior notes maturing in 2027 at a 4.6% coupon. The company is considering early repayment, but notes that the bonds aren't very liquid. The Dividend Yield is 0.71%, while the Free Cash Flow Yield is 4.52%, indicating a decent return for shareholders.

Growth Prospects

For 2026, silver production is expected to increase by 14%, driven by low-cost production at Juanicipio. The company will also release an updated PEA in La Colorada Skarn in Q2 and provide further information on Jacobina optimization. Analysts estimate next year's revenue growth at -0.5%, but with the company's strong track record and growth projects, there is potential for upside.

3. NewsRoom

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PAAS vs. EXK: Which Silver Mining Stock Is the Better Buy?

Feb -20

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Pan American Silver Corp (PAAS) Q4 2025 Earnings Call Highlights: Record Financial Performance ...

Feb -19

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Pan American Silver (PAAS) Earnings Transcript

Feb -19

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Pan American Silver Corp. Q4 2025 Earnings Call Summary

Feb -19

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Pan American Silver Earnings Beat Sparks Guidance Hike And Valuation Debate

Feb -19

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Pan American Silver (PAAS) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Feb -19

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Pan American Silver (PAAS) Q4 Earnings and Revenues Top Estimates

Feb -18

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Pan American Silver: Q4 Earnings Snapshot

Feb -18

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: 6.9/10

Value: 4.5

Growth: 7.2

Quality: 7.2

Yield: 4.0

Momentum: 9.5

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Cabot

A-Score: 5.4/10

Value: 6.9

Growth: 6.4

Quality: 5.7

Yield: 5.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

Stock-Card
Reliance Steel & Aluminum

A-Score: 5.3/10

Value: 4.7

Growth: 6.1

Quality: 5.6

Yield: 3.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

Stock-Card
Pan American Silver

A-Score: 5.2/10

Value: 2.7

Growth: 4.3

Quality: 7.2

Yield: 3.0

Momentum: 10.0

Volatility: 4.0

1-Year Total Return ->

Stock-Card
Steel Dynamics

A-Score: 5.2/10

Value: 3.5

Growth: 7.1

Quality: 5.1

Yield: 2.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
CMC

A-Score: 4.2/10

Value: 3.6

Growth: 3.8

Quality: 4.5

Yield: 2.0

Momentum: 5.0

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

90.15$

Current Price

90.15$

Potential

-0.00%

Expected Cash-Flows