Pan American Silver Corp. was founded in 1994 and is headquartered in Vancouver, Canada. It is a leading producer of silver and gold in the Americas. The company operates mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina, making it one of the world's largest silver producers. Pan American Silver is involved in various mining activities, including exploration, mine development, extraction, processing, refining and reclamation.

The company also owns the Escobal mine in Guatemala (which is currently not operational) and is actively exploring new silver and gold deposits across the Americas. Its operations are divided into three segments: Silver, Gold, and Other. The Silver segment includes mines such as La Colorada, Cerro Moro, Escobal, Huaron, and San Vicente. The Gold segment comprises Dolores, Shahuindo, Timmins, Jacobina, El Penon, and Minera Florida. The Other segment includes Pas Corp, Yamana Corp and other entities. The company has around 9,000 employees.

Silver shines in Q2 25

Pan American Silver Co. released its Q2 25 results on August 6, 2025, posting a 18.4% y/y increase in revenue to $811.9m, primarily driven by higher silver and gold prices and increased production volumes. The silver price increase played a significant role, as silver prices tended to rise in the first half of 2025 compared to the same period in 2024.

In addition, silver production increased from 4.57 million ounces in Q2 24 to 5.09 million ounces in Q2 25. EBITDA rose 69.3% y/y to $364m, with margins expanding from 31.4% to 44.8%, underscoring significant operational efficiencies and leverage from higher metal prices. Net income rose from minus $22m to $189m, coupled with lower non-operating expenses and a favorable tax environment. Note that the stock has surged 52.7% since announcing its Q2 25 results.

Drill results boost silver resources

Pan American Silver announced new drill results at its La Colorada mine in Zacatecas, Mexico, revealing multiple high-grade veins that could expand silver resources, extend mine life, and improve economics. The exploration program, drilling 65,000 meters across 170 holes from November 2024 to June 2025, uncovered significant mineralization in the San Geronimo and Cristina zones, adding 52.7 million ounces to inferred silver resources.

The discovery of replacement-style mineralization at the contact between volcanic and sedimentary rocks marks a transformative milestone, enhancing mine economics and validating Pan American's exploration strategy. This strengthens Pan American's position as a leading silver producer with substantial resource expansion potential.

Strong cash balance

Pan American Silver posted a strong revenue CAGR of 20.0% over FY 21-24, reaching $2.8bn, which was primarily driven by the acquisition and integration of Yamana Gold’s assets and higher production volumes. EBITDA rose at a CAGR of 15.3% over the same period, reaching $908m, however its margin contracted from 35.6% to 32.2% over the same period due to rising costs per ounce in both the silver and gold segments. Net income increased at a CAGR of 4.6% to $112m.

Consistent growth in net earnings contributed to a solid rise in FCF, climbing from $189m to $697m, facilitated by a robust rise in cash inflow from operations, increasing from $392m to $724m and cash and cash equivalent increasing from $284m to $863m.

In comparison, Lundin Mining Corporation, a local peer, reported a lower revenue CAGR of 0.9% to $3.4bn over FY 21-24. However, EBITDA declined at a CAGR of minus 11.3% to $1.2bn, with margins contracted from 49.4% to 33.5%. Net income also declined at minus 36.1% CAGR to minus $204m.

Robust stock returns

Over the past year, the company's stock has delivered robust returns of approximately 94.8%. In comparison, Lundin Mining’s stock delivered lower returns of about half that (49.7%) over the same period.

Pan American Silver is currently trading at a P/E of 17.6x, based on the FY 25 estimated EPS of $2.4, which is higher than its 3-year historical average of 1.3x, but lower than that of Lundin Mining (P/E of 24.9x). The stock is currently trading at an EV/EBITDA multiple of 9.8x, based on FY 25 estimated EBITDA of $1.8bn, which is lower than its 3-year historical average of 9.5x but higher than that of Lundin Mining (8.2x).

Pan American Silver is monitored by nine analysts, with six having ‘Buy’ rating and three having ‘Hold’ ratings, with an average target price of $47.5, implying 12.7% upside potential at present.

These views are supported by an anticipated revenue CAGR of 15.7% over FY 24-27, reaching $4.4bn in FY 27. EBITDA is estimated to rise at a CAGR of 39.3% to $2.7bn, with margins expanding from 35.8% to 62.3% in FY 27. In addition, analysts estimate a net profit CAGR of 123.5% to $1.2bn, while EPS is expected to increase to $2.9 in FY 27, from $0.3 in FY 24. Analysts estimate EBITDA to rise at a CAGR of 1.3% and net income at a CAGR of 243% for Lundin Mining.

Overall, Pan American Silver demonstrates strong operational performance and promising growth prospects, bolstered by significant silver resource discoveries and efficient production. The company's robust financial health, strategic exploration initiatives and favorable market conditions position it well for future expansion. With positive ratings from analysts and substantial upside potential, Pan American Silver stands out as a leading silver producer with a solid foundation for continued success in the mining industry.

However, the company faces operational, regulatory, economic and market risks that impact its production, costs and shareholder value. Key challenges include mining uncertainties, regulatory approvals, inflation, commodity price volatility, capital project execution, and reserve estimation. These factors contribute to variability in its financial performance and potential disruptions in operations and development projects.