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Pan American Silver (PAAS) Q2 Earnings & Sales Miss Estimates
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Pan American Silver Corp. (PAAS - Free Report) reported adjusted earnings per share of 4 cents for second-quarter 2023, missing the Zacks Consensus Estimate of 8 cents. PAAS had reported an adjusted loss per share of 3 cents in the year-ago quarter.
Including one-time items, Pan American Silver reported a loss of 13 cents per share in the quarter compared with the year-ago quarter’s loss of 83 cents.
Pan American Silver’s revenues surged 87.9% year over year to $640 million in the quarter under review, reflecting the expanded operating base after the Yamana transaction. However, the top line missed the Zacks Consensus Estimate of $648 million. The average realized silver price in the quarter increased 2% year over year to $23.45 per ounce. The average realized gold price was up 6.8% year over year to $1,975 per ounce.
Operational Update
Silver production in the quarter was 6.02 million ounces, up 32.8% year over year. Gold production was a record 248.2 thousand ounces in the reported quarter, reflecting a year-over-year surge of 93.5%.
The Silver segment’s cash costs were $9.29 per ounce in the second quarter, down 23.2% from the year-ago period. The segment’s all-in sustaining costs (AISC) fell 9.2% year over year to $15.70 per ounce in the quarter.
The Gold segment’s cash costs were $1,045 per ounce, reflecting a 7.7% dip from the year-ago quarter. The segment’s AISC costs amounted to $1,342 per ounce in the April-June period, representing a year-over-year increase of 34.6%.
Pan American Silver reported mine-operating earnings of $70.6 million in the quarter. This marked an improvement from the loss of $31.6 million reported in the second quarter of 2022.
Pan American Silver Corp. Price, Consensus and EPS Surprise
At the end of second-quarter 2023, Pan American Silver had cash and short-term investment balances of $409 million and $470 million available in its revolving credit facility. Total debt amounted to $1,135 million, related to amounts drawn on the SL-Credit Facility, construction and other loans, leases, and the senior notes Pan American assumed through the Yamana transaction. Net cash generated from operations was $117 million in the second quarter compared with $20.8 million in the prior-year period.
Guidance
Pan American Silver reaffirms its current-year financial and production guidance. Silver production for the year is expected between 21 million and 23 million ounces. The Silver segment’s AISC is estimated between $14.00 per ounce and $16.00 for the ongoing year.
PAAS expects 2023 annual gold production between 870,000 ounces and 970,000 ounces. The Gold segment’s AISC is forecast between $1,275 per ounce and $1,425 per ounce.
Price Performance
Shares of Pan American Silver have lost 10.8% in the past year compared with the industry’s decline of 1.9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Pan American Silver currently carries a Zacks Rank #3 (Hold).
Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2024 earnings is pegged at $3.23 per share. The consensus estimate for 2023 earnings has moved 12% north in the past 60 days. Its shares gained 71% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actual. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 7.3%. PPG’s shares have gained 9.5% in the past year.
Bunge has an average trailing four-quarter earnings surprise of 20.4%. The Zacks Consensus Estimate for BG’s 2023 earnings is pegged at $12.13 per share. The consensus estimate for 2023 earnings has moved 4% north over the past 60 days. BG’s shares gained 17.1% in the last year.
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Pan American Silver (PAAS) Q2 Earnings & Sales Miss Estimates
Pan American Silver Corp. (PAAS - Free Report) reported adjusted earnings per share of 4 cents for second-quarter 2023, missing the Zacks Consensus Estimate of 8 cents. PAAS had reported an adjusted loss per share of 3 cents in the year-ago quarter.
Including one-time items, Pan American Silver reported a loss of 13 cents per share in the quarter compared with the year-ago quarter’s loss of 83 cents.
Pan American Silver’s revenues surged 87.9% year over year to $640 million in the quarter under review, reflecting the expanded operating base after the Yamana transaction. However, the top line missed the Zacks Consensus Estimate of $648 million. The average realized silver price in the quarter increased 2% year over year to $23.45 per ounce. The average realized gold price was up 6.8% year over year to $1,975 per ounce.
Operational Update
Silver production in the quarter was 6.02 million ounces, up 32.8% year over year. Gold production was a record 248.2 thousand ounces in the reported quarter, reflecting a year-over-year surge of 93.5%.
The Silver segment’s cash costs were $9.29 per ounce in the second quarter, down 23.2% from the year-ago period. The segment’s all-in sustaining costs (AISC) fell 9.2% year over year to $15.70 per ounce in the quarter.
The Gold segment’s cash costs were $1,045 per ounce, reflecting a 7.7% dip from the year-ago quarter. The segment’s AISC costs amounted to $1,342 per ounce in the April-June period, representing a year-over-year increase of 34.6%.
Pan American Silver reported mine-operating earnings of $70.6 million in the quarter. This marked an improvement from the loss of $31.6 million reported in the second quarter of 2022.
Pan American Silver Corp. Price, Consensus and EPS Surprise
Pan American Silver Corp. price-consensus-eps-surprise-chart | Pan American Silver Corp. Quote
Financial Position
At the end of second-quarter 2023, Pan American Silver had cash and short-term investment balances of $409 million and $470 million available in its revolving credit facility. Total debt amounted to $1,135 million, related to amounts drawn on the SL-Credit Facility, construction and other loans, leases, and the senior notes Pan American assumed through the Yamana transaction. Net cash generated from operations was $117 million in the second quarter compared with $20.8 million in the prior-year period.
Guidance
Pan American Silver reaffirms its current-year financial and production guidance. Silver production for the year is expected between 21 million and 23 million ounces. The Silver segment’s AISC is estimated between $14.00 per ounce and $16.00 for the ongoing year.
PAAS expects 2023 annual gold production between 870,000 ounces and 970,000 ounces. The Gold segment’s AISC is forecast between $1,275 per ounce and $1,425 per ounce.
Price Performance
Shares of Pan American Silver have lost 10.8% in the past year compared with the industry’s decline of 1.9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Pan American Silver currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , PPG Industries, Inc. (PPG - Free Report) and Bunge Limited (BG - Free Report) . CRS and PPG sport a Zacks Rank #1 (Strong Buy) at present, and BG has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carpenter Technology has an average trailing four-quarter earnings surprise of 10%. The Zacks Consensus Estimate for CRS’s fiscal 2024 earnings is pegged at $3.23 per share. The consensus estimate for 2023 earnings has moved 12% north in the past 60 days. Its shares gained 71% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actual. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 7.3%. PPG’s shares have gained 9.5% in the past year.
Bunge has an average trailing four-quarter earnings surprise of 20.4%. The Zacks Consensus Estimate for BG’s 2023 earnings is pegged at $12.13 per share. The consensus estimate for 2023 earnings has moved 4% north over the past 60 days. BG’s shares gained 17.1% in the last year.