We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pan American Silver (PAAS) Q3 Earnings & Revenues Lag Estimates
Read MoreHide Full Article
Pan American Silver Corp. (PAAS - Free Report) reported adjusted earnings per share of one cent for third-quarter 2023, missing the Zacks Consensus Estimate of earnings of seven cents. PAAS had reported an adjusted loss per share of one cent in the year-ago quarter.
Including one-time items, Pan American Silver reported a loss of six cents per share in the quarter compared with the year-ago quarter’s loss of 34 cents.
Pan American Silver’s revenues surged 82% year over year to $616 million in the quarter under review, reflecting higher prices. However, the top line missed the Zacks Consensus Estimate of $642 million.
Pan American Silver Corp. Price, Consensus and EPS Surprise
The average realized silver price in the quarter increased 23% year over year to $23.11 per ounce. The average realized gold price was up 13% year over year to $1,927 per ounce.
Operational Update
Silver production in the quarter was 5.7 million ounces, up 25% year over year. Gold production was 244.2 thousand ounces in the reported quarter, reflecting a year-over-year surge of 89.6%.
The Silver segment’s cash costs were $13.13 per ounce in the third quarter, down 10% from the year-ago period. The segment’s all-in-sustaining costs (AISC) rose 6% year over year to $18.19 per ounce in the quarter.
The Gold segment’s cash costs were $1,187 per ounce, up 0.3% from the year-ago quarter. The segment’s AISC costs amounted to $1,451 per ounce in the July-September period, representing a year-over-year decline of 10%. Pan American Silver reported mine-operating earnings of $62 million in the quarter. This marked an improvement from the loss of $22 million reported in the third quarter of 2022.
Financial Position
At the end of third-quarter 2023, Pan American Silver had cash and investments of $386 million and $750 million related to two senior notes Pan American assumed through the acquisition of Yamana Gold Inc. as well as construction and other loans and leases.
Net cash generated from operations was $115 million in the third quarter.
Guidance
Pan American Silver affirms its production guidance for silver to range between 21 million and 23 million ounces for 2023. Gold production range remains at 870,000-970,000 ounces. Based on operating results so far this year, PAAS expects silver and gold production in 2023 to be near the low end of its stated ranges.
The Silver segment’s AISC is estimated between $14.00 per ounce and $16.00 per ounce for the ongoing year. The Gold segment’s AISC is forecast between $1,275 per ounce and $1,425 per ounce.
Other Updates
On Nov 6, 2023, Pan American completed the previously announced divestment of its 57.74% interest in Agua de la Falda S.A. It is a Chilean company that holds the historical Jeronimo project, located in the Atacama region of northern Chile, as well as several adjoining concessions. In September, the company announced that it sold its 56.25% interest in the MARA project in Argentina and its 92.3% interest in the Morococha mine in Peru.
This move to sell non-core assets will help the company in its ongoing endeavor to optimize its portfolio. PAAS expects annual cash savings of $90 million, mainly due to the elimination of care and maintenance, project development and reclamation costs associated with MARA and Morococha as well as lower interest expenses.
PAAS expects an additional $40 million to $60 million in annual savings through synergies associated with integrating the Yamana assets. The integration is on track and the company is evaluating optimization and exploration plans for the newly acquired mines.
Price Performance
Shares of Pan American Silver have lost 1.4% in the past year compared with the industry’s 5.9% decline.
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 14.3%. The Zacks Consensus Estimate for CRS’ fiscal 2024 earnings is pegged at $3.57 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days. Its shares have gained 69% in a year’s time.
The consensus estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied around 38% in a year.
In the past 60 days, the Zacks Consensus Estimate for WestRock’s current fiscal year has been revised upward by 5.2%. WRK beat the consensus estimate in three of the last four quarters while missing in one quarter, the average earnings surprise being 30.7%. The company’s shares have gained 6% in the past year.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Pan American Silver (PAAS) Q3 Earnings & Revenues Lag Estimates
Pan American Silver Corp. (PAAS - Free Report) reported adjusted earnings per share of one cent for third-quarter 2023, missing the Zacks Consensus Estimate of earnings of seven cents. PAAS had reported an adjusted loss per share of one cent in the year-ago quarter.
Including one-time items, Pan American Silver reported a loss of six cents per share in the quarter compared with the year-ago quarter’s loss of 34 cents.
Pan American Silver’s revenues surged 82% year over year to $616 million in the quarter under review, reflecting higher prices. However, the top line missed the Zacks Consensus Estimate of $642 million.
Pan American Silver Corp. Price, Consensus and EPS Surprise
Pan American Silver Corp. price-consensus-eps-surprise-chart | Pan American Silver Corp. Quote
The average realized silver price in the quarter increased 23% year over year to $23.11 per ounce. The average realized gold price was up 13% year over year to $1,927 per ounce.
Operational Update
Silver production in the quarter was 5.7 million ounces, up 25% year over year. Gold production was 244.2 thousand ounces in the reported quarter, reflecting a year-over-year surge of 89.6%.
The Silver segment’s cash costs were $13.13 per ounce in the third quarter, down 10% from the year-ago period. The segment’s all-in-sustaining costs (AISC) rose 6% year over year to $18.19 per ounce in the quarter.
The Gold segment’s cash costs were $1,187 per ounce, up 0.3% from the year-ago quarter. The segment’s AISC costs amounted to $1,451 per ounce in the July-September period, representing a year-over-year decline of 10%.
Pan American Silver reported mine-operating earnings of $62 million in the quarter. This marked an improvement from the loss of $22 million reported in the third quarter of 2022.
Financial Position
At the end of third-quarter 2023, Pan American Silver had cash and investments of $386 million and $750 million related to two senior notes Pan American assumed through the acquisition of Yamana Gold Inc. as well as construction and other loans and leases.
Net cash generated from operations was $115 million in the third quarter.
Guidance
Pan American Silver affirms its production guidance for silver to range between 21 million and 23 million ounces for 2023. Gold production range remains at 870,000-970,000 ounces. Based on operating results so far this year, PAAS expects silver and gold production in 2023 to be near the low end of its stated ranges.
The Silver segment’s AISC is estimated between $14.00 per ounce and $16.00 per ounce for the ongoing year. The Gold segment’s AISC is forecast between $1,275 per ounce and $1,425 per ounce.
Other Updates
On Nov 6, 2023, Pan American completed the previously announced divestment of its 57.74% interest in Agua de la Falda S.A. It is a Chilean company that holds the historical Jeronimo project, located in the Atacama region of northern Chile, as well as several adjoining concessions. In September, the company announced that it sold its 56.25% interest in the MARA project in Argentina and its 92.3% interest in the Morococha mine in Peru.
This move to sell non-core assets will help the company in its ongoing endeavor to optimize its portfolio. PAAS expects annual cash savings of $90 million, mainly due to the elimination of care and maintenance, project development and reclamation costs associated with MARA and Morococha as well as lower interest expenses.
PAAS expects an additional $40 million to $60 million in annual savings through synergies associated with integrating the Yamana assets. The integration is on track and the company is evaluating optimization and exploration plans for the newly acquired mines.
Price Performance
Shares of Pan American Silver have lost 1.4% in the past year compared with the industry’s 5.9% decline.
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) , The Andersons Inc. (ANDE - Free Report) and WestRock Company (WRK - Free Report) . CRS currently sports a Zacks Rank #1 (Strong Buy), and ANDE and WRK carry 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 14.3%. The Zacks Consensus Estimate for CRS’ fiscal 2024 earnings is pegged at $3.57 per share. The consensus estimate for 2024 earnings has moved 3% north in the past 60 days. Its shares have gained 69% in a year’s time.
The consensus estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied around 38% in a year.
In the past 60 days, the Zacks Consensus Estimate for WestRock’s current fiscal year has been revised upward by 5.2%. WRK beat the consensus estimate in three of the last four quarters while missing in one quarter, the average earnings surprise being 30.7%. The company’s shares have gained 6% in the past year.