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PAAS Vs AG: Which Silver Mining Stock Shines Brighter in 2025?
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Key Takeaways
PAAS Q1 revenues rose 28.6% to $773M, with EPS jumping to $0.42 from $0.01 on higher prices and lower costs.
AG's Q1 revenues surged 130% to $243.9M, driven by Cerro Los Gatos output and higher silver prices.
Earnings estimates for PAAS in 2025 rose to $1.47, while AG's 2025 and 2026 estimates have both declined.
Pan American Silver (PAAS - Free Report) and First Majestic Silver (AG - Free Report) are well-known names in the silver mining sector, sharing several key similarities that define their strategic positioning and investor appeal. Both are headquartered in Vancouver, Canada, and provide investors with exposure to silver and gold. Silver prices have gained 28% so far this year, with gold prices up 29%, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has benefited from resilient industrial demand and mounting supply deficits. Demand for solar energy, electronics and electrification now accounts for more than half of global silver demand. The silver market is likely headed to another deficit in 2025 (117.6 million ounces), for the fifth consecutive year, which bodes well for prices.
Backed by this rally, the Zacks Mining - Silver industry has jumped 34.9% year to date, outperforming the Zacks Basic Materials sector’s growth of 8.8%. In contrast, the S&P 500 has edged up just 1.2% over the same period.
For investors seeking to capitalize on this momentum, the key question is: Which silver stock stands out—Pan American Silver or First Majestic Silver? Let’s explore the fundamentals, growth drivers and potential headwinds facing both companies to find out.
The Case for Pan American Silver
Pan American is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. The company has 12 operating mines. It also owns the Escobal mine in Guatemala, which is currently not operating, and it holds interests in exploration and development projects.
As of June 30, 2024, Pan American’s mineral reserves were estimated at 468 million ounces of silver and 6.7 million ounces of gold. This already strong resource base is poised to expand by 58 million ounces following the company’s recent agreement to acquire MAG Silver Corp. (MAG - Free Report) in a $2.1 billion transaction.
MAG Silver owns a 44% stake in the Juanicipio project, known as the world’s largest-scale, highest-grade and lowest-cost primary silver mine. The acquisition will thus lower Pan American Silver’s costs and boost its cash flow. The MAG Silver acquisition adds to PAAS’ solid track record of acquisitions, Yamana Gold in 2023 and Tahoe Resources in 2019, which significantly added to its scale and improved profitability.
PAAS witnessed a 28.6% year-over-year increase in revenues to $773 million in the first quarter, attributed to higher gold and silver prices. Lower costs and higher metal prices resulted in a record $250.8 million in mine operating earnings and $112.6 million in free cash flow. Adjusted earnings per share were 42 cents, a significant improvement from earnings of one cent in the year-ago quarter.
Silver Segment All-in Sustaining Costs (AISC) per silver ounce were $13.94 in the first quarter of 2025, lower than $16.63 in the year-ago quarter. Gold Segment AISC was $1,485 per ounce compared with $1,499 per ounce in the first quarter of 2024.
Silver production stood at 5 million ounces and gold output was at 182.2 thousand ounces in the first quarter. The company remains on track to meet its 2025 guidance of 20-21 million ounces of silver and 735,000-800,000 ounces of gold, with output expected to rise in the second half of the year.
Silver production is anticipated to ramp up as mining moves to higher-grade ore zones at Cerro Moro. Gold output is also forecast to climb later in the year, supported by higher grades at Cerro Moro and Minera Florida, increased throughput at Minera Florida, and leach sequencing at Shahuindo, resulting in higher recovery rates.
As of March 31, 2025, the company had working capital of $1.16 billion, inclusive of cash and short-term investments of $923.0 million, and $750.0 million available under its revolving credit facility.
The company has a targeted capex of $360-$385 million in fiscal 2025. This is expected to advance strategic goals, continued exploration and in-fill drilling, and engineering work at La Colorada (Skarn), advancing the mine and plant optimization study at Jacobina as well as other works at La Colorada, Timmins and Huaron.
The Case for First Majestic Silver
First Majestic is focused on silver and gold production in Mexico and the United States. The company operates four producing underground mines in Mexico: the Cerro Los Gatos Silver Mine, the Santa Elena Silver/Gold Mine, the San Dimas Silver/Gold Mine, and the La Encantada Silver Mine, as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, USA.
First Majestic’s proven and probable mineral reserves are estimated to contain approximately 86.8 million ounces of silver and 594,000 ounces of gold as of Dec. 31, 2024.
In January 2025, First Majestic completed the acquisition of Gatos Silver, Inc., thereby gaining a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine and solidifying its position as an intermediate primary silver producer.
The mine added 1.4 million to First Majestic’s silver production in the first quarter. AG’s total production reached 7.7 million silver-equivalent (AgEq) ounces, which marked a solid 49% year-over-year increase, attributed to an 88% surge in silver production.
The company reported record revenues of $243.9 million in the first quarter, 130% higher than the year-ago quarter. This was driven by the addition of the Cerro Los Gatos Silver Mine and improved production at San Dimas, as well as higher silver prices. First Majestic achieved record quarterly mine operating earnings of $63.8 million, a significant increase compared with a mine operating loss of $0.3 million in the first quarter of 2024. However, the company reported a 69% year-over-year increase in total mine operating costs in the quarter.
Adjusted earnings per share were five cents, an improvement from the loss of six cents reported by First Majestic in the first quarter of 2024. Consolidated AISC in the first quarter was $19.24 per AgEq ounce, representing an 11% decline from $21.53 per AgEq ounce in the first quarter of 2024.
The company ended the quarter with the highest cash and restricted cash balance in its history of $462.6 million, consisting of $351.3 million in cash and cash equivalents and $111.3 million in restricted cash. Its liquidity position improved to a record $544.4 million, consisting of $404.8 million of working capital and $139.6 million of undrawn revolving credit facility, and excluding $111.3 million held in restricted cash.
In 2025, the company expects to achieve total attributable production from its four operating mines in Mexico of between 27.8 million and 31.2 million silver equivalent ounces, including 13.6-15.3 million ounces of silver. This is due to the contribution from Cerro Los Gatos Silver Mine as well as higher silver production from Santa Elena and La Encantada.
In 2025, First Majestic plans to invest approximately $182 million in capital expenditures. This represents a 34% increase compared with the revised 2024 capital expenditures guidance, driven largely by the addition of the attributable capital expenditures of the Cerro Los Gatos Silver Mine, and is aligned with the company’s future growth strategy underpinned by exploration and development activities at Santa Elena and San Dimas.
How Do Estimates Compare for PAAS & AG?
The Zacks Consensus Estimate for Pan American Silver’s 2025 earnings is $1.47 per share, indicating year-over-year growth of 86.1%. Earnings estimates of $1.89 for 2026 indicate a rise of 28.7%. The EPS estimate for 2025 have moved up while the same for 2026 has moved down over the past 60 days.
The Zacks Consensus Estimate for First Majestic’s earnings for 2025 is 12 cents per share, indicating an improvement from the loss of 14 cents in 2024. The 2026 estimate of 10 cents implies a decline of 18.8%. The estimates for both 2025 and 2026 have been trending south over the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Image Source: Zacks Investment Research
PAAS & AG: Price Performance, Valuation & Other Comparisons
In the past year, PAAS stock has surged 40%, outperforming the industry’s growth of 18.5%. Meanwhile, AG has gained 30.7%.
Image Source: Zacks Investment Research
PAAS is currently trading at a forward 12-month price-to-sales (P/S) multiple of 3.39X, a discount to the industry’s average of 4.06X. The AG stock is currently trading at a forward 12-month price-to-sales multiple of 4.48X, a premium to the industry.
Image Source: Zacks Investment Research
Pan American Silver has a dividend yield of 1.38%, way higher than First Majestic’s 0.22%.
Image Source: Zacks Investment Research
The average price target on Pan American Silver suggests a 9% increase from its yesterday’s closing price of $28.96. The highest target of $39 implies a gain of 35%. Meanwhile, the average price target on First Majestic implies a 2% decline from its last closing price of $8.35. The highest target of $11.50 indicates a rise of 38%.
Image Source: Zacks Investment Research
PAAS or AG: Which is the Better Pick?
Pan American Silver and First Majestic are poised to benefit from the current surge in silver and gold prices as well as their higher production expectations and their expansion efforts, both organic and through acquisitions.
Both PAAS and AG stocks currently have a Zacks Rank #3 (Hold) each, which makes choosing one a difficult task.
However, Pan American Silver has outperformed First Majestic year to date in terms of share price gains and dividend yield. PAAS also benefits from positive earnings estimate revisions for the current year and offers greater upside potential based on analyst price targets. With a more attractive valuation and VGM Score of A, Pan American Silver appears to be a more compelling investment choice than First Majestic, which has a VGM Score of C.
Image: Shutterstock
PAAS Vs AG: Which Silver Mining Stock Shines Brighter in 2025?
Key Takeaways
Pan American Silver (PAAS - Free Report) and First Majestic Silver (AG - Free Report) are well-known names in the silver mining sector, sharing several key similarities that define their strategic positioning and investor appeal. Both are headquartered in Vancouver, Canada, and provide investors with exposure to silver and gold.
Silver prices have gained 28% so far this year, with gold prices up 29%, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has benefited from resilient industrial demand and mounting supply deficits. Demand for solar energy, electronics and electrification now accounts for more than half of global silver demand. The silver market is likely headed to another deficit in 2025 (117.6 million ounces), for the fifth consecutive year, which bodes well for prices.
Backed by this rally, the Zacks Mining - Silver industry has jumped 34.9% year to date, outperforming the Zacks Basic Materials sector’s growth of 8.8%. In contrast, the S&P 500 has edged up just 1.2% over the same period.
For investors seeking to capitalize on this momentum, the key question is: Which silver stock stands out—Pan American Silver or First Majestic Silver? Let’s explore the fundamentals, growth drivers and potential headwinds facing both companies to find out.
The Case for Pan American Silver
Pan American is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. The company has 12 operating mines. It also owns the Escobal mine in Guatemala, which is currently not operating, and it holds interests in exploration and development projects.
As of June 30, 2024, Pan American’s mineral reserves were estimated at 468 million ounces of silver and 6.7 million ounces of gold. This already strong resource base is poised to expand by 58 million ounces following the company’s recent agreement to acquire MAG Silver Corp. (MAG - Free Report) in a $2.1 billion transaction.
MAG Silver owns a 44% stake in the Juanicipio project, known as the world’s largest-scale, highest-grade and lowest-cost primary silver mine. The acquisition will thus lower Pan American Silver’s costs and boost its cash flow. The MAG Silver acquisition adds to PAAS’ solid track record of acquisitions, Yamana Gold in 2023 and Tahoe Resources in 2019, which significantly added to its scale and improved profitability.
PAAS witnessed a 28.6% year-over-year increase in revenues to $773 million in the first quarter, attributed to higher gold and silver prices. Lower costs and higher metal prices resulted in a record $250.8 million in mine operating earnings and $112.6 million in free cash flow. Adjusted earnings per share were 42 cents, a significant improvement from earnings of one cent in the year-ago quarter.
Silver Segment All-in Sustaining Costs (AISC) per silver ounce were $13.94 in the first quarter of 2025, lower than $16.63 in the year-ago quarter. Gold Segment AISC was $1,485 per ounce compared with $1,499 per ounce in the first quarter of 2024.
Silver production stood at 5 million ounces and gold output was at 182.2 thousand ounces in the first quarter. The company remains on track to meet its 2025 guidance of 20-21 million ounces of silver and 735,000-800,000 ounces of gold, with output expected to rise in the second half of the year.
Silver production is anticipated to ramp up as mining moves to higher-grade ore zones at Cerro Moro. Gold output is also forecast to climb later in the year, supported by higher grades at Cerro Moro and Minera Florida, increased throughput at Minera Florida, and leach sequencing at Shahuindo, resulting in higher recovery rates.
As of March 31, 2025, the company had working capital of $1.16 billion, inclusive of cash and short-term investments of $923.0 million, and $750.0 million available under its revolving credit facility.
The company has a targeted capex of $360-$385 million in fiscal 2025. This is expected to advance strategic goals, continued exploration and in-fill drilling, and engineering work at La Colorada (Skarn), advancing the mine and plant optimization study at Jacobina as well as other works at La Colorada, Timmins and Huaron.
The Case for First Majestic Silver
First Majestic is focused on silver and gold production in Mexico and the United States. The company operates four producing underground mines in Mexico: the Cerro Los Gatos Silver Mine, the Santa Elena Silver/Gold Mine, the San Dimas Silver/Gold Mine, and the La Encantada Silver Mine, as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, USA.
First Majestic’s proven and probable mineral reserves are estimated to contain approximately 86.8 million ounces of silver and 594,000 ounces of gold as of Dec. 31, 2024.
In January 2025, First Majestic completed the acquisition of Gatos Silver, Inc., thereby gaining a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine and solidifying its position as an intermediate primary silver producer.
The mine added 1.4 million to First Majestic’s silver production in the first quarter. AG’s total production reached 7.7 million silver-equivalent (AgEq) ounces, which marked a solid 49% year-over-year increase, attributed to an 88% surge in silver production.
The company reported record revenues of $243.9 million in the first quarter, 130% higher than the year-ago quarter. This was driven by the addition of the Cerro Los Gatos Silver Mine and improved production at San Dimas, as well as higher silver prices. First Majestic achieved record quarterly mine operating earnings of $63.8 million, a significant increase compared with a mine operating loss of $0.3 million in the first quarter of 2024. However, the company reported a 69% year-over-year increase in total mine operating costs in the quarter.
Adjusted earnings per share were five cents, an improvement from the loss of six cents reported by First Majestic in the first quarter of 2024. Consolidated AISC in the first quarter was $19.24 per AgEq ounce, representing an 11% decline from $21.53 per AgEq ounce in the first quarter of 2024.
The company ended the quarter with the highest cash and restricted cash balance in its history of $462.6 million, consisting of $351.3 million in cash and cash equivalents and $111.3 million in restricted cash. Its liquidity position improved to a record $544.4 million, consisting of $404.8 million of working capital and $139.6 million of undrawn revolving credit facility, and excluding $111.3 million held in restricted cash.
In 2025, the company expects to achieve total attributable production from its four operating mines in Mexico of between 27.8 million and 31.2 million silver equivalent ounces, including 13.6-15.3 million ounces of silver. This is due to the contribution from Cerro Los Gatos Silver Mine as well as higher silver production from Santa Elena and La Encantada.
In 2025, First Majestic plans to invest approximately $182 million in capital expenditures. This represents a 34% increase compared with the revised 2024 capital expenditures guidance, driven largely by the addition of the attributable capital expenditures of the Cerro Los Gatos Silver Mine, and is aligned with the company’s future growth strategy underpinned by exploration and development activities at Santa Elena and San Dimas.
How Do Estimates Compare for PAAS & AG?
The Zacks Consensus Estimate for Pan American Silver’s 2025 earnings is $1.47 per share, indicating year-over-year growth of 86.1%. Earnings estimates of $1.89 for 2026 indicate a rise of 28.7%. The EPS estimate for 2025 have moved up while the same for 2026 has moved down over the past 60 days.
The Zacks Consensus Estimate for First Majestic’s earnings for 2025 is 12 cents per share, indicating an improvement from the loss of 14 cents in 2024. The 2026 estimate of 10 cents implies a decline of 18.8%. The estimates for both 2025 and 2026 have been trending south over the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Image Source: Zacks Investment Research
PAAS & AG: Price Performance, Valuation & Other Comparisons
In the past year, PAAS stock has surged 40%, outperforming the industry’s growth of 18.5%. Meanwhile, AG has gained 30.7%.
Image Source: Zacks Investment Research
PAAS is currently trading at a forward 12-month price-to-sales (P/S) multiple of 3.39X, a discount to the industry’s average of 4.06X. The AG stock is currently trading at a forward 12-month price-to-sales multiple of 4.48X, a premium to the industry.
Image Source: Zacks Investment Research
Pan American Silver has a dividend yield of 1.38%, way higher than First Majestic’s 0.22%.
Image Source: Zacks Investment Research
The average price target on Pan American Silver suggests a 9% increase from its yesterday’s closing price of $28.96. The highest target of $39 implies a gain of 35%. Meanwhile, the average price target on First Majestic implies a 2% decline from its last closing price of $8.35. The highest target of $11.50 indicates a rise of 38%.
Image Source: Zacks Investment Research
PAAS or AG: Which is the Better Pick?
Pan American Silver and First Majestic are poised to benefit from the current surge in silver and gold prices as well as their higher production expectations and their expansion efforts, both organic and through acquisitions.
Both PAAS and AG stocks currently have a Zacks Rank #3 (Hold) each, which makes choosing one a difficult task.
However, Pan American Silver has outperformed First Majestic year to date in terms of share price gains and dividend yield. PAAS also benefits from positive earnings estimate revisions for the current year and offers greater upside potential based on analyst price targets. With a more attractive valuation and VGM Score of A, Pan American Silver appears to be a more compelling investment choice than First Majestic, which has a VGM Score of C.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.