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PAAS vs. HL: Which Silver Mining Stock is the Better Buy Now?
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Key Takeaways
Pan American Silver eyes growth with a $2.1B MAG Silver deal, boosting reserves and production.
Hecla Mining delivered record revenues of $304M in Q2, with earnings up 300% on higher metal prices.
HL stock has surged 54.7% in three months, outperforming PAAS, supported by its low-cost operations.
Pan American Silver (PAAS - Free Report) and Hecla Mining (HL - Free Report) are well-known names in the mining sector that are engaged in the exploration, development and production of silver (as well as other metals like gold, lead and zinc).
Silver prices have gained 35% so far this year and are currently at $38.80 per ounce, near their highest levels since 2011, supported by bets on U.S. Federal Reserve policy easing. Gold prices have gained 28.5% year to date, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver demand is expected to remain strong from the industrial sector, the solar energy industry and electrical and electronic applications. Per the Silver Institute, the silver market is likely headed for another deficit in 2025 (for the fifth consecutive year), which bodes well for prices. The outlook for gold prices looks strong, backed by geopolitical tensions, central bank buying, as well as expanding industrial use in energy, healthcare and technology, which should continue to underpin prices.
For investors seeking to capitalize on this momentum, the key question is: Which stock stands out, Pan American Silver or Hecla Mining? 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. It has 12 operating mines.
As of June 30, 2024, Pan American’s proven and probable mineral reserves were estimated at 468 million ounces of silver and 6.9 million ounces of gold. This already strong resource base is poised to expand by 58 million ounces once the company closes its pending acquisition of MAG Silver Corp. (MAG - Free Report) in a $2.1 billion transaction (expected in the ongoing quarter).
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, in addition to increasing its production profile, will also lower Pan American Silver’s costs and boost its cash flow. The MAG Silver acquisition adds to PAAS’ solid track record of acquisitions, including Yamana Gold in 2023 and Tahoe Resources in 2019, which significantly added to its scale and improved profitability.
PAAS witnessed an 18% year-over-year increase in revenues to $812 million in the second quarter as higher gold and silver prices offset lower quantities of metal sold. Adjusted earnings per share were 43 cents, marking a solid 291% jump from the year-ago quarter.
The company reported record cash flow from operations of $293.4 million in the quarter, ending with record cash and short-term investments of $1.109 billion. Total available liquidity was $1.859 billion. Pan American Silver announced a 20% dividend hike to 12 cents per share.
Silver Segment All-in Sustaining Costs (AISC) per silver ounce were $19.69 in the second quarter of 2025, higher than $18.12 in the year-ago quarter. For 2025, PAAS expects the silver segment’s AISC to be at $16.25 – $18.25 per ounce, suggesting an improvement from the AISC of $18.98 per ounce in 2024. The acquisition of Juanicipio could lower it further.
PAAS produced 5.1 million ounces of silver and 178.7 thousand ounces of gold in the second 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 fourth quarter of the year.
The company has been strategically investing in its producing mines while advancing organic opportunities. The Jacobina mine in Brazil has been one of the most valuable assets in its portfolio. PAAS is currently conducting a comprehensive study to evaluate opportunities to optimize the long-term economics of the mine, including potential changes to the mining method and productivity improvements, such as automating ore handling systems and streamlining the process flowsheet. These improvements could lead to expanded production capacity and reduced unit operating costs. The company is also prioritizing the development of the La Colorada Skarn. Preliminary economic assessment indicates production averaging 17.2 million ounces of silver, 427 kt of zinc and 218 kt of lead annually during the first 10 years.
Pan American Silver owns the Escobal mine in Guatemala, which is regarded as one of the world’s top silver assets. Prior to its suspension in 2017, the mine delivered three consecutive years of annual output of around 20 million ounces, with AISC below $10 per ounce. Operations were halted following a ruling by Guatemala’s constitutional court, which mandated that the Ministry of Energy and Mines complete an ILO 169 consultation with the Xinka indigenous people before reinstating the mining license. Escobal remains on care and maintenance, with no clear timeline for the consultation’s conclusion or a potential restart of operations.
The Case for Hecla Mining
Hecla Mining produces more than 45% of all silver in the United States and has operating mines in Alaska (Greens Creek), Idaho (Lucky Friday), Quebec, Canada (Casa Berardi) and Yukon Territory, Canada (Keno Hill). The company also owns exploration properties in world-class silver and gold mining districts throughout North America.
Hecla Mining’s proven and probable silver reserves were at 240 million ounces as of 2024-end. This was the second-highest level in its 134-year history. The company had proven and probable gold reserves of 2.2 million ounces.
The company reported record revenues of $304 million in the second quarter, 24% higher than the year-ago quarter, aided by increased silver and gold prices. Earnings surged 300% year over year to eight cents per share.
Hecla Mining produced 4.52 million ounces of silver and 45,895 ounces of gold in the second quarter. The company projects silver equivalent ounces to be in the band of 35.5 - 39.0 million for 2025. Silver production is projected at 15.5-17 million ounces and gold output at 126,000 -137,000 ounces.
Cash generated from operations was a record $161.8M and free cash flow also hit a record $103.8M in the quarter. HL ended the quarter with cash of around $298 million.
AISC per ounce of silver was $5.19 in the second quarter of 2025. Notably, Hecla Mining trades at ~$1.60 per silver equivalent ounce, the lowest among peers and also lower than PAAS.
The company expects AISC (after by-product credits) per produced silver/gold ounce in 2025 at $11.00-$13.00.
HL continues to strengthen the balance sheet with a focus on the highest risk-adjusted return projects and free cash flow generation. It is evaluating strategic alternatives for Casa Berardi. The company continues to invest in organic production growth and exploration at Keno Hill, as well as in exploration at Lucky Friday and Greens Creek and Nevada projects.
How do Estimates Compare for PAAS & HL?
The Zacks Consensus Estimate for Pan American Silver’s 2025 earnings is $1.98 per share, indicating year-over-year growth of 150.6%. Earnings estimates of $2.38 for 2026 indicate a rise of 20.2%. The EPS estimates for 2025 have moved up 17.9% and for 2026 have moved up 23.3% over the past 60 days.
The Zacks Consensus Estimate for Hecla Mining’s earnings for 2025 is 27 cents per share, indicating a 145.5% year-over-year improvement. The 2026 estimate of 33 cents implies 21% growth. The estimates for 2025 for HL have been stronger, with the estimate for 2025 moving up 50% and the estimate for 2026 being revised 57.14% upward.
In the past three months, PAAS stock has gained 35.2% while HL stock has appreciated 54.7%.
Image Source: Zacks Investment Research
PAAS is currently trading at a forward 12-month price-to-sales (P/S) multiple of 3.38X, a discount to the industry’s average of 4.28X. HL stock is trading higher at a forward 12-month price-to-sales multiple of 4.48X.
Image Source: Zacks Investment Research
PAAS or HL: Which is the Better Pick?
Pan American Silver and Hecla Mining are both well-positioned to capitalize on the rally in silver and gold, supported by rising production and ongoing expansion initiatives. The pending MAG Silver acquisition enhances Pan American’s long-term growth outlook, though uncertainty around the Escobal mine restart remains a notable overhang.
Hecla Mining, meanwhile, has outperformed in share price gains and continues to benefit from its low-cost operations, robust output and consistent earnings momentum. While Hecla Mining trades at a premium valuation, its strong fundamentals justify the multiple, making it the more compelling pick at present. Hecla Mining currently carries a Zacks Rank #2 (Buy), while Pan American remains a Zacks Rank #3 (Hold).
Image: Shutterstock
PAAS vs. HL: Which Silver Mining Stock is the Better Buy Now?
Key Takeaways
Pan American Silver (PAAS - Free Report) and Hecla Mining (HL - Free Report) are well-known names in the mining sector that are engaged in the exploration, development and production of silver (as well as other metals like gold, lead and zinc).
Silver prices have gained 35% so far this year and are currently at $38.80 per ounce, near their highest levels since 2011, supported by bets on U.S. Federal Reserve policy easing. Gold prices have gained 28.5% year to date, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver demand is expected to remain strong from the industrial sector, the solar energy industry and electrical and electronic applications. Per the Silver Institute, the silver market is likely headed for another deficit in 2025 (for the fifth consecutive year), which bodes well for prices. The outlook for gold prices looks strong, backed by geopolitical tensions, central bank buying, as well as expanding industrial use in energy, healthcare and technology, which should continue to underpin prices.
For investors seeking to capitalize on this momentum, the key question is: Which stock stands out, Pan American Silver or Hecla Mining? 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. It has 12 operating mines.
As of June 30, 2024, Pan American’s proven and probable mineral reserves were estimated at 468 million ounces of silver and 6.9 million ounces of gold. This already strong resource base is poised to expand by 58 million ounces once the company closes its pending acquisition of MAG Silver Corp. (MAG - Free Report) in a $2.1 billion transaction (expected in the ongoing quarter).
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, in addition to increasing its production profile, will also lower Pan American Silver’s costs and boost its cash flow. The MAG Silver acquisition adds to PAAS’ solid track record of acquisitions, including Yamana Gold in 2023 and Tahoe Resources in 2019, which significantly added to its scale and improved profitability.
PAAS witnessed an 18% year-over-year increase in revenues to $812 million in the second quarter as higher gold and silver prices offset lower quantities of metal sold. Adjusted earnings per share were 43 cents, marking a solid 291% jump from the year-ago quarter.
The company reported record cash flow from operations of $293.4 million in the quarter, ending with record cash and short-term investments of $1.109 billion. Total available liquidity was $1.859 billion. Pan American Silver announced a 20% dividend hike to 12 cents per share.
Silver Segment All-in Sustaining Costs (AISC) per silver ounce were $19.69 in the second quarter of 2025, higher than $18.12 in the year-ago quarter. For 2025, PAAS expects the silver segment’s AISC to be at $16.25 – $18.25 per ounce, suggesting an improvement from the AISC of $18.98 per ounce in 2024. The acquisition of Juanicipio could lower it further.
PAAS produced 5.1 million ounces of silver and 178.7 thousand ounces of gold in the second 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 fourth quarter of the year.
The company has been strategically investing in its producing mines while advancing organic opportunities. The Jacobina mine in Brazil has been one of the most valuable assets in its portfolio. PAAS is currently conducting a comprehensive study to evaluate opportunities to optimize the long-term economics of the mine, including potential changes to the mining method and productivity improvements, such as automating ore handling systems and streamlining the process flowsheet. These improvements could lead to expanded production capacity and reduced unit operating costs. The company is also prioritizing the development of the La Colorada Skarn. Preliminary economic assessment indicates production averaging 17.2 million ounces of silver, 427 kt of zinc and 218 kt of lead annually during the first 10 years.
Pan American Silver owns the Escobal mine in Guatemala, which is regarded as one of the world’s top silver assets. Prior to its suspension in 2017, the mine delivered three consecutive years of annual output of around 20 million ounces, with AISC below $10 per ounce. Operations were halted following a ruling by Guatemala’s constitutional court, which mandated that the Ministry of Energy and Mines complete an ILO 169 consultation with the Xinka indigenous people before reinstating the mining license. Escobal remains on care and maintenance, with no clear timeline for the consultation’s conclusion or a potential restart of operations.
The Case for Hecla Mining
Hecla Mining produces more than 45% of all silver in the United States and has operating mines in Alaska (Greens Creek), Idaho (Lucky Friday), Quebec, Canada (Casa Berardi) and Yukon Territory, Canada (Keno Hill). The company also owns exploration properties in world-class silver and gold mining districts throughout North America.
Hecla Mining’s proven and probable silver reserves were at 240 million ounces as of 2024-end. This was the second-highest level in its 134-year history. The company had proven and probable gold reserves of 2.2 million ounces.
The company reported record revenues of $304 million in the second quarter, 24% higher than the year-ago quarter, aided by increased silver and gold prices. Earnings surged 300% year over year to eight cents per share.
Hecla Mining produced 4.52 million ounces of silver and 45,895 ounces of gold in the second quarter. The company projects silver equivalent ounces to be in the band of 35.5 - 39.0 million for 2025. Silver production is projected at 15.5-17 million ounces and gold output at 126,000 -137,000 ounces.
Cash generated from operations was a record $161.8M and free cash flow also hit a record $103.8M in the quarter. HL ended the quarter with cash of around $298 million.
AISC per ounce of silver was $5.19 in the second quarter of 2025. Notably, Hecla Mining trades at ~$1.60 per silver equivalent ounce, the lowest among peers and also lower than PAAS.
The company expects AISC (after by-product credits) per produced silver/gold ounce in 2025 at $11.00-$13.00.
HL continues to strengthen the balance sheet with a focus on the highest risk-adjusted return projects and free cash flow generation. It is evaluating strategic alternatives for Casa Berardi. The company continues to invest in organic production growth and exploration at Keno Hill, as well as in exploration at Lucky Friday and Greens Creek and Nevada projects.
How do Estimates Compare for PAAS & HL?
The Zacks Consensus Estimate for Pan American Silver’s 2025 earnings is $1.98 per share, indicating year-over-year growth of 150.6%. Earnings estimates of $2.38 for 2026 indicate a rise of 20.2%. The EPS estimates for 2025 have moved up 17.9% and for 2026 have moved up 23.3% over the past 60 days.
The Zacks Consensus Estimate for Hecla Mining’s earnings for 2025 is 27 cents per share, indicating a 145.5% year-over-year improvement. The 2026 estimate of 33 cents implies 21% growth. The estimates for 2025 for HL have been stronger, with the estimate for 2025 moving up 50% and the estimate for 2026 being revised 57.14% upward.
Image Source: Zacks Investment Research
PAAS & HL: Price Performance & Valuation Comparisons
In the past three months, PAAS stock has gained 35.2% while HL stock has appreciated 54.7%.
Image Source: Zacks Investment Research
PAAS is currently trading at a forward 12-month price-to-sales (P/S) multiple of 3.38X, a discount to the industry’s average of 4.28X. HL stock is trading higher at a forward 12-month price-to-sales multiple of 4.48X.
Image Source: Zacks Investment Research
PAAS or HL: Which is the Better Pick?
Pan American Silver and Hecla Mining are both well-positioned to capitalize on the rally in silver and gold, supported by rising production and ongoing expansion initiatives. The pending MAG Silver acquisition enhances Pan American’s long-term growth outlook, though uncertainty around the Escobal mine restart remains a notable overhang.
Hecla Mining, meanwhile, has outperformed in share price gains and continues to benefit from its low-cost operations, robust output and consistent earnings momentum. While Hecla Mining trades at a premium valuation, its strong fundamentals justify the multiple, making it the more compelling pick at present. Hecla Mining currently carries a Zacks Rank #2 (Buy), while Pan American remains a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.