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PAAS vs. AG: Which Silver Mining Stock is the Better Buy?
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Key Takeaways
PAAS expands silver output and reserves through the MAG Silver acquisition and Juanicipio stake.
Stronger Q3 free cash flow lifts PAAS liquidity and supports a 17% dividend increase.
Silver price strength and higher 2025 production guidance drive momentum for both miners.
Pan American Silver Corp. (PAAS - Free Report) and First Majestic Silver Corp. (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 75.9% year over year, with gold prices up 56.9%, 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. Currently, silver is trading at a near record-high $53.70, driven by further expectations of a rate cut, which bodes well for prices.
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.
The MAG Silver acquisition has positioned PAAS as one of the leading silver producers globally and significantly strengthened the company’s industry-leading silver reserve base. As a part of the MAG Silver Corp. deal, Pan American Silver gained a 44% stake in the Juanicipio project, which is expected to produce 14.7-16.7 million ounces of silver in 2025. With just a month of contribution from its stake in the Juanicipio mine, Pan American Silver saw a strong impact on its silver segment performance and cash flow in the third quarter of 2025. The transaction also adds full ownership of the Larder exploration project and a full earn-in interest in the Deer Trail exploration project to PAAS’s portfolio.
PAAS’s third-quarter silver production reached 5.5 million ounces, flat compared with the output from the same period last year. Considering a month of strong performance from its stake in the Juanicipio mine, Pan American Silver has increased its silver production outlook for 2025 to 22-25 million ounces, up from the prior stated 20-21 million ounces. The company produced 21.1 million ounces of silver in 2024.
Gold production for the third quarter was 183.5 thousand ounces. It was lower than the 225 thousand ounces produced in the year-ago quarter. PAAS is maintaining its gold production for 2025 at 735-800 thousand ounces, indicating a decline from the 895.5 thousand ounces registered in 2024, reflecting the loss of contribution from the La Arena mine and Dolores.
Silver Segment All-in Sustaining Costs (AISC) per silver ounce were $15.43 in the third quarter of 2025, lower than $20.90 in the year-ago quarter. Gold Segment AISC was $1,4697 per ounce compared with $1,516 per ounce in the first quarter of 2024.
A free cash flow of record $252 million in the third quarter of 2025 pushed Pan American Silver’s cash and short-term investments balance to $910.8 million. This excludes the additional $86 million of cash generated from PAAS's 44% interest at Juanicipio post the MAG Silver acquisition. At the end of the third quarter of 2025, the company had working capital of $1.01 billion and $750 million available under its credit facility.
Backed by a strong cash flow generation, PAAS recently increased its quarterly dividend by 17% to 14 cents from the prior payment of 12 cents.
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.
In January 2025, First Majestic completed the acquisition of Gatos Silver, Inc., thereby gaining a 70% interest in the high-quality, long-life Cerro Los Gatos Silver underground mine and solidifying its position as an intermediate primary silver producer.
Los Gatos contributed 2.13 million AgEq ounces (on a 70% basis), which consisted of 1.41 million ounces of silver and 727 ounces of gold. It also contributed 13.89 million pounds of zinc and 7.65 million pounds of lead to First Majestic’s total production number. This pushed AG’s total production to 7.7 million silver-equivalent (AgEq) ounces in the third quarter of 2025, marking a solid 39% year-over-year increase.
AG produced a record 3.9 million silver ounces, up 96% year over year. Gold production was down 5% to 35,681 ounces in the third quarter. The company is on track to meet its consolidated production guidance of 30.6-32.6 million AgEq ounces for 2025.
First Majestic achieved a record quarterly free cash flow in the third quarter. The company’s cash flow increased 67.5% year over year to $98.8 million, with liquidity reaching $682 million. AG reported a record working capital of $542.4 million. It maintains an annual dividend of 0.02 cents.
How Do Estimates Compare for PAAS & AG?
The Zacks Consensus Estimate for Pan American Silver’s 2025 earnings is pinned at $2.15 per share, indicating year-over-year growth of 172%. Earnings estimates of $3.41 for 2026 indicate a rise of 58.5%. The estimates for both 2025 and 2026 have been trending north over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for First Majestic’s earnings for 2025 is pegged at 25 cents per share, indicating an improvement from the loss of 14 cents in 2024. The 2026 estimate of 33 cents implies a growth of 34%. The estimates for both 2025 and 2026 have been trending south over the past 60 days.
Image Source: Zacks Investment Research
PAAS & AG: Price Performance, Valuation & Other Comparisons
In the past year, PAAS stock has surged 99.2%, outperforming the industry’s growth of 116.9%. Meanwhile, AG has gained 120.6%.
Image Source: Zacks Investment Research
PAAS is currently trading at a forward 12-month price-to-sales (P/S) multiple of 4.38X, higher than its five-year median. SSRM is currently trading at a forward 12-month earnings multiple of 5.71X, higher than its five-year median.
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 higher production expectations and their expansion efforts, both organic and through acquisitions.
Image: Shutterstock
PAAS vs. AG: Which Silver Mining Stock is the Better Buy?
Key Takeaways
Pan American Silver Corp. (PAAS - Free Report) and First Majestic Silver Corp. (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 75.9% year over year, with gold prices up 56.9%, 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. Currently, silver is trading at a near record-high $53.70, driven by further expectations of a rate cut, which bodes well for prices.
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.
The MAG Silver acquisition has positioned PAAS as one of the leading silver producers globally and significantly strengthened the company’s industry-leading silver reserve base. As a part of the MAG Silver Corp. deal, Pan American Silver gained a 44% stake in the Juanicipio project, which is expected to produce 14.7-16.7 million ounces of silver in 2025. With just a month of contribution from its stake in the Juanicipio mine, Pan American Silver saw a strong impact on its silver segment performance and cash flow in the third quarter of 2025. The transaction also adds full ownership of the Larder exploration project and a full earn-in interest in the Deer Trail exploration project to PAAS’s portfolio.
PAAS’s third-quarter silver production reached 5.5 million ounces, flat compared with the output from the same period last year. Considering a month of strong performance from its stake in the Juanicipio mine, Pan American Silver has increased its silver production outlook for 2025 to 22-25 million ounces, up from the prior stated 20-21 million ounces. The company produced 21.1 million ounces of silver in 2024.
Gold production for the third quarter was 183.5 thousand ounces. It was lower than the 225 thousand ounces produced in the year-ago quarter. PAAS is maintaining its gold production for 2025 at 735-800 thousand ounces, indicating a decline from the 895.5 thousand ounces registered in 2024, reflecting the loss of contribution from the La Arena mine and Dolores.
Silver Segment All-in Sustaining Costs (AISC) per silver ounce were $15.43 in the third quarter of 2025, lower than $20.90 in the year-ago quarter. Gold Segment AISC was $1,4697 per ounce compared with $1,516 per ounce in the first quarter of 2024.
A free cash flow of record $252 million in the third quarter of 2025 pushed Pan American Silver’s cash and short-term investments balance to $910.8 million. This excludes the additional $86 million of cash generated from PAAS's 44% interest at Juanicipio post the MAG Silver acquisition. At the end of the third quarter of 2025, the company had working capital of $1.01 billion and $750 million available under its credit facility.
Backed by a strong cash flow generation, PAAS recently increased its quarterly dividend by 17% to 14 cents from the prior payment of 12 cents.
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.
In January 2025, First Majestic completed the acquisition of Gatos Silver, Inc., thereby gaining a 70% interest in the high-quality, long-life Cerro Los Gatos Silver underground mine and solidifying its position as an intermediate primary silver producer.
Los Gatos contributed 2.13 million AgEq ounces (on a 70% basis), which consisted of 1.41 million ounces of silver and 727 ounces of gold. It also contributed 13.89 million pounds of zinc and 7.65 million pounds of lead to First Majestic’s total production number. This pushed AG’s total production to 7.7 million silver-equivalent (AgEq) ounces in the third quarter of 2025, marking a solid 39% year-over-year increase.
AG produced a record 3.9 million silver ounces, up 96% year over year. Gold production was down 5% to 35,681 ounces in the third quarter. The company is on track to meet its consolidated production guidance of 30.6-32.6 million AgEq ounces for 2025.
First Majestic achieved a record quarterly free cash flow in the third quarter. The company’s cash flow increased 67.5% year over year to $98.8 million, with liquidity reaching $682 million. AG reported a record working capital of $542.4 million. It maintains an annual dividend of 0.02 cents.
How Do Estimates Compare for PAAS & AG?
The Zacks Consensus Estimate for Pan American Silver’s 2025 earnings is pinned at $2.15 per share, indicating year-over-year growth of 172%. Earnings estimates of $3.41 for 2026 indicate a rise of 58.5%. The estimates for both 2025 and 2026 have been trending north over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for First Majestic’s earnings for 2025 is pegged at 25 cents per share, indicating an improvement from the loss of 14 cents in 2024. The 2026 estimate of 33 cents implies a growth of 34%. The estimates for both 2025 and 2026 have been trending south over the past 60 days.
Image Source: Zacks Investment Research
PAAS & AG: Price Performance, Valuation & Other Comparisons
In the past year, PAAS stock has surged 99.2%, outperforming the industry’s growth of 116.9%. Meanwhile, AG has gained 120.6%.
Image Source: Zacks Investment Research
PAAS is currently trading at a forward 12-month price-to-sales (P/S) multiple of 4.38X, higher than its five-year median. SSRM is currently trading at a forward 12-month earnings multiple of 5.71X, higher than its five-year median.
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 higher production expectations and their expansion efforts, both organic and through acquisitions.
PAAS sports a Zacks Rank #1 (Strong Buy), while AG carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.