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PAAS Trades at a Discount to Industry: Right Time to Buy the Stock?
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Key Takeaways
PAAS trades at a lower forward earnings multiple than the industry average and key silver mining peers.
PAAS beat the 2025 silver production guidance and expects higher output in 2026 on strong mine results.
Pan American Silver's MAG Silver acquisition expands reserves, adds projects and supports long-term growth.
Pan American Silver Corp. (PAAS - Free Report) stock is currently trading at a forward 12-month earnings multiple of 15.72X, which is a discount to the Zacks Mining - Silver industry’s average of 19.55X.
Image Source: Zacks Investment Research
The stock also remains attractively priced compared with peers such as Avino Silver & Gold Mines Ltd. (ASM - Free Report) and First Majestic Silver Corp. (AG - Free Report) , which are trading higher at 25.07X and 82.51X, respectively.
Let us dig deeper to understand if the current valuation makes PAAS a smart buy.
Pan American Silver’s stock has appreciated 114.7% in a year compared with the industry’s upsurge of 188.6%. Meanwhile, the Basic Materials sector has risen 45.1% and the S&P 500 has returned 17.3%.
Image Source: Zacks Investment Research
Factors Driving PAAS Stock
Solid 2025 Production Results: The company produced 22.8 million ounces of silver in 2025, surpassing the company’s expectations. The figure increased 8% from 2024. Pan American Silver produced a record 7.3 million ounces of silver in the fourth quarter of 2025, reflecting better-than-expected results at the Juanicipio mine.
The company’s gold production came in at 742.2 thousand ounces for 2025, in line with its guidance. It produced 197.8 thousand ounces in the fourth quarter of 2025.
Avino Silver announced that its silver-equivalent production was 671,583 ounces in the fourth quarter of 2025, which marked a 9% increase from the fourth quarter of 2024. Annual silver-equivalent production came in at 2.6 million ounces in 2025, down 2% year over year. However, the figure came within Avino Silver’s guidance of 2.5-2.8 million ounces.
First Majestic announced that its total production reached 7.8 million silver-equivalent (AgEq) ounces in the fourth quarter of 2025. The figure includes a record 4.2 million silver ounces and 41,417 gold ounces. It also includes 14.2 million pounds of zinc, 8.1 million pounds of lead and 235,886 pounds of copper. First Majestic’s AgEq ounces produced marked a solid 37% year-over-year increase, attributed to a 77% surge in silver production.
Strong Liquidity Position: Pan American Silver’s unaudited cash and short-term investments at the end of 2025 were $1.32 billion, excluding an additional $127 million of cash attributable to the 44% investment in Juanicipio. PAAS had available liquidity of $2.07 billion as of Dec. 31, 2025.
Upbeat Silver Production Outlook Supported by Metal Price: Silver prices have increased a whopping 132.2% year over year on 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 above $73 per ounce. Along with PAAS, this upside in prices of silver is aiding its peers, Avino Silver and First Majestic.
Backed by upbeat mine performances, the company expects its silver production to be 25-27 million for 2026, indicating a 14% year-over-year increase at the mid-point. However, gold production is guided between 700 thousand and 750 thousand ounces, indicating a dip of 2%.
Addition of MAG Silver Boosts Pan American Silver’s Growth
In September 2025, PAAS completed the acquisition of MAG Silver. This move boosts Pan American Silver’s position as one of the leading silver producers globally and significantly strengthens the company’s industry-leading silver reserve base.
PAAS gained a 44% stake in the Juanicipio project, which is a large-scale, high-grade silver mine in Zacatecas operated by Fresnillo plc. The mine produced 2.5 million ounces of silver since it was acquired.
The transaction also adds the full ownership of the Larder exploration project and a full earn-in interest in the Deer Trail exploration project to PAAS’s portfolio. The addition of these assets will contribute significantly to Pan American Silver’s production, reserves and cash flow.
PAAS Positioned for Long-Term Growth
Pan American Silver has solidified its position as a leading precious metal producer in the Americas with a diversified asset base. The company has been rationalizing its portfolio following the Yamana acquisition (in 2023), investing in its producing mines while advancing organic opportunities.
In December 2025, the company reported strong drilling results for its operating mines, which will help advance its long-term exploration strategy to replace and grow its mineral resources. The company has also been successfully extending the lifespan of many of its operations, driven by ongoing exploration efforts across its portfolio.
At the La Colorada Skarn mine, Pan American Silver has recently discovered several high-grade silver zones and increased mineral resources. This has created an opportunity to integrate the existing vein mine with the Skarn project.
Pan American Silver remains focused on progressing initiatives to further increase shareholder value.
Pan American Silver Estimates Indicate Y/Y Rise
The Zacks Consensus Estimate for PAAS’s earnings for 2025 has moved up 1.8%, while the same for 2026 has moved down 5.8% over the past 60 days.
Image Source: Zacks Investment Research
The consensus mark for 2025 earnings is pegged at $2.21 per share, indicating a year-over-year upsurge of 179%. The estimate for 2026 of $3.40 suggests an increase of 53.5%.
Final Take on PAAS Stock
Pan American Silver is well-positioned to capitalize on the ongoing rally in silver prices and the recent MAG Silver buyout. Continued investments in growth initiatives strengthen its long-term prospects. While its appealing valuation makes the stock attractive, recent downward estimate revisions and lower gold outlook suggest caution for new investors.
Existing shareholders should stay invested in the PAAS stock to benefit from its solid long-term growth prospects. The company currently has a Zacks Rank #3 (Hold), which supports our thesis.
Image: Shutterstock
PAAS Trades at a Discount to Industry: Right Time to Buy the Stock?
Key Takeaways
Pan American Silver Corp. (PAAS - Free Report) stock is currently trading at a forward 12-month earnings multiple of 15.72X, which is a discount to the Zacks Mining - Silver industry’s average of 19.55X.
The stock also remains attractively priced compared with peers such as Avino Silver & Gold Mines Ltd. (ASM - Free Report) and First Majestic Silver Corp. (AG - Free Report) , which are trading higher at 25.07X and 82.51X, respectively.
Let us dig deeper to understand if the current valuation makes PAAS a smart buy.
Pan American Silver’s stock has appreciated 114.7% in a year compared with the industry’s upsurge of 188.6%. Meanwhile, the Basic Materials sector has risen 45.1% and the S&P 500 has returned 17.3%.
Factors Driving PAAS Stock
Solid 2025 Production Results: The company produced 22.8 million ounces of silver in 2025, surpassing the company’s expectations. The figure increased 8% from 2024. Pan American Silver produced a record 7.3 million ounces of silver in the fourth quarter of 2025, reflecting better-than-expected results at the Juanicipio mine.
The company’s gold production came in at 742.2 thousand ounces for 2025, in line with its guidance. It produced 197.8 thousand ounces in the fourth quarter of 2025.
Avino Silver announced that its silver-equivalent production was 671,583 ounces in the fourth quarter of 2025, which marked a 9% increase from the fourth quarter of 2024. Annual silver-equivalent production came in at 2.6 million ounces in 2025, down 2% year over year. However, the figure came within Avino Silver’s guidance of 2.5-2.8 million ounces.
First Majestic announced that its total production reached 7.8 million silver-equivalent (AgEq) ounces in the fourth quarter of 2025. The figure includes a record 4.2 million silver ounces and 41,417 gold ounces. It also includes 14.2 million pounds of zinc, 8.1 million pounds of lead and 235,886 pounds of copper. First Majestic’s AgEq ounces produced marked a solid 37% year-over-year increase, attributed to a 77% surge in silver production.
Strong Liquidity Position: Pan American Silver’s unaudited cash and short-term investments at the end of 2025 were $1.32 billion, excluding an additional $127 million of cash attributable to the 44% investment in Juanicipio. PAAS had available liquidity of $2.07 billion as of Dec. 31, 2025.
Upbeat Silver Production Outlook Supported by Metal Price: Silver prices have increased a whopping 132.2% year over year on 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 above $73 per ounce. Along with PAAS, this upside in prices of silver is aiding its peers, Avino Silver and First Majestic.
Backed by upbeat mine performances, the company expects its silver production to be 25-27 million for 2026, indicating a 14% year-over-year increase at the mid-point. However, gold production is guided between 700 thousand and 750 thousand ounces, indicating a dip of 2%.
Addition of MAG Silver Boosts Pan American Silver’s Growth
In September 2025, PAAS completed the acquisition of MAG Silver. This move boosts Pan American Silver’s position as one of the leading silver producers globally and significantly strengthens the company’s industry-leading silver reserve base.
PAAS gained a 44% stake in the Juanicipio project, which is a large-scale, high-grade silver mine in Zacatecas operated by Fresnillo plc. The mine produced 2.5 million ounces of silver since it was acquired.
The transaction also adds the full ownership of the Larder exploration project and a full earn-in interest in the Deer Trail exploration project to PAAS’s portfolio. The addition of these assets will contribute significantly to Pan American Silver’s production, reserves and cash flow.
PAAS Positioned for Long-Term Growth
Pan American Silver has solidified its position as a leading precious metal producer in the Americas with a diversified asset base. The company has been rationalizing its portfolio following the Yamana acquisition (in 2023), investing in its producing mines while advancing organic opportunities.
In December 2025, the company reported strong drilling results for its operating mines, which will help advance its long-term exploration strategy to replace and grow its mineral resources. The company has also been successfully extending the lifespan of many of its operations, driven by ongoing exploration efforts across its portfolio.
At the La Colorada Skarn mine, Pan American Silver has recently discovered several high-grade silver zones and increased mineral resources. This has created an opportunity to integrate the existing vein mine with the Skarn project.
Pan American Silver remains focused on progressing initiatives to further increase shareholder value.
Pan American Silver Estimates Indicate Y/Y Rise
The Zacks Consensus Estimate for PAAS’s earnings for 2025 has moved up 1.8%, while the same for 2026 has moved down 5.8% over the past 60 days.
The consensus mark for 2025 earnings is pegged at $2.21 per share, indicating a year-over-year upsurge of 179%. The estimate for 2026 of $3.40 suggests an increase of 53.5%.
Final Take on PAAS Stock
Pan American Silver is well-positioned to capitalize on the ongoing rally in silver prices and the recent MAG Silver buyout. Continued investments in growth initiatives strengthen its long-term prospects. While its appealing valuation makes the stock attractive, recent downward estimate revisions and lower gold outlook suggest caution for new investors.
Existing shareholders should stay invested in the PAAS stock to benefit from its solid long-term growth prospects. The company currently has a Zacks Rank #3 (Hold), which supports our thesis.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.