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Can Pan American Silver Maintain Its Solid Silver Production Rally?
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Key Takeaways
PAAS produced 22.8M ounces of silver in 2025, up 8% and above expectations, with record Q4 output.
Juanicipio and La Colorada mines are key drivers, with strong output expected through 2026.
PAAS targets 25to 27 million ounces in 2026, implying 14% growth at the midpoint with stronger H2 output.
Pan American Silver Corp. (PAAS - Free Report) has delivered solid performance in 2025, backed by strong production growth and silver prices. The company produced 22.8 million ounces of silver in 2025, surpassing the company’s expectations. The figure increased 8% from 2024.
This includes a record 7.3 million ounces of silver produced in the fourth quarter of 2025, driven by the better-than-expected results at the Juanicipio mine. In early September 2025, PAAS completed its previously stated acquisition of MAG Silver Corp. Pan American Silver gained a 44% stake in the Juanicipio project, which is a large-scale, high-grade silver mine in Zacatecas operated by Fresnillo plc. The company expects contribution from the Juanicipio mine to be 6.00-6.50 million ounces of silver for 2026, reflecting a full-year contribution from the mine.
Solid contributions from La Colorada will be another driver for PAAS in 2026. The company anticipates the mine to produce 5.80-6.25 million ounces of silver in 2026. It produced 6.02 million ounces in 2005.
For 2026, Pan American Silver expects silver production from its Cerro Moro mine to be 2.80-3 million ounces, indicating a 16% year-over-year increase at the mid-point. The upside will be driven by mine sequencing into higher silver grade ores at the underground zones.
For 2026, the company expects total silver production of 25-27 million ounces, with a stronger performance anticipated in the second half of the year. The figure indicates a year-over-year increase of 14% at the mid-point.
Performance of Pan American Silver’s Peers
First Majestic Silver Corp. (AG - Free Report) produced 31.1 million silver-equivalent ounces in 2025, meeting its upwardly revised production outlook. First Majestic produced 7.8 million silver-equivalent ounces in the fourth quarter of 2025, marking a year-over-year increase of 37%. First Majestic gained a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine with the acquisition of Gatos Silver in January 2025. This transaction strengthened its position as an intermediate primary silver producer.
Avino Silver & Gold Mines (ASM - Free Report) is benefiting from its strategy of advancing production, development and exploration projects in Mexico. It produced 2,606,155 silver-equivalent ounces, within Avino Silver’s guidance of 2.5-2.8 million silver-equivalent ounces. Avino Silver produced 345,298 silver-equivalent ounces in the fourth quarter of 2025, reflecting a significant increase on a year-over-year basis.
PAAS’ Price Performance, Valuation & Estimates
In a year, PAAS shares have skyrocketed 91.9% compared with the industry's 113.1% whopping growth. In comparison, the Basic Materials sector has risen 27.1%, whereas the S&P 500 has moved up 17%.
Image Source: Zacks Investment Research
PAAS is currently trading at a forward 12-month price-to-earnings multiple of 12.24X compared with the industry average of 14.12X.
Image Source: Zacks Investment Research
The consensus mark for 2026 earnings is pegged at $3.98 per share, indicating a year-over-year jump of 56.7%. The estimate for 2027 of $4.14 suggests an increase of 4.3%.
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 has moved up 17.5% over the past 60 days and the same for 2027 has risen 11.4%.
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Image: Shutterstock
Can Pan American Silver Maintain Its Solid Silver Production Rally?
Key Takeaways
Pan American Silver Corp. (PAAS - Free Report) has delivered solid performance in 2025, backed by strong production growth and silver prices. The company produced 22.8 million ounces of silver in 2025, surpassing the company’s expectations. The figure increased 8% from 2024.
This includes a record 7.3 million ounces of silver produced in the fourth quarter of 2025, driven by the better-than-expected results at the Juanicipio mine. In early September 2025, PAAS completed its previously stated acquisition of MAG Silver Corp. Pan American Silver gained a 44% stake in the Juanicipio project, which is a large-scale, high-grade silver mine in Zacatecas operated by Fresnillo plc. The company expects contribution from the Juanicipio mine to be 6.00-6.50 million ounces of silver for 2026, reflecting a full-year contribution from the mine.
Solid contributions from La Colorada will be another driver for PAAS in 2026. The company anticipates the mine to produce 5.80-6.25 million ounces of silver in 2026. It produced 6.02 million ounces in 2005.
For 2026, Pan American Silver expects silver production from its Cerro Moro mine to be 2.80-3 million ounces, indicating a 16% year-over-year increase at the mid-point. The upside will be driven by mine sequencing into higher silver grade ores at the underground zones.
For 2026, the company expects total silver production of 25-27 million ounces, with a stronger performance anticipated in the second half of the year. The figure indicates a year-over-year increase of 14% at the mid-point.
Performance of Pan American Silver’s Peers
First Majestic Silver Corp. (AG - Free Report) produced 31.1 million silver-equivalent ounces in 2025, meeting its upwardly revised production outlook. First Majestic produced 7.8 million silver-equivalent ounces in the fourth quarter of 2025, marking a year-over-year increase of 37%. First Majestic gained a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine with the acquisition of Gatos Silver in January 2025. This transaction strengthened its position as an intermediate primary silver producer.
Avino Silver & Gold Mines (ASM - Free Report) is benefiting from its strategy of advancing production, development and exploration projects in Mexico. It produced 2,606,155 silver-equivalent ounces, within Avino Silver’s guidance of 2.5-2.8 million silver-equivalent ounces. Avino Silver produced 345,298 silver-equivalent ounces in the fourth quarter of 2025, reflecting a significant increase on a year-over-year basis.
PAAS’ Price Performance, Valuation & Estimates
In a year, PAAS shares have skyrocketed 91.9% compared with the industry's 113.1% whopping growth. In comparison, the Basic Materials sector has risen 27.1%, whereas the S&P 500 has moved up 17%.
PAAS is currently trading at a forward 12-month price-to-earnings multiple of 12.24X compared with the industry average of 14.12X.
The consensus mark for 2026 earnings is pegged at $3.98 per share, indicating a year-over-year jump of 56.7%. The estimate for 2027 of $4.14 suggests an increase of 4.3%.
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 has moved up 17.5% over the past 60 days and the same for 2027 has risen 11.4%.
PAAS currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.