We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
PAAS Outperforms Industry in 3 Months: Should You Buy the Stock Now?
Read MoreHide Full Article
Key Takeaways
PAAS stock rose 5.7% in 3 months, outperforming its industry but lagging the broader sector.
Pan American Silver posted record 2025 revenues, cash flow and silver output on higher prices.
PAAS growth was fueled by the MAG Silver acquisition, but projected lower gold output signals caution.
Pan American Silver Corp. (PAAS - Free Report) has gained 5.7% in three months compared with the industry’s growth of 5.6%. Meanwhile, the Basic Materials sector has risen 8.3%, but the S&P 500 has declined 5%.
Image Source: Zacks Investment Research
With the PAAS stock gaining, investors may rush to add it to their portfolio. However, before making a decision, it will be prudent to take a look at the reasons behind the surge, the company’s growth prospects and risks (if any) in investing.
PAAS Posts Record FY25 Cash Flow & Revenues
Pan American Silver reported record revenues of $3.62 billion in 2025, marking an improvement of 28.4% from 2024. This includes a record $1.18 billion in revenues in the fourth quarter of 2025. This impressive performance was driven by higher metal prices and silver production. However, this was partially offset by a decrease in quantities of metal sold due to the disposition of La Arena, and lower production at Dolores and Minera Florida.
The company produced 22.8 million ounces of silver in 2025, surpassing its 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 on better-than-expected results at the Juanicipio mine. For 2026, the company expects silver production of 25-27 million ounces, indicating a year-over-year increase of 14% at the mid-point.
Pan American Silver produced 742.2 thousand ounces of gold in 2025, in line with its guidance. It produced 197.8 thousand ounces in the fourth quarter of 2025. Gold production is expected between 700 million and 750 million, indicating a year-over-year dip of 2% at mid-point.
The company reported a record cash flow in 2025, indicating robust operational cash generation and disciplined capital spending. A free cash flow of $1.15 billion in 2025 pushed Pan American Silver’s cash and short-term investments balance to $1.3 billion.
Post the fourth-quarter results, the company hiked its quarterly dividend 29% to 18 cents from the prior payment of 14 cents, driven by a strong cash flow generation. In comparison, the company’s peer Hecla Mining Company (HL - Free Report) maintains an annual dividend of 2 cents and Endeavour Silver Corporation (EXK - Free Report) currently does not pay out any dividend.
Pan American Silver’s Solid Long-Term Growth
PAAS 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) and investing in its producing mines while advancing organic opportunities.
In September 2025, PAAS completed the acquisition of MAG Silver Corp. 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. 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.
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.
The company invested $94 million in project capital in 2025 to advance several major projects, among which the most notable is the La Colorada mine in Mexico. A recently updated Preliminary Economic Assessment for the La Colorada Skarn project indicates that the mine is poised to become one of the world's largest and lowest-cost silver mines. Following its development and ramp-up, the project is expected to produce an average of 19.1 million ounces of silver per year during its five highest-producing years.
Silver prices have increased a whopping 144% 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 at above $72 per ounce. Along with PAAS, these upsides in prices of gold and silver are aiding its peers, Hecla Mining and Endeavour Silver.
PAAS Sees Positive Estimate Revision Activity
The consensus mark for 2026 earnings is pegged at $4.54 per share, indicating a year-over-year jump of 78.7%. The estimate for 2027 of $5.14 suggests an increase of 13.2%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 has moved up 30.1% over the past 60 days. The same for 2027 has moved up 34.9%.
Image Source: Zacks Investment Research
Pan American Silver’s Valuation Is Attractive
PAAS is currently trading at a forward 12-month price-to-earnings multiple of 11.90X, at a discount to the industry average of 15.37X.
Image Source: Zacks Investment Research
In comparison, Endeavour Silver and Hecla Mining are trading higher at 15.43X and 31.43, respectively.
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, a lower gold production outlook suggests 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.
View the Zacks #1 Rank List
Image: Shutterstock
PAAS Outperforms Industry in 3 Months: Should You Buy the Stock Now?
Key Takeaways
Pan American Silver Corp. (PAAS - Free Report) has gained 5.7% in three months compared with the industry’s growth of 5.6%. Meanwhile, the Basic Materials sector has risen 8.3%, but the S&P 500 has declined 5%.
With the PAAS stock gaining, investors may rush to add it to their portfolio. However, before making a decision, it will be prudent to take a look at the reasons behind the surge, the company’s growth prospects and risks (if any) in investing.
PAAS Posts Record FY25 Cash Flow & Revenues
Pan American Silver reported record revenues of $3.62 billion in 2025, marking an improvement of 28.4% from 2024. This includes a record $1.18 billion in revenues in the fourth quarter of 2025. This impressive performance was driven by higher metal prices and silver production. However, this was partially offset by a decrease in quantities of metal sold due to the disposition of La Arena, and lower production at Dolores and Minera Florida.
The company produced 22.8 million ounces of silver in 2025, surpassing its 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 on better-than-expected results at the Juanicipio mine. For 2026, the company expects silver production of 25-27 million ounces, indicating a year-over-year increase of 14% at the mid-point.
Pan American Silver produced 742.2 thousand ounces of gold in 2025, in line with its guidance. It produced 197.8 thousand ounces in the fourth quarter of 2025. Gold production is expected between 700 million and 750 million, indicating a year-over-year dip of 2% at mid-point.
The company reported a record cash flow in 2025, indicating robust operational cash generation and disciplined capital spending. A free cash flow of $1.15 billion in 2025 pushed Pan American Silver’s cash and short-term investments balance to $1.3 billion.
Post the fourth-quarter results, the company hiked its quarterly dividend 29% to 18 cents from the prior payment of 14 cents, driven by a strong cash flow generation. In comparison, the company’s peer Hecla Mining Company (HL - Free Report) maintains an annual dividend of 2 cents and Endeavour Silver Corporation (EXK - Free Report) currently does not pay out any dividend.
Pan American Silver’s Solid Long-Term Growth
PAAS 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) and investing in its producing mines while advancing organic opportunities.
In September 2025, PAAS completed the acquisition of MAG Silver Corp. 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. 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.
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.
The company invested $94 million in project capital in 2025 to advance several major projects, among which the most notable is the La Colorada mine in Mexico. A recently updated Preliminary Economic Assessment for the La Colorada Skarn project indicates that the mine is poised to become one of the world's largest and lowest-cost silver mines. Following its development and ramp-up, the project is expected to produce an average of 19.1 million ounces of silver per year during its five highest-producing years.
Silver prices have increased a whopping 144% 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 at above $72 per ounce. Along with PAAS, these upsides in prices of gold and silver are aiding its peers, Hecla Mining and Endeavour Silver.
PAAS Sees Positive Estimate Revision Activity
The consensus mark for 2026 earnings is pegged at $4.54 per share, indicating a year-over-year jump of 78.7%. The estimate for 2027 of $5.14 suggests an increase of 13.2%.
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 has moved up 30.1% over the past 60 days. The same for 2027 has moved up 34.9%.
Pan American Silver’s Valuation Is Attractive
PAAS is currently trading at a forward 12-month price-to-earnings multiple of 11.90X, at a discount to the industry average of 15.37X.
In comparison, Endeavour Silver and Hecla Mining are trading higher at 15.43X and 31.43, respectively.
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, a lower gold production outlook suggests 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.