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Can Pan American Silver Sustain Its Solid Silver AISC in H2?
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Key Takeaways
PAAS delivered silver AISC of $12.64 in H1'26, below the year-ago period and guidance.
Juanicipio posted negative $4.50 AISC, while higher contractor, labor and energy costs are expected in 2026.
Higher costs at La Colorada and Huaron may lift 2026 silver AISC to $15.75-$18.25 per ounce.
Pan American Silver Corp. (PAAS - Free Report) delivered silver segment All-in Sustaining Costs (AISC) of $12.64 in the first half of 2026, 24% lower than the year-ago period and below the company’s guidance of $14.87-$17.25. The company also delivered notable declines in costs for its silver segment in 2025.
The year-over-year improvement was primarily driven by the acquisition of the Juanicipio mine, which has been delivering strong performance since the acquisition in September 2025. PAAS reported Juanicipio’s AISC of negative $4.50 per ounce in the first half of 2026, lower than the company’s expectation.
The Juanicipio mine’s AISC, however, is expected between $2.25 and $4.25 per ounce in 2026, reflecting higher production costs per ounce from higher contractor, labor and energy costs in 2026.
The company will gain from lower AISC at Cerro Moro mine, which posted a negative $64.87 per ounce in the first half of 2026. The Cerro Moro mine’s AISC is expected between negative $25.75 to negative $21.75 per ounce in 2026, lower than the negative $14.04 per ounce reported in 2025.. Lower sustaining exploration and tailings investments, and reduced production costs also aid negative AISC.
Nonetheless, La Colorada’s silver segment AISC for 2026 is expected between $33.25 and $35.75 per ounce, which is higher than the $24.85 record in 2025. Higher operating costs, driven by increased labor costs, will also drive the Huaron mine’s AISC. The mine expects the silver segment's AISC to be $27.75-$29.75 per ounce, suggesting a rise from the $21.55 per ounce reported in 2025.
Backed by these, PAAS expects silver segment AISC for 2026 to be $15.75-$18.25 per ounce, indicating a 22% year-over-year increase at the midpoint.
PAAS Peers’ AISC Performance
Avino Silver & Gold Mines Ltd. (ASM - Free Report) delivered AISC of $36.52 per silver-equivalent ounce in the first half of 2026, which surged 78% year over year. The increase in Avino Silver’s AISC is due to processing development material from the La Preciosa mine.
Hecla Mining Company (HL - Free Report) reported silver AISC of $7.10 per ounce in the first quarter of 2026. Hecla Mining’s AISC in the year-ago period was $8.35. The company expects silver segment AISC for 2026 to be $12.50-$13.50.
PAAS’s Price Performance, Valuation & Estimates
In a year, PAAS shares have jumped 30.8% compared with the industry's 42.8% growth. In comparison, the Basic Materials sector has risen 19.7%, whereas the S&P 500 has moved up 16.3%.
Image Source: Zacks Investment Research
PAAS is currently trading at a forward 12-month price-to-earnings multiple of 10.46X compared with the industry average of 14.26X.
Image Source: Zacks Investment Research
Avino Silver and Hecla Mining are trading higher at 22.13X and 23.22X, respectively.
The consensus mark for PAAS’ 2026 earnings is pegged at $3.81 per share, indicating a year-over-year jump of 50%. The earnings estimate of $5.00 for 2027 suggests an increase of 31%.
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 has moved down 6.6% over the past 60 days and the same for 2027 has risen 1.2%.
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Can Pan American Silver Sustain Its Solid Silver AISC in H2?
Key Takeaways
Pan American Silver Corp. (PAAS - Free Report) delivered silver segment All-in Sustaining Costs (AISC) of $12.64 in the first half of 2026, 24% lower than the year-ago period and below the company’s guidance of $14.87-$17.25. The company also delivered notable declines in costs for its silver segment in 2025.
The year-over-year improvement was primarily driven by the acquisition of the Juanicipio mine, which has been delivering strong performance since the acquisition in September 2025. PAAS reported Juanicipio’s AISC of negative $4.50 per ounce in the first half of 2026, lower than the company’s expectation.
The Juanicipio mine’s AISC, however, is expected between $2.25 and $4.25 per ounce in 2026, reflecting higher production costs per ounce from higher contractor, labor and energy costs in 2026.
The company will gain from lower AISC at Cerro Moro mine, which posted a negative $64.87 per ounce in the first half of 2026. The Cerro Moro mine’s AISC is expected between negative $25.75 to negative $21.75 per ounce in 2026, lower than the negative $14.04 per ounce reported in 2025.. Lower sustaining exploration and tailings investments, and reduced production costs also aid negative AISC.
Nonetheless, La Colorada’s silver segment AISC for 2026 is expected between $33.25 and $35.75 per ounce, which is higher than the $24.85 record in 2025. Higher operating costs, driven by increased labor costs, will also drive the Huaron mine’s AISC. The mine expects the silver segment's AISC to be $27.75-$29.75 per ounce, suggesting a rise from the $21.55 per ounce reported in 2025.
Backed by these, PAAS expects silver segment AISC for 2026 to be $15.75-$18.25 per ounce, indicating a 22% year-over-year increase at the midpoint.
PAAS Peers’ AISC Performance
Avino Silver & Gold Mines Ltd. (ASM - Free Report) delivered AISC of $36.52 per silver-equivalent ounce in the first half of 2026, which surged 78% year over year. The increase in Avino Silver’s AISC is due to processing development material from the La Preciosa mine.
Hecla Mining Company (HL - Free Report) reported silver AISC of $7.10 per ounce in the first quarter of 2026. Hecla Mining’s AISC in the year-ago period was $8.35. The company expects silver segment AISC for 2026 to be $12.50-$13.50.
PAAS’s Price Performance, Valuation & Estimates
In a year, PAAS shares have jumped 30.8% compared with the industry's 42.8% growth. In comparison, the Basic Materials sector has risen 19.7%, whereas the S&P 500 has moved up 16.3%.
PAAS is currently trading at a forward 12-month price-to-earnings multiple of 10.46X compared with the industry average of 14.26X.
Avino Silver and Hecla Mining are trading higher at 22.13X and 23.22X, respectively.
The consensus mark for PAAS’ 2026 earnings is pegged at $3.81 per share, indicating a year-over-year jump of 50%. The earnings estimate of $5.00 for 2027 suggests an increase of 31%.
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 has moved down 6.6% over the past 60 days and the same for 2027 has risen 1.2%.
PAAS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.