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.
Can Pan American Silver's Timmins Operations Drive Growth?
Read MoreHide Full Article
Key Takeaways
Pan American Silver plans phased development of Timmins resources to drive production growth.
Timmins targets 105,500-115,000 ounces of gold in 2026, with AISC of $2,575-$2,675 per ounce.
PAAS is investing $146M in the Timmins Camp Project to advance infrastructure and mine growth.
Pan American Silver Corp. (PAAS - Free Report) estimates 2026 project capital of $40-$43 million for its Timmins operation in Ontario.
The company’s current Timmins operations consist of the Timmins West and Bell Creek underground gold mines. These mines supply ore to the Bell Creek processing plant, which has a design capacity of 5,600 tons per day and a current throughput of 4,400 tons per day. By advancing the Timmins Camp Project, Pan American Silver intends to boost infrastructure utilization to drive sustained production from the Timmins operations.
PAAS expects Timmins to produce 105.5-115 thousand ounces of gold for 2026 at an estimated AISC of $2,575-$2,675 per ounce. Timmins produced 103.6 thousand ounces of gold in 2025 at an AISC of $2,443 per ounce. The company plans to drill 118,000 meters at Timmins in 2026.
In June 2026, Pan American Silver identified mineral resources at the Bell Creek mine and satellite deposits as a result of a comprehensive exploration program at its Timmins operation. PAAS is currently proceeding with a conceptual plan for a phased development of these new mineral resources. This initiative aims to boost production growth and extension of mine life at Timmins. With significant processing capacity and infrastructure already in place, these projects position Timmins for growth. Pan American Silver has commenced the first phase of the Timmins Camp Project following the board approval and a total investment of $146 million.
Growth Drivers for Pan American Silver’s Peers
Hecla Mining Company’s (HL - Free Report) growth profile remains anchored by Greens Creek's low-cost position and by-product credits. In second-quarter 2026, Greens Creek produced 2.1 million ounces of silver at cash costs of negative $17.11 per ounce and AISC of negative $10.71 per ounce, both after by-product credits.
For fiscal 2026, Hecla Mining guides Greens Creek cash costs to negative $12.50-$12 per ounce and all-in sustaining cost (AISC) of negative $4.25-$3.75, both representing an improvement from the prior outlook. In the second-quarter of 2026, Hecla Mining’s silver production rose 8% sequentially to 4.2 million ounces, including 2.1 million ounces at Greens Creek.
Buenaventura Mining (BVN - Free Report) is gaining from strong performance at its Uchucchacua mine. Buenaventura Mining produced 7,520,650 ounces of silver in the first half of 2026, up 2% year over year. Buenaventura Mining’s Uchucchacua mine produced 1,122,003 ounces of silver during the time frame. The mine gained from higher-than-anticipated ore grades.
PAAS’s Price Performance, Valuation & Estimates
In a year, PAAS shares have gained 13.7% compared with the industry's 15.3% growth. In comparison, the Basic Materials sector has risen 12.5%, whereas the S&P 500 has moved up 15.4%.
Image Source: Zacks Investment Research
PAAS is currently trading at a forward 12-month price-to-earnings multiple of 9.52X compared with the industry average of 13.04X.
Image Source: Zacks Investment Research
The consensus mark for 2026 earnings is pegged at $3.81 per share, indicating a year-over-year jump of 50%. The estimate for 2027 of $5.00 suggests an increase of 31%.
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 and 2027 has moved down over the past 60 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Pan American Silver's Timmins Operations Drive Growth?
Key Takeaways
Pan American Silver Corp. (PAAS - Free Report) estimates 2026 project capital of $40-$43 million for its Timmins operation in Ontario.
The company’s current Timmins operations consist of the Timmins West and Bell Creek underground gold mines. These mines supply ore to the Bell Creek processing plant, which has a design capacity of 5,600 tons per day and a current throughput of 4,400 tons per day. By advancing the Timmins Camp Project, Pan American Silver intends to boost infrastructure utilization to drive sustained production from the Timmins operations.
PAAS expects Timmins to produce 105.5-115 thousand ounces of gold for 2026 at an estimated AISC of $2,575-$2,675 per ounce. Timmins produced 103.6 thousand ounces of gold in 2025 at an AISC of $2,443 per ounce. The company plans to drill 118,000 meters at Timmins in 2026.
In June 2026, Pan American Silver identified mineral resources at the Bell Creek mine and satellite deposits as a result of a comprehensive exploration program at its Timmins operation. PAAS is currently proceeding with a conceptual plan for a phased development of these new mineral resources. This initiative aims to boost production growth and extension of mine life at Timmins. With significant processing capacity and infrastructure already in place, these projects position Timmins for growth. Pan American Silver has commenced the first phase of the Timmins Camp Project following the board approval and a total investment of $146 million.
Growth Drivers for Pan American Silver’s Peers
Hecla Mining Company’s (HL - Free Report) growth profile remains anchored by Greens Creek's low-cost position and by-product credits. In second-quarter 2026, Greens Creek produced 2.1 million ounces of silver at cash costs of negative $17.11 per ounce and AISC of negative $10.71 per ounce, both after by-product credits.
For fiscal 2026, Hecla Mining guides Greens Creek cash costs to negative $12.50-$12 per ounce and all-in sustaining cost (AISC) of negative $4.25-$3.75, both representing an improvement from the prior outlook. In the second-quarter of 2026, Hecla Mining’s silver production rose 8% sequentially to 4.2 million ounces, including 2.1 million ounces at Greens Creek.
Buenaventura Mining (BVN - Free Report) is gaining from strong performance at its Uchucchacua mine. Buenaventura Mining produced 7,520,650 ounces of silver in the first half of 2026, up 2% year over year. Buenaventura Mining’s Uchucchacua mine produced 1,122,003 ounces of silver during the time frame. The mine gained from higher-than-anticipated ore grades.
PAAS’s Price Performance, Valuation & Estimates
In a year, PAAS shares have gained 13.7% compared with the industry's 15.3% growth. In comparison, the Basic Materials sector has risen 12.5%, whereas the S&P 500 has moved up 15.4%.
PAAS is currently trading at a forward 12-month price-to-earnings multiple of 9.52X compared with the industry average of 13.04X.
The consensus mark for 2026 earnings is pegged at $3.81 per share, indicating a year-over-year jump of 50%. The estimate for 2027 of $5.00 suggests an increase of 31%.
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 and 2027 has moved down over the past 60 days.
PAAS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.