Company Performance - Pan American Silver (PAAS) closed at $28.92, reflecting a -2.59% change from the previous day, underperforming the S&P 500's gain of 0.32% [1] - Over the last month, PAAS shares increased by 1.16%, outperforming the Basic Materials sector's gain of 0.43% but lagging behind the S&P 500's gain of 4.51% [1] Upcoming Earnings - The company's earnings report is scheduled for August 6, 2025, with projected EPS of $0.35, indicating a 218.18% increase year-over-year [2] - Revenue is forecasted at $739.82 million, representing a 7.8% growth compared to the same quarter last year [2] Annual Estimates - For the annual period, Zacks Consensus Estimates predict earnings of $1.69 per share and revenue of $3.03 billion, reflecting increases of +113.92% and +7.56% respectively from the previous year [3] Analyst Sentiment - Recent changes to analyst estimates for PAAS suggest a positive outlook, with upward revisions indicating optimism about the company's business and profitability [3] Zacks Rank - PAAS currently holds a Zacks Rank of 1 (Strong Buy), with the consensus EPS estimate rising by 5.62% over the last 30 days [5] Valuation Metrics - The company has a Forward P/E ratio of 17.54, which is lower than the industry average of 22.76 [6] - PAAS has a PEG ratio of 0.47, aligning with the Mining - Silver industry's average PEG ratio of 0.47 [6] Industry Context - The Mining - Silver industry is part of the Basic Materials sector and holds a Zacks Industry Rank of 10, placing it in the top 5% of over 250 industries [7]

Group 1 - Futu Holdings Limited (FUTU) has seen a 7.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Pan American Silver Corp. (PAAS) has experienced a 9% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - RAPT Therapeutics, Inc. (RAPT) has seen a significant increase of 72.1% in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Hamilton Insurance Group, Ltd. (HG) has experienced an 18.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Invesco Ltd. (IVZ) has seen a 7.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3]

Core Viewpoint - Pan American Silver (PAAS) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts for the current and following years [1][2]. - Changes in earnings estimates are strongly correlated with near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4][6]. Company Performance and Outlook - The recent upgrade indicates a positive outlook for Pan American Silver's earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - Analysts have raised their earnings estimates for Pan American Silver, with the Zacks Consensus Estimate increasing by 23.6% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7][9]. - Pan American Silver's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].

Core Viewpoint - MAG Silver Corp. has received approval from its shareholders for the acquisition by Pan American Silver Corp. through a plan of arrangement, indicating strong shareholder support for the transaction [1][2]. Shareholder Approval - The special resolution for the acquisition was approved by 99.52% of the votes cast by MAG shareholders present or represented at the meeting [2]. - A total of 61,077,441 common shares were represented at the meeting, accounting for 59.03% of the total issued and outstanding MAG shares [2]. Terms of the Arrangement - Under the arrangement, MAG shareholders can choose to receive either $20.54 in cash for each MAG share or a combination of $0.0001 in cash and 0.755 of a common share in Pan American [3]. - The total cash consideration for all MAG shareholders is capped at $500 million, with the remainder paid in Pan American shares [3]. Next Steps for Completion - Following shareholder approval, MAG will seek a final order from the Supreme Court of British Columbia to approve the arrangement, with a hearing scheduled for July 14, 2025 [5]. - The completion of the arrangement is contingent upon receiving necessary regulatory approvals and satisfying customary closing conditions, with an expected closing in the second half of 2025 [5]. Company Overview - MAG Silver Corp. is a Canadian mining and exploration company focused on high-grade precious metals projects in the Americas, including a 44% joint venture interest in the Juanicipio Mine in Mexico [6]. - The company is also engaged in exploration programs at the Deer Trail Project in Utah and the Larder Project in Canada [6].

Core Viewpoint - Pan American Silver (PAAS) is showing potential for a bullish trend following a recent technical breakout and positive earnings estimate revisions [1][4]. Technical Analysis - PAAS has recently surpassed the 20-day moving average, indicating a short-term bullish trend [1][2]. - The stock has rallied 8.2% over the past four weeks, suggesting upward momentum [4]. Earnings Estimates - There have been 7 upward revisions for PAAS's earnings estimates for the current fiscal year, with no downward revisions, indicating strong investor confidence [4][5]. - The consensus estimate for earnings has also increased, further supporting the bullish outlook for PAAS [4].

Company Performance - Pan American Silver's stock closed at $27.72, reflecting a -4.84% change from the previous day's closing price, underperforming the S&P 500's daily gain of 0.52% [1] - The stock has increased by 20.37% over the past month, outperforming the Basic Materials sector's gain of 4.06% and the S&P 500's gain of 5.95% [1] Upcoming Earnings - The company is set to announce its earnings on August 6, 2025, with projected earnings of $0.35 per share, indicating a year-over-year growth of 218.18% [2] - The consensus estimate for revenue is $733.24 million, representing a 6.84% increase compared to the same quarter of the previous year [2] Full Year Projections - For the full year, earnings are projected at $1.52 per share and revenue at $2.98 billion, reflecting changes of +92.41% and +5.66% respectively from the prior year [3] Analyst Estimates - Changes in analyst estimates for Pan American Silver are crucial as they indicate the evolving nature of near-term business trends, with positive revisions suggesting a favorable outlook on business health and profitability [4] Zacks Rank and Valuation - The Zacks Rank system, which incorporates estimate changes, currently ranks Pan American Silver at 3 (Hold), with the consensus EPS estimate having increased by 4.03% over the past month [6] - The company has a Forward P/E ratio of 19.18, which is a discount compared to the industry average Forward P/E of 25.49, and a PEG ratio of 0.52, aligning with the Mining - Silver industry's average [7] Industry Context - The Mining - Silver industry is part of the Basic Materials sector and holds a Zacks Industry Rank of 23, placing it in the top 10% of over 250 industries [8] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a strong position for the Mining - Silver industry [8]

Core Insights - Pan American Silver Corp. (PAAS) reported a significant decrease in All-in Sustaining Costs (AISC) for its silver segment in Q1 2025, with AISC at $13.94, a 16% reduction year-over-year and well below the guidance of $21.00-$22.25 [1][9] Cost Performance - The year-over-year improvement in AISC was primarily driven by cost reductions at key mines, particularly at La Colorada, where AISC fell 29% to $19.72 per ounce due to enhanced ventilation conditions [2] - The Cerro Moro mine achieved a negative AISC of $4.40 per ounce, a significant improvement from $6.43 in Q1 2024, attributed to higher gold by-product credits and increased gold prices [3] - At the Huaron mine, AISC decreased by 6% to $13.09 per ounce, benefiting from lower treatment and refining charges and higher by-product credits from zinc and lead [3] Future Outlook - For 2025, PAAS anticipates the silver segment's AISC to be between $16.25 and $18.25 per ounce, indicating an improvement from the $18.98 per ounce in 2024, supported by ongoing cost benefits from La Colorada's ventilation upgrades and increased gold by-product credits from Cerro Moro [4] - The planned acquisition of MAG Silver Corp. could further reduce costs, as the Juanicipio project is expected to have an AISC between $6.00 and $8.00 per ounce in 2025 [5] Peer Comparison - First Majestic Silver (AG) reported an 11% year-over-year decline in AISC per silver equivalent ounce to $19.24 in Q1 2025, driven by the acquisition of Cerro Los Gatos, which added 2.3 million silver equivalent ounces of production [6][7] Stock Performance and Valuation - Year-to-date, PAAS shares have increased by 41.8%, outperforming the industry growth of 31.3% and the Basic Materials sector's rise of 9% [8] - PAAS is currently trading at a forward 12-month price-to-earnings multiple of 17.10X, slightly below the industry average of 18.02X [10] Earnings Estimates - The consensus estimate for PAAS's 2025 earnings is $1.52 per share, reflecting a year-over-year increase of 92.4%, with a 2026 estimate of $1.93, indicating a 27.2% rise [11]

Core Insights - Pan American Silver (PAAS) started 2025 with operating performance that met expectations, indicating a positive outlook for the year ahead [1] - Silver production reached 5 million ounces in the quarter, aligning with the high end of the projected range of 4.75 - 5 million ounces, consistent with the previous year's quarter [1] Production Performance - La Colorada experienced increased output due to improved ventilation conditions [2] - El Peñon saw production gains from higher throughput and better silver grades [2] - Huaron reported improved numbers from additional development but at lower grades [2] - Cerro Moro and San Vicente faced lower output due to mine sequencing into lower silver grade zones [3] - Dolores production decreased following the cessation of mining operations in July 2024 [3] Gold Production - Gold production was 182.2 thousand ounces, within the guidance of 175–189 thousand ounces, but lower than 222.9 thousand ounces from the previous year due to the sale of La Arena mine and lower grades at other sites [4] - Gold production for 2025 is projected at 735 – 800 thousand ounces, down from 895.5 thousand ounces in 2024 [6] Future Outlook - PAAS anticipates an increase in silver and gold production in the remaining quarters of 2025, maintaining silver production guidance at 20–21 million ounces [5] - The acquisition of MAG Silver Corp. for $2.1 billion is expected to enhance PAAS's production capabilities, particularly from the Juanicipio project, which is forecasted to produce 14.7-16.7 million ounces of silver in 2025 [7][8] Peer Comparison - Hecla Mining, a close competitor, reported a solid start to 2025 with 4.1 million ounces of silver and 34,232 ounces of gold produced in the first quarter [9] - Hecla Mining's silver production guidance for 2025 is set at 15.5 - 17.0 million ounces, compared to 16.2 million ounces in 2024 [9] Stock Performance - PAAS shares have increased by 41.8% year-to-date, outperforming the industry growth of 32.1% and the Basic Materials sector's rise of 7.2% [11][12] - The Zacks Consensus Estimate for PAAS's earnings for 2025 has risen by 9.7% over the past 60 days, with an expected earnings per share of $1.47, reflecting an 86.1% year-over-year increase [15]

Core Insights - The price of silver has increased by approximately 26% since the beginning of the year, surpassing $33 per ounce, indicating a strong upward trend in the market [1]. Group 1: Market Performance - Silver has been viewed as an ideal hedge by investors and analysts for years, reflecting its perceived value in uncertain economic conditions [1]. Group 2: Analyst Background - The analyst, Harrison, has over a decade of experience in the market and has a professional background in private equity, real estate, and economic research, enhancing the credibility of the insights provided [1].

Core Insights - Pan American Silver (PAAS) and First Majestic Silver (AG) are prominent players in the silver mining sector, both headquartered in Vancouver, Canada, and providing exposure to silver and gold [1][2] - Silver prices have increased by 28% and gold prices by 29% this year, driven by safe-haven demand, geopolitical tensions, and supply deficits [1] - The silver market is projected to face another deficit in 2025, which is expected to positively impact prices [1] Company Overview: Pan American Silver - Pan American Silver is a leading silver and gold producer in the Americas, operating 12 mines across several countries [3] - As of June 30, 2024, Pan American's mineral reserves included 468 million ounces of silver and 6.7 million ounces of gold, with an expected increase of 58 million ounces from the acquisition of MAG Silver Corp. [4][5] - The company reported a 28.6% year-over-year revenue increase to $773 million in Q1, with record mine operating earnings of $250.8 million [6][10] - Silver production was 5 million ounces in Q1, with expectations to meet 2025 guidance of 20-21 million ounces of silver [8][9] Company Overview: First Majestic Silver - First Majestic Silver focuses on silver and gold production primarily in Mexico and the U.S., operating four underground mines [13] - Proven and probable mineral reserves are estimated at 86.8 million ounces of silver and 594,000 ounces of gold as of December 31, 2024 [14] - The company achieved a 130% increase in Q1 revenues to $243.9 million, driven by the Cerro Los Gatos Silver Mine and higher silver prices [16][10] - Total production reached 7.7 million silver-equivalent ounces in Q1, marking a 49% year-over-year increase [15] Financial Performance Comparison - Pan American's adjusted earnings per share for 2025 are estimated at $1.47, reflecting an 86.1% year-over-year growth [21] - First Majestic's earnings estimate for 2025 is 12 cents per share, an improvement from a loss of 14 cents in 2024 [22] - PAAS stock has increased by 40% over the past year, outperforming the industry's growth of 18.5%, while AG has gained 30.7% [23] Valuation and Market Position - Pan American is trading at a forward price-to-sales multiple of 3.39X, below the industry average of 4.06X, while AG trades at 4.48X [25] - Pan American offers a dividend yield of 1.38%, significantly higher than First Majestic's 0.22% [27] - The average price target for Pan American suggests a 9% increase, while First Majestic's average price target implies a 2% decline [28] Investment Outlook - Both companies are positioned to benefit from rising silver and gold prices, with strong production expectations and expansion efforts [29] - Pan American has shown better performance in share price gains and dividend yield, along with positive earnings estimate revisions [30] - With a more attractive valuation and higher growth potential, Pan American Silver is viewed as a more compelling investment choice compared to First Majestic [33]