Pan American Silver (PAAS) reported $815.1 million in revenue for the quarter ended December 2024, representing a year-over-year increase of 21.7%. EPS of $0.35 for the same period compares to -$0.04 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $805.2 million, representing a surprise of +1.23%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.35.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings ...

Pan American Silver (PAAS) came out with quarterly earnings of $0.35 per share, in line with the Zacks Consensus Estimate. This compares to loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this silver mining company would post earnings of $0.21 per share when it actually produced earnings of $0.32, delivering a surprise of 52.38%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.Pan American Silv ...

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Pan American Silver achieved record Q4 and FY 2024 revenue, cash flow, and free cash flow, reflecting strong metal prices and operational performance [Q4 2024 and FY 2024 Performance Highlights](index=1&type=section&id=Q4%202024%20and%20FY%202024%20Performance%20Highlights) Pan American Silver reported record revenue, cash flow from operations, and free cash flow for Q4 and FY 2024, reflecting strong metal prices, expanding margins, and solid operating performance - Pan American generated record free cash flow of **$196.2 million** in Q4 2024 and **$445.1 million** in FY 2024, reflecting strong metal prices, expanding margins, and solid operating performance[3](index=3&type=chunk) Q4 2024 and FY 2024 Key Financial and Production Highlights | Metric | Q4 2024 | FY 2024 | | :------------------------------------ | :------ | :------ | | Revenue | $815.1 million | $2.8 billion | | Net earnings | $107.8 million | $112.7 million | | Basic earnings per share | $0.30 | $0.31 | | Adjusted earnings | $126.9 million | $286.7 million | | Basic adjusted earnings per share | $0.35 | $0.79 | | Cash flow from operating activities | $274.1 million | $724.1 million | | Free cash flow | $196.2 million | $445.1 million | | Silver production | 6.0 million ounces | 21.1 million ounces | | Gold production | 224.2 thousand ounces | 892.5 thousand ounces | | Silver Segment Cash Costs | $14.06 per ounce | $14.30 per ounce | | Silver Segment AISC (excl. NRV) | $19.88 per ounce | $18.98 per ounce | | Gold Segment Cash Costs | $1,223 per ounce | $1,203 per ounce | | Gold Segment AISC (excl. NRV) | $1,521 per ounce | $1,501 per ounce | | Capital expenditures | N/A | $372.4 million | | Working capital (Dec 31, 2024) | N/A | $1,033.4 million | | Cash and short-term investments (Dec 31, 2024) | N/A | $887.3 million | | Total available liquidity (Dec 31, 2024) | N/A | $1.6 billion | | Total debt (Dec 31, 2024) | N/A | $803.3 million | | Cash dividend declared | $0.10 per common share | N/A | - The company repurchased **1,720,366 common shares** for **$24.3 million** in FY 2024 and an additional **909,012 shares** for **$20.0 million** in January 2025 under its Normal Course Issuer Bid (NCIB)[6](index=6&type=chunk) [Q4 2024 Project Updates](index=3&type=section&id=Q4%202024%20Project%20Updates) The company advanced several key projects in Q4 2024, including significant capital investments and infrastructure upgrades across multiple mines [Mine-Specific Project Developments](index=3&type=section&id=Mine-Specific%20Project%20Developments) The company advanced several key projects in Q4 2024, including significant capital investments in La Colorada for the Skarn project, substantial completion of Huaron's new tailings filtration plant, and full operation of Timmins' Bell Creek paste backfill plant - La Colorada: **$8.0 million** of project capital was spent on the Skarn project for engineering work and exploration drilling[10](index=10&type=chunk) - Huaron: **$6.5 million** of project capital was spent on the construction of the new tailings filtration plant and filter-stack tailings storage facility, which was substantially completed in Q4 2024 and is expected to be fully operational within the first half of 2025[10](index=10&type=chunk) - Timmins: **$1.5 million** of project capital was spent to complete construction of the Bell Creek paste backfill plant, now fully operational for enhanced ground stability and increased mineral resource recovery[10](index=10&type=chunk) - Jacobina: **$4.5 million** of project capital was spent in upgrading the plant facility infrastructure and on a study aimed at optimizing the mine's long-term economics and sustainability[10](index=10&type=chunk) - Escobal: The mine remains on care and maintenance with no date for a restart of operations, as the ILO 169 consultation process continues with Xinka representatives and the government[10](index=10&type=chunk) [2025 Operating Outlook](index=3&type=section&id=2025%20Operating%20Outlook) The company provides its 2025 operating outlook, including production forecasts for silver, gold, and base metals, along with detailed cost and expenditure projections [Production Forecasts](index=3&type=section&id=Production%20Forecasts) Pan American forecasts 2025 silver production between 20.00-21.00 million ounces and gold production between 735-800 thousand ounces, with production for both metals expected to be weighted towards the second half of the year - Silver production in 2025 is forecast to be between **20.00 to 21.00 million ounces**, driven by higher development rates at La Colorada and increased throughput/grades at Huaron, offset by decreases at Dolores and San Vicente[11](index=11&type=chunk) - Gold production in 2025 is forecast to be between **735 to 800 thousand ounces**, reflecting the disposition of La Arena in 2024 and the cessation of active mining at Dolores[11](index=11&type=chunk) - Both silver and gold production are weighted to the second half of 2025, with a corresponding decrease in AISC per ounce over that period[11](index=11&type=chunk) [Silver and Gold Production by Segment](index=4&type=section&id=Silver%20and%20Gold%20Production%20by%20Segment) Detailed 2025 production forecasts for silver and gold are provided across various segments and individual mines 2025 Silver and Gold Production Forecasts by Segment | Segment/Mine | Silver Production (million ounces) | Gold Production (thousand ounces) | | :------------- | :------------------------------- | :-------------------------------- | | **Silver Segment Total** | **14.70 - 15.50** | **79 - 89** | | La Colorada (Mexico) | 5.50 - 5.80 | 2 | | Cerro Moro (Argentina) | 2.80 - 2.90 | 77 - 87 | | Huaron (Peru) | 3.70 - 3.90 | — | | San Vicente (Bolivia) | 2.70 - 2.90 | — | | **Gold Segment Total** | **5.30 - 5.50** | **656 - 711** | | Jacobina (Brazil) | — | 185 - 195 | | El Peñon (Chile) | 3.70 - 3.80 | 120 - 130 | | Timmins (Canada) | — | 120 - 130 | | Shahuindo (Peru) | 0.25 | 125 - 135 | | Minera Florida (Chile) | 0.45 | 78 - 90 | | Dolores (Mexico) | 0.90 - 1.00 | 28 - 31 | | **Total Production** | **20.00 - 21.00** | **735 - 800** | [Quarterly Production Forecasts](index=4&type=section&id=Quarterly%20Production%20Forecasts) Quarterly production forecasts for silver and gold in 2025 indicate a weighting towards the second half of the year 2025 Quarterly Operating Outlook | Quarter | Silver Production (million ounces) | Gold Production (thousand ounces) | | :------ | :------------------------------- | :-------------------------------- | | Q1 | 4.75 - 5.00 | 175 - 189 | | Q2 | 4.95 - 5.20 | 179 - 194 | | Q3 | 5.10 - 5.35 | 189 - 205 | | Q4 | 5.20 - 5.45 | 192 - 212 | | **FY 2025** | **20.00 - 21.00** | **735 - 800** | [Consolidated Base Metal Production](index=5&type=section&id=Consolidated%20Base%20Metal%20Production) The 2025 forecast includes consolidated production volumes for key base metals: zinc, lead, and copper 2025 Consolidated Base Metal Production Forecasts (thousand tonnes) | Metal | Forecast | | :---- | :------- | | Zinc | 42 - 45 | | Lead | 21 - 22 | | Copper| 4 | [Cost Forecasts (AISC)](index=4&type=section&id=Cost%20Forecasts%20(AISC)) The 2025 AISC forecasts for both silver and gold segments are provided, with expectations of decreasing costs in the second half of the year, based on specific metal price and exchange rate assumptions - AISC per ounce is expected to decrease in the second half of 2025, corresponding with the weighting of silver and gold production to that period[11](index=11&type=chunk) - AISC forecasts assume average metal prices of **$30.00/oz** for silver, **$2,650/oz** for gold, **$3,000/tonne** for zinc, **$2,000/tonne** for lead, and **$9,500/tonne** for copper[13](index=13&type=chunk) - Average annual exchange rates relative to **1 USD** are assumed for the Mexican peso (**20.00**), Peruvian sol (**3.75**), Argentine peso (**1,177**), Bolivian boliviano (**7.00**), Canadian dollar (**$1.38**), Chilean peso (**950.00**), and Brazilian real (**5.75**)[13](index=13&type=chunk) [Silver Segment AISC](index=4&type=section&id=Silver%20Segment%20AISC) The 2025 All-in Sustaining Cost (AISC) forecast for the silver segment details quarterly expectations and influencing factors - Forecasted Silver Segment AISC for 2025 is between **$16.25 and $18.25 per ounce**[14](index=14&type=chunk) 2025 Quarterly Silver Segment AISC Forecast | Quarter | AISC ($ per ounce) | | :------ | :----------------- | | Q1 | 21.00 - 22.25 | | Q2 | 19.50 - 21.25 | | Q3 | 14.25 - 16.25 | | Q4 | 10.25 - 13.00 | | **FY 2025** | **16.25 - 18.25** | - The forecast reflects reduced AISC at La Colorada due to new ventilation and higher gold by-product credits from Cerro Moro, partly offset by additional contractual payments and higher operating costs at Huaron for the new tailings plant[14](index=14&type=chunk) [Gold Segment AISC](index=4&type=section&id=Gold%20Segment%20AISC) The 2025 All-in Sustaining Cost (AISC) forecast for the gold segment outlines quarterly expectations and key cost drivers - Forecasted Gold Segment AISC for 2025 is between **$1,525 and $1,625 per ounce**[14](index=14&type=chunk) 2025 Quarterly Gold Segment AISC Forecast | Quarter | AISC ($ per ounce) | | :------ | :----------------- | | Q1 | 1,575 - 1,675 | | Q2 | 1,550 - 1,650 | | Q3 | 1,500 - 1,600 | | Q4 | 1,500 - 1,600 | | **FY 2025** | **1,525 - 1,625** | - Operating costs per ounce are expected to increase at Shahuindo due to lower grade ore and postponed capital, and at Timmins from new paste plant operations and inflationary pressures, partly offset by a weakening Canadian dollar[14](index=14&type=chunk) [Expenditure Forecasts](index=5&type=section&id=Expenditure%20Forecasts) Pan American forecasts total capital expenditures for 2025 to be between $360.0-$385.0 million, with specific allocations for sustaining and project capital, as well as other operational and administrative expenses 2025 Expenditures Forecast ($ millions) | Category | Forecast | | :-------------------------- | :------------- | | Sustaining Capital | 270.0 - 285.0 | | Project Capital | 90.0 - 100.0 | | **Total Capital Expenditures** | **360.0 - 385.0** | | Reclamation Expenditures | 28.0 - 34.5 | | Care & Maintenance | 20.5 - 24.0 | | General and Administrative | 80.0 - 85.0 | | Exploration and Project Development | 15.0 - 20.0 | | Income Tax Payments | 240.0 - 260.0 | | Depreciation and Amortization | 450.0 - 500.0 | [Planned Project Capital Expenditures](index=5&type=section&id=Planned%20Project%20Capital%20Expenditures) Detailed project capital expenditures for 2025 are outlined for various mines, focusing on exploration, infrastructure, and optimization initiatives - Planned project capital expenditures for 2025 include **$10.0-$12.0 million** for La Colorada (Veins) for exploration and infrastructure, and **$39.0-$42.0 million** for La Colorada (Skarn) for exploration and engineering[21](index=21&type=chunk) - Huaron has an estimated residual project capital of **$12.0-$13.5 million** for the new tailings filtration plant. Timmins plans **$18.0-$20.0 million**, including a new 'stage 6' tailings storage facility and satellite deposit exploration[21](index=21&type=chunk) - Jacobina has an estimated investment of **$11.0-$12.5 million** to advance a mine and plant optimization study[21](index=21&type=chunk) [Conference Call and Webcast Details](index=5&type=section&id=CONFERENCE%20CALL%20AND%20WEBCAST%20TO%20DISCUSS%20THE%202024%20FINANCIAL%20RESULTS%20AND%202025%20OPERATING%20OUTLOOK) Pan American Silver will host a conference call and webcast on February 20, 2025, at 11:00 am ET to discuss the 2024 financial results and 2025 operating outlook - A conference call and webcast to discuss the 2024 financial results and 2025 Operating Outlook will be held on **February 20, 2025, at 11:00 am ET (8:00 am PT)**[19](index=19&type=chunk) - Participants can register for the conference call and access the webcast via provided links, with an archive available for three months on panamericansilver.com[19](index=19&type=chunk)[20](index=20&type=chunk) [Consolidated Financial Results](index=7&type=section&id=CONSOLIDATED%20RESULTS) This section presents a consolidated overview of key financial and operational data for Q4 and FY 2024, including income statements and cash flows [Key Consolidated Financial and Operational Data](index=7&type=section&id=Key%20Consolidated%20Financial%20and%20Operational%20Data) This section provides a consolidated overview of key financial metrics and operational data for Q4 and FY 2024 compared to 2023, highlighting significant improvements in revenue and net earnings Consolidated Results Summary | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :------------------------------------ | :------ | :------ | :------ | :------ | | **FINANCIAL** | | | | | | Revenue ($ millions) | 815.1 | 669.6 | 2,818.9 | 2,316.1 | | Mine operating earnings ($ millions) | 184.9 | 64.9 | 548.5 | 296.8 | | Net earnings (loss) ($ millions) | 107.8 | (67.8) | 112.7 | (104.9) | | Basic earnings (loss) per share ($) | 0.30 | (0.19) | 0.31 | (0.32) | | Adjusted earnings (loss) ($ millions) | 126.9 | (16.3) | 286.7 | 39.3 | | Basic adjusted earnings (loss) per share ($) | 0.35 | (0.04) | 0.79 | 0.12 | | Net cash generated from operating activities ($ millions) | 274.1 | 167.4 | 724.1 | 450.2 | | Sustaining capital expenditures ($ millions) | 77.9 | 92.6 | 279.0 | 288.5 | | Non-sustaining capital expenditures ($ millions) | 21.5 | 41.8 | 101.4 | 141.3 | | Cash dividend per share ($) | 0.10 | 0.10 | 0.40 | 0.40 | | **PRODUCTION** | | | | | | Silver (thousand ounces) | 6,018 | 4,835 | 21,061 | 20,437 | | Gold (thousand ounces) | 224 | 268 | 892 | 883 | | Zinc (thousand tonnes) | 14.1 | 9.4 | 45.1 | 38.8 | | Lead (thousand tonnes) | 6.1 | 4.2 | 20.8 | 18.7 | | Copper (thousand tonnes) | 1.0 | 1.4 | 5.2 | 5.0 | | **CASH COSTS ($/ounce)** | | | | | | Silver Segment | 14.06 | 19.31 | 14.30 | 13.07 | | Gold Segment | 1,223 | 1,096 | 1,203 | 1,113 | | **AISC ($/ounce)** | | | | | | Silver Segment (excl. NRV) | 19.88 | 26.28 | 18.98 | 17.91 | | Gold Segment (excl. NRV) | 1,521 | 1,415 | 1,501 | 1,416 | | **AVERAGE REALIZED PRICES ($/ounce or $/tonne)** | | | | | | Silver ($/ounce) | 30.87 | 22.33 | 28.06 | 22.94 | | Gold ($/ounce) | 2,666 | 1,980 | 2,388 | 1,951 | | Zinc ($/tonne) | 3,060 | 2,493 | 2,828 | 2,656 | | Lead ($/tonne) | 1,967 | 2,121 | 2,058 | 2,146 | | Copper ($/tonne) | 9,019 | 8,146 | 9,260 | 8,475 | [Fourth Quarter Consolidated Income Statements](index=9&type=section&id=Fourth%20Quarter%20Consolidated%20Income%20Statements) The consolidated income statement for Q4 2024 shows a significant increase in revenue and a return to net earnings compared to a net loss in Q4 2023, driven by higher mine operating earnings and substantial gains from the sale of subsidiaries Fourth Quarter Consolidated Income Statements ($ millions) | Metric | Q4 2024 | Q4 2023 | | :------------------------------------------ | :------ | :------ | | Revenue | 815.1 | 669.6 | | Cost of sales | (630.2) | (604.7) | | Mine operating earnings | 184.9 | 64.9 | | Earnings (loss) from operations | 254.6 | (26.8) | | Earnings (loss) before income taxes | 226.0 | (48.0) | | Income tax expense | (118.2) | (19.8) | | Net earnings (loss) | 107.8 | (67.8) | | Basic earnings (loss) per share | 0.30 | (0.19) | | Gains from sale of subsidiaries | 137.4 | — | | Change in mine reclamation obligations | (53.9) | (13.8) | [Fourth Quarter Consolidated Statements of Cash Flows](index=10&type=section&id=Fourth%20Quarter%20Consolidated%20Statements%20of%20Cash%20Flows) The consolidated cash flow statement for Q4 2024 indicates a substantial increase in net cash generated from operating activities and a positive net cash flow from investing activities, primarily due to significant cash proceeds from the sale of subsidiaries Fourth Quarter Consolidated Statements of Cash Flows ($ millions) | Metric | Q4 2024 | Q4 2023 | | :------------------------------------------ | :------ | :------ | | Net cash generated from operating activities | 274.1 | 167.4 | | Net cash generated from investing activities | 201.8 | (70.6) | | Net cash generated from financing activities | (49.7) | (45.5) | | Cash and cash equivalents at end of period | 862.8 | 399.6 | | Cash proceeds from sale of subsidiaries | 306.6 | 45.5 | | Payments for mineral properties, plant and equipment | (85.4) | (118.7) | [Company Information](index=11&type=section&id=Company%20Information) This section provides an overview of Pan American Silver's operations, geographic presence, and its use of alternative performance measures [About Pan American Silver](index=11&type=section&id=About%20Pan%20American%20Silver) Pan American Silver is a leading producer of precious metals in the Americas, operating silver and gold mines across seven countries, with a focus on sustainability, operational excellence, and prudent financial management over three decades - Pan American is a leading producer of precious metals in the Americas, operating silver and gold mines in Canada, Mexico, Peru, Bolivia, Argentina, Chile, and Brazil[31](index=31&type=chunk) - The company also owns the Escobal mine in Guatemala, which is currently not operating, and holds interests in exploration and development projects[31](index=31&type=chunk) - Headquartered in Vancouver, B.C., Pan American Silver has been operating for over three decades, earning an industry-leading reputation for sustainability performance, operational excellence, and prudent financial management[31](index=31&type=chunk) [Alternative Performance (Non-GAAP) Measures](index=11&type=section&id=Alternative%20Performance%20(Non-GAAP)%20Measures) This section defines and explains several non-GAAP financial measures used by Pan American Silver, emphasizing their utility for investors while cautioning against direct comparison with other companies' metrics - Non-GAAP measures like Cash Costs, Adjusted earnings, and All-in Sustaining Costs (AISC) are used as benchmarks for performance in the mining industry, providing a more comprehensive view of operating costs and normalized earnings[34](index=34&type=chunk) - Total debt, working capital, and total available liquidity are non-GAAP measures used by Pan American and investors to evaluate financial leverage, ability to meet current obligations, and liquid assets available[34](index=34&type=chunk) - Free cash flow, calculated as net cash from operating activities less sustaining capital expenditures, is a non-GAAP measure used to evaluate profitability and capital available for investment or return to shareholders[34](index=34&type=chunk) [Cautionary Note Regarding Forward-Looking Statements and Information](index=13&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements%20and%20Information) This section provides a cautionary note regarding forward-looking statements and information, outlining inherent risks, uncertainties, and assumptions that could cause actual results to differ materially from projections - Forward-looking statements relate to future financial or operational performance, including estimated production, AISC, capital expenditures for 2025, and expectations regarding strategic initiatives and capital projects[37](index=37&type=chunk) - These statements are based on assumptions such as metal prices, foreign exchange rates, timing and impact of capital expenditure projects, ore grades, and regulatory approvals, which are subject to significant operational, business, economic, and regulatory uncertainties[38](index=38&type=chunk) - Known and unknown risks include inflation, fluctuations in metal prices and currency markets, operational hazards, changes in laws and regulations, political developments, and diminishing mineral reserves, which could cause actual results to differ materially[39](index=39&type=chunk)

In its upcoming report, Pan American Silver (PAAS) is predicted by Wall Street analysts to post quarterly earnings of $0.35 per share, reflecting an increase of 975% compared to the same period last year. Revenues are forecasted to be $812.87 million, representing a year-over-year increase of 21.4%.The consensus EPS estimate for the quarter has undergone a downward revision of 15.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Pan American Silver (PAAS) reports results for the quarter ended December 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 19, 2025, might help the stock move higher if these key numbers are bet ...

Investment Rating - The report assigns a positive investment rating to Pan American Silver, highlighting its strong fundamentals and position as a leading silver producer [1]. Core Insights - Pan American Silver is recognized as the world's fourth-largest silver producer, with operations across multiple countries in Latin America, including Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina [1][5]. - The company has a diversified portfolio, focusing on silver mining while also engaging in gold, zinc, and copper production [1][5]. - The report emphasizes the company's ability to generate shareholder value through consistent dividend payments linked to net cash [1]. Performance Summary - In 2023, the company's silver production was 20.4 million ounces, with total cash costs at $13.07 per ounce and AISC at $18.17 per ounce, which were above the company's guidance due to operational challenges at La Colorada [2]. - The company expects a silver production increase to 21.06 million ounces in 2024, reflecting a year-over-year growth of 3.24% [2]. - Gold production in 2023 reached 88,290 ounces, a significant increase from the previous year, with cash costs at $1,113 per ounce and AISC at $1,371 per ounce [2]. Company Overview - Pan American Silver was founded in 1994 and has consistently focused on developing high-potential silver mining assets [9]. - The company has a strong operational presence in Latin America, with key assets including La Colorada and Dolores mines in Mexico, Cerro Moro and Navidad in Argentina, and Huaron and Shahuindo in Peru [5][35]. - The company has maintained a robust cash position, with cash and short-term investments totaling $887.3 million by the end of 2024, supporting its strategic initiatives [2]. Mining Projects - La Colorada mine in Mexico produced 4.4 million ounces of silver in 2023, with a cash cost of $22.82 per ounce [14]. - The La Colorada Skarn project is expected to have a potential annual silver production of 17.2 million ounces during its first ten years of operation [19]. - The Dolores mine produced 1.735 million ounces of silver in 2023, with cash costs at $1,021 per ounce [25]. Regional Operations - In Argentina, the Cerro Moro mine produced 296,900 ounces of silver in 2024, while the Navidad project remains in a maintenance phase due to local regulations [30][32]. - The Huaron mine in Peru produced 3.61 million ounces of silver in 2023, with cash costs at $9.95 per ounce [39]. - The Jacobina mine in Brazil achieved a record gold production of 196,700 ounces in 2024, with cash costs at $786 per ounce [65].

Company Overview - Pan American Silver (NYSE: PAAS) is the second largest primary silver producer globally, with a focus on developing primary deposits in the Americas [1] - For the year ending December 2024, PAAS had an output of 21.1 million ounces (Moz) of silver [1] Investment Newsletter Background - BuildingBenjamins is a free stock picking and market commentary investment newsletter, operating as the DBA for Tradition Investment Management, LLC, a registered investment adviser [1] - Benjamin Halliburton, the founder of BuildingBenjamins, has a distinguished investment career, including founding Tradition Capital Management in 2000 and earning accolades such as "PSN Manager of the Decade" for All-Cap in the 2000s and Dividend Value in the 2010s [1] - Halliburton's investment strategies, such as the "Disciplined Growth Strategy," have historically outperformed benchmarks like the S&P 500 during the 1990s bull market [1]

Pan American Silver Corp. (PAAS) produced 21.1 million ounces of silver in 2024, up 3.4% from 2023. The consolidated silver production came within PAAS' expected 21.0-23.0 ounces for the year. Pan American Silver’s fourth-quarter silver output was 6 million ounces, driven by solid performance in the La Colorada mine.The La Colorada mine produced 1.6 million ounces of silver in the fourth quarter of 2024.Pan American Silver’s PerformanceThe company produced 892,000 ounces of gold in 2024, which came within i ...

I am initiating coverage on Pan American Silver (NYSE: PAAS ) (TSX: PAAS:CA ) with a “Buy” rating and an investment horizon of 24 months. I believe that Pan American stock is attractively valued and is positioned to benefit from higher preciousAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving c ...

Financial Performance - Pan American Silver reported record revenue of $716.1 million for Q3 2024, excluding approximately $30 million in finished goods and concentrated inventories [4] - Cash flow from operations before working capital changes reached a record $235.8 million, with free cash flow also at a record of $151.5 million [4] - Cash and short-term investments increased by $101.3 million to $469.9 million compared to Q2 2024, while net debt decreased to $376.2 million [5] - Net earnings for Q3 were $57.1 million or $0.16 per share, impacted by a one-time tax expense related to prior years [6] - Adjusted earnings were $115.1 million or $0.32 adjusted earnings per share [7] Operational Highlights - Silver production totaled 5.5 million ounces in Q3, with La Colorada leading production, showing a 59% increase and a 26% decrease in cash costs compared to Q2 [8] - Gold production was 225,000 ounces, with Jacobina producing 50,400 ounces at an all-in sustaining cost of $1,195 per ounce [9] - Cash costs for the gold segment were $1,195 per ounce, while all-in sustaining costs were $1,516 per ounce [11] - Silver segment cash costs were $15.88 per ounce, with all-in sustaining costs at $20.90 per ounce [12] Market and Strategic Developments - The company expects to achieve its 2024 guidance, anticipating silver production at the low end of the 21 million to 23 million ounce range [13] - Significant progress is being made on capital projects, including the new filter plant at Huaron, expected to be operational by Q1 2025 [14] - The Jacobina asset shows strong potential, with a recent mineral resource update indicating a replacement of mine production with new reserves [15] - The La Colorada Skarn project has seen a 53% increase in indicated mineral resources, with significant interest from potential partners [16] Management Commentary - Management expressed optimism about the operational improvements and production targets, particularly at La Colorada and Jacobina [19] - Current metal prices are enhancing profitability, and a strong finish to the year is anticipated due to a back-end loaded production profile [19] Other Important Information - The Guatemalan Ministry of Energy and Mines has appointed a new Vice Minister for Sustainable Development, overseeing the consultation process for the Escobal mine, which remains on care and maintenance [17][18] - The company announced a $0.10 per share dividend for Q3, with year-to-date dividend payments totaling $109.1 million [6] Q&A Session Summary Question: Implications of the La Arena offtake agreement - Management confirmed that the offtake agreement does not change the cash or contingent elements of the previously agreed NSR royalty [22] Question: 2024 guidance and production expectations - Management indicated that Cerro Moro and La Arena could drive a stronger finish to the year, with cautious optimism about reaching the midpoint of guidance [24][25] Question: Silver and gold grades at El Penon - Management noted exploration opportunities for silver at El Penon and expected slightly stronger gold grades in Q4, though variability remains [27][28] Question: Partnership discussions for La Colorada Skarn - Management reported significant interest from large companies in the La Colorada Skarn project, with ongoing technical reviews [29][30] Question: Cost impact from the new Pace plant at Timmins - Management stated that while higher gold prices extend the life of the asset, costs related to tailings disposal are increasing [35][36] Question: M&A strategy in light of recent industry activity - Management emphasized a disciplined approach to M&A, focusing on high-quality, long-life assets that fit the company's cost structure [39][42]