Core Insights - Gold prices have reached a new all-time high, surpassing $3,500 per ounce, which has led to a significant increase in pre-market trading for gold stocks in the U.S. [1] - Silver prices have also surged, reaching $40.86 per ounce, marking a fourteen-year high [1] - Concerns regarding the overall strength of U.S. institutions, in addition to the Federal Reserve's actions, are driving increased demand for gold as a safe-haven asset [1] Company Performance - Harmony Gold (HIMY) saw a pre-market increase of over 7%, with a latest price of $13.280 and a daily increase of 5.31% [1] - Coeur Mining (CDE) experienced a pre-market rise of 4.5%, with a latest price of $13.150 and a daily increase of 4.70% [1] - New Gold (NGD) and DRDGOLD both rose over 3% in pre-market trading, with New Gold's latest price at $5.900 and a daily increase of 3.87% [1] - Other notable performers include Galiano Gold (GAU) with a pre-market increase of 3.69% and Equinox Gold (EQX) with a 3.20% rise [1]

Core Insights - Pan American Silver Corp. (PAAS) has received final regulatory approval for its acquisition of MAG Silver Corp. (MAG), with the transaction expected to close around September 4, 2025, enhancing PAAS's position in the silver market [1][9] - The acquisition includes a 44% stake in the Juanicipio project, recognized as the largest, highest-grade, and lowest-cost primary silver mine globally [2][9] - Juanicipio is projected to produce 14.7-16.7 million ounces of silver in 2025, increasing PAAS's total output to 26.5-28.3 million ounces, significantly surpassing competitors [3][9] Production and Cost Efficiency - The Juanicipio project is anticipated to lower PAAS's all-in sustaining costs (AISC) for silver, with current AISC reported at $19.69 per ounce and a guidance of $16.25-$18.25 for 2025 [4] - The project is expected to add 58 million ounces to PAAS's proven and probable silver reserves, which were 468 million ounces as of June 30, 2024 [5] Financial Performance - PAAS shares have increased by 63.8% year-to-date, outperforming the industry growth of 56.7% and the Basic Materials sector's rise of 17.7% [8] - The consensus estimate for PAAS's earnings in 2025 is $1.98 per share, reflecting a year-over-year increase of 150.6%, with a further increase projected for 2026 [13]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - The current marginal growth pattern of global silver shows "limited primary growth + increased by - product output + regional disturbances." The short - term supply elasticity is weak, and the price is more sensitive to demand and financial variables [42]. - Recent dovish signals from Fed officials strengthen the downward expectation of the forward real - interest - rate curve. The financial attribute premium of silver is supported. In the benchmark scenario, the view of "declining gold - silver ratio, silver outperforming gold, and price rising with high volatility" is maintained [43]. 3. Summary according to the Table of Contents 3.1 Recent Market Background and Summary of Major Silver Mining Enterprises - Major silver producers generally have the characteristics of "tightening primary ore increment and relying on by - products for silver increment." Pure silver ore increment is limited, and global new supply more depends on by - product recovery from copper/zinc projects. The supply side continues to feature "low elasticity + regional disturbances" [2]. 3.2 Hedging Strategy Suggestions - At the macro level, the co - existence of global growth slowdown and the bottom - up repair of the manufacturing industry, along with the rising market expectation of the Fed's moderate easing within the year and the high - level slowdown of real interest rates, support the main line of silver's "financial elasticity + stable industrial demand" [3]. 3.3 Global Major Silver Producers' Situation 3.3.1 Fresnillo plc - In 2024, its silver equity production was 56.31 million ounces, basically flat with 2023. In 2025 H1, the silver equity production was 24.9 million ounces, a year - on - year decline of about 8.30%. The company maintains the annual production guidance of 49 - 56 million ounces [8][9]. 3.3.2 KGHM Polska Miedz S.A. - In 2024, its silver production was 1341 tons, a year - on - year decline of 6%. In 2025 H1, it was about 657.2 tons, a year - on - year decline of 3%. The Sierra Gorda mine in Chile is expected to expand in mid - 2025, which may increase copper and silver production [14][15]. 3.3.3 Newmont Corporation - In 2024, its silver production was about 33 million ounces, a year - on - year increase of 83%. In 2025 H1, it was about 14 million ounces, a year - on - year decline of 17.6%. The 2025 annual production guidance is about 28 million ounces, a year - on - year decline of 15.21% compared with 2024 [21]. 3.3.4 Pan American Silver Corp. - In 2024, its silver production was 21.061 million ounces, a year - on - year increase of 3.05%. In 2025 H1, it was 10.097 million ounces, a year - on - year increase of 5.44%. The main increments come from La Colorada and El Peñon [23][24]. 3.3.5 Southern Copper Corporation - In 2024, its silver production was 20.983 million ounces, a year - on - year increase of 14%. In 2025 H1, it was 11.43 million ounces, a year - on - year increase of 14.6%. The 2025 annual guidance is 23 million ounces, a 9% increase compared with 2024 [30][31]. 3.3.6 Glencore plc - In 2024, its silver production was 19.286 million ounces, a year - on - year decline of 4%. In 2025 H1, it was 9.097 million ounces, basically flat year - on - year. The decline in Collahuasi is offset by the increase in Antamina, Kazzinc, and Kidd [33][34]. 3.4 Gold - Silver Ratio Review - Since 1980, the gold - silver ratio has generally shown a long - cycle pattern of "high - level fluctuation - periodic convergence - expansion again." The ratio converges when "loose policy + industrial recovery + re - inflation" resonate, and expands in the stage of "tightening/stagflation + declining risk appetite" [39]. 3.5 Summary and Hedging Suggestions - The short - term supply elasticity of silver is weak. If the Fed continues to compress the real - interest - rate spread and the economy has a "moderate slowdown," silver will benefit from the dual - drive of "metal financial attribute + industrial buffer" [42][43].

Core Insights - Pan American Silver (PAAS) and Hecla Mining (HL) are prominent players in the mining sector, focusing on silver and other metals like gold, lead, and zinc [1][3]. Silver and Gold Market Overview - Silver prices have increased by 35% this year, currently at $38.80 per ounce, the highest since 2011, driven by expectations of U.S. Federal Reserve policy easing [2] - Gold prices have risen by 28.5% year-to-date, supported by safe-haven demand and geopolitical tensions [2] - Strong industrial demand for silver is anticipated, particularly from the solar energy sector and electronic applications [2] - The Silver Institute forecasts a continued deficit in the silver market through 2025, which is expected to support higher prices [2] - The outlook for gold remains robust due to geopolitical tensions and central bank purchases [2] Pan American Silver (PAAS) Highlights - Pan American Silver operates 12 mines across the Americas and is a leading producer of silver and gold [4] - As of June 30, 2024, PAAS's proven and probable mineral reserves include 468 million ounces of silver and 6.9 million ounces of gold, with an expected increase of 58 million ounces from the acquisition of MAG Silver Corp. for $2.1 billion [5][6] - The company reported an 18% year-over-year revenue increase to $812 million in Q2, with adjusted earnings per share rising 291% to 43 cents [7] - Record cash flow from operations reached $293.4 million, with total liquidity of $1.859 billion and a 20% dividend increase to 12 cents per share [8] - The all-in sustaining costs (AISC) for silver were $19.69 per ounce in Q2, with expectations for 2025 AISC to improve to $16.25 - $18.25 per ounce [9] - PAAS produced 5.1 million ounces of silver and 178.7 thousand ounces of gold in Q2, on track to meet 2025 guidance of 20-21 million ounces of silver and 735,000-800,000 ounces of gold [10] Hecla Mining (HL) Highlights - Hecla Mining produces over 45% of the silver in the U.S. and operates mines in Alaska, Idaho, Quebec, and Yukon [14] - Proven and probable silver reserves were 240 million ounces as of the end of 2024, with gold reserves at 2.2 million ounces [15] - The company reported record revenues of $304 million in Q2, a 24% increase year-over-year, with earnings up 300% to eight cents per share [15] - Hecla produced 4.52 million ounces of silver and 45,895 ounces of gold in Q2, projecting silver production of 15.5-17 million ounces for 2025 [16] - AISC per ounce of silver was $5.19 in Q2, with expectations for 2025 AISC at $11.00-$13.00 [17] Comparative Analysis - In the past three months, PAAS stock gained 35.2%, while HL stock surged 54.7% [22] - PAAS trades at a forward price-to-sales (P/S) multiple of 3.38X, below the industry average of 4.28X, while HL trades at 4.48X [23] - Earnings estimates for PAAS indicate a 150.6% growth for 2025, while HL's estimates show a 145.5% improvement [19][20] Investment Outlook - Both companies are well-positioned to benefit from rising silver and gold prices, with PAAS's acquisition of MAG Silver enhancing its growth outlook despite uncertainties surrounding the Escobal mine [25] - Hecla Mining's strong fundamentals and low-cost operations make it a compelling investment choice, currently rated as a Zacks Rank 2 (Buy), while PAAS holds a Zacks Rank 3 (Hold) [26]

Core Viewpoint - Pan American Silver Corp. has received all necessary regulatory approvals for the acquisition of MAG Silver Corp., with the transaction expected to be completed around September 4, 2025 [1][2][7]. Company Overview - Pan American Silver Corp. is a leading producer of silver and gold in the Americas, operating mines in multiple countries including Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. The company has a strong reputation for sustainability and financial management [3]. - MAG Silver Corp. is a growth-oriented Canadian mining and exploration company focused on high-grade precious metals projects, including a significant joint venture in the Juanicipio Mine in Mexico [4]. Transaction Details - The acquisition involves a total consideration of $500 million in cash and additional shares of Pan American for MAG shareholders, with an election deadline for shareholders set for August 27, 2025 [2][6]. - Shareholders can choose to receive either $20.54 in cash for each MAG Share or a combination of cash and Pan American shares [6].

Core Insights - Pan American Silver Corp. (PAAS) is close to finalizing its $2.1 billion acquisition of MAG Silver Corp. (MAG), with all major approvals received except for Mexico's Federal Economic Competition Commission (COFECE) [1][8] - The acquisition focuses on MAG's 44% stake in the Juanicipio project, recognized as the world's largest-scale, highest-grade, and lowest-cost primary silver mine [2][8] - Juanicipio is projected to produce 14.7-16.7 million ounces of silver in 2025, contributing approximately 6.5-7.3 million ounces to PAAS's total output [3][8] Production and Cost Impact - The Juanicipio project is expected to significantly reduce PAAS's all-in sustaining costs (AISC) for silver, with current AISC reported at $19.69 per ounce and a guidance of $16.25-$18.25 for 2025 [4][8] - The acquisition will add 58 million ounces to PAAS's proven and probable silver reserves, which were 468 million ounces as of June 30, 2024, and is expected to generate $98 million in free cash flow this year, growing by 23% over the next three years [5] Market Activity and Performance - Recent consolidation in the silver mining sector includes First Majestic Silver's acquisition of Gatos Silver and Coeur Mining's acquisition of Silvercrest, enhancing their respective portfolios [6] - Year-to-date, PAAS shares have increased by 58.5%, outperforming the industry growth of 48.6% and the Basic Materials sector's rise of 14.3% [7] Valuation and Earnings Estimates - PAAS is currently trading at a forward 12-month price-to-earnings multiple of 14.35X, below the industry average of 16.95X [10] - The consensus estimate for PAAS's 2025 earnings is $1.98 per share, reflecting a year-over-year increase of 150.6%, with a further increase to $2.38 expected in 2026 [11]

Core Viewpoint - The surge in precious metal prices is leading to increased profits for mining companies, resulting in higher dividends for investors Group 1: Pan American Silver (PAAS) - Pan American Silver has increased its quarterly dividend by 20% due to strong silver gains, with a current dividend yield of 1.51% and an annual dividend of $0.48 [1][3] - In Q2 2025, the company produced 5.1 million ounces of silver and approximately 178,000 ounces of gold, achieving record basic earnings per share (EPS) of 52 cents and free cash flow of $33 million [2][3] - The total return for Pan American Silver shares in Q2 2025 was over 58%, with silver prices rising by 32% and gold prices by 27% [2] Group 2: AngloGold Ashanti (AU) - AngloGold Ashanti has announced a 16% increase in its interim dividend to $0.80 per share, supported by a 149% increase in free cash flow [5][7] - The company produced 804,000 ounces of gold in Q2 2025, a 21% increase from the previous year, with the average gold price rising by 41% to $3,287 [6][7] - The current dividend yield for AngloGold Ashanti is approximately 2.2%, with a payout ratio of 50% of free cash flow [8] Group 3: Triple Flag Precious Metals (TFPM) - Triple Flag Precious Metals has increased its annual dividend by 5% to $0.23, with a current dividend yield of 0.85% [9][10] - The company reported a record operating cash flow of 38 cents per share, a 50% increase, and achieved 57,000 gold equivalent ounces (GEOs) in the first half of the year [10][11] - The total return for Triple Flag Precious Metals in 2025 was 75% [11]

Core Insights - Pan American Silver Corp. (PAAS) achieved a record free cash flow of $233 million in Q2 2025, a 128% increase year-over-year, and ended the quarter with a cash balance of $1.1 billion, indicating strong financial health [1][7] - The company returned approximately $103.5 million to shareholders through share repurchases in H1 2025 and announced a 20% increase in its quarterly dividend to $0.12 per share [2] - PAAS plans to invest $500 million of its cash reserves to acquire MAG Silver Corp, which holds a 44% stake in the Juanicipio project, expected to boost PAAS' silver production by 35% annually and reduce all-in sustaining costs [3][7] Financial Performance - Year-to-date, PAAS shares have increased by 57%, outperforming the industry growth of 51%, while the Basic Materials sector rose by 9% and the S&P 500 by 2.9% [5] - The consensus estimate for PAAS earnings in 2025 is $1.98 per share, reflecting a 150.6% year-over-year increase, with a 2026 estimate of $2.38, indicating a 20.2% rise [8] Valuation Metrics - PAAS is currently trading at a forward 12-month price-to-earnings multiple of 14.24X, below the industry average of 17.34X [7]

Industry Overview - The Zacks Mining - Silver industry is experiencing promising prospects due to rising silver prices, with global industrial demand projected at approximately 1.15 billion ounces, while supply is expected to be lower, indicating a fifth consecutive year of deficit [1][4] - The industry comprises companies engaged in the exploration, development, and production of silver, with only 20% of silver coming from mining activities where silver is the primary revenue source [3] Demand and Supply Dynamics - Total silver demand is expected to dip by 1% to 1.148 billion ounces in 2025, with industrial use projected at around 677.4 million ounces, accounting for roughly 59% of total demand, driven by the solar energy industry and rising usage in electrical applications [4][5] - Silver prices increased by approximately 22% in 2024 and 33.7% in 2025, supported by economic uncertainties and solid demand amid tight supply [5] Cost Management and Operational Efficiency - Industry players are facing rising production costs, particularly in energy, wages, and materials, leading to a focus on improving sales volumes and cost-effectiveness through technological innovations [6] - Companies are investing in R&D to enhance operational efficiency and sustain growth while managing costs [6] Stock Performance and Valuation - The Mining-Silver Industry has outperformed the Basic Material sector and the Zacks S&P 500 composite over the past year, with a collective gain of 42% compared to the sector's 2.4% rise [10] - The industry is currently trading at a trailing 12-month EV/EBITDA ratio of 11.79X, lower than the S&P 500's 17.66X and the Basic Material sector's 12.73X [12] Company Highlights - **Pan American Silver (PAAS)**: Reported record cash flow of $233 million and a 291% year-over-year increase in earnings per share, with a projected output of 20-21 million ounces of silver in 2025 [16][17] - **Vizsla Silver (VZLA)**: Advancing its flagship Panuco silver-gold project, targeting first production in the second half of 2027, with a recent 43% increase in estimated mineral resources [22][23] - **Avino Silver Mines (ASM)**: Produced 645,602 silver equivalent ounces in Q2 2025, up 5% year-over-year, and remains on track to achieve a production range of 2.5 - 2.8 million silver equivalent ounces in 2025 [25][26] - **Hecla Mining (HL)**: Reported record revenues of $304 million and a 10% increase in silver production, with a projected silver equivalent output of 35.5 - 39.0 million ounces for 2025 [29][30]

Core Insights - Pan American Silver (PAAS) reported strong second-quarter 2025 results, with a 10% stock gain following the announcement, and achieved record free cash flow of $233 million, resulting in a cash balance of $1.1 billion [1][10]. Financial Performance - Q2 revenues increased by 18% year-over-year to $811.9 million, driven by higher gold and silver prices, despite an $80.5 million decrease in metal quantities sold [9]. - Mine operating earnings surged 134% to $273 million, with adjusted earnings per share rising 291% to 43 cents [10]. - The company raised its dividend by 20% to 12 cents per share [10]. Year-to-Date Performance - Year-to-date, PAAS shares have increased by 58.3%, outperforming the industry growth of 52.1% and the Basic Materials sector's rise of 14.5% [2][4]. Production and Guidance - In Q2, PAAS produced 5.1 million ounces of silver and 178.7 thousand ounces of gold, remaining on track to meet its 2025 guidance of 20-21 million ounces of silver and 735,000-800,000 ounces of gold [13]. Strategic Acquisitions - The acquisition of MAG Silver for $2.1 billion is expected to enhance PAAS's production capabilities, particularly through the Juanicipio mine, which is projected to increase silver output by approximately 35% [14][15]. Market Sentiment and Valuation - PAAS stock is trading above its 50-day and 200-day moving averages, indicating positive market sentiment and confidence in the company's financial health [7]. - The stock is currently valued at a forward price-to-earnings multiple of 14.44X, which is below the industry average of 17.49X [23]. Earnings Estimates - The Zacks Consensus Estimate for PAAS's earnings has increased by 22.98% and 25.93% for 2025 and 2026, respectively, with projected earnings of $1.98 per share for 2025, reflecting a 150.6% year-over-year increase [16][18]. Long-Term Growth Potential - PAAS is positioned for long-term growth with a diversified asset base and ongoing investments in production optimization and environmental performance improvements [19][20][21].