PAAS Strengthens Portfolio With MAG Silver Buyout Completion

Core Viewpoint - Pan American Silver Corp. has completed the acquisition of MAG Silver Corp., enhancing its position as a leading global silver producer and significantly strengthening its silver reserve base [1][8]. Group 1: Acquisition Details - The acquisition agreement was signed on May 11, 2025, granting Pan American a 44% stake in the Juanicipio project, a high-grade silver mine in Zacatecas, which is projected to produce 14.7-16.7 million ounces of silver in 2025 [2][8]. - The transaction also includes full ownership of the Larder exploration project and an earn-in interest in the Deer Trail exploration project, which will enhance production, reserves, and cash flow for Pan American [3][8]. - MAG Silver shareholders received $500 million in cash and 60.2 million shares of Pan American, resulting in former MAG shareholders holding 14.3% of Pan American's outstanding shares on a fully diluted basis post-acquisition [4][8]. Group 2: Financial Performance - In Q2 2025, Pan American reported adjusted earnings of 43 cents, surpassing the Zacks Consensus Estimate of 40 cents, with revenues increasing 18% year over year to $812 million, exceeding the estimate of $782 million [5]. - Silver production for the second quarter reached 5 million ounces, consistent with the same period last year, while gold production was 182.2 thousand ounces, down from 222.9 thousand ounces in the previous year [6]. Group 3: Stock Performance - Over the past year, Pan American Silver's shares have increased by 83.4%, outperforming the industry's growth of 72.1% [7].