Pan American Silver (PA2) AI Stock Analysis

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Pan American Silver

(BX Swiss:PA2)

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Positive Factors

Profitability and Revenue GrowthMaterial revenue expansion and sharply higher margins indicate a substantially stronger operating profile than in 2022–2023. If performance remains supported by production and metal prices, the improved earnings base should provide greater capacity to fund mine investment, exploration, and shareholder returns.

Negative Factors

Earnings CyclicalityThe sharp movement from losses to exceptionally high margins shows that earnings remain sensitive to metal prices, grades, production volumes, and operating conditions. This cyclicality can make cash generation and returns less predictable even when the balance sheet remains strong.

Pan American Silver (PA2) vs. iShares MSCI Switzerland ETF (EWL)

Market Cap: CHF 16.28B
Dividend Yield: 1.66%
Average Volume (3M): 100
Price to Earnings (P/E): 10.5
Beta (1Y): 0.27
Revenue Growth: 28.46%
EPS Growth: 102.75%
Country: Switzerland
Employees: 9,348
Sector: General
Sector Strength: 55
Industry: Gold

Pan American Silver Business Overview & Revenue Model

Company Description

Pan American Silver Corp., together with its affiliates, oversees the full spectrum of mining activities, from initial exploration and development to the extraction, processing, and refining of silver, gold, zinc, lead, and copper, as well as the eve...

Pan American Silver Earnings Call Summary

Earnings Call Date:Nov 04, 2026(Q3-2026)|% Change Since:0.47%|Next Earnings Date:Feb 24, 2027

Earnings Call SentimentPositive

The call was predominantly positive, supported by $377 million of quarterly attributable free cash flow, $1.9 billion of cash and equivalents, $3.4 billion of liquidity, substantial shareholder returns, silver costs below quarterly expectations, and progress on La Colorada, Timmins and other growth initiatives. However, the company faces meaningful operational challenges, including lower gold production and higher gold costs, Jacobina remediation requirements, Huaron downtime, weather disruptions, El Penon grade issues and the lack of a timeline for restarting Escobal. Highlights significantly outweighed the lowlights.

Positive Updates

Strong Free Cash Flow and Shareholder Returns

Pan American generated $377 million of attributable free cash flow and $462 million of cash flow from operations in the third quarter, including its share of cash flow generated at Juanicipio. Over the first nine months of 2026, attributable free cash flow reached $1.2 billion, while $701 million was returned to shareholders, including approximately 9.6 million shares repurchased and canceled and $228 million in dividends.

Negative Updates

Third-Quarter Silver Production Below Outlook

Attributable silver production was 6.1 million ounces in the third quarter, below the quarterly outlook range. The shortfall was attributed to Juanicipio and Cerro Moro: Juanicipio moved into lower silver-grade ores, while Cerro Moro was affected by mine sequencing into lower silver-grade and higher gold-grade ores and heavy-than-normal rainfall that made oversaturated ore more difficult to process.

Company Guidance

Pan American’s full year silver production outlook remains at 25 million to 27 million ounces with production expected at the low end of the range, and full year silver segment all-in sustaining costs are expected to come in towards the lower end of the 2026 guidance range of $15.75 to $18.25 per silver ounce; full year gold production is now expected to be between 660,000 to 680,000 ounces, with full year gold segment all-in sustaining cost guidance now $2,000 to $2,150 per ounce. Huaron is expected to be fully operational again by the middle of this month after about 40 days of total downtime, while project capital is now estimated at $195 million to $210 million for 2026. Jacobina’s impact will definitely drag into the early part of ’27, with an impact at the beginning of the year, and Escobal could restart in about 6 months’ time, with $80 million to $100 million in working capital and about a full year to return to full production levels of around 21 million ounces.

Pan American Silver Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

CH:PA2 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:AYA	84Outperform	CAD 5.15B	31.39	25.26%	―	264.86%	―
TSE:DSV	75Outperform	CAD 9.05B	21.64	40.15%	―	231.76%	993.55%
TSE:FVI	74Outperform	CAD 4.00B	9.45	17.27%	―	12.74%	26.74%
TSE:SVM	69Neutral	CAD 2.92B	45.24	5.10%	0.27%	48.40%	87.17%
TSE:AG	66Neutral	CAD 10.47B	18.48	13.43%	0.30%	79.90%	550.97%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

* General Sector Average

Performance Comparison

CH:PA2 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CH:PA2	Pan American Silver	33.01	21.99	199.52%
TSE:AG	First Majestic Silver	21.06	3.96	23.17%
TSE:FVI	Fortuna Mining Corp	13.49	1.70	14.42%
TSE:SVM	Silvercorp Metals	13.12	3.52	36.62%
TSE:AYA	Aya Gold & Silver Inc.	34.89	19.47	126.26%
TSE:DSV	Discovery Silver Corp	10.63	3.91	58.18%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Pan American Silver AI Stock Analysis