Pan American Silver Reports Third Quarter 2026 Financial Results

Pan American Silver Corp. (PAAS) reported third-quarter 2026 financial results after the close on November 4, 2026. The company posted net earnings of $357 million, or $0.86 basic earnings per share, compared to $169 million and $0.45 in the same period of 2025. Adjusted earnings were $287 million, or $0.69 per share, excluding mostly non-operating fair-value gains and the gain from the sale of the Larder property.

Cash flow from operations totaled $377 million. Attributable cash flow from operations was $462 million, and attributable free cash flow was $377 million, inclusive of the 44% Juanicipio share. The company returned $300 million to shareholders in the third quarter and $701 million year-to-date through dividends and buybacks. The third-quarter dividend was $0.185 per share, payable on November 27, 2026.

Liquidity stood at $3.4 billion, comprising $1.9 billion in cash, cash equivalents, and short-term investments, $180 million of cash at Juanicipio, and $1.5 billion available under the revolver.

In terms of production, third-quarter attributable silver output was 6.07 million ounces, falling below the quarterly outlook primarily due to mine sequencing at Juanicipio and Cerro Moro. Third-quarter attributable gold production was 167,900 ounces, also below the quarterly outlook, mainly due to performance at Timmins and Shahuindo.

The Silver Segment’s all-in sustaining cost (AISC) for the third quarter was $11.21 per ounce, performing better than the quarterly outlook. The Gold Segment’s AISC was $2,281 per ounce, above the quarterly outlook due to lower production and higher development, labor, and consumable costs.

For the full year, Pan American Silver reiterated its silver production guidance of 25–27 million ounces but now expects results at the low end. This revision is driven mainly by unplanned downtime at Huaron in the fourth quarter to repair the primary grinding mill foundation and a higher gold-to-silver production ratio at Cerro Moro. Full-year Silver Segment AISC is also expected toward the low end of the $15.75–$18.25 per ounce range.

Full-year gold guidance was cut to 660–680,000 ounces from the original 700–750,000 ounces. Gold Segment AISC was raised to $2,000–$2,150 per ounce from $1,700–$1,850 per ounce, with the company citing factors at Jacobina, El Peñón, Shahuindo, and Timmins.

Project capital expenditure guidance for 2026 was reduced to $195–$210 million from $240–$255 million due to the timing of spending rather than structural cost savings. Sustaining capital guidance remained unchanged at $320–$340 million.

Pan American Silver Corp. (PAAS) revised its gold production guidance downward and raised all-in sustaining costs (AISC) for the third quarter, marking a material negative shift from previous expectations. Management had previously guided for gold production in the low end of 700–750 koz and the high end of $1,700–$1,850/oz for Q2 2026. The updated outlook cuts Q3 gold production to 660–680 koz and raises gold AISC to $2,000–$2,150/oz. At the midpoints, this represents 55 koz less gold, or 7.6%, and $300/oz higher AISC, or 16.9%, versus the original plan. Compared to the prior low-end and high-end framing, the variance is more pronounced: production is 20–40 koz below the prior low end, and AISC is $150–$300/oz above the prior high end.

The silver segment presented a mixed picture. Silver AISC of $11.21/oz in Q3 and $12.20/oz year-to-date remained well below the full-year range, with the full-year silver AISC guide still expected at the low end. However, full-year silver production is now expected at the low end of 25–27 moz, and Q3 silver production missed the quarterly outlook. The implied Q4 silver run-rate at the low end is approximately 6.0 moz, essentially flat with Q3, indicating no obvious Q4 silver recovery embedded in the guidance.

Strong free cash flow and a $300 million quarterly return provided positive metrics, though these were heavily assisted by metal prices. Realized silver prices reached $63.74/oz, up 63% from $39.08/oz in Q3 2025, while realized gold prices rose 23% to $4,267/oz from $3,479/oz. Consequently, the operating miss was partly masked by price performance. The market had already reduced the stock price from $73.10 on the Q2 release date to $57.30 on November 4, a decline of about 22%, leaving expectations weak ahead of the print. The new gold guide falling below the prior low end represents incremental negative information.

Pan American Silver Corp. (PAAS) is a leading Americas-focused silver and gold producer with mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. The company, which has been operating in the Americas for over three decades and is headquartered in Vancouver, also owns a 44% joint-venture interest in the Juanicipio mine in Mexico, a 100% interest in the suspended Escobal mine in Guatemala, and exploration and development projects.

Key producing assets include La Colorada, Juanicipio (44%), Cerro Moro, Huaron, San Vicente (95%), Jacobina, El Peñón, Timmins, Shahuindo, Minera Florida and Dolores. Development and optionality assets include La Colorada Skarn, Escobal, Navidad and the Timmins Camp project. The portfolio is silver-weighted but has meaningful gold and base-metal by-product exposure.