Pan American Silver Q4 2025 Earnings Report

Pan American Silver EPS Results

• Actual EPS: $1.11
• Consensus EPS: $0.90
• Beat/Miss: Beat by +$0.21
• One Year Ago EPS: $0.35

Pan American Silver Revenue Results

• Actual Revenue: $1.18 billion
• Expected Revenue: $1.11 billion
• Beat/Miss: Beat by +$66.74 million
• YoY Revenue Growth: +44.70%

Pan American Silver Announcement Details

• Quarter: Q4 2025
• Date: 2/18/2026
• Time: After Market Closes
• Conference Call Date: Thursday, February 19, 2026
• Conference Call Time: 11:00AM ET

Pan American Silver (NYSE:PAAS) is a mining company focused primarily on the exploration, development and production of silver and gold. Its operations also produce byproduct metals, including zinc, lead and copper, depending on the mine and ore deposit.

Founded in 1994 and headquartered in Vancouver, British Columbia, Pan American Silver operates mines and development projects across the Americas. The company’s geographic footprint has included Canada, Mexico, Peru, Bolivia, Argentina, Chile and Brazil, giving it exposure to several of the region’s major silver and gold mining jurisdictions.

Pan American expanded its portfolio through the acquisition of Yamana Gold’s Latin American assets in 2023. Its activities include mine operation, mineral exploration, project development and processing of ore into payable metals. Michael Steinmann serves as the company’s president and chief executive officer.

Pan American Silver Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record 2025 financials — net earnings of $452M in Q4 and $980M for the year, with record attributable free cash flow of $553M (Q4) and $1.2B (FY), cash/short‑term investments of ~$1.3B at year‑end, and a dividend increase to $0.18/share.
• Positive Sentiment: Juanicipio outperformance since the September acquisition materially lowered silver segment costs and boosted output, and a full year contribution from the asset is expected to lift 2026 silver production.
• Neutral Sentiment: 2026 guidance calls for higher attributable silver (25–27Moz) and gold (700–750koz) production but also higher all‑in sustaining costs ($15.75–18.25/oz silver; $1,700–1,850/oz gold) driven by price‑linked royalties, worker participation and smelting/refining costs.
• Positive Sentiment: La Colorada Skarn is being reworked into a phased development (initial ~10,000–15,000 tpd higher‑grade, lower‑capex stage) with an updated technical report / preliminary economic assessment due in Q2 2026 and partner talks ongoing.
• Negative Sentiment: Escobal remains suspended as the ILO 169 consultation continues with no timeline for restart, leaving significant in‑ground value exposed to regulatory/community risk.

Presentation

[Operator]

Thank you for standing by. This is the conference operator. Welcome to the Pan American Silver Fourth Quarter and Full Year End 2025 Results Conference Call. As a reminder, all participants are in a listen-only mode. The conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star and then one on your telephone keypad. Should you need assistance during the conference call, you may reach an operator by pressing star and zero. This time, I'd like to turn the conference call over to Siren Fisekci, Vice President, Investor Relations. Please go ahead, ma'am.

[Siren Fisekci, VP of Investor Relations at Pan American Silver Corp]

Thank you for joining us today for Pan American Silver's conference call and webcast to discuss our fourth quarter and full year 2025 results. This call includes forward-looking statements and information and references non-GAAP measures. Please see the cautionary statements in our MD&A news release and presentation slides for the period ended December 31st, 2025, all of which are available on our website. I'll now turn the call over to Michael Steinmann, Pan American's President and CEO.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

Good morning, everyone. I'm glad you could join us to discuss Pan American's 2025 results and our outlook for 2026. I'll start with the headline. We delivered record financial results across the board in Q4 and for the full year 2025, reflecting strong execution of our business and meaningful margin expansion from higher metal prices. Net earnings were a record $452 million in Q4, or $1.07 per basic share, which included $61 million of income from our investment in Juanicipio. For the full year, net earnings were a record $980 million, or $2.56 per basic share.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

On an adjusted basis, earnings were $470 million in Q4, or $1.11 per share, and for the full year, $959 million, or $2.54 per share. The record financial results reflect both the operating strength of our assets and the leverage we have to metal prices. Importantly, that translates into record attributable free cash flow of $553 million in Q4 and $1.2 billion for the full year. Cash and short-term investments increased by $408 million from Q3, totaling $1.3 billion at year-end, or $1.4 billion, including our 44% interest in cash at Juanicipio.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

To allow shareholders to participate directly in rising net cash levels, we declared a dividend of $0.18 per common share, our third dividend increase in a row. Turning to operating performance. Attributable silver production of 22.8 million ounces in 2025 exceeded the top end of the guidance range we have increased in November, while attributable gold production of 742,200 ounces was within guidance. Silver segment all-in sustaining costs, excluding NRV inventory adjustments, were $9.51 per ounce in Q4 and $13.88 per ounce for the full year. Silver all-in sustaining costs in 2025 were below the decreased guidance. A key contributor here is Juanicipio, which has been performing better than expected since we acquired the mine in September 2025 through the MAG Silver transaction.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

For the gold segment, all-in sustaining costs, excluding NRV inventory adjustments, were $1,699 per ounce in Q4 and $1,621 per ounce for the full year, which was within our guidance for 2025. It's worth noting that both silver and gold segment costs in Q4 were impacted by higher royalties and worker participation expenditures, reflecting the increase in metal prices. The silver segment is also affected by additional royalties at La Colorada, related to mining an adjacent concession, where we pay the concession owner a share of net profits earned on ores from their concession, which we treat as a royalty expense. Royalties are also impacted at San Vicente to reflect profit sharing with the state-owned mining company, COMIBOL.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

In 2025, we made good progress on our major projects, investing $94 million in line with our guidance to advance several major projects. Most notably at La Colorada, where the discovery of multiple high-grade silver zones and the subsequent expansion of mineral resources have led us to reevaluate the development plans for the Skarn project. We now see an opportunity to integrate the mine plans and infrastructure of the La Colorada vein mine with the Skarn project through a phased approach to development. The phased approach would allow us to focus on higher grade, lower tonnage, and less capital-intensive initial stage, with the option to target lower grade material in a future expansion.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

We are aiming to release an updated technical report for La Colorada in the second quarter of 2026 to include a preliminary economic assessment of the new development approach for the Skarn project. We're also continuing discussions with our potential partners on this project to include the proposed changes. At Jacobina, our investment in 2025 were directed at strengthening operational reliability and to advance long-term growth initiatives. We have provided more details on these initiatives in our MD&A, so I won't run through them item by item, but at high level, they include plant upgrades, tailings filtration, and filter stack and paste backfill plant. At Escobal, the Guatemalan Ministry of Energy and Mines continued meetings in Q4 2025 to advance the ILO 169 consultation process, and in December 2025, posted an update on progress for the October 2024 to November 2025 period.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

The ministry also conducted an inspection in Q4 and confirmed our activities are compliant with the court order and suspension of operations. As we have said previously, there is no timeline for completion of the consultation process and no date for restart. Turning to 2026 guidance. For silver, we are guiding attributable production of 25-27 million ounces, and silver segment all-in sustaining costs of $15.75-$18.25 per ounce. The year-over-year increase in silver production reflects, in part, the full year contribution from Juanicipio, along with mine sequencing into higher silver grade at Cerro Moro. For gold, we are guiding attributable production of 700,000-750,000 ounces and gold segment all-in sustaining costs of $1,700-$1,850 per ounce.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

We expect higher grades at Timmins, plus a full year of production from Juanicipio, offset by a lower contribution from Dolores as residual leaching declines and at El Peñon from the exhaustion of low-grade stockpiles and lower ore tons processed. Our all-in sustaining cost guidance for both the silver and gold segments reflects higher metal price assumptions, which flow through to royalties, worker participation payments, and increased smelting and refining costs due to price participation. Needless to say, increased metal prices far outweigh these additional royalties and provide superior return to our business, as seen with record earnings and cash flow in Q4. Sustaining capital is expected to be similar to 2025, with the addition of capital for Juanicipio.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

We also plan increased project capital to advance La Colorada Skarn and Jacobina and advancement, with part of the increase directed towards satellite deposits, reflecting positive drill results and continued work on exploration and preliminary engineering. Please refer to our MD&A for further detail on our 2026 outlook, including an operating outlook by quarter. As we look ahead, we see several meaningful catalysts for 2026. First, with metal prices currently well above Q4 and last year's average, we see potential for strong free cash flow and high returns of capital to shareholders, while also funding an expanded exploration program, internal growth projects, and further strengthening of our balance sheet. Second, we expect to release an updated La Colorada Skarn PEA in Q2 2026, which we believe will demonstrate higher risk-adjusted returns than the original PEA for the project.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

And third, the Jacobina optimization study is advancing well, and we look forward to sharing findings and opportunities as the engineering work progresses. Before I wrap up my prepared remarks, I would like to provide a few thoughts on the metal price environment. This is an exceptionally fortunate period for Pan American Silver and our investors, as the increase in metal price coincides with increased silver production, driving higher levels of free cash flow. Gold's strength has been driven by sustained central bank purchases and renewed investor interest in volatile geopolitical backdrop, U.S. policy uncertainty, and weakening confidence in fiat currencies, particularly the U.S. dollar. Those underlying drivers are similarly supportive for silver, in addition to supply-demand fundamentals, with the silver market expected to remain in a deficit for the sixth consecutive year in 2026.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

We are well positioned in this environment, remaining unhedged on both gold and silver and with a focus on delivering margin expansion. To close, 2025 was a record year for Pan American. Record revenue, earnings, and free cash flow, paired with strong operating execution and a stronger balance sheet. We are entering 2026 from a position of strength with a clear plan: execute safely and reliably, generate strong cash flow, advance our high-quality growth pipeline, and return capital to shareholders in a disciplined way. With that, I'd like to open the call for questions.

[Operator]

We will now begin the question-and-answer session. To join the question queue, you may press star and then one on your telephone keypads. You will hear a tone acknowledging your request. If you are using a speakerphone, we do ask you please pick up the handset before pressing the keys. To withdraw your question, you may press star and two. Again, that is star and then one to join the question queue. Our first question today comes from Cosmos Chiu from CIBC. Please go ahead with your question.

[Cosmos Chiu, Executive Director of Institutional Equity Research at CIBC Capital Markets]

Great. Thanks, Michael and team, and congrats on a very strong 2025, and looking forward to 2026. Maybe my first question is on Juanicipio. Michael, as you mentioned, very strong results so far. So, you know, it's been about half a year now, how would you describe your overall experience with the asset so far, and what has exceeded expectations? Is it throughput, or is it grade, or is it both? And is that sort of outperformance sustainable?

[Michael Steinmann, President and CEO at Pan American Silver Corp]

Yeah, good morning, Cosmos. Yeah, it's a bit less actually than half a year. I think we took over mid of September, somewhere around there, from MAG. Great experience so far, and as you can see in the results, I'm very, very happy what I see. I'm continuously very happy what I see, what Juanicipio is producing. Of course, when you look at long-term production profiles and the geology of this kind of deposits, and by the way, that's the same for like a deposit of La Colorada. When you look at that geology, there's a clear zonation with metals. So you go from precious metals to more base metals, lead, zinc, and deep down you would go into copper, really, really deep down. So that's kind of the geology on this kind of deposits.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

So over long term, that's changes you see, but exploration, of course, you know, good example is La Colorada again for that, or the neighboring mines of Juanicipio as well. With exploration, you keep finding new veins as well, which again, have higher precious metal content on the top and then go deeper down into base metal. So over long term, you should obviously expect that the silver grades will be reduced and the base metal grades increase. But that's, you know, you can look that up in the technical report for it. But as you said, last year, this year, it looks like a very strong silver producer for us and very low cost.

[Cosmos Chiu, Executive Director of Institutional Equity Research at CIBC Capital Markets]

Perfect. And then, good that you brought up La Colorada. I want to ask a question about La Colorada Skarn. As you mentioned, a new technical report is coming out sometime in Q2 2026. But ahead of it, I don't know how much you can share with us, Michael, but, you know, what kind of, in terms of that phased approach, you know, what kind of different tonnages are you sort of evaluating? What kind of size are you sort of evaluating at this point in time? What's kind of like the, you know, cost-benefit analysis are you considering right now? And, you know, what can we expect when that comes out?

[Michael Steinmann, President and CEO at Pan American Silver Corp]

Sure, Cosmos, and yeah, you need to be patient a little bit more. A few more months here. It's coming soon, and it's a very exciting project. And that phased approach really has changed the project quite a bit. If you recall, the original PE called for, you know, up to 50,000 tons a day, very, very large bulk minable ore body. Of course, that's still the case. It's still a very, very large, even bigger now, bulk minable ore body. But over the last two years, we have discovered a lot of high-grade material inside the Skarn and also between the Skarn and the surface in additional structures. And that's really what we're gonna mine in Phase 1. So it's gonna be quite a long time for Phase 1.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

It's gonna be way more than a decade. And, when you look at tonnage, I don't have to file the numbers yet, but you should probably expect somewhere in the 10,000-15,000 ton kind of range for phase one, but substantially higher grades than what we showed in the very large, bulk, you know, kind of cave method in the first PA. So it will be higher grade, less capital, and really a focus on silver production for quite a long time before it will go to a more bulk minable, much bigger tonnage and more base metal-rich production after that.

[Cosmos Chiu, Executive Director of Institutional Equity Research at CIBC Capital Markets]

Great. Certainly look forward to it, Michael. And then maybe one last question, you know, when I look at your 2026 guidance, I look at the asset level production compared to 2025 guidance. One asset that is expected to increase year-over-year is Cerro Moro. You know, I guess this is your only asset in Argentina, but Argentina looks to be getting better as a country for mining. So I guess my question is, you know, is this a country or an asset where you might be willing to commit more time and resources into it? Or, you know, how should we look at it?

[Michael Steinmann, President and CEO at Pan American Silver Corp]

Well, Cosmos, in general, I'm always happy to commit time and exploration to any of our assets. You know, we have been incredibly successful over the last 20 years in replacing reserves and adding additional value to our brownfield exploration programs, and La Colorada Skarn is the best example in the company's history with a, you know, potentially huge value creation through the drill bit. So I'm always happy to continue to drill, and explore in our assets, and of course, in the current metal price scenarios, that's even more so. So you've probably seen that we assigned quite an increase of capital to our exploration programs for 2026, and that includes, for sure, Cerro Moro as well.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

So as you say, lots of positive changes in Argentina and, you know, a place that we are active and working for many, many years. And, yeah, looking forward to more positive exploration results from Cerro Moro as the year goes on.

[Cosmos Chiu, Executive Director of Institutional Equity Research at CIBC Capital Markets]

Great. Thanks again, Michael. Those are all the questions I have. Thank you.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

Thanks, Cosmos.

[Operator]

Our next question comes from Francesco Costanzo from Scotiabank. Please go ahead with your question.

[Francesco Costanzo, Associate Director of Equity Research at Scotiabank]

Hi, Michael. Thanks a lot for taking my question. Just wanted to ask a follow-up on one of Cosmos' questions, actually, just on like La Colorada Skarn. Have discussions on a potential partner progressed in the last quarter? And is there any update you can provide us on what the economic terms might look like, given the new phased approach or timing of when we might see a deal signed?

[Michael Steinmann, President and CEO at Pan American Silver Corp]

Yeah, look, the discussions have progressed, but as you can imagine, with the change we made here on this phased approach compared to the single, discussions are in full swing, so I don't really want to share right now, details yet on it. But, you know, we included that change on the approach and are in full discussions.

[Francesco Costanzo, Associate Director of Equity Research at Scotiabank]

Okay, fair enough. Thank you. And then, just switching gears slightly. With record silver, silver prices, there's obviously a lot of value sitting in the ground at Escobal. So just wondering if you're able to provide us any insights on your view of how the consultation process has progressed in recent months, and whether you feel that things are beginning to re-accelerate compared to this time last year?

[Michael Steinmann, President and CEO at Pan American Silver Corp]

Well, in general, of course, and we see it worldwide, right, that there is much stronger emphasis on mining and mining projects. High metal prices, of course, help with that. A lot of declaration of critical minerals across the globe, and countries that try to secure future metal production for their own use. So, that will accelerate from now on, I'm sure about that. And, you know, we'll bring additional projects into production across the globe. I might ask Sean giving us some more details on the Escobal, especially.

[Sean McAleer, SVP of Strategic Initiatives and Environment at Pan American Silver Corp]

Yeah, we've been meeting with the Ministry of Energy and Mines through Q4 and a few times earlier this year, and we're standing by for the next updates for meetings and schedules for activities. So there's not a change in the activity that we've seen in the past, but you know, certainly the engagement continues. And I think the report that was published by the Ministry of Energy and Mines at the end of the year is encouraging, that they are providing some information from the government on their commitment to the process and the status of the process and the fact that it's ongoing. So we're looking forward to meetings here in the coming months, and progressing with the process.

[Francesco Costanzo, Associate Director of Equity Research at Scotiabank]

Yeah, that's great. Thanks a lot for taking my questions.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

Thank you.

[Operator]

Once again, if you would like to ask a question, please press star and then one. Our next question comes from Don DeMarco from National Bank. Please go ahead with your question.

[Don DeMarco, Director of Equity Research Analyst at National Bank]

Thank you, operator, and good morning, Michael and team. Just a couple of maybe financial bookkeeping questions. First off, how often are the Juanicipio dividends paid? I mean, I see that there was a line item on the Q4 financials, full year financials, but not on the Q3 financials. And I remember back in the MAG Silver days, where there were some agreements at the JV level just to pay out those dividends once a year, although there were some discussions to maybe change that more quarterly. But I'm just wondering what the current arrangement is at this point.

[Ignacio Couturier, CFO at Pan American Silver Corp]

Hi, Don, it's Ignacio here speaking. The dividends, well, the payments from Juanicipio come in the form of dividends, and there was a payment in Q4. Pan American's share of that payment was around $44 million. Right now, the dividends are being paid out of tax paid retained earnings, and we're currently waiting for Juanicipio to pay its taxes and back, and book its tax return, which will happen sometime in Q1. So soon after that, we're expecting another dividend from Juanicipio, which would be put higher than the one we received in Q4. So right now, it's just being driven by just the regular cycle of the financial statements and the tax returns in Mexico.

[Don DeMarco, Director of Equity Research Analyst at National Bank]

Okay. Got it. Thank you. And, Ignacio, also, looking at you've got the senior notes maturing 2027, $278 million at a 4.6% coupon. You know, obviously with your free cash flow and, you know, cash balance increasing, would this be a consideration to potentially repay early? I mean, obviously the August 2031s have a very favorable interest rate, there'd be no motivation there, but wondering about these 2027s.

[Ignacio Couturier, CFO at Pan American Silver Corp]

Yes, Don, that's something that we look at from time to time. They are... As you've mentioned, they are coming up in 2027. The bonds aren't very liquid, we know that. So if an opportunity came where a bondholder was interested in potentially selling, we would consider it for sure, but this comes down to bigger capital allocation questions which are coming up this year. So look, if the opportunity came up to buy some of those bonds back to 2027s, we would consider it for sure. But as I said, the bonds have not been trading very, with a lot of liquidity in the market.

[Don DeMarco, Director of Equity Research Analyst at National Bank]

Okay. Okay, great. Well, thanks again for taking my question. That's all for me.

[Operator]

With that, we'll be concluding today's question-and-answer session. I'd like to turn the floor back over to Michael Steinmann for any closing remarks.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

Thanks, operator. Strong production and cost control in Q4, in combination with high metal prices, resulted in record financial results across the board, as you have seen in the press release. And I'm really proud what we have achieved in 2026, including the very swift and quick integration of the 44% of the low-cost Juanicipio mine. So please keep in mind that the average metal prices in Q4 were only around $58 for silver, and I think a bit more than $4,100 for gold. So we have seen substantially higher metal prices in the new year so far, and, additionally, we will be increasing our silver production again by about 14%, largely driven again by the low-cost production of Juanicipio.

[Michael Steinmann, President and CEO at Pan American Silver Corp]

To top that, we'll release the updated PEA on La Colorada Skarn in Q2, and further information on the Jacobina optimization as the year advances. So you can imagine, I'm really looking forward to 2026, and I'm looking forward to giving an update on Q4 in our May call. Until then, have a good time. Thanks, everyone, for calling in.

[Operator]

This brings to a close today's conference call. You may now disconnect your line. We thank you for participating. Have a pleasant day.

Participants

Executives

• Ignacio Couturier, CFO
• Michael Steinmann, President and CEO
• Sean McAleer, SVP of Strategic Initiatives and Environment
• Siren Fisekci, VP of Investor Relations

Analysts

• Cosmos Chiu, Executive Director of Institutional Equity Research at CIBC Capital Markets
• Don DeMarco, Director of Equity Research Analyst at National Bank
• Francesco Costanzo, Associate Director of Equity Research at Scotiabank