PAAS — Pan American Silver Corp.

Pan American Silver (PAAS) Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics

• Attributable Revenue: Record of $884.4 million.
• Net Earnings: $169.2 million, or $0.45 per share, impacted by a $21.7 million loss from the sale of a subsidiary.
• Adjusted Earnings: $181 million, or $0.48 per share.
• Attributable Free Cash Flow: Record of $251.7 million.
• Cash Flow from Operations: Record of $323.6 million.
• Cash and Short-term Investments: $910.8 million, plus $85.8 million from Juanicipio.
• Total Available Liquidity: $1.7 billion.
• Dividend: Increased to $0.14 per share for Q3 2025.

2. Strategic Updates and Business Highlights

• Acquisition of MAG Silver: Completed on September 4, contributing positively to costs and margins with only a month of operations included in Q3 results.
• Juanicipio Mine: Attributable silver production of 580,000 ounces from Juanicipio, highlighting its potential to lower costs and improve margins.
• Production Performance: Attributable silver production totaled 5.5 million ounces; gold production was 183,500 ounces.
• Cost Metrics: Silver segment cash costs were $10.41 per ounce, and all-in sustaining costs were $15.43 per ounce, both lower than Q2 2025.
• Operational Developments: Positive exploration results at La Colorada, with significant new high-grade silver resources identified.

3. Forward Guidance and Outlook

• Silver Production Guidance: Increased to 22 million to 22.5 million ounces for 2025.
• Silver Segment All-in Sustaining Costs: Lowered to $14.50 to $16 per ounce.
• Gold Production Guidance: Maintained despite challenges in Q3; confidence in achieving targets for Q4.
• Capital Investments: $35.3 million invested in capital projects, focusing on La Colorada and Jacobina.

4. Challenges and Points of Concern

• Operational Challenges: Technical issues at Cerro Moro, El Peñon, Timmins, and Minera Florida impacted production and costs, with some challenges expected to persist into Q4.
• Dilution Issues: Increased dilution at Huaron due to a strategy focused on developing high-grade stopes, leading to lower grades in the short term.
• Market Conditions: Fluctuating base metal prices and potential economic uncertainties affecting future revenue streams.

5. Notable Q&A Insights

• Juanicipio Guidance: The production guidance for Juanicipio is expected to remain similar to MAG’s previous estimates, with ongoing operational involvement from PAAS.
• Cerro Moro and El Peñon Issues: Management expressed confidence in resolving challenges and maintaining Q4 guidance despite Q3 setbacks.
• La Colorada Skarn Development: A phased approach is being adopted, with a PEA expected in Q2 2026. Partnership discussions are advanced, with potential for phased involvement.
• Dividend Policy: The recent increase in dividends was a discretionary decision based on strong cash flow, separate from share repurchase activities.

Overall, Pan American Silver reported a strong Q3 2025, driven by record revenues and cash flow, while navigating operational challenges and strategic transitions following the MAG Silver acquisition. The company remains optimistic about future production and cost efficiencies, particularly with the integration of Juanicipio.