PAAS — Pan American Silver Corp.

Summary of Pan American Silver (PAAS) Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 2025 Net Earnings: $452 million ($1.07 per share), including $61 million from Juanicipio investment.
• Full Year 2025 Net Earnings: $980 million ($2.56 per share).
• Adjusted Earnings: $470 million in Q4 ($1.11 per share); $959 million for the full year ($2.54 per share).
• Free Cash Flow: Record $553 million in Q4; $1.2 billion for the full year.
• Cash and Short-term Investments: Increased by $408 million from Q3 to $1.3 billion at year-end ($1.4 billion including Juanicipio cash).
• Dividend Declared: $0.18 per common share, marking the third consecutive increase.

2. Strategic Updates and Business Highlights

• Attributable Silver Production: 22.8 million ounces in 2025, exceeding guidance; Gold production at 742,200 ounces within guidance.
• All-in Sustaining Costs: Silver at $9.51/oz in Q4 and $13.88/oz for the year; Gold at $1,699/oz in Q4 and $1,621/oz for the year.
• Juanicipio Performance: Exceeded expectations in throughput and grade; anticipated to be a strong low-cost producer.
• La Colorada Skarn Project: New phased development approach to focus on higher-grade material; updated technical report expected in Q2 2026.
• Jacobina Investments: Focus on operational reliability and growth initiatives.
• Escobal Mine: Ongoing consultations with the Guatemalan Ministry of Energy and Mines; no timeline for restart but compliance confirmed.

3. Forward Guidance and Outlook

• 2026 Silver Production Guidance: 25 million to 27 million ounces; All-in sustaining costs of $15.75 to $18.25/oz.
• 2026 Gold Production Guidance: 700,000 to 750,000 ounces; All-in sustaining costs of $1,700 to $1,850/oz.
• Capital Expenditures: Sustaining capital similar to 2025; increased project capital for La Colorada Skarn, Jacobina, and Timmins.
• Exploration Focus: Increased capital for exploration programs, including Cerro Moro.

4. Bad News, Challenges, or Points of Concern

• Escobal Mine Uncertainty: No clear timeline for the restart due to ongoing consultation processes; potential delays in production.
• Cost Pressures: Higher royalties and worker participation payments due to increased metal prices impacting costs.
• Market Risks: Dependence on metal prices; while current prices are favorable, fluctuations could impact future earnings.

5. Notable Q&A Insights

• Juanicipio Performance: CEO Michael Steinmann expressed satisfaction with the asset's performance and noted that while current production is strong, long-term expectations may see a shift towards base metals.
• La Colorada Skarn Development: Discussions on a phased approach are ongoing, with a focus on higher-grade material in the initial phase.
• Exploration Commitment: Steinmann emphasized the company's commitment to exploration across all assets, particularly in light of favorable metal prices.
• Escobal Consultation Progress: Ongoing engagement with the Ministry of Energy and Mines is viewed positively, but no significant changes have been reported.

Overall, Pan American Silver reported a strong financial performance in 2025, driven by high metal prices and operational efficiencies, while navigating challenges related to specific projects and market conditions. The outlook for 2026 remains positive with ambitious production targets and strategic investments planned.