PAAS — Pan American Silver Corp.

Summary of Pan American Silver (PAAS) Q4 and Full Year 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).
• Dividend: Declared $0.18 per share, marking the third consecutive increase.

2. Strategic Updates and Business Highlights

• Production: Attributable silver production reached 22.8 million ounces, exceeding guidance; gold production was 742,200 ounces, within guidance.
• Cost Management: Silver segment all-in sustaining costs were $9.51 per ounce in Q4 and $13.88 for the year, below revised guidance. Gold segment costs were $1,699 per ounce in Q4 and $1,621 for the year.
• Juanicipio Mine: Strong performance since acquisition in September 2025, with expectations of continued strong output.
• La Colorada Skarn Project: New phased development approach anticipated to yield higher grades and lower initial capital costs; updated technical report expected in Q2 2026.
• Jacobina and Escobal Projects: Investments aimed at operational reliability and growth; ongoing discussions with the Guatemalan Ministry regarding Escobal's consultation process.

3. Forward Guidance and Outlook

• 2026 Silver Production Guidance: 25 million to 27 million ounces; costs expected to be $15.75 to $18.25 per ounce.
• 2026 Gold Production Guidance: 700,000 to 750,000 ounces; costs projected at $1,700 to $1,850 per ounce.
• Capital Expenditure: Sustaining capital similar to 2025, with additional project capital for La Colorada Skarn, Jacobina, and Timmins.
• Metal Price Environment: Anticipated strong free cash flow supported by high metal prices, with silver market expected to remain in deficit for the sixth consecutive year.

4. Bad News, Challenges, or Points of Concern

• Escobal Project: Ongoing consultation process with no clear timeline for resuming operations, which could delay potential revenue.
• Cost Increases: Higher royalties and worker participation payments due to rising metal prices, impacting margins.
• Geological Considerations: Long-term expectations for Juanicipio suggest a potential decrease in silver grades as base metals become more prevalent.

5. Notable Q&A Insights

• Juanicipio Performance: CEO Michael Steinmann expressed satisfaction with the mine's output and cost efficiency, indicating sustainability concerns are manageable.
• La Colorada Skarn Phased Approach: The phased development strategy will focus on higher-grade material initially, with a long-term view on lower-grade production.
• Exploration Commitment: Steinmann emphasized a commitment to exploration across all assets, particularly in light of favorable metal prices.
• Escobal Consultation Progress: Ongoing engagement with the Guatemalan Ministry is viewed positively, though timelines remain uncertain.

Overall, Pan American Silver reported strong financial performance in 2025, driven by high metal prices and operational efficiency, while facing challenges related to project timelines and cost pressures. The outlook for 2026 remains optimistic, with strategic initiatives in place to enhance production and shareholder returns.