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Pan American Silver (TSE:PAAS)
TSX:PAAS
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Pan American Silver
(TSX:PAAS)
73Outperform
Pan American Silver (PAAS) vs. S&P 500 (SPY)
Market Cap
$11.07B
Dividend Yield1.86%
Average Volume (3M)860.77K
Price to Earnings (P/E)72.7
Beta (1Y)1.71
Revenue Growth23.70%
EPS GrowthN/A
CountryCA
Employees9,000
SectorBasic Materials
Sector Strength59
IndustrySilver
Share Statistics
EPS (TTM)0.43
Shares Outstanding362,138,000
10 Day Avg. Volume835,896
30 Day Avg. Volume860,767
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.62
Price to Cash Flow (P/CF)14.30
P/FCF Ratio28.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$40.64Price Target Upside32.93% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Pan American Silver Business Overview & Revenue Model
Company DescriptionPan American Silver Corp. (PAAS) is one of the world's largest primary silver producers, based in Vancouver, Canada. The company operates mines and exploration projects in Mexico, Peru, Canada, Argentina, and Bolivia. While its primary focus is on silver, Pan American Silver also produces gold, zinc, lead, and copper, making it a significant player in the mining industry. The company is committed to sustainable mining practices and aims to create long-term value through its diversified portfolio of assets.
How the Company Makes MoneyPan American Silver makes money primarily through the extraction, production, and sale of silver and other metals such as gold, zinc, lead, and copper. The company operates several mines across the Americas, where it extracts ore that is then processed to separate out the metals. Once refined, these metals are sold on global markets. The company's revenue streams are largely dependent on market prices for these metals, which can fluctuate based on supply and demand dynamics, geopolitical factors, and economic conditions. Pan American Silver also engages in strategic partnerships and uses hedging strategies to manage market risks and stabilize its earnings. Additionally, the company invests in exploration and development projects to expand its resource base and sustain future production levels.
Pan American Silver Financial Statement Overview
Summary
Pan American Silver demonstrates strong revenue growth and improving profit margins, supported by a solid balance sheet with low leverage. However, cash flow volatility and fluctuating net income reflect challenges within the mining sector.Income Statement
Pan American Silver has demonstrated a solid revenue growth trajectory, with a significant increase from $1.49 billion in 2022 to $2.82 billion in 2024. Gross profit and EBIT margins have seen improvement, reflecting enhanced operational efficiency. However, the net profit margin is constrained by fluctuating net income due to volatility in commodity prices and operational costs inherent in the mining industry.75
Positive
Balance Sheet
The balance sheet shows a strong equity base with a Debt-to-Equity ratio of 0.17, indicating low leverage and financial stability. The company has maintained a healthy equity ratio of 65.3%, reflecting robust asset management. However, fluctuations in total assets and liabilities over the years suggest potential risk exposure to market and operational factors.70
Positive
Cash Flow
The company has improved its free cash flow significantly, increasing from negative figures in 2022 to $400.8 million in 2024. The Operating Cash Flow to Net Income Ratio indicates solid cash generation capabilities. However, large capital expenditures and inconsistent free cash flow in past years highlight potential volatility in cash flow management.68
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.82B | 2.32B | 1.49B | 1.63B | 1.34B | Gross Profit |
| 548.50M | 214.60M | 48.36M | 367.94M | 360.18M | EBIT |
| 530.70M | 38.10M | -20.52M | 320.91M | 209.05M | EBITDA |
| 1.05B | 476.80M | -7.18M | 554.87M | 554.20M | Net Income Common Stockholders |
| 111.50M | -103.70M | -340.06M | 97.43M | 177.88M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 887.30M | 440.90M | 142.34M | 335.27M | 279.06M | Total Assets |
| 7.20B | 7.21B | 3.25B | 3.52B | 3.43B | Total Debt |
| 803.30M | 801.60M | 226.84M | 45.86M | 33.56M | Net Debt |
| -59.50M | 402.00M | 119.83M | -237.69M | -133.55M | Total Liabilities |
| 2.49B | 2.44B | 1.05B | 882.58M | 828.04M | Stockholders Equity |
| 4.70B | 4.76B | 2.20B | 2.63B | 2.60B |
| Cash Flow | Free Cash Flow | |||
| 400.80M | 71.20M | -242.78M | 148.63M | 283.76M | Operating Cash Flow |
| 724.10M | 450.20M | 31.91M | 392.11M | 462.31M | Investing Cash Flow |
| -32.60M | 397.90M | -255.40M | -186.66M | -83.92M | Financing Cash Flow |
| -225.20M | -551.80M | 52.97M | -85.91M | -329.59M |
Pan American Silver Technical Analysis
Negative
30.57
Price Trends
35.31
Negative
33.04
Negative
31.14
Negative
Market Momentum
0.63
Positive
52.20
Neutral
35.56
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PAAS, the sentiment is Negative. The current price of 30.57 is below the 20-day moving average (MA) of 36.50, below the 50-day MA of 35.31, and below the 200-day MA of 31.14, indicating a bearish trend. The MACD of 0.63 indicates Positive momentum. The RSI at 52.20 is Neutral, neither overbought nor oversold. The STOCH value of 35.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:PAAS.
Pan American Silver Peers Comparison
Overall Rating
UnderperformOutperform
Sector (47)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $2.62B | 13.39 | 9.74% | ― | 28.18% | ― | |
73 Outperform | $11.07B | 72.72 | 2.36% | 1.86% | 23.70% | ― | |
61 Neutral | $1.97B | 18.47 | 14.17% | ― | ― | 61.66% | |
58 Neutral | $1.17B | ― | -7.23% | ― | 6.18% | -515.57% | |
47 Neutral | $2.36B | -3.00 | -21.73% | 3.58% | 3.97% | -28.71% | |
39 Underperform | $39.85M | ― | -61.60% | ― | 21.75% | 17.59% |
* Basic Materials Sector Average
Performance Comparison
TSE:PAAS
Pan American Silver
30.57
6.44
26.71%
TSE:MAG
MAG Silver
19.08
2.71
16.55%
TSE:BCM
Bear Creek Mining
0.18
-0.21
-53.95%
TSE:FVI
Fortuna Silver Mines
7.62
1.26
19.81%
TSE:EDR
Endeavour Silver
4.46
0.57
14.65%
Pan American Silver Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: -11.25% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
Pan American Silver Corp. delivered a strong financial performance in 2024, with record-breaking revenue and production, solid cash flow, and a stable financial position. However, the company faces challenges related to higher costs and regulatory delays at Escobal. Despite these challenges, the successful integration of Yamana mines and progress in major projects position the company well for future growth.Highlights
Record-Breaking Revenue and Production
Pan American Silver Corp. reported record revenue of $815.1 million in Q4 and $2.8 billion for the full year 2024. Silver production totaled 21.1 million ounces, and gold production reached a company record of 892,000 ounces.
Strong Cash Flow and Financial Position
The company generated record cash flow from operations of $274.1 million in Q4 and $724.1 million for the full year. Pan American Silver Corp. is in a net cash position with $887 million in cash and short-term investments, against roughly $800 million of debt, with a total liquidity of $1.6 billion.
Successful Integration of Yamana Mines
The mines acquired through the Yamana transaction have been well integrated, contributing significantly to the company's performance. The organization achieved its production guidance for 2024.
Progress in Major Projects
Completion of several major projects, including new ventilation infrastructure at La Colorada and a filtration plant at Huaron, are expected to contribute to lower operating costs and improved throughput.
Lowlights
Higher All-In Sustaining Costs
All-in sustaining costs for the silver segment were slightly above guidance at $18.98 per ounce. Gold segment costs were within guidance but high at $1,501 per ounce.
Challenges with Escobal Consultation Process
The consultation process for Escobal has been ongoing with no published timeline for completion, affecting the potential restart of operations.
Adjusted Earnings Reflect Adjustments at Dolores
Net earnings for Q4 were impacted by adjustments at Dolores related to closure and decommissioning liabilities, and net realizable value of inventory.
Company Guidance
During the Pan American Silver Corp. 2024 year-end conference call, the company provided a comprehensive outlook for 2025, highlighting key metrics and operational guidance. They forecast silver production between 20 to 21 million ounces and gold production between 735,000 to 800,000 ounces, with both expected to be weighted towards the second half of the year. The company projects all-in sustaining costs (AISC) for the silver segment to range from $16.25 to $18.25 per ounce and for the gold segment from $1,525 to $1,625 per ounce. Sustaining capital expenditures are anticipated to be between $270 million to $285 million, while project capital is expected to range from $90 million to $100 million, including significant investments in La Colorada and Timmins. The company plans to allocate approximately $80 million towards exploration, primarily for reserve replacement. Additionally, cash taxes are estimated to be $240 million to $260 million, with care and maintenance costs projected at $20.5 million to $24 million, primarily for the Escobal operation. The company remains in a strong financial position, with net cash of $887 million and total available liquidity of $1.6 billion, positioning them well to pursue growth objectives and continue returning capital to shareholders.Pan American Silver Corporate Events
Pan American Silver Corp. Achieves 2024 Production Targets and Enters 2025 with Record Cash Balance
Jan 16, 2025
Pan American Silver Corp. achieved its 2024 production guidance, producing 21.1 million ounces of silver and 892 thousand ounces of gold, with notable contributions from its La Colorada and Jacobina mines. The company’s record cash balance of $887.3 million at the start of 2025, bolstered by proceeds from the sale of the La Arena mine, positions it strongly for future strategic initiatives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.