Pan American Silver (PAAS) is one of the largest global primary silver producers and a sizeable gold miner with operations in North, Central and South America since 1994. PAAS owns eight producing operations, the currently suspended top-tier Escobal silver mine and a number of large-scale advanced exploration projects.
More Pan American Silver content >Investment summary
Weaker commodity prices and unabating cost pressures continued to supress Pan American Silver’s (PAAS’s) performance in Q322. However, at the top line, these were largely offset by higher gold sales, while lower inventory adjustments and other operating costs resulted in a 90% q-o-q boost in EBITDA. That said, the Q3 results were clearly overshadowed by PAAS’s joint bid to acquire Yamana Gold for c US$4.8bn. Contingent on shareholder approvals, the deal will be transformational for PAAS, adding four large-scale and low-cost producing silver and gold projects in Latin America and more than doubling its annual EBITDA.
Y/E Dec |
Revenue (US$m) |
EBITDA (US$m) |
PBT (US$m) |
EPS (fd) (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2020A | 1338.8 | 469.1 | 194.5 | 57.24 | 28.6 | 19.5 |
| 2021A | 1632.8 | 593.2 | 274.0 | 60.10 | 27.3 | 34.9 |
| 2022E | 1540.8 | 296.6 | (24.7) | (25.65) | N/A | N/A |
| 2023E | 1582.9 | 483.9 | 174.2 | 53.06 | 30.9 | 30.6 |
Industry outlook
PAAS continues its exploration work and preliminary engineering studies and will release an update on resources and a preliminary economic assessment during the course of 2023. The market continues to focus on the near-term macroeconomic challenges, and in our view does not fully reflect the company’s exposure to silver as an energy transition metal through its quality project portfolio and the relatively long life and low-cost nature of its core silver operations.
Last updated on 30/11/2022Content on Pan American Silver
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Metals & mining
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Share price graph
Balance sheet |
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| Forecast net cash (US$m) | 134.2 |
| Forecast gearing ratio (%) | N/A |
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Key management |
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| Guido Mastropietro | Director, finance |
| Siren Fisekci | VP, investor relations and corporate communic |