Pan American Silver is one of the largest global primary silver producers and a sizeable gold miner with operations in North, Central and South America since 1994. It owns 11 producing operations, the currently suspended top tier Escobal silver mine and a number of large-scale advanced exploration/development projects.
PAAS shares remain weak despite the evidence of impressive cash flow generation in FY23 and the strong gold price that does not seem to fully discount the interest rate reduction potential.
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Guido Mastropietro
Director, finance
Siren Fisekci
VP, investor relations and corporate communic
Forecast net debt (US$m)
360.8
Forecast gearing ratio (%)
8
% | 1M | 3M | 12M |
---|---|---|---|
Actual | 21.8 | 32.0 | 5.9 |
Relative | 27.2 | 29.0 | (12.0) |
52 week high/low | US$19.6/US$12.2 |
Pan American Silver (PAAS) has announced a sale of the La Arena and La Arena II projects to Zijin Mining for US$245m in cash, US$50m in a contingent payment and a 1.5% NSR gold royalty. La Arena II is a copper and gold sulphide deposit that sits underneath the currently producing La Arena gold project. We view the transaction as positive for PAAS, given La Arena’s very short mine life, significant capex required to bring La Arena II into production and the fact that copper is not PAAS’s core commodity.
Y/E Dec | Revenue (US$m) | EBITDA (US$m) | PBT (US$m) | EPS (fd) (c) | P/E (x) | P/CF (x) |
---|---|---|---|---|---|---|
2022A | 1494.7 | 272.0 | (73.0) | (54.06) | N/A | N/A |
2023A | 2316.1 | 680.6 | 108.4 | 19.45 | 95.5 | N/A |
2024E | 2578.0 | 764.6 | 174.5 | 23.70 | 78.4 | 77.7 |
2025E | N/A | N/A | N/A | N/A | N/A | N/A |
thematic
Metals & Mining