Pan American Silver (NYSE: PAAS)

Last close As at 24/05/2024

USD20.83

−0.50 (−2.34%)

Market capitalisation

USD7,596m

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.

Latest Insights

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Metals & Mining | Update

Pan American Silver — A taste of things to come

Metals & Mining | Flash note

Pan American Silver — La Arena divestment

Metals & Mining | Update

Pan American Silver — FY23 results: Follow the cash flow

Metals & Mining | Update

Pan American Silver — Consistent growth at higher costs

Macro Pyrite mineral_pan american

Equity Analyst

Andrey Litvin

Energy and Resources Analyst

Harry Kilby

Analyst

Key Management

  • Guido Mastropietro

    Director, finance

  • Siren Fisekci

    VP, investor relations and corporate communic

Balance Sheet

Forecast net debt (US$m)

44.8

Forecast gearing ratio (%)

1

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 11.9 62.1 31.7
Relative 7.7 56.6 3.6
52 week high/low US$22.4/US$12.2

Financials

Pan American Silver (PAAS) has seen an encouraging start to the year with Q124 silver and gold production in line with management expectations and costs for both segments below its quarterly guidance. Q1 is typically one of the slowest quarters for PAAS and the company’s maintained guidance points to significant improvements in production and costs in H224. This should be supported by the current strength in commodity prices. We have increased our FY24 EBITDA estimate by 25% and upgraded our valuation from US$22.2/share to US$23.4. We believe there could be further upside to the share price if commodity prices remain at elevated levels and the company delivers on its operational guidance in FY24.

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 19.45 107.1 N/A
2024E 2743.8 958.6 374.7 57.80 36.0 37.9
2025E 2400.4 827.9 358.0 54.06 38.5 38.4

Flash note

Metals & Mining

Pan American Silver — Positive non-core assets divestment

Update

Metals & Mining

Pan American Silver — Bigger scale, stronger profitability

Macro Pyrite mineral_pan american

Flash note

Metals & Mining

Pan American Silver — Yamana transaction fully approved

Macro Pyrite mineral_pan american

Flash note

Metals & Mining

Pan American Silver — Shareholders approve Yamana transaction

Flash note

Metals & Mining

Pan American Silver — Proxy advisors support Yamana vote

Update

Metals & Mining

Pan American Silver — Yamana bid overshadows Q322 results

Flash note

Metals & Mining

Pan American Silver — Significant resources upgrade at Skarn

Update

Metals & Mining

Pan American Silver — Mixed Q2 results, Escobal progress

Flash note

Metals & Mining

Pan American Silver — Positive drill results at La Colorada Skarn

Update

Metals & Mining

Pan American Silver — Q122 results – good cost control

Initiation

Metals & Mining

Pan American Silver — Lean, mean silver machine