Pan American Silver (NASDAQ: PAAS)

Last close As at 29/02/2024

USD12.41

0.20 (1.64%)

Market capitalisation

USD4,453m

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.

Both gold and silver prices remain supportive of the stock against the backdrop of higher geopolitical risks and expectation of interest rates decline.

Latest Insights

View More

Metals & Mining | Update

Pan American Silver — FY23 results: Follow the cash flow

Metals & Mining | Update

Pan American Silver — Consistent growth at higher costs

Metals & Mining | Update

Pan American Silver — Adjusting valuation on Skarn

Metals & Mining | Flash note

Pan American Silver — Skarn PEA confirms its early potential

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)

360.8

Forecast gearing ratio (%)

8

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (8.2) (20.8) (16.5)
Relative (12.7) (29.0) (34.9)
52 week high/low US$19.5/US$12.2

Financials

Pan American Silver (PAAS) has released its FY23 financial results, which are in line with our estimates at the EBITDA level, an encouraging outcome given the operationally challenging year. While the bottom line was once again affected by non-cash one-offs, cash flow generation was robust, with FY23 operating cash flow of US$450m. We have slightly adjusted our FY24 estimates and rolled the model forward, resulting in a marginally updated valuation of US$22.2/share. The company’s decision to launch a buyback should partly compensate for the weak share price performance, which we believe does not reflect supportive gold market fundamentals and what is likely to be a year of more consistent operating performance.

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 63.8 N/A
2024E 2578.0 764.6 174.5 23.70 52.4 51.9
2025E N/A N/A N/A N/A N/A N/A

Research

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

thematic

Consumer

IPO apocalypse

thematic

TMT

ESG, moving beyond the box tick

thematic

Metals & Mining

The PGM markets – Outlook and price forecasts

thematic

Metals & Mining

Piedmont Lithium increases its mineral resource estimate by 21%

thematic

Metals & Mining

Gold stars and black holes

thematic

Metals & Mining

Mining sector report: Gold: The value of gold and other metals

thematic

Energy & Resources

ASX Spotlight Conference – London, 6 March 2014

thematic

Metals & Mining

Making a case for uranium: Life after Fukushima

thematic

Metals & Mining

Indaba special, 2014

thematic

Energy & Resources

ASX Small to Mid Caps Conference – London, 7 March 2013

thematic

Energy & Resources

Asia-Pacific resources quarterly: February 2013 edition

thematic

Metals & Mining

Indaba special, 2013

thematic

Metals & Mining

Edison mining quarterly: October 2012

thematic

Metals & Mining

Mining catalyst: China’s new stimulus

thematic

Energy & Resources

Asia-Pacific resources quarterly: August edition

thematic

Energy & Resources

Asia-Pacific resources quarterly

thematic

Metals & Mining

Edison mining quarterly: April 2012

thematic

Metals & Mining

Macro Outlook – Price weakness on the cards

thematic

Metals & Mining

Indium and gallium overview

thematic

Metals & Mining

Switzerland: Global Resources Investing Conference