Last close As at 05/08/2026
USD48.24
▲ 3.33 (7.41%)
Market capitalisation
USD20,120m
Research: Metals & Mining
Pan American Silver (PAAS) recently held an investor day focusing on strategy, key projects, exploration, ESG and capital allocation. In this note we summarise key takeaways from the event. Our valuation and financial estimates remain unchanged ahead of the Q224 results in August.
Pan American Silver |
Investor day takeaways |
Investor day update |
Metals and mining |
27 June 2024 |
Share price performance
Business description
Analysts
Pan American Silver is a research client of Edison Investment Research Limited |
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Pan American Silver (PAAS) recently held an investor day focusing on strategy, key projects, exploration, ESG and capital allocation. In this note we summarise key takeaways from the event. Our valuation and financial estimates remain unchanged ahead of the Q224 results in August.
Year end |
Revenue |
EBITDA |
EPS* |
DPS |
EV/EBITDA |
Yield |
12/22 |
1,494.7 |
272.0 |
(0.54) |
0.45 |
28.6 |
2.2 |
12/23 |
2,316.1 |
680.6 |
0.19 |
0.41 |
11.4 |
2.0 |
12/24e |
2,743.8 |
958.6 |
0.58 |
0.40 |
8.1 |
1.9 |
12/25e |
2,400.4 |
827.9 |
0.54 |
0.40 |
9.4 |
1.9 |
Note: *EPS is normalised, excluding exceptional items.
The key takeaways from the investor day presentation are as follows:
Recent government changes in Guatemala caused a delay in the ILO 169 consultation process at Escobal. PAAS is awaiting reappointment of the vice minister of sustainable development, expected in July, to restart the process and re-establish the timeline. The consultation was initially scheduled to complete in March 2024.
At La Colorada, the company is working towards resolving the well-publicised ventilation issues and is on track to commission new ventilation fans in July. As was reported earlier, FY24 operational performance at La Colorada, and for the company in general, is expected to be second half weighted. The project’s FY24 throughput is planned at 1,620tpd of ore, reaching a 2,000tpd run rate by year-end.
At La Colorada Skarn, PAAS has been in early discussions with various potential development partners, while also advancing the project to the PFS/revised PEA stage in light of the more recent higher-grade drilling results. This study will ultimately determine the mining method and consequently the project’s capex, operating costs and economics. Skarn’s key attraction is its long-life, large-scale nature (top 4 global zinc, top 5 silver mine potential by output), which bodes well for the project given depleting large zinc mines.
PAAS is continuing its optimisation programme at Jacobina and considering a change in mining method to paste backfill that will potentially enable it to develop deeper parts of the project’s resources. The near-term goal is to sustain throughput at c 8,400ktpd and recovery at or above 96%. However, the project has significant exploration potential, both at depth and along strike, and a new mining method could support production expansion and result in lower operating costs.
Commenting on the silver market, PAAS highlighted the recent report from The Silver Institute, which points to a visible supply shortfall this year. At the same time, demand continues to grow, with 2024 silver consumption in electrical applications and photovoltaics expected to grow 9% y-o-y to 486Moz and 20% to 232Moz. As c 80% of silver is a by-product, ageing copper and zinc mines are generally unlikely to bring any meaningful supply side response in the longer term.
In other highlights, PAAS mentioned a reduction in net debt post the La Arena sale to US$357m, the positive impact of higher by-product metal prices on silver costs and its intention to potentially divest its royalty interests with a focus on paying down more expensive debt and shareholder distributions in the form of dividends.
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Research: Healthcare
OSE Immunotherapeutics has entered into a commercial and revenue sharing agreement with the Memorial Sloan Kettering Cancer Center (MSK), focused on chimeric antigen receptor (CAR)-T cell therapies. OSE and MSK were already engaged in an ongoing research collaboration for a preclinical non-antagonist interleukin-7 receptor (IL-7R) monoclonal antibody to be used either as a therapeutic or for the design of CAR-T cell therapies. The new agreement specifically covers patent rights for CAR-T cell therapies targeting IL-7R expressing cancers. While precise details have not been disclosed, MSK will assume responsibility for research, development and commercialisation, and will share future potential revenue with OSE. Management also provided an update on the recent progress of its messenger RNA (mRNA) platform, highlighting the potential of an mRNA therapeutic using lipid nanoparticles in autoimmune hepatitis. OSE announced a series of partnerships in recent months that provide external validation of its capabilities in developing innovative therapies across various modalities for indications with unmet medical needs.