Last close As at 05/08/2026
USD48.24
▲ 3.33 (7.41%)
Market capitalisation
USD20,120m
Research: Metals & Mining
Pan American Silver (PAAS) announced the temporary suspension of all operating activities at its La Colorada mine in Mexico due to security concerns at the mine site following the concentrate robbery. The company has not yet provided any indication of the potential restart of mining activities. We currently maintain our estimates and valuation, awaiting more clarity on the timing of the restart.
Pan American Silver |
La Colorada mine suspension |
Project update |
Metals and mining |
6 October 2023 |
Share price performance
Business description
Analysts
Pan American Silver is a research client of Edison Investment Research Limited |
||||||||||||||||||||||||||||||||||||
Pan American Silver (PAAS) announced the temporary suspension of all operating activities at its La Colorada mine in Mexico due to security concerns at the mine site following the concentrate robbery. The company has not yet provided any indication of the potential restart of mining activities. We currently maintain our estimates and valuation, awaiting more clarity on the timing of the restart.
Year end |
Revenue |
EBITDA |
EPS* |
DPS |
P/E |
Yield |
12/21 |
1,632.8 |
593.2 |
0.60 |
0.34 |
23.0 |
2.5 |
12/22 |
1,494.7 |
272.0 |
(0.51) |
0.45 |
N/A |
3.2 |
12/23e |
2,439.1 |
740.7 |
0.36 |
0.41 |
38.4 |
2.9 |
12/24e |
2,873.2 |
1,085.0 |
0.74 |
0.40 |
18.7 |
2.9 |
Note: *EPS is normalised, excluding exceptional items.
PAAS has temporarily suspended all operating activities at its La Colorada mine in Mexico, citing security concerns at the mine site and surrounding area. It announced on 5 October that the operation experienced an armed robbery of two trailers of concentrate. According to the company, the mine site is currently secure but the project was put on care and maintenance until PAAS determines it is safe to resume operations. No indication was given by the company as to when this might happen. In Q223 La Colorada produced 1,146koz of silver (or c 13koz per day), which represented c 19% of the consolidated silver output during the quarter.
At present we maintain our estimates and valuation of US$22.0 per share, pending more information on the potential timing of the mine restart. We also note the recent weakness in silver and gold prices, which put PAAS shares under pressure. Edison has recently revised its longer-term gold price assumptions; we will incorporate the updated commodity prices in our company model shortly.
|
|
Research: Financials
Manx Financial Group (MFX) posted record PBT of £3m supported by record new lending of £183m in H123. Conister Bank experienced margin compression of 6% as rising interest rates were passed on to savers more quickly than borrowers. However, group net interest margin (NIM) rose 1.5 percentage points y-o-y to 8.2% as Payment Assist (PAL, currently 50.1% owned) grew rapidly. Altogether, EPS fell to 1.67p/share from 1.89p/share, and net attributable profit declined by 11% y-o-y to £1.9m. The outlook for volume growth remains positive. The anticipated approval of a UK banking licence before year-end will add further funding flexibility into FY24 and the company continues to look for synergistic acquisitions, with general insurance an area of interest.