Last close As at 05/08/2026
USD48.24
▲ 3.33 (7.41%)
Market capitalisation
USD20,120m
Research: Metals & Mining
Pan American Silver (PAAS) has released its annual mineral reserves and resources statement. While the overall reserves and resources have fallen compared to 2023 due to the asset divestments, on an adjusted basis the company has fully replaced its proven and probable (P&P) reserves and reported a significant increase in measured and indicated (M&I) resources in the silver segment. The gold segment has seen a visible boost to its inferred resource due to exploration work at Jacobina, which has also seen a healthy increase in its P&P reserves despite maintaining flat M&I resources over the year. Overall, six out of 11 producing operations, including flagship Jacobina and La Colorada, have seen their mineral reserves either fully or almost fully replaced in tonnage terms during the year to June 2024.
Pan American Silver |
Strong reserves replacement rates for key assets |
Exploration update |
Metals and mining |
18 September 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) has released its annual mineral reserves and resources statement. While the overall reserves and resources have fallen compared to 2023 due to the asset divestments, on an adjusted basis the company has fully replaced its proven and probable (P&P) reserves and reported a significant increase in measured and indicated (M&I) resources in the silver segment. The gold segment has seen a visible boost to its inferred resource due to exploration work at Jacobina, which has also seen a healthy increase in its P&P reserves despite maintaining flat M&I resources over the year. Overall, six out of 11 producing operations, including flagship Jacobina and La Colorada, have seen their mineral reserves either fully or almost fully replaced in tonnage terms during the year to June 2024.
Year end |
Revenue |
EBITDA |
EPS* |
DPS |
EV/EBITDA |
Yield |
12/22 |
1,494.7 |
272.0 |
(0.54) |
0.45 |
28.4 |
2.2 |
12/23 |
2,316.1 |
680.6 |
0.19 |
0.41 |
11.4 |
2.0 |
12/24e** |
2,791.1 |
924.2 |
0.41 |
0.40 |
8.4 |
1.9 |
12/25e |
2,396.2 |
803.6 |
0.50 |
0.40 |
9.7 |
1.9 |
Note: *EPS is normalised, excluding exceptional items. ** FY24e EPS adjusted for non-cash tax movements.
Adjusted for the divestment of MARA, Morococha and Jeronimo, PAAS has reported flat P&P reserves in the silver segment of 45.8mt at a grade of 289 g/t Ag versus 274 g/t Ag at June 2023, effectively replacing the mined tonnage during the year. In the gold segment, adjusted P&P reserves have fallen from c 200mt (at 1.1 g/t Au) to 180mt (1.1 g/t Au) with the biggest drop recorded at La Arena, which is being divested, and Dolores, which was expected to cease mining in Q324. On the same basis, M&I resources in the silver segment has increased from 278mt to 446mt, albeit at a reduced Ag grade, thanks to the upgrade at La Colorada Skarn, which saw a 53% rise in indicated resource to 265mt at an increased grade of 36 g/t Ag, with the inferred resource falling 40% as a result. In the gold segment, M&I resources were only slightly lower at 977mt at 0.48 g/t Au.
At the project level, La Colorada saw increased grades across all reserves and resources categories, with P&P, M&I and inferred grades increasing to 299 g/t Ag (from 294 g/t), 189 g/t (176 g/t) and 235 g/t (174 g/t). As a result, despite the lower overall tonnage, the project’s total contained silver for all categories increased from 186.7moz at June 2023 to 195.3moz in 2024. Also of note is more than 100% reserves replacement at Huaron, which saw unchanged M&I resources and only a small reduction in inferred resources.
In the gold segment, Jacobina achieved an impressive 12% increase in P&P reserves to 54.3mt, albeit at a lower grade, while its M&I resources remained broadly unchanged at higher grade and inferred resources increased by 42% to 57mt at a much-improved grade of 1.77 g/t Au (vs 1.56 g/t). Also in the gold segment, both Minera Florida and Timmins saw their reserves fully replaced in tonnage terms during the year to June 2024.
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Research: TMT
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