Pan American Silver Corp. PAAS produced a record 7.3 million ounces of silver in the fourth quarter of 2025 on better-than-expected results at the Juanicipio mine.
In September 2025, PAAS completed the acquisition of MAG Silver Corp, boosting its position as one of the leading silver producers globally and significantly strengthening the company’s industry-leading silver reserve base. As part of the deal, Pan American Silver gained a 44% stake in the Juanicipio project, which is a large-scale, high-grade silver mine in Zacatecas operated by Fresnillo plc.
Pan American Silver expects 2026 total silver production of 25-27 million ounces, indicating a year-over-year increase of 14% at the mid-point. The full-year contribution from Juanicipio will be a key contributor to this growth.
For 2026, silver production at the Juanicipio mine is expected between 6 million and 6.50 million ounces. The mine is also expected to produce 7.5-18.5 thousand ounces of gold in 2026. Juanicipio produced 2.49 million ounces of silver and 6.7 thousand ounces of gold in 2025 since its acquisition in September 2025.
The company, however, expects mine’s all-in sustaining costs to reflect higher production costs
per ounce from higher contractor, labor and energy costs in 2026. The all-in sustaining costs for Juanicipio are expected between $2.25 and $4.25 per ounce in 2026. PAAS reported all-in sustaining costs of negative $3.18 per ounce in 2025.
The company will advance with the conveyor haulage system aimed at reducing costs and optimizing long-term margins at the mine. The project capital for the mine is expected between $11 million and $12 million for 2026.
Like PAAS, its peer Hecla Mining Company HL delivers strong performance, driven by core operating assets. During 2025, Hecla Mining’s Greens Creek produced 8.7 million ounces of silver, up 3% from 2024. Hecla Mining’s Lucky Friday project also delivered improved performance during the year. The mine’s silver production totaled 5.3 million ounces, driven by higher milled grades and improved throughput.
Avino Silver & Gold Mines Ltd. ASM is benefiting from its strategy of advancing production, development and exploration projects in Mexico. Avino Silver’s La Preciosa project was reclassified from exploration to development in April 2025 after demonstrating technical feasibility and commercial viability. At Avino Silver’s Avino Mine, higher throughput and better recoveries lifted gold output 21% year over year to 7,621 ounces in 2025.
PAAS’ Price Performance, Valuation & Estimates
In a year, Pan American Silver shares have skyrocketed 134.2% compared with the industry's 181.9% whopping growth. In comparison, the Basic Materials sector has risen 55.9%, whereas the S&P 500 has moved up 30.7%.
PAAS is currently trading at a forward 12-month price-to-earnings multiple of 12.19X compared with the industry average of 15.53X.
The consensus mark for 2026 earnings is pegged at $4.47 per share, indicating a year-over-year jump of 76%. The 2027 estimate of $4.98 suggests an increase of 11.4%.
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 has moved up 22.1% over the past 60 days and the same for 2027 has risen 26.4%.
PAAS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).