Pan American Silver Corp (PAAS) (Q3 2026) Earnings Call Highlights: Record $377 Million Free ... GuruFocus News Fri, November 6, 2026 at 6:08 AM EST 8 min read PAAS -0.32% SI=F -0.59% GC=F -0.85% PAAS -0.32% Explore stocks on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
Attributable Free Cash Flow: $377 million in Q3 2026; $1.2 billion over first nine months of 2026.
Cash and Equivalents: $1.9 billion, including cash at Juanicipio.
Total Available Liquidity: $3.4 billion.
Net Earnings: $357 million, or $0.86 per share.
Adjusted Earnings: $287 million, or $0.69 per share.
Cash Flow from Operations: $462 million, including share of cash flow from Juanicipio.
Shareholder Returns: $300 million returned in Q3; $701 million over first nine months of 2026 (including ~9.6 million shares repurchased and canceled and $228 million in dividends).
Dividend: $0.185 per common share declared for Q3.
Silver Production: 6.1 million attributable ounces in Q3, below quarterly outlook; full year outlook 2527 million ounces, expected at low end.
Silver Segment All-In Sustaining Costs: $11.21 per ounce in Q3, below quarterly outlook; full year expected toward lower end of $15.75$18.25 per ounce guidance.
Gold Production: 168,000 attributable ounces in Q3; full year guidance revised to 660,000680,000 ounces.
Gold Segment All-In Sustaining Costs: $2,281 per ounce in Q3, above quarterly outlook; full year guidance revised to $2,000$2,150 per ounce.
Project Capital: 2026 estimate revised down to $195$210 million from prior $240$255 million.
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For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Pan American Silver Corp (NYSE:PAAS) generated $377 million in attributable free cash flow and returned $300 million to shareholders through dividends and share repurchases in Q3 2026.
The company maintains a very strong financial position with $1.9 billion in cash and equivalents and $3.4 billion in total available liquidity.
Silver segment all-in sustaining costs were $11.21 per ounce, below the quarterly outlook range, and full-year silver costs are expected at the lower end of guidance.
Pan American Silver Corp (NYSE:PAAS) has returned $701 million to shareholders year-to-date, including 9.6 million shares repurchased and $228 million in dividends, leading to a higher per-share dividend.
Growth initiatives at La Colorada and Timmins are advancing, with the 588 decline making good progress and a PEA for the Timmins camp project planned for the first half of 2027.
Attributable silver production of 6.1 million ounces was below the quarterly outlook range due to lower grades at Juanicipio and Cerro Moro, with full-year production expected at the low end of guidance.
Gold production guidance was reduced to 660,000-680,000 ounces, and gold segment all-in sustaining costs are now expected at $2,000-$2,150 per ounce, up from previous guidance.
Operations at Jacobina were impacted by deficiencies identified by Brazil's National Mining Agency, requiring remediation work that will reduce production into early 2027.
Unplanned downtime at Huaron for primary grinding mill foundation repairs is expected to last about 40 days, affecting Q4 silver production and delaying catch-up into 2027.
Escobal remains suspended with no timeline for conclusion of the ILO 169 consultation or restart, and the company continues to face cost pressures from inflation, tight labor markets, and El Nino-related weather impacts.
Q: Can you clarify whether the deficiencies flagged by Brazil's National Mining Authority at Jacobina are related to the seismic issues disclosed last quarter, and what is the potential impact on 2027 production? A: Scott Campbell, SVP Operations and Projects, confirmed the regulator's October inspection findings on primary ventilation redundancies and secondary egress are a separate issue from the seismicity problem. Remediation work will continue through the remainder of 2026, and the company is still assessing the impact on 2027 production.
Q: With Juanicipio moving into lower silver, higher base metal zones and Cerro Moro becoming more gold-weighted, is there anything structural in the production trends or is this just mine sequencing? A: CEO Michael Steinmann explained this reflects the natural geological zonation of these deposits. At Cerro Moro, mining is currently in more gold-rich ore at Naty Condor, while at Juanicipio, deeper mining transitions to more base metals, similar to La Colorada. The company can mitigate this by mining higher up in the system and in new veins to bring in more silver.
Q: How should we think about the processing rates and 2027 production profile at El Penon given the reconciliation issues with higher-grade stopes and stockpile depletion? A: Michael Steinmann, CEO, said about 10,000 ounces of gold were cut from the year due to high-grade stopes with insufficient drilling and less continuity than expected; those were moved from reserves to resources. The exploration team is actively drilling these structures, and with elevated metal prices, the company is also evaluating low-grade open pit material from historical stockpiles as a welcome addition to the mine plan.
Q: What is the quantum of downtime expected at Huaron for the grinding mill foundation repair, and what cost pressures are you seeing on labor and inflation? A: Scott Campbell, SVP Operations and Projects, said the Huaron plant should be fully operational by mid-November, with total downtime of about 40 days; the mine is stockpiling ore in the meantime. CEO Michael Steinmann added that inflation is elevated globally, driven largely by energy and fuel costs, with a tight labor market depending on location, and noted exchange rates and by-product credits (such as higher zinc prices) also significantly affect costs.
Q: Given Pan American's safety culture, is more work needed at Jacobina to fully adopt the company's standards, and how should we think about 2027 guidance there? A: Michael Steinmann, CEO, acknowledged Jacobina is one of the newest operations and that work is ongoing to bring it up to Pan American's systems, noting the ventilation redundancy requirement does not really exist in other jurisdictions where the company operates. He said it is too early to give 2027 details, but the remediation will drag into early 2027, with a final forecast expected in early January.
Q: Should we expect an exploration update later this year, and will there be a resource-level update at La Colorada or other assets? A: Michael Steinmann, CEO, said an exploration update is coming soon, covering close to 650,000 to 700,000 meters of drilling this year. The annual reserve and resource update was already released in September, but a separate update specifically on the La Colorada Skarn resource is expected in Q1.
Q: Capital returns appear to be running at roughly 58% of free cash flow versus the original 35% to 40% framework. Can you sustain this higher rate? A: Michael Steinmann, CEO, explained the up-to-$1 billion return program was set in May based on share and metal prices at that time, targeting about 11.6 million shares. Because share prices fell with metal prices, the company does not need to spend the full $1 billion to buy back that share count, and it can adjust spending in Q4; what matters is the number of shares repurchased, not the dollars spent.
Q: Will the Samson, Vogel and Gold River deposits be included in the Timmins PEA, and how does the Galleon Gold investment fit into the Timmins strategy? A: Michael Steinmann, CEO, confirmed all these satellite deposits will be included in the updated PEA due in the first half of 2027, noting their close proximity to current operations. CFO Ignacio Couturier said the Galleon Gold stake is 15.6% on a basic basis and about 27% partially diluted; the deposit sits next to Timmins West and fits the strategy of growing in a prolific Canadian district.
Q: Silver production of 6.1 million ounces was below expectations due to sequencing at Juanicipio and Cerro Moro. Should we expect a catch-up in Q4? A: Michael Steinmann, CEO, said catching up will be hard given the Huaron mill repair, and production will likely come in at the low end of the 25 million to 27 million ounce guidance. The company will try to recover stockpiled ounces once the Huaron mill restarts, but that will drag into Q1 and Q2.
Q: How severe has the El Nino weather impact been across your Latin American operations, and is more still to come? A: Michael Steinmann, CEO, described major impacts this quarter, including heavy rain at Cerro Moro, a 100-year rain event in the Antofagasta area affecting El Penon, and mudflows near Santiago impacting La Florida. He noted El Nino events typically occur every five to seven years but this one is unusually strong, and the systems are expected to move north and affect Peru, potentially into January, with some impact factored into Shahuindo guidance.
Q: What is required to conclude the ILO 169 consultation at Escobal and restart the mine, and are the $80 million to $100 million working capital and four-to-six-month restart estimates still valid? A: Michael Steinmann, CEO, said consultation meetings with Xinka representatives continue with no timeline for conclusion; the process ultimately returns to the Guatemalan court, which will decide whether the consultation has been fulfilled before a restart. He said the mine and plant are maintained in good shape, first stopes could restart in about six months given their large size, and full production of roughly 21 million ounces would take about a year, mostly for training and rehiring, though capital costs are rising.
Q: Following the September reserve
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
