Pan American Silver (NYSE:PAAS) executives highlighted what they described as record quarterly and annual results for 2025, driven by strong operating execution and the impact of higher metal prices, during the company’s fourth-quarter and full-year earnings call.
Record earnings and cash flow in 2025
President and CEO Michael Steinmann said the company delivered “record financial results across the board” in the fourth quarter and full year. Net earnings were a record $452 million in Q4, or $1.07 per basic share, including $61 million of income from Pan American’s investment in Juanicipio. For the full year, net earnings were a record $980 million, or $2.56 per basic share.
Steinmann also pointed to record attributable free cash flow of $553 million in Q4 and $1.2 billion for 2025. He said cash and short-term investments increased by $408 million from Q3 to $1.3 billion at year-end, or $1.4 billion including Pan American’s 44% interest in Juanicipio cash.
To “allow shareholders to participate directly in rising net cash levels,” Steinmann said the board declared a dividend of $0.18 per common share, the company’s third consecutive dividend increase.
Production and costs: silver beats guidance; Juanicipio a key contributor
Pan American reported attributable silver production of 22.8 million ounces in 2025, which Steinmann said exceeded the top end of the guidance range that had been increased in November. Attributable gold production of 742,200 ounces was within guidance.
For the silver segment, all-in sustaining costs (AISC), excluding net realizable value (NRV) inventory adjustments, were $9.51 per ounce in Q4 and $13.88 per ounce for the full year. Steinmann said 2025 silver AISC came in below the company’s reduced guidance, citing Juanicipio’s performance since Pan American acquired the mine in September 2025 through the MAG Silver transaction.
For the gold segment, AISC excluding NRV adjustments were $1,699 per ounce in Q4 and $1,621 per ounce for the full year, within 2025 guidance, management said.
Steinmann noted both silver and gold segment costs in Q4 were impacted by higher royalties and worker participation expenditures tied to higher metal prices. He also discussed specific royalty impacts, including additional royalties at La Colorada related to mining an adjacent concession (treated as royalty expense based on net profits from ore mined on that concession) and profit-sharing impacts at San Vicente with Bolivia’s state-owned mining company COMIBOL.
Project updates: La Colorada Skarn approach revised; Escobal consultation ongoing
The company said it invested $94 million in 2025 to advance major projects, in line with guidance. Steinmann highlighted La Colorada, where discoveries of multiple high-grade silver zones and expanded mineral resources prompted Pan American to reevaluate development plans for the Skarn project.
Steinmann said the company now sees an opportunity to integrate mine plans and infrastructure of the La Colorada vein mine with the Skarn project through a phased approach, beginning with “higher grade, lower tonnage, and less capital-intensive” development, with an option to target lower-grade material in a future expansion.
Management expects to release an updated technical report for La Colorada in Q2 2026, including a preliminary economic assessment (PEA) reflecting the new approach, and said it is continuing discussions with potential partners incorporating the proposed changes. On the Q&A, Steinmann said the original PEA contemplated up to 50,000 tons per day, while the phased plan is expected to focus initially on significantly lower tonnage but higher grades. He indicated investors should “probably expect somewhere in the 10,000–15,000 ton kind of range for phase one,” which he said could last “way more than a decade” and be oriented toward silver production before any later move to larger, more base-metal-rich output.
At Jacobina, Steinmann said 2025 investment focused on operational reliability and longer-term initiatives including plant upgrades, tailings filtration, and a filter stack and paste backfill plant.
Regarding Escobal in Guatemala, Steinmann said the Ministry of Energy and Mines continued meetings in Q4 2025 to advance the ILO 169 consultation process and posted an update in December covering October 2024 through November 2025. He added the ministry conducted an inspection in Q4 and confirmed Pan American’s activities comply with the court order and suspension of operations. Management reiterated there is no timeline for completion of the consultation process and no restart date.
2026 guidance: higher silver output, updated project catalysts
For 2026, Pan American guided to:
- Silver attributable production: 25–27 million ounces
- Silver segment AISC: $15.75–$18.25 per ounce
- Gold attributable production: 700,000–750,000 ounces
- Gold segment AISC: $1,700–$1,850 per ounce
Steinmann said higher silver production is expected partly from a full-year contribution from Juanicipio and mine sequencing into higher silver grades at Cerro Moro. For gold, he cited higher grades at Timmins and a full year of production from Juanicipio, offset by lower contributions from Dolores as residual leaching declines and at El Peñon from exhaustion of low-grade stockpiles and lower processed ore tons.
He said AISC guidance reflects higher metal price assumptions that increase royalties, worker participation payments, and smelting and refining costs tied to price participation. Steinmann argued that higher metal prices “far outweigh” these added costs.
Looking ahead, Steinmann outlined several “meaningful catalysts” for 2026, including potential for strong free cash flow if metal prices remain above recent averages, the release of the updated La Colorada Skarn PEA in Q2 2026, and progress on a Jacobina optimization study.
Q&A highlights: Juanicipio dividends and capital allocation
In response to analyst questions, Steinmann said Pan American’s experience at Juanicipio since taking over in mid-September has been “great,” noting the deposit’s zonation over time from precious metals toward more base metals at depth, while also pointing to ongoing exploration as a source of new, higher precious-metal-content veins.
Chief Financial Officer Ignacio (last name not provided in the transcript excerpt) said Pan American’s share of a Juanicipio dividend received in Q4 was about $44 million. He said the timing is driven by the cycle of financial statements and tax returns in Mexico, and that after Juanicipio pays taxes and books its tax return in Q1, Pan American expects another dividend “higher than the one we received in Q4.”
Ignacio also said the company periodically evaluates early repayment or repurchase opportunities for its $278 million of senior notes maturing in 2027 with a 4.6% coupon, but noted the bonds are not very liquid and the decision ties into broader capital allocation considerations.
In closing remarks, Steinmann reiterated that higher metal prices and increased silver production are expected to support 2026 performance, while pointing to upcoming updates on La Colorada Skarn and Jacobina as the year progresses.
About Pan American Silver (NYSE:PAAS)
Pan American Silver Corp. (NYSE: PAAS) is a Vancouver-based mining company and one of the world’s largest primary silver producers. The company’s core activities encompass the exploration, development, extraction and processing of silver, with significant by-product production of gold, zinc and lead. Pan American Silver maintains a vertically integrated operating model, covering the full mining value chain from resource discovery through to refined metal production.
With a geographic footprint concentrated across the Americas, Pan American Silver operates multiple mines in Mexico, Peru, Argentina and Bolivia, and is advancing several development and exploration projects in Chile and Ecuador.
