Pan American Silver Sees Price-Cost Spread Top $51 as Silver Surges

Pan American Silver (PAAS) reported its mineral reserves and resources as of June 30, 2026. P&P reserves include 511.1M oz of silver and 6.3M oz of gold. M&I resources total 1,126.7M oz of silver and 7.5M oz of gold. Inferred resources are 437.0M oz of silver and 7.2M oz of gold. The company replaced over 100% of silver extracted and added reserves from its 44% stake in Juanicipio. Exploration success at La Colorada, Jacobina, and Timmins contributed to the growth. The company completed 351,000

Cadillac Mines (TSX: CD) completed the acquisition of Pan American Silver's Larder property, issuing 15 million shares in exchange. Pan American now owns 6% of Cadillac's shares. The Larder property, contiguous to Cadillac's Kerr-Addison property, contains historical gold resources. Cadillac CEO Rick Howes welcomed Pan American as a strategic shareholder and plans to deploy drill rigs to the property.

Federal Reserve Chair Kevin Warsh's hawkish remarks on inflation caused a sharp decline in precious metals mining stocks. First Majestic Silver (AG) led the drop, falling 5.09%, while other miners like AngloGold Ashanti (AU) and Barrick Mining (B) also saw significant decreases. Warsh's comments pushed up interest-rate expectations, increasing the opportunity cost of holding non-yielding assets like gold and silver.

Pan American Silver (PAAS) reported Q2 2026 adjusted EPS of 73 cents, up 69.8% YoY but below the Zacks Consensus of 84 cents. Revenue rose 38.4% YoY to $1.12B, missing $1.16B. Silver and gold prices increased, with silver production up 27% YoY. Mine-operating earnings were $457M. The company reaffirmed its 2026 outlook and returned $300M to shareholders.

Pan American Silver (NYSE:PAAS) reported Q2 2026 results, including $344 million in attributable free cash flow and a record $300 million returned to shareholders. Silver production was 6.5 million ounces at the high end of guidance; gold was ~166,000 ounces, below outlook. The company reaffirmed silver guidance, but expects full-year gold at the low end of 700,000 to 750,000 ounces after seismic impacts at Jacobina and issues at El Peñón.

Pan American Silver shares fell about 10% after the company reported Q2 results released after the prior close. Revenue rose to $1.12B from $812M, and adjusted net income increased to $308M, or $0.73/share, but missed consensus revenue ($1.16B) and adjusted EPS ($0.92). Production met guidance for silver but gold output lagged and full-year production guidance is at the low end.