Pan American Silver (TSX:PAAS) Refreshes Reserves, Is The 25% Undervaluation Case Intact?

Americas Gold and Silver (USAS) fell 11%, Coeur Mining (CDE) 8%, Wheaton Precious Metals (WPM) 6%, and Pan American Silver (PAAS) 6% as silver prices dropped. The decline followed attacks in the Strait of Hormuz, pushing oil prices higher and increasing bets on a December Fed rate hike. Americas Gold and Silver reported record quarterly silver output but has negative operating margins since 2021, making it vulnerable to silver price declines.

On October 14, silver fell 6% and gold dropped below $4,100 after higher-than-expected US inflation data. The US consumer price index rose 0.6% month-on-month and 3.7% year-on-year, exceeding forecasts. This led to higher US bond yields, a stronger dollar, and increased expectations of Federal Reserve tightening. The GLD gold fund declined 1.49% to $375.99, while the SLV silver fund fell 6.11% to $50.22. Shares of Pan American Silver and Buenaventura also dropped.

Pan American Silver Corp. (PAAS) announced that Charles Jeannes will retire from its board of directors effective October 31, 2026. Jeannes joined the board in 2019 and is stepping down to focus on his role as chair of Equinox Gold Corp. The company's chair and CEO thanked him for his contributions. Pan American Silver operates mines in several countries and has interests in key mining projects.

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.