Pan American Silver (PAAS) Mining Forum Americas 2026 summary

Strategic developments and financial performance

• Recent M&A activity has positioned the company to benefit from high metal prices, with Q2 revenue at $1.3 billion.

• Maintains a strong balance sheet with $1.8 billion in cash and $3.5 billion in liquidity, supporting major project expansions.

• Plans to return 35%-40% of free cash flow to shareholders, including a fixed $305 million annual dividend and $700 million in share buybacks.

• Cost increases remain controlled despite inflation and higher oil prices, with silver AISC expected in the $17-$18/oz range for the year.

• Production is back-end loaded, with Q4 typically being the strongest quarter due to seasonal factors at key mines.

Resource growth and exploration highlights

• Silver reserves updated to 511 million oz, the largest globally, with 6.3 million oz of gold also reported.

• La Colorada skarn discovery will become the largest silver mine, with phase one expected to produce over 19 million oz annually for 37 years.

• Ongoing brownfield exploration has replaced about 85% of silver production over 20 years at a low cost of $1.11/oz.

• La Colorada expansion involves a $2 billion capital spend over 4.5–5 years, with board approval for initial underground development.

• Exploration at Juanicipio and Timmins continues to extend mine life and resource base, with significant upside potential.

Project updates and operational outlook

• La Colorada’s first phase includes a 12 km underground ramp and two large shafts, targeting production ramp-up by 2030–2031.

• Project IRR for La Colorada skarn estimated between 17% and 25%, with NPV ranging from $3 billion to $6 billion.

• Timmins mine life extended to at least the mid-2040s, with shaft extension and integration of satellite deposits.

• Juanicipio, acquired at 44%, is outperforming reserve grades and has doubled its exploration program to sustain silver output.

• Shahuindo and other assets continue to deliver strong cash flow and long-term growth opportunities.