Pan American Silver (PAAS) Mining Forum Europe 2026 summary

Strategic project updates

• Acquisition of MAG Silver added a 44% stake in Juanicipio, one of the world's top silver mines.

• La Colorada skarn project is set to become the largest and lowest-cost silver mine globally, with phase I targeting 37 years of production and potential for over 50 years.

• Ongoing exploration at La Colorada has identified new high-grade veins, increasing projected silver output to nearly 20 million oz annually.

• Expansion at Jacobina gold mine in Brazil aims to increase daily throughput, with a mine plan extending to 2053.

• Escobal mine in Guatemala is ready for restart pending completion of indigenous consultations, requiring $80–$100 million in working capital and six months to resume production.

Financial performance and capital allocation

• Capital for La Colorada expansion reduced to $1.9 billion, fully fundable from internal cash flow.

• Over $2 billion in liquidity and $1.4 billion in cash projected by end of 2025, supporting major projects and shareholder returns.

• $283 million debt due next year will be paid off, with no need for refinancing.

• Consistent dividend increases and share buybacks, with 35–36% of free cash flow returned to shareholders since 2010.

• Asset sales totaling $1.4 billion in recent years, with further divestitures considered as market conditions stabilize.

Industry outlook and market positioning

• Silver demand is rising rapidly due to industrial uses, now consuming 65% of global production.

• Limited new supply expected, as most silver is a by-product of copper mining and few new copper projects are coming online.

• La Colorada and Escobal are positioned as the only significant new silver sources in the near term, supporting a bullish outlook for silver prices.

• Cost structure remains competitive, with new projects expected to further lower all-in sustaining costs and boost margins.

• Portfolio optimization continues, focusing on high-quality, long-life assets and sustainable production.