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Pan American Silver Gears Up to Report Q2 Earnings: What to Expect?
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Key Takeaways
{\"0\":\"PAAS is expected to report $782.1M in Q2 sales, up 14% from the year-ago quarter.\",\"1\":\"Earnings are forecast to rise 263.6% to $0.40 per share, with silver output up 10%.\",\"2\":\"Lower silver AISC and a 16% silver price jump likely boosted quarterly performance.\"}
The Zacks Consensus Estimate for Pan American Silver’s second-quarter total sales is pegged at $782.1 million, indicating a 14% increase from the year-ago quarter.
The consensus mark for earnings has moved up 17.7% in the past 60 days and currently stands at 40 cents per share. It suggests a solid 263.6% year-over-year jump from earnings of 11 cents per share.
Image Source: Zacks Investment Research
PAAS’ Earnings Surprise History
Pan American Silver’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters but missed in one. The company has a trailing four-quarter earnings surprise of 36.7%, on average. The trend is shown in the chart below.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for Pan American Silver
Our proven model does not conclusively predict an earnings beat for Pan American Silver this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: PAAS has an Earnings ESP of -0.24%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Factors Likely to Have Shaped PAAS’ Q2 Performance
Pan American Silver began 2025 on a strong operational footing, delivering first-quarter results that met expectations and set a positive tone for the rest of the year. This offers an insight into its second-quarter performance. Silver production reached 5 million ounces, hitting the upper end of the guided range of 4.75–5 million ounces and matching the output from the same period last year.
La Colorada reported higher output owing to a significant improvement in ventilation conditions. El Peñon saw gains attributed to higher throughput, resulting from additional ore tons mined, as well as higher silver grades. Huaron reported improved numbers due to higher throughput from additional development meters and tons, but at lower grades.
These gains were offset by decreased output at Cerro Moro and San Vicente due to mine sequencing into lower silver grade zones. Production at Dolores was down following the cessation of mining operations in July 2024 and the site transitioning into its residual leaching phase.
Gold production for the quarter came in at 182.2 thousand ounces, within the guided 175–189 thousand ounces. It was lower than the 222.9 thousand ounces produced in the year-ago quarter, owing to the sale of the La Arena mine in December 2024, cessation of activity at Dolores as well as lower gold grade ores mined at Minera Florida and Shahuindo.
PAAS expects silver and gold production to ramp up through the remaining quarters of the year. It maintains its 2025 silver production at 20–21 million ounces compared with the 2024 output of 21.1 million ounces. At La Colorada, the improvement in ventilation conditions is expected to enable higher development rates, enabling throughput of up to 2,000 tons per day. At Huaron, the development of the Horizonte zone is expected to lead to higher throughput and improved silver grades. Lower output at San Vicente and the loss of contribution at Dolores will somewhat offset these positives.
The Zacks Consensus Estimate for PAAS’ second-quarter 2025 silver production is 5.0 million ounces, indicating a 10% year-over-year rise.
Gold production for 2025 is projected at 735 – 800 thousand ounces, lower than 895.5 thousand ounces in 2024, owing to the loss of contribution of La Arena mine and Dolores.
The Zacks Consensus Estimate for PAAS’ second-quarter gold production is 183.72 thousand ounces, indicating a 17% year-over-year decline.
Pan American Silver witnessed notable declines in costs for its silver segment in the first quarter. The segment’s All-in Sustaining Costs (AISC) per silver ounce came in at $13.94, 16% lower than the year-ago quarter and significantly below the expected $21.00-$22.25. For 2025, PAAS expects the silver segment’s AISC at $16.25 – $18.25 per ounce, suggesting a solid drop from the AISC of $18.98 per ounce in 2024. This outlook reflects continued cost benefits from the new ventilation infrastructure at La Colorada and higher gold by-product credits from Cerro Moro.
The gold segment’s AISC was $1,485 per ounce, down 1%. For 2025, AISC is expected to be between $1,525 and $1,625. The segment’s AISC was $1,501 per ounce in 2024.
Additionally, a favorable metals pricing environment is likely to aid PAAS’ second-quarter results. Average gold prices surged 41% year over year to $3,301 per ounce, supported by geopolitical tensions, global uncertainty and strong central bank demand. Silver prices climbed 16% during the quarter.
Overall, higher silver production, lower costs and strong metals pricing are likely to support Pan American Silver’s second-quarter 2025 results, partially offset by lower gold output.
PAAS Stock’s Price Performance
In the past year, PAAS shares have gained 37%, outpacing the industry's 25.8% growth. In comparison, the Basic Materials sector has inched up 0.3%, while the S&P 500 has moved up 20.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter.
Hudbay Minerals Inc. (HBM - Free Report) , slated to release second-quarter 2025 earnings on Aug. 13, has an Earnings ESP of +1.12% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Hudbay Minerals’ earnings for the second quarter is currently pegged at 11 cents per share. The estimate indicates a significant climb from the break-even earnings in the year-ago quarter. Hudbay Minerals has a trailing four-quarter average earnings surprise of 50%.
Triple Flag Precious Metals Corp. (TFPM - Free Report) , scheduled to release second-quarter 2025 earnings on Aug. 6, presently has an Earnings ESP of +2.80% and a Zacks Rank of 3.
Triple Flag Precious’ earnings for the second quarter are currently pegged at 21 cents per share, indicating year-over-year growth of 61.5%. Triple Flag Precious has a trailing four-quarter average earnings surprise of 6.7%.
Barrick Mining Corporation (B - Free Report) , scheduled to release second-quarter 2025 earnings on Aug. 11, has an Earnings ESP of +1.14% and a Zacks Rank of 1.
The Zacks Consensus Estimate for Barrick Mining’s earnings for the second quarter of 2025 is pegged at 47 cents per share, indicating an increase of 46.9% from the year-ago quarter’s reported figure. Barrick Mining has a trailing four-quarter average earnings surprise of 12.5%.
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Pan American Silver Gears Up to Report Q2 Earnings: What to Expect?
Key Takeaways
Pan American Silver (PAAS - Free Report) is scheduled to report second-quarter 2025 results on Aug. 6, after market close.
The Zacks Consensus Estimate for Pan American Silver’s second-quarter total sales is pegged at $782.1 million, indicating a 14% increase from the year-ago quarter.
The consensus mark for earnings has moved up 17.7% in the past 60 days and currently stands at 40 cents per share. It suggests a solid 263.6% year-over-year jump from earnings of 11 cents per share.
PAAS’ Earnings Surprise History
Pan American Silver’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters but missed in one. The company has a trailing four-quarter earnings surprise of 36.7%, on average. The trend is shown in the chart below.
Image Source: Zacks Investment Research
What the Zacks Model Unveils for Pan American Silver
Our proven model does not conclusively predict an earnings beat for Pan American Silver this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
Earnings ESP: PAAS has an Earnings ESP of -0.24%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Zacks Rank: The company currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Have Shaped PAAS’ Q2 Performance
Pan American Silver began 2025 on a strong operational footing, delivering first-quarter results that met expectations and set a positive tone for the rest of the year. This offers an insight into its second-quarter performance. Silver production reached 5 million ounces, hitting the upper end of the guided range of 4.75–5 million ounces and matching the output from the same period last year.
La Colorada reported higher output owing to a significant improvement in ventilation conditions. El Peñon saw gains attributed to higher throughput, resulting from additional ore tons mined, as well as higher silver grades. Huaron reported improved numbers due to higher throughput from additional development meters and tons, but at lower grades.
These gains were offset by decreased output at Cerro Moro and San Vicente due to mine sequencing into lower silver grade zones. Production at Dolores was down following the cessation of mining operations in July 2024 and the site transitioning into its residual leaching phase.
Gold production for the quarter came in at 182.2 thousand ounces, within the guided 175–189 thousand ounces. It was lower than the 222.9 thousand ounces produced in the year-ago quarter, owing to the sale of the La Arena mine in December 2024, cessation of activity at Dolores as well as lower gold grade ores mined at Minera Florida and Shahuindo.
PAAS expects silver and gold production to ramp up through the remaining quarters of the year. It maintains its 2025 silver production at 20–21 million ounces compared with the 2024 output of 21.1 million ounces. At La Colorada, the improvement in ventilation conditions is expected to enable higher development rates, enabling throughput of up to 2,000 tons per day. At Huaron, the development of the Horizonte zone is expected to lead to higher throughput and improved silver grades. Lower output at San Vicente and the loss of contribution at Dolores will somewhat offset these positives.
The Zacks Consensus Estimate for PAAS’ second-quarter 2025 silver production is 5.0 million ounces, indicating a 10% year-over-year rise.
Gold production for 2025 is projected at 735 – 800 thousand ounces, lower than 895.5 thousand ounces in 2024, owing to the loss of contribution of La Arena mine and Dolores.
The Zacks Consensus Estimate for PAAS’ second-quarter gold production is 183.72 thousand ounces, indicating a 17% year-over-year decline.
Pan American Silver witnessed notable declines in costs for its silver segment in the first quarter. The segment’s All-in Sustaining Costs (AISC) per silver ounce came in at $13.94, 16% lower than the year-ago quarter and significantly below the expected $21.00-$22.25. For 2025, PAAS expects the silver segment’s AISC at $16.25 – $18.25 per ounce, suggesting a solid drop from the AISC of $18.98 per ounce in 2024. This outlook reflects continued cost benefits from the new ventilation infrastructure at La Colorada and higher gold by-product credits from Cerro Moro.
The gold segment’s AISC was $1,485 per ounce, down 1%. For 2025, AISC is expected to be between $1,525 and $1,625. The segment’s AISC was $1,501 per ounce in 2024.
Additionally, a favorable metals pricing environment is likely to aid PAAS’ second-quarter results. Average gold prices surged 41% year over year to $3,301 per ounce, supported by geopolitical tensions, global uncertainty and strong central bank demand. Silver prices climbed 16% during the quarter.
Overall, higher silver production, lower costs and strong metals pricing are likely to support Pan American Silver’s second-quarter 2025 results, partially offset by lower gold output.
PAAS Stock’s Price Performance
In the past year, PAAS shares have gained 37%, outpacing the industry's 25.8% growth. In comparison, the Basic Materials sector has inched up 0.3%, while the S&P 500 has moved up 20.8%.
Image Source: Zacks Investment Research
Stocks to Consider
Here are some companies in the basic materials space, which according to our model, have the right combination of elements to post an earnings beat this quarter.
Hudbay Minerals Inc. (HBM - Free Report) , slated to release second-quarter 2025 earnings on Aug. 13, has an Earnings ESP of +1.12% and a Zacks Rank of 3.
The Zacks Consensus Estimate for Hudbay Minerals’ earnings for the second quarter is currently pegged at 11 cents per share. The estimate indicates a significant climb from the break-even earnings in the year-ago quarter. Hudbay Minerals has a trailing four-quarter average earnings surprise of 50%.
Triple Flag Precious Metals Corp. (TFPM - Free Report) , scheduled to release second-quarter 2025 earnings on Aug. 6, presently has an Earnings ESP of +2.80% and a Zacks Rank of 3.
Triple Flag Precious’ earnings for the second quarter are currently pegged at 21 cents per share, indicating year-over-year growth of 61.5%. Triple Flag Precious has a trailing four-quarter average earnings surprise of 6.7%.
Barrick Mining Corporation (B - Free Report) , scheduled to release second-quarter 2025 earnings on Aug. 11, has an Earnings ESP of +1.14% and a Zacks Rank of 1.
The Zacks Consensus Estimate for Barrick Mining’s earnings for the second quarter of 2025 is pegged at 47 cents per share, indicating an increase of 46.9% from the year-ago quarter’s reported figure. Barrick Mining has a trailing four-quarter average earnings surprise of 12.5%.