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Key Takeaways PAAS is advancing La Colorada Skarn with a phased approach focused on high-grade, lower-capital stages.The project outlines a 37-year mine life and projected annual free cash flow of $653M during ramp-up.Expanded La Colorada production is expected to average 19.1M ounces of silver annually from 2034 to 2038. Pan American Silver Corp. (PAAS - Free Report) invested $20 million of project capital in the first half of 2026 to advance its  La Colorada Skarn project in Mexico. The company plans to build a 15,000-ton-per-day selective flotation facility to process ore from both the existing La Colorada vein mine and the high-grade zones of the skarn deposit.

Pan American Silver aims to combine the mine plans and infrastructure of the La Colorada vein mine with the Skarn project through a phased development approach. With this approach, the company can focus on high-grade, low-tonnage and less capital-intensive initial stages while targeting lower-grade material in a future expansion. During the second quarter of 2026, Pan American Silver completed the first cut of the 588 Decline, a project that serves as a crucial step toward the development of the La Colorada Skarn project.

According to the Revised Preliminary Economic Assessment, the La Colorada Skarn Project outlines a large-scale, long-life operation at negative all-in sustaining costs with a projected mine life of 37 years. During the first five years of ramp-up, the project is expected to generate a free cash flow of $653 million per year.

Pan American Silver plans to continue mining at the existing La Colorada vein mine using the current infrastructure while development progresses to access new high-grade veins in the eastern Candelaria area and high-grade skarn deposit mineralization. La Colorada has the potential to become one of the top-producing silver mines in the world. The Expanded La Colorada mine production is expected to average 19.1 million ounces of silver annually over the initial five-year period (2034-2038) following commissioning and ramp-up.

This projected output for the initial five-year average is expected to significantly surpass the annual production of other major global silver mines. For comparison, La Colorada’s expected production will surpass Pan American's 44% owned Juanicipio mine, which produced 17.2 million ounces in 2025. It also has the potential to exceed the 13.8 million ounces produced by Fresnillo plc's (FNLPF - Free Report) Saucito mine, as well as the 11.1 million ounces from Buenaventura Mining's (BVN - Free Report) Uchucchacua mine.

Fresnillo produced 22 million ounces of silver in the first half of 2026, marking a year-over-year decline of 11.4%. Fresnillo’s Saucito mine faced the brunt of lower ore grade and decreased volume of ore processed during the time frame. The mine produced 6.2 million ounces of silver during the first half.

Buenaventura Mining produced 7,520,650 ounces of silver during the first half of 2026, up 2% year over year. Buenaventura Mining’s Uchucchacua mine produced 1,122,003 ounces of silver during the time frame. The mine gained due to higher-than-anticipated ore grades.

PAAS’ Price Performance, Valuation & EstimatesIn a year, PAAS shares have gained 58.7% compared with the industry's 82.2% whopping growth. In comparison, the Basic Materials sector has risen 34.1%, whereas the S&P 500 has returned 22%.

Image Source: Zacks Investment Research

PAAS is currently trading at a forward 12-month price-to-earnings multiple of 10.97X compared with the industry average of 15.80X.

Image Source: Zacks Investment Research

The consensus mark for 2026 earnings is pegged at $3.81 per share, indicating a year-over-year jump of 50%. The estimate for 2027 of $5.00 suggests an increase of 31.3%. 

The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 and 2027 have moved down over the past 60 days. 

Image Source: Zacks Investment Research

PAAS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Gold and Silver Pulled Back—Here’s Why the Bull Case Is IntactPan American Silver NYSE: PAAS reported second-quarter 2026 attributable free cash flow of $344 million and returned a record $300 million to shareholders through share repurchases and dividends, while maintaining its full-year operating outlook for silver and gold production and costs.

President and CEO Michael Steinmann said the company produced 6.5 million attributable ounces of silver during the quarter, at the high end of its quarterly guidance range, supported by performance at La Colorada and Juanicipio. The company reaffirmed its 2026 silver production guidance of 25 million to 27 million ounces.

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Silver Hits $95—These 3 Miners Could Outrun the MetalSilver segment all-in sustaining costs were $17.80 per ounce in the second quarter. Steinmann attributed the cost level primarily to higher-cost ounces from an inventory drawdown at La Colorada, higher royalties associated with mining on an adjacent third-party concession, unfavorable currency movements and higher labor-related costs.

Gold outlook shifts toward lower end of guidance Attributable gold production totaled about 166,000 ounces in the second quarter, below the company’s quarterly outlook. Pan American expects the quarter to be its weakest for gold output in 2026 and said production should be more heavily weighted toward the fourth quarter.

Gold and Silver Are on Fire—These Canadian Miners Ride the WaveWhile the company reaffirmed its full-year gold guidance range of 700,000 to 750,000 ounces, it now expects to finish at the low end of that range. It also reduced its third-quarter gold outlook to approximately 3,000 to 6,000 ounces below the lower end of its previously issued quarterly range of 178,500 to 192,000 ounces.

The revised near-term outlook reflects lower-than-expected production at Jacobina and El Peñón. At Jacobina, Pan American now expects annual gold production to be about 10,000 ounces below the low end of its original guidance range of 181,000 to 191,000 ounces.

Steinmann said the company has responded to seismic activity at Jacobina by leaving larger pillars, reducing mining rates in some higher-grade areas and increasing development to open additional mining zones. He said the seismic events had not caused injuries or infrastructure damage, and characterized the production impact as a postponement rather than a loss of reserves.

The company is also evaluating alternative mining approaches, including Avoca-type methods with waste-rock and cemented backfill, as part of an optimization program at Jacobina. Process plant upgrades, including new carbon-in-pulp tanks and electrical control systems, are expected to be commissioned this year. Pan American is studying whether to upgrade existing processing circuits or construct a new processing facility for the long-life asset.

At El Peñón, silver production remains expected to fall within its original annual guidance range of 3.65 million to 3.95 million ounces. However, gold production is now expected to be about 10,000 ounces below the low end of the prior 104,000-to-111,000-ounce range. Steinmann said lower continuity in certain secondary structures led the company to replace planned material with ore from more silver-rich and less gold-rich areas.

Financial results and liquidity Revenue was $1.1 billion in the second quarter, while attributable revenue including Pan American’s 44% interest in Juanicipio was $1.3 billion. Net earnings were $305 million, or $0.72 per share, including a $179 million tax expense. Adjusted earnings were $0.73 per share.

Cash flow from operations was $320 million after $205 million in income taxes paid and $17 million used for working capital. Attributable cash flow from operations, including Juanicipio, was $418 million.

The company raised its 2026 guidance for income taxes paid to between $585 million and $635 million, citing higher profitability from metal prices and the settlement of prior-year tax obligations. CFO Ignacio Couturier said Pan American expects its full-year effective tax rate to remain in the low-30% range, though quarterly rates may vary because of adjustments and true-ups.

Pan American ended the quarter with $1.8 billion in cash and short-term investments, including cash attributable to Juanicipio. In July, it renewed and amended its five-year senior unsecured revolving credit facility, doubling its size to $1.5 billion and adding a $750 million accordion feature. The facility was undrawn, bringing total available liquidity to about $3.2 billion.

Projects and shareholder returns At La Colorada, Pan American reached the first cut of the 588 decline in early August, advancing access to the skarn deposit. Engineering work on the material-handling system and ventilation shaft is continuing, with a design, cost estimate, schedule and recommendation expected before year-end.

At Timmins, the company is advancing the first phase of its Timmins Camp project, including the Bell Creek shaft extension and exploration drifts targeting the Vogel and Samson deposits. Pan American expects to issue updated mineral resource and reserve estimates in September and a preliminary economic assessment for the Timmins Camp project in the first half of 2027.

The company said the ILO Convention 169 consultation process for Escobal remains underway, including government and Xinka representative meetings during the quarter. Steinmann said there is no timeline for completing the consultation and no restart date for the mine.

Pan American repurchased more than 7 million shares under its normal course issuer bid through 2026 to date. The company declared a second-quarter dividend of $0.184 per common share. Steinmann said the company remains on track with its shareholder-return framework, which targets distributing approximately 35% to 40% of cash to shareholders through dividends and buybacks. Pan American also said weather associated with El Niño had disrupted road access and personnel transportation in Chile and affected operations in Argentina, though Steinmann said the impacts had not been material to operations so far. The company said it is preparing sites for potential additional rainfall while prioritizing safety.

About Pan American Silver (NYSE:PAAS)Pan American Silver Corp. NYSE: PAAS is a Vancouver-based mining company and one of the world’s largest primary silver producers. The company’s core activities encompass the exploration, development, extraction and processing of silver, with significant by-product production of gold, zinc and lead. Pan American Silver maintains a vertically integrated operating model, covering the full mining value chain from resource discovery through to refined metal production.

With a geographic footprint concentrated across the Americas, Pan American Silver operates multiple mines in Mexico, Peru, Argentina and Bolivia, and is advancing several development and exploration projects in Chile and Ecuador.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways Pan American Silver is expected to report Q2 sales of $1.16B, suggesting 43.2% y/y growth.Silver production is estimated at 6.5M ounces, up 27.1% from the year-ago quarter.Higher silver output and supportive prices are expected to boost Pan American Silver's Q2 revenues. Pan American Silver Corp. (PAAS - Free Report) is scheduled to report second-quarter 2026 results on Aug. 12, after market close.

The Zacks Consensus Estimate for Pan American Silver’s second-quarter total sales is pegged at $1.16 billion, indicating a 43.2% rise from the year-ago quarter’s actual.

The consensus mark for earnings has been moved down 22.2% in the past 60 days to 84 cents per share. This, however, suggests a 93.4% year-over-year upsurge from earnings of 43 cents.

Image Source: Zacks Investment Research

PAAS’ Earnings Surprise HistoryPan American Silver’s earnings beat the Zacks Consensus Estimates in three of the trailing four quarters and came in line in one. The company has a trailing four-quarter earnings surprise of 7.9%, on average. The trend is shown in the chart below.

Image Source: Zacks Investment Research

What the Zacks Model Unveils for Pan American SilverOur 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 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: The company currently has a Zacks Rank of 4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped PAAS’s Q2 PerformancePan American Silver maintained a strong operational footing in the first quarter of 2026, delivering a solid performance. This offers an insight into its second-quarter performance.

Pan American Silver produced 6.4 million ounces of silver in the first quarter of 2026, reflecting strong contributions from the Juanicipio mine. The company produced 5 million ounces of silver in the first quarter of 2025.

La Colorada and Cerro Moro reported higher output due to higher grades. However, Huaron reported lower numbers due to lower silver grades. Production at Dolores was down following the cessation of mining operations in July 2024 and the site transitioning into its residual leaching phase.

The Zacks Consensus Estimate for PAAS’s second-quarter 2026 silver production is 6.5 million ounces, indicating a 27.1% year-over-year rise.

It produced 169.2 thousand ounces of gold in the first quarter of 2026. The figure marks a decrease from the 182.2 thousand ounces produced in the prior-year quarter. The production was impacted by the loss of Dolores' contribution. Production at the El Peñon mine also fell due to mine sequencing into lower-grade ore zones and a higher proportion of low-grade stockpile ore processed.

The Zacks Consensus Estimate for PAAS’s second-quarter gold production is 176 thousand ounces, indicating a 1.1% year-over-year decline.

The year-over-year increase in silver output, along with higher prices, will likely translate to higher revenues in the quarter.

Even though gold and silver prices have dropped since peaking in January 2026, they have remained supportive. The combination of higher prices is expected to have enhanced Pan American Silver’s top-line performance in the quarter.

Pan American Silver Stock’s Price PerformanceIn the past year, PAAS shares have surged 64.6% compared with the industry's 79.4% growth.

Image Source: Zacks Investment Research

PAAS’ Peer PerformancesEndeavour Silver Corporation (EXK - Free Report) reported adjusted earnings of 15 cents per share for the second quarter of 2026 against an adjusted loss of 3 cents incurred in the prior-year quarter. The bottom line met the Zacks Consensus Estimate.

Endeavour Silver’s revenues skyrocketed 149.4% to $212 million from $85 million in the second quarter of 2025. The top line beat the Zacks Consensus Estimate of $201 million.

First Majestic Silver Corp (AG - Free Report) posted earnings per share of 21 cents for second-quarter 2026, which missed the Zacks Consensus Estimate of 25 cents. AG posted earnings of 4 cents per share in the year-ago quarter.

First Majestic Silver’s revenues rose 57.2% year over year to $415 million in the quarter under review.

Buenaventura Mining Company (BVN - Free Report) reported second-quarter 2026 adjusted earnings per share of 94 cents, missing the Zacks Consensus Estimate of 98 cents. BVN posted earnings of 40 cents per share in the year-ago quarter.

Buenaventura Mining’s revenues jumped 43.4% year over year to $529 million in the quarter under review. The top line missed the Zacks Consensus Estimate of $596 million.

In the latest trading session, Pan American Silver (PAAS - Free Report) closed at $42.19, marking a +1.01% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.19% for the day. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.

The stock of silver mining company has fallen by 14.76% in the past month, lagging the Basic Materials sector's loss of 9.42% and the S&P 500's gain of 0.55%.

Analysts and investors alike will be keeping a close eye on the performance of Pan American Silver in its upcoming earnings disclosure. The company's earnings report is set to go public on August 12, 2026. The company's upcoming EPS is projected at $0.93, signifying a 116.28% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.21 billion, reflecting a 48.47% rise from the equivalent quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.02 per share and revenue of $4.92 billion. These totals would mark changes of +58.27% and +36.09%, respectively, from last year.

Any recent changes to analyst estimates for Pan American Silver should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 13.47% fall in the Zacks Consensus EPS estimate. Currently, Pan American Silver is carrying a Zacks Rank of #5 (Strong Sell).

In the context of valuation, Pan American Silver is at present trading with a Forward P/E ratio of 10.39. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 10.39.

It is also worth noting that PAAS currently has a PEG ratio of 3.89. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Mining - Silver industry currently had an average PEG ratio of 3.89 as of yesterday's close.

The Mining - Silver industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 102, placing it within the top 42% of over 250 industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.