PAAS · Pan American Silver Corp

Pan American Silver Corp. delivered robust Q1 2026 results with revenue surging 49% to $1.154 billion from $773 million in Q1 2025, propelled by significantly higher realized prices—silver at $89.43/oz versus $31.25/oz and gold at $4,859/oz versus $2,868/oz—alongside contributions from the September 2025 MAG Acquisition adding a 44% interest in the low-cost Juanicipio mine. Mine operating earnings jumped to $608 million from $251 million, reflecting improved margins despite stable production costs around $381 million. Net earnings of $456 million ($1.08/share) more than doubled prior-year figures, bolstered by $88 million income from Juanicipio equity investment and $22 million investment income, offset by higher income taxes of $185 million. Operating cash flow strengthened to $505 million from $177 million, fueled by earnings growth and modest working capital use, enabling $280 million cash build to a record $1,495 million. Attributable metrics, including $1.332 billion revenue and 6.44 Moz silver production (up 29%), underscore Juanicipio's impact, with Silver Segment AISC dropping to $6.63/oz from $13.88/oz due to by-product credits and low-cost ounces. Management reaffirmed 2026 production guidance while raising La Colorada Skarn project spending to $92-95 million, signaling growth commitment. The new shareholder return framework targets 35-40% of attributable free cash flow (Q1: $488 million) for returns, projecting up to $1 billion in 2026 via $305 million dividends and NCIB buybacks, balancing growth investments like the $265 million approved 588 Decline Project at La Colorada.