Pan American Silver Revenue Hits $1.1 Billion in Second Quarter
The company reported attributable free cash flow of $344 million for the second quarter of 2026, compared to $234 million in the prior year period.
Pan American Silver Corp. (PAAS), the precious metals miner, reported revenue of $1.124 billion for the second quarter of 2026, up from $812 million in the second quarter of 2025. Net earnings for the period were $305 million, compared to $190 million a year earlier, resulting in basic earnings of $0.72 a share.
Revenue growth was primarily driven by a 116% increase in the average realized silver price and a 33% increase in the average realized gold price. These gains were partially offset by an 11% decrease in gold sales volume, which the company attributed to lower production at Jacobina, Shahuindo, El Peñon, and Dolores. For the first half of 2026, revenue rose to $2.278 billion from $1.585 billion in the first half of 2025.
Attributable silver production for the second quarter rose to 6.47 million ounces from 5.09 million ounces in the prior year. This increase was largely due to the acquisition of a 44% interest in Juanicipio, which contributed 1.74 million ounces, and higher grades at Cerro Moro. Conversely, attributable gold production fell to 165.9 thousand ounces from 178.7 thousand ounces. The company cited planned mine sequencing at Shahuindo, geotechnical risk mitigation at Jacobina, and the exhaustion of high-grade areas at El Peñon as the primary drivers for the gold decline.
Cash flow from operations reached $320 million in the second quarter of 2026. Attributable cash flow from operations, which includes the Juanicipio share, was $418 million. The company returned $300 million to shareholders during the quarter, consisting of $76 million in dividends at $0.18 a share and approximately $224 million used to repurchase 4.352 million common shares at an average price of $51.46 a share.
Liquidity remained strong with working capital of $1.755 billion as of June 30, 2026, including $1.705 billion in cash, cash equivalents, and short-term investments. Total debt stood at $841 million. On July 22, 2026, the company doubled its senior unsecured revolving credit facility to $1.500 million and extended the term by five years.
Looking forward, the company increased its guidance range for taxes paid to between $585 million and $635 million, citing higher profitability from metal prices. Gold production at El Peñon is now expected to be approximately 10 thousand ounces below the low end of the original annual guidance range of 104 thousand to 111 thousand ounces. The company also plans to release a preliminary economic assessment for the Timmins Camp Project in the first half of 2027.