Latest news with #PAAS
Yahoo
3 days ago
- Business
- Yahoo
Will PAAS Unlock More Value Through Its MAG Silver Acquisition?
Pan American Silver Corp. PAAS is set to acquire MAG Silver Corp. MAG in a $2.1 billion deal aimed at boosting reserves, enhancing cash flows and further solidifying its position in the silver mining industry. This will add to PAAS' solid track record of acquisitions, Yamana Gold in 2023 and Tahoe Resources in 2019, which significantly added to its scale and improved profitability. MAG Silver is scheduled to hold a special shareholder meeting on July 10 to approve the deal, which has already received the green signal from the boards of both companies. Regulatory approvals remain, including antitrust clearance from Mexican authorities. The cornerstone of the acquisition is MAG's 44% stake in the Juanicipio project, known as the world's largest-scale, highest-grade and lowest-cost primary silver mine. For Pan American, the MAG Silver acquisition presents a transformative opportunity not only through Juanicipio's production profile but also its long-term exploration potential as well as additional assets like Deer Trail and Larder. Juanicipio is forecasted to produce 14.7-16.7 million ounces of silver in 2025. Pan American's 44% share will translate to approximately 6.5–7.3 million ounces. This will add to PAAS' guided 2025 production of 20–21 million ounces (excluding Juanicipio). Juanicipio is also expected to drive a meaningful reduction in Pan American Silver's all-in sustaining costs (AISC) for the silver segment. The company reported a silver segment AISC of $13.94 per ounce in the first quarter of 2025 and guided a higher $16.25-$18.25 for 2025, levels that the low-cost Juanicipio mine could help ease. Juanicipio is expected to add 58 million ounces to PAAS' proven and probable silver reserves, which stood at 468 million ounces as of June 30, 2024. It is expected to contribute a free cash flow of $98 million to Pan American Silver this year. The figure is expected to grow 23% over the next three years. In January, First Majestic Silver AG acquired Gatos Silver, Inc. With this move, First Majestic gained 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine. In February, Coeur Mining CDE completed the acquisition of Silvercrest. The acquisition added SilverCrest's high-grade, low-cost Las Chispas underground mine in Sonora, Mexico, to Coeur Mining's portfolio, improving its cost and margin profile. The Pan American Silver and MAG Silver combination will create a company with a combined market capitalization of around $12.6 billion, way higher than First Majestic and Coeur Mining. Year to date, PAAS shares have gained 41.8%, outpacing the industry's 34.8% growth. In comparison, the Basic Materials sector has risen 10.1%, while the S&P 500 has moved up 2.1%. Image Source: Zacks Investment Research PAAS is currently trading at a forward 12-month price-to-earnings multiple of 17.25X compared with the industry average of 18.47X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Pan American Silver's earnings for 2025 and 2026 has moved up 20% and 7%, respectively, over the past 90 days. The consensus mark for 2025 earnings is pegged at $1.47 per share, indicating a year-over-year surge of 86%. The estimate for 2026 of $1.89 indicates an increase of 28.7%. Image Source: Zacks Investment Research PAAS stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Coeur Mining, Inc. (CDE) : Free Stock Analysis Report Pan American Silver Corp. (PAAS) : Free Stock Analysis Report First Majestic Silver Corp. (AG) : Free Stock Analysis Report MAG Silver Corporation (MAG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-06-2025
- Business
- Yahoo
Why Pan American Silver Corp. (PAAS) Soared On Thursday
We recently published a list of . In this article, we are going to take a look at where Pan American Silver Corp. (NYSE:PAAS) stands against other best-performing stocks on Thursday. Pan American Silver rallied for a fifth consecutive day on Thursday, jumping 7.56 percent to close at $28.60 apiece, in line with silver prices hitting a new all-time high. Silver futures rose to as high as $36.27 per troy ounce at intra-day trading on Thursday, its highest since 2012, before closing lower to $35.81 per troy ounce. Silver prices grew alongside gold, as investors' funds flocked to safer assets anew to mitigate the risks from the ongoing trade tensions between the US and China. A large drill in operation deep in a mine, surrounded by the machinery of a modern extraction site. Pan American Silver Corp. (NYSE:PAAS) is a Canada-based silver and gold miner with operations throughout the Americas. In the first quarter of the year, Pan American Silver Corp. (NYSE:PAAS) swung to a net income of $169.3 million from a $30.8 million net loss in the same period last year. Revenues increased by 28 percent to $773.2 million from $601.4 million year-on-year. Overall, PAAS ranks 9th on our list of best-performing stocks on Thursday. While we acknowledge the potential of PAAS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-06-2025
- Business
- Yahoo
Pan American Silver Hits 52-Week High: How to Play the Stock?
The Pan American Silver Corp. PAAS stock hit a 52-week high of $28.88 yesterday before closing the session a tad lower at $28.60. The stock jumped 7.6% yesterday, fueled by silver prices climbing above $36 per ounce, the highest levels since February 2012. The rise was driven by soft U.S. economic data and a dovish stance from the Federal Reserve, boosting safe-haven demand. The rally lifted other silver miners as well, with Endeavour Silver Corp. EXK and Hecla Mining Company HL gaining 7.6% and 5.6%, respectively, yesterday. Year to date, PAAS shares have gained 41.5%, outpacing the industry's 26.1% growth. In comparison, the Basic Materials sector has risen 9.2%, while the S&P 500 has inched up 0.9%. Image Source: Zacks Investment Research Pan American Silver has also outscored Endeavour Silver's and Hecla Mining Company's year-to-date gains of 31.4% and 24.4%, respectively. Image Source: Zacks Investment Research Image Source: Zacks Investment Research The Pan American Silver stock is trading above its 50-day and 200-day moving averages, indicating solid upward momentum and price stability. This reflects a positive market sentiment and confidence in the company's financial health and long-term prospects. While this rally may tempt investors to jump in, it is important to assess the underlying drivers and its sustainability, as well as the company's growth prospects and potential risks, before making any investment decision. Solid Trend in Silver & Gold Prices: Silver prices have gained 25% year to date, supported by several factors like rising economic and geopolitical uncertainties, as well as solid demand amid expectations of a tight supply. Gold has also rallied 28% year to date, riding on the escalating tariff tensions and geopolitical uncertainties. Weak U.S. economic data lifted both gold and silver safe-haven demand, pushing silver to $36.20 and gold to around $3,370 per ounce. Per the Silver Institute, the silver market is expected to record another deficit in 2025 (117.6 million ounces) for the fifth consecutive year, which bodes well for silver prices. This demand-supply imbalance holds good for gold. Apart from this, gold prices are likely to continue to gain, aided by increased purchases by central banks, hopes of interest rate cuts and geopolitical tensions. Pending Acquisition of MAG Silver: Pan American Silver recently inked a deal to acquire MAG Silver Corp. MAG for $2.1 billion. Through this move, PAAS will gain access to the large-scale, high-grade Juanicipio mine in Mexico, in which MAG Silver has a 44% stake. The company sees growth opportunities through the significant exploration potential at Juanicipio, as well as MAG Silver's Deer Trail and Larder deal, expected to close in the second half of 2025, will position Pan American Silver as a leading Americas-focused silver producer. It will add 58 million ounces of silver to its proven and probable reserves. Juanicipio is expected to produce 14.7-16.7 million ounces of silver in 2025 (or 6.5-7.3 million ounces on a 44% basis). It is expected to generate a free cash flow of $200 million in 2025 (on a 100% basis). Solid Q1 Results: PAAS witnessed a 28.6% year-over-year increase in revenues to $773 million, attributed to higher gold and silver prices. Lower costs and higher metal prices resulted in a record $250.8 million in mine operating earnings and $112.6 million in free cash flow. Adjusted earnings per share were 42 cents, a significant improvement from earnings of 1 cent in the year-ago quarter. Stronger Output Expected in 2H25: Silver production was 5 million ounces and gold output was at 182.2 thousand ounces in the first quarter. The company remains on track to meet its 2025 guidance of 20-21 million ounces of silver and 735,000-800,000 ounces of gold, with output expected to rise in the second half of the year. Silver production is anticipated to ramp up as mining moves to higher-grade ore zones at Cerro Moro. Gold output is also forecast to climb later in the year, supported by higher grades at Cerro Moro and Minera Florida; increased throughput at Minera Florida; and leach sequencing at Shahuindo, resulting in higher recovery rates. The Zacks Consensus Estimate for Pan American Silver's earnings for 2025 and 2026 has moved up 20% and 11%, respectively, over the past 90 days. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.) Image Source: Zacks Investment Research The consensus mark for 2025 earnings is pegged at $1.47, suggesting a year-over-year surge of 86%. The estimate for 2026 of $1.89 indicates an increase of 28.7%. Image Source: Zacks Investment Research PAAS has solidified its position as a leading precious metal producer in the Americas with a diversified asset base. The company has been rationalizing its portfolio following the Yamana acquisition (in 2023), strategically investing in its producing mines while advancing organic opportunities. Notable achievements include ventilation upgrades at its La Colorada silver mine in Mexico, which enabled a 51% increase in silver production and an 18% reduction in all-in-sustaining costs (AISC) in the second half of 2024 compared with the first half. PAAS completed the construction of a new filter plant and filter-stack tailings storage facility at its Huaron mine in Peru, providing additional capacity while enhancing environmental performance. At the Timmins operation in Canada, the company completed the construction of a paste backfill plant at the Bell Creek mine. That plant is now fully operational and is expected to provide enhanced ground stability and increased mineral resource recovery. Pan American Silver remains focused on progressing initiatives to further increase shareholder value, including the optimization study for Jacobina and the development of the La Colorada Skarn. Pan American Silver owns the Escobal mine in Guatemala, which is regarded as one of the world's top silver assets. Prior to its suspension in 2017, the mine delivered three consecutive years of annual output of around 20 million ounces, with AISC below $10 per ounce. Operations were halted following a ruling by Guatemala's constitutional court, which mandated that the ministry of energy and mines complete an ILO 169 consultation with the Xinka indigenous people before reinstating the mining license. Escobal remains on care and maintenance, with no clear timeline for the consultation's conclusion or a potential restart of operations. PAAS is currently trading at a forward 12-month price-to-earnings multiple of 17.45X, a premium to the industry average of comparison, Endeavour Silver offers a more discounted valuation at 14.65X. Meanwhile, Hecla Mining trades at a much higher multiple of 38.26X. Pan American Silver is well-positioned to capitalize on the ongoing rally in gold and silver prices, along with its strong production outlook. The planned acquisition of MAG Silver and continued investment in growth initiatives strengthen its long-term prospects. However, uncertainty around the restart of the Escobal mine remains a risk. Existing shareholders may consider holding their positions to benefit from PAAS's long-term potential and exposure to precious metals. Given the stock's premium valuation, new investors may prefer to wait for a better entry point. The stock's Zacks Rank #3 (Hold) supports our thesis. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hecla Mining Company (HL) : Free Stock Analysis Report Pan American Silver Corp. (PAAS) : Free Stock Analysis Report Endeavour Silver Corporation (EXK) : Free Stock Analysis Report MAG Silver Corporation (MAG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
24-05-2025
- Business
- Yahoo
Jim Cramer Says Pan American Silver (PAAS) 'is Dynamite'
We recently published a list of . In this article, we are going to take a look at where Pan American Silver Corp. (NYSE:PAAS) stands against other stocks that Jim Cramer discussed recently. A caller inquired about Pan American Silver Corp. (NYSE:PAAS), and Cramer said: 'Well, first, I want to give the same shout-out because that business… is dynamite. I happen to like silver very much, and… Pan American silver is the best silver mine. So I think you've got something going there. I'm with you…' A large drill in operation deep in a mine, surrounded by the machinery of a modern extraction site. Pan American Silver Corp. (NYSE:PAAS) focuses on the exploration, development, and operation of mines, handling everything from extraction to refining. The company targets deposits of silver, gold, zinc, lead, and copper. On May 13, TD Securities cut its price target on PAAS to $26 from $30 and maintained a Hold rating. The firm called the MAG acquisition 'transformational' for giving Pan American access to a 'Tier I' primary silver asset. It expects concerns around the Escobal restart due to the timing of the deal and the 'full valuation' paid for MAG. Overall, PAAS ranks 7th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of PAAS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PAAS and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-05-2025
- Business
- Yahoo
Jim Cramer Says Pan American Silver (PAAS) 'is Dynamite'
We recently published a list of . In this article, we are going to take a look at where Pan American Silver Corp. (NYSE:PAAS) stands against other stocks that Jim Cramer discussed recently. A caller inquired about Pan American Silver Corp. (NYSE:PAAS), and Cramer said: 'Well, first, I want to give the same shout-out because that business… is dynamite. I happen to like silver very much, and… Pan American silver is the best silver mine. So I think you've got something going there. I'm with you…' A large drill in operation deep in a mine, surrounded by the machinery of a modern extraction site. Pan American Silver Corp. (NYSE:PAAS) focuses on the exploration, development, and operation of mines, handling everything from extraction to refining. The company targets deposits of silver, gold, zinc, lead, and copper. On May 13, TD Securities cut its price target on PAAS to $26 from $30 and maintained a Hold rating. The firm called the MAG acquisition 'transformational' for giving Pan American access to a 'Tier I' primary silver asset. It expects concerns around the Escobal restart due to the timing of the deal and the 'full valuation' paid for MAG. Overall, PAAS ranks 7th on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of PAAS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PAAS and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
