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Jun 30
Pan American Silver Q2 2025 Earnings Report
Pan American Silver reported record net earnings and free cash flow in the second quarter of 2025, driven by strong mine operating earnings and increased silver production.
Key Takeaways
Pan American Silver delivered a robust performance in Q2 2025, achieving record net earnings of $189.6 million and record free cash flow of $233.0 million. The company also increased its dividend by 20% and maintained its 2025 operating outlook, demonstrating strong financial health and operational efficiency.
Record net earnings of $189.6 million and basic EPS of $0.52, significantly up from a net loss in the prior year.
Achieved record free cash flow of $233.0 million, contributing to a record cash balance of $1.1 billion.
Increased quarterly dividend by 20% to $0.12 per common share, reflecting strong financial performance and commitment to shareholder returns.
Maintained 2025 production and cost guidance, with gold production expected to be weighted towards the fourth quarter.
Pan American Silver
Pan American Silver
Forward Guidance
Pan American Silver reaffirms its 2025 operating outlook for annual production, AISC, and capital expenditures, with gold production expected to be more heavily weighted to the fourth quarter.
Positive Outlook
- Reaffirms 2025 annual production guidance for silver (20.00 – 21.00 million ounces) and gold (735 – 800 thousand ounces).
- Reaffirms 2025 AISC guidance for Silver Segment ($16.25 – $18.25 per ounce) and Gold Segment ($1,525 – $1,625 per ounce).
- Reaffirms 2025 sustaining capital expenditures guidance ($270.0 – $285.0 million).
- Reaffirms 2025 project capital expenditures guidance ($90.0 – $100.0 million).
- Anticipated acquisition of MAG Silver Corp. is expected to significantly increase silver production and reduce all-in sustaining costs.
Challenges Ahead
- Gold production is expected to be more heavily weighted to the fourth quarter of 2025, with some Q3 production deferred.
- No detailed timeline or completion date for the Escobal ILO 169 Consultation Process.
- Transaction with MAG Silver Corp. is subject to customary closing conditions, including Mexican anti-trust laws.
- Operational risks and hazards inherent with mining business, including environmental accidents and equipment breakdown.
- Fluctuations in metal prices and currency markets could impact financial performance.