PAAS Strengthens Portfolio With MAG Silver Buyout Completion

Pan American Silver Corp. PAAS announced that it completed its previously stated acquisition of MAG Silver Corp. MAG. This move boosts Pan American’s position as one of the leading silver producers globally and significantly strengthens the company’s industry-leading silver reserve base.

Details on Pan American Silver-MAG Silver Deal

PAAS inked an agreement with MAG Silver on May 11, 2025. As part of the deal, Pan American Silver gains a 44% stake in the Juanicipio project, which is a large-scale, high-grade silver mine in Zacatecas operated by Fresnillo plc. The Juanicipio mine is expected to produce 14.7-16.7 million ounces of silver in 2025.

The transaction also adds the full ownership of the Larder exploration project and a full earn-in interest in the Deer Trail exploration project to PAAS’s portfolio. The addition of these assets will contribute significantly to Pan American Silver’s production, reserves and cash flow.

On Aug. 25, 2025, the company cleared the final regulatory hurdle for its acquisition — gaining approval from Mexico’s Federal Economic Competition Commission. 

MAG Silver shareholders received $500 million in cash under the terms of the transaction. The transaction also included 60.2 million Pan American shares in exchange for MAG Silver shares. Former MAG shareholders hold 14.3% of Pan American's outstanding shares on a fully diluted basis post the deal completion.

PAAS Q2 Performance

Pan American Silver reported adjusted earnings of 43 cents in the second quarter of 2025, beating the Zacks Consensus Estimate of 40 cents. The company posted EPS of 11 cents in the year-ago quarter. 

The company’s revenues increased 18% year over year to $812 million. The top line beat the Zacks Consensus Estimate of $782 million.

Second-quarter silver production reached 5 million ounces, matching the output from the same period last year. Gold production for the quarter came in at 182.2 thousand ounces. It was lower than the 222.9 thousand ounces produced in the year-ago quarter.

Pan American Silver Stock’s Price Performance

In the past year, PAAS shares have surged 83.4% compared with the industry's 72.1% growth.

PAAS Zacks Rank & Stocks to Consider

The company currently has a Zacks Rank of 3 (Hold). Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS and Idaho Strategic Resources IDR. CRS flaunts a Zacks Rank #1 (Strong Buy) at present and IDR carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carpenter Technology has an average trailing four-quarter earnings surprise of 8.4%. The Zacks Consensus Estimate for CRS’s 2025 earnings is pegged at $9.36 per share. Its shares surged 68% last year.

Idaho Strategic Resources has an average trailing four-quarter earnings surprise of 2.6%. The Zacks Consensus Estimate for its 2025 earnings is pegged at 76 cents per share, indicating year-over-year growth of 13.4%. IDR shares skyrocketed 110% last year.

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This article originally published on Zacks Investment Research (zacks.com).

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