Pan American Silver Stock Hits 52-Week High: What's Driving It?

Pan American Silver Corp. PAAS stock hit a 52-week high of $45.97 on Friday before closing the session a tad lower at $45.67. The upside was fueled by record silver prices and an upbeat third-quarter performance.

PAAS currently has a market capitalization of $19.3 billion and sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

What’s Aiding PAAS Stock?

Solid Q3 Results: The company reported revenues of $855 million, reflecting 19% year-over-year growth, attributed to higher gold and silver prices. Mine operating earnings surged 78.1% to $313 million. Adjusted earnings per share were 48 cents, marking a 50% jump from the year-ago quarter.

Record Q3 Cash Flow: PAAS reported a second consecutive quarter of record cash flow in the third quarter of 2025, indicating robust operational cash generation and disciplined capital spending.

A free cash flow of $252 million in the third quarter of 2025 pushed Pan American Silver’s cash and short-term investments balance to $910.8 million. This excludes the additional $86 million in cash generated from PAAS's 44% interest at Juanicipio post the MAG Silver acquisition. At the end of the third quarter of 2025, the company had working capital of $1.01 billion and $750 million available under its credit facility.

Backed by a strong cash flow generation, PAAS recently increased its quarterly dividend 17% to 14 cents from the prior payment of 12 cents. This increase takes the company’s annualized dividend to 56 cents from the prior 48 cents.

MAG Silver Buyout: In early September, PAAS completed its previously stated acquisition of MAG Silver Corp. This move boosts Pan American Silver’s position as one of the leading silver producers globally and significantly strengthens the company’s industry-leading silver reserve base.

Pan American Silver gained 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. With just a month of contribution from its stake in the Juanicipio mine, Pan American Silver saw a strong impact on its silver segment performance and cash flow in the third quarter of 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.

Upbeat Silver Outlook: Considering a month of strong performance from its stake in the Juanicipio mine, Pan American Silver has increased its silver production outlook for 2025 to 22-25 million ounces, up from the prior stated 20-21 million ounces. The company produced 21.1 million ounces of silver in 2024.

Record Silver Prices: Silver prices have surged 88% year over year, supported by strong safe-haven demand, geopolitical tensions and escalating trade conflicts. Silver has benefited from resilient industrial demand and mounting supply deficits. Demand for solar energy, electronics and electrification now accounts for more than half of global silver demand. Currently, silver is trading at a fresh high of above $57, driven by expectations of a rate cut, which bodes well for prices.

Pan American Silver Stock’s Price Performance

In the past year, PAAS shares have skyrocketed 117.4% compared with the industry's 136.6% upsurge.

Other Stocks to Consider

Some other top-ranked stocks from the basic materials space are OR Royalties Inc. OR, Newmont Corporation NEM and First Majestic Silver Corp. AG. OR and NEM sport a Zacks Rank #1 at present, and AG carries a Zacks Rank #2 (Buy). 

The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate indicates year-over-year growth of 57.7%. OR Royalties’ shares have surged 83.7% in a year.

The consensus estimate for Newmont’s 2025 earnings is pegged at $5.96 per share. The estimate indicates year-over-year growth of 71.3%. It has an average trailing four-quarter earnings surprise of 41.6%. Newmont’s shares have soared 125.5% in a year.

The Zacks Consensus Estimate for First Majestic Silver’s 2025 earnings is pegged at 25 cents per share, indicating a year-over-year upsurge of 278%. First Majestic Silver’s shares skyrocketed 157.1% last year.

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

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