Pan American Silver Closes Sale of Pico Machay Project to Xali Gold

Pan American Silver Corp. PAAS completed its interest in Minera Calipuy S.A.C.,which owns the Pico Machay project, to Xali Gold Corp. Pan American Silver and Xali Gold previously inked a share purchase agreement on Oct. 23, 2025.

Details of Pan American Silver’s Pico Machay Project

Located in Peru, Pico Machay is an advanced exploration-stage gold project with a high-sulphidation gold deposit. It has a near-term production goal and will offer immediate value and substantial upside to Xali Gold.

The historic resource estimate of the gold project includes 264,600 ounces of gold in Measured and Indicated, and an additional 446,000 ounces in the Inferred category. Under the agreement, Pan American received a cash payment of $500,000 for the sale of Calipuy shares.

PAAS’s Focus on Portfolio Optimization

The company has been focusing on optimizing its portfolio. Pan American Silver disposed of its 80% ownership in the La Pepa project in the third quarter of 2025 for $40 million. On Dec. 2, 2024, the company disposed of its fully owned interest in La Arena for $306.6 million in cash proceeds.

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. 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.

Pan American Silver Stock’s Price Performance

In the past year, PAAS shares have skyrocketed 162.5% compared with the industry's 201.6% upsurge.

PAAS’s Zacks Rank & Other Stocks to Consider

Pan American Silver currently flaunts a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the basic materials space are Agnico Eagle Mines AEM, Kinross Gold Corporation KGC and Fortuna Mining Corp. FSM. AEM and KGC sport a Zacks Rank #1, and FSM has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate indicates year-over-year growth of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have surged 107.6% in a year.

The Zacks Consensus Estimate for Kinross Gold’s 2025 earnings is pegged at $1.67 per share, suggesting year-over-year growth of 145%. Kinross Gold’s shares jumped 135% last year.

The consensus estimate for Fortuna Mining’s 2025 earnings is pegged at 76 cents per share. The estimate implies year-over-year growth of 65.2%. Fortuna Mining’s shares have surged 145.6% in a year.

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

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