Can PAAS Stock Meet Its Upbeat 2025 Silver Production Guidance?

Pan American Silver Corp. PAAS delivered a solid performance in the first nine months of 2025, backed by strong production growth and record silver prices. PAAS’s silver production increased 4% year over year in the first nine months of 2025 to 15.6 million ounces. This upbeat performance has set an optimistic tone for the fourth quarter.

In early September, PAAS completed its previously stated acquisition of MAG Silver Corp. 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. PAAS’s production outlook for the Juanicipio mine is at 14.7-16.7 million ounces of silver for 2025. 

Considering a month of strong performance from its stake in the Juanicipio mine, Pan American Silver increased its 2025 silver production outlook to 22-25 million ounces at the end of the third quarter of 2025 from the prior stated 20-21 million. The company produced 21.1 million ounces of silver in 2024.

The results will also benefit from higher output at La Colorada mine due to a significant improvement in ventilation conditions. In the first nine months of 2025, El Peñon saw gains attributed to higher throughput, resulting from higher silver grades. Huaron reported improved numbers due to higher throughput from additional development meters and tons, but at lower grades. These will also aid the company’s upbeat guidance.

Pan American Silver Peers’ 2025 Guidance

Hecla Mining Company HL projected 2025 silver production of 16.2-17 million ounces. Hecla Mining produced 16.2 million ounces of silver in 2024.

Avino Silver & Gold Mines Ltd. ASM expected 2025 production of 2.5-2.8 million silver equivalent ounces (AgEq). Avino Silver produced 2.65 million ounces of AgEq in 2024.

PAAS’ Price Performance, Valuation & Estimates

Pan American Silver’s stock has skyrocketed 167.9% in a year compared with the industry’s upsurge of 212.9%. Meanwhile, the Basic Materials sector has risen 41.3% and the S&P 500 has returned 21.3%.

PAAS is currently trading at a forward 12-month price-to-earnings multiple of 15.20X, at a discount to the industry average of 20.12X.

In comparison, Avino Silver and Hecla Mining are trading higher at 22.45X and 41.91, respectively.

The Zacks Consensus Estimate for Pan American Silver’s earnings for 2025 and 2026 has moved up 2.8% and 7.9%, respectively, over the past 60 days.

The consensus mark for 2025 earnings is pegged at $2.21 per share, indicating a year-over-year upsurge of 179.7%. The estimate for 2026 of $3.67 suggests an increase of 66.1%. 

PAAS currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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

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