Canada's Pan American Silver Q3 adjusted EPS misses estimates as silver, gold production drop below outlook  

Overview

• Canada-based silver and gold miner's Q3 adjusted EPS missed analyst expectations

• Q3 revenue rose to $1.01 bln

• Company returned $300 mln to shareholders in Q3 via dividends and share repurchases

Outlook

• Pan American sees 2026 silver production at low end of 25-27 mln oz guidance range

• 2026 gold production guidance lowered to 660-680k oz from 700-750k oz

• 2026 gold segment AISC forecast raised to $2,000-$2,150/oz from $1,700-$1,850/oz

Result Drivers

• LOWER SILVER PRODUCTION - Co said Q3 silver output was below outlook due to mine sequencing at Juanicipio and Cerro Moro

• LOWER GOLD PRODUCTION - Q3 gold output was below outlook, mainly reflecting lower production at Timmins and Shahuindo

• HIGHER GOLD SEGMENT COSTS - Gold segment all-in sustaining costs rose above outlook due to lower production and higher development, labour and consumables costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the diversified mining peer group is "buy"

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• Nov 4 - Canada's Aris Mining YTD gold production rises 16%

• Nov 3 - SSR Mining Q3 revenue and adjusted net income rise year over year

• Nov 3 - Hecla Mining's Q3 revenue rises 18%, beats estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)