Pan American Silver (PAAS) Q1 2025 earnings summary

Executive summary

• Achieved record mine operating earnings of $250.8 million and free cash flow of $112.6 million in Q1 2025, reflecting strong operational execution and higher metal prices.

• Silver production exceeded guidance at 5.0 million ounces, and gold production was 182.2 thousand ounces, both in line with expectations.

• Revenue reached $773.2 million, with net earnings of $169.3 million ($0.47/share) and adjusted earnings of $153.0 million ($0.42/share).

• Free cash flow was $112.6 million, and cash and short-term investments rose to $923 million.

• Operations fully funded business needs, shareholder returns, and growth investments, with total available liquidity of $1.7 billion.

Financial highlights

• Revenue for Q1 2025 was $773.2 million, with mine operating earnings at $250.8 million and operating cash flow before working capital changes at $240.1 million.

• Silver Segment AISC was $13.94/oz and Gold Segment AISC was $1,485/oz (excluding NRV adjustments), both outperforming guidance.

• Cash and short-term investments stood at $923 million, with total available liquidity of $1.7 billion and total debt of $804.4 million.

• $56 million was returned to shareholders via dividends and share buybacks in Q1.

• Declared a $0.10 per share dividend and repurchased 909,012 shares under the Normal Course Issuer Bid.

Outlook and guidance

• Reaffirmed 2025 annual production guidance: 20.00–21.00 million ounces of silver and 735–800 thousand ounces of gold.

• 2025 AISC guidance: $16.25–$18.25 per silver ounce and $1,525–$1,625 per gold ounce.

• Production and AISC expected to be weighted to the second half of 2025 due to mine sequencing and plant maintenance.

• 2025 capital expenditures forecasted at $360–385 million, with $90–100 million for exploration and project development.

• Taxes paid are front-end loaded, with $95.1 million paid in Q1 out of an estimated $240–260 million for the year.