Pan American Silver reports weaker Q2 2026 results, trims gold outlook

Pan American Silver Corp. (NYSE: PAAS ) stock fell in Thursday's premarket session after the company reported weaker-than-expected second-quarter 2026 results.

The company reported adjusted earnings of 73 cents per share, below the analyst estimate of $1.04.

Revenue of $1.124 billion also missed the consensus estimate of $1.158 billion.

Earnings Snapshot Attributable silver production totaled 6.47 million ounces, at the high end of the company's quarterly outlook.

Gold production came in at 165,900 ounces, below the quarterly guidance range.

Silver all-in sustaining costs, or AISC, were $17.80 per ounce, while gold AISC was $1,984 per ounce.

Both were slightly above the company's quarterly expectations.

Operating cash flow totaled $320 million during the quarter.

Attributable free cash flow was $344 million, including Juanicipio and after $205 million in second-quarter tax payments.

Management expects the second quarter to represent the company's highest tax-payment quarter of 2026 because it included the final settlement of 2025 taxes.

Pan American ended the quarter with $1.8 billion in cash, cash equivalents and short-term investments.

Key Project Updates At La Colorada Skarn in Mexico, Pan American invested $20 million during the first half of 2026, primarily on exploration drilling and engineering for the 588 Decline Project.

Development began in August.

Engineering work for the material-handling system and ventilation shafts remains on schedule for board approval.

At Jacobina in Brazil, the company invested $22 million during the first half toward infrastructure upgrades, plant improvements and long-term optimization studies.

Construction of new carbon-in-pulp tanks is expected to finish in August.

Substation and motor-control upgrades are also underway.

At Timmins in Canada, Pan American is pursuing a phased resource-development plan aimed at increasing production and extending mine life.

The board approved $146 million for the first phase, which includes the Bell Creek shaft extension and exploration drifts to the Vogel and Samson deposits.

An updated resource estimate is expected in the third quarter of 2026, followed by a preliminary economic assessment in the first half of 2027.

Buybacks And Dividend Pan American returned a record $300 million to shareholders through dividends and share repurchases during the quarter.

The company repurchased about 4.4 million shares at an average price of $51.46 per share for approximately $224 million.

It also paid $76 million in dividends.

As of Aug.

11, Pan American had repurchased about 7.3 million shares at an average price of $49.22 per share for $358 million.

The company declared a second-quarter dividend of 18.4 cents per common share, payable around Sept.

4 to shareholders of record as of Aug.

24.

2026 Gold Outlook Under Pressure Management expects full-year 2026 gold production near the low end of its 700,000-750,000-ounce guidance range.

Third-quarter gold production is expected to fall 3,000-6,000 ounces below the company's 178,500-192,000-ounce quarterly range.

Lower production at Jacobina and El Peñon is expected to be partly offset by higher output at Timmins and Shahuindo.

Gold all-in sustaining costs are now expected near the high end of the $1,700-$1,850 per ounce range.

The outlook reflects lower production and higher labor and consumables costs.

El Niño-related heavy rains could also disrupt operations in Chile and Argentina through the end of the year.

Higher-than-expected metal prices have boosted profitability but also increased tax expenses.

Pan American raised its 2026 taxes-paid guidance to $585 million-$635 million.