Pan American Silver reports Q2 results, boosts liquidity and returns

Pan American Silver (NYSE: PAAS ) reported second-quarter financial results on Thursday.

The transcript from the company's second-quarter earnings call has been provided below.

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The full earnings call is available at Summary Pan American Silver Corp reported strong financial results for Q2 2026, with $344 million in attributable free cash flow and a record $300 million returned to shareholders.

Silver production reached 6.5 million ounces, meeting the high end of guidance, while gold production was below expectations at 166,000 ounces, with adjustments expected in future quarters.

Full-year production guidance for silver remains on track, while gold production is expected to be at the low end of the 700,000 to 750,000 ounce range due to seismic events impacting Jacobina and lower continuity at El Peñón.

The company renewed and expanded its credit facility, increasing its size to $1.5 billion with a $750 million accordion feature, maintaining strong liquidity.

Strategic projects such as the La Colorada Skarn deposit and Timmins CAMP project are progressing, with updates expected in future quarters.

The management reaffirmed its commitment to shareholder returns, projecting up to $1 billion in returns for 2026 through share buybacks and dividends.

Full Transcript OPERATOR Thank you for standing by.

This is the conference operator.

Welcome to the Pan American Silver Corp second quarter 2026 results conference call.

As a reminder, all participants are in listen-only mode and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions.

During the question queue, you may press star then one on your telephone keypad.

Should you need assistance during the conference call, you may reach an operator by pressing star then zero.

I would now like to turn the conference over to Fion Fazecki, VP, Investor Relations.

Please go ahead.

Ms.

Fazecki.

Fion Fazecki, VP Investor Relations Thank you for joining us today for Pan American Silver Corp's conference call and webcast to discuss our second quarter 2026 results.

This call includes forward-looking statements and information and references non-GAAP measures.

Please see the cautionary statements in our MD&A, Q2 news release and presentation slides for the period ended June 30, 2026, all of which are available on our website.

I'll now turn the call over to Michael Steinman, Pan American's President and CEO.

Michael Steinman, President and CEO Good morning everyone and thank you for joining us today for our Q2 2026 conference call.

Q2 delivered strong financial results, strong silver production and meaningful progress on our growth project.

We generated 344 million of attributable free cash flow, returned a record of 300 million to shareholders and reached an important milestone at La Colorada in early August with the first cut of the 588 decline to access the Skarn deposit.

Attributable silver production of 6.5 million ounces in Q2 was at the high end of our quarterly guidance range, driven by continued strong performance at La Colorada and Juanicipio.

We remain on track to achieve our full year silver production guidance of 25 to 27 million ounces.

Q2 silver segment all-in sustaining costs were $17.80 per ounce, primarily reflecting higher-cost ounces from the inventory drawdown that had accumulated at La Colorada in the first quarter of 2026, higher royalties at La Colorada from mining more tons than initially planned from the adjacent third-party concession, unfavorable currency exchange rates and higher labor-related costs.

Attributable gold production was approximately 166,000 ounces, which was below the quarterly outlook issued in February.

We expect Q2 to be the weakest gold production quarter of the year, with production more heavily weighted to the fourth quarter as we indicated in Q1.

Gold segment all-in sustaining costs were $1,984 per ounce in Q2, slightly above our quarterly outlook due to the lower-than-forecasted production as well as labor and materials inflation.

Importantly, for the first half of the year, all-in sustaining costs were below the low end of our guidance range for silver and in line with our guidance range for gold.

Based on performance to date, we are reaffirming our full year 2026 operating outlook ranges for silver and gold production, silver segment and gold segment all-in sustaining costs and sustaining capital.