Pan American Silver (TSX: PAAS) reversed last year’s red with record free cash flow as it reports Q2 2025 revenue jumping 18% YoY to $811.9 million from last year’s $686.3 million. Higher realized prices—silver up 17% to $32.91 per ounce and gold up 41% to $3,305 per ounce—did the heavy lifting on revenue.
The surge lifted mine operating earnings 134% to $273.3 million. This led to a net income this quarter of $189.6 million (or $0.52 per share) from a $21.4 million loss ($0.06 loss per share) a year ago, as the tax line shrank 52% to $44.8 million.
Adjusted earnings ballooned almost 3× to $155.4 million (or $0.43 per share).
Operating cash flow surged 80% to $293.4 million, translating into a “record” $233.0 million of free cash flow after a flat sustaining capex at $60.4 million and a 54% drop in project spend to $13.3 million. Management boosted the quarterly dividend 20% to $0.12 per share and bought back $11.1 million in shares, returning $103.5 million year-to-date.
Cash and short-term investments hit a record $1.11 billion, exceeding total debt of $820.7 million and leaving net cash of roughly $289 million. Liquidity stands at $1.86 billion, including a fully undrawn $750 million revolver.
On production, silver output grew 12% YoY to 5.1 million ounces, but gold production slid 19% to 178,700 ounces as the sale of La Arena and lower grades at several sites took effect.
Meanwhile, AISC told a different story: silver segment AISC rose 9% to $19.69 per ounce and gold segment AISC jumped 10% to $1,611 per ounce, eroding some of the price-driven margin tailwind.
CEO Michael Steinmann said that the record inflows allowed the company to earmark $500 million to fund the pending MAG Silver takeover, which is expected to lift annual silver production by roughly 35% and “meaningfully reduce all-in sustaining costs.”
Pan American reaffirmed full-year production guidance of 20–21 million silver ounces and 735,000–800,000 gold ounces and cost guidance but warned gold output will be back-weighted to Q4 2025.
Pan American last traded at $29.35 on the TSX.
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