Pan American Silver (TSX: PAAS) reported second quarter revenue of $1.12 billion, slightly below the $1.15 billion posted in the first quarter but up 38% from $812 million a year earlier, as metal prices held well above 2025 levels even after retreating from their first quarter highs.
Net earnings were $305 million, or $0.72 per share. Adjusted earnings were $308 million, or $0.73 per share. Both measures fell sharply from the first quarter’s $456 million and $1.08 per share, though the gap owes more to pricing than to the mines. Silver realized prices were $70.97 an ounce in the quarter against $89.43 three months earlier, and gold pricing came in at $4,402 versus the prior $4,859.
Operating cash flow was $320 million on a consolidated basis and $418 million attributable, producing $344 million of attributable free cash flow.
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Cash and short-term investments finished the quarter at roughly $1.8 billion, including $97 million attributable to the company’s Juanicipio interest. Total debt stood at $841 million and total available liquidity at $3.2 billion. The company returned $300 million to shareholders during the quarter, comprising $76 million in dividends at $0.184 per share and $224 million of buybacks covering 4.4 million shares at an average of $51.46. Year-to-date repurchases now total $358 million.
Attributable silver production was 6.47 million ounces, at the upper end of quarterly guidance and marginally ahead of the first quarter. Gold was the softer line at 165,900 ounces, below the quarterly range, after Jacobina implemented seismic risk mitigation measures, while El Peñón encountered less continuity in secondary structures.
Silver segment all-in sustaining costs were $17.80 an ounce, down from $19.66 a year ago but well above the unusually low $6.63 recorded in the first quarter, when peak byproduct credits flattered the figure. Gold segment AISC was $1,984 an ounce, above the annual guidance range of $1,700 to $1,850.
Pan American kept its silver guidance of 25 million to 27 million ounces intact but now expects gold at the low end of the 700,000 to 750,000 ounce range, with gold AISC at the high end of its range. Income tax payments were revised upward to $585 million to $635 million from the prior $500 million to $550 million.
“Pan American delivered another quarter of strong financial results, generating $344 million in attributable free cash flow,” Chief Executive Officer Michael Steinmann said. “We produced 6.5 million ounces of silver, at the upper end of our quarterly guidance.”
Pan American Silver last traded at $73.10 on the TSX.
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