Canada's Pan American Silver Q2 adjusted EPS misses estimates on lower gold output

Pan American Silver

12/08/2026 22:29

Overview
Canada precious metals miner's Q2 adjusted EPS missed analyst expectations
Company returned record $300 mln to shareholders via dividends and share repurchases
Q2 silver production reached high end of guidance, gold production was below guidance

Outlook
Pan American reiterates 2026 silver and gold production and cost guidance
Full-year 2026 gold output now expected at low end of 700-750k oz guidance
Gold Segment AISC seen at high end of $1,700-$1,850/oz guidance range
Guidance for taxes paid in 2026 raised to $585 mln-$635 mln on higher metal prices

Result Drivers
SILVER PRODUCTION - Silver output reached the high end of guidance, driven by continued strong performance at La Colorada and Juanicipio
GOLD PRODUCTION SHORTFALL - Gold production was below guidance, primarily due to lower output at Jacobina and El Peñon and changes to mine sequencing
COST PRESSURES - Higher consumables, labor costs, and royalties, reflecting increased metal prices, pushed all-in sustaining costs above guidance

Company press release: ID:nBwbjxjRwa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$1.14 bln
 
Q2 Adjusted EPS
Miss
$0.73
$1.04 (3 Analysts)
Q2 EPS
 
$0.72
 
Q2 Net Income
 
$305 mln
 
Q2 Dividend
 
$0.18
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the diversified mining peer group is "buy"
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Aug 12 - Canada's Avino Q2 revenue rises on higher silver prices
Aug 12 - Canada's GoGold Resources Q3 revenue rises on elevated silver prices 
Aug 10 - Canada's Barrick Mining Q2 profit misses estimates, plans North American IPO by end-2026

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)