Canada's Pan American Silver Q3 adjusted EPS misses estimates as silver, gold production drop below outlook

Pan American Silver

Wed 22:21

Overview
Canada-based silver and gold miner's Q3 adjusted EPS missed analyst expectations
Q3 revenue rose to $1.01 bln
Company returned $300 mln to shareholders in Q3 via dividends and share repurchases

Outlook
Pan American sees 2026 silver production at low end of 25-27 mln oz guidance range
2026 gold production guidance lowered to 660-680k oz from 700-750k oz
2026 gold segment AISC forecast raised to $2,000-$2,150/oz from $1,700-$1,850/oz

Result Drivers
LOWER SILVER PRODUCTION - Co said Q3 silver output was below outlook due to mine sequencing at Juanicipio and Cerro Moro
LOWER GOLD PRODUCTION - Q3 gold output was below outlook, mainly reflecting lower production at Timmins and Shahuindo
HIGHER GOLD SEGMENT COSTS - Gold segment all-in sustaining costs rose above outlook due to lower production and higher development, labour and consumables costs

Company press release: ID:nBw35MYsta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
 
$1.006 bln
 
Q3 Adjusted EPS
Miss
$0.69
$1.23 (3 Analysts)
Q3 EPS
 
$0.86
 
Q3 Net Income
 
$357 mln
 
Q3 Dividend
 
$0.185
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "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 7 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads
Nov 4 - Canada's Aris Mining YTD gold production rises 16%
Nov 3 - SSR Mining Q3 revenue and adjusted net income rise year over year
Nov 3 - Hecla Mining's Q3 revenue rises 18%, beats estimates

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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.)