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Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, except per ounce amounts, unless otherwise noted.
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VANCOUVER, British Columbia — Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) (“Pan American” or the “Company”) reports fourth quarter (“Q4 2025”) financial results and audited financial results for the year ended December 31, 2025 (“FY 2025”). The Company will host a conference call and webcast on February 19, 2026 to discuss the results; details provided further in this news release.
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“Pan American delivered record financial results across the board in 2025, reflecting strong operating margins with production and costs in line or better than guidance and higher realized silver and gold prices,” said Michael Steinmann, President and Chief Executive Officer.
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“Looking ahead to 2026, we expect another strong year of cash flow generation following the record $554 million of operating cash flow generated in Q4 2025 alone. Attributable silver production is forecast to increase by approximately 14% over 2025, with silver segment all-in sustaining costs of $15.75 to $18.25 per ounce, driven in large part by the contribution from the Juanicipio mine. With $1.3 billion in cash and short-term investments (excluding our $127 million share of cash at Juanicipio), we are well positioned to advance our growth projects – notably the La Colorada Skarn and Jacobina optimization – as well as to enhance shareholder returns. Today, we increased the dividend to $0.18 per common share with respect to Q4 2025 for the third consecutive quarterly increase, allowing shareholders to participate directly in rising net cash levels. In 2025, we returned $221 million to our shareholders in dividends and share buybacks, including $74 million in Q4.”
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The following highlights for Q4 2025 and FY 2025 include certain measures that are not generally accepted accounting principles (“non-GAAP”) financial measures. Please refer to the section titled “Alternative Performance (Non-GAAP) Measures” at the end of this news release for further information on these measures.
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Q4 2025 and FY 2025 Results:
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- Record revenue of $1.2 billion and $3.6 billion in Q4 2025 and FY 2025, respectively. Attributable(1) revenue of $1.3 billion and $3.8 billion in Q4 2025 and FY 2025, respectively.
- Record net earnings of $452 million, or $1.07 basic earnings per share in Q4 2025, including $61 million of income from investment in Juanicipio. Record FY 2025 net earnings of $980 million, or $2.56 basic earnings per share.
- Record adjusted earnings of $470 million, or $1.11 adjusted earnings per share in Q4 2025. FY 2025 adjusted earnings of $959 million, or $2.54 adjusted earnings per share(2).
- Record cash flow from operations of $554 million and $1,333 million in Q4 2025 and FY 2025, respectively.
- Record Attributable(1) free cash flow of $553 million and $1,151 million in Q4 2025 and FY 2025, respectively.
- Attributable(1) silver production of 7.3 million ounces and 22.8 million ounces in Q4 2025 and FY 2025, respectively. Annual silver production exceeded the updated guidance range(3).
- Attributable(1) gold production of 197.8 thousand ounces and 742.2 thousand ounces in Q4 2025 and FY 2025, respectively. Annual gold production was within the guidance range(4).
- Silver Segment all-in sustaining costs (“AISC”)(2)(5), excluding net realizable value (“NRV”) inventory adjustments, were $9.51 and $13.88 per silver ounce in Q4 2025 and FY 2025, respectively. Annual Silver Segment AISC were below the updated guidance range(3)(5).
- Gold Segment AISC(2), excluding NRV inventory adjustments, were $1,699 and $1,621 per gold ounce in Q4 2025 and FY 2025, respectively. Annual Gold Segment AISC were within the guidance range(4)(6).
- As at December 31, 2025, the Company had cash and short-term investments of $1,319 million, excluding the Company’s 44% interest of cash at Juanicipio of $127 million. The Company had working capital of $1,379 million and $750 million available under its credit facility (“Credit Facility”). Total available liquidity was $2,069 million. Total debt of $852 million is primarily related to two senior notes, as well as certain lease liabilities and construction loans payable.
- A cash dividend of $0.18 per common share with respect to Q4 2025 was declared on February 18, 2026, payable on or about March 13, 2026, to holders of record of Pan American’s common shares as of the close of markets on March 2, 2026. The dividends are eligible dividends for Canadian income tax purposes. The declaration, timing, amount and payment of any future dividends remain at the discretion of the Company’s Board of Directors.
- In Q4 2025, $15 million was spent on the repurchase and cancellation of the Company’s shares under its normal course issuer bid (the “NCIB”). For FY 2025, 1,650,770 common shares were repurchased for cancellation under the NCIB at an average price of $27.92 per share for a total consideration of $46 million.
- Capital returned to shareholders in 2025 totaled $221 million in dividends and share repurchases.
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(1) | References to “Attributable” refer to the Company’s ownership share of results, which includes results from the operations that the Company has a 100% interest in as well as from the operations, specifically Juanicipio and San Vicente, that the Company does not own a 100% interest in. | |
(2) | Adjusted earnings, Attributable free cash flow, Cash Costs, AISC, working capital and total debt are non-GAAP measures; Cash Costs and AISC are presented on an Attributable basis; please refer to the “Alternative Performance (Non-GAAP) Measures” section of this news release for a description of the composition and usefulness of these non-GAAP measures; please also refer to the MD&A for the period ended December 31, 2025, and a detailed reconciliation of these measures to the FY 2025 Financial Statements. | |
(3) | Guidance for annual silver production and AISC was updated on November 12, 2025 to reflect the acquisition of MAG Silver Corp., which was completed on September 4, 2025. | |
(4) | Guidance for annual gold production and AISC was provided in the Company’s Management’s Discussion & Analysis (“MD&A”) for the period ended December 31, 2024. | |
(5) | Silver Segment AISC is calculated net of credits for realized revenues from all metals other than silver and is calculated per ounce of silver sold on an Attributable basis. | |
(6) | Gold Segment AISC is calculated net of credits for realized revenues from all metals other than gold and is calculated per ounce of gold sold. |
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PROJECT UPDATES
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In 2025, the Company invested $94 million of project capital, in line with the guidance range provided for the year. The majority of the investment was directed to advance projects at the La Colorada mine and Skarn and at Jacobina, with the remainder invested at the Cerro Moro, Huaron and Timmins mines.
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La Colorada Mine and Skarn
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The Company invested $13 million of project capital at the La Colorada mine, directed largely at exploration and mine equipment leases to access, mine, and expand mineral resource extensions in the eastern and southeastern higher-grade Candelaria zone. At the La Colorada Skarn, $22 million of project capital was largely for exploration and in-fill drilling and to advance engineering work. The discovery of multiple high-grade silver zones and the subsequent mineral resource and mineral reserve expansion (see the news releases dated September 8 and 11, 2025) provide the opportunity to integrate the mine plans and infrastructure of the vein mine and the Skarn project. The Company is now evaluating a potential phased approach to developing the La Colorada mine and Skarn project with the aim of maximizing the overall value of the deposit. A phased approach would allow the Company to focus on a higher grade, lower tonnage and less capital intensive initial stage with the option to be followed by a later expansion to target lower grade material. The advantage of this approach is to provide greater optionality on the development of the substantial mineral resource identified to date on the deposit, while also targeting higher grades first and optimizing vein mining activities in parallel to the development of the Skarn. The Company anticipates that it will release an updated technical report in the second quarter of 2026 to include a preliminary economic assessment of the new development approach for the Skarn project. In parallel, the Company continues to discuss a potential partnership for development of the project, including the proposed change in development plan.
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