Can Pan American Silver's Solid Reserve Base Support Growth?
Pan American Silver Corp. PAAS has achieved significant mineral reserve growth across its operations. The company estimates its proven and probable mineral reserves to contain 511.1 million ounces of silver and 6.3 million ounces of gold as of June 30, 2026.
As of June-end, Pan American Silver’s measured and indicated mineral resources (excluding P&P mineral reserves) are estimated to be 1,126.7 million ounces of silver and 7.5 million ounces of gold, along with 437 million ounces of silver and 7.2 million ounces of gold in inferred resources. The addition of the company’s 44% attributable share of the Juanicipio mineral reserves and mineral resources further increased its silver mineral reserve base.
Successful exploration and infill drilling replaced 72% of mined production at the Jacobina mine despite the removal of larger pillars from mineral reserves. The discovery of four veins added 3.5 million ounces of silver to proven and probable mineral reserves. The Vogel project at Timmins added more than 192,000 ounces of gold to inferred mineral resources. To support potential output growth and mine-life extension, the company is moving forward with a phased development of mineral resources at Timmins.
The company completed 351,000 meters of drilling out of a planned total of more than 500,000 meters for the calendar year 2026. Ongoing exploration success at La Colorada, Jacobina and Timmins highlights PAAS’s high-grade asset base and underlines focus on extending mine lives and driving innovation.
PAAS’s Peer Mineral Reserves Performance
Avino Silver & Gold Mines Ltd.’s ASM proven and probable mineral reserves totaled 27 million tons as of the end of second quarter of 2026. This includes 95 million ounces of silver, 356 thousand ounces of gold and 85 million pounds of copper. Collectively, Avino Silver’s holds 127 million silver-equivalent ounces as proven and probable mineral reserves. Avino Silver is hosting geological consultants to help identify key features and pinpoint target zones for resource expansion.
Hecla Mining Company’s HL consolidated proven and probable mineral reserves totaled 231.1 million ounces of silver, 2 million ounces of gold, 752,900 tons of lead and 941,850 tons of zinc. At 2025 end, Hecla Mining’s measured and indicated silver resources totaled 161 million ounces, while inferred silver resources totaled 468 million ounces. Hecla Mining invested $11.3 million in exploration and corporate development activities in the second quarter of 2026. This is focused on high-impact discovery drilling at Keno Hill in Yukon and Midas in Nevada, and resource expansion programs at the company’s producing assets.
PAAS’s Price Performance, Valuation & Estimates
In a year, Pan American Silver’s shares have jumped 30.4% compared with the industry's 38.4% growth. In comparison, the Basic Materials sector has risen 18.3%, whereas the S&P 500 has moved up 16.9%.
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PAAS is currently trading at a forward 12-month price-to-earnings multiple of 10.87X compared with the industry average of 14.74X.
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The consensus mark for 2026 earnings is pegged at $3.81 per share, indicating a year-over-year jump of 50%. The estimate for 2027 of $5 suggests an increase of 31%.
The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 and 2027 have moved down over the past 60 days.
Image Source: Zacks Investment Research
PAAS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).
