Canada's Pan American Silver Q2 adjusted EPS misses estimates on lower gold output
PAAS•Results and 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.
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.
