Pan American Silver Invests $94M, Uncovers Four High-Grade Veins
Pan American Silver invested $94 million in 2025 to advance La Colorada and Skarn projects, mobilizing initial infrastructure and drilling new zones. Recent assays uncovered four high-grade veins with 40% of holes exceeding 1,000 g/t silver, supporting guidance of 25–27 million ounces of silver production in 2026.
1. Investment and Development Update
Pan American Silver deployed $94 million of project capital in 2025 to advance both the La Colorada mine and the adjacent Skarn project. The company initiated early works on mine infrastructure and adopted a phased development strategy focusing first on high-grade, low-tonnage zones with lower initial capital intensity.
2. Exploration Breakthroughs
Ongoing drilling in the southeastern Candelaria zone of La Colorada revealed four new high-grade veins, with assays showing 40% of holes exceeding 1,000 g/t silver. These results highlight significant resource expansion potential and reinforce the value of combining vein and Skarn operations.
3. 2026 Production Outlook
The company projects total silver output of 25–27 million ounces for 2026, expecting stronger production in the second half as La Colorada contributions ramp up under the phased plan. Increased throughput from high-grade zones is anticipated to drive overall growth.
4. Valuation and Peer Comparison
PAAS trades at a forward 12-month P/E of 14.9× versus the industry average of 18.2×. Consensus earnings per share for 2026 are set at $3.97, reflecting a 56.3% year-over-year increase, while estimates for 2027 imply further modest growth.