Pan American Silver Trades at 15.7X P/E with Record 22.8Moz Output
Pan American Silver trades at a forward 12-month P/E of 15.72X, below the industry average of 19.55X and peers Avino (25.07X) and First Majestic (82.51X). The company produced a record 22.8 million ounces of silver in 2025 (up 8%) and held $1.32 billion in cash with $2.07 billion liquidity.
1. Valuation Discount
Pan American Silver stock trades at a forward 12-month earnings multiple of 15.72X, compared with the Zacks Mining - Silver industry average of 19.55X. This positions PAAS at a valuation discount to peers Avino Silver & Gold Mines (25.07X) and First Majestic Silver (82.51X), suggesting potential upside for value investors.
2. Strong 2025 Production and Liquidity
In 2025, Pan American Silver produced 22.8 million ounces of silver, an 8% increase over 2024, and delivered a record 7.3 million ounces in Q4 driven by the Juanicipio mine. The company ended the year with $1.32 billion in cash and short-term investments and $2.07 billion in total available liquidity.
3. MAG Silver Acquisition Benefits
The September 2025 acquisition of MAG Silver added a 44% stake in the high-grade Juanicipio project, which has produced 2.5 million ounces of silver, plus full ownership of the Larder project and an earn-in interest in Deer Trail. These assets are expected to bolster reserves and long-term cash flow.
4. Production Outlook and Growth Initiatives
PAAS expects silver output to rise 14% to 25–27 million ounces in 2026, supported by higher silver prices (currently above $73/oz) and ongoing exploration. The company continues to extend mine lifespans through successful drilling and is advancing organic growth opportunities across its diversified asset base.