Will Higher Silver Production From Cerro Moro Boost PAAS' Outlook?

Pan American Silver Corp. PAAS invested $94 million of project capital in 2025 to advance several major projects, among which a prominent one was the Cerro Moro mine in Argentina. The company has increased capital toward its exploration programs for 2026, which will include Cerro Moro as well.

Pan American Silver gained the ownership of Cerro Moro following the acquisition of Yamana Gold in 2023. In the fourth quarter of 2025, the Cerro Moro mine produced 27.6 thousand ounces of gold and 0.92 million ounces of silver, marking an increase of 22.7% and 10.6% year-over-year growth, respectively.

Silver production at the mine in 2025 dipped 15% from 2024’s figure due to mine sequencing into lower-grade zones. However, gold production for the year saw a 7% year-over-year increase, aided by planned mine sequencing into higher gold grade ore zones
Pan American Silver expects 2026 total silver production of 25-27 million ounces, with a stronger performance anticipated in the second half of the year. Increased production at Cerro Moro will aid the results.

For 2026, Pan American Silver expects silver production from the mine to be 2.80-3.00 million ounces, indicating a 16% year-over-year increase at the mid-point. The upside will be driven by mine sequencing into higher silver grade ores at the underground zones.

The mine’s all-in sustaining costs are expected between negative $25.75 to negative $21.75 per ounce in 2026, lower than the negative $14.04 per ounce reported in 2025. This reflects higher gold prices, boosted by-product credits. Lower sustaining exploration and tailings investments, and reduced production costs also aid negative all-in sustaining costs.

Like PAAS, its peer Hecla Mining Company HL delivers strong performance, driven by core operating assets. During 2025, Hecla Mining’s Greens Creek produced 8.7 million ounces of silver, up 3% from 2024. Hecla Mining’s Lucky Friday project also delivered improved performance during the year. The mine’s silver production totaled 5.3 million ounces, driven by higher milled grades and improved throughput.

Avino Silver & Gold Mines Ltd. ASM is benefiting from its strategy of advancing production, development and exploration projects in Mexico. Avino Silver’s La Preciosa project was reclassified from exploration to development in April 2025 after demonstrating technical feasibility and commercial viability. During 2025, La Preciosa contributed initial mill feed and drilling returned high-grade results. At Avino Silver’s Avino Mine, higher throughput and better recoveries lifted gold output 21% year over year to 7,621 ounces in 2025.

PAAS’ Price Performance, Valuation & Estimates

In a year, PAAS shares have skyrocketed 150% compared with the industry's 116.5% whopping growth. In comparison, the Basic Materials sector has risen 39.4%, whereas the S&P 500 has moved up 22.8%.

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PAAS is currently trading at a forward 12-month price-to-earnings multiple of 14.08X compared with the industry average of 16.88X.

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The consensus mark for 2026 earnings is pegged at $3.97 per share, indicating a year-over-year jump of 56.3%. The estimate for 2027 of $4.14 suggests an increase of 4.3%.

The Zacks Consensus Estimate for Pan American Silver’s earnings for 2026 has moved up 10.3% over the past 60 days and the same for 2027 has risen 1.9%.

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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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Hecla Mining Company (HL): Free Stock Analysis Report

Pan American Silver Corp. (PAAS): Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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