Silver Miners Benefit from Record Q2 Earnings Amid Price Highs and Supply Deficits

Silver miners reported record Q2 earnings due to higher realized prices and production gains. Spot silver broke above $35/oz, its highest in over 14 years, and the gold-silver ratio narrowed. Companies like Pan American Silver, First Majestic Silver, and Endeavour Silver saw significant increases in revenue, production, and realized prices, boosting their earnings. The acquisitions of MAG Silver and Minera Kolpa are expected to further enhance their operations.

Silver miners have reported record earnings for the second quarter of 2025, driven by higher realized prices and increased production. The surge in earnings follows a period of robust demand and elevated metal prices, with spot silver breaking above $35/oz, its highest level in over 14 years.

Pan American Silver Corp. (PAAS) delivered a record free cash flow of $233 million in the second quarter of 2025, a 128% jump from the year-ago period [1]. The company also closed the quarter with a record cash balance of $1.1 billion, reinforcing its strong financial footing. PAAS has returned approximately $103.5 million to shareholders as share repurchases during the first half of 2025, underlining its commitment to capital returns. Additionally, PAAS announced a 20% increase in its quarterly dividend payment to $0.12 per common share.

First Majestic Silver AG also reported a record $77.9 million in free cash flow in the second quarter of 2025, a significant jump from the $6.4 million reported in the second quarter of 2024 [1]. The company plans to invest this into growth capital, primarily focused on exploration and development projects. First Majestic ended the second quarter with $384.8 million in cash.

Endeavour Silver Corporation (EXK) reported an adjusted loss of 3 cents per share for the second quarter of 2025, missing the Zacks Consensus Estimate of earnings of 1 cent per share [2]. However, the company's revenues improved by 46% to $85 million, beating the Zacks Consensus Estimate of $80 million. EXK sold 1.46 million ounces of silver in the second quarter, up 20% year over year, and 7,706 ounces of gold, down 22% year over year. The average realized silver price was $32.95 per ounce in the quarter, up 14% year over year.

Acquisitions and Production Enhancements

PAAS is set to acquire MAG Silver Corp. for $500 million of its cash reserves, which owns a 44% stake in the Juanicipio project, the world’s largest-scale, highest-grade, and lowest-cost primary silver mine [1]. This acquisition is expected to increase PAAS’s silver production by roughly 35% on an annualized basis and meaningfully reduce all-in sustaining costs, further boosting its cash flow.

Endeavour Silver is also enhancing its operations with the addition of the Kolpa operation in May 2025, which produced 2.5 million silver-equivalent ounces in the second quarter of 2025, a 17% increase from the year-ago quarter [2].

Market Outlook

HSBC expects silver to average $35.14/oz in 2025 and remain elevated through 2027 amid record-high gold and ongoing supply deficits [3]. The bank raised its average silver price forecast to $35.14 per ounce for 2025, $33.96 for 2026, and $31.79 for 2027, signaling an upward shift in expectations. HSBC frames this change as linked more to silver’s correlation with gold, now trading at record levels, than to silver’s own fundamentals.

References:

[1] https://finance.yahoo.com/news/pan-american-silver-reports-record-153000674.html

[2] https://www.nasdaq.com/articles/endeavour-silver-q2-earnings-miss-estimates-revenues-increase-46-y-y

[3] https://investinghaven.com/silver/hsbcs-silver-outlook-forecasts-fundamentals-and-forward-view/