Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS) reported record fourth quarter results and higher-than-expected annual silver production in 2025, driven in part by strong output at its Juanicipio mine, the company said in a preliminary production update on Wednesday.
The company said attributable silver production reached 22.8 million ounces for the full year, exceeding its updated guidance range, and set a quarterly record with 7.3 million ounces produced in the fourth quarter.
Attributable gold production for the year was 742,200 ounces, within guidance, with 197,800 ounces produced in the fourth quarter.
Pan American highlighted the contribution from Juanicipio, which the company acquired in September 2025. Since the acquisition, the mine produced 2.5 million ounces of silver and generated a $44 million dividend in December.
The company also reported a stronger cash position at year end. On an unaudited basis, cash and short-term investments were estimated at $1.319 billion as of December 31, 2025, an increase of about $408 million from September 30. The figure excludes an additional $127 million in cash attributable to Pan American’s 44% investment in Juanicipio.
“Silver production in 2025 exceeded the top end of our guidance range. We increased our 2025 silver production estimate to reflect the addition of Juanicipio in September, and the mine has performed better than expected,” Pan American Silver CEO Michael Steinmann said in a statement.
“The increase in our estimated year-end 2025 cash balance reflects strong silver and gold production and expanded operating margins from the increase in metal prices in Q4.”
Looking ahead to 2026, Pan American forecast attributable silver production of 25 million to 27 million ounces and attributable gold production of 700,000 to 750,000 ounces.
The company projected silver segment all-in sustaining costs of $15.75 to $18.25 per ounce and gold segment AISC of $1,700 to $1,850 per ounce.
Capital expenditures for 2026 are expected to range from $515 million to $550 million, including $320 million to $340 million in sustaining capital and $195 million to $210 million in project capital.
“Our 2026 operating outlook and assumptions for 2026 metal prices point to further expansion of operating margins,” Steinmann said.
While investors initially reacted positively to the preliminary results, likely due to profit-taking with rapid gains driven by rising silver prices. Shares traded down 1.3% at about $58, having surged almost 165% in the last year.
The company will release its audited financial and operating results for Q4 and full year 2025 on February 18 after markets close.