Pan American Silver’s average realized silver price more than doubled year-over-year to $70.97 per ounce during the second quarter of 2026, helping drive attributable free cash flow to $344 million as higher precious metal prices and stronger silver production boosted financial results.
The $70.97 realized silver price compared with $32.91 per ounce a year earlier, an increase of approximately 116%. Q2 revenue increased to $1.124 billion from $812 million, while attributable revenue, which includes Pan American’s 44% interest in the Juanicipio mine, reached $1.268 billion.
Attributable free cash flow increased approximately 47% to $344 million from $234 million a year earlier. Attributable cash flow from operations reached $418 million, while reported operating cash flow was $320 million after $205 million of income taxes paid and a $17 million working capital use.
Higher metal prices also lifted profitability. Net earnings increased to $305 million from $190 million, while adjusted earnings reached $308 million compared with $155 million a year earlier. Basic adjusted EPS increased to $0.73 from $0.43.
Attributable silver production increased to 6.47 million ounces from 5.09 million ounces and reached the high end of Pan American’s quarterly guidance range. The company attributed the strong silver production partly to continued performance at La Colorada and Juanicipio.
Silver Segment all-in sustaining costs improved to $17.80 per ounce from $19.66 a year earlier, although the figure was slightly above Pan American’s quarterly outlook. Gold production declined to 165,900 ounces from 178,700 ounces, while Gold Segment AISC increased to $1,984 per ounce from $1,611.
The increase in precious metal prices is also creating a substantially higher tax bill. Pan American raised its expected 2026 cash tax range to $585 million to $635 million because profitability has exceeded management’s original assumptions. The outlook assumes second-half silver prices of $60 per ounce and gold prices of $4,000 per ounce.
Despite paying $205 million of taxes during Q2, Pan American returned a record $300 million to shareholders. The company repurchased approximately 4.4 million shares for $224 million during the quarter and paid $76 million in dividends.
By August 11, Pan American had repurchased approximately 7.3 million shares during 2026 for about $358 million at an average price of $49.22 per share. The company also declared another approximately $76 million cash dividend for Q2.
Pan American ended June with $1.8 billion of cash and short-term investments, including $97 million attributable to its interest in Juanicipio. Its revolving credit facility was undrawn and total debt stood at $841 million.
In July, Pan American doubled the size of its five-year senior unsecured revolving credit facility to $1.5 billion and added a $750 million accordion feature, increasing total available liquidity to $3.2 billion.
The company is also advancing La Colorada Skarn in Mexico. Development of the 588 Decline began in August after Pan American invested $20 million in the project during the first half. Engineering for the material handling system and ventilation shafts is expected to be presented to the board during the second half of 2026.
KEY QUOTES:
“Pan American delivered another quarter of strong financial results, generating $344 million in Attributable free cash flow.”
“We produced 6.5 million ounces of silver, at the upper end of our quarterly guidance, driven by continued strong performance at La Colorada and Juanicipio.”
“We returned a record $300 million to shareholders in Q2 through dividends and share repurchases. We are delivering on the enhanced shareholder return framework we announced in May.”
Michael Steinmann, President And Chief Executive Officer Of Pan American Silver
