Unaudited Second Quarter Results for the year 2025 by Pan American Silver announced
Pan American Silver Expects Significant Increase in Silver Production with Acquisition of MAG Silver
Pan American Silver Corporation, a leading producer of silver and gold in the Americas, has announced that its acquisition of MAG Silver Corp. and its 44% stake in the Juanicipio mine in Mexico is expected to significantly increase Pan American's silver production and improve its cost efficiency.
The Juanicipio mine is a high-grade, low-cost silver producer that is projected to add approximately 6.5–7.3 million ounces of silver production (on a 44% basis) in 2025, contributing to a substantial boost in Pan American’s silver output upon closing the deal in the second half of 2025.
Key effects of the acquisition on Pan American Silver’s silver production include:
- Increased silver reserves and output: The acquisition adds 58 million ounces of silver reserves, solidifying Pan American’s asset base with Juanicipio’s high-grade ore.
- Low production costs: Juanicipio operates at remarkably low cash costs, ranging from negative $1.00 to $1.00 per ounce, with MAG reporting even a negative $3.90 per ounce cash cost in recent quarters, helping Pan American improve overall cost efficiency in silver production.
- Operational synergies: Juanicipio’s proximity to Pan American's La Colorada mine in Mexico allows for cross-site efficiencies in logistics and processing, lowering transportation and operational costs further.
- Free cash flow boost: Juanicipio is expected to generate about $200 million in projected free cash flow, enhancing Pan American’s financial capacity for reinvestment or shareholder returns.
- Diversified portfolio with growth potential: The deal also integrates MAG's exploration projects, adding growth opportunities beyond current production.
Overall, Pan American Silver’s silver production profile will be materially strengthened by the acquisition of MAG Silver and the Juanicipio mine, transitioning the company into a larger, more cost-efficient, and strategically diversified silver producer with increased exposure to the Americas. The merger is anticipated to close in H2 2025, after which these production impacts will be realized fully.
The company's shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "PAAS". A live webcast, presentation slides, and the report for Q2 2025 will be available on Pan American’s website at https://panamericansilver.com/invest/financial-reports-and-filings/. The conference call and webcast will take place on August 7, 2025, at 11:00 am ET (8:00 am PT).
Readers are advised to refer to the "Alternative Performance (non-GAAP) Measures" section of Pan American's Q2 2025 MD&A for a more detailed discussion of these and other non-GAAP measures and their calculation. The company's news release should be read in conjunction with Pan American's Unaudited Condensed Interim Consolidated Financial Statements and its MD&A for the three and six months ended June 30, 2025.
The company also owns the Escobal mine in Guatemala that is currently not operating, and it holds interests in exploration and development projects. For more information, contact Siren Fisekci, VP, Investor Relations & Corporate Communications, at 604-806-3191 or [email protected].
The company cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties, and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release. These documents are available on Pan American’s website at https://panamericansilver.com/invest/financial-reports-and-filings/ on SEDAR+ at
Participants can register for the conference call at https://dpregister.com/sreg/10200364/ff52792798. The company can also be followed on LinkedIn. The company's headquarters are in Vancouver, B.C. The company does not intend, nor does it assume any obligation, to update or revise forward-looking statements or information to reflect changes in assumptions or in circumstances or any other events affecting such statements or information, other than as required by applicable law. The forward-looking statements and information in this news release are based on a number of assumptions that, while considered reasonable by Pan American, are inherently subject to significant operational, business, economic, and regulatory uncertainties and contingencies.
The AISC forecast assumes average metal prices of $30.00/oz for silver, $2,650/oz for gold, $3,000/tonne ($1.36/lb) for zinc, $2,000/tonne ($0.91/lb) for lead, and $9,500/tonne ($4.31/lb) for copper. The forecast also assumes average annual exchange rates relative to 1 USD of 20.00 for the Mexican peso, 3.75 for the Peruvian sol, 1,177.00 for the Argentine peso, 7.00 for the Bolivian boliviano, 1.38 for the Canadian dollar, 950.00 for the Chilean peso, and 5.75 for the Brazilian real.
The company's news release can be accessed at https://www.businesswire.com/news/home/20250805783926/en/. The webcast link is https://event.choruscall.com/mediaframe/webcast.html?webcastid=1qKk9Y8Q. The company's website is https://panamericansilver.com/.
- This strategic move by Pan American Silver to acquire MAG Silver and its stake in the Juanicipio mine is anticipated to provide significant opportunities for investing in real-estate, as the increased silver production will boost the company's financial strength, enabling it to reinvest or return more capital to shareholders.
- The acquisition of MAG Silver will not only augment Pan American's business portfolio by incorporating exploration projects, but also transform the company into a larger, more cost-efficient, and diversified player in the industry and finance sector, with an increased focus on the Americas.
