Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) reported second quarter 2026 financial results on August 12, 2026, disclosing record shareholder returns of $300 million delivered through dividends and share repurchases during the period. The Vancouver-based miner also reported attributable free cash flow of $344 million and silver production at the high end of quarterly guidance.
The results arrive as silver and gold prices have risen sharply year over year. Pan American realized an average silver price of $70.97 per ounce in Q2 2026, compared with $32.91 in the same quarter of 2025. Gold averaged $4,402 per ounce, up from $3,305. The higher price environment underpinned both the production economics and the company's expanded capital return program.
#Pan American Reports $1.1 Billion in Q2 Revenue
Consolidated revenue for the quarter was $1.1 billion. Attributable revenue, which includes Pan American's 44% share of the Juanicipio joint venture in Mexico and excludes the 5% non-controlling interest in the San Vicente mine, was $1.3 billion.
Net earnings were $305 million, or $0.72 per share on a basic basis. Adjusted earnings were $308 million, or $0.73 per share.
Cash flow from operations was $320 million after $205 million in income taxes paid. On an attributable basis, operating cash flow was $418 million.
The company ended the quarter with $1.8 billion in cash and investments. In July, Pan American doubled the size of its senior unsecured revolving credit facility to $1.5 billion and added a $750 million accordion feature, bringing total available liquidity to $3.2 billion.
#Shareholder Returns Reach $300 Million on Expanded Buyback Program
Pan American repurchased approximately 4.4 million shares for cancellation during Q2 2026 at an average price of $51.46 per share, for a total cost of approximately $224 million. Aggregate dividends paid in the quarter were $76 million.
"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, Pan American Silver, said in the earnings release.
As of August 11, 2026, the company had repurchased a total of approximately 7.3 million shares year to date at an average price of $49.22 per share. A quarterly cash dividend of $0.184 per common share was declared on August 12, 2026, payable on or about September 4, 2026.
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#Silver Production Hits High End of Guidance as Gold Falls Short
Attributable silver production was 6.47 million ounces in Q2, at the high end of the company's quarterly guidance range. The company attributed the performance to its La Colorada and Juanicipio operations.
Attributable gold production was 165.9 thousand ounces, below the quarterly guidance range. The company said gold production is now expected to be at the low end of its full year guidance range of 700 to 750 thousand ounces, with output weighted toward the fourth quarter.
Silver segment all-in sustaining costs were $17.80 per ounce, slightly above the quarterly outlook range. Gold segment AISC was $1,984 per ounce, also slightly above quarterly guidance. The company reiterated its full year 2026 operating outlook for both production and AISC.
Pan American operates silver and gold mines across Canada, Mexico, Peru, Brazil, Bolivia, Chile, and Argentina. Its primary peer in large-scale silver production is First Majestic Silver, while its diversified precious metals portfolio competes more broadly with mid-tier gold producers operating in Latin America.
The company reported that the first cut of the 588 Decline at its La Colorada Skarn project in Mexico was completed in early August 2026. The company described this as a step toward advancing the expansion of the La Colorada silver mine.
At Jacobina in Brazil, Pan American said it implemented measures in Q2 2026 to address seismic risk, including larger pillars and adjusted production rates in certain areas. Gold production at Jacobina is now expected to be approximately 10 thousand ounces below the low end of the original guidance range.
The company also noted that extreme rainstorms linked to El Nino have affected site access at operations in Chile and Argentina and may continue to cause disruptions. Additionally, higher metal prices have led the company to raise its guidance for taxes paid in 2026 to between $585 million and $635 million.
Management projected gold production increases in the second half of 2026 at Timmins and Shahuindo, though El Nino weather disruptions, seismic risk at Jacobina, lower gold production at El Penon, and commodity price volatility remain risks to the outlook.