Pan American Silver earnings miss forecasts as estimates decline

Pan American Silver Corp. reported quarterly earnings that fell short of analyst expectations as declining silver prices and reduced production forecasts weighed on results.

The Vancouver-based miner posted adjusted earnings of $0.12 per share for the latest quarter, below the $0.15 per share forecast from a Refinitiv consensus of 10 analysts. Revenue also missed projections, totaling $512 million versus an estimated $530 million.

Production guidance for 2024 was lowered to 17.5-18.5 million ounces of silver, down from a prior range of 18.0-19.0 million ounces. The company cited operational challenges and weaker ore grades at key mines, including La Colorada in Mexico, as contributing factors.

Silver prices have declined nearly 10% this year amid a stronger U.S. dollar and concerns over global economic growth. The metal’s spot price averaged $22.75 per ounce in the quarter, compared with $24.50 in the same period last year.

Pan American Silver’s shares fell 3.5% in pre-market trading following the results, extending losses from the prior session. Analysts at BMO Capital Markets maintained a market perform rating but reduced their price target to $22 from $24, citing weaker near-term fundamentals.

The company’s CEO acknowledged the challenges but highlighted cost-control measures and a focus on higher-margin assets to mitigate pressure. Longer-term, Pan American Silver remains exposed to silver price volatility, a key risk for investors in the sector.