Silver crash hits revenue, but record returns and BofA pick support PAAS
Silver price crash below $60 Silver fell below $60 an ounce, down over 50% from its January peak, driven by a stronger dollar and rising Treasury yields. This directly cuts Pan American's revenue because it sells silver at lower prices, pressuring the stock.
The silver price is the biggest driver of PAAS revenue and explains the stock's weakness.
BofA names PAAS a top pick Bank of America added Pan American Silver as a new top pick with 56% potential upside, even as it cut commodity forecasts broadly. This boosts investor confidence and can attract buyers, pushing the stock up.
A major analyst endorsement can shift sentiment and drive demand for the shares.
Record $300M shareholder returns and doubled credit line Pan American reported record quarterly shareholder returns of $300 million, $344 million in free cash flow, and doubled its credit facility to $1.5 billion. This shows financial strength and rewards shareholders, supporting the stock price.
Strong cash flow and returns signal financial health, which can lift the stock.
2026 silver cost guidance rises 22% Pan American guided 2026 silver all-in sustaining costs to $15.75-$18.25 per ounce, a 22% increase from 2025, due to higher costs at La Colorada and Huaron. Higher costs squeeze profit margins, which can weigh on the stock.
Rising costs directly reduce profitability and are a key factor for future earnings.