Pan American Silver: Trading At Its Cheapest Levels Since March 2020

Summary

  • Pan American Silver released its Q2 results last month, reporting quarterly production of ~4.54 million ounces of silver and ~128,300 ounces of gold.
  • The quarterly decline in gold production combined with lower silver prices and negative settlement adjustments resulted in an 11% decline in revenue in the period.
  • Unfortunately, the company also reported a write-down at Dolores, and continues to be impacted by inflationary pressures, prompting an increase in its gold cost guidance.
  • However, with the stock now trading at 0.90x P/NAV and ~7.0x FY2023 cash flow after making new lows post-earnings, much of this negativity looks to be priced into the stock.
Mining work

DarioGaona

Q2 Production & Sales

I wrote on Pan American Silver (NYSE:PAAS) just over a month ago, noting that pullbacks below $18.15 would present a buying opportunity, given that quite a bit of negativity was already priced into the stock. This turned

This article was written by

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Taylor Dart is an individual investor with over 16 years of trading experience, with his primary focus being precious metals developers, producers and royalty/streaming companies.

Taylor leads the investing group Alluvial Gold Research, where he offers portfolios with entry/exit points, Buy/Sell alerts, and proprietary sentiment indicators for gold and silver miners. Learn more.

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