Pan American Silver Q3 2026: EPS Beat, Revenue Miss, and Rising Gold Costs
As seen on the 24/7 Wall St. homepage on November 4, 2026.
Record silver and gold prices carried the quarter, but management cut 2026 gold production guidance to 660,000-680,000 ounces and lifted gold all-in sustaining costs to $2,000-$2,150 an ounce on weaker output at Jacobina, El Penon, Shahuindo and Timmins. That cost creep, alongside a slight EPS beat, is what sets up the 2027 debate.
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Pan American Silver's third quarter showed what happens when metal prices are strong but mine output disappoints. Revenue reached $1.01 billion, up nearly 18% from the same quarter a year earlier, powered by a realized silver price of $63.74 per ounce versus $39.08 and a realized gold price of $4,267 versus $3,479. Despite that metal-price tailwind, revenue fell about 4.9% short of the $1.06 billion analysts had expected, as gold and silver sales volumes each slid roughly 10% year over year.
On the earnings side, the story was more encouraging. Adjusted EPS came in at $0.69, edging past the $0.66 consensus by about 4.3%. GAAP net income reached $357 million, more than double the year-ago figure, helped by $61 million of investment income and a $29 million gain on asset sales including the $25 million Larder Project sale to Cadillac Mines Corporation. Operating cash flow rose 22% to $377 million.
The forward-looking numbers are where investors have the most to digest. Management trimmed 2026 gold production guidance to 660,000 to 680,000 ounces and raised gold all-in sustaining costs to $2,000 to $2,150 per ounce, citing weaker output at Jacobina, El Peñon, Shahuindo, and Timmins. Silver production is now expected at the low end of the 25 to 27 million ounce range, partly because of unplanned downtime at Huaron for grinding mill foundation repairs and a higher gold-to-silver ratio at Cerro Moro.
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Cost pressure is not uniform across the portfolio, but it is broadening. Gold Segment AISC came in at $2,281 per ounce for Q3, already above the revised full-year ceiling of $2,150. Dolores saw AISC spike to $4,024 per ounce as it winds down on residual heap leaching, while Minera Florida's AISC rose to $3,452. The company also flagged that remediation of inspection deficiencies at Jacobina flagged by Brazil's National Mining Agency could affect 2027 production, though no specific impact has been quantified.
Looking into next year, several project milestones are approaching. The La Colorada Skarn hoisting and ventilation shafts and the Jacobina paste backfill plant are both targeted for board approval in early 2027. The Timmins Camp preliminary economic assessment is planned for the first half of 2027. Meanwhile, the company ended the quarter in a strong balance sheet position: cash and equivalents of $1.51 billion, a net cash position of $722 million, and an undrawn $1.5 billion credit facility maturing in 2031. A quarterly dividend of $0.185 per share was declared alongside the results.