Pan American Silver (PAAS) Reserves Rise on Yamana Buyout
Pan American Silver Corp. PAAS disclosed a significant increase in its estimated mineral reserves and mineral resources as of Jun 30, 2023. This reflects the addition of the assets from the Yamana transaction.
The company’s proven and probable mineral reserves are estimated to include 576.6 million ounces of silver and 12.9 million ounces of gold. This marks an improvement from the proven and probable mineral reserves of 515 million ounces of silver and 4 million ounces of gold reported as of Jun 30, 2022.
Measured and indicated mineral resources are estimated to total 959.1 million ounces of silver and 17.5 million ounces of gold, up from the 839 million ounces of silver and 8 million ounces of gold estimated in the year-ago period.
The company’s inferred mineral resources are 479.4 million ounces of silver and 9.2 million ounces of gold. At the end of Jun 30, 2022, the company had 508 million ounces of silver and 6 million ounces of gold as its inferred mineral resources. The decrease in silver ounces is primarily owing to the removal of the inferred mineral resource for the Shahuindo sulfides following metallurgical test work.
In the second quarter of 2023, Pan American Silver reported adjusted earnings per share of 4 cents, missing the Zacks Consensus Estimate of 8 cents. PAAS had reported an adjusted loss per share of 3 cents in the year-ago quarter.
Pan American Silver’s revenues surged 87.9% year over year to $640 million in the quarter under review, reflecting the expanded operating base after the Yamana transaction. However, the top line missed the Zacks Consensus Estimate of $648 million. The average realized silver price in the quarter increased 2% year over year to $23.45 per ounce. The average realized gold price was up 6.8% year over year to $1,975 per ounce.
Price Performance
Shares of Pan American Silver have lost 0.2% in the past year against the industry’s growth of 5.6%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Pan American Silver currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the basic materials space are Hawkins, Inc. HWKN, PPG Industries, Inc. PPG and L.B. Foster Company FSTR. HWKN sports a Zacks Rank #1 (Strong Buy) at present, and PPG and FSTR carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Hawkins has an average trailing four-quarter earnings surprise of 25.5%. The Zacks Consensus Estimate for HWKN’s fiscal 2024 earnings is pegged at $3.40 per share. The consensus estimate for 2024 earnings has moved 38% north in the past 60 days. Its shares gained 35.7% in the last year.
The Zacks Consensus Estimate for PPG Industries’ fiscal 2023 earnings per share is pegged at $7.47, indicating growth of 23.5% from the prior-year actual. Earnings estimates have moved 3% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 4.3%. PPG’s shares have gained 9.7% in the past year.
L.B. Foster has an average trailing four-quarter earnings surprise of 134.5%. The Zacks Consensus Estimate for FSTR’s 2023 earnings is pegged at 53 cents per share. Earnings estimates have been unchanged in the past 60 days. FSTR’s shares gained 30.2% in the last year.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PPG Industries, Inc. (PPG) : Free Stock Analysis Report
L.B. Foster Company (FSTR) : Free Stock Analysis Report
Pan American Silver Corp. (PAAS) : Free Stock Analysis Report
Hawkins, Inc. (HWKN) : Free Stock Analysis Report
