PAN AMERICAN SILVER CORP Q2 2026 Earnings Recap

Shares dropped 9.5% as investors reacted negatively to the downward revision in near-term gold production guidance, driven by operational challenges and more cautious sequencing at key mines Jacobina and El Peñón.

Key Takeaways

• Q2 attributable silver production was strong at 6.5 million ounces, near the high end of guidance, supporting full-year silver production outlook of 25-27 million ounces.
• Gold production came in below quarterly expectations at approximately 166,000 ounces, with Q2 flagged as the weakest gold quarter of 2026.
• Full-year gold production guidance reaffirmed but now expected at the low end of 700,000-750,000 ounces, reflecting a revision downward by 3,000 to 6,000 ounces for Q3.
• Operational challenges at Jacobina include mining sequencing changes and seismicity risk mitigation, reducing grades and production; gold output at Jacobina expected to be ~10,000 ounces below original guidance.
• El Peñón gold production also adjusted down by ~10,000 ounces due to structural continuity issues; silver production remains on target.