Pan American Silver Corp. PAAS and First Majestic Silver Corp. AG are well-known names within the silver mining sector, sharing a number of key similarities that outline their strategic positioning and investor enchantment. Each are headquartered in Vancouver, Canada, and supply buyers with publicity to silver and gold.
Silver costs have gained 75.9% yr over yr, with gold costs up 56.9%, supported by robust safe-haven demand, geopolitical tensions and escalating commerce conflicts. Silver has benefited from resilient industrial demand and mounting provide deficits. Demand for photo voltaic power, electronics and electrification now accounts for greater than half of worldwide silver demand. At the moment, silver is buying and selling at a close to record-high $53.70, pushed by additional expectations of a price lower, which bodes effectively for costs.
For buyers looking for to capitalize on this momentum, the important thing query is: Which silver inventory stands out, Pan American Silver or First Majestic Silver? Let’s discover the basics, progress drivers and potential headwinds going through each firms to search out out.
The Case for Pan American Silver
Pan American is a number one producer of silver and gold within the Americas, working mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. The corporate has 12 working mines. It additionally owns the Escobal mine in Guatemala, which is at the moment not working, and it holds pursuits in exploration and growth tasks.
The MAG Silver acquisition has positioned PAAS as one of many main silver producers globally and considerably strengthened the corporate’s industry-leading silver reserve base. As part of the MAG Silver Corp. deal, Pan American Silver gained a 44% stake within the Juanicipio undertaking, which is predicted to provide 14.7-16.7 million ounces of silver in 2025. With only a month of contribution from its stake within the Juanicipio mine, Pan American Silver noticed a robust influence on its silver phase efficiency and money move within the third quarter of 2025. The transaction additionally provides full possession of the Larder exploration undertaking and a full earn-in curiosity within the Deer Path exploration undertaking to PAAS’s portfolio.
PAAS’s third-quarter silver manufacturing reached 5.5 million ounces, flat in contrast with the output from the identical interval final yr. Contemplating a month of robust efficiency from its stake within the Juanicipio mine, Pan American Silver has elevated its silver manufacturing outlook for 2025 to 22-25 million ounces, up from the prior acknowledged 20-21 million ounces. The corporate produced 21.1 million ounces of silver in 2024.
Gold manufacturing for the third quarter was 183.5 thousand ounces. It was decrease than the 225 thousand ounces produced within the year-ago quarter. PAAS is sustaining its gold manufacturing for 2025 at 735-800 thousand ounces, indicating a decline from the 895.5 thousand ounces registered in 2024, reflecting the lack of contribution from the La Enviornment mine and Dolores.
Silver Phase All-in Sustaining Prices (AISC) per silver ounce have been $15.43 within the third quarter of 2025, decrease than $20.90 within the year-ago quarter. Gold Phase AISC was $1,4697 per ounce in contrast with $1,516 per ounce within the first quarter of 2024.
A free money move of file $252 million within the third quarter of 2025 pushed Pan American Silver’s money and short-term investments stability to $910.8 million. This excludes the extra $86 million of money generated from PAAS’s 44% curiosity at Juanicipio publish the MAG Silver acquisition. On the finish of the third quarter of 2025, the corporate had working capital of $1.01 billion and $750 million obtainable underneath its credit score facility.
Backed by a robust money move technology, PAAS not too long ago elevated its quarterly dividend by 17% to 14 cents from the prior cost of 12 cents.
The Case for First Majestic Silver
First Majestic is targeted on silver and gold manufacturing in Mexico and america. The corporate operates 4 producing underground mines in Mexico: the Cerro Los Gatos Silver Mine, the Santa Elena Silver/Gold Mine, the San Dimas Silver/Gold Mine and the La Encantada Silver Mine, in addition to a portfolio of growth and exploration belongings, together with the Jerritt Canyon Gold undertaking positioned in northeastern Nevada, USA.
In January 2025, First Majestic accomplished the acquisition of Gatos Silver, Inc., thereby gaining a 70% curiosity within the high-quality, long-life Cerro Los Gatos Silver underground mine and solidifying its place as an intermediate main silver producer.
Los Gatos contributed 2.13 million AgEq ounces (on a 70% foundation), which consisted of 1.41 million ounces of silver and 727 ounces of gold. It additionally contributed 13.89 million kilos of zinc and seven.65 million kilos of result in First Majestic’s whole manufacturing quantity. This pushed AG’s whole manufacturing to 7.7 million silver-equivalent (AgEq) ounces within the third quarter of 2025, marking a strong 39% year-over-year improve.
AG produced a file 3.9 million silver ounces, up 96% yr over yr. Gold manufacturing was down 5% to 35,681 ounces within the third quarter. The corporate is on observe to satisfy its consolidated manufacturing steering of 30.6-32.6 million AgEq ounces for 2025.
First Majestic achieved a file quarterly free money move within the third quarter. The corporate’s money move elevated 67.5% yr over yr to $98.8 million, with liquidity reaching $682 million. AG reported a file working capital of $542.4 million. It maintains an annual dividend of 0.02 cents.
How Do Estimates Evaluate for PAAS & AG?
The Zacks Consensus Estimate for Pan American Silver’s 2025 earnings is pinned at $2.15 per share, indicating year-over-year progress of 172%. Earnings estimates of $3.41 for 2026 point out an increase of 58.5%. The estimates for each 2025 and 2026 have been trending north over the previous 60 days.
Picture Supply: Zacks Funding Analysis
The Zacks Consensus Estimate for First Majestic’s earnings for 2025 is pegged at 25 cents per share, indicating an enchancment from the lack of 14 cents in 2024. The 2026 estimate of 33 cents implies a progress of 34%. The estimates for each 2025 and 2026 have been trending south over the previous 60 days.
Picture Supply: Zacks Funding Analysis
PAAS & AG: Value Efficiency, Valuation & Different Comparisons
Up to now yr, PAAS inventory has surged 99.2%, outperforming the {industry}’s progress of 116.9%. In the meantime, AG has gained 120.6%.
Picture Supply: Zacks Funding Analysis
PAAS is at the moment buying and selling at a ahead 12-month price-to-sales (P/S) a number of of 4.38X, larger than its five-year median. SSRM is at the moment buying and selling at a ahead 12-month earnings a number of of 5.71X, larger than its five-year median.
Picture Supply: Zacks Funding Analysis
PAAS or AG: Which Is the Higher Decide?
Pan American Silver and First Majestic are poised to learn from the present surge in silver and gold costs, in addition to larger manufacturing expectations and their enlargement efforts, each natural and thru acquisitions.
PAAS sports activities a Zacks Rank #1 (Robust Purchase), whereas AG carries a Zacks Rank #2 (Purchase). You may see the whole checklist of as we speak’s Zacks #1 Rank shares right here.
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Pan American Silver Corp. (PAAS) : Free Inventory Evaluation Report
First Majestic Silver Corp. (AG) : Free Inventory Evaluation Report
This text initially revealed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.
