Pan American Silver highlights multi-asset growth strategy at Investor Day, Jefferies stays on the sidelines
Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS) has outlined what Jefferies analysts see as a clearer path to internally funding its multi-asset growth pipeline, anchored by La Colorada, with Juanicipio supporting margins and Jacobina and Timmins providing additional upside optionality. The...
Pan American Silver Corp.(TSX:PAANASDAQ:PAAS) View Price & Profile Pan American Silver highlights multi-asset growth strategy at Investor Day, Jefferies stays on the sidelines
Published: 13:29 03 Jun 2026 EDT
Pan American Silver Corp. (TSX:PAA, NASDAQ:PAAS) has outlined what Jefferies analysts see as a clearer path to internally funding its multi-asset growth pipeline, anchored by La Colorada, with Juanicipio supporting margins and Jacobina and Timmins providing additional upside optionality.
The company hosted an Investor Day on June 1 in Toronto, where management discussed its portfolio strategy and development plans across key operating regions.
Jefferies wrote that, with a strong balance sheet, the investment case is increasingly shifting toward capital discipline, noting that the company retains a wide range of brownfield opportunities across its asset base while continuing to remain opportunistic on mergers and acquisitions.
At Jacobina in Brazil, Pan American is pursuing what Jefferies described as an optimization-led growth strategy rather than a single expansion step. The program includes more than 30 workstreams under evaluation, with results expected to be released progressively.
Key initiatives include paste backfill, tailings filtration, and plant modernization, aimed at lifting gold recovery toward approximately 96%, unlocking remnant material, and increasing throughput toward and potentially beyond the permitted 10,000 tonnes per day from roughly 8,500 tonnes per day currently.
Jefferies wrote that these initiatives, combined with ongoing in-mine exploration, could extend mine life and support incremental production growth with relatively modest capital requirements.
In Canada, Pan American also announced plans to invest $146 million to expand its Timmins operations to utilize spare capacity at the Bell Creek plant. Jefferies noted that approximately $40 million to $43 million of the capital expenditure is already included in 2026 guidance.
The expansion plan includes deepening the Bell Creek shaft from 1,080 metres to 1,705 metres, an 814-metre drift to the Vogel satellite deposit, and a 1.3-kilometre exploration drift to the Samson satellite deposit.
The initiative is expected to increase throughput at Timmins from roughly 4,000 tonnes per day to 5,600 tonnes per day, with commissioning targeted for the first half of 2029.
Jefferies wrote that management views the Timmins system as a potential long-life mining hub, with opportunities to extend mine life into the 2040s through integration of satellite deposits and deeper resources. While early-stage, the company also acknowledged potential longer-term regional optimization options, including potential synergies with nearby infrastructure.
Jefferies cut its 2026 earnings per share estimate for Pan American by 5% while raising its 2027 estimate by 33% relative to prior forecasts.
The firm maintained a ‘Hold’ rating on the stock, citing valuation as the primary reason. Shares traded down 4% at about $53 on Wednesday afternoon, up about 2% so far this year.