Shares of Pan American Silver (PAAS) are surging 5.13% in pre-market trading on Thursday, following the company's announcement of record third-quarter results and a reaffirmed Buy rating from a Wall Street analyst. The strong performance and positive outlook have sparked investor interest in the silver mining company.
Pan American Silver reported impressive financial results for the third quarter, including record attributable revenue of $884.4 million and net earnings of $169.2 million, or $0.45 per share. The company's strong cash flow generation allowed for an increase in the quarterly dividend to $0.14 per common share. Additionally, Pan American's cash position remains robust, with $910.8 million in cash and short-term investments, plus an additional $85.8 million held at the Juanicipio mine.
Adding to the positive sentiment, Bank of America analyst Lawson Winder reaffirmed a Buy rating on Pan American Silver. This endorsement, coupled with the company's recent acquisition of MAG Silver Corp. and subsequent increase in silver production guidance, has bolstered investor confidence. The company now expects 2025 silver production to reach 22.0-22.5 million ounces, while lowering its Silver Segment all-in sustaining costs to $14.50-$16 per ounce, indicating improved operational efficiency and growth prospects.
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