Pan American Silver shares experienced a sharp 24-hour decline of 5.19%, extending the sell-off that began in after-hours trading following the release of the company's second-quarter financial results.
The miner reported adjusted earnings of $0.73 per share, missing the analyst consensus estimate of approximately $1.04 by nearly 30%. Revenue came in at $1.124 billion, also below the $1.158 billion that Wall Street had forecast. The earnings miss represented a stark contrast to the prior quarter, when the company significantly beat expectations, and quickly dampened investor sentiment.
Adding to the negative tone, the company revealed that gold production fell below its quarterly guidance range and revised its full-year outlook, now expecting gold output at the low end of its annual forecast. All-in sustaining costs for gold are also projected to be at the high end of the guidance range. The combination of the earnings shortfall and cautious forward guidance triggered a sharp sell-off, with the stock tumbling over 8% in after-hours trading before the 24-hour plunge of 5.19% materialized.
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