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Pan American Silver (PAAS) Q4 Earnings Miss, Sales Rise Y/Y

Pan American Silver Corp. PAAS reported an adjusted loss per share of 4 cents for fourth-quarter 2023. The Zacks Consensus Estimate was pegged at earnings of 8 cents per share for the quarter. PAAS had reported an adjusted loss per share of 2 cents in the year-ago quarter.

Including one-time items, Pan American Silver reported a loss of 19 cents per share in the quarter compared with the year-ago quarter’s loss of 82 cents.

Pan American Silver’s revenues surged 78.4% year over year to $670 million in the quarter under review. The top line beat the Zacks Consensus Estimate of $658 million. The average realized silver price in the quarter was $22.33 per ounce, up 5.5% from $21.17 in the prior-year quarter. The average realized gold price moved up 14.1% year over year to $1,980 per ounce.

Operational Update

Silver production in the quarter was 4.8 million ounces, rising 1.5% year over year. Gold production was 268 thousand ounces in the reported quarter, reflecting a year-over-year increase of 63.4%.

The Silver segment’s cash costs were $19.31 per ounce in the fourth quarter, up 34% from the year-ago period. The segment’s all-in-sustaining costs (AISC) rose 49.2% year over year to $26.55 per ounce in the quarter.

The Gold segment’s cash costs were $1,096 per ounce, reflecting a 1.8% increase from the year-ago quarter. The segment’s AISC costs amounted to $1,411 per ounce in the October-December period, representing a year-over-year decrease of 6.1%.

Pan American Silver Corp. Price, Consensus and EPS Surprise

 

Pan American Silver Corp. Price, Consensus and EPS Surprise
Pan American Silver Corp. Price, Consensus and EPS Surprise

Pan American Silver Corp. price-consensus-eps-surprise-chart | Pan American Silver Corp. Quote

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Pan American Silver reported a mine-operating profit of $65 million in the quarter compared with $35 million in the fourth quarter of 2022.

Financial Position

As of Dec 31, 2023, PAAS had cash and short-term investment balances of $440.9 million, working capital of $765.8 million, and $750 million available under its revolving Sustainability-Linked Credit Facility . The total debt of $802 million was related to construction and other loans, leases and two senior notes Pan American assumed through the acquisition of Yamana. Net cash generated in operations was $167 million in the fourth quarter.

2023 Performance

Pan American Silver delivered adjusted earnings per share of 12 cents in 2023, missing the Zacks Consensus Estimate of 21 cents. It reported adjusted earnings of 9 cents in 2022. Including one-time items, the company reported a loss of 32 cents per share in the quarter compared with the loss of $1.62 reported in 2022.

The company’s revenues grew 55% year over year to $2.3 billion in 2023. The top-line figure met the Zacks Consensus Estimate.

Price Performance

Shares of Pan American Silver have lost 10.3% in the past year compared with the industry’s 8.7% decline.

 

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

Pan American Silver currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation CRS, Ecolab Inc. ECL and Alpha Metallurgical Resources, Inc. AMR. These three companies currently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 29.8% in a year.

The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 34.3% in a year.

Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares rallied 132% last year.

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