Pan American Silver Corp.’s Q3 results did not bring any major surprises at the group level, with lower EBITDA of US$159m, down 22% q-o-q, mainly a result of the continuing underperformance of La Colorada and lower-than-expected gold grades at El Penon. Yet the company reported flat (quarter-on-quarter) net operating cash flow of US$115m and broadly reiterated its FY23 operating guidance. Edison Group has revised downwards their near-term earnings estimates on the back of the results. However, their valuation has increased from US$22.0/share to US$22.7 due to updated longer-term gold price expectations. Although the shares have reacted negatively to the results, Edison expects a stronger Q4, while the commodity prices remain supportive against the backdrop of higher geopolitical risks.
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