Pan American Silver Corp.

Pan American Silver Corp. reported second quarter 2026 financial results, including record quarterly shareholder returns of $300 million through dividends and share repurchases. The company generated $344 million in attributable free cash flow and produced 6.47 million ounces of attributable silver, at the high end of its quarterly guidance range, while attributable gold production was 165.9 thousand ounces, below the guidance range. Revenue was $1.1 billion, with attributable revenue of $1.3 billion including its 44% share of Juanicipio, and net earnings were $305 million, or $0.72 per share. Pan American also announced it had renewed and amended its five-year senior unsecured revolving credit facility, doubling its size to $1.5 billion with an additional $750 million accordion feature, increasing total available liquidity to $3.2 billion. The company reiterated its 2026 operating outlook for production and costs, though it now expects full-year gold production at the low end of its guidance range of 700 to 750 thousand ounces.

Silver is undergoing a revaluation as a critical mineral for clean energy, electronics, and defense, with industrial demand outpacing mine supply since 2022. Three miners stand out for investors: First Majestic Silver, Hecla Mining, and Pan American Silver. First Majestic, a pure-play silver producer, reported second-quarter revenue of $415.5 million, up 57% year over year, and earnings per share of $0.22, double the prior year. Hecla Mining, the largest primary silver producer in the U.S. and Canada, posted first-quarter revenue of $411 million, up 100% year over year, and earnings per share of $0.25, up from $0.04. Pan American Silver, which doubled its scale after acquiring Yamana Gold's Latin American assets, reported first-quarter revenue of $1.2 billion, up 49.3% year over year, and earnings per share of $1.09, a 160% increase. All three companies maintain strong balance sheets with low debt-to-EBITDA ratios and offer dividend policies tied to silver prices or revenue, though their shares have fallen between 9% and 25% this year, presenting a potential value opportunity.

Global X Silver Miners ETF has delivered a 46% return over the past three years, surpassing the 27.7% return of SPDR Gold Shares, even as the gold fund leads over five- and ten-year periods with annualized returns of 17.5% and 11.3% compared to 14% and 7.6% for the silver miners fund. The silver miners ETF carries a higher expense ratio of 0.65% versus 0.40% for the gold ETF and exhibits significantly greater volatility with a beta of 0.84 against 0.17. While SPDR Gold Shares holds physical bullion and offers a direct hedge against currency devaluation, the Global X fund invests in silver mining companies, providing operational leverage and potential shareholder returns through dividends and buybacks. The analysis concludes that the silver miners ETF may be the better buy due to management's ability to enhance returns, despite the gold fund's lower cost and stability.

Bank of America has cut 32 price objectives across its commodities coverage and lowered 2026 estimates for 31 of the 33 companies it tracks, yet uranium stands out as its top conviction call with 23% upside versus spot. The firm sees Cameco as its top uranium pick, citing leverage to higher realized prices, a solid balance sheet, and roughly 48% upside to its price target, while also flagging the benefit of Cameco's 49% stake in Westinghouse Electric Company amid the U.S. nuclear buildout. In precious metals, BofA trimmed its 2026 gold forecast by 14% to $4,360 an ounce and added Pan American Silver as a new top pick, pointing to 56% potential upside. Freeport-McMoRan remains the top base metals pick with about 35% upside, while aluminum forecasts were cut materially, leaving little room for gains.