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Pan American Silver (PAAS) to Sell Two Projects to Unico Silver

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Pan American Silver Corp. (PAAS - Free Report) has signed a binding letter of intent with Unico Silver Limited to divest its Joaquin and Cerro Puntudo projects in Argentina. The move aligns with Pan American Silver’s strategy to focus on core operations and high-growth projects. 

The transaction is expected to be completed by the end of September 2024, pending all necessary approvals. The financial details of this deal are not yet disclosed.

PAAS has been working to optimize its portfolio and allocate resources more efficiently. On May 1, 2024, the company stated that it agreed to sell its whole stake in La Arena S.A. to Jinteng Mining Pte. Ltd., a subsidiary of Zijin Mining Group Co. Ltd.

Proceeds from these transactions will further strengthen Pan American Silver’s financial position. It will aid the company with its capital allocation priorities of investing in high-quality assets, reducing debt and returning capital to shareholders.

At the end of second-quarter 2024, PAAS had a cash and short-term investment balance of $368.6 million. It currently has $750 million available under its revolving credit facility. Total debt amounted to $809.5 million. Net cash generated from operations was $163 million in the second quarter compared with $117 million in the prior-year period.

The company reported adjusted earnings per share of 11 cents for second-quarter 2024, missing the Zacks Consensus Estimate of 15 cents. PAAS posted adjusted earnings per share of 8 cents in the year-ago quarter. PAAS’s revenues improved 7.3% year over year to $686 million in the quarter under review. The top line beat the Zacks Consensus Estimate of $682 million.

Pan American Silver’s Price Performance

PAAS shares have gained 34.9% in the past year compared with the industry’s growth of 53.4%.

 

Zacks Investment Research
Image Source: Zacks Investment Research

 

Zacks Rank & Stocks to Consider

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

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , IAMGOLD Corporation (IAG - Free Report) and Eldorado Gold Corporation (EGO - Free Report) . CRS, IAG  and EGO sport a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s fiscal 2025 earnings is pegged at $6.06 per share. The consensus estimate for 2025 earnings has moved 17% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 15.9%. CRS shares have gained 155.9% in a year.

The Zacks Consensus Estimate for IAMGOLD’s 2024 earnings is pegged at 39 cents per share. The consensus estimate for 2024 earnings has moved 44% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 200%. IAG shares have gained 137% in a year.

The Zacks Consensus Estimate for Eldorado Gold’s 2024 earnings is pegged at $1.32 per share. The consensus estimate for 2024 earnings has moved 22% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 430%. EGO shares have gained 103% in a year.

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