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    Do New High‑Grade Drill Results Reshape The Long‑Term Mine Plan For Pan American Silver (TSX:PAAS)?

    Simply Wall St·12/08/2025 11:13:03
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    • In early December 2025, Pan American Silver Corp. reported extensive new drill results across mines including Jacobina, La Colorada, Timmins and several others, highlighting near-mine exploration and resource conversion efforts within a roughly 540,000‑metre 2025 drilling program.
    • The update underscored meaningful resource extensions and new high-grade zones, particularly at Jacobina and La Colorada, which could reshape longer-term mine planning and portfolio optionality.
    • With the shares recently posting a 7-day decline, we’ll examine how these high-grade discoveries influence Pan American Silver’s broader investment narrative.

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    What Is Pan American Silver's Investment Narrative?

    To own Pan American Silver today, you really have to buy into a simple idea: that a diversified precious‑metals producer with improving profitability can keep turning geology into cash flow without losing discipline on costs or capital. Near term, the key swing factors still sit at the asset level, including operational delivery at Huaron, Cerro Moro, El Peñon and Timmins after a mixed Q3, as well as progress at the large La Colorada Skarn project. The December drill update slots into this picture as more of a quality‑of‑asset story than an immediate financial catalyst; the share price’s recent 7‑day pullback, after a very strong year, suggests the market is not treating these results as game changing yet. The bigger risk is that ongoing heavy exploration and growth spending, even when technically successful, may not translate into returns that justify the current premium valuation.

    However, one operational and cost risk in particular is worth investors understanding in more depth. Despite retreating, Pan American Silver's shares might still be trading above their fair value and there could be some more downside. Discover how much.

    Exploring Other Perspectives

    TSX:PAAS Community Fair Values as at Dec 2025
    TSX:PAAS Community Fair Values as at Dec 2025

    Five fair value estimates from the Simply Wall St Community span about US$24 to well above US$140 per share, underlining how differently people view Pan American’s upside. Set that against the current focus on mine‑level execution risks and higher exploration spend, and it is clear why opinions on how much of the recent earnings momentum is sustainable can diverge so sharply.

    Explore 5 other fair value estimates on Pan American Silver - why the stock might be worth over 2x more than the current price!

    Build Your Own Pan American Silver Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.