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    Pan American Silver (TSX:PAAS) Could Be 26% Undervalued As Reserves And Resources Expand

    Simply Wall St·09/26/2026 02:24:34
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    Pan American Silver’s new reserve snapshot

    Pan American Silver (TSX:PAAS) has laid out a fresh reserve and resource snapshot as of June 30, 2026, after a busy stretch of drilling, acquisitions, and project sales.

    The miner now reports 511.1 million ounces of silver and 6.3 million ounces of gold in proven and probable reserves, alongside sizable measured, indicated, and inferred resource inventories across its portfolio.

    In the short term, Pan American Silver’s share price has been under pressure, with a 30 day share price return of -6.95% and a year to date share price return of -2.94%. However, a 1 year total shareholder return of 28.91% and a very large 3 year total shareholder return suggest that longer term momentum has been strong as investors react to the expanding reserve base and portfolio reshaping.

    Spot emerging reserve growth stories alongside Pan American Silver by scanning our hand picked 10 top silver producer stocks across the global precious metals space.

    Pan American Silver now appears to be a larger and more focused miner after its reserve update and portfolio reshuffle. The more difficult question is whether CA$67.99 already reflects that progress or still leaves room on the table.

    Most Popular Narrative: 26% Undervalued

    Pan American Silver’s most followed valuation storyline pegs fair value at about CA$92.50, which sits well above the recent CA$67.99 close. This frames the current price as a discount that depends on execution at key projects.

    The phased development approach at La Colorada Skarn, which combines high grade Skarn zones with the vein mine and shared infrastructure, is designed to moderate upfront capital intensity while seeking to support silver output and project level returns. This in turn can feed into future revenue and cash flow.

    See why 25 investors see Pan American Silver as 26% undervalued.

    The narrative uses a 7.95% discount rate to bring those future cash flows back to present value, which is how it arrives at a fair value near CA$92.50. That required return sits alongside assumptions for revenue growth, profit margins and future earnings multiples, so any change in those building blocks would ripple through the valuation.

    Analysts contributing to this storyline also tie their view to how Pan American Silver is reshaping its portfolio, from La Colorada Skarn through to optimization work at Jacobina and the Timmins Camp Project. Execution on those assets, and how they affect cash generation and balance sheet strength, is central to why the narrative points to a roughly 26% undervaluation.

    Result: Fair Value of CA$92.50 (UNDERVALUED)

    Still, the Pan American Silver narrative leans heavily on smooth execution at La Colorada Skarn and on resolving technical issues at operations like Cerro Moro and Minera Florida, where setbacks could quickly challenge those valuation assumptions.

    Find out about the key risks to this Pan American Silver narrative.

    Next Steps

    If this seems optimistic on Pan American Silver, you may wish to test the idea yourself while sentiment is still supportive and form your own view by checking the 4 key rewards.

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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.