Pan American Silver — Skarn PEA: Top-tier production at lower capex

The revised 2026 preliminary economic assessment (PEA) for La Colorada redefines the project as an integrated 15,000tpd operation, significantly lowering the initial capital spend and execution risk compared to the 2023 standalone study. By transitioning to a selective sub-level open stoping mining method, Pan American Silver (PAAS) has reduced pre-production capital to US$1.9bn while extending the mine life to 37 years. During the peak five-year production period (2034–38), the combined annual output is projected to average 19.1Moz of silver at a negative all-in sustaining cost (AISC) of US$22.7/oz, positioning La Colorada as one of the largest and lowest-cost silver mines globally. Additional upside is supported by recent drilling that is currently excluded from the PEA resource model. We have updated our model to incorporate the incremental value of the Skarn project, raising our valuation of PAAS from US$57/share to US$63/share.