Nouveau Monde Graphite Inc. press release

Pan American Silver Reports Record Fourth Quarter and Full Year 2025 Financial Results; Record Cash Flow From Operations of $554 Million in the Fourth Quarter; Dividend Increased by 29%

2026-02-18

TSXV - TSX Venture Exchange · Graphite · Canada · Corporate Finance

Pan American Silver Reports Record Fourth Quarter and Full Year 2025 Financial Results; Record Cash Flow From Operations of $554 Million in the Fourth Quarter; Dividend Increased by 29%

All amounts expressed in U.S. dollars unless otherwise indicated.

Unaudited tabular amounts are in millions of U.S. dollars and thousands of shares, except per ounce amounts, unless otherwise noted.

Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan American" or the "Company") reports fourth quarter ("Q4 2025") financial results and audited financial results for the year ended December 31, 2025 ("FY 2025"). The Company will host a conference call and webcast on February 19, 2026 to discuss the results; details provided further in this news release.

"Pan American delivered record financial results across the board in 2025, reflecting strong operating margins with production and costs in line or better than guidance and higher realized silver and gold prices," said Michael Steinmann, President and Chief Executive Officer.

"Looking ahead to 2026, we expect another strong year of cash flow generation following the record $554 million of operating cash flow generated in Q4 2025 alone. Attributable silver production is forecast to increase by approximately 14% over 2025, with silver segment all-in sustaining costs of $15.75 to $18.25 per ounce, driven in large part by the contribution from the Juanicipio mine. With $1.3 billion in cash and short-term investments (excluding our $127 million share of cash at Juanicipio), we are well positioned to advance our growth projects - notably the La Colorada Skarn and Jacobina optimization - as well as to enhance shareholder returns. Today, we increased the dividend to $0.18 per common share with respect to Q4 2025 for the third consecutive quarterly increase, allowing shareholders to participate directly in rising net cash levels. In 2025, we returned $221 million to our shareholders in dividends and share buybacks, including $74 million in Q4."

The following highlights for Q4 2025 and FY 2025 include certain measures that are not generally accepted accounting principles ("non-GAAP") financial measures. Please refer to the section titled “Alternative Performance (Non-GAAP) Measures” at the end of this news release for further information on these measures.

Q4 2025 and FY 2025 Results:

Record revenue of $1.2 billion and $3.6 billion in Q4 2025 and FY 2025, respectively. Attributable (1) revenue of $1.3 billion and $3.8 billion in Q4 2025 and FY 2025, respectively.

Record net earnings of $452 million, or $1.07 basic earnings per share in Q4 2025, including $61 million of income from investment in Juanicipio. Record FY 2025 net earnings of $980 million, or $2.56 basic earnings per share.

Record adjusted earnings of $470 million, or $1.11 adjusted earnings per share in Q4 2025. FY 2025 adjusted earnings of $959 million, or $2.54 adjusted earnings per share (2) .

Record cash flow from operations of $554 million and $1,333 million in Q4 2025 and FY 2025, respectively.

Record Attributable (1) free cash flow of $553 million and $1,151 million in Q4 2025 and FY 2025, respectively.

Attributable (1) silver production of 7.3 million ounces and 22.8 million ounces in Q4 2025 and FY 2025, respectively. Annual silver production exceeded the updated guidance range (3) .

Attributable (1) gold production of 197.8 thousand ounces and 742.2 thousand ounces in Q4 2025 and FY 2025, respectively. Annual gold production was within the guidance range (4) .

Silver Segment all-in sustaining costs ("AISC") (2)(5) , excluding net realizable value ("NRV") inventory adjustments, were $9.51 and $13.88 per silver ounce in Q4 2025 and FY 2025, respectively. Annual Silver Segment AISC were below the updated guidance range (3)(5) .

Gold Segment AISC (2) , excluding NRV inventory adjustments, were $1,699 and $1,621 per gold ounce in Q4 2025 and FY 2025, respectively. Annual Gold Segment AISC were within the guidance range (4)(6) .

As at December 31, 2025, the Company had cash and short-term investments of $1,319 million, excluding the Company's 44% interest of cash at Juanicipio of $127 million. The Company had working capital of $1,379 million and $750 million available under its credit facility ("Credit Facility"). Total available liquidity was $2,069 million. Total debt of $852 million is primarily related to two senior notes, as well as certain lease liabilities and construction loans payable.

A cash dividend of $0.18 per common share with respect to Q4 2025 was declared on February 18, 2026, payable on or about March 13, 2026, to holders of record of Pan American’s common shares as of the close of markets on March 2, 2026. The dividends are eligible dividends for Canadian income tax purposes. The declaration, timing, amount and payment of any future dividends remain at the discretion of the Company’s Board of Directors.

In Q4 2025, $15 million was spent on the repurchase and cancellation of the Company's shares under its normal course issuer bid ( the "NCIB") . For FY 2025, 1,650,770 common shares were repurchased for cancellation under the NCIB at an average price of $27.92 per share for a total consideration of $46 million.

Capital returned to shareholders in 2025 totaled $221 million in dividends and share repurchases.

(1)

References to "Attributable" refer to the Company's ownership share of results, which includes results from the operations that the Company has a 100% interest in as well as from the operations, specifically Juanicipio and San Vicente, that the Company does not own a 100% interest in.

(2)

Adjusted earnings, Attributable free cash flow, Cash Costs, AISC, working capital and total debt are non-GAAP measures; Cash Costs and AISC are presented on an Attributable basis; please refer to the “Alternative Performance (Non-GAAP) Measures” section of this news release for a description of the composition and usefulness of these non-GAAP measures; please also refer to the MD&A for the period ended December 31, 2025, and a detailed reconciliation of these measures to the FY 2025 Financial Statements.

(3)

Guidance for annual silver production and AISC was updated on November 12, 2025 to reflect the acquisition of MAG Silver Corp., which was completed on September 4, 2025.

(4)

Guidance for annual gold production and AISC was provided in the Company’s Management's Discussion & Analysis ("MD&A") for the period ended December 31, 2024.

(5)

Silver Segment AISC is calculated net of credits for realized revenues from all metals other than silver and is calculated per ounce of silver sold on an Attributable basis.

(6)

Gold Segment AISC is calculated net of credits for realized revenues from all metals other than gold and is calculated per ounce of gold sold.

PROJECT UPDATES

In 2025, the Company invested $94 million of project capital, in line with the guidance range provided for the year. The majority of the investment was directed to advance projects at the La Colorada mine and Skarn and at Jacobina, with the remainder invested at the Cerro Moro, Huaron and Timmins mines.

La Colorada Mine and Skarn

The Company invested $13 million of project capital at the La Colorada mine, directed largely at exploration and mine equipment leases to access, mine, and expand mineral resource extensions in the eastern and southeastern higher-grade Candelaria zone. At the La Colorada Skarn, $22 million of project capital was largely for exploration and in-fill drilling and to advance engineering work. The discovery of multiple high-grade silver zones and the subsequent mineral resource and mineral reserve expansion (see the news releases dated September 8 and 11, 2025) provide the opportunity to integrate the mine plans and infrastructure of the vein mine and the Skarn project. The Company is now evaluating a potential phased approach to developing the La Colorada mine and Skarn project with the aim of maximizing the overall value of the deposit. A phased approach would allow the Company to focus on a higher grade, lower tonnage and less capital intensive initial stage with the option to be followed by a later expansion to target lower grade material. The advantage of this approach is to provide greater optionality on the development of the substantial mineral resource identified to date on the deposit, while also targeting higher grades first and optimizing vein mining activities in parallel to the development of the Skarn. The Company anticipates that it will release an updated technical report in the second quarter of 2026 to include a preliminary economic assessment of the new development approach for the Skarn project. In parallel, the Company continues to discuss a potential partnership for development of the project, including the proposed change in development plan.

Jacobina Mine

At the Jacobina mine, project capital of $37 million for 2025 was directed toward strengthening operational reliability and advancing long-term growth initiatives. Key investments included: the completion of new screens and metal extractors to enhance plant safety and availability; electromechanical works for advancing installation of two new CIP tanks, which are scheduled for completion by the second quarter of 2026; improvements to the tailings pump system; engineering for the main substation and electrical house with construction planned to commence in 2026; and exploration and in-fill drilling activities directed towards expanding the reserve and resource base. In parallel, significant progress was made on mine and plant optimization studies, including the evaluations of enhanced technologies and development of a filtered tailings plant and stack. The mine is advancing studies on paste backfill to potentially allow for the recovery of future pillars that would otherwise be left in the northern higher-grade sections of the underground mines. Additionally, underground development rates have accelerated to support the mine optimization.

Escobal Mine

Expenditures at Escobal were for care and maintenance activities while the Guatemalan Ministry of Energy and Mines ("MEM") advanced the ILO 169 consultation process. The MEM continued to hold meetings during Q4 2025, and in December 2025 published an update on their website on the progress made over the October 2024 to November 2025 period and reiterated their commitment to completing the consultation process: https://mem.gob.gt/wp-content/uploads/2026/01/OF-VDS-Boletin-Informativo-Avances.pdf . In addition, during Q4 2025, the MEM conducted an inspection of the Escobal mine and confirmed that the activities are in full compliance with the Constitutional Court order and suspension of activities. There is no timeline or date for the conclusion of the ILO 169 consultation process and no date for the restart of the Escobal mine.

CONSOLIDATED RESULTS

December 31,

2025

December 31,

2024

Weighted average shares during period (thousands)

381,479

363,361

Shares outstanding end of period (thousands)

421,847

363,041

Three months ended

December 31,

Year ended

December 31,

2025

2024

2025

2024

FINANCIAL

Revenue

$

1,179

$

815

$

3,619

$

2,819

Net earnings

$

452

$

108

$

980

$

113

Basic earnings per share (1)(2)

$

1.07

$

0.30

$

2.56

$

0.31

Adjusted earnings (2)

$

470

$

128

$

959

$

287

Basic adjusted earnings per share (1)(2)

$

1.11

$

0.35

$

2.54

$

0.79

Cash flow from operations

$

554

$

275

$

1,333

$

724

ATTRIBUTABLE FINANCIAL (3)

Revenue

$

1,309

$

814

$

3,776

$

2,814

Cash flow from operations

$

642

$

274

$

1,435

$

722

Sustaining capital expenditures (4)

$

(89

)

$

(78

)

$

(284

)

$

(279

)

Free cash flow (2)

$

553

$

196

$

1,151

$

443

ATTRIBUTABLE PRODUCTION (3)

Silver (thousand ounces)

7,278

6,018

22,837

21,061

Gold (thousand ounces)

197.8

224.2

742.2

892.5

Zinc (thousand tonnes)

16.8

14.1

55.9

45.1

Lead (thousand tonnes)

8.2

6.1

27.0

20.8

Copper (thousand tonnes)

0.8

1.0

3.0

5.2

AISC ($/ounce) (2)(3)

Silver Segment

9.51

19.88

13.88

18.98

Gold Segment

1,699

1,521

1,621

1,501

AVERAGE REALIZED PRICES (5)

Silver ($/ounce)

58.16

30.87

40.78

28.06

Gold ($/ounce)

4,186

2,666

3,459

2,388

Zinc ($/tonne)

3,198

3,060

2,865

2,828

Lead ($/tonne)

1,976

1,967

1,965

2,058

Copper ($/tonne)

11,342

9,019

10,082

9,260

(1)

Per share amounts are based on basic weighted average common shares.

(2)

Non-GAAP measure; please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.

(3)

Attributable financial, production and AISC figures are inclusive of Pan American's 44.0% interest in the Juanicipio mine less Pan American's non-controlling 5.0% interest in the San Vicente mine. Pan American uses the equity method to account for its interest in Juanicipio, as presented in the Company's Financial Statements for the period ended December 31, 2025 under Note 13 "Investment in Juanicipio". The AISC are excluding NRV inventory adjustments.

(4)

As included in the AISC reconciliation of payments for mineral properties, plant and equipment and sustaining capital, inclusive of Pan American's 44.0% interest in the Juanicipio mine and reduced for Pan American's non-controlling 5.0% interest in the San Vicente mine.

(5)

Metal prices stated are inclusive of final settlement adjustments on concentrate sales.

FOURTH QUARTER CONSOLIDATED INCOME STATEMENTS (unaudited)

Three months ended

December 31,

2025

2024

Revenue

$

1,179

$

815

Cost of sales

Production costs

(432

)

(416

)

Depreciation and amortization

(135

)

(189

)

Royalties

(44

)

(25

)

(611

)

(630

)

Mine operating earnings

568

185

General and administrative

(39

)

(6

)

Income from investment in Juanicipio

61

—

Exploration and project development

(5

)

(1

)

Mine care and maintenance

(7

)

(7

)

Foreign exchange (losses) gains

(3

)

19

Derivative gains (losses)

2

(19

)

(Losses) gains from sale of subsidiaries

(7

)

137

Change in asset retirement obligations

(47

)

(54

)

Other (expense) income

(11

)

1

Earnings from operations

512

255

Investment income (loss)

51

(6

)

Interest and finance expense

(22

)

(23

)

Earnings before income taxes

541

226

Income tax expense

(89

)

(118

)

Net earnings

$

452

$

108

Net earnings attributable to:

Equity holders of the Company

$

452

$

108

Non-controlling interests

—

—

$

452

$

108

Other comprehensive earnings, net of taxes

Items that will not be reclassified to net earnings:

Remeasurement of retirement benefit plan

$

(1

)

$

—

Loss on investments

$

(1

)

$

(1

)

Total other comprehensive loss

$

(2

)

$

(1

)

Total comprehensive earnings

$

450

$

107

Total comprehensive earnings attributable to:

Equity holders of the Company

$

450

$

107

Non-controlling interests

—

—

$

450

$

107

Earnings per share attributable to equity holders

Basic earnings per share

$

1.07

$

0.30

Diluted earnings per share

$

1.07

$

0.30

Weighted average number of common shares outstanding: (in thousands)

Basic

422,048

363,016

Diluted

422,150

363,113

FOURTH QUARTER CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

Three months ended

December 31,

2025

2024

Operating activities

Net earnings

$

452

$

108

Items not affecting cash:

Income tax expense

89

118

Depreciation and amortization

135

188

Income from investment in Juanicipio

(61

)

—

Losses (gains) from sale of subsidiaries

7

(137

)

Net realizable value inventory recovery

(9

)

(12

)

Accretion on reclamation obligations

6

7

Change in mine reclamation obligations

47

54

Investment (income) loss

(74

)

6

Interest expense

17

13

Other operating activities

6

5

Income taxes paid

(90

)

(65

)

Interest received

7

4

Interest paid

(10

)

(9

)

Reclamation paid

(4

)

(6

)

Net change in non-cash working capital items

36

1

Net cash provided by operating activities

$

554

$

275

Investing activities

Payments for mineral properties, plant and equipment

$

(94

)

$

(85

)

Dividends received from Juanicipio

44

—

Cash disposed of in sale of subsidiaries

(31

)

(16

)

Cash proceeds from sale of subsidiaries

1

307

Purchase of investments

(31

)

—

Cash used for investments in and loan to Galleon Gold

(16

)

—

Net proceeds (payments) from derivatives

4

(6

)

Proceeds from dispositions of mineral property, plant and equipment

1

1

Net cash used in investing activities

$

(122

)

$

201

Financing activities

Dividends paid

(59

)

(36

)

Shares repurchased under Normal Course Issuer Bid

(15

)

—

Repayment of debt

(2

)

(2

)

Payment of equipment leases

(14

)

(12

)

Net cash used in financing activities

$

(90

)

$

(50

)

Effects of exchange rate changes on cash and cash equivalents

2

(2

)

Increase in cash and cash equivalents

344

424

Cash and cash equivalents at the beginning of the year

871

439

Cash and cash equivalents at the end of the year

$

1,215

$

863

2026 OPERATING OUTLOOK

Please see Pan American's MD&A dated February 18, 2026, for further detail on the Company's 2026 Operating Outlook, including a breakdown of our 2026 Operating Outlook by quarter. Please also refer to the Cautionary Note Regarding Forward-Looking Statements and Information at the end of this news release.

2026 Annual Guidance

Attributable Silver Production (million ounces)

25 - 27

Attributable Gold Production (thousand ounces)

700 - 750

Silver Segment AISC (1) ($ per ounce)

15.75 - 18.25

Gold Segment AISC (1) ($ per ounce)

1,700 - 1,850

Sustaining Capital Expenditures ($ millions)

320 - 340

Project Capital Expenditures ($ millions)

195 - 210

(1)

AISC is a non-GAAP measure. Please refer to the “Alternative Performance (Non-GAAP) Measures” section of this MD&A for further information on this measure. The AISC forecasts assume average metal prices of $70.00/oz for silver, $4,200/oz for gold, $3,000/tonne ($1.36/lb) for zinc, $2,000/tonne ($0.91/lb) for lead, and $10,000/tonne ($4.54/lb) for copper; and average annual exchange rates relative to 1 USD of $18.50 for the Mexican peso ("MXN"), $3.45 for the Peruvian sol ("PEN"), $1,427 for the Argentine peso ("ARS"), $7.00 for the Bolivian boliviano ("BOB"), $1.39 for the Canadian dollar ("CAD"), $950 for the Chilean peso ("CLP") and $5.50 for the Brazilian real ("BRL").

AISC, Cash Costs, adjusted earnings, basic adjusted earnings per share, sustaining and project capital, Attributable revenue, Attributable cash flow from operations, Attributable free cash flow, working capital, and total debt are non-GAAP financial measures. Please refer to the "Alternative Performance (non-GAAP) Measures" section of this news release for further information on these measures.

This news release should be read in conjunction with Pan American's Audited Consolidated Financial Statements and our MD&A for the year ended December 31, 2025. This material is available on Pan American’s website at https://panamericansilver.com/invest/financial-reports-and-filings/ on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov .

CONFERENCE CALL AND WEBCAST

Date:

February 19, 2026

Time:

11:00 am ET (8:00 am PT)

Webcast:

https://event.choruscall.com/mediaframe/webcast.html?webcastid=fm1Ihz8D

Participants can register for the conference at: https://dpregister.com/DiamondPassRegistration/register?confirmationNumber=10205172&linkSecurityString=10092369264

Upon registration, dial-in details will be displayed on screen and emailed as a calendar booking.

Those unable to register may join the call by dialing:

1-833-752-3507 (toll-free in Canada and the U.S.)

1-647-846-7282 (International Participants)

Web Phone hd.choruscall.com

The live webcast, presentation slides and the report for the Q4 2025 and FY 2025 financial results will be available at https://panamericansilver.com/invest/financial-reports-and-filings/ . An archive of the webcast will also be available for three months.

About Pan American

Pan American is a leading producer of silver and gold in the Americas, operating mines in Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina. We also own a 44% joint venture interest in the Juanicipio mine in Mexico, a 100% interest in the Escobal mine in Guatemala that is currently not operating, and we hold interests in exploration and development projects. We have been operating in the Americas for over three decades, earning an industry-leading reputation for sustainability performance, operational excellence and prudent financial management. We are headquartered in Vancouver, B.C. and our shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the symbol "PAAS".

Learn more at panamericansilver.com

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Alternative Performance (Non-GAAP) Measures

In this news release, we refer to measures that are non-GAAP financial measures. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning as prescribed by IFRS as an indicator of performance, and may differ from methods used by other companies with similar descriptions. These non-GAAP financial measures include: