Is PAAS a good stock to buy? We came across a bullish thesis on Pan American Silver Corp. on X.com by @MoneyShow. In this article, we will summarize the bulls’ thesis on PAAS. Pan American Silver Corp.’s share was trading at $46.13 as of June 9th. PAAS’s trailing and forward P/E were 15.01 and 10.72 respectively according to Yahoo Finance.
Photo from Hycroft Mining website
Pan American Silver Corp. engages in the exploration, mine development, extraction, processing, refining, and reclamation of mines in Chile and internationally. PAAS appears to be strengthening its long-term investment case following a revised Preliminary Economic Assessment for the La Colorada Skarn deposit, which meaningfully reshapes the project toward a smaller, lower-risk, and more capital-efficient development while simultaneously increasing leverage to silver prices.
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The updated mine plan reduces upfront complexity by eliminating block caving, a technically demanding mining method used by few operators, while also removing the immediate need for a partner, allowing Pan American Silver Corp. (PAAS) to internally fund the estimated $1.9 billion capex. Management’s decision reflects a deliberate strategy to prioritize control, optionality, and downside risk reduction rather than pursuing maximum scale, while still preserving the ability to expand the project or reintroduce a partner in the future if conditions become favorable.
Importantly, the revised structure enhances economics through byproduct credit accounting, effectively driving negative all-in sustaining costs for silver, which significantly amplifies margin sensitivity to rising silver prices. Production expectations further reinforce the bullish outlook, with Skarn expected to contribute nearly 16 million ounces of silver annually during the first five years, complementing 3.3 million ounces from the existing La Colorada mine and positioning the combined operation as one of the largest and lowest-cost silver assets globally.
Even in later stages, production remains robust at around 11 million ounces annually over the following decade, supported by a long 37-year mine life. With first production likely in or after 2027 and the project representing roughly 5% of NAV, the revised plan enhances visibility, reduces execution risk, and strengthens long-term cash flow potential, reinforcing a compelling upside case for Pan American Silver Corp. (PAAS) as a high-quality leveraged silver producer with improving project economics and optionality.
Previously, we covered a bullish thesis on Harmony Gold Mining Company Limited (HMY) by Intelligent_Okra5374 in April 2025, which highlighted gold price tailwinds, strong free cash flow, and diversification into copper and uranium with improving execution. HMY’s stock price has appreciated by approximately 15.89% since our coverage. @MoneyShow shares a similar view but emphasizes Pan American Silver Corp. (PAAS)’s revised La Colorada Skarn mine plan, reducing risk and capex while increasing silver leverage through improved project economics and long-term production visibility.
Pan American Silver Corp. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 50 hedge fund portfolios held PAAS at the end of the first quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of PAAS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PAAS and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
