Pan American Silver — Finishing the year on a strong note

Pan American Silver (PAAS) reported FY24 revenues and EBITDA of US$2.8bn and US$1.0bn, up 22% and 51% y-o-y, respectively. The company achieved record net operating and free cash flows of US$724m and US$401m and moved to a net cash position of US$84m at end FY24. We have adjusted our estimates to reflect the results, FY25 operating and cost guidance and strong commodity prices, maintaining our discounted cash flow (DCF)-based valuation of PAAS at US$26.0/share. On our estimates, the stock trades at an undemanding FY25e EV/EBITDA of 6.4x and yields 1.8%.