06. Pan American Silver Corp. (NYSE:PAAS)
Upside Potential: 46%
Forward P/E Ratio: 11.82
Year To Date Share Price Gain: 25%
Pan American Silver Corp. (NASDAQ:PAAS) deserves a spot among the best gold stocks to invest in, boasting a forward P/E ratio of 11.82 as of December 20. With a current share price of $20.47 and an analyst target price of $29.92, the stock presents a compelling upside potential of 46%. Year to date, it has already gained an impressive 25% in value, reflecting strong investor confidence.
Headquartered in Vancouver, Canada, Pan American Silver has been a prominent player in the mining industry since its incorporation in 1979. The company explores, develops, and operates mines across North and South America, extracting silver, gold, zinc, lead, and copper. Its diverse portfolio and geographic spread position it well to capitalize on the demand for precious metals.
In Q3 2024, Pan American Silver reported stellar financial results, underscoring its operational strength. Revenue hit a record $716.1 million, while cash flow from operations before working capital changes soared to $235.8 million. Free cash flow also reached a record $151.5 million, bolstering the company's balance sheet. With $469.9 million in cash and short-term investments and $1.2 billion in available liquidity, the company is well-equipped to invest in growth and reward shareholders.
Operationally, the company produced 225,000 ounces of gold in Q3, led by robust performance at its Jacobina mine. This asset delivered 50,400 ounces of gold at an all-in sustaining cost (AISC) of $1,195 per ounce, showcasing solid margins. On the silver front, the La Colorada mine was a standout, with a 59% increase in production and a 26% reduction in cash costs quarter-over-quarter.
Pan American is also making strides in its growth projects, such as the La Colorada Skarn and Jacobina mine optimizations. These initiatives promise to enhance long-term production and profitability. Additionally, the company has been proactive in strengthening shareholder value, distributing $109.1 million in dividends year-to-date and repurchasing shares worth $24.3 million.
With its solid fundamentals, operational excellence, and significant upside potential, Pan American Silver stands out as a top pick for investors seeking exposure to gold stocks.