Can Pan American Silver Sustain Its Solid Silver AISC in H2?

Pan American Silver (PAAS) reported first-half 2026 silver all-in sustaining costs of $12.64 per ounce, 24% below the prior-year period and under guidance, powered by the Juanicipio acquisition. The beat sets up a significant margin headwind: PAAS projects full-year 2026 silver AISC will climb 22% year-over-year to a range of $15.75–$18.25 per ounce as higher contractor, labor, and energy expenses hit the La Colorada and Huaron mines in the second half.

The guidance implies H2 AISC will rise substantially above the H1 run rate, compressing operating leverage even as silver prices remain elevated. PAAS trades at 10.46× earnings, a discount to silver-mining peers, and holds a Zacks Rank #3 (Hold). Investors now face a trade-off: a valuation cushion against cost inflation that could erase the H1 outperformance.