Pan American Silver (NYSE: PAAS) plans up to $1B shareholder returns in 2026
Filing Impact
Filing Sentiment
Form Type
6-K
Rhea-AI Filing Summary
Pan American Silver Corp. introduced an enhanced shareholder return framework targeting the return of 35%–40% of annual Attributable Free Cash Flow to shareholders via dividends and share repurchases under its normal course issuer bid. Assuming strong free cash flow continues, the Company anticipates returning up to $1 billion in 2026.
For 2026, Pan American expects aggregate dividends of $305 million, paid in equal quarterly installments currently equivalent to $0.18 per common share per quarter, with excess Attributable Free Cash Flow allocated to share buybacks. Repurchased shares will be cancelled, which is expected to enhance per‑share value and support future dividend per share growth.
The framework is built on strong liquidity and cash generation. In the first quarter of 2026, Attributable Free Cash Flow was $488 million. As of March 31, 2026, Pan American reported record cash and short‑term investments of $1.6 billion and total available liquidity of $2.4 billion, supporting its capital allocation priorities of sustaining operations, maintaining financial strength, funding organic growth projects, and returning capital to shareholders.
Positive
- Targets up to $1 billion in 2026 shareholder returns, based on returning 35%–40% of annual Attributable Free Cash Flow through dividends and share repurchases.
- Commits to approximately $305 million in 2026 dividends, paid in equal quarterly installments currently equivalent to $0.18 per common share per quarter.
- Strong cash generation and liquidity underpin the plan, with Q1 2026 Attributable Free Cash Flow of $488 million and total available liquidity of $2.4 billion as of March 31, 2026.
Negative
- None.
Insights
Pan American pairs a larger capital return plan with strong liquidity and cash flow.
Pan American Silver is formalizing a capital return policy that targets returning 35%–40% of annual Attributable Free Cash Flow through dividends and share repurchases. Management indicates this could total up to $1 billion in 2026 if strong cash generation continues.
The Company expects aggregate dividends of $305 million for 2026, with quarterly payments currently at $0.18 per share, and will direct excess Attributable Free Cash Flow to repurchases under its NCIB. Cancelled shares should lift per‑share metrics if free cash flow is sustained.
The framework is underpinned by Attributable Free Cash Flow of $488 million in Q1 2026 and total available liquidity of $2.4 billion as of March 31 2026. These figures support parallel goals of funding projects like La Colorada Skarn and Jacobina optimization while committing to sizable shareholder distributions.
Key Figures
Target shareholder returns 2026: Up to $1 billion
Dividend commitment 2026: $305 million
Quarterly dividend per share: $0.18 per share
+4 more
7 metrics
Target shareholder returns 2026
Up to $1 billion
Based on 35%–40% of annual Attributable Free Cash Flow
Dividend commitment 2026
$305 million
Expected aggregate dividends for 2026
Quarterly dividend per share
$0.18 per share
Current quarterly dividend per common share
Attributable Free Cash Flow
$488 million
Q1 2026, including 44% share of Juanicipio
Cash and short-term investments
$1.6 billion
As of March 31, 2026, excluding Juanicipio cash
Total available liquidity
$2.4 billion
As of March 31, 2026
Attributable interest in Juanicipio
44%
Company’s joint venture share used in Attributable metrics
Key Terms
Attributable Free Cash Flow, normal course issuer bid, total available liquidity, non-GAAP financial measures, +2 more
6 terms
Attributable Free Cash Flow financial
"targeting the return of 35% to 40% of annual Attributable Free Cash Flow(1)(2) to shareholders"
Free cash flow attributable is the amount of cash a company generates from its operations after paying for necessary capital expenses, measured only for the portion that belongs to the company’s owners (excluding minority partners or outside investors). Investors care because it shows the real, reusable cash the owners can use to pay dividends, buy back shares, pay down debt, or reinvest — like the money left in your personal bank account after bills and shared household expenses are paid.
normal course issuer bid financial
"common share repurchases under Pan American’s normal course issuer bid that began on March 6, 2026 (the "NCIB")"
A Normal Course Issuer Bid is when a company buys back its own shares from the stock market over time. This usually shows that the company believes its stock is undervalued and wants to support its price, which can be important for investors to watch.
total available liquidity financial
"total available liquidity(1) of $2.4 billion"
The total amount of cash, short-term investments and other funding a company can access quickly — including unused credit lines and committed financing — that can be used to meet obligations or seize opportunities on short notice. Investors watch this like a household’s combined bank balance and available credit: it shows how easily the company can pay bills, ride out revenue drops or fund short-term growth, so low liquidity raises the risk of financial stress.
non-GAAP financial measures financial
"we refer to measures that are non-GAAP financial measures"
Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.
Alternative Performance (Non-GAAP) Measures financial
"refer to the “Alternative Performance (Non-GAAP) Measures” section of this news release"
forward-looking statements regulatory
"Certain of the statements and information in this news release constitute "forward-looking statements""
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________
FORM 6-K
_____________________
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT of 1934
May 5, 2026
_____________________
Pan American Silver Corp.
(Exact name of registrant as specified in its charter)
(Exact name of registrant as specified in its charter)
2100-733 Seymour Street
VANCOUVER BC CANADA V6B 0S6
(Address of principal executive offices)
VANCOUVER BC CANADA V6B 0S6
(Address of principal executive offices)
001-41683
(Commission File Number)
_____________________
_____________________
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
| Form 20-F | Form 40-F | X | |||||||||||||||
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). _____ Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____
EXHIBIT LIST
| Exhibit | Description | |||||||
| 99.1 | News Release - Pan American Silver Targets Up to $1 Billion in Shareholder Returns in 2026 Through Enhanced Shareholder Return Framework | |||||||
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Pan American Silver Corp. | ||||||||
| (Registrant) | ||||||||
| Date: May 5, 2026 | By: | /s/ Delaney Fisher | ||||||
| Delaney Fisher | ||||||||
| SVP, Associate General Counsel and Corporate Secretary | ||||||||
 | NEWS RELEASE | ||||
Pan American Silver Targets Up to $1 Billion in Shareholder Returns in 2026 Through Enhanced Shareholder Return Framework
Vancouver, B.C. - May 5, 2026 - Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) ("Pan American" or the "Company") today announced an enhanced shareholder return framework (the "Shareholder Return Framework") targeting the return of 35% to 40% of annual Attributable Free Cash Flow(1)(2) to shareholders through a combination of dividends and common share repurchases under Pan American’s normal course issuer bid that began on March 6, 2026 (the "NCIB"). Based on the Shareholder Return Framework target and assuming that the current strong free cash flow generation continues, Pan American anticipates being able to return up to $1 billion to shareholders in 2026.
“The enhanced Shareholder Return Framework underscores our long-standing commitment to balancing financial strength and investment in growth while providing meaningful shareholder returns,” said Michael Steinmann, President and Chief Executive Officer. “With a record liquidity position at the end of March 2026 and strong free cash flow generation, we are well positioned to support our organic growth pipeline while increasing shareholder returns. By accelerating share repurchases, we aim to drive long-term per-share value, increase each shareholder’s exposure to our high-quality portfolio, and grow the dividend per common share over time.”
Under the Shareholder Return Framework for 2026, Pan American expects to pay aggregate dividends of $305 million during the year, paid in equal quarterly installments (currently equivalent to $0.18 per common share per quarter). Excess Attributable Free Cash Flow(1) that is not distributed through dividends will be allocated to common share repurchases, at the Company's discretion, through the NCIB. Repurchased common shares will be cancelled, thereby reducing the number of outstanding common shares of Pan American and enhancing the per-share value. As shares are repurchased and cancelled, the dividend per common share is expected to increase over time to achieve the expected aggregate dividend amount during the year. The declaration of future dividends, including the amount and timing of any such dividends, remain at the discretion of Pan American’s board of directors. The targeted returns under the Shareholder Return Framework will be assessed on an ongoing basis.
A Disciplined Approach to Capital Allocation
The Company’s capital allocation priorities are:
1. Sustaining Capital and Operational Excellence
•Continued investment in Pan American’s long-life assets across the Americas to ensure safe, reliable, and efficient operations. Ongoing brownfield exploration supports reserve replacement and mine life extension.
2. Financial Strength and Balance Sheet Flexibility
•Maintaining a strong balance sheet and ample liquidity to support resilience through market cycles and preserve strategic flexibility.
3. High-Return Organic Growth Investments
Advancing a pipeline of high-quality projects, including:
•The La Colorada Skarn Project, expected to enhance long-term silver production, margins, and free cash flow.
•The optimization and potential expansion of the long-life Jacobina mine, which hosts our largest gold mineral reserves and resources.
• The extension of the shaft at Bell Creek as well as advancing exploration opportunities to extend and expand production at Timmins.
4. Shareholder Returns
An enhanced Shareholder Return Framework that:
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•Provides a base annualized dividend of approximately $305 million for 2026, delivering consistent returns. Pan American has raised the dividend three times over the course of 2025, with the last quarterly dividend declared on May 5, 2026 of $0.18 per common share, representing one of the most attractive dividend payouts amongst primary silver producers.
•Allocates excess free cash flow to share repurchases, thereby reducing the number of Pan American’s outstanding common shares and driving long-term value per common share by increasing each shareholder’s ownership in the Company’s world-class asset base and improving per-share metrics.
•Grows the dividend per share by reducing the number of Pan American common shares outstanding through ongoing share repurchases under the NCIB program.
Built on a Strong and Distinctive Foundation
Pan American’s approach to capital allocation is supported by:
•Leading silver exposure with the largest silver mineral reserves amongst primary silver producers, offering direct leverage to prices.
•Strong free cash flow generation, driven by disciplined cost management and operational performance.
Attributable Free Cash Flow(1)(2) was $488 million in the first quarter of 2026, inclusive of our expected 44% share from Juanicipio’s free cash flow.
Attributable Free Cash Flow(1)(2) was $488 million in the first quarter of 2026, inclusive of our expected 44% share from Juanicipio’s free cash flow.
•A robust balance sheet and liquidity position, providing flexibility across commodity cycles. As at March 31, 2026, Pan American reported record cash and short-term investments of $1.6 billion, excluding $199 million of cash attributable to the Company's 44% interest in Juanicipio, and total available liquidity(1) of $2.4 billion.
•A high-quality organic growth pipeline, supporting long-term value creation.
With Pan American's unique leverage to silver, strong financial position, and world-class, high-quality organic growth pipeline, the Company is well positioned to continue generating attractive returns for shareholders.
Notes:
(1) Attributable Free Cash Flow and total available liquidity are non-GAAP measures; 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 Company's Management Discussion & Analysis for the period ended March 31, 2026, for a detailed reconciliation of these measures to the Q1 2026 Financial Statements.
(2) References to "Attributable" refer to the Company's 44% ownership in the Juanicipio joint venture.
About Pan American Silver
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 producing 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
Follow us on LinkedIn
For more information contact:
Siren Fisekci
VP, Investor Relations & Corporate Communications
Ph: 604-806-3191
Email: ir@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:
•Attributable Free Cash Flow is calculated as net cash generated from operating activities less sustaining capital expenditures. Free cash flow for the purposes of the Shareholder Return Framework refers to the free cash flow generated in the current year. Free cash flow does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate the profitability of Pan American and identify capital that may be available for investment or return to shareholders.
•Total available liquidity is calculated as cash and cash equivalents plus short-term investments, plus undrawn amounts under the Credit Facility. Total available liquidity does not have any standardized meaning prescribed by GAAP and is therefore unlikely to be comparable to similar measures presented by other companies. Pan American and certain investors use this information to evaluate the liquid financial resources available to the Company.
Readers should refer to the "Alternative Performance (non-GAAP) Measures" section of Pan American’s MD&A for the period ended March 31, 2026 for a more detailed discussion of these and other non-GAAP measures and a detailed reconciliation of these measures to the 2026 Annual Financial Statement.
Cautionary Note Regarding Forward-Looking Statements and Information
Certain of the statements and information in this news release constitute "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian provincial securities laws. All statements, other than statements of historical fact, are forward-looking statements or information. Forward-looking statements or information in this news release relate to, among other things: the aggregate value available and expected to be returned to shareholders pursuant to the Shareholder Return Framework, including the aggregate amount of dividends that may be paid to shareholders and the per share amount of such dividends, as well as the number and aggregate value of Pan American’s common shares that may be purchased under the NCIB program; the ability of the Company to continue to achieve anticipated free cash flow and Attributable Free Cash Flow generation and that any such cash flow generation will be sufficient to achieve any particular level of returns to shareholders pursuant to the Shareholder Return Framework; any anticipated benefits from or results of the Shareholder Return Framework; whether future organic growth will be realized and any expected benefits therefrom.
These forward-looking statements and information reflect Pan American’s current views with respect to future events and are necessarily based upon a number of assumptions that, while considered reasonable by Pan American, are inherently subject to significant operational, business, economic and regulatory uncertainties and contingencies. These assumptions include: the impact of inflation and disruptions to the global, regional and local supply chains; tonnage of ore to be mined and processed; future anticipated prices for gold, silver and other metals and assumed foreign exchange rates; the timing and impact of planned capital expenditure projects, including anticipated sustaining, project, and exploration expenditures; the ongoing impact and timing of the court-mandated ILO 169 consultation process in Guatemala; ore grades and recoveries; capital, reclamation estimates; our mineral reserve and mineral resource estimates and the assumptions upon which they are based; prices for energy inputs, labour, materials, supplies and services (including transportation); no labour-related disruptions at any of our operations; no unplanned delays or interruptions in scheduled production; all necessary permits, licenses and regulatory approvals for our operations are received in a timely manner; our ability to secure and maintain title and ownership to mineral properties and the surface rights necessary for our operations; whether Pan American is able to maintain a strong financial condition and have sufficient capital, or have access to capital through our corporate Credit Facility or otherwise, to sustain our business and operations; and our ability to comply with environmental, health and safety laws. The foregoing list of assumptions is not exhaustive.
Pan American cautions the reader that forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements or information contained in this news release and Pan American has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the duration and effect of local and world-wide inflationary pressures and the potential for economic recessions; fluctuations in silver, gold and base metal prices; fluctuations in prices for energy inputs, labour, materials, supplies and services (including transportation); fluctuations in currency markets, such as the Mexican peso ("MXN"), Peruvian sol ("PEN"), Argentine peso
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("ARS"), Bolivian boliviano ("BOB"), Canadian dollar ("CAD"), Chilean peso ("CLP") and Brazilian real ("BRL") versus the United States dollar ("USD"); operational risks and hazards inherent with the business of mining (including environmental accidents and hazards, industrial accidents, equipment breakdown, unusual or unexpected geological or structural formations, cave-ins, flooding and severe weather); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom Pan American does business; inadequate insurance, or inability to obtain insurance, to cover these risks and hazards; employee relations; relationships with, and claims by, local communities and indigenous populations; our ability to obtain all necessary permits, licenses and regulatory approvals in a timely manner; changes in laws, regulations and government practices in the jurisdictions where we operate, including environmental, export and import laws and regulations; changes in national and local government, legislation, taxation, controls or regulations and political, legal or economic developments in Canada, the United States, Mexico, Peru, Argentina, Bolivia, Guatemala, Chile, Brazil or other countries where Pan American may carry on business, including legal restrictions relating to mining, risks relating to expropriation and risks relating to the constitutional court-mandated ILO 169 consultation process in Guatemala; unanticipated or excessive tax assessments or reassessments in our operating jurisdictions; diminishing quantities or grades of mineral reserves as properties are mined; increased competition in the mining industry for equipment and qualified personnel; and those factors identified under the caption "Risks Related to Pan American's Business" in Pan American's most recent form 40-F and Annual Information Form filed with the United States Securities and Exchange Commission and Canadian provincial securities regulatory authorities, respectively.
Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be as anticipated, estimated, described or intended. Investors are cautioned against attributing undue certainty or reliance on forward-looking statements or information. Forward-looking statements and information are designed to help readers understand management's current views of our near- and longer-term prospects and may not be appropriate for other purposes. The Company does not intend, nor does it assume any obligation, to update or revise forward-looking statements or information to reflect changes in assumptions or in circumstances or any other events affecting such statements or information, other than as required by applicable law.
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FAQ
How much in dividends does Pan American Silver (PAAS) expect to pay in 2026?
Pan American Silver expects to pay aggregate dividends of about $305 million in 2026. These will be paid in equal quarterly installments, currently equivalent to $0.18 per common share per quarter, as part of its enhanced shareholder return framework.
How does Pan American Silver (PAAS) define Attributable Free Cash Flow and liquidity?
Attributable Free Cash Flow is defined as net cash from operating activities minus sustaining capital expenditures, including the Company’s 44% share of Juanicipio. Total available liquidity equals cash and cash equivalents, short-term investments, and undrawn amounts under the Credit Facility, both described as non-GAAP measures.
What are Pan American Silver’s (PAAS) main capital allocation priorities?
Pan American’s capital allocation priorities are sustaining capital and operational excellence, maintaining financial strength and balance sheet flexibility, funding high-return organic growth projects, and delivering shareholder returns through its enhanced framework of dividends and share repurchases.