Vancouver-headquartered Pan American Silver operates silver and gold mines in Mexico, Peru, Canada, Chile, and Brazil. Its 2018 acquisition of Tahoe Resources gave it gold production of 500,000 oz. annually. Its takeover of the South American gold mines of Yamana Gold in early 2023 gave it four gold mines in Brazil and Peru and almost doubled gold production to 882,990 oz. in 2023, as well as increasing its silver production by 50% to 20.4 million oz.
In May, Pan American agreed to buy Canadian-based MAG Silver for $2.1 billion. Its sole asset is a 44% stake in the Juanicipio silver mine in Mexico, the other 56% of which is owned by its operator, London listed Fresnillo. Pan American is paying $500 million in cash and issuing approximately 60 million shares to complete the deal. The offer represents a 21% premium to MAG’s pre-bid price and will increase Pan American’s silver output by 35% on an annual basis. It will also meaningfully reduce AISC costs.