Value Investors: 1 Sustainable Gold Stock to Own

Pan American Silver Corp. (TSX:PAAS)(NASDAQ:PAAS) has achieved annual increases in mineral reserves and mineral resources through exploration and acquisitions.

| More on:
gold stocks gold mining

Image source: Getty Images

Pan American Silver (TSX:PAAS)(NASDAQ:PAAS) is principally engaged in the operation, development, and exploration of silver- and gold-producing properties. The company’s principal products are silver and gold, although the company also produces and sells zinc, lead, and copper. The company operates mines and develops mining projects in Mexico, Peru, Canada, Argentina, Bolivia, Guatemala, and the United States.

Strong production track record

Prior to 2020, the company’s production has increased almost every year since 1995. The company’s long-term growth has been accomplished through a combination of acquisition, exploration, development, and expansion efforts. In 2021, Pan American expects to produce between 22.5 and 24.0 million ounces of silver and between 605,000 and 655,100 ounces of gold from the company’s portfolio of assets.

Intelligent capital allocation

Historically, the company has achieved annual increases in mineral reserves and mineral resources through exploration and acquisitions. In addition to mineral reserves and resources added through acquisitions, Pan American has demonstrated a significant ability to invest in mine and near-mine exploration programs throughout the silver price cycle and to optimize the exploration potential of the company’s asset portfolio.

Hidden asset reserves

The company’s proven and probable silver and gold mineral reserves are approximately 550 million and 5.2 million ounces, respectively. The company’s measured and indicated mineral resources are approximately 800 million ounces of silver and 10 million ounces of gold.

Strategic acquisitions

The company actively investigates and evaluates strategic opportunities to acquire promising silver production, development, and exploration properties in those jurisdictions where the company is presently active as well as elsewhere throughout the world.

In February 2019, Pan American acquired all of the issued and outstanding shares of Tahoe. Among other assets, Tahoe owned two mines in each of Peru and Canada as well as the Escobal mine in Guatemala.

The company maintain a strong financial performance from mining operations. In an effort to ensure it continues to have a strong and prosperous business, the company monitors financial performance against targets for operating earnings and cash flow from operations, as well as against operating measures such as production and cash costs.

Pan American operates the business in accordance with the highest principles of sustainable development. It also places a high priority and particular emphasis on the health and safety of the company’s personnel. The company has operations in a number of countries and across diverse cultures that have the potential to impact nearby populations. Pan American minimizes the negative impacts and maximize the benefits garnered to local populations, while at the same time achieving success from a business perspective.

Focus on sustainability

Pan American has also adopted board-level corporate policies that formalize how it must conduct business and interact with stakeholders and others. The company has implemented Towards Sustainable Mining (TSM) protocols to enhance community engagement, drive industry-leading environmental practices, and reinforce the company’s commitment to surrounding communities.

By implementing TSM at the company’s operations within and outside Canada, Pan American has set out a consistently high performance standard across all operating jurisdictions. This focus on sustainability should drive higher shareholder returns and serve the company well.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Nikhil Kumar has no position in any of the stocks mentioned.

More on Metals and Mining Stocks

Electric car being charged
Tech Stocks

Is Now The Time to Buy EV Stocks?

EV stocks may be down now, but don't count them out. They'll soon be back up again, so now may…

Read more »

Hands protect a sprout in fertile soil.
Metals and Mining Stocks

Nutrien Stock: How High Could it Go in 2023?

After Nutrien's record 2022 driven by strong pricing power, 2023 should see more of the same, driving the stock much…

Read more »

Gold bullion on a chart
Metals and Mining Stocks

Silver and Gold Stocks: Worth Owning in 2023?

The stock market took a breather from bears as inflation slowed. But recession fears still loom. Should you buy gold…

Read more »

Metals
Metals and Mining Stocks

BUY ALERT: Why I’m Snagging Russel Metals (TSX:RUS) Stock Today

Russel Metals Inc. (TSX:RUS) has started hot in 2023 and boasts nice value and a strong dividend in late January.

Read more »

tsx today
Metals and Mining Stocks

TSX Today: What to Watch for in Stocks on Wednesday, January 25

TSX investors may want to keep a close eye on the Bank of Canada’s monetary policy event today.

Read more »

silver metal
Metals and Mining Stocks

How to Invest in Precious Metals Without Buying a Mining Stock

Do you want to invest in precious metals without buying a mining stock? This unique business can offers a lower-risk,…

Read more »

A tractor harvests lentils.
Metals and Mining Stocks

5 Things to Know About Nutrien Stock in January 2023

Nutrien Ltd. (TSX:NTR) stock has put together a nice run on the back of strong fundamentals and geopolitical tensions.

Read more »

gold stocks gold mining
Metals and Mining Stocks

Why Is Everyone Talking About Barrick Gold Stock?

Barrick Gold stock has soared 32%, while gold has surged around 17% since November 2022.

Read more »