Skarn Adds Scale, Duration, and Value

Research evidence excerpt

Skarn Adds Scale, Duration, and Value

June 5, 2026 | 14:18 ET~

Pan American Silver

PAAS-TSX Rating Price: Jun-4 Target Total Rtn Silver

PAAS-NYSE Market Perform $73.77 $85.00 16%

Matthew Murphy, CFA Analyst

matthews.murphy@bmo.com (416) 843-3198

Mert Karanfil Associate

Skarn Adds Scale, Duration, and Value mert.karanfil@bmo.com (416) 568-4832

David Hove, CFA VP Associate

david.hove@bmo.com (416) 355-8767

Bottom Line: Legal Entity: BMO Nesbitt Burns Inc.

Our visit to La Colorada and Juanicipio revealed quality operations and a promising

2YR Price Volume Chart

Skarn project, underpinned by the deposit’s scale and its potential to add high-margin 100

silver ounces and extend mine life. Key upcoming catalysts include the start of decline 9080

development (Aug 2026), and mineral resource updates for the veins (mid-2026) and 70

the Skarn (end-2026), representing upside vs. the PEA mine plan. Juanicipio is a well- 60 76

50 5

run operation that continues to experience significantly positive grade reconciliation 40 43

and cost reduction potential through conveyor hauling starting in late 2026. 30 21

20 0

Dec Jun Dec Jun

Key Points LHS: Price (C$) / RHS: Volume (mm) Source: FactSet

Company Data in C$

La Colorada Skarn Project driving excitement at site as decline gets underway.

Dividend $0.58 Shares O/S (mm) 421.4Early preparatory works on the 588 decline are underway with the full driving of the

decline on schedule to commence later this year. Decline development is on the critical Yield 0.8% Market Cap (mm) $31,083

path to 2032 production and can occur without disrupting ore movement from the NAV US$41.53 P/NAV 1.3x

existing Vein Mine. BMO Estimates in $

Preparations being made for the project. The current workforce at the mine is (FY-Dec.) 2024A 2025E 2026E 2027E