Precious Metals in Focus: A Look at the Stocks of Aya Gold & Silver, Lahontan Gold and Pan American Silver

Pan American Silver Keeps Shareholders in Focus

Investors who have been active in the commodities sector for some time have often been disappointed by major producers. However, rising gold and silver prices have fundamentally changed this for many companies. In many cases, cash flows are at record levels. A good example of this is Pan American Silver. The Canadian company follows a very disciplined strategy to return profits to shareholders. The official Shareholder Return Framework calls for distributions of up to USD 1 billion this year alone. Excess free cash flow is specifically used for share buybacks. This reduces the number of shares outstanding and increases earnings per share. By mid-August, the company had already repurchased 7.3 million of its own shares. In the second quarter alone, it distributed approximately USD 300 million through dividends and share buybacks.

This figure could rise even further in the second half of the year. While the company did not quite meet its production target in the first six months, it expects a stronger second half. Some production was delayed. In addition, Pan American Silver stands out for its cost discipline, particularly in the silver segment. There, AISC costs in Q2 stood at USD 17.80 per ounce, nearly USD 2 less than in the previous year.

Pan American Silver's stock is currently trading in Toronto at nearly CAD 25 below its all-time high from January. If share buybacks and cost discipline continue, the stock should continue to deliver significant returns to shareholders.

Lahontan Gold: Preparations for the Gold Mine Are in Full Swing

Lahontan Gold plans to begin construction of the Santa Fe gold mine in Nevada as early as 2027. The company is taking decisive action to make this happen. It has now announced the acquisition of Emergent Metals Corp. Upon completion of this relatively small transaction, existing Lahontan shareholders will hold approximately 95.3% of the shares. Importantly, this move allows Lahontan to score strategically. This gives Lahontan a 100% stake in West Santa Fe and, consequently, full control over the gold project. The transaction eliminates future royalties previously held by Emergent Metals. Gold deposits free of royalties are generally valued higher on the markets. As a side effect, the Canadian company is also expanding its project area and securing the directly adjacent New York Canyon project.

As a result, the contiguous land package in Nevada's high-yield Walker Lane trend grows to over 93 km². However, Emergent's shareholders must still approve the deal.

Lahontan Gold plans to recommission the historic Santa Fe gold mine in Nevada next year. In addition to work on the site, management is already moving forward with permitting processes. According to the updated resource estimate published in mid-August, the total resource stands at 2.385 million ounces of gold equivalent (AuEq). The indicated resource totals 1.195 million ounces AuEq, while the inferred resource totals 1.190 million ounces AuEq. The resource estimate covers a total of 136,515 drill meters.

Based on the new resource estimate, Lahontan now plans to present a revised preliminary economic assessment (PEA). A major advantage of the project is its infrastructure. Nevada is the largest gold producer in the US. As a result, workers, water, electricity, and roads are readily available for mining operations. This should lower the mine's investment costs.

Lahontan Gold's stock is currently trading sideways. Its market capitalization stands at approximately CAD 166 million. Investors who believe in stable or rising gold prices can bet on a re-rating of Lahontan's stock. With every step toward production, such gold stocks are typically valued higher.

Aya Gold & Silver: The Main Mine Is Delivering, Too

While many investors at Aya Gold & Silver are primarily focused on the Boumadine mine, which is currently under development, the highly profitable main Zgounder mine is often pushed into the background. Yet there is still significant potential here as well, as the latest drill results show. For example, during drilling at the open-pit mine, Aya intersected 13 m grading 1,783 g/t silver and 11 m grading 1,501 g/t silver. These are top-tier grades for a silver miner.

The results indicate that the Zgounder open-pit mine will likely continue to supply the precious metal for a long time to come. According to the most recently published mine plan, the mine can produce at a steady rate through 2036. Production is expected to reach 6.2 million ounces of silver per year. The mine's life could thus be extended even further if drilling results remain strong. This is necessary given the company's expansion. Boumadine's development is financed by cash flow. In addition, Aya has secured further properties in Morocco.

The quarterly figures also recently demonstrated just how well Zgounder is performing. Aya Gold & Silver reported revenue of USD 96.8 million for Q2. That was 150% more than in the same period of 2025. Profit even tripled to USD 35 million. As of the end of June, Aya had USD 182.8 million in cash, and costs of USD 16.82 per ounce (AISC) were well below the industry average and lower than the previous year's figure. Should the silver price rise again to higher levels in light of strong industrial demand, Aya's profits will grow accordingly.

In addition, the PEA for the Boumadine project was updated in early September. The analysis was based on an impressive 190,000 m of drilling. According to the report, the IRR stands at 93% on invested capital, and the NPV rises to USD 3.53 billion. The analysis used a gold price of USD 3,500 per ounce and a silver price of USD 50.

Aya Gold & Silver's stock recently surpassed the CAD 40 mark again on its home exchange in Toronto. With a bit of tailwind from the market, a breakout to a new all-time high is certainly possible.

With Pan American Silver, investors are betting on an attractive gold and silver miner that has its costs under control. Lahontan Gold is gradually transitioning from a developer to a producer. This should be accompanied by a re-rating of the stock. Aya Gold & Silver is close to its all-time high. A breakout would clear the way from a technical perspective.