Kitco MINING · Oct 24, 2026 · 21m · 14m saved
With Michael Steinmann, President and CEO, Pan American Silver
Photo via panamericansilver.com
Michael Steinmann, president and CEO of Pan American Silver, says Pan American will return about $1 billion to shareholders this year. The same year, it is spending roughly $2 billion to build what he calls the biggest silver mine in the world. A forecast of $250 to $500 silver within three to five years was circulating at the Precious Metals Summit. Michael told Kitco Mining anchor Paul Harris he expects either a near-term move to $150-$200, or a retracement to a new floor near $80-$100 first.
"We built the biggest project ever, like La Colorada Skarn, that requires about $2 billion to build. At the same time, we actually decided to return a billion dollars this year to shareholders between dividend and share buyback."
Michael's company timed its major transactions before the silver rally took off. That left Pan American sitting on close to $2 billion in cash and more than $3 billion in total liquidity today, against roughly $800 million of debt.
The full segment is covered here so you can skip it. 21 minutes of audio, 7 minutes of reading.
Here are the 6 takeaways that matter.
Key Takeaways
Michael expects $150 to $200 silver is possible in the next few years, but also a retracement to a new floor around $80 to $100 first
Industrial demand already makes up 60 to 65% of silver use, and most silver is a byproduct of copper and gold mining, so supply can't respond quickly to it
Pan American is returning about $1 billion to shareholders this year while funding the $2 billion La Colorada Skarn expansion at the same time
The company holds over $3 billion in total liquidity against roughly $800 million of debt
Gold and base-metal byproduct credits pushed Pan American's all-in sustaining cost below $7/oz in Q1, though full-year guidance is $16 to $17/oz
Michael called people, not capital, the real limiting factor on mining growth, which he expects to drive further industry consolidation
La Colorada Skarn will turn La Colorada into a 19 to 20 million ounce silver producer with a 37-year mine life
1. Cautious above $150 silver
Michael called 2026 an amazing year for silver, which spiked above $120 before pulling back. Pan American is still averaging close to $75 an ounce for the year, against a prior-cycle high of about $49 in his career, and that run has fed forecasts calling for silver far above where it trades now.
Michael is open to $150-$200, not the $500 call making the rounds
"I wouldn't be surprised if we see a jump like that to $150 or $200 over the next few years. But I will also not be surprised that it retracts and establishes a new floor." — Michael Steinmann
That $250-$500 forecast was circulating at the Precious Metals Summit, Michael said, and he treated it as a longer-run possibility rather than a near-term target. He would not rule out a near-term move toward $150-$200, but just as easily a pullback to a new floor near $80-$100 first.
