Pan American Silver Corp. (USA) (PAAS): What You Should Know

One key sign of the impact of the recent plunge in silver could make itself felt in Pan American’s dividend. Just in February, the company raised its payout by a whopping 150%, citing expectations to generate solid net cash flow. Yet CEO Geoff Burns referred specifically to the health of its cash-flow projections “at the current silver price,” raising the question of whether lower prices could force it to do a quick about-face on its payout.

In Pan American’s quarterly report, watch closely for news of the Navidad mine, which has suffered from adverse business and political conditions in Argentina. Moreover, until prospects for silver prices rebound, you’ll need to keep a close eye on the impact the price plunge has on earnings and cash flow going forward.

The article Pan American Silver Faces the Crash in Metals originally appeared on Fool.com is written by Dan Caplinger.

Motley Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool has no position in any of the stocks mentioned.

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