During the refining of silver, extremely high temperatures are involved. The melting point of the precious metal is 961.8 degrees Celsius. Silver has also run hot in a figurative sense on the commodity exchanges recently. On December 29, 2025, the price of one troy ounce exceeded USD 80 for the first time. Although silver was unable to hold its all-time high of USD 83.62, it ended trading on New Year's Eve with an annual gain of 147%. Shares of Pan American Silver performed even better. In 2025, the market capitalization of the mining company specializing in the white metal expanded by 151%. As a result, Pan American Silver ranked among the top 50 performers of the more than 1'800 stocks included in the New York Stock Exchange (NYSE) Composite Index last year.
As a leading producer, the Vancouver-based Canadian group benefits directly from the historic silver rally. Pan American Silver operates ten silver and gold mining sites across the Americas. In total, the company holds reserves of 452 million ounces of silver, in addition to 62 million ounces of gold. A key element of its strategy consists of acquisitions and targeted investments in companies within the sector. Most recently, Pan American Silver took a stake in the smaller rival Galleon Gold. Operationally, the company founded in 1994 has succeeded in reducing costs despite an inflationary environment. In the third quarter of 2025, all-in sustaining costs (AISC) for producing one ounce of silver amounted to USD 15.43, compared with an average realized sales price of USD 39.08 per troy ounce (see chart).
Accordingly, profits increased significantly. For the period from July to September 2025, Pan American Silver reported net income of USD 169.2 million, more than tripling year over year. Free cash flow reached a record high of USD 251.7 million. Although the company spent more than USD 400 million in cash on an acquisition, cash and cash equivalents still amounted to a solid USD 911 million at the end of the third quarter. An upward revision to the outlook for silver production as well as AISC in this segment rounded out the strong interim report. On February 18, Pan American Silver will present its results for the fourth quarter and the full 2025 financial year. This will reveal how strongly the year-end rally in precious metals has impacted the Canadian company’s income statement. What is already clear is that the mining stock stands out from the broader market not only in terms of performance but also in the intensity of its price fluctuations. Over a three-month period, Pan American Silver exhibits historical volatility of nearly 50%. By comparison, the same metric for the NYSE Composite Index remains in the single-digit range.
With new softcallable barrier reverse convertibles, investors can take advantage of the high volatility of Pan American Silver. Volatility is one of the key pricing parameters of this structure and results in an attractive coupon of 15.40% per annum in the product currency USD. A CHF-denominated BRC pays out 11.40% per annum on a quarterly basis. The barrier is set at 55% of the initial level. As long as the underlying does not fall to or below this level, Leonteq will repay the full nominal amount at maturity. Naturally, these conditions do not come without risk. The comparatively high volatility also implies a pronounced risk of a barrier breach.
Pan American Silver has recently been added to Leonteq's large pool of underlying assets for leverage products. With Mini-Futures and Warrants with Knock-Out, traders can take a short-term position in the silver share. Both long products or calls and short securities (puts) are available.
For investors seeking direct exposure to the commodity itself, Leonteq launched the ETP+ on the Leonteq Silver CHF Hedged Index earlier this week, trading on the SIX Swiss Exchange and BX Swiss. As the name suggests, the underlying is calculated in Swiss francs. Fluctuations between the domestic currency and the commodity currency, the US dollar, are neutralized through a hedging mechanism.
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