Pan American Silver Corp. (NYSE: PAAS) (TSX: PAAS) announced a shareholder return framework targeting the return of 35% to 40% of annual attributable free cash flow to shareholders through dividends and share repurchases. The company anticipates returning up to $1 billion to shareholders in 2026 based on current free cash flow generation levels.

Under the framework, Pan American expects to pay aggregate dividends of $305 million during 2026 in equal quarterly installments of $0.18 per common share. Excess attributable free cash flow will be allocated to common share repurchases through the company's normal course issuer bid that began March 6, 2026.

The mining company reported attributable free cash flow of $488 million in the first quarter of 2026, which includes its 44% share from the Juanicipio joint venture. As of March 31, 2026, Pan American held cash and short-term investments of $1.6 billion, excluding $199 million attributable to its Juanicipio interest, with total available liquidity of $2.4 billion.

"The enhanced Shareholder Return Framework underscores our long-standing commitment to balancing financial strength and investment in growth while providing meaningful shareholder returns," said Michael Steinmann, President and Chief Executive Officer.

The company's capital allocation priorities include sustaining capital and operational excellence, maintaining financial strength, advancing organic growth investments including the La Colorada Skarn Project and Jacobina mine optimization, and implementing the enhanced shareholder return framework.

Pan American operates mines across Canada, Mexico, Peru, Brazil, Bolivia, Chile and Argentina, positioning itself as a leading silver and gold producer in the Americas. The company has raised its dividend three times during 2025, with the most recent quarterly dividend declared May 5, 2026.