Pan American Silver Corp. (PAAS) reported record financial results for the third quarter of 2024, but the company's stock plunged in pre-market trading, reflecting investor concerns over higher costs and weaker production at some of its key operations.

The silver mining giant posted revenue of $716.1 million, beating analysts' expectations and marking a new record for the company. Cash flow from operations and free cash flow also reached record highs of $235.8 million and $151.5 million, respectively.

However, Pan American Silver's costs for both its silver and gold segments came in higher than expected, excluding inventory adjustments. The company attributed the higher costs to lower gold by-product credits from Cerro Moro, catch-up of sustaining capital spending at La Colorada and Huaron, and high royalty costs at San Vicente due to higher metal prices.

On the operational front, the company's performance was mixed. While Jacobina delivered robust results with gold production of 50,400 ounces at an all-in sustaining cost of $1,195 per ounce, operations like La Colorada, Huaron, and Dolores underperformed in terms of production.

Despite the challenges, Pan American Silver received regulatory approval from the Canadian government for the sale of its 100% stake in La Arena in Peru to Zijin Mining. The $245 million cash deal, expected to close in Q4, will further strengthen the company's balance sheet and provide additional liquidity for future growth and shareholder returns.

In line with its commitment to capital returns, Pan American Silver maintained a quarterly dividend of $0.10 per share and repurchased shares worth $24.3 million under its share buyback program during the quarter.