Silver stocks might not be abundant, but a handful of them truly stand out. Five major companies are leading the pack when it comes to their market value.
The year 2022 wasn’t particularly strong for silver, but 2023 tells a different story. The metal began this year priced at about US$24 per ounce. It did experience a dip in early March, dropping to around US$20. However, by mid-April, it bounced back and reached US$26 per ounce.
This resurgence can be likened to gold’s performance, a metal closely related to silver. Gold managed to surpass the US$2,000 per ounce mark on several occasions.
On April 13, the same day when silver reached its highest point for the year, gold was inching towards a record high of nearly US$2,050 per ounce.
2023 hasn’t just been a year of rising silver prices. The major silver companies have been thriving too. They’ve not only seen an increase in their stock values but have also made some significant announcements.
As of April 12, 2023, these firms topped the list in market cap, according to data from TradingView’s stock screener.
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Here are the Top Silver Stocks
1. SilverCrest Metals (TSX: SIL)
SilverCrest Metals, listed on TSX as SIL, boasts a market capitalization of C$1.43 billion and a current share price of C$9.70. The company is making significant strides in its high-grade Las Chispas mining district situated in Sonora, Mexico.
In addition to this, SilverCrest owns the El Picacho gold-silver property, which is conveniently located just 85 kilometers by road from Las Chispas. They also have some properties that they aren’t exploring at the moment.
In 2022, SilverCrest saw notable progress. By May, construction was completed and by the fourth quarter, the company had reached commercial production. Their efforts throughout the year were commendable, with Las Chispas recovering 1.7 million ounces of silver and 17,800 ounces of gold. This was confirmed in their 2022 financial results.
The company’s CEO, N. Eric Fier, expressed their dedication towards further refining their operations. He mentioned, “We remain focused on continuing to optimize the operation.” Additionally, he highlighted their aim to release an updated technical report in the second quarter of 2023.
This report is expected to provide insights into their updated cost and production strategies.
2. Fortuna Silver Mines (TSX: FVI)
Fortuna Silver Mines holds the best silver stocks, listed on TSX as FVI, boasts a market capitalization of C$1.57 billion, and has a current share price of C$5.41.
With operating silver and gold mines spread across Argentina, Burkina Faso, Mexico, and Peru, Fortuna has a strong footprint in the mining sector.
Additionally, the company is branching out to Côte d’Ivoire, where it’s in the advanced stages of constructing the Séguéla gold project. A significant emphasis of Fortuna is on ensuring operational sustainability across its mining ventures.
In terms of its silver production, Fortuna had an impressive record in 2022. The company announced that they mined a total of 6.91 million ounces of silver during the year, slightly exceeding their predicted output, which was in the range of 6.2 million to 6.9 million ounces.
However, for the first quarter of 2023, the company reported a production of 1.59 million ounces, marking a 5 percent decline from the previous year. Despite this dip, Fortuna’s projection for the entirety of 2023 remains optimistic, with an expected output of between 6.3 million and 6.9 million ounces.
On another bright note for Fortuna, their new Séguéla gold project in Côte d’Ivoire is close to becoming operational.
The company’s Q1 update highlighted that Séguéla is on course to commence gold production by May. This development will undoubtedly add a new dimension to Fortuna’s mining portfolio and its presence in the global market.
3. MAG Silver (TSX: MAG)
MAG Silver, listed on TSX as MAG, is a development and exploration company with a keen interest in the Americas. Valued at C$1.9 billion, its shares are currently trading at C$18.81.
The company’s main asset is the Juanicipio project located in Mexico, known for its rich deposits of silver, gold, lead, and zinc. This venture is not solely MAG Silver but is in partnership with Fresnillo, a company listed on LSE as FRES and OTC Pink as FNLPF.
Within this partnership, MAG Silver holds a 44 percent stake. Additionally, the company is making strides to secure a complete interest in the Deer Trail exploration project situated in Utah, US.
Recently, on March 27, MAG Silver publicized its annual results for the year 2022. These results revealed advancements in the Juanicipio project, specifically the ongoing commissioning of its processing plant.
Excitingly, that month, the project celebrated its initial production of lead concentrate. The company is optimistic, projecting that the first commercial shipment is on the horizon and they anticipate reaching their full production capabilities by the second half of 2023.
4. First Majestic Silver (TSX: FR)
First Majestic Silver, listed as TSX: FR, is a noteworthy player in the silver mining industry. With a market capitalization standing at C$2.79 billion and a share price of C$10.27, it is an enterprise of significant scale. The company has its hands on a diverse range of mining activities.
Specifically, it runs four mines: San Dimas and Santa Elena, both silver-gold mines located in Mexico; La Encantada, a silver mine also in Mexico; and the Jerritt Canyon gold mine situated in Nevada, US.
Beyond these active mining operations, First Majestic Silver has a keen eye on the future. It owns eight silver exploration properties, adding more potential for future extraction. The company also possesses a silver stream, where they’re entitled to 50 percent of the payable silver from the Springpole gold-silver project.
The past year, 2022, was a landmark one for First Majestic. They proudly reported a record production of 31.3 million silver equivalent ounces. Out of this huge number, 10.5 million were pure silver ounces. Impressively, this was a 16 percent jump compared to their 2021 figures.
However, they couldn’t quite meet their projections for the year. The primary reason is the challenges faced at the Jerritt Canyon mine. The grades and throughput they received from this mine weren’t up to their expectations.
Recognizing these challenges, by the end of March, the company made a strategic move concerning the Jerritt Canyon mine. They temporarily halted all mining activities there.
Their goal is to find more cost-effective methods to mine at this location. While mining has paused, the company is not staying still. They are focusing on processing the existing stockpiles they have. Simultaneously, they are also exploring new targets, hoping to expand the resources available at Jerritt Canyon in the future.
5. Pan American Silver (TSX: PAAS)
Pan American Silver, traded as TSX: PAAS, has a market capitalization of C$9.28 billion and a current share price of C$25.69. Proudly calling itself “the world’s premier silver mining company,” its mining operations also dive into gold and copper.
Earlier in March, Pan American Silver expanded its portfolio by purchasing Yamana Gold, which added four producing assets in Latin America to its name.
Geographically, their presence is strong across the Americas. With the recent Yamana Gold additions, the company boasts four properties in Peru, two each in Mexico, Chile, and Argentina, and one in Guatemala, Bolivia, and Canada.
Out of all these properties, seven are active, producing mines, while four are being maintained without active production. La Colorada in Mexico stands out as its most prolific silver mine.
In terms of production, 2022 saw the company extracting a commendable 18.5 million ounces of silver. Although they’ve not shared their production expectations for 2023, which will factor in the recently acquired Yamana mines, they intend to provide an update in the upcoming second quarter.
For investors hoping to profit from the possibility of an increase in the price of silver, investing in the finest silver mining stocks might be a rewarding opportunity. Before making any investing selections, it is crucial to carry out an exhaustive study and due diligence. Take to research the different silver mining companies out there.
There are several things to take into account when it comes to precious metals and silver stock, such as the mining firms’ financial stability, their capacity for production, the geopolitical dangers in the areas where they operate, and the outlook for the silver market as a whole.