The most common type of mining stock that investors will put their money into is gold stocks. Traders seem to think that there is more profit to be made with them. For us, this seems like a missed opportunity to invest in other types of mining stocks. Silver stocks, for instance, have been going strong this year with prices increasing more than 50% since it began. Silver pricing has increased much more than gold in 2020, which is why there are many silver stocks to watch right now.
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Where does the problem lie for silver at the moment? The obvious candidate is the economy and the pandemic. Silver production slowed or entirely stopped in some places back in March. Now, those mining companies behind the production are trying to recover. Silver is used in both the retail and industrial markets.
If those start performing better then silver could be positioned for momentum. Silver stocks are rather volatile, but that does not mean they can’t be great investments. It’s time to have a look at 4 silver stocks that could potentially make your watch list in September.Top Silver Stocks To Watch: Walcott Resources Ltd.
The first on this list of silver stocks to watch is Walcott Resources Ltd. (WAL Stock Report). The mining company focuses on acquiring land and exploring as well. Walcott has been working on its Tyr Project in Australia, which is expected to identify about 4,700 grams per ton of silver. This project could turn out to be a great success for Walcott if everything goes smoothly. Australia presents one of the largest opportunities in silver mining plays based on its global positioning holding some of the largest silver reserves in the world.
That g/t Ag expectation is rather high in the silver mining industry. Other mines around the world have a much lower expectation when searching for silver. Walcott will be initiating the Tyr Project in the Torny Underground Mine and the Burra Silver Mine. It seems like investors see the potential in this project as well, as WAL stock has jumped recently.
From August 12th to September 1st, WAL stock price increased from $0.795 to $0.93. This silver penny stock’s 16.98% climb in a matter of weeks shows the potential that WAL stock has in the market. In April WAL stock was only trading around $0.09. The growth of WAL stock is undeniable and something to make note of.
What’s more, is that considering its locale in relation to other producing mines, it will be interesting to watch this story unfold. Investors presently looking at Walcott Resources Ltd. are seeing it before the company begins the development of a potentially high-grade site during a time where silver is becoming a stronger focus for the market.Top Silver Stocks To Watch: Hecla Mining Company
The next silver stock to watch is Hecla Mining Company (HL Stock Report). Hecla is a mining company that deals unrefined gold and silver bullion bars to traders. It also offers lead, zinc, and bulk concentrates & carbon materials. Hecla owns many mines including the Greens Creek mine, the San Sebastian mine, and the Casa Berardi mine just to name a few. The company recently announced that it increased its quarterly dividend by 50% and has enhanced its silver dividend.
The CEO and President of Hecla, Phillips S. Baker Jr. said, “Our Board’s adoption of this improved dividend policy reflects Hecla’s position as the United States’ largest silver producer with mines that have strong operating performance and high silver margins. Our long-standing dividend policy has been enhanced with a larger base dividend and a lower price trigger for the silver-linked dividend. As prices rise, shareholders should get more of the company’s cash flow which imposes continued strong operating and capital cost discipline.”Top Silver Stocks To Watch: Endeavour Silver Corp.
The next on this list of silver stocks is Endeavour Silver Corp. (EXK Stock Report). Endeavour is a silver company that acquires, explores, develops, extracts, processes, and refines silver. The company owns mining properties in Mexico and Chile. Endeavour released its second-quarter results on August 4th. The company reported a loss of $0.02 per share. This beat estimates of $0.03. The previous year, Endeavour’s loss was $0.07 a share.
Furthermore, this boiled down to an earnings surprise of 33.33%. The CEO of Endeavour, Bradford Cooke said, “We were pro-active in implementing our coronavirus prevention and response plan in mid-March to minimize its impact on our mining operations in Mexico. As a result, we have been able to stop the contagion at the mine gates, although our work force has been reduced due to higher risk employees staying home during this time. I commend our Mexico management and employees for responding positively when called upon by these extraordinary circumstances.” As of September 1st, EXK stock is up over 80% year-to-date.Top Silver Stocks To Watch: Avino Silver & Gold Mines Ltd.
The last company on this list of silver stocks is Avino Silver & Gold Mines Ltd. (ASM Stock Price). Avino is a mining company that acquires and explores mineral properties all over Canada. The company owns about 42 mineral claims and four leased mineral claims as well. On August 11th, Avino reported its second-quarter financial results.
These results stated that revenue from mining operations was down 38% from Q2 2019. Mine operating income was $0.8 million though, which was up 166% from the year previous. The CEO and President of Avino, David Wolfin said, “Similar to many other mining companies, Avino’s financial performance for the second quarter was impacted by the temporary mine shutdown due to Covid-19, which in turn resulted in decreased production.”
Even in light of this, the ASM stock price is up 82% from $0.64 a share in January to $1.165 a share this week.What Now?
The current state of the world defines how the market for silver stocks is doing. As mentioned before, some silver companies seem to be performing better over gold in 2020. That is why there are so many great silver stocks to watch. Now the ball is in your court, which silver stocks will be on your September watch list?