When it comes to the mining sector, silver stocks are often overlooked for gold stocks. For some reason, traders are more gravitated towards gold. What they don’t realize, is that they are missing an opportunity to make money with silver stocks. In 2020, the price of silver stocks has increased by more than 50% for many companies.
The price of silver has increased consistently for the last five months. In March silver was seeing new lows, but now silver reached a 7 year high in August. This momentum has carried itself into September as well, with silver reaching $923.33/kg on the 1st. As of September 10th, the price of silver is at $870.99 on average. The price of silver has gone up about 1.28% from the 3rd to the 10th.
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Generally, silver stocks will go up when the metal is being used more for industrial activities. Silver is also used as an asset for people to hold instead of money, similarly to gold. Because silver is driven by industrial demand, if the economy recovers around the world then silver could outperform itself. Let’s now take a look at 4 silver stocks to watch.Top Silver Stocks To Watch: Walcott Resources Ltd.
Let’s first talk about Walcott Resources Ltd. (WAL Stock Report). Walcott is a mining company that primarily acquires land, explores, and mines. Currently, Walcott Resources has been developing its Tyr Project in Australia. High-grade zinc-lead-tin mineralization has already been identified. Walcott plans to re-open two historic silver mines with conservative inferred resource estimates and many high-grade surface mineral occurrences up to 4,710 grams per ton of silver (g/t Ag).
If you’re not up to speed on that magnitude of occurrences of that size, Buenaventura’s Uchucchacua mine, located in Peru, is the highest-grade silver mine in the world. It holds reserve grades of 445 g/t Ag. Furthermore, looking locally, South 32’s Cannington Mine produces 6% of the world’s silver; it has a measured mineral resource of 56Mt @ 193 g/t Ag.
The company’s Tyr Project is broken up into two mines right now, the Torny Underground Mine and the Burra Silver Mine. Both underground mines were last in operation 80-90 years ago and each holds historic inferred resources. Furthermore, there is sufficient historic data to expedite modeling NI-43-101 compliant resources for the two mines. While silver prices continue trading at record levels for 2020, will junior silver stocks thrive?Top Silver Stocks To Watch: Fortuna Silver Mines Inc.
Next on this list of silver stocks is Fortuna Silver Mines Inc. (FSM Stock Report)(FVI). Fortuna is a silver mining company that operates two mines. These mines are located in Peru and Mexico. In 2016, Fortuna purchased Goldrock Mines for $129 million CAD, but it is under construction. What recently drove FSM stock up was its second-quarter financial results that launched on August 13th, 2020. These results were negative but still better than expected it seems.
Fortuna reported a loss of 34% in sales to $44.5 million. The president and CEO of Fortuna had this to say: “Although the unprecedented volatility and government-mandated shutdowns during the second quarter have resulted in a $5.7 million net loss, our cost and investment reduction plans have allowed us to maintain a neutral free cash flow position from ongoing operations.”
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The company claims it can adapt and change its plans to cooperate with COVID-19 restrictions and constraints. In 2020, FSM stock price is up 80% as of September 10th. Fortuna announced it has initiated irrigation and ore leaching at its Lindero gold Project in Argentina on September 3rd. It is expected its first gold pour in early October 2020. That is why FSM stock has made this list of silver stocks to watch.Top Silver Stocks To Watch: First Majestic Silver Corp.
First Majestic Silver Corp. (AG Stock Report)(FR) is another silver producer that focuses on acquisition, development, and production. The company owns 100% interest in San Dimas Silver and Gold Mine. This mine covers an area of 71,868 hectares. It also owns the La Encantada Silver Mine covering 3076 hectares. It has an additional interest in the Springpole project which covers 41,943 hectares as well. In recent news, First Majestic reported its second-quarter results on August 6th.
The silver production company stated its revenue was at a 58% decrease due to limited operations as a result of COVID-19. The company stockpiled its silver invesntors, and then sold 970,000 ounces of silver which will be counted for Q3 revenue. The CEO and President, Keith Neumeyer said, “Obviously the second quarter for many industries, including the mining sector in Mexico, was negatively impacted by government mandated closures. We are glad most of these negative impacts are now behind us as our operations regain pre-COVID production rates.”
This company also released an ESG and sustainability report recently. Keith Neumeyer, President and CEO of First Majestic Silver said, “This inaugural report sets a new foundation to benchmark our sustainability performance for years to come and allows a broader audience to appreciate how our business success is reflected in our commitment to responsible practices and transparency with all stakeholders.”Top Silver Stocks To Watch: Endeavour Silver Corp.
The final company on this list of silver stocks is Endeavour Silver Corp. (EXK Stock Report)(EDR). Endeavour is a silver company that’s primary focus is acquiring, exploring, and developing its properties. Additionally, Endeavour will extract, process, and refine silver as well. Endeavour actively does all of this at its two mines in Chile and Mexico. In recent news, Endeavour has put out its second-quarter results on August 4th. Endeavour reported a loss of $0.02 per share. While this seems bad, it actually beat the analyst estimate of $0.03 per share.
This is much better than Endeavour’s loss of $0.07 per share year over year. The CEO of the company, 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.” This has caused Endeavour to eliminate the spread of the virus at its mines.
Although its workforce is reduced, the company has managed to stay positive during these dark times. EXK stock is up more than 75% in 2020. This is due to silver prices going up and Endeavour’s ability to adapt to the coronavirus restrictions.