Best Silver Companies
Silver is a popular commodity that’s used in many products. This is why it’s important to invest in a company that has an established track record of producing the metal.
However, it’s a highly cyclical industry and profit depends on high precious metals prices. This can cause mining companies to post losses during low prices, so it’s best for income investors to choose a solid silver stock that has a proven track record of returning cash to shareholders.
1. First Majestic Silver
First Majestic Silver produces and sells high quality silver rounds, ingots, bars and medallion sets. These bullion products bear a maker’s mark and a statement of weight and fineness stamped directly onto them. They are available for purchase securely online 24/7.
The Company’s four producing mines include San Dimas Silver/Gold Mine in Durango, Mexico and Santa Elena Silver/Gold Mine, La Encantada Silver Mine, and Jerritt Canyon Gold Mine in Colorado. The Company also owns 100% of the mineral rights to the 71,867 hectares of mining claims comprising the San Dimas property.
Currently trading at multiples of silver’s historical all-time high, First Majestic Silver is an attractive stock to consider investing in. Its production growth profile and industry leading returns, combined with exponential revenue and earnings growth, position the Company for long-term shareholder value creation.
InvestorsObserver rates the stock as a strong Buy and gives it an Overall Score of 53. This puts the company near the top of the Silver industry.
2. Silvercorp Metals
Silvercorp Metals is a profitable Canadian mining company that produces silver, lead and zinc metals. The company creates shareholder’s value through efficient management, organic growth and the acquisition of profitable projects.
It balances profitability, social and environmental relationships, employees’ wellbeing and sustainable development. In addition, the company is committed to high-quality governance based on ISS Governance QualityScores.
The company also invests in world-class opportunities. Its current portfolio includes silver, gold, lead and zinc mineral properties in China.
During the year, the company reported revenues of $16 million and net income of $3.2 million. Its operating results were impacted by increases in silver and gold sold, and decreases in zinc sold, primarily resulting from the price of silver, gold, and lead.
The company also repurchased common shares under its NCIB program. These purchases were made at market prices through the NYSE and TSX, in compliance with regulatory requirements.
Fresnillo is a global leader in mining and produces gold and silver from three mines in Mexico. Its products include silver dore bars and semi-pure alloys. The company also leases mining equipment.
Fresnillo produces silver at its Mina Proano and Cienega operations in Zacatecas; and gold at its Herradura, Noche Buena and Saucito mines in Sonora. Its Juanicipio project, in which it owns a 44% stake with MAG Silver, is expected to boost production.
The company expects to produce 53.1 million ounces of silver and 751,200 ounces of gold in 2021, below guidance of 53.5 million to 59.5 million ounces of silver and 675,000 to 725,000 ounces of gold. The Company said that the decrease was due to a lower gold production rate at Herradura and Saucito, and a lower volume of ore processed at Noche Buena and Cienega.
In addition to mining, Fresnillo provides service to communities where it operates. It is committed to maintaining strict adherence to local environmental regulations and has a strong focus on education. It is also dedicated to safety and health.
4. Wheaton Precious Metals
Wheaton Precious Metals is one of the world’s largest precious metals streaming companies by revenue, operating cash flow and precious metals production. It enters into long-term purchase agreements with a number of mining companies for the delivery of gold, silver and palladium.
It has a portfolio of high-quality, low-cost assets, with the highest cash operating margins in the industry. This business model provides investors with commodity price leverage and exploration upside, while offering a much lower risk profile than traditional mining companies.
The company’s business model is based on royalty and streaming payments, which offer cost inflation protection while maintaining the potential to increase precious metal prices in a rising interest rate environment. Its strong balance sheet and liquidity provide it with ample flexibility if it decides to do any major streaming transactions.
As of the most recent quarter, Wheaton had