In this article, we will take a look at the 5 best junior silver mining stocks. If you want to read our industry introduction, then head over to the 10 Best Junior Silver Mining Stocks.
5. Coeur Mining, Inc. (NYSE:CDE)
Number of Hedge Fund Holders: 14
Coeur Mining, Inc. (NYSE:CDE) is a Chicago, Illinois-based mining company that has the distinction of being the ninth biggest producer of silver in the world. The operations of the company are spread across five mines, out of which four are wholly owned. The company has a headcount of around 2,000 employees.
To boost its liquidity position, Coeur Mining, Inc. (NYSE:CDE) sold its mining operations in Nevada to AngloGold Ashanti for $150 million. The mine is said to hold 914,000 ounces of gold. However, in case AngloGold Ashanti can find mineral resources of more than 3.5 million ounces, they would have to pay an additional $50 million to Coeur Mining, Inc. (NYSE:CDE). The divestment is expected to unlock greater value for Coeur Mining, Inc.’s (NYSE:CDE) shareholders.
D E Shaw was the leading hedge fund investor in Coeur Mining, Inc. (NYSE:CDE) during Q2 2022.
4. SSR Mining Inc. (NASDAQ:SSRM)
Number of Hedge Fund Holders: 15
SSR Mining Inc. (NASDAQ:SSRM) is a mining company that owns the biggest silver mine in Argentina. The operations of the Vancouver, Canada-based corporation are spread across the Americas and Turkey through its four mines.
SSR Mining Inc. (NASDAQ:SSRM) received a boost on September 22 after the Turkish regulatory authorities gave the company a green signal to restart operations at the Copler gold mine. SSR Mining Inc. (NASDAQ:SSRM) stock price plummeted by 11% in June 2022 after the company reported a minor cyanide leak at its facilities. The company utilized the downtime by going through a maintenance activity that was planned for Q4 2022. As a result, there will be no downtime for the facilities due to maintenance activity for the rest of this year. SSR Mining Inc. (NASDAQ:SSRM) has an annual forward dividend yield of 2.06% as of September 28.
Palm Valley Capital Management shared its outlook on SSR Mining Inc. (NASDAQ:SSRM) in its Q4 2021 investor letter. Here’s what the firm said:
“During the fourth quarter we took advantage of weakness in the precious metal and energy sectors to acquire two small new positions that we believe are selling at attractive prices relative to their strong, asset heavy balance sheets. During the quarter we sold SSR Mining (ticker: SSRM). We exited SSR Mining after the shares appreciated above our fair value estimate.”
3. Hecla Mining Company (NYSE:HL)
Number of Hedge Fund Holders: 16
Hecla Mining Company (NYSE:HL) is a Coeur d’Alene, Idaho-based mining company that is considered the biggest producer of silver in the US, with a rich history of over 130 years.
Hecla Mining Company (NYSE:HL) single-handedly produces around two-fifth of all the silver in the US and has been listed on the NYSE for the past five decades. CEO Hecla Mining, Phillips S. Baker Jr., believes that the demand for silver has increased four times from the current level due to the demand of the solar industry. Presently, the solar industry is consuming 120 million ounces, or 12% of the total global production of silver, and Mr. Baker anticipates this demand rising to 500 million ounces by 2050. Through acquisition and improving the efficiency of its current operations, Hecla Mining Company (NYSE:HL) has been able to increase its production by more than 25% since 2010. The company is expected to be a beneficiary of the increasing demand for silver. Hecla Mining Company’s (NYSE:HL) annual forward dividend yield stands at 0.63% as of September 28.
2. Pan American Silver Corp. (NASDAQ:PAAS)
Number of Hedge Fund Holders: 18
Pan American Silver Corp. (NASDAQ:PAAS) is a mining company that has operations in Argentina, Bolivia, Peru, and Mexico.
In a research note issued to investors on August 15, Don Demarco at the National Bank of Canada gave Pan American Silver Corp. (NASDAQ:PAAS) stock a target price of $23.92 (C$33) and reiterated an Outperform rating on the stock. Pan American Silver Corp. (NASDAQ:PAAS) stock is presently trading at a price-to-net asset value (P/NAV) ratio of 0.9x and a forward price-to-cash flow (P/CF) multiple of 7.1x only. In the past, Pan American Silver Corp. (NASDAQ:PAAS) stock traded at a forward P/CF ratio of 12.8x, reflecting a steep valuation discount. The stock’s annual forward dividend yield stands at 2.96% as of September 28. Experts term Pan American Silver Corp. (NASDAQ:PAAS) as one of the best silver mining stocks to gain exposure to the mining industry.
As of Q2 2022, Pan American Silver Corp. (NASDAQ:PAAS) was held by 18 hedge funds.
1. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 27
Wheaton Precious Metals Corp. (NYSE:WPM) is one of the biggest precious metal mining companies in the world. The Vancouver, Canada-based mining company has 23 operational mines and 13 mines that are at the development stage.
On September 12, Emily Chieng at Goldman Sachs started coverage on Wheaton Precious Metals Corp. (NYSE:WPM) stock with a Buy rating and a target price of $38.41. The target provides a potential upside of over 30% from the closing price as of September 28. The analyst believes that the recent acquisitions made by Wheaton Precious Metals Corp. (NYSE:WPM) will result in better cash flow generation, enhancing the company’s ability to generate better returns for investors. Chieng thinks that Wheaton Precious Metals Corp. (NYSE:WPM) stock provides the best exposure to precious metals among companies involved in the streaming of precious metals. Wheaton Precious Metals Corp. (NYSE:WPM) also offers an annual forward dividend yield of 2% as of September 28.
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