In this article, we will take look at the 10 best silver mining stocks in 2021.
During uncertain times, investors often take refuge in precious metals. Especially during inflation, precious metals, particularly gold and silver, become a staple for the investors’ portfolios. Gold has always taken a central stage in the precious metals industry, but the reversal of the situation was witnessed in 2020 as silver stocks continued to outperform gold stocks. Earlier this year, the prices of silver reached an eight-year high as Reddit’s WallStreetBets piled into the metal.
According to the data collected by FactSet in April 2021, silver soared by 70% in 2020, compared with gold, which gained 4% during the same time. A reason for this growth is silver’s industrial uses, especially in solar products, EVs and semiconductors. A report published by The Silver Institute says that the automotive industry will likely use 61 million ounces of silver in 2021. This figure could reach 88 million ounces in five years.
According to a report published by The Silver Institute, physical investment, like bullion coins and bars, is expected to reach 257 million ounces in 2021, achieving a six-year high. The ETFMG Prime Junior Silver Miners ETF (SILJ), which lists many notable silver stocks like Pan American Silver Corp. (NASDAQ: PAAS), SSR Mining Inc. (NASDAQ: SSRM), Hecla Mining Company (NYSE: HL), Yamana Gold Inc. (NYSE: AUY), and Fortuna Silver Mines Inc. (NYSE: FSM), gained 27.93% in the past year, in-line with the Russell 1000’s return of 28.2% during the same period.
Recently, Bank of America described silver as a ‘metal important for future technologies’, and forecasted the average value of the metal at $27.71 per ounce in 2021. The bank asserted that silver will benefit from the growing demand for solar panels and electrical devices. SSR Mining Inc. (NASDAQ: SSRM) and Pan American Silver Corp. (NASDAQ: PAAS) are among the top picks of the bank in the precious metals sector.
Photo by Scottsdale Mint on Unsplash
Our Methodology:
With this context, let’s analyze the list of best silver mining stocks in 2021. We took into account hedge fund sentiments, analysts’ ratings, long-term growth potential, and fundamentals while choosing these stocks.
Why pay attention to hedge fund sentiment while choosing stocks?
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Best Silver Mining Stocks in 2021
10. Gatos Silver, Inc. (NYSE: GATO)
Number of Hedge Fund Holders: 2
Gatos Silver, Inc. (NYSE: GATO) is an American silver mining and exploration company that focuses on high-grade silver deposits in geopolitically stable areas. The company was founded in 2009 and is headquartered in Colorado, U.S. It ranks tenth on our list of the best silver mining stocks in 2021.
In July 2021, Gatos Silver, Inc. (NYSE: GATO) entered into a contract with the Bank of Montreal for a $50 million revolving credit facility, or RCF, which will provide financial flexibility to the company. In Q2, the company reported a net income of $13.5 million, compared with a net loss of $10.6 million during the same period last year. In July, RBC Capital lifted Gatos Silver, Inc. (NYSE: GATO) to ‘Outperform’, with an $18 price target, up from $15. The analyst Michael Siperco expects the company to benefit from the RCF to accelerate the exploration of the Los Gatos district.
As of Q2 2021, 2 hedge funds have positions in Gatos Silver, Inc. (NYSE: GATO), worth $30.6 million.
9. Endeavour Silver Corp. (NYSE: EXK)
Number of Hedge Fund Holders: 8
Endeavour Silver Corp. (NYSE: EXK) is a precious metals mining company that operates three underground silver-gold mines in Mexico. The company’s Terronera Mine Project aims towards becoming a premier senior silver producer. It ranks ninth on our list of the best silver mining stocks in 2021.
In Q2 2021, Endeavour Silver Corp. (NYSE: EXK) posted revenue of $47.7 million, showcasing a 136% year-over-year growth. The company sold 1.1 million ounces of silver at an average price of $26.82 per ounce. The production of silver presented an 80% growth from the prior-year quarter. Recently, HC Wainwright lifted its price target on Endeavour Silver Corp. (NYSE: EXK) to $6.75, with a ‘Buy’ rating on the shares.
As of Q2 2021, 8 hedge funds have positions in Endeavour Silver Corp. (NYSE: EXK), worth $6.45 million. Renaissance Technologies is the company’s leading shareholder with shares worth $3.7 million.
In addition to Pan American Silver Corp. (NASDAQ: PAAS), SSR Mining Inc. (NASDAQ: SSRM), Hecla Mining Company (NYSE: HL), Yamana Gold Inc. (NYSE: AUY), Fortuna Silver Mines Inc. (NYSE: FSM), and First Majestic Silver Corp. (NYSE: AG), investors and analysts are also paying attention to Endeavour Silver Corp. (NYSE: EXK) amid the company’s long-term growth potential.
8. First Majestic Silver Corp. (NYSE: AG)
Number of Hedge Fund Holders: 11
First Majestic Silver Corp. (NYSE: AG) is a Canadian mining company focused on the production of gold and silver in Mexico and the U.S. The company derives 60% of its revenue from silver production and sales. First Majestic Silver Corp. (NYSE: AG) has four gold and silver operating mines with over 5,400 direct employees. It ranks eighth on our list of the best silver mining stocks in 2021.
In Q2 2021, First Majestic Silver Corp. (NYSE: AG) posted an EPS of $0.05, compared with $0.03 in the previous quarter. The revenue for the quarter stood at $154.1 million, up from $34.9 million during the same period last year. First Majestic Silver Corp. (NYSE: AG) also declared a quarterly dividend of $0.006 per share, presenting a 33% increase from the prior dividend. In July, H.C. Wainwright lifted its price target on First Majestic Silver Corp. (NYSE: AG) to $25, with a ‘Buy’ rating on the shares.
As of Q2 2021, 11 hedge funds have positions in First Majestic Silver Corp. (NYSE: AG), worth $39.5 million.
7. Turquoise Hill Resources Ltd. (NYSE: TRQ)
Number of Hedge Fund Holders: 11
Turquoise Hill Resources Ltd. (NYSE: TRQ) ranks seventh on our list of the best silver mining stocks in 2021. It is a Canada-based mineral exploration and development company that specializes in the exploration and mining of silver, gold, and copper. The company is the subsidiary of multinational metals and mining corporation, Rio Tinto Group (NYSE: RIO).
In Q2 2021, Turquoise Hill Resources Ltd. (NYSE: TRQ) posted a GAAP EPS of $0.48, beating the market consensus by $0.09. The company’s revenue also presented a 14.3% year-over-year growth at $317 million. Silver revenue accounted for $2.9 million of the gross revenue. In August, Scotiabank rated Turquoise Hill Resources Ltd. (NYSE: TRQ) as ‘Outperform’, with a C$30 price target.
Of the 873 hedge funds tracked by Insider Monkey, 11 hedge funds have positions in Turquoise Hill Resources Ltd. (NYSE: TRQ), worth $620.3 million.
In addition to Pan American Silver Corp. (NASDAQ: PAAS), SSR Mining Inc. (NASDAQ: SSRM), Hecla Mining Company (NYSE: HL), Yamana Gold Inc. (NYSE: AUY), Fortuna Silver Mines Inc. (NYSE: FSM), and First Majestic Silver Corp. (NYSE: AG), investors and analysts are also paying attention to Turquoise Hill Resources Ltd. (NYSE: TRQ) amid the company’s long-term growth potential.
6. MAG Silver Corp. (NYSE: MAG)
Number of Hedge Fund Holders: 13
MAG Silver Corp. (NYSE: MAG) is a Canadian exploration and development company that specializes in the exploration of mineral properties. The company operates mineral-dominant projects with a prime focus on silver mining. It ranks sixth on our list of the best silver mining stocks in 2021.
The Joint Venture between MAG Silver Corp. (NYSE: MAG) and Minera Juanicipio is expected to develop an underground mine, with 4,000 tonnes per day processing plant by Q4 2021. The company produced 404,518 ounces of silver in Q2 2021 with an average price of $27.17 per ounce. In July, National Bank lifted its price target on MAG Silver Corp. (NYSE: MAG) to C$31, with an ‘Outperform’ rating on the shares.
As of Q2 2021, 13 hedge funds tracked by Insider Monkey have positions in MAG Silver Corp. (NYSE: MAG), up from 12 in the previous quarter. These stakes are valued at $120.8 million.
5. Fortuna Silver Mines Inc. (NYSE: FSM)
Number of Hedge Fund Holders: 14
Fortuna Silver Mines Inc. (NYSE: FSM) is a Canadian silver mining company with two operating mines located in Mexico and Peru. The company mainly engages in the production of silver and gold minerals.
In Q2 2021, Fortuna Silver Mines Inc. (NYSE: FSM) posted revenue of $120.5 million, presenting a 170.8% year-over-year growth. The company recorded a net income of $21.5 million, compared with a $5.1 million net loss in the prior-year quarter. The production of silver stood at 1.9 million ounces, up 58% from Q2 2021. In July, Pi Financial upgraded Fortuna Silver Mines Inc. (NYSE: FSM) to ‘Buy’ from Neutral.
As of Q2 2021, 14 hedge funds tracked by Insider Monkey have positions in Fortuna Silver Mines Inc. (NYSE: FSM), worth $21.6 million. The number is up from 12 hedge funds in the previous quarter, with stakes valued at $19.8 million.
4. Yamana Gold Inc. (NYSE: AUY)
Number of Hedge Fund Holders: 16
Yamana Gold Inc. (NYSE: AUY) is a Canada-based mining company that mainly produces gold and silver. The company has several development stage properties, exploration, and land properties throughout America, Canada, Brazil, Chile, and Argentina. It ranks fourth on our list of the the best silver mining stocks in 2021.
In Q2 2021, Yamana Gold Inc. (NYSE: AUY) posted an EPS of $0.07, beating the market consensus by $0.01. The consolidated revenue presented a 44.2% year-over-year growth at $437.4 million. Yamana Gold Inc. (NYSE: AUY) reported 1.63 million ounces of silver production in the second quarter. Recently, Canaccord analyst Carey MacRury lifted the firm’s price target on Yamana Gold Inc. (NYSE: AUY) to C$9.50, with a ‘Buy’ rating on the shares. The stock has soared 8.77% in the past six months.
As of Q2 2021, 16 hedge funds tracked by Insider Monkey have positions in Yamana Gold Inc. (NYSE: AUY), worth $129.4 million. With over 12.8 million shares, worth $54.04 million, Jim Simons’ Renaissance Technologies is the company’s largest shareholder.
3. Hecla Mining Company (NYSE: HL)
Number of Hedge Fund Holders: 20
Hecla Mining Company (NYSE: HL) ranks third on our list of the best silver mining stocks in 2021. It is an American silver, gold, and other precious metals mining company. The company holds the largest silver reserve in the U.S. and produces a third of the country’s silver. In addition to operating mines, Hecla Mining Company (NYSE: HL) also owns several exploration properties and developmental projects in silver and gold mining districts in North America.
In Q2 2021, Hecla Mining Company (NYSE: HL) produced 3.5 million ounces of silver, showcasing a 4% increase from the prior-year quarter. The company posted revenue of $218 million, up 31% year-over-year and massively driven by silver production. The board of the company also announced a quarterly dividend of $0.01125 per share. In July, Royal Bank of Canada lifted its price target on Hecla Mining Company (NYSE: HL) to $62, with an ‘Outperform’ rating on the shares. The stock is up by 1.25% since the past year.
Of the 873 hedge funds tracked by Insider Monkey, 20 funds have stakes in Hecla Mining Company (NYSE: HL) in Q2 2021, worth $102.3 million. The number is compared with 16 hedge funds in the previous quarter.
2. SSR Mining Inc. (NASDAQ: SSRM)
Number of Hedge Fund Holders: 20
SSR Mining Inc. (NASDAQ: SSRM) is a free cash flow-focused mining company with four producing assets located in the U.S., Canada, Turkey, and Argentina. The company mainly produces gold, silver, zinc, and tin, and has the largest silver mine in Argentina. In 2019, the four mining assets of SSR Mining Inc. (NASDAQ: SSRM) produced over 7.7 million ounces of silver. It ranks second on our list of the best silver mining stocks in 2021.
Recently, Canaccord listed SSR Mining Inc. (NASDAQ: SSRM) as its Top Pick in the mid-cap precious metals space. The firm lifted its price target on the company to C$25, with a ‘Buy’ rating on the shares. In Q2 2021, SSR Mining Inc. (NASDAQ: SSRM) posted an EPS of $0.46, beating the consensus by $0.06. The company reported revenue of $$377 million, up 307% from the prior-year quarter.
As of Q2 2021, 20 hedge funds have positions in SSR Mining Inc. (NASDAQ: SSRM), up from 16 in the previous quarter. The total value of these stakes is $204.7 million.
Palm Valley Capital released its Q1 2021 investor letter and mentioned SSR Mining Inc. (NASDAQ: SSRM) in it. Here is what the firm has to say:
“As precious metals and precious metal miners underperformed during the quarter, several of the mining stocks on our possible buy list became more attractively priced. After declining 33% from the beginning of the year, we purchased SSR Mining, an intermediate gold company with four producing mines located in the United States, Turkey, Canada, and Argentina. In 2021, the company expects to produce 720,000 to 800,000 gold-equivalent ounces with all-in sustaining costs of $1,050 to $1,110 per ounce. At current gold prices, we expect SSR Mining to generate meaningful free cash flow this year, adding to its cash balance. Currently, the company’s balance sheet is very strong and liquid with $470 million in net cash, $1.2 billion in net working capital, and $3.9 billion in tangible book value. We were happy to purchase SSR Mining at a discount to our valuation of its net assets. In addition to being cheap, we think it’s a nice inflation hedge.”
1. Pan American Silver Corp. (NASDAQ: PAAS)
Number of Hedge Fund Holders: 24
Pan American Silver Corp. (NASDAQ: PAAS) tops our list of the best silver mining stocks in 2021. It is a Canada-based mining company that operates mines in Mexico, Peru, Argentina, and Bolivia. The company provides exposure to silver through one of the world’s largest silver reserves and also offers catalysts to grow silver production. Pan American Silver Corp. (NASDAQ: PAAS) has mineral reserves totaling over 550 million ounces of silver.
In Q2 2021, Pan American Silver Corp. (NASDAQ: PAAS) posted revenue of $382.1 million, up from $249.5 million during the same period last year. The company reported an EPS of $0.22, missing the estimates by $0.11. Pan American Silver Corp. (NASDAQ: PAAS) produced 4.5 million ounces of silver in the second quarter, compared with 2.8 million ounces in the prior-year quarter. On August 10, the company’s board increased the dividend by 43% at $0.10 per share. Recently, BMO Capital gave an ‘Outperform’ rating to Pan American Silver Corp. (NASDAQ: PAAS), with a $38 price target.
As of Q2 2021, 24 hedge funds have positions in Pan American Silver Corp. (NASDAQ: PAAS), worth $312.4 million. Slate Path Capital is the company’s leading shareholder, with shares worth $98.5 million.
You can also take a look at Top 20 Gold Mining Companies and 15 Biggest Mining Companies In The World.
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Disclosure. None. 10 Best Silver Mining Stocks in 2021 is originally published on Insider Monkey.
