In this article, we discuss the 5 best silver mining stocks in 2021. If you want to see our detailed analysis of silver mining stocks and their future outlook, go directly to see the 10 Best Silver Mining Stocks in 2021.
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.
