In this article, we will discuss the 10 Best Silver Mining Stocks to Buy Today.
Silver is a precious metal and is considered a good store of value by investors. Although the year 2022 has not been a particularly good year for the metal as it has been one of the worst-performing metals in the period, many now believe that the price of silver has reached a bottom, and as investors flock to safe-haven assets amidst a broader market sell-off, the demand for silver is set to rise.
The start of October saw the precious metals market faring well, with the silver market posting healthy returns over the last two weeks. Silver has recovered greatly from its downwards trajectory in the past few months, closing at $19.14 per ounce on October 11, 2022. Investors are now starting to think that the US FED is close to the peak of its interest-rate hikes and may slow down the rate increases in the near future, which has sparked a rally in the metals sector.
The demand for this precious metal may see an uptick owing to rising polysilicon production, utilized in photovoltaic cells used for producing solar energy; this, in return, may support the price of silver. As the European Union is seeking to boost its solar capacity target by 10% and global Electric Vehicle production, another major industry that uses silver is increasing. As a result, the demand for silver may increase substantially in the future.
Exposure to commodities and precious metals like silver is a key component of the diversification strategy for most investors, and as the demand for silver continues to grow, we have picked the 10 best silver mining stocks to provide you with some exposure to this metal. Wheaton Precious Metals Corp. (NYSE:WPM), Coeur Mining, Inc. (NYSE:CDE), and Pan American Silver Corp. (NASDAQ:PAAS) are examples of silver mining companies that remain popular among hedge funds we tracked as of the end of the second quarter.
Photo by Scottsdale Mint on Unsplash
Our Methodology
We have hand-picked the ten best silver mining companies based on a number of factors, including their valuation, analyst ratings, and growth catalysts in place. We also scanned our database of 895 elite hedge funds to pick the most popular silver mining stocks among these money managers.
10. Orla Mining Ltd. (NYSE:ORLA)
Number of Hedge Fund Holders: 2
Orla Mining Ltd. (NYSE:ORLA) has business operations in the regions of Panama, Mexico, and Nevada. The company’s projects include the Camino Rojo gold-silver-zinc-lead complex in Mexico, the Cerro Quema Gold Project in Panama, Lewis Project, and Railroad Project. Orla was able to achieve commercial production at the Camino Rojo Oxide Mine in April 2022.
Earlier in August, Orla Mining Ltd. (NYSE:ORLA) acquired Gold Standard Ventures, a gold exploration company operating in Nevada. Following the acquisition, Arun Lamba, an analyst at TD Securities, started coverage of Orla Mining Ltd. (NYSE:ORLA) with a Buy rating on the company’s stock. The analyst believes that the acquisition would bode well for the company and drive growth in the future. The analyst currently has a target price of C$7.50 on the shares.
The management of Orla Mining Ltd. (NYSE:ORLA) has been able to control its costs which has resulted in higher margins for the company compared to its peers. With an annual production capacity of 500,000 ounces, Orla Mining Ltd. (NYSE:ORLA) is a great company to invest in.
At the end of Q2 2022, First Eagle Investment Management held the highest stake in Orla Mining Ltd. (NYSE:ORLA) with a holding of 5,895,007 shares of the company, constituting 0.04% of the fund’s portfolio. According to Insider’s Monkey database, 2 hedge funds owned stakes in the company at the end of the June quarter.
In addition to Orla Mining Ltd. (NYSE:ORLA), Pan American Silver Corp. (NASDAQ:PAAS), MAG Silver Corp. (NYSE:MAG), and Wheaton Precious Metals Corp. (NYSE:WPM) are included in our list of 10 best silver mining stocks to buy today.
9. Avino Silver & Gold Mines Ltd. (NYSE:ASM)
Number of Hedge Fund Holders: 3
Avino Silver & Gold Mines Ltd. (NYSE:ASM) is a Canadian-origin precious metals mining company with operations in Avino, Mexico. While seeking organic growth for the Avino complex, they are also looking for strategic metal exploration and mining opportunities and recently completed the acquisition of La Preciosa, an untapped silver mine in Mexico, on March 21, 2022. Avino Silver & Gold Mines Ltd. (NYSE:ASM) is currently trading at a valuation of 12x forward P/E.
The company continued to ramp up its mining operations during Q2 2022 and produced 225,537 ounces of silver, 1,644,343 pounds of copper, and 1,350 ounces of gold during the quarter. Avino Silver & Gold Mines Ltd. (NYSE:ASM) is a profitable silver mining company and generated a free cash flow of $1.2 million during the second quarter of 2022, which is why the company is included in our list of 10 best silver mining stocks to buy today.
At the end of the quarter ending June 2022, Renaissance Technologies was the most bullish on Avino Silver & Gold Mines Ltd. (NYSE:ASM), with a holding of 596,133 shares of the company. As per Insider’s Monkey database, 3 hedge funds owned stakes in Avino Silver & Gold Mines Ltd. (NYSE:ASM) at the end of Q2 2022.
8. Silvercorp Metals Inc. (NYSE:SVM)
Number of Hedge Fund Holders: 8
With origins in Canada, Silvercorp Metals Inc. (NYSE:SVM) is involved in the silver mining business with a primary focus on mines in China since 2022. They are undertaking extensive drilling operations to drive organic growth. The company holds strategic operating rights in New Pacific Metals and White Horse Gold.
The company is currently focused on growth, with an increasing focus on mergers and acquisitions and investments in mines outside of China to drive future earnings growth. Silvercorp Metals Inc. (NYSE:SVM) is trading at a cheap valuation, at a forward EV/EBITDA of 3.92x as compared to the sector media of 5.87x. Given the company’s growth potential from acquisitions and mergers, the company is undervalued and a good buy at the current price levels. Additionally, Silvercorp Metals Inc. (NYSE:SVM) is currently offering a dividend yield of 1.03%, which provides an additional incentive to long-term investors.
Silvercorp Metals Inc. (NYSE:SVM) announced a share repurchase program in August, in which the company intends to buyback 7,079,407 of its own common shares. The share buyback will enhance the return to existing shareholders of the company as the price of the stock will be supported through the program. The buyback program will expire in August 2023.
As per Insider’s Monkey database, 8 hedge funds owned stakes in Silvercorp Metals Inc. (NYSE:SVM) at the end of the June quarter. Renaissance Technologies was the leading stakeholder of the company at the end of Q2 2022, with a total investment value of over $13 million in the company.
7. SilverCrest Metals Inc. (NYSE:SILV)
Number of Hedge Fund Holders: 11
SilverCrest Metals Inc. (NYSE:SILV) is a Canada-based precious metal mining company. It is currently in the process of commissioning a high-grade Las Chispas mining complex in Sonora, Mexico. SilverCrest Metals Inc. (NYSE:SILV) was the first company to accomplish the drill test at Las Chispas and uncover multiple discoveries of precious metal.
The company had a robust liquidity position at the end of the second quarter, with cash and cash equivalents of $118.6 million. On September 15, Ryan Thompson, an analyst at BMO Capital, reduced his price target on SilverCrest Metals Inc. (NYSE:SILV) to C$12.25. The analyst currently has an Outperform rating on the stock.
11 hedge funds in Insider’s Monkey database were long SilverCrest Metals Inc. (NYSE:SILV) at the end of the second quarter of 2022. Sprott Asset Management was the most bullish fund on the company, with a total holding of 8,103,611 shares, constituting 4.48% of the fund’s portfolio.
6. Endeavour Silver Corp. (NYSE:EXK)
Number of Hedge Fund Holders: 11
Endeavour Silver Corp. (NYSE:EXK) is a mid-level precious metal producer with a vision to become a top-tier silver producer. The company has ownership of 4 silver gold underground complexes in Mexico and is currently seeking to expand operations of the Terronera mine.
Endeavour Silver Corp. (NYSE:EXK) silver production during Q3 increased to 12% on a YOY basis, primarily due to a rise in production at Guanacevi mine located in Mexico.
Endeavour Silver Corp. (NYSE:EXK) has a strong record of performance and has consistently been able to outperform its own silver output guidance. Although inflation has put pressure on the company’s gross margins during the past year, the company’s profitability will improve as cost inflation starts to subside.
At the end of Q2 2022, Millennium Management remained the leading stakeholder of Endeavour Silver Corp. (NYSE:EXK), with an investment value of over $2 million in the company. According to Insider’s Monkey database, 11 hedge funds owned stakes in Endeavour Silver Corp. (NYSE:EXK) at the end of Q2 2022.
5. MAG Silver Corp. (NYSE:MAG)
Number of Hedge Fund Holders: 12
Headquartered in Canada, MAG Silver Corp. (NYSE:MAG) is involved in development and exploration activities. The company is concerned with securing access to district-scale projects, mainly in the Americas, and exploring and developing mines. Its primary business comes from the Juanicipio Project, located in Mexico.
The construction work and upgradation of the electric grid systems were completed last month on the company’s Juanicipio Project. MAG Silver Corp. (NYSE:MAG) is expected to ramp up production at the site during Q4 2022. MAG Silver Corp. (NYSE:MAG) owns a 44% stake in Juanicipio Mine, and the site is expected to produce over 11 million oz of silver and 44k oz of gold annually.
MAG Silver Corp. (NYSE:MAG) output of silver and gold will increase significantly in 2023 with the addition of the production from the mine, which can prove to be a catalyst for earnings growth for the company. The stock of the company is down 19.6% YTD as of October 20, 2022, which presents an attractive entry point for long-term holders as the company ramps up production in 2023 to become a significant silver mining company.
Sprott Asset Management held the highest stake in MAG Silver Corp. (NYSE:MAG) at the end of the June quarter, with an investment value of approximately $62 million in the company. 12 hedge funds are currently bullish on MAG Silver Corp. (NYSE:MAG) as per Insider’s Monkey database.
4. Coeur Mining, Inc. (NYSE:CDE)
Number of Hedge Fund Holders: 14
With its origins in the United States, Coeur Mining, Inc. (NYSE:CDE) is a blooming global precious metals producer which is engaged in the business of development, exploration, and extraction of precious metals, including Silver, Gold, lead, and zinc. The company has five operations segments: Palmarejo, Kensington, Silvertip mines, Rochester, and Wharf.
The company recently announced the sale of its interest in Crown and Sterling projects in Nevada at a cash consideration of $150 million and a deferred cash payment of $50 million, which it will utilize for the expansion of the Rochester mine in northern Nevada. The company’s stock has performed well in October and is up 16.5% since the start of this month as of October 20, 2022. Coeur Mining, Inc. (NYSE:CDE) has a strong liquidity position and has sufficient capital available as it continues to implement its expansion plans, which will drive earnings growth in the future.
At the end of Q2 2022, D E Shaw came out to be the fund with the largest holding in the company. The fund owned 5,363,437 shares of Coeur Mining, Inc. (NYSE:CDE) with an investment value of over $16 million in the company. As per Insider’s Monkey database, 14 hedge funds owned stakes in Coeur Mining, Inc. (NYSE:CDE) at the end of the second quarter.
3. Hecla Mining Company (NYSE:HL)
Number of Hedge Fund Holders: 16
Hecla Mining is engaged in the business of mining essential precious metals since 1981. The company has ownership and stakes in mines across Alaska, Idaho, Quebec, Canada, and Yukon Territory. The company also has exploration complexes in key silver and gold mining regions across North America.
Hecla Mining Company (NYSE:HL) remains the biggest silver mining company operating in the US and accounts for approximately a third of all the silver produced in the USA. The management continues to execute on its strategic plans, and earlier in September, the company completed the acquisition of Alexco Resource Corp. The company has increased its silver production by over 25% during the past decade and is on the path to becoming the largest silver producer in Canada.
Hecla mining’s stock has been performing well after the company increased its full-year guidance of silver production to 13.6 million – 14.1 million oz and gold output in the range of 519K-536K oz. The company also pays dividends to investors and has a dividend yield of 0.55%.
As per Insider’s Monkey database, 16 hedge funds had stakes in Hecla Mining Company (NYSE:HL) at the end of the June quarter. Renaissance Technologies was the most bullish fund on the company’s stock, with a total holding of 5,754,710 company stocks at the end of Q2 2022.
2. Pan American Silver Corp. (NASDAQ:PAAS)
Number of Hedge Fund Holders: 18
Founded in 1994 and headquartered in Canada, Pan American Silver Corp. (NASDAQ:PAAS) is an industrial and precious metals mining company operating in Latin America. It is amongst the largest silver producers in the US. The company owns mines in Canada, Peru, Argentina, Bolivia, and Mexico.
The company recorded a silver production of 4.5 million and a gold output of 128.3K ounces during the second quarter ending in June. On October 14, Don Demarco, an analyst at National Bank, reduced his price target on the company’s stock to C$31.50. The analyst currently has an Outperform rating on the stock.
Pan American Silver Corp. (NASDAQ:PAAS) share performance has been underwhelming in 2022, and the stock has declined by over 34% in the current year as of October 20, 2022. The company remains a market leader in the sector and has a robust balance sheet position, with net cash of $241.26 million. Pan American Silver Corp. (NASDAQ:PAAS) offers an attractive dividend yield of 2.51%.
At the end of the quarter ending June 2022, Slate Path Capital was the leading holder of the company’s stock, with a holding of 3,888,000 shares. As per Insider’s Monkey database, 18 hedge funds owned stakes in Pan American Silver Corp. (NASDAQ:PAAS) at the end of the second quarter.
1. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 27
Wheaton Precious Metals Corp. (NYSE:WPM) is among the leading precious metals streaming companies. The company holds 14 development-stage projects and 21 operational mines.
On September 12, Emily Chieng, an analyst at Goldman Sachs, started coverage of the company with a price target of C$53. The analyst believes that the company will continue to generate strong profitability in the coming quarters resulting in increased free cash flow, which will increase the chances of gaining a high return on capital for the investors.
Wheaton Precious Metals Corp. (NYSE:WPM) has been growing its dividends over the past three years and currently offers a dividend yield of 1.88% to investors. The company’s stock is down 23.91% YTD as of October 20, 2022, and is a good entry point for long-term investors.
In its Q2 2020 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks, and Wheaton Precious Metals Corp. (NYSE:WPM) was one of them. Here is what the fund said:
The strength in the price of gold was generally supportive of gold-related equities whose performance historically has been leveraged to the gold price. One such example is Wheaton Precious Metals, a Canadian streaming company that maintains, in our view, a high-quality, low-cost portfolio of precious metal purchase agreements that is well diversified across mining partners, geographies, and metal types. Despite pandemic-related suspensions of six of its mining assets, Wheaton posted a 50% year-over-year increase in operating cash flow for the first quarter, which allowed the company to reduce its net debt while raising its quarterly dividend payment.
First Eagle Investment Management held the highest stake in the company at the end of Q2 2022, with a total investment value of over $613 million in the company. According to Insider’s Monkey database, 27 hedge funds owned stakes in Wheaton Precious Metals Corp. (NYSE:WPM) at the end of Q2 2022.
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Disclosure: None. 10 Best Silver Mining Stocks to Buy Today is originally published on Insider Monkey.
