Hecla Mining Company (HL), Coeur d’Alene Mines Corporation (CDE): Three Bargain Silver Stocks, 1 ETF to Buy Now!

Low-cost producer

Hecla Mining Company (NYSE:HL) has been in operation for more than 100 years and is one of the lowest-cost producers. In 2012, according to its annual report, it produced 6.4 million ounces of silver at a cash cost of $2.70 per ounce. Its Green Creek mine in Alaska is one of the largest and lowest-cost mines in the world.

Hecla Mining Company (NYSE:HL) is also making substantial capital expenditures to upgrade the Lucky Friday mine in Idaho. Hecla Mining Company (NYSE:HL) expects to increase production to 15 million ounces by 2017. Hecla Mining Company (NYSE:HL) has a price-to-book of only 0.8 and price-to-sales is only 3.1. With $191 million in cash and no debt, Hecla Mining Company (NYSE:HL) offers growth at bargain-basement prices.

Top silver producer

A good dividend payer

In 2012, Pan American Silver Corp. (USA) (NASDAQ:PAAS) produced a record amount of silver (25.1 million ounces) and gold (112,000 ounces). Despite this record performance, shares declined 21%! Pan American Silver Corp. (USA) (NASDAQ:PAAS) has mines in the United States, Mexico, Peru, Bolivia, and Argentina, with proven and probable reserves of over 317 million ounces of silver (plus 2.4 million ounces of gold).

It is developing the Dolores mine in Mexico, which will be one of the longest-life, lowest-cost mines in the world, at a cash cost of $2.25 to $3.50 per ounce of silver. Pan American Silver Corp. (USA) (NASDAQ:PAAS) has a price-to-book ratio of only 0.7 and price-to-sales ratio of 2.0. With over $500 million in cash and virtually no debt, it is poised to leap higher as silver recovers. And as a bonus, you receive a tremendous 3.8% dividend while you wait.

Foolish bottom line

Silver is at the beginning of a long-term bull market as demand outstrips supply. This is not a sector for the weak-hearted, but if you can tolerate the ups and downs an investment in silver will almost surely reward the patient investor.

John Dowdee owns shares of Hecla Mining Company, Coeur d’Alene Mines, and Pan American Silver. (USA). The Motley Fool has no position in any of the stocks mentioned. John is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article 3 Bargain Silver Stocks, 1 ETF to Buy Now! originally appeared on Fool.com is written by John Dowdee.

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