Silver Wheaton Corp. (USA) (SLW), Pan American Silver Corp. (USA) (PAAS), First Majestic Silver Corp (AG): Silver Companies Ready to Launch

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Pan American Silver Corp. (USA) (NASDAQ:PAAS) has operations in several places such as Bolivia, Argentina, Mexico and Peru. Pan American Silver Corp. (USA) (NASDAQ:PAAS) has been reporting some impressive numbers. In fact, in its first quarter results, the company reported a 14% increase in its silver production. The company’s owns 100% of its La Colorada mine in Mexico where its silver production grew from 3.7 million ounces in the year 2010 to a figure of 4.4 million ounces last year. The company has attractive fundamentals as it is trading at a forward P/E of 23.80 and a P/B of 0.72.

First Majestic Silver Corp (NYSE:AG)’s operations are almost entirely based in Mexico where it owns five silver producing mines. Its La Encantada mine, which is its biggest operation, was able to produce a whopping 4,036,502 ounces of silver in the year 2012. The company has also initiated its Del Toro Silver project, which is set to become the company’s largest operation by 2014. First Majestic Silver Corp (NYSE:AG) has also received almost $14 million as partial compensation under a court order which can bring as much as $93.84 million into the company. As silver prices increase, I expect this company to show robust growth in its share price as its fundamentals point towards a forward P/E of 11.19 and a P/B of 2.54.

The takeaway

Silver companies are back under the radar as market participants expect silver prices to increase in the coming days. Silver Wheaton Corp. (USA) (NYSE:SLW) is, and will be, my undisputed champion in the wake of a recovery in silver prices. Other than that, I also expect Pan American Silver Corp. (USA) (NASDAQ:PAAS) and First Majestic Silver Corp (NYSE:AG) to report some solid increase in their share prices in the coming years.

The article Silver Companies Ready to Launch originally appeared on Fool.com and is written by Usman Ghani.

Usman Ghani has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Usman is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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