10 Best Silver Mining Stocks to Buy Right Now

7) First Majestic Silver Corp. (NYSE:AG)

Average Upside Potential: 8.02%

Number of Hedge Fund Holders: 14

First Majestic Silver Corp. (NYSE:AG) is engaged in the acquisition, exploration, development, and production of mineral properties with an emphasis on silver and gold production in North America.

Wall Street analysts are optimistic about First Majestic Silver Corp. (NYSE:AG)’s future growth prospects. This optimism primarily stems from the recent definitive merger agreement with Gatos Silver, Inc., according to which the former will acquire all of the issued and outstanding common shares of the latter. This transaction consolidates 3 world-class, producing silver mining districts in Mexico under 1 banner. Notably, Cerro Los Gatos, San Dimas, and Santa Elena collectively offer the foundation of the diversified, intermediate primary silver producer. Gatos is expected to immediately contribute an annual FCF of ~US$70 million to the combined entity.

The acquisition of Gatos Silver is a compelling and transformative transaction as this enhances First Majestic Silver Corp. (NYSE:AG)’s operating platform via the addition of 70% of Cerro Los Gatos, which is a high-quality, long-life, unencumbered, FCF-generating asset in the mining-friendly state of Chihuahua, Mexico. How will First Majestic Silver Corp. (NYSE:AG)’s shareholders benefit? This acquisition strengthens the expected annual attributable production by ~6 million ounces of silver and 9 million ounces of silver equivalent based on Gatos’ 2024 production guidance. Also, the acquisition will be accretive on all key metrics such as NAV, cash flow, production, and Mineral Reserves.

Moving forward, First Majestic Silver Corp. (NYSE:AG)’s portfolio of high-quality silver mining assets is expected to act as a principal tailwind. As per Wall Street analysts, the shares of the company have an average price target of $7.27.