10 Best Silver Mining Stocks to Buy Right Now

6) Osisko Gold Royalties Ltd (NYSE:OR)

Average Upside Potential: 18.3%

Number of Hedge Fund Holders: 17

Osisko Gold Royalties Ltd (NYSE:OR) is engaged in acquiring and managing precious metal and other royalties, streams, and other interests in Canada and internationally. It mainly explores precious metals, such as gold, silver, diamond, and others. The company owns a 100% silver stream on the Mantos Blancos mine.

Wall Street analysts are optimistic about Osisko Gold Royalties Ltd (NYSE:OR)’s 100% ownership of silver stream on the Mantos Blancos mine, through Osisko Bermuda. Under this stream, Osisko Bermuda is expected to receive refined silver equal to 100% of the payable silver from the Mantos Blancos mine until 19.3 million ounces have been delivered (As of September 30, 2024, 6.2 million ounces have been delivered), after which the stream percentage will be 40%.

With respect to the guidance of 2024, Mantos Blancos remains focused on reliably achieving the installed capacity of 20,000 tpd. Osisko Gold Royalties Ltd (NYSE:OR) continues to execute a plan to address plant stability, including improved maintenance and optimization of the concentrator and tailings system.

Also, Osisko Gold Royalties Ltd (NYSE:OR) owns a silver stream referenced to 87.5% of the Gibraltar copper mine’s production, held by Gibraltar Mines Ltd and located in British Columbia, Canada. The stream was amended, which increased the refined silver to be delivered from 75% to 87.5% of the payable silver production. Once a total of 6.3 million ounces of silver have been delivered, the refined silver to be delivered is expected to be reduced to 30.625% of the payable silver produced at Gibraltar thereafter. As of September 30, 2024, 1.4 million ounces of silver were delivered under the stream agreement.

Jefferies Financial Group upped its price objective on the shares of Osisko Gold Royalties Ltd (NYSE:OR) from $19.00 to $22.00, giving a “Buy” rating on 4^th October. Heartland Advisors, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:

“By contrast, Osisko Gold Royalties Ltd (NYSE:OR) is a successful holding which we exited this year because its grid score deteriorated. As interest in gold has grown, shares of the company, which acquires and manages precious metal royalties worldwide, appreciated substantially. However, production difficulties at one of their key producing mines surfaced, thus reducing our estimates of earnings and cash flows. Together these increased the risk while lessening the reward potential for Osisko, causing our valuation of the company to fall, and putting it at the bottom of the mining stocks in our portfolio. With a price to cash flow ratio of close to 20X and the grid score deteriorating to only 5 of 10, we believed there were better values elsewhere.”