In this article, we will discuss the 10 Best Silver Mining Stocks to Buy Right Now.
Silver’s price saw significant appreciation in 2024, with the precious metal up by over 25% on a YTD basis. Market experts believe that the price appreciation stemmed from its expected high industrial demand, primarily from EV manufacturers. Furthermore, they believe that volatility in the dollar index and heightened geopolitical tensions hinted at a robust appetite for precious metals. Silver has now found its applicability in solar panels for renewable energy, in advanced healthcare, in electronics, and several other technologies. This wide adoption provided support to the precious metal in 2024.
Silver Institute mentioned that silver demand for solar power more than doubled over the previous five years, increasing from 74.9 million ounces in 2019 to an expected 232 million ounces by this year’s end.
Where Is Silver Headed?
Geopolitical concerns, including wars in Ukraine and the Middle East, together with China’s latest measures to fuel its economic recovery, supported much of the silver price rally in the recent past. As per industry experts, expectations of strong demand from the renewable energy sector and electronics should be able to offset the uncertainties surrounding economic and monetary policies in the near future.
Apart from its use as an investment, the precious metal has applications in industrial and medical industries, unlike gold. As per Techopedia, only 10% of gold output is used in industrial use, while more than 50% of silver production is used in industrial applications. As per Silver Institute, record industrial demand and recovery in jewelry and silverware are expected to lift demand to 121 billion ounces in 2024, while mine supply is expected to increase by just 1%. Notably, the exchange-traded products remain on track for their first annual inflows in 3 years. This is because silver’s investment appeal has increased off the back of rate-cut expectations, periods of dollar weakness, and falling yields.
The Silver Institute also highlighted that industrial demand should increase by 7% in 2024 to outpace 700Moz for the first time on record.
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Expectations of Increased Silver Production
The Silver Institute highlighted that, in 2024, global mined silver production is expected to rise by 1% YoY to 837Moz. This is expected to be supported by growth from Mexico, Chile, and the US, which should outpace lower output from Peru, Argentina, and China. The production from Mexico is expected to rise by 10Moz, which equates to 5% YoY, to 209Moz. This should stem from increased mill throughput and grade at Pan American Silver’s La Colorada operation, following the upgraded ventilation infrastructure. Also, the output is expected to be fueled by a recovery in production from Newmont’s Peñasquito mine.
In the release dated 12th November, The Silver Institute also mentioned that recycling in 2024 is projected to grow 5% to a 12-year high. This rise should come from price-sensitive sectors, like a spike in Western Silverware scrap. While industrial recycling also edges higher, the growth here is mainly associated with structural factors.
Amidst these trends, let us now have a look at the 10 Best Silver Mining Stocks to Buy Right Now.
Drills extracting gold from a gold mine, revealing the company’s gold mining operation.
Our Methodology
To list the 10 Best Silver Mining Stocks to Buy Right Now, we used a screener and sifted through several online rankings. After extracting the list of silver mining stocks, we mentioned their upside potential, as of November 18. Finally, the stocks were ranked in ascending order of their hedge fund sentiments, as of Q3 2024.
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10 Best Silver Mining Stocks to Buy Right Now
10) Endeavour Silver Corp. (NYSE:EXK)
Average Upside Potential: 18.7%
Number of Hedge Fund Holders: 9
Endeavour Silver Corp. (NYSE:EXK) is a mining company, which is focused on discovering and mining silver, with projects and operations in Mexico, Chile, and the US.
Industry experts remain optimistic about Endeavour Silver Corp. (NYSE:EXK)’s Terronera Mine project, which is expected to act as a principal growth catalyst. Overall project progress has reached 77% completion, with over $258 million of the project’s budget spent to date (as of Q3 2024). Notably, project commitments totaled $270 million, which equates to 99% of the $271 million capital budget, and remains on track for commissioning near the end of Q4 2024.
During Q3 2024, the Terronera project saw significant progress as the Upper Plant Platform nears completion. Also, surface mill and infrastructure construction reached 90%, further preparing for advancement into operations. Endeavour Silver Corp. (NYSE:EXK) mentioned that focus remains on the Lower Platform, where concrete work is well underway, and the Tailing Storage Facility, with underdrain embankment fill and pipe installation accelerating at a healthy pace.
As per Endeavour Silver Corp. (NYSE:EXK), the tailing filter area, which got turned over to the mechanical contractor, will allow focus on installing at least 1 tailing filter together with the concentrate filter through utilizing an extended work schedule in order to enable initial systems commissioning expected near Q4 2024 end.
As per Wall Street, the shares of Endeavour Silver Corp. (NYSE:EXK) have an average price target of $6.03.
9) Silvercorp Metals Inc. (NYSE:SVM)
Average Upside Potential: 32.2%
Number of Hedge Fund Holders: 10
Silvercorp Metals Inc. (NYSE:SVM) is engaged in the acquisition, exploration, development, and mining of mineral properties. It mainly explores silver, gold, lead, and zinc metals.
Wall Street analysts believe that the company’s growth outlook stems from its acquisition of Adventus Mining Corporation. This acquisition offers immediate asset, geographic, and metal diversification to Silvercorp Metals Inc. (NYSE:SVM). The pro-forma asset portfolio comprises exposure to China and Ecuador, increased gold exposure, and metals (silver, copper, lead, and zinc) which are critical for a low-carbon future.
The addition of the high-margin, advanced El Domo project is expected to significantly enhance Silvercorp Metals Inc. (NYSE:SVM)’s near-term production profile. Also, the key permits have been secured, which include the Environmental License and tailings storage approval. This transaction is accretive on a NAV per share and a Mineral Reserves and Mineral Resources basis. Industry experts believe that increased scale, significantly enhanced growth profile, and a presence in an emerging, mining-friendly jurisdiction should act as principal tailwinds.
The transaction is expected to create a new globally diversified green metals producer. It offers the opportunity for Silvercorp Metals Inc. (NYSE:SVM) to leverage its technical expertise and strong balance sheet to unlock value. What’s in for Silvercorp Metals Inc. (NYSE:SVM)’s shareholders? Industry experts believe that they will get exposure to Silvercorp’s high-quality and profitable silver mines and healthy balance sheet. Also, they will be able to retain participation in future upside from El Domo, Condor, and Adventus’ exploration portfolio.
Wall Street analysts gave an average price target of $5.69 on the shares of Silvercorp Metals Inc. (NYSE:SVM).
8) MAG Silver Corp. (NYSE:MAG)
Average Upside Potential: 14.85%
Number of Hedge Fund Holders: 11
MAG Silver Corp. (NYSE:MAG) is engaged in developing and exploring precious metal properties in Canada. It explores silver, gold, lead, copper, and zinc deposits.
Experts at Wall Street believe that MAG Silver Corp. (NYSE:MAG)’s long-term growth should stem from The Juanicipio mine, which is the company’s primary asset, and the positive outlook on the Silver market. Talking about the operating performance of the Juanicipio mine for 3 months ended September 30, 2024, a total of 331,194 tonnes of ore were mined. This demonstrates a rise of 11% as compared to Q3 2023. These increases in mined tonnages at Juanicipio stemmed from the operational ramp-up of the mine towards steady-state mining and milling targets. Moving forward, the experts believe that operational improvements are expected to be the key factor in the mine’s success.
With respect to the exploration updates on MAG Silver Corp. (NYSE:MAG)’s Juanicipio mine, the underground infill drilling continued in Q3 2024, mainly focused on upgrading mineralization in areas projected to be mined in the near to mid-term. During Q3 2024, 8,248 metres were drilled from underground. During Q3 2024, a total of 332,290 tonnes of ore were processed via Juanicipio plant. The 3% YoY rise was mainly because of the Juanicipio plant operating at nameplate per operating day during 2024.
The silver market continued to demonstrate resilience and potential for growth, which should favourably support MAG Silver Corp. (NYSE:MAG)’s prospects. Its focus on high-grade silver production places it well to capitalize on positive market trends. MAG Silver Corp. (NYSE:MAG) acquired the adjacent Goldstake property, demonstrating potential for exploration expansion. Wall Street believes that this move exhibits the company’s commitment to enhancing the resource base and extending the life of operations.
Analysts at HC Wainwright upped their price target on the shares of MAG Silver Corp. (NYSE:MAG) from $17.00 to $18.00, giving a “Buy” rating on 5th August.
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.
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 4th 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.”
5) Wheaton Precious Metals Corp. (NYSE:WPM)
Average Upside Potential: 23.1%
Number of Hedge Fund Holders: 23
Wheaton Precious Metals Corp. (NYSE:WPM) is primarily engaged in selling precious metals in North America, Europe, and South America. The company produces and sells gold, silver, palladium, and cobalt deposits.
Wheaton Precious Metals Corp. (NYSE:WPM) announced that its wholly-owned subsidiary, Wheaton Precious Metals International Ltd., entered into a definitive Precious Metals Purchase Agreement with Montage Gold Corp. with respect to its Koné Gold Project located in Côte d’Ivoire. Wall Street analysts are optimistic about 2 accretive, precious metals streaming agreements, which include a new stream on Montage’s Koné Project and an amendment to the existing stream on Rio2’s Fenix Project.
Together, these transactions are expected to further diversify strategic partnerships and the portfolio’s geography. Once ramped up, the Koné Project is expected to contribute meaningful near-term production, reinforcing Wheaton Precious Metals Corp. (NYSE:WPM)’s already prominent position as a leader in the sector’s growth landscape.
As per Wall Street analysts, the shares of Wheaton Precious Metals Corp. (NYSE:WPM) have an average price target of $75.00.
4) Hecla Mining Company (NYSE:HL)
Average Upside Potential: 34.6%
Number of Hedge Fund Holders: 26
Hecla Mining Company (NYSE:HL) is one of the largest primary silver producers in the US.
Hecla Mining Company (NYSE:HL)’s focus on its core assets in Canada and the U.S., while, at the same time, avoiding riskier regions like Mexico, exhibits its commitment to sustainable growth and shareholder value. The company continues to prioritize organic growth, operational improvements, and exploration while addressing debt concerns. Wall Street analysts remain optimistic about Hecla Mining Company (NYSE:HL)’s Keno Hill project.
At Keno Hill, Hecla Mining Company (NYSE:HL) already mined over 2.5 million ounces and produced 2.1 million ounces of silver this year. The company continues to prioritize building the foundation for this operation’s future to operate in Yukon successfully. This consists of improving safety and environmental practices and valuing the perspectives of the Yukon Government and the First Nation of Na-Cho Nyäk Dun.
During Q3 2024, the underground drilling continued to intersect high-grade silver mineralization over significant widths and demonstrated the potential for high-grade silver mineralization in the district. With respect to Keno Hill (Yukon Territory), in 2025, Hecla Mining Company (NYSE:HL)’s environmental remediation services group is expected to increase construction activities. This will add incremental demand on Keno Hill’s infrastructure and resources. The company expects to advance permitting, investing in improving safety, environmental practices, and infrastructure, and prioritizing stakeholder engagement.
3) Coeur Mining, Inc. (NYSE:CDE)
Average Upside Potential: 33.1%
Number of Hedge Fund Holders: 28
Coeur Mining, Inc. (NYSE:CDE) explores precious metals in the US, Canada, and Mexico. It mainly explores gold, silver, zinc, and lead properties.
Coeur Mining, Inc. (NYSE:CDE)’s long-term strategic growth objectives should stem from the recent acquisition by its wholly-owned subsidiary of SilverCrest Metals Inc. The acquisition is expected to close in Q1 2025 and should materially enhance Coeur Mining, Inc. (NYSE:CDE)’s cost and cash flow profile and immediately accelerate its balance sheet de-leveraging initiative.
During Q3 2024, the company reduced its outstanding revolving credit facility balance by $50 million to $225 million, resulting in a total liquidity of $222 million, which includes $77 million of cash, and a net debt to EBITDA ratio below 2.0x for the first time in 3 years.
Along with Coeur Mining, Inc. (NYSE:CDE)’s growing silver production from the recently expanded Rochester mine in Nevada and Palmarejo underground mine in northern Mexico, the addition of Las Chispas should result in peer-leading 2025 silver production of ~21 million ounces from 5 North American operations, with ~56% of revenue generated from the US-based mines and ~40% of revenue from silver. Apart from the peer-leading silver production, the combined company is projected to produce ~432,000 ounces of gold next year.
Coeur Mining, Inc. (NYSE:CDE) also added that the combined company will generate ~$700 million of EBITDA and $350 million of FCF in 2025 at lower overall costs and increase the overall margins. BMO Capital Markets upped the price objective on the shares of Coeur Mining, Inc. (NYSE:CDE) from $7.50 to $8.00, giving an “Outperform” rating on 23rd September.
2) Pan American Silver Corp. (NYSE:PAAS)
Average Upside Potential: 23.3%
Number of Hedge Fund Holders: 29
Pan American Silver Corp. (NYSE:PAAS) is engaged in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, and other countries.
Wall Street analysts opine that the long-term growth of Pan American Silver Corp. (NYSE:PAAS) should stem from the La Colorada and Jacobina projects. At the La Colorada mine, in Q3 2024, the new ventilation infrastructure resulted in a 59% rise in silver production and a 26% fall in cash costs compared to Q2 2024. Pan American Silver Corp. (NYSE:PAAS) expects throughput to continue to rise, touching 2,000 tonnes per day by the year-end. At La Colorada, project capital of $3.6 million was focused mainly on exploration and engineering on the Skarn project, and to complete the new ventilation infrastructure for the operating mine.
As of June 30, 2024, at the La Colorada Skarn project, estimated indicated mineral resources saw a significant increase to 309 million ounces of silver, stemming from higher tonnage and higher grades, with the inferred mineral resource now estimated at 59 million ounces of silver. The improvement in the performance at La Colorada should further increase silver production and lower cash costs.
At Jacobina, in Q3 2024, project capital of $2.5 million was deployed towards upgrading the plant facility infrastructure and a study focused on optimizing the mine’s long-term economics and sustainability. This optimization should be released in H1 2025. Pan American Silver Corp. (NYSE:PAAS), in its most recent mineral resource update as of June 30, 2024, more than replaced mine production with new mineral reserves for the 18th year in a row. Furthermore, exploration added 1.2 million ounces of new gold-inferred mineral resource. Pan American Silver Corp. (NYSE:PAAS) expects this is a long-life mine with excellent exploration potential and expects to capture more value from this high-margin operation.
Wall Street analysts gave an average price target of $28.00 on the shares of the company.
1) Royal Gold, Inc. (NASDAQ:RGLD)
Average Upside Potential: 20.0%
Number of Hedge Fund Holders: 30
Royal Gold, Inc. (NASDAQ:RGLD) acquires and manages precious metal streams, royalties, and related interests. The company, through its wholly-owned subsidiary RGLD Gold AG, holds a life of mine purchase and sale agreement for 100% of the silver produced from Zone 5 at Khoemacau.
Khoemacau is a copper-silver mine which is located in the Kalahari copper belt in northwestern Botswana in the Kalahari Desert and is operated by a subsidiary of MMG Limited. MMG aims to expand the total production capacity at Khoemacau to 130,000 tonnes of copper in concentrate per year by building a new 4.5 million tonne per year process plant, increasing Zone 5 output, and developing additional deposits. It expects to start the expansion feasibility study by 2024 end, start construction in 2026, produce the first concentrate in 2028, and reach full capacity by 2029. Notably, any expanded production from the Zone 5 and Mango NE deposits falls in the area of interest covered by Royal Gold’s silver stream.
Royal Gold, Inc. (NASDAQ:RGLD) added that the Khoemacau stream fits into the production profile and is expected to add another component of growth.
In Q3 2024, Royal Gold, Inc. (NASDAQ:RGLD) recognized record total revenue of $193.8 million, comprising stream revenue of $133.1 million and royalty revenue of $60.8 million at an average gold price of $2,474 per ounce, an average silver price of $29.43 per ounce and an average copper price of $4.18 per pound. The growth in total revenue was mainly because of higher average gold, silver, and copper prices compared to the prior period. Given the positive outlook on silver demand, analysts believe that increased silver prices might support the company’s revenue.
Raymond James increased its price objective on the shares of Royal Gold, Inc. (NASDAQ:RGLD) from $184.00 to $186.00, giving an “Outperform” rating on 11th November.
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