In this article, we will discuss the 5 Best Silver Mining Stocks to Buy Today. If you want to read our analysis of the silver market, you can head on to the 10 Best Silver Mining Stocks to Buy Today.
5. MAG Silver Corp. (NYSE:MAG)
Number of Hedge Fund Holders: 12
Headquartered in Canada, MAG Silver Corp. (NYSE:MAG) is involved in development and exploration activities. The company is concerned with securing access to district-scale projects, mainly in the Americas, and exploring and developing mines. Its primary business comes from the Juanicipio Project, located in Mexico.
The construction work and upgradation of the electric grid systems were completed last month on the company’s Juanicipio Project. MAG Silver Corp. (NYSE:MAG) is expected to ramp up production at the site during Q4 2022. MAG Silver Corp. (NYSE:MAG) owns a 44% stake in Juanicipio Mine, and the site is expected to produce over 11 million oz of silver and 44k oz of gold annually.
MAG Silver Corp. (NYSE:MAG) output of silver and gold will increase significantly in 2023 with the addition of the production from the mine, which can prove to be a catalyst for earnings growth for the company. The stock of the company is down 19.6% YTD as of October 20, 2022, which presents an attractive entry point for long-term holders as the company ramps up production in 2023 to become a significant silver mining company.
Sprott Asset Management held the highest stake in MAG Silver Corp. (NYSE:MAG) at the end of the June quarter, with an investment value of approximately $62 million in the company. 12 hedge funds are currently bullish on MAG Silver Corp. (NYSE:MAG) as per Insider’s Monkey database.
4. Coeur Mining, Inc. (NYSE:CDE)
Number of Hedge Fund Holders: 14
With its origins in the United States, Coeur Mining, Inc. (NYSE:CDE) is a blooming global precious metals producer which is engaged in the business of development, exploration, and extraction of precious metals, including Silver, Gold, lead, and zinc. The company has five operations segments: Palmarejo, Kensington, Silvertip mines, Rochester, and Wharf.
The company recently announced the sale of its interest in Crown and Sterling projects in Nevada at a cash consideration of $150 million and a deferred cash payment of $50 million, which it will utilize for the expansion of the Rochester mine in northern Nevada. The company’s stock has performed well in October and is up 16.5% since the start of this month as of October 20, 2022. Coeur Mining, Inc. (NYSE:CDE) has a strong liquidity position and has sufficient capital available as it continues to implement its expansion plans, which will drive earnings growth in the future.
At the end of Q2 2022, D E Shaw came out to be the fund with the largest holding in the company. The fund owned 5,363,437 shares of Coeur Mining, Inc. (NYSE:CDE) with an investment value of over $16 million in the company. As per Insider’s Monkey database, 14 hedge funds owned stakes in Coeur Mining, Inc. (NYSE:CDE) at the end of the second quarter.
3. Hecla Mining Company (NYSE:HL)
Number of Hedge Fund Holders: 16
Hecla Mining is engaged in the business of mining essential precious metals since 1981. The company has ownership and stakes in mines across Alaska, Idaho, Quebec, Canada, and Yukon Territory. The company also has exploration complexes in key silver and gold mining regions across North America.
Hecla Mining Company (NYSE:HL) remains the biggest silver mining company operating in the US and accounts for approximately a third of all the silver produced in the USA. The management continues to execute on its strategic plans, and earlier in September, the company completed the acquisition of Alexco Resource Corp. The company has increased its silver production by over 25% during the past decade and is on the path to becoming the largest silver producer in Canada.
Hecla mining’s stock has been performing well after the company increased its full-year guidance of silver production to 13.6 million – 14.1 million oz and gold output in the range of 519K-536K oz. The company also pays dividends to investors and has a dividend yield of 0.55%.
As per Insider’s Monkey database, 16 hedge funds had stakes in Hecla Mining Company (NYSE:HL) at the end of the June quarter. Renaissance Technologies was the most bullish fund on the company’s stock, with a total holding of 5,754,710 company stocks at the end of Q2 2022.
2. Pan American Silver Corp. (NASDAQ:PAAS)
Number of Hedge Fund Holders: 18
Founded in 1994 and headquartered in Canada, Pan American Silver Corp. (NASDAQ:PAAS) is an industrial and precious metals mining company operating in Latin America. It is amongst the largest silver producers in the US. The company owns mines in Canada, Peru, Argentina, Bolivia, and Mexico.
The company recorded a silver production of 4.5 million and a gold output of 128.3K ounces during the second quarter ending in June. On October 14, Don Demarco, an analyst at National Bank, reduced his price target on the company’s stock to C$31.50. The analyst currently has an Outperform rating on the stock.
Pan American Silver Corp. (NASDAQ:PAAS) share performance has been underwhelming in 2022, and the stock has declined by over 34% in the current year as of October 20, 2022. The company remains a market leader in the sector and has a robust balance sheet position, with net cash of $241.26 million. Pan American Silver Corp. (NASDAQ:PAAS) offers an attractive dividend yield of 2.51%.
At the end of the quarter ending June 2022, Slate Path Capital was the leading holder of the company’s stock, with a holding of 3,888,000 shares. As per Insider’s Monkey database, 18 hedge funds owned stakes in Pan American Silver Corp. (NASDAQ:PAAS) at the end of the second quarter.
1. Wheaton Precious Metals Corp. (NYSE:WPM)
Number of Hedge Fund Holders: 27
Wheaton Precious Metals Corp. (NYSE:WPM) is among the leading precious metals streaming companies. The company holds 14 development-stage projects and 21 operational mines.
On September 12, Emily Chieng, an analyst at Goldman Sachs, started coverage of the company with a price target of C$53. The analyst believes that the company will continue to generate strong profitability in the coming quarters resulting in increased free cash flow, which will increase the chances of gaining a high return on capital for the investors.
Wheaton Precious Metals Corp. (NYSE:WPM) has been growing its dividends over the past three years and currently offers a dividend yield of 1.88% to investors. The company’s stock is down 23.91% YTD as of October 20, 2022, and is a good entry point for long-term investors.
In its Q2 2020 investor letter, First Eagle Investment Management, an asset management firm, highlighted a few stocks, and Wheaton Precious Metals Corp. (NYSE:WPM) was one of them. Here is what the fund said:
The strength in the price of gold was generally supportive of gold-related equities whose performance historically has been leveraged to the gold price. One such example is Wheaton Precious Metals, a Canadian streaming company that maintains, in our view, a high-quality, low-cost portfolio of precious metal purchase agreements that is well diversified across mining partners, geographies, and metal types. Despite pandemic-related suspensions of six of its mining assets, Wheaton posted a 50% year-over-year increase in operating cash flow for the first quarter, which allowed the company to reduce its net debt while raising its quarterly dividend payment.
First Eagle Investment Management held the highest stake in the company at the end of Q2 2022, with a total investment value of over $613 million in the company. According to Insider’s Monkey database, 27 hedge funds owned stakes in Wheaton Precious Metals Corp. (NYSE:WPM) at the end of Q2 2022.
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