In this article, we will be looking at the 5 best silver mining stocks to invest in. If you want to see our detailed analysis of the precious metals industry, go directly to the 10 Best Silver Mining Stocks to Invest In.
5. SSR Mining Inc. (NASDAQ: SSRM)
Number of Hedge Fund Holders: 16
SSR Mining Inc. (NASDAQ: SSRM) acquires and develops precious metal resource properties in Turkey and the Americas. The company focuses on silver, gold, lead, and zinc deposits, and ranks 5th on our list of the best silver mining stocks to invest in.
This May, National Bank raised its price target on SSR Mining Inc. (NASDAQ: SSRM) to $28.95 while retaining its Outperform rating on the stock. In the first quarter of 2021, SSR Mining Inc. (NASDAQ: SSRM) had an EPS of $0.47, beating estimates by $0.08. The company’s revenue was $369.33 million, up 124.79% year over year and beating estimates by $40.66 million, and it has a gross profit margin of 51.67%.
By the end of the first quarter of 2021, 16 hedge funds out of the 866 tracked by Insider Monkey held stakes in SSR Mining Inc. (NASDAQ: SSRM). The total value of their stakes was roughly $178 million. This is compared to 18 hedge fund holders in the previous quarter with a total stake value of about $237 million.
Palm Valley Capital mentioned SSR Mining Inc. (NASDAQ: SSRM) in its first-quarter 2021 investor letter. Here’s what they said:
“As precious metals and precious metal miners underperformed during the quarter, several of the mining stocks on our possible buy list became more attractively priced. After declining 33% from the beginning of the year, we purchased SSR Mining, an intermediate gold company with four producing mines located in the United States, Turkey, Canada, and Argentina. In 2021, the company expects to produce 720,000 to 800,000 gold-equivalent ounces with all-in sustaining costs of $1,050 to $1,110 per ounce. At current gold prices, we expect SSR Mining to generate meaningful free cash flow this year, adding to its cash balance. Currently, the company’s balance sheet is very strong and liquid with $470 million in net cash, $1.2 billion in net working capital, and $3.9 billion in tangible book value. We were happy to purchase SSR Mining at a discount to our valuation of its net assets. In addition to being cheap, we think it’s a nice inflation hedge.”
4. iShares Silver Trust (NYSE: SLV)
Number of Hedge Fund Holders: 25
IShares Silver Trust (NYSE: SLV) is an exchange-traded fund managed by iShares Delaware Trust Sponsor LLC. The fund invests in commodity markets and silver, and seeks to track the daily performance of the silver bullion. It ranks 4th on our list of the best silver mining stocks to invest in.
This May, silver ETFs including iShares Silver Trust (NYSE: SLV) were reported to have outperformed all other ETFs in light of rising silver prices. The assets under management held by iShares Silver Trust (NYSE: SLV) are worth $14.77 billion. The fund’s price returns in the past year were up 46.92%, versus the S&P 500’s +39.05%. The total returns for iShares Silver Trust (NYSE: SLV) in the past year were up 46.92% as well, versus the S&P 500’s 10.4% increase. It has also gained 43.99% in the past year.
By the end of the first quarter of 2021, 25 hedge funds out of the 866 tracked by Insider Monkey held stakes in iShares Silver Trust (NYSE: SLV). The total value of their stakes was roughly $208 million. This is compared to 28 hedge fund holders in the previous quarter with a total stake value of about $199 million.
3. Pan American Silver Corp. (NASDAQ: PAAS)
Number of Hedge Fund Holders: 27
Pan American Silver Corp. (NASDAQ: PAAS) explores and extracts silver, gold, zinc, lead, and copper to process and refine the mineral resources in Canada, Mexico, Peru, Argentina, and Bolivia. The stock ranks 3rd on our list of the best silver mining stocks to invest in.
This June, RBC Capital’s Michael Siperco assumed coverage of Pan American Silver Corp. (NASDAQ: PAAS) with a Sector Perform rating and a $36 price target. In May, Pan American Silver Corp. (NASDAQ: PAAS) announced its quarterly dividend of $0.07, with a 0.97% dividend yield, so the stock can be considered a good option for income investors as well. In the first quarter of 2021, Pan American Silver Corp. (NASDAQ: PAAS) had an EPS of $0.18, missing estimates by -$0.11. The company’s revenue was $368.1 million, showcasing a 2.7% increase year over year, and its gross profit margin is 46.36%.
By the end of the first quarter of 2021, 27 hedge funds out of the 866 tracked by Insider Monkey held stakes in Pan American Silver Corp. (NASDAQ: PAAS). The total value of their stakes was roughly $352 million. This is compared to 27 hedge fund holders in the previous quarter with a total stake value of about $466 million.
2. Wheaton Precious Metals Corp. (NYSE: WPM)
Number of Hedge Fund Holders: 28
Wheaton Precious Metals Corp. (NYSE: WPM) sells precious metals in Canada and internationally. It deals with silver, gold, palladium, and cobalt deposits, and ranks 2nd on our list of the best silver mining stocks to invest in.
This May, National Bank raised the price target for Wheaton Precious Metals Corp. (NYSE: WPM) to $60.31, while retaining its Outperform rating on the stock. Wheaton Precious Metals Corp. (NYSE: WPM) has also gained in light of Q1 adjusted earnings rising from the previous year’s value, and the company also generated about $232 million in operating cash flow in the first quarter. Wheaton Precious Metals Corp. (NYSE: WPM) increased its dividend to $0.14 with a 1.25% yield currently, making it a good choice for income investors. In the first quarter of 2021, Wheaton Precious Metals Corp. (NYSE: WPM) had an EPS of $0.36, higher than the previous quarter’s EPS of $0.33. The company’s revenue was $324.12 million, up 27.21% year over year and also surpassing the $286.21 million revenue value from the previous quarter. The company has a gross profit margin of 76.09% and the stock has gained 0.9% in the past year.
By the end of the first quarter of 2021, 28 hedge funds out of the 866 tracked by Insider Monkey held stakes in Wheaton Precious Metals Corp. (NYSE: WPM). The total value of their stakes was roughly $439 million. This is compared to 34 hedge fund holders in the previous quarter with a total stake value of about $755 million.
1. Newmont Corporation (NYSE: NEM)
Number of Hedge Fund Holders: 43
Newmont Corporation (NYSE: NEM) produces and explores gold, while also exploring for silver, copper, zinc, and lead. The company ranks 1st on our list of the best silver mining stocks to invest in.
On June 23rd, Newmont Corporation (NYSE: NEM) revealed its first Climate Strategy report, making it one of only two such companies in the world that are trying to set climate targets for themselves. In May, Newmont Corporation (NYSE: NEM) was the top gainer on the S&P 500 in light of its acquisition of the remaining 85% of GT Gold Corp. for about $325 million. In the first quarter of 2021, Newmont Corporation (NYSE: NEM) had an EPS of $0.74, missing estimates by -$0.04. The company’s revenue was $2.87 billion, up 11.27% year over year, and it has a gross profit margin of 55.29%. The stock has gained 3.56% in the past year.
By the end of the first quarter of 2021, 43 hedge funds out of the 866 tracked by Insider Monkey held stakes in Newmont Corporation (NYSE: NEM). The total value of their stakes was roughly $994 million. This is compared to 50 hedge fund holders in the previous quarter with a total stake value of about $1.21 billion.
You can also take a look at 10 Best Gold Stocks to Buy in 2021 and 10 Best Precious Metals Stocks To Buy.
