Is Hecla The Best Silver Stock To Own In 2017? NYSE:HL

But after this initial move, quality junior mining stocks tend to catch up and surpass the gains of their larger counterparts. Starting from a much smaller base, their have the potential for much higher percentage gains. Similar to gold stocks, I target silver miners that have low cash operating costs and low all-in sustaining costs, a solid balance sheet with low leverage, strong development projects or strong exploration upside. Silver stocks aren’t as popular as gold stocks among dividend investors, which isn’t really surprising given that a greater number of precious metal companies deal primarily in gold and most gold stocks pay a dividend.

However, its business model also makes it vulnerable to operational problems and cost overruns. Mining issues, management missteps, and exposure to other commodities can weigh on the performance of a silver mining company’s stock. So, if you are ready to start investing in junior mining stocks, here are some of the top performing junior gold stocks and junior silver stocks in 2016. I imagine many of the stock picks on this list will also make the list of best junior miners for 2017. The gains listed here are over the past 26 weeks, as of July 15, 2016. Once this ratio climbs above 0.32, gold stocks will no longer be offering such clear value.

  • Gold Mountain Mining Corporation is exploring and developing the 100% owned Elk Gold Project, located in southern British Columbia, 45 km southeast of Merritt.
  • As a result, silver mining stocks and silver-focused ETFs could be attractive additions to many portfolios.
  • While silver prices have pulled back from the highs they hit over the summer, a number of silver stocks have outperformed the markets in 2016.
  • You get a lot of leverage to silver with these stocks, making them intriguing options for silver bulls.

In particular, Claude benefited in a big way in 2015 from the earlier-than-expected commercial mining expansion of the Santoy Gap within its Seabee project, which wound up adding about 20,000 ounces of extra gold production per year. Purchasing Claude gives Silver Standard Resources access to about $20 million in annual free cash flow from Seabee, as well as multiple expansion opportunities within the Santoy Gap and the adjacent Fisher property. forex broker review Our list of best silver stocks are selected by leading 1-year performance through February 25, 2022. We reviewed 9 silver mining companies, some of which are involved in the mining of other metals and materials. As with any other investment security, it’s important to understand that past performance is no guarantee of future results. Silver as an investment has many of the same potential benefits as investing in gold or other precious metals.

Gold Resource Corp. (NYSE:GORO)

With the stock off of its highs, now is a good time to do a deep dive. But only if you are willing to take on a little more risk, since the Lucky Friday strike adds a lot of near-term uncertainty here. It should have plenty of leeway to achieve its goals, too, since long-term debt makes up just 2.5% of the capital structure — even less than First Majestic. With production growth on the horizon, Pan American Silver is worth a deep dive now while the shares are still off recent highs. If you are looking for silver exposure, First Majestic should be top of your list. On one hand, Great Panther really mucked up a good year by completing a $29.9 million deal in July where it sold nearly 18.7 million shares, each with accompanying warrants that are exercisable at $2.25 per share.

HL’s Q results and earnings call noted that the miner beat EPS estimates but missed the year-over-year revenue estimate. Great Panther Limited is the last company on the list, with a tiny $300 million market cap. It only has two mines, and all-in sustaining costs are on the high side. That makes it a marginal miner that needs relatively high silver prices to make money. Which TSXV-listed junior silver stocks are the top performers so far this year? While we don’t recommend investing in just any silver stock with a big dividend, one of the firms listed above is on Money Morning Chief Investment Strategist Keith Fitz-Gerald’s radar.

Without further ado, let’s look at the 10 best silver mining stocks to invest in. These stocks have been selected based on hedge fund sentiment, fundamentals, analysts’ ratings, and growth potential based on core business strengths. The huge swing in silver prices is due to a strengthening U.S. economy, which makes investors less interested in safe-haven investments like silver and silver stocks. The U.S. Department of Labor reported that the country’s unemployment rate sank to a 16-year low of 4.3% in May. There were also 138,000 jobs added last month, marking a 1.6% jump in year-over-year jobs growth.

The company’s exposure to silver is the highest among its streaming and royalty competitors. Pan American is among the largest primary silver producers in the world, and has paid a dividend every year since 2010. Its dividends, however, have fluctuated wildly over the years, including a dramatic cut in 2015 when the company needed money for project expansions. And while all of that works itself out, higher gold prices will help keep the business running.

Our list of the best silver stocks of the year on the TSXV can be viewed here. Cheap and profitable mining companies will not only deliver real returns, their market values will also appreciate as precious metal prices will go up during runaway inflation. Our list of the best junior silver stocks of the year on the TSXV can be viewed here. And that’s an important number to watch, even if higher precious metals prices help to offset the blow of weak production. On that score, First Majestic, Pan American, and Hecla all have very interesting stories to tell investors. With varying degrees of exposure to silver, each is worth a deep dive if you are looking for the best silver mining stocks to buy in 2017.

Here Are 10 “One-Click” Ways to Earn 10% or Better on Your Money Every Quarter

Smart gold investors understand economic cycles very well, such as the one below. With stocks and real estate and frothy levels, 2016 has been the ideal time to buy beaten down mining stocks at deep discounts. In addition to the Excel spreadsheet above, this article covers our top 5 silver stocks today. The companies analyzed primarily alpari review focus on silver, but are also engaged in mining of other metals such as gold or zinc. You can buy coins, silver-linked ETFs, silver miners, ETFs that track silver miners, or a streaming company like Wheaton Precious Metals. You have to pick the option that’s right for you, but I think Wheaton is the best of the bunch.

Unlike traditional mining companies, Silver Wheaton doesn’t handle the day-to-day rigors of mining silver and other precious metals. It merely hands over large sums of cash to mining companies that are looking to develop a new mine or expand an existing one. In exchange for large sums of capital, Silver Wheaton receives a long-term life-of-mine contract that guarantees the delivery of a percentage of the mined metal(s) at a very advantageous price. During the third quarter, Silver Wheaton reported average cash costs of just $4.51 per silver ounce and $390 per gold ounce. That works out to a more than $11-per-ounce buffer compared to the current price of silver, and well over $700 per ounce in margin buffer to gold’s current spot price.

First Majestic Silver

Based on the trailing two semi-annual payments, the stock yields 3.5%, which is relatively high among silver stocks. This makes Fresnillo an appealing pick within the silver stocks, especially for investors looking for higher income. The first way to get silver into your portfolio is through a direct investment in bullion. If you want to prepare for a situation in which fiat currencies are no longer being used (the zombie apocalypse scenario, if you will), then buying silver coins is the best option. In fact, owning some silver in this way isn’t a bad idea, just in case.

Daily Silver Price Data 1968 – 2021

Cash flow and share issuances will be used to pay the term loan down over time to free up capital for more investments, as needed. It’s a unique model that makes Silver Wheaton more like a specialty finance company — that gets paid in silver and gold — than a miner. Worldwide uncertainty fueled by US President Donald Trump, upcoming elections in Europe and other factors have sent investors flocking to precious metals, which are viewed as safe-haven assets. And of course, some gold– and silver-focused companies have also been benefiting. The data for this article was retrieved on October 16, 2017 using The Globe and Mail’s market data filter.

With production at the Parral mine expected by 2019, the ultimate goal is to build and operate three new mines within the next three years. For these reasons, this is a silver stock worth betting on in 2017. With higher gold prices and new production from the recently acquired Wharf gold mine, Coeur produced $47.8 million in operating cash flow and $14.6 million in free cash flow in Q3. And Coeur has really cleaned up its balance sheet, as it now has $222.5 million in cash and cash equivalents, with $401.7 million in total debt; net debt fell by over $70 million in Q3. With a recent $200 million at-the-market stock offering, Coeur’s net debt position will actually be close to neutral following closing of the offering and redemption of its 7.875% senior notes due 2021. Meanwhile, Coeur continues to trade at a low valuation, as shares trade at an EV/EBITDA of 10.9 and a forward P/E of 12.36, according to Yahoo Finance.

On top of that, silver itself is essentially a leveraged play on gold. The overwhelmingly dominant driver of silver prices is gold price action. So the great majority of contrarian capital flowing into precious metals stocks naturally seeks out the far larger gold miners. Silver stocks tend to fly under the radars of fund managers, creating exceptional opportunities. Just like with gold stocks, I am looking for silver miners with low cash operating costs, a solid balance sheet (low debt, strong net cash and working capital), and strong growth prospects (low-cost silver production). Every year I like to give my top silver stock picks for the upcoming year.

Silver is a precious metal and a commodity with uses in a wide range of industrial applications, such as thermal and electric conductor production, solar power extraction, chemicals, medical equipment, coins, and jewelry. No debt and a potentially huge new mine investment make Great Panther Silver worth a look for those willing to buy a small miner. So there’s a potential upside on production and an opportunity for cost reductions. Now add in the fact that long-term debt makes up just 2.5% of the capital structure. Pan American Silver easily has the foundation to execute its plans and it’s worth a deep look.

Endeavour Silver Corp is a mid-tier precious metals mining company that operates three high grade, underground, silver-gold mines in Mexico. Yet you need to take 2017’s gains in these stocks with a grain of salt, because the explosive returns that they posted last year came only after most of them suffered significant losses the previous year. Biotech struggled in 2016, and seven of the nine biotechs listed trade99 review above saw their share prices decline by at least 25% that year. Dynavax was the big loser, plunging 83%, and that means that investors who bought into the stock at the end of 2015 are still down on their initial investment despite the stock’s huge rebound last year. Sangamo and Ignyta were both down more than 60% in 2016, although the 2017 bounce has given their long-term shareholders solid gains.

The chart below shows the HUI gold bugs index vs. the price of gold. Anything above this level suggests that gold stocks are overvalued relative to gold. Anything below this ratio suggests that gold stocks are undervalued relative to gold.

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