The junior silver stocks we’ve excavated have seen their stock prices surge this year as investor interest in precious metals builds
SmallCapPower | September 12, 2019: Gold and silver prices have a high correlation, with silver prices generally moving an amplified amount relative to gold prices. During the past three months, gold is up 13% while silver is up 24%. While a lot of attention has been directed towards gold as it hit US$1,560/oz on September 4, its highest point in more than six years, the silver price has also been on the rise of late, hitting US$19.54/oz on September 4, its highest point in about two years. Today we have discovered four junior silver stocks with sharply rising stock prices on the basis of both year-to-date and 90-day returns.
*Share prices as at September 10, 2019, data obtained from S&P Capital IQ
Silvercorp Metals Inc. (TSX:SVM) – $5.36
Silver
Silvercorp Metals is a Canada-based miner focused primarily on silver assets in China. The Company operates a series of silver/lead/zinc mines, largely concentrated in the Ying mining district in Henan Provence, including SGX, HZG, TLP, Haopinggou (HPG) and the LM mines. On September 3, 2019, Silvercorp announced an updated resource estimate for its GC Mine. Despite mine production depletion, there was a 7% increase in reserve tonnes, compared to the last Mineral Reserve estimate, resulting in a 12-year mine life, an increase of three years. The mine is expected to have an average annual production rate of ~300,000 tonnes with average silver equivalent grades of a~334 g/t for the first six years and then 271 g/t for the remainder of the mine life.
- Market Cap: $911.3M
- 90-Day Return: 81.7%
- YTD-Return: 88.1%
- 90-Day Average Trading Volume: 2,503,000
Pan American Silver Corp. (TSX:PAAS) – $22.77
Silver
Pan American Silver is the second-largest global primary silver producer. The Company owns and operates mines in Mexico, Peru, Canada, Argentina and Bolivia. PAAS also owns the Escobal mine in Guatemala, which is currently not operating. Pan American Silver’s operating properties in Mexico include the La Colorada Mine, Dolores and Alamo Dorado. In Peru, its includes the Huaron Mine and Morococha Mine. And in Bolivia it includes the San Vicente Mine. The Company’s operating properties in Argentina include Manantial Espejo. On September 4, 2019, the Company announced an updated technical report, reporting that its silver reserves were expected to double, and its gold reserves were expected to triple. The increase in resources is due primarily to assets acquired with the Tahoe Resources transaction, which closed February 22, 2019.
- Market Cap: $4.8B
- 90-Day Return: 47.7%
- YTD-Return: 15.3%
- 90-Day Average Trading Volume: 10,306,000
Excellon Resources Inc. (TSX:EXN) – $1.02
Silver
Excellon Resources is a silver producer operating in the Durango and Zacatecas States, Mexico. With about 20,000 hectares of exploration ground surrounding the mine, Excellon is focused on discovering the large-tonnage source of the silver mantos that is currently being mined. Excellon’s 100%-owned Platosa Mine in Durango has been Mexico’s highest-grade silver mine since production commenced in 2005. On August 1, 2019, Excellon announced Q2/19 results, highlighted by revenue of $8.6M on silver-equivalent production of 582,937 oz.
- Market Cap: $112.5M
- 90-Day Return: 42.5%
- YTD-Return: 50.7%
- 90-Day Average Trading Volume: 276,500
Endeavour Silver Corp. (TSX:EDR) – $3.30
Silver
Endeavour Silver is a precious metals mining company that focuses its operations on its three silver-gold mines in Mexico. The Company is currently commissioning its fourth mine and is looking to advance a fifth mine, working towards its goal of becoming a premium senior silver producer. On August 1, 2019, the Company announced Q2/19 financial results, reporting revenue of $29.4M and a net loss of $10.1M. The net loss was due primarily to lower revenue and higher unit costs of production. Revenue decreased 24% due to lower production and lower realized silver prices, partially offset by higher realized gold prices. This follows an announcement from July 10, 2019, when Endeavour said it produced 1,059,322 oz/Au and 9,558 oz/Ag (1.8M oz/AuEq) during Q2/19.
- Market Cap: $453.7M
- 90-Day Return: 36.0%
- YTD-Return: 13.6%
- 90-Day Average Trading Volume: 1,939,000
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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