5 Silver Mining Stocks Trading at Cash Flow Discounts

The silver mining stocks we have dug up trade below their peer average Price to Cash Flow (P/CF)

SmallCapPower | August 13, 2018: Like gold, silver prices have been depressed recently, falling 10% year to date. However, the lack of attention may create a buying opportunity before the price rebounds. Today we have discovered five silver mining stocks that trade below their average 2019 P/CF of 6.1x.

Coeur Mining Inc. (NYSE:CDE) – $6.47

Coeur Mining is a gold and silver producer. The Company has five wholly-owned mines in North America. Its flagship assets include the Palmarejo silver-gold complex in Mexico, the Silvertip silver-zinc-lead mine in British Columbia, the Rochester silver-gold mine in Nevada, the Kensington gold mine in Alaska, and the Wharf gold mine in South Dakota. The Company also has a silver streaming agreement in place and several interests in precious metal exploration projects. On August 2, 2018, Coeur Mining announced that it had entered an agreement to acquire Northern Empire Resources for $117M.

  • Market Cap: $1,182.2 Million
  • Price / Cash Flow Per Share 2018: 5.7x
  • Price / Cash Flow Per Share 2019: 5.5x

Avino Silver & Gold Mines Ltd. (TSX:ASM) – $1.33

Avino operates two mines in Mexico with a gold project under development in British Columbia. The Company’s Mexican property consists of approximately 20 mineral concessions, totaling more than 1,000 hectares. Its Canadian Bralorne project is currently undergoing drilling to expand and better define current resources. As of October 2016, the project had Measured and Indicated 91,528 Au oz, with 83,000 Au oz Inferred. In 2017, the Company had total silver equivalent production of 2.7M oz.

  • Market Cap: $74.2 Million
  • Price / Cash Flow Per Share 2018: 4.9x
  • Price / Cash Flow Per Share 2019: 5.4x

Hochschild Mining PLC (OTCPK:HCHDF) – $2.26
Silver – Gold

Hochschild Mining is a gold and silver producer focused on South American mining properties. It has three operating mines (Arcata, Pallancata and Inmaculada) located in southern Peru and one operating mine (San Jose) located in Argentina. In 2017, Hochschild produced 19.1 million attributable ounces of silver and 254.9 thousand attributable ounces of gold, for a total of approximately 38.0 million attributable silver equivalent ounces or 514,000 gold equivalent ounces. As of December 31, 2017, The Company had 2P reserves of 7.6M tonnes.

  • Market Cap: $1,155.1 Million
  • Price / Cash Flow Per Share 2018: 3.8x
  • Price / Cash Flow Per Share 2019: 3.8x

Excellon Resources Inc. (TSX:EXN) – $1.21

Excellon Resources is a Canada-based mining company operating in 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 currently being mined. Excellon’s 100%-owned Platosa Mine in Durango has been Mexico’s highest-grade silver mine since production commenced in 2005.

  • Market Cap: $119.3 Million
  • Price / Cash Flow Per Share 2018: 3.5x
  • Price / Cash Flow Per Share 2019: 3.4x

Americas Silver Corp. (TSX:USA) – $3.30

Americas Silver Corporation is engaged in the acquisition, exploration, development and exploration of mineral resource properties in Mexico and the United States. It currently has two silver operating assets and one ongoing development project. Its primary assets are the operating Galena Mine and Mill, the Coeur Mine and Mill and the Caladay Zone. Its newly-acquired San Rafael project, financed by Glencore, completed construction in late 2017 and is ramping up on schedule for commercial production in late 2018.

  • Market Cap: $140.8 Million
  • Price / Cash Flow Per Share 2018: 3.2x
  • Price / Cash Flow Per Share 2019: 2.2x

Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.

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