These are the silver stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in the early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales eventually could produce more profit when it either achieves or returns to profitability.

This company has a dominant position in the silver market, and Thomson Reuters analysts think it could give investors a 42.6% profit over the next year. But silver dividend stocks can still be great income investments in this volatile price environment. Many of the companies listed above haven’t cut their dividends so far this year. In fact, the silver dividend stock with the highest yield on the list – BHP Billiton Plc. – nearly tripled its quarterly dividend, from $0.28 per share to $0.80 in March.

• On top of that, silver itself is essentially a leveraged play on gold.
• 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.
• Even in NYSE, this silver stock commodity trading doesn’t disappoint its investors as it continues to yield high returns.
• Investors now hope that they’ll end up with a huge amount of Verizon stock once their planned acquisition closes.
• Whereas a major or a strong mid-tier producer can weather a data change, a junior can drop in value a significant percentage on small changes (refer to Orezone Gold’s recent news release).

In conclusion, while I personally continue to focus more on gold miners than silver in the short to medium term, there are a few names on this list I think could be solid buys here now or in the future. I think investors should be careful and know the risks of investing in these stocks and use dollar cost averaging to their advantage. I like the company’s growth potential, as it owns a massive silver reserve base (170 million ounces), plus long-term development projects containing an addition 331 million silver ounces in resources. In the short term, the stock could go lower, and I’d wait to see a resolution of the Lucky Friday strike before considering an investment. Great Panther Limited is the last company on the list, with a tiny $300 million market cap.

I was expecting a strong quarter from Hecla given its solid Q3 production results (which I covered in detail here), but results exceeded expectations. As you can see, six of the eight silver stocks listed above are down so far this year. Their weak performances are largely due to extreme volatility in silver prices in 2017, which have seen three sharp corrections so far this year… Hecla’s stock is down approximately 19% since article publication.

Wheaton Precious Metals (TSX:WPM,NYSE:WPM)

I’m not sure if they need a final feasibility study, or which permits are outstanding. They claim that it is construction ready, but they are not showing a timeline to production, which is what most construction ready projects provide. They have used a lot of creative financing to purchase the mine and get it into production. The key is going to be exploration and production growth, as well as higher gold prices. It appears that the best time to buy producers was in January 2016, when the HUI was down to 100. However, it’s still early and today’s entry prices offer a lot of value.

Santa Ana will take 18 months and $70 million to begin production of 5 million oz annually, if they get their mining rights back. The cash costs at Santa Ana are projected to be about $8 per oz. It’s amazing how valuable a mining company could become when it owns large profitable projects. There are many development stocks today with solid projects. The smart play is to watch these stocks and see who is going to get financing. Of course, the longer you wait, the higher your entry price will be.

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. In addition to the Excel spreadsheet above, this article covers our top 5 silver stocks today. The companies analyzed primarily focus on silver, but are also engaged in mining of other metals such as gold or zinc. That said, it is a highly profitable company with remarkable yields in the long run.

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For example, in Q3, Endeavor’s all-in sustaining costs fell 24% to $11.47 per ounce. With silver prices north of $19 per ounce, the company produced solid operating cash flow of $17.8 million and EBITDA of $10.8 million. Its cash balance grew by $8.32 million and working capital rose to $91.9 million, so Endeavor has a healthy cash position and also has zero long-term debt.

Arizona Silver Exploration (TSXV:AZS)

The company currently operates three mines in Mexico and has several other silver mines under development. First Majestic also operates the Jerritt how to do company analysis Canyon Gold Mine in Nevada. There are only 15% insiders, so I expect Sandspring to get taken out by a larger company once gold prices rise.

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Also, cheap stocks like this are sitting ducks for a takeover. Their property is on 250,000 acres with a lot of drilling targets. It’s very likely that they will find more gold if they get the chance to explore. Anyone who analyzes gold mining stocks has to be impressed with this stock. They now have 9 million oz of M&I and excellent exploration potential.

I don’t know if they will be a 10 bagger at higher gold prices, but they should come close. Their production is forecasted to grow from 120,000 oz in 2016 to 400,000 by 2021. They have two producing mines in Mexico with all-in costs (free cash flow) around $1100. They have three more mines to build (two in Mexico and one in Canada) and all of them are similar.

First Majestic Silver

With their future cash flow at higher silver prices, they could become a growth company. The only red flag for this stock is high share dilution and perhaps management’s lack of shareholder friendliness, although that might change with higher silver prices. As I touched upon earlier, lower silver prices proved a hurdle for First Majestic in 2017, as did higher cash costs because of a strike at one of its mines. best forex trading app I expect the miner to get back on the growth track in 2018 and beyond as it scales up production and brings down costs, which should also mean a brighter year for the silver mining stock. 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.

Meanwhile, First Majestic also plans to expand production at its La Guitarra mine to 1,000 tons per day, a move expected to double production while also reducing costs. Finally, costs are also expected to fall at best shares to buy La Encantada following the expansion to 3,000 tons per day production. For 2017, I’m expecting slightly higher production and lower cash costs. But this silver mining stock’s growth story lies in what’s to come.

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. Great Panther Silver, meanwhile, is the smallest and probably riskiest of the trio — though it has no debt.

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. Hecla blew past my expectations this past quarter, with a 17% jump in silver equivalent production to 10.3 million ounces, plus a 51% decline in cash costs to $3.68 per ounce. With higher metals prices and lower costs, Hecla had a blowout quarter, with $25.78 million in net income, or $.07 per share, and free cash flow of $27.7 million. With 16+ million ounces of silver production annually and 175.4 million ounces of proven and probable silver reserves, Hecla gives investors big leverage to silver prices.

But the market for silver is smaller than the market for gold, and consequently it tends to experience higher levels of volatility, which may impact the stock prices of silver mining companies. Another risk to investors is that there aren’t many pure-play silver miners in the mining industry. Rather, silver is often one of several different minerals mined by a single company. This means that mining company stocks may be impacted by factors related to materials other than silver. Investors should focus on the role that silver mining plays in a company’s operations before allocating their funds.

The expense ratio is a scant 0.39%, making it a pretty cheap way to get broad silver mining diversification. The only problem is that when you look at the list of names in the ETF, you quickly see that it includes companies like SSR and Coeur, which we already know are more gold miners than silver miners. So a mining ETF is an option, but perhaps not the best way to get direct exposure to silver. With rapid growth rates and high-yielding stocks, the company is surely a profitable pick for investors. China’s premier producer in silver mining, this company has undertaken numerous successful projects in the country with promising results. The Silver Institute has stated that physical investments in silver are expected to reach 257 million ounces this year, which would mark the highest value in six years of investing in the metal.