I think it’s a pretty fair assessment that the precious metals sector hasn’t exactly been super hot in 2023. If we’re being honest, though, just about everything seems to have taken a back seat to the AI boom.
That said, there are opportunities to be found in just about any market sector—if you can find them, because, sadly, some of the best opportunities out there often go overlooked.
The opportunities I’ll be shedding light on in today’s list comprise precious metals and mineral stocks. Alright… gold, silver, copper… so what?! Well, these appear to be trading well below their intrinsic values, thereby paving the way for their respective potential price upsides.
These stocks are each inexpensive, have a low volatility risk, and show solid and sustainable balance sheets. Let’s not forget that the Street’s best analysts are also on board.
Silvercrest Metals Inc (SILV)
SilverCrest Metals Inc. (SILV), a Canadian-based producer of precious metals, specializes in acquiring, exploring, and developing high-value ventures while operating several silver-gold mines across the Americas. SILV’s primary focus centers on the Las Chispas Operation in Sonora, Mexico, which is approximately 112 miles northeast of Hermosillo. The property encompasses around 693.8 acres and comprises 28 mining leases for SILV. The El Picacho Property, located about 52.8 miles northeast of SILV’s Las Chispas Project, also encompasses 17,451.1 acres across 11 projects. Meanwhile, SILV’s Cruz de Mayo property, located in the State of Sonora, Mexico, comprises two leases: “Cruz de Mayo 2” and “El Gueriguito.” SILV manages other projects as well and trades at a reasonable price.
SILV’s stock is down year-to-date by 22% and is trading near the bottom of its existing 52-week price range. With a 0.84 beta score and a remarkably low D/E (equity debt) measure of 0.09%, SILV has a positive ROE (return on equity) and an operating free cash flow of $89 million. For its Q2 2023 earnings call, SILV beat analysts’ EPS and revenue estimates by margins of 0.78% and 22.60%, respectively; at the same time, it revealed year-over-year growth in net income (+146.77%), EPS (+166.67%), and operating income (+1,206.58%). For the current fiscal quarter, SILV is projected to report $43.5 million in sales at $0.10 per share. With a 10-day average volume of roughly 823 thousand shares, SILV has a median price target of $7.46, with a high of $7.65 and a low of $5.50; this presents a potential price jump of over 63%.
A-Mark Precious Metals Inc (AMRK)
A-Mark Precious Metals, Inc. (AMRK) is a fully integrated precious metals company, offering a wide range of precious metals and related products to both wholesale and retail customers. AMRK operates through 3 segments: Wholesale and Ancillary Services, Direct-to-Consumer (including its subsidiaries JM Bullion and Goldline), and Secured Lending (through its subsidiary Collateral Finance Corporation). AMRK’s diversified approach and role in the growing interest in precious metals as a hedge against economic uncertainties make its stock an attractive option for investors looking to tap into the sector. Its versatile operations and strong portfolio position are compelling, and AMRK pays a nice dividend, which can’t hurt.
AMRK is down slightly year-to-date by 1.01% and is currently trading around the middle of its high-low range. With an incredibly low 0.05 beta, AMRK carries a positive 20/200 day SMA (simple moving average), a 28.75% ROE, a P/S (price to sales) ratio of 0.09x, and a P/B (price to book) ratio of 1.35x. For its Q2 2023 earnings, AMRK reported revenue of $3.16 billion vs. $2.31 billion as expected by analysts, a whopping 36.85% win. AMRK also posted year-over-year growth in revenue (+50.98%), net income (+12.05%), and EPS (+11.76%). For the current fiscal quarter, AMRK is expected to report $2.2 billion in sales at $1.50 per share and has a 3-5 year EPS growth rate of 131.40%. AMRK has an annual dividend yield of 2.33% and a quarterly payout of 20 cents ($0.80/year) per share. With a 10-day average volume of approximately 285 thousand shares, AMRK has a median price target of $55, with a high of $66 and a low of $45; this indicates the possibility of a 92% price leap from its current trading position.
Golden Minerals Co (AUMN)
Our last name featured on today’s list is very much “under the radar” right now and only has room to skyrocket. Golden Minerals Company (AUMN) is a dynamic gold and silver producer with a strategic focus on the Rodeo, Velardena, and Yoquivo properties in Mexico, as well as the El Quevar silver project in Argentina. Committed to growth, AUMN actively acquires and advances its mining properties in Mexico, Nevada, and Argentina. With a diverse portfolio covering various aspects of the precious metals industry and extensive exploration initiatives, AUMN is an enticing investment opportunity for those seeking exposure to the gold and silver markets, backed by its strategic operations and expansion potential.
One thing I didn’t mention above is how damn cheap AUMN’s stock is right now; just another drop in the positive bucket. Trading around the very bottom of its existing range, AUMN is down year-to-date by 90.01%, has a 0.79 beta score, and has a flattering MRQ (most recent quarter) D/E figure of 5.35%. AUMN has a forward P/E (price to earnings) ratio of 0.91x, a P/S ratio of 0.28x, and a P/B ratio of 1.04%. During its Q2 2023 earnings report, it fell short of estimates but posted year-over-year growth in net income (+47.10%), net profit margin (+36.97%), and operating income (+54.93%). For the current quarter, AUMN is projected to show $807 thousand in sales, with a 3-5 year EPS growth rate of 19.8%. With a 10-day average volume of roughly 103 thousand shares, AUMN has a median price target of $11.36, with a high of $12.50 and a low of $9, which suggests a gargantuan 1,723% potential increase from its current price.
and then