Due to soaring global demand, with a record 1.242 billion ounces bought in 2022 alone, silver has become an increasingly wise investment choice in the precious metals space.
The industrial need has reached an all-time high, driven by EVs, 5G technology, and green infrastructure. Silver price is likely to climb into the year’s end amid expectations of tight supply and a projected 99-million-ounce deficit. This all only boosts the case for silver—not to mention its low pricing.
The bottom line is that silver is still a lucrative option for investors, and analysts agree there should be a welcome spot for the precious metal in our portfolios…
Avino Silver & Gold Mines Ltd (ASM)
Avino Silver and Gold Mines (ASM) presents a compelling investment opportunity with its strong performance in the first half of 2023. ASM reported a remarkable 14% increase in silver-equivalent production compared to the previous year, with silver output rising by 20% and gold surging by an impressive 77%. Although there were some mining-related challenges in lower-grade areas and mill equipment delays, ASM has effectively addressed these issues and anticipates a robust production performance in the second half of the year. Notably, the recent drilling results from the Elena Tolosa area revealed exceptionally wide and high-grade mineralized intercepts of silver, gold, and copper, marking a significant milestone for ASM.
ASM’s stock is currently up year-to-date by 3.79%, has a 0.88 beta score, and is trading near the middle of its existing 52-week range. ASM has a positive ROE (return on equity) and TTM (trailing twelve-month) asset growth of 6.46%. For the current fiscal quarter, ASM is projected to report $13.9 million in sales at $0.02 per share and show a 3-5 year EPS growth rate of 26.8%. With a PEG (price/earnings to growth) ratio of 0.54x and an operating free cash flow of $8.83 million, ASM’s median price target is $1.75, with a high of $2.00 and a low of $1.70. This new range represents the potential for a price upside of over 183%. ASM has 4 strong buy ratings.
MAG Silver Corp (MAG)
MAG Silver Corp. (MAG) offers a compelling investment opportunity with its significant interest in the high-margin underground silver project, Juanicipio, situated in Zacatecas, Mexico. The recent achievement of commercial production on June 1, 2023, marks a pivotal transition for MAG from a developer to a producer. Impressively, ASM’s total silver production was 5,275 thousand silver ounces, 10,639 gold ounces, 3,402 tons of lead, and 5,418 tons of zinc. Notably, silver production surged by an impressive 134% sequentially. The Juanicipio mill operates at around 85% of its 4,000-ton-per-day design capacity, with robust silver recovery consistently exceeding 88%. Anticipated steady production growth through the third quarter of 2023, with the plant reaching full capacity, further boosts MAG’s potential.
MAG’s stock is presently down year-to-date by 26.30% and has a volatility-safe 0.97 beta, with a positive ROE, a positive momentum score, and positive TTM asset growth of 24.16%. With a PEG ratio of 0.98x, MAG has a 1-year EPS growth rate of 410% and shows year-over-year growth in ret income (+75.86%) and EPS (+66.67%). With a 10-day average volume of roughly 985 thousand shares, MAG has an average price
target of $18.19, with a high of $22 and a low of $14.52, indicating a potential price jump as high as 91% from where pricing currently sits. MAG has 9 buy ratings and 2 hold ratings.
Endeavour Silver Corp (EXK)
Endeavour Silver Corp. (EXK) is a compelling investment choice, achieving a 9.5% year-over-year increase in the second quarter of 2023 and producing 2.3 million silver equivalent ounces. With consolidated silver production up by 10% and gold production rising by 6%, supported by improved grades at Guanacevi, EXK anticipates 8.6–9.5 million silver-equivalent ounces for the year. Additionally, the ongoing progress of the
Terronera Project in Mexico is at 30% completion and aims to double EXK‘s production. With its high-grade ore and favorable cost structure, EXK is another compelling opportunity to get in with silver.
EXK’s stock is up slightly by 2.78% year-to-date and has a solid 0.84 beta score. With positive TTM asset growth and a positive ROE, EXK is projected to post $53 million in sales at $0.02 per share for the current quarter. At its last earnings call, EXK beat analysts’ projections on EPS and revenue by margins of 53.06% and 3.72%, respectively. With an operating free cash flow of $32.86 million, EXK has a 10-day average volume of 2.9 million shares and is trading near the bottom middle of its existing range, leaving plenty of room to grow. EXK has a median price target of $5.53, with a high of $8 and a low of $4.13; this suggests that if it hits its high, that’d be a more than 140% price increase. EXK has 4 buy ratings and 2 hold ratings.
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