Silver Outlook 2024

Table of Contents

Silver Price Update: Q1 2024 in Review
Silver Price Update: Q2 2024 in Review
Chen Lin: Silver's Move to US$50 Will be Quick, How I'm Investing Now
Lobo Tiggre: Shopping for Silver Stocks, Watching "Powerful" Gold Mover
Top 5 Canadian Silver Stocks of 2024

Silver Price Update: Q1 2024 in Review

2023 was a relatively lackluster year for silver, which largely traded between US$22 and US$25 per ounce.

The white metal started 2024 on a similar note, with its price remaining fairly rangebound for the first eight weeks of the year. It dropped to US$22.08 on January 21, marking its quarterly low.

Silver started seeing gains in March on expectations that the US Federal Reserve was getting closer to lowering interest rates. Improving sentiment gave precious metals momentum, causing silver to reach its quarterly high of US$25.62 on March 20; it then continued on to an 11 year high of US$29.26 on April 12.

How did the silver price perform in Q1?

As mentioned, rate cut expectations added fuel to the silver price in early March.

These gains were reinforced by positive language following the Fed's March meeting, when the central bank said inflation was continuing to progress toward its target of 2 percent. Even though it was unwilling to commit to dates, the Fed suggested it was done with hikes and was expecting to make three cuts to its benchmark rate in 2024.

Silver price, Q1 2024.

Chart via Trading Economics.

While gold captured attention as it set price records in March and April, silver has produced better returns for investors. In an April 9 email to the Investing News Network (INN), Peter Krauth, editor of Silver Stock Investor and author of "The Great Silver Bull," commented on the white metal's performance during the quarter.

“Silver also typically lags gold, then catches up and surpasses it. We’re starting to see that happen in spades right now. Since the end of February, gold is up about 15 percent, while silver is up about 22 percent," he said.

Krauth emphasized, "Those are breathtaking gains in just a matter of weeks."

According to Krauth, this rise came alongside decreasing inventories at the COMEX, London Bullion Market Association and the Shanghai Gold Exchange, where stockpiles have dropped 40 percent over the past three years.

“The same has happened to silver exchange-traded funds (ETFs) globally. My view is that large silver consumers are buying long contracts and silver ETFs, then taking delivery," he noted.

"That helps explain why the silver price didn’t rise in the face of ongoing deficits. But these inventories are being drained, and I think there may be 12 to 24 months left before they run out."

Industrial demand for silver increasing

Also helping to draw down inventories is industrial demand for silver. The biggest contributing sectors are related to the energy transition, particularly the production of photovoltaics and electric vehicles.

Krauth pointed to the Silver Institute, a top industry association, which is calling for silver to record a structural deficit for the fourth consecutive year in 2024, with shortfalls to continue for several more years.

In its latest World Silver Survey, the Silver Institute states that in 2024, demand for the white metal is forecast to reach the second highest level on record at 1.22 billion ounces, with industrial demand set to see a 9 percent increase to 710.9 million ounces; that would beat out the record set in 2023 at 654.4. million ounces.

India has been a critical driver of demand, importing 94 million ounces of silver in the first two months of 2024, including 71 million ounces in February alone — that represents nearly an entire month of global mine production.

While the Silver Institute notes that demand for silverware and jewelry in India remains strong, it also says there is growing industrial demand as India sees an increasing focus on infrastructure development.

To support local manufacturing, the Indian Ministry of New and Renewable Energy reimposed its Approved List of Models & Manufacturers for solar modules, effective April 1. With the list in place, certain solar projects in the country will be required to use domestically produced photovoltaics.

This comes as new N-type solar cells, which require greater amounts of silver, enter mass production in 2024.

Silver supply unable to keep up with demand

On the supply side, the Silver Institute is predicting a decline of 1 percent in 2024, with 1 billion ounces being made available. Recycled quantities of silver are expected to remain flat at 178.9 million ounces, while the biggest drop is seen coming from mine production, with an estimated total of 823.5 million ounces in 2024.

This differential suggests a widening deficit of 215.3 million ounces, a year-on-year increase of 17 percent.

Silver is primarily produced as a by-product of gold, lead, zinc and copper, with these mines accounting for 595.2 million ounces in 2023. Meanwhile, primary silver mines produced just 235.2 million ounces.

With a contraction in mine output forecast for 2024 and increasing industrial demand over the next several years, the Silver Institute is projecting more tightness over the next few years.

Krauth sees two standout projects set to add millions of ounces over the next year.

“There are two major primary silver projects that stand out. Endeavour Silver (TSX:EDR,NYSE:EXK) is building its Terronera project in Mexico, which will bring about 7 million silver equivalent ounces per year, starting at the end of this year. Then there’s Aya Gold & Silver (TSX:AYA,OTCQX:AYASF), whose Zgounder mine in Morocco is expanding production from about 1.9 million ounces of silver to 8 million ounces, starting with its commissioning in Q2 this year,” he said.

The Silver Institute also sees supply contributions coming from Newmont’s (TSX:NGT,NYSE:NEM) Penasquito mine, which will return to full production in 2024 following strike action in 2023. Meanwhile, Coeur Mining (NYSE:CDE) is expanding its Rochester mine, and Kinross Gold's (TSX:K,NYSE:KGC) Manh Choh project is coming online.

Even with these additions, the Silver Institute sees steep offsets in silver production, including the loss of 17.9 million ounces out of Peru as Hochschild Mining (LSE:HOC,OTCQX:HCHDF) has placed its Pallancata operation into care and maintenance as it waits for permits for its Royropata deposit.

Investor takeaway

Krauth sees strong upside in silver's industrial applications, although he believes many market participants still see it largely as a precious metal. However, attitudes may be starting to change.

This past January, silver producers penned an open letter to the Canadian government, urging it to include the metal on the country's list of critical minerals. While the government won't make a decision until May, silver companies could see new funding options open up if the metal is added, while permitting could be streamlined.

Krauth thinks such a move would boost silver’s status among investors, and is a point to watch in Q2.

“I, along with the entire sector, will be watching closely to see whether silver makes the list or not. If it does, I think that would be a shot in the arm for silver. The broader investment community would pay more attention to silver’s significant structural supply shortages,” he explained to INN.

Krauth wouldn't be surprised to see a pullback in silver this year, but thinks it is in a sustained bull market. He expects the price to continue to hold at US$28, and probably grow to US$30 in the second half of the year.

As silver sees upward momentum going into the next quarter, it may present opportunities for investors who want an alternative to gold, or are keen to take advantage of the white metal’s increasing role as an industrial metal.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Additional information on silver stock investing — FREE

Silver Price Update: Q2 2024 in Review

The silver price saw significant gains through the first half of 2024, hitting levels not seen in over a decade.

After starting the year trading in the US$22 per ounce range, the price of silver saw little change until March, when the white metal began to gain momentum following a US Federal Reserve meeting.

While the Fed left interest rates steady at that time, dovish language provided critical support for silver as investors pushed the price above US$25. Silver continued its upward trend through April and into May, when it climbed above US$32 for the first time since November 2012 and set a year-to-date high of US$32.07 on May 27.

Silver price breaks important US$30 level

A number of factors have been driving the price of silver upward in 2024.

Even though rate cuts from the Fed have yet to materialize, softening interest rates and slowing economic growth have led to greater speculation that at least one reduction will come in the second half of the year.

Silver was initially followed gold higher in the March to May period. However, the gains in silver have outpaced gold nearly two to one in 2024. To date, silver has risen nearly 30 percent, while gold has only gained 15 percent.

Silver price, January 1, 2024, to July 16, 2024.

Chart via Trading Economics.

The pace of these gains has led to improving sentiment among investors. As of April, managed money positions in silver had climbed to their highest level since May 2022, and exchange-traded product holdings rose to their highest since July 2023, as outlined in the Silver Institute’s 2024 World Silver Survey presentation and report.

In an email to the Investing News Network (INN), Silver Institute President and CEO Michael DiRienzo said that the close link between silver and gold has led some investors to use it as a leverage play to gain exposure to gold.

“In addition, silver’s low unit cost and lower entry level have also made it more attractive to retail investors with a limited investment budget,” DiRienzo explained.

This was a point echoed by IndependentSpeculator.com CEO Lobo Tiggre in an interview with INN that took place on July 9. He suggested that even though silver has acted more like an industrial metal over the last several years, 2024 has seen investors once again looking at it for its value as a precious metal.

“That market dynamic has changed, and it’s moving more strongly with gold again as a monetary metal should … I think it's fantastic news for silver — and long-suffering silver bulls out there,” he said.

Industrial silver demand continues climbing in India, China

Improved sentiment has coincided with heightened industrial demand, particularly in the Indian market. Overall, silver demand is projected to grow by 2 percent in 2024, with the Silver Institute forecasting that industrial demand will increase by 9 percent — photovoltaics alone are expected to see a 20 percent gain.

As mentioned, India in particular has upped its silver purchases in 2024. Its imports came to a record 2,295 metric tons of silver in February, nearly outstripping an entire month of global mine supply. Though purchases have waned as prices have risen, the first four months of the year saw India import more silver than it did for all of 2023.

DiRienzo said that while the primary silver demand in India continues to be from the production of jewelry, the precious metal has also benefited from “firmer electrical & electronics demand, thanks to the continued strength in India’s real estate market and rising investment in local infrastructure construction.”

Additionally, he noted that Indian manufacturing of solar cells received additional support as companies reduced their reliance on Chinese manufacturing and diversified their supply lines for solar panels.

India has been the biggest driver in the photovoltaics category as the country continues building up its domestic solar supply chain through efforts such as its Approved List of Models and Manufacturers, which consists wholly of domestic companies. After a pause due to supply concerns last year, the nation's government reinstated the mandate as of April 1 of this year — as a result, government-funded and subsidized solar projects in India must source their solar photovoltaic modules from one of the companies included on the list.

Even so, China remains the global leader in photovoltaics production. And with new N-Type TopCon panels — which require 50 percent more silver — set to become the industry standard, industrial demand is set to rise even further.

Last year, a flagging Chinese economy not only put base metals under pressure, but dragged on silver as well. According to DiRienzo, fiscal stimulus measures implemented by the Chinese government have provided crucial support.

“Expectations on further fiscal stimulus for the Chinese economy led to a sharp rebound in base metal prices during 2024-to-date, which has benefited silver,” he said.

New silver mine supply won't outweigh deficit

While both retail and industrial demand is growing, it’s not just demand driving prices.

Silver is also facing a severe supply crisis as a deficit that began to emerge in 2021 continues to widen, with the Silver Institute forecasting that the deficit will reach 215 million ounces by the end of 2024.

According to the Silver Institute, Mexico and Argentina had steep output declines in 2023, with production falling by 10.9 million ounces and 4.9 million ounces, respectively. The Silver Institute predicts that global production will fall further in 2024 to 823.5 million ounces due to the closure of several mines in Peru.

While it isn’t expected to eclipse these declines, new silver supply is coming online from various sources this year.

The Silver Institute forecasts an increase from Mexico this year now that Newmont’s (TSX:NGT,NYSE:NEM) Peñasquito mine is back at full operating capacity following a strike in 2023. Additionally, Endeavour Silver (TSX:EDR,NYSE:EXK) announced in April that its Terronera project was more than 50 percent complete and on schedule to begin production at the end of 2024. The mine will add 4 million ounces of silver supply to global markets annually.

The US is also increasing its silver output this year. Hecla Mining Company's (NYSE:HL) Lucky Friday mine in Idaho returned to full production in March, while the expansion at Coeur Mining’s (NYSE:CDE) Rochester silver-gold mine in Nevada entered commercial operation at the end of the first quarter. Once fully ramped up, it will be the largest domestic source of silver in the US, processing 32 million metric tons of ore per year.

Aya Gold and Silver (TSX:AYA,OTCQX:AYASF) provided an update on progress at its Zgounder mine expansion in Morocco on July 9, announcing it had made the first silver pour. The company said it remains on schedule for commercial production to begin in Q4. Once fully ramped up, the expanded mine is expected to produce 6.8 million ounces of silver per year, a significant increase from its 2023 output of 1.97 million ounces.

Despite these new and expanded mining operations bringing significant new silver supply to the market, it’s still a far cry from meeting the more than 200 million ounce deficit.

How high can the silver price rise in 2024?

While gold tends to garner more of the media attention, silver has already been a stronger performer in 2024. Since its move began this year, a variety of experts have suggested the white metal has further to go.

In an interview with INN on July 3, Chris Vermeulen, chief market strategist at TheTechnicalTraders.com, suggested that silver is at a multi-year consolidation. He thinks a run over the next few months to US$36 per ounce is a possibility.

Peter Krauth, editor of Silver Stock Investor, told INN on May 24 that silver might experience a slight pullback over the next couple of months, but would likely establish a new floor at US$30. This came to pass as silver traded in the US$29 range in June before stabilizing above US$30 through the first half of July.

“We still have the gold-to-silver ratio somewhere around 75; it's averaged about 55 or 60 over the last few decades, so just on that basis if gold were to stay put, silver has a lot higher to go,” Krauth said.

“Typically when you get the ratio running down, both metals do well, but silver continues to do even better … so look for this to be a really tremendous run over the next months and years," he added.

While this might not be good news for manufacturers that require silver and consumers who buy their products, it's positive news for existing silver investors and new market participants who are looking for opportunities for a safe-haven investment that doesn’t come with the high entry point of gold.

There are also opportunities in silver stocks, which have been undervalued in recent years — in fact, many silver stocks have already seen significant gains this year. For example, silver producer Endeavour Silver and advanced development-stage companies GR Silver Mining (TSXV:GRSL,OTCQB:GRSLF) and Defiance Silver (TSXV:DEF,OTCQX:DNCVF) have all gained more than 100 percent from the start of the year through July 9.

Don’t forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.

Additional information on silver stock investing — FREE

Chen Lin: Silver's Move to US$50 Will be Quick, How I'm Investing Now

Speaking to the Investing News Network, Chen Lin of Lin Asset Management shared his outlook for silver, explaining that the white metal could move quickly to the US$50 per ounce level once market participants realize how large the divide between supply and demand really is.

When asked about the most important drivers for silver right now, he pointed to the solar industry, noting that two to three years ago it was consuming 100 million ounces of silver; that amount rose to 200 million ounces last year.

This year, the Silver Institute is projecting a further 40 million ounces of solar demand, but Lin thinks the sector may end up requiring an extra 100 million ounces, bringing its total usage to 300 million ounces for 2024.

"From all the data I get, it's 100 million ... so from 200 million to 300 million," he said. A new report out of Germany has an even higher projection, forecasting that the solar market could consume 400 million ounces of silver this year.

"My point is that once investors see the huge deficit, they truly see the huge deficit in silver, silver will go to US$50 just like that — just in a heartbeat," Lin said, adding that so far most market participants haven't gotten there.

When asked how he's getting exposure to silver, Lin said he's heavily exposed in the future market. However, he doesn't recommend that path for everyone as the leverage involved can be highly risky.

He's also looking at silver miners, which he believes are cheap. "Silver miners are going to have a huge Q2 — gold miners too, but silver in particular," he said, noting that the average silver price will be much higher than it was in Q1.

"If they are not making money at US$20 (silver), at US$30 suddenly there's a huge profit," he said.

Watch the interview above for more from Lin on his outlook for silver and ways to invest.

Don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Additional information on silver stock investing — FREE

Lobo Tiggre: Shopping for Silver Stocks, Watching "Powerful" Gold Mover

Lobo Tiggre, CEO of IndependentSpeculator.com, shared his updated thoughts on gold, silver and uranium.

When it comes to gold, he pointed to a "powerful mover" that he thinks could be in play — a change in global portfolio allocations to the yellow metal. Historically the allocation has been 2 percent, but more recently it's been 0.5 percent.

"I think that what we're seeing is that changing. And maybe it doesn't go back to 2 percent, but if it just goes back to 1 percent, that doubles the investment demand for gold from where we are now," he said.

Looking at silver, he said lately it's correlated more closely to copper than to gold; however, that dynamic now seems to be changing. "I think it's fantastic — not just good — I think it's fantastic news for silver ... that it's acting as a monetary metal should," he said at the Rule Symposium, held last week in Boca Raton, Florida.

With that in mind, Tiggre and his team are on the lookout for stocks that meet his criteria. One of those is jurisdiction — while he's seen strong discoveries in places like Mexico, the political risk is too high for him to be interested.

Watch the interview above for more from Tiggre on gold and silver, as well uranium.

You can also click here to view the Investing News Network's Rule Symposium playlist on YouTube. Recorded presentations from the Rule Symposium are available here.

Don't forget to follow us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.

Additional information on silver stock investing — FREE

5 Best-performing Canadian Silver Stocks of 2024

2024 has been positive for silver stocks. A variety of factors pushed the white metal's price higher during the second quarter, allowing it to break the US$30 per ounce mark for the first time since 2012.

According to the Silver Institute, demand for silver is set to outstrip mine supply for the third year in a row, due in part to rising consumption from sectors dependent on the energy transition, including photovoltaics and electric vehicles.

India in particular has seen demand soar after introducing regulations for domestic production for new solar projects; that led the country to import more silver in the first four months of the year than all of 2023.

How has silver's price movement benefited Canadian silver stocks on the TSX and TSXV? The five companies listed below have seen the best performances since the start of the year. Data was gathered using TradingView's stock screener on August 26, 2024, and all companies listed had market caps over C$10 million at that time.

1. Defiance Silver (TSXV:DEF)

Press Releases

Company Profile

Year-to-date gain: 120.83 percent; market cap: C$71.35 million; share price: C$0.265

Explorer Defiance Silver is working to advance its district-scale Zacatecas silver project in Zacatecas, Mexico.

The project consists of a 4,300 hectare land package and includes four project areas: San Acacio, Lucito, Panuco and Lagartos. Both San Acacio and Lagartos have seen previous exploration and mining activity.

On January 15, the company announced results from its 2023 drill program at the San Acacio target, reporting well-developed silver and zinc values with elevated gold and copper. This includes a highlighted assay of 223.53 g/t silver over 12.82 meters with an interval of 306.86 g/t silver over 7.79 meters.

Defiance provided an update on April 15 on a surface-sampling campaign at the Lucita target. The results show widespread high-grade polymetallic mineralization, with Defiance highlighting grades of up to 795 g/t silver from Lucita North and 2,350 g/t silver from Lucita South. The company said the results reinforce the district-scale potential at Zacatecas.

Shares of Defiance reached a year-to-date high of C$0.425 on May 15.

2. GR Silver Mining (TSXV:GRSL)

Press Releases

Company Profile

Year-to-date gain: 118.75 percent; market cap: C$55.02 million; share price: C$0.175

GR Silver Mining is a small-cap explorer and developer that is working to advance its Rosario Mining District in Sinaloa, Mexico, to production. The district consists of three core mining areas: Plomosas, San Marcial and La Trinidad.

The company’s primary focus has been the development of Plomosas and neighboring San Marcial, a 9,764 hectare land package that hosts a past-producing silver, gold, lead and zinc underground mine.

In March 2023, the company released an updated resource estimate for Plomosas showing total indicated quantities of 97 million silver equivalent ounces, with additional inferred quantities of 53 million silver equivalent ounces.

Shares of GR Silver saw significant gains in the first quarter alongside a rising silver price and a March 4 news release. In the announcement, GR Silver reported that it had started small bulk sampling and test mining at Plomosas.

In an update on June 27, the company provided results from the sampling program. In the report, GR Silver said it had completed 280 meters of underground development and processed 15,170 metric tons of material. Silver recovery rates from the samples were between 84 and 92 percent. Assays from channel sampling produced high grades, with one sample grading 1,625 grams per metric ton (g/t) silver and 14.1 g/t gold over 2.5 meters.

GR Silver's share price reached a year-to-date high of C$0.23 on June 2.

3. Gatos Silver (TSX:GATO)

Company Profile

Year-to-date gain: 99.07 percent; market cap: C$1.22 billion; share price: C$17.06

Gatos Silver is a silver-focused production and exploration company. Its flagship asset is the Cerro Los Gatos mine and district, located south of Chihuahua City, Mexico.

The site consists of 14 predominantly silver, lead and zinc mineralization zones, and is a joint venture with Dowa Metals and Mining, which holds a 30 percent stake in the operation; Gatos owns the remaining 70 percent.

On February 21, the company released its full-year results for 2023, indicating it had produced 9.2 million ounces of silver, marking a decline from the 10.3 million ounces produced in 2022. However, the company said it improved operational efficiencies to offset inflationary pressure, lowering all-in-sustaining costs (AISC) to the lower end of 2023 guidance.

In the release, Gatos also notes that it expects similar production totals for 2024, with guidance of 8.4 million to 9.2 million ounces of silver at an AISC of US$9.50 to US$11.50 per payable ounce. The company said it anticipates that exploration efforts at the South-East Deeps target will further extend the life of the mine.

The most recent news from the project came on July 23, when Gatos reported continued results from the South East Deeps zone extension drilling alongside an update on regional exploration programs. In the announcement, the company provided a highlighted assay of 214 g/t silver over 3.5 meters.

Results from its ongoing drilling at the Portigueño target included a highlight of 49 g/t silver over 1.6 meters, while results from two holes testing the depth of the San Luis target produced a highlighted intercept more than 150 meters below surface of 66 g/t silver over 8.9 meters, which included 111 g/t silver over 2.5 meters.

In an update on August 6, Gatos reported that silver production through the first six months of 2024 was 4.67 million ounces, up from 4.43 million ounces from the same period in 2023. The company also said it remained on track to achieve 2024 production and cost guidance.

Shares of Gatos reached a year-to-date high of C$19.29 on July 15.

4. Avino Silver and Gold Mines (TSX:ASM)

Company Profile

Year-to-date gain: 95.77 percent; market cap: C$185.09 million; share price: C$1.39

Avino Silver and Gold Mines is a precious metals miner with two primary silver assets: the producing Avino silver mine and the neighboring La Preciosa project in Durango, Mexico.

The Avino mine is capable of processing 2,500 MT of ore per day ore, and in 2023 produced 928,643 ounces of silver, 7,335 ounces of gold and 5.3 million pounds of copper. While within the company's guidance, there was a 6 percent decrease in silver production over 2022, when it produced 985,195 ounces in the same time period.

In addition to its Avino mining operation, Avino is working to advance its La Preciosa project toward the production stage. The site covers 1,134 hectares, and according to a February 2023 resource estimate, holds measured and indicated quantities of 98.59 million ounces of silver and 189,190 ounces of gold.

On February 28, the company provided an update for La Preciosa, saying it was preparing for the first phase of production at the Gloria and Abundancia veins. Avino also said it has the equipment needed to commence operations at the site once it receives the necessary environmental permits, which it expects later in 2024.

In its Q2 2024 results released on August 13, Avino reported that it had generated record quarterly revenues of C$14.8 million during the second quarter, an increase of 60 percent over the same quarter in 2023. Additionally, the company said it had produced 543,589 ounces of silver through the first half of the year, a 16 percent increase from the 466,755 ounces of silver in the six months of 2023.

Avino's share price marked a year-to-date high of C$1.51 on May 26.

5. Endeavour Silver (TSX:EDR)

Company Profile

Year-to-date gain: 67.68 percent; market cap: C$1.09 billion; share price: C$4.41

Endeavour Silver is a silver company with two operating silver-gold mines in Mexico — Guanaceví and Bolañitos — plus an advanced-stage development project and several exploration properties.

Its primary focus for 2024 has been the development of its Terronera project in Jalisco, Mexico, which is under construction. Once complete, the new mine will become the company’s flagship operation. According to a 2023 update to its 2021 feasibility report, Terronera will produce an estimated 4 million ounces of silver per year over a 10 year mine life.

The most recent update from Terronera came on July 24, when the company announced that construction at the site had progressed, with surface construction achieving 77 percent completion. The company said the upper platform was progressing and should be ready for dry commissioning during Q3 2024 and that it was concentrating on the lower platform with final earthworks and concrete pouring also during the third quarter.

In an update on August 19, Endeavour reported that processing at its Guanacevi mine site had resumed following a failure that occurred at the primary ball mill trunnion on August 12. However, the company noted that processing would be less than half of its 1,200 metric ton per day capacity during a ramp up with temporary modifications. Permanent repairs to return to regular capacity are expected to take 16 weeks for fabrication and installation.

The company said that silver production for the year is estimated to decrease by 900,000 to 1.1 million ounces and has recalculated its 2024 guidance to 4.4 to 4.6 million ounces.

Shares of Endeavour reached a year-to-date high of C$6.80 on July 15.

Don’t forget to follow us @INN_Resource for real-time news updates!

Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.

Additional information on silver stock investing — FREE