Best Silver Stocks of 2020 on the TSX

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After beginning 2020 at the US$18 per ounce level, silver spiked in the summer to a seven year high of US$29.14. Rising rapidly at the start of Q3, it climbed 61 percent from July to mid-August.

The price of the white metal then pulled back to the US$26 range, holding there until mid-September, when it shed a few more dollars to sit at the US$24 to US$25 level for the remainder of the year.

In the face of depressed industrial demand, silver’s currency status has attracted safe haven investors and those looking for a leveraged play on gold.

With the silver price still relatively elevated, many silver-mining companies have experienced share price growth. The Investing News Network has rounded up the five best silver stocks on the TSX with the biggest share price gains year-to-date.

The best silver stocks list below was generated on December 8, 2020, using TradingView’s stock screener. All the silver-mining stocks listed had market caps above C$50 million at that time.

1. Sierra Metals (TSX:SMT)

Year-to-date gain: 73.39 percent; current share price: C$3.78

Sierra Metals is a mid-tier precious metals and base metals producer that holds the Yauricocha mine in Peru and the Bolivar and Cusi mines in Mexico. In addition to silver production, output from these mines also includes gold, copper and zinc.

In November, the silver miner published a preliminary economic assessment for Yauricocha, and on the same day also released an increased mineral resource estimate for Cusi. The news sent the mining stock up nearly 27 percent in two days to a year high of C$4.31.

2. Fortuna Silver Mines (TSX:FVI)

Year-to-date gain: 66.54 percent; current share price: C$8.81

Fortuna Silver Mines is a diversified miner with projects in Peru, Mexico and Argentina. Its flagship asset is the Caylloma silver mine in Southern Peru. During Q3 of this year, Fortuna produced 2.13 million ounces of silver and 12,791 ounces of gold; both of those figures are up from the year-ago period.

At the beginning of Q3, the miner decided to temporarily close its Caylloma mine for a two week period after the death of a contract employee. The time was used to sanitize and disinfect the site. Mining and processing recommenced on July 27 at a capacity of 1,430 tonnes per day.

Shares of Fortuna reached a quarterly high on September 19 to trade for C$10.27.

In late October, the mining company announced the first gold pour at its Lindero mine in Argentina. In early November, Fortuna’s stock price hit its year high of C$10.56.

3. Avino Silver & Gold Mines (TSX:ASM)

Year-to-date gain: 65.33 percent; current share price: C$1.24

Based in Mexico, Avino Silver & Gold Mines owns a portfolio of precious metals and base metals projects.

In early July, the miner temporarily halted production at its namesake silver mine near Durango, Mexico, due to a union blockade. The protest continued throughout the quarter, reaching a resolution in early October. Despite the dispute, company shares rose to a year high of C$2.04 on August 6.

In mid-August, Avino fulfilled an option agreement with Silver Wolf Exploration (TSXV:SWLF), formerly Gray Rock Resources. The cash-and-share deal gives Silver Wolf exclusive rights to acquire a 100 percent interest in Avino’s Ana Maria and El Laberinto properties in Mexico.

4. Great Panther Mining (TSX:GPR)

Year-to-date gain: 58.21 percent; current share price: C$1.06

Great Panther Mining is a gold and silver producer with a multi-stage property portfolio in Latin America. Across Brazil, Mexico and Peru the company has three operating gold and silver mines, four exploration project and an advanced development project.

In early August, Great Panther reported its second quarter financial results, including record-setting net income of US$8.6 million and operating cash flow of US$19.5 million. The numbers sent Great Panther shares to a year high of C$1.42 on August 18.

5. Endeavour Silver (TSX:EDR)

Year-to-date gain: 53.99 percent; current share price: C$4.81

Mid-tier producer Endeavour Silver owns and operates three underground silver-gold mines in Mexico.

Endeavour’s efforts are currently focused on the Terronera mine. The company also holds a portfolio of exploration and development projects in Mexico and Chile.

An H1 update released in August highlights the disruption that government-mandated COVID-19 closures had on the company’s production levels.

“Endeavour was able to reduce its net loss quarter-on-quarter, as each mine generated positive Mine Free Cash Flow thanks to improved operating performance and higher precious metal prices,” said CEO Bradford Cooke. “After the mines restarted, we were able to outperform our adjusted mine plans in June.” Shares reached a year-to-date high of C$6.20 on August 4, the day the H1 update came out.

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