The silver price has had a volatile year, but what are the biggest silver stocks on the TSX? We’ve got the answers here.
Although its sister metal gold has begun to take off, breaking US$1,900 per ounce last week, silver has remained rangebound between US$22 and US$24.50 per ounce so far in 2022.
However, some experts expect it to follow gold’s lead soon. The Morgan Report’s David H. Smith spoke to the Investing News Network (INN) on February 16, stating, “I'm willing to be wrong on this, but I do believe that this year silver has the potential to challenge US$50 — I don't know if it'll be successful or not, (but) I think it may."
Below INN lists the top five TSX-listed silver stocks by market cap. The list was generated on February 16, 2022, using TradingView’s stock screener, and all data was accurate at that time.
1. Pan American Silver
Market capitalization: C$6.394 billion
Pan American Silver (TSX:PAAS) describes itself as “the world’s premier silver mining company.” Its operations span the Americas, with four in Peru, two in Mexico and one in each of Guatemala, Bolivia, Argentina and Canada. In total, the company has 529 million ounces of silver reserves and reported consolidated production of 19.2 million ounces of the metal in 2021. Its Escobal mine in Guatemala is currently not operating.
On January 19, Pan American Silver released its preliminary production results for Q4 2021 and the full year. Production was up year-on-year, although reportedly still constrained by effects from the pandemic. The company's mines also produce some gold, and its Dolores mine saw record gold output of 160,000 ounces.
Due to the current wave of COVID-19 infections, the company has deferred its 2022 guidance until it can determine how its production will be affected by workforce shortages. It is expected to be released by February 23.
2. First Majestic Silver
Market capitalization: C$3.749 billion
First Majestic Silver (TSX:FR) is a silver-mining company operating its four producing mines: the San Dimas and Santa Elena silver-gold mines and La Encantada silver mine in Mexico, and the Jerritt Canyon gold mine in Nevada, US. In addition to these, the company also has eight silver exploration properties and a silver stream from the Springpole gold-silver project of 50 percent payable silver.
On January 18, First Majestic released its Q4 2021 and full-year results alongside its 2022 guidance. Its silver production hit a quarterly record of 8.6 million silver equivalent ounces in Q4, including 3.4 million silver ounces and 67,400 gold ounces. The company produced 26.86 million silver equivalent ounces in 2021, which was another record and a 32 percent increase over its 2020 output.
For 2022, First Majestic's guidance points to production of 32.2 million to 35.8 million silver equivalent ounces, including 12.2 million to 13.5 million silver ounces.
3. MAG Silver
Market capitalization: C$1.96 billion
MAG Silver (TSX:MAG) is a development and exploration company focused on projects in the Americas. Its primary asset is the Juanicipio project in Mexico, which is a joint venture with Fresnillo (LSE:FRES,OTC Pink:FNLPF); MAG has a 44 percent interest in the project. Its mineralization includes silver, gold, lead and zinc. The company is also working towards earning a 100 percent interest in the Deer Trail exploration project in Utah, US.
Construction is underway at Juanicipio, including for the Juanicipio processing plant; underground development and stope material is already being processed at the nearby Fresnillo beneficiation plant. Q4 2021 numbers for the processing of these materials include total production estimates of 1.63 million ounces of silver and 3,985 ounces of gold. For the year, numbers reached 3.2 million ounces of silver and 6,577 ounces of gold.
4. SilverCrest Metals
Market capitalization: C$1.621 billion
SilverCrest Metals (TSX:SIL) is developing its high-grade Las Chispas mining district in Sonora, Mexico. In 2021, the company received a top 10 position on the TSX30, which ranks the top 30 performers on the TSX over three years. It is currently working on constructing a mine at its Las Chispas project, and is aiming to begin production in the middle of 2022. The company also has the El Picacho gold-silver property only 85 kilometers by road from Las Chispas, as well as a handful of other properties it is not currently exploring.
On January 25, SilverCrest shared an update on construction at Las Chispas. According to the company, it was ahead of schedule at the end of 2021, and it expects that the beginning of production could be in early Q2 because of that. The company has not released any other news in 2022.
5. Fortuna Silver Mines
Market capitalization: C$1.362 billion
Fortuna Silver Mines (TSX:FVI) has four operating silver mines in Argentina, Burkina Faso, Mexico and Peru. It is constructing an additional mine in Côte d'Ivoire, and places a heavy focus on operational sustainability.
Fortuna has released plenty of news so far this year, including drill results and a construction update at its Séguéla gold project in Côte d'Ivoire, as well as its 2021 production and 2022 guidance. According to the latter report, in 2021 Fortuna produced 7.5 million ounces of silver and 207,192 ounces of gold, as well as significant lead and zinc. As for its 2022 silver guidance, the company expects production to fall to 6.2 million to 6.9 million ounces.
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Securities Disclosure: I, Lauren Kelly, hold no direct investment interest in any company mentioned in this article.
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