Precious Metals

Silver Investing

Great Panther Silver is one of the top gaining silver companies so far this year, with a 207.14 percent increase in share price year-to-date.

Much like the gold price, silver prices have been steadily inclining so far in 2016, making gains of $2.89, or 20.49 percent year-to-date. Thompson Reuters sees the silver price averaging $15.90 an ounce by year-end, and moving higher in 2017 to $17.50 per ounce. This has helped to boost several of the top gaining silver companies so far this year.
The silver price— which is seeing its best levels in over twelve months—has been beneficial for silver mining companies. Here’s a look at the top gaining silver mining companies with market capitalizations of $200 million or more.

Great Panther Silver (TSX:GPR)

Great Panther Silver, so far this year, has made gains of 207.14 percent to $1.45. The company recently released its first quarter 2016 financial results, and reduced all-in sustaining costs per payable silver ounce by 36 percent to $9.25 an ounce, which contributed to strong operating earnings and free-cash flow margins from its operating mines.  Great Panther produced 539,472 ounces of silver, a decrease of 10 percent compared to the first quarter of 2015.
Robert Archer, president and CEO, said in the press release, “Our mine operating earnings before non-cash items increased 16 percent over the first quarter of the prior year due to significantly lower cash costs and favourable foreign exchange rates. Consolidated cash costs for the company continued the declining trend of last year to reach US$4.20 per payable silver ounce, an impressive reduction of 52 percent from the first quarter in 2015.
In April, Great Panther Silver announced that it had entered into an at-the-market offering agreement with Rodman & Renshaw for proceeds of up to $10 million.

Coeur Mining (NYSE:CDE)

Coeur Mining has seen overall gains of 193.15 percent to $4.79 per share.  The company is the largest US-based silver producer, but it also produces a significant amount of gold. Coeur has five precious metals mines across the Americas, employing approximately 2,000 people.
At the end of April, Coeuer released its first quarter 2016 results. Some highlights included that they had sold 3.5 million ounces of silver during the quarter.  Adjusted all-in sustaining costs were $13.73 per realized silver equivalent ounce.
Mitchell J. Krebs, president and CEO said in the press release, “These sustained lower operating costs, combined with the positive momentum we have seen in silver and gold prices so far this year, have led to a 16% increase in adjusted EBITDA to $34.6 million.”

First Majestic Silver (TSX:FR)

As of May 9, First Majestic has seen is shares rise 172.06 percent to $7.76. The company presently owns and operates six producing silver mines in Mexico, and production is anticipated to be between 12-to-13.3 million ounces of pure silver, or 17.8-to-19.8 million ounce of silver equivalent, for this year alone. In April, First Majestic announced a $50 million bought deal financing. 

Fortuna Silver Mines (TSX:FVI)

Fortuna Silver Mines was formed in 2005. For 2016, the company is forecasting 7 million ounces of silver production, and 42,800 ounces of gold production. Fortuna has seen its share price increase 152.73 percent to $4.75 so far this year.
In April, Fortuna announced it had produced 1.6 million ounces of silver, and 9,264 ounces of gold for the first quarter of 2016.
Jorge A. Ganzoa, president and CEO said in the press release, “Silver and gold production exceeded guidance for the quarter. San Jose’s outperformance was driven by higher head grades, increase in milled tonnes, and better metallurgical recoveries. Caylloma reached the new mill throughput rate of 1,430 tpd at the end of March.”

Endeavour Silver (NSYE:EXK)

This year, Endeavour Silver has risen 152.11 percent to $2.16 per share. Endeavour owns three underground silver-gold mines in Mexico, and has produced 11.4 million ounces of silver equivalent production as of the end of 2015.
The company recently announced an agreement with Canarc Resource (TSX:CCM) to acquire a 100 percent interest in Oro Silver Resources and the El Compas gold-silver mine property. Under the terms of the agreement, Endeavour will pay Canarc $10.5 million by issuing 2,147,239 shares at a deemed issue price of $4.89.

Junior Mining Companies

A number of junior mining companies have seen success thus far in 2016 as well, including  Silver Bear Resources (TSX:SBR), Golden Arrow Resources (TSX:GRG), Sabina Gold & Silver (TSX:SBB), Kootenay Silver (TSX:KTN), and  Levon Resources (TSX:LVN).

Silver Bear Resources

Silver Bear has seen a drastic increase overall this year by 800 percent, to $0.16 per share. Silverbear focuses on the acquisition, exploration, evolution and development of silver properties in the Russian Federation. The company’s most recent news came at the end of April, wherein the company entered into a non-binding term sheet with its major shareholders, Inflection Management and A.B. Aterra Resources, for a comprehensive secured debt funding project for the final development and construction of its Manganzeisky Silver Project.

Golden Arrow Resources

Golden Arrow Resources is currently focused on advancing its flagship Chinchillas silver project located in Jujuy, Argentina. So far this year, the company has made overall gains of 175 percent to $0.55 per share. Golden Arrow’s most recent news regarding the Chinchillas project came in  April, when the recently completed its Phase V drill program and converted more than 50 million ounces of silver equivalent resources to the measured and indicated category.

Sabina Gold & Silver

To date, Sabina Gold & Silver has made overall gains of 115.07 percent to $0.84 per share. The company is currently focused on its flagship Back River project in Nunavut. In September 2015, Sabina announced results of a feasibility study for Back River, and submitted its final environmental impact statement to the Nunavut Impact Review Board in December.
Sabina’s most recent announcement came in early May when the company announced a $30 million bought deal financing, co-led by BMO Capital Markets, Canaccord Genuity and Cormark.

Kootenay Silver

Kootenay Silver is a silver exploration company with projects in both Mexico and British Columbia. To date, Kootenay Silver has increased by 97.37 percent to $0.38 per share. 
On April 21, the company completed its acquisition of Northair Silver, and on April 26, Pan American Silver (TSX:PAA) upped its investment in Kootenay to retain its ten percent ownership interest in the company.

Levon Resources

Finally, Levon Resources holds the silver-gold-zinclead Cordero Project in the Chihuahua State of Mexico. To date, shares of Levon Resources have increased 54.29 percent to $0.10.
The Cordero discovery is presently one of the world’s largest silver resources, containing 488 million ounces of silver in the indicated category plus 44 million ounces of inferred silver.

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Securities Disclosure: I, Jocelyn Aspa, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Kootenay Silver and Levon Resources are clients of the Investing News Network. This article is not paid-for content.


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