If you're seeking a solid investment strategy for 2024, consider silver mining stocks. The world of precious metals offers alternative opportunities too often overlooked. Silver presents a unique proposition, owing to its versatility and significant industrial application.
Silver is known for its precious status in the grand scheme of finances, but it's also widely used in various industries such as electronics, medicine, energy and more.
Why silver mining stocks then? It's simple - as the demand for silver increases, the stocks of companies involved in mining this precious metal will likely follow the same trend. With this in mind, we've compiled a list of top silver mining stocks to keep your eye on in the year 2024. Ready to dig in, roll up your sleeves and add some shine to your portfolio?
Why invest in Silver Mining Stocks in 2024
You might be wondering why you should tear your eyes away from the buzzwords of the day, such as cryptocurrency, technology stocks, or broad market index funds. There are a few compelling reasons to delve into the world of silver mining stocks. Let's look at why these stocks should be on your radar for 2024.
Firstly, silver, like gold, often serves as a hedge against fluctuations and turmoil in other areas of the market. In turbulent times when the future is uncertain, investors often flock to these mining stocks as a form of 'safe haven' investment. So there's always a certain level of inherent value and security that these companies offer. That's peace of mind that's incredibly valuable, isn't it?
Secondly, with global economies gradually recovering from the COVID-19 pandemic, industrial activities are expected to pick up the pace. Silver, with its wide range of applications in the industry including solar panels, electronics, and medical equipment, is likely to see its demand surge.
Last but not least, some experts believe we're entering a new commodity supercycle, a decades-long period where commodities like silver will significantly outperform other sectors. If this proves to be true, it's an opportunity you wouldn't want to miss in 2024.
So, whether you're trying to balance your portfolio, safeguard against economic uncertainty, or capitalize on projected market trends, silver mining stocks present an attractive investment opportunity. It's definitely something worth digging into!
Our Favourite Silver Mining Stocks for 2024
Investing in silver mining stocks in 2024 has never looked more promising. As we step into the future, it's crucial to scout the promising silver mining stocks and dig deeper into their performance and growth potential. With an array of stocks to consider, we have handpicked our favorites, including names such as Apollo Silver, Santacruz Silver and Kuya Silver, all of which bring unique value from their different stages of production and diverse geographical locations.
Apollo Silver
240131: Symbol: APGO.V Price: 0.12 CAD Market cap: 21 million CAD
Apollo Silver (APGO.V) is a silver developer focused on advancing its Calico Silver-Barite Project, located in San Bernardino County, California. Calico is the largest undeveloped pure silver resource in the US and it hosts 110 Moz silver measured and indicated and 51 Moz silver inferred.
The company is well-financed with no debt and 4M usd of working capital. In 2024, they will focus on advancing its Calico Silver Project by further exploring and integrating barite into its mineral resource estimate based on the promising results of metallurgical test work that showed high-quality barite concentrate production. Barite is on the 2022 US Final List of Critical Minerals.
If you look at the available market data, you'll notice Apollo is notably trading lower than similar peers. Therefore, we're predicting that this company is poised for a price surge in 2024.
Santacruz Silver Mining
240131: Symbol: SCZ.V Price: 0.235 CAD Market cap: 82 million CAD
Santacruz Silver (SCZ.V) is a silver production and base metals mining company focused on operations in Mexico and Bolivia.
They run four mining sites, and in 2023, they produced 22.6 million silver equivalent ounces. Approximately 30% - which equates to 7 million ounces - was pure silver with the balance primarily consisting of zinc.
When drawing a comparison with its peers, such as First Majestic Silver Corp (FR.TO), which boasts a market cap of 1.8 billion CAD at a share price of 6.23 CAD following a production of 26.9 Moz AgEq (10.3 Moz Ag) in 2023, it becomes apparent that Santacruz is significantly undervalued. Granted, a considerable portion of First Majestic's income is attributed to gold instead of zink, but even so, it's hard to justify its valuation being 22 times higher than that of Santacruz.
Kuya Silver
240131: Symbol: KUYA.CN Price: 0.225 CAD Market cap: 21 million CAD
Kuya silver (KUYA:CN) is a silver developer company with projects in Peru and Canada.
The company is set to restart production at the Bethania Silver Mine in Peru within a few months. The plan is to produce about 1.2 to 1.4 million ounces of silver equivalent over the first five years. With a low all-in sustaining cost of roughly $9 per ounce, it's projected that Kuya's annual cash flow will match their current market cap in the coming years.
Kuya is not only developing the Bethania mine, it's also exploring the Silver Kings Project in Northern Ontario, Canada. Their drilling efforts to date have brought in promising results including:
3.34 metres of 15 372 g/t silver
2.49 metres of 2 424 g/t silver
Considering Kuya is cashed up to begin production later this year, and they're projected to generate significant cash flow afterwards the company feels highly undervalued.
Conclusion
Choosing to delve into the world of silver mining stocks is an exciting venture, full of potential for growth and rewards. Silver, despite its occasional volatility, continues to be a solid investment. By this point, you're equipped with knowledge about some of the best silver mining stocks to watch in 2024, namely Apollo Silver, Santacruz Silver Mining, and Kuya Silver.
Ultimately, your selection should align with your personal beliefs, risk tolerance level, and overall investment strategy. As always, it's wise to do your own research or consult with an investment advisor before making final decisions. To another prosperous year of investing in 2024!
