Silver Stock Report, August 8th, 2019

Yesterday, gold prices hit a high of $1510, and silver hit a one year high of: $17.21/oz.

Here are 15 silver stocks, briefly reviewed for their market caps. They are organized by their leverage calculation, which is the value of silver resources divided by market cap.

In general, I’m shocked by the very high market caps of many of these silver stocks. Some of the micro juniors from 10+ years ago have grown into majors, such as First Magestic and Silvercorp. It’s hard to find value in this sector today. The last stock on the list, Silver Bull Resources, formerly Metalline Mining, looks cheap. So does Clifton, but it’s hard to know what Clifton really has. But then again, are those projects still cheap because they never got off the ground during this last bull cycle? What will it take? Will they ever?

These calculations are reasonably accurate as of 8-7-2019. Many things may change these valuations. Stock prices may have already moved. Companies can issue more shares. Companies may find more resources. The gold and silver price may change. I may have made errors. Therefore, do your own research and due diligence to confirm.

If you would like me to add a silver stock to this list, please mention it in the comments section.

https://www.firstmajestic.com
https://finance.yahoo.com/quote/ag
$10.48/share
Market Cap: $2 billion
P/E N/A
https://www.firstmajestic.com/_resources/First%20Majestic%20Booklet%20(August%202019).pdf
6 mines in Mexico in production:
Produces 6-7 million oz. of “silver equivalent” per quarter, so 26 million AG/EQ/year.
p. 13, AISC cost per oz. $13-14/oz. silver
= estimated profit at $17/oz. (-$14) before reinvestments: $78 million/yr. = est. P/E = 25
https://www.firstmajestic.com/_resources/financials/FSMDAQ219.pdf
$94 million cash and equiv on hand, lost $9 million in the last 6 months

http://silvercorpmetals.com/
http://silvercorpmetals.com/investors/share_structure/
170,000,552 shares
https://finance.yahoo.com/quote/SVM.TO
$4.50/share x .76 CDN/USD
Market Cap: $765
Produces 6 million oz. silver/year.
Producing since 2007.
Cash: $115 million
Adjusted Net Income of about $40million/year.
P/E: 19

https://norzinc.com/ (formerly Canadian Zinc)
369.7 million shares outstanding
https://finance.yahoo.com/quote/NZC.To OTCQB: NORZF
$.095/share x .76 CDN/USD
Market Cap: $26.7 million
https://norzinc.com/site/assets/files/5288/nzc_presentation_march_2019.pdf
Permitted with Feasibility Study
Capital Cost $279 million CDN, p. A3
Proven and Probable: 8,071,000 tonnes at 3.6 oz./t silver = 28.8 million oz. x $17 = $489 million
NPV after tax, from $188 million to $291 million Cdn.
Appears to be “barely economic” as the NPV is below the Capex.
Leverage: 18.3
Leverage with Capex ($305 million): 1.6

http://www.excellonresources.com/
http://www.excellonresources.com/investors/stock-information/
99.3M shares issued and outstanding
https://finance.yahoo.com/quote/EXN.to
$1.06 x .76 CDN/USD
Market Cap: $80 million
http://www.excellonresources.com/_resources/presentation/EXN-Corporate-Presentation-July-22-2019.pdf
High Grade Underground Producer of 1 kilo per tonne silver, 1000g/t, producing since 2005
Produced 1.8 million oz. silver in 2018.
Cost per oz. of production varies wildly, p. 19
Raised $30 million CDN since 2016 by issuing stock.
Lost money every year from 2014 to 2018, p. 25
Indicated and Inferred: 8.7 million oz. silver. x $17 = $147 million
Leverage: 1.8

https://www.panamericansilver.com
https://finance.yahoo.com/quote/PAAS
Market Cap: $3.4 billion
https://www.panamericansilver.com/operations/our-operations/reserves-and-resources/
Reserves: 567 million oz. silver x $17 = $9,639
Leverage: 2.8

http://www.silvercrestmetals.com/
http://www.silvercrestmetals.com/investors/share-structure/
85,798,315
https://finance.yahoo.com/quote/sil.v
$7.60 x .76 CDN/USD
Market Cap: $495 million
http://www.silvercrestmetals.com/properties/las-chispas/mineral-resources/
February 2019 Resources
Indicated Resource 39,763,600 AgEq
Inferred Resource 68,069,800 AgEq
Total: 107.8 million oz. AgEq x $17 = $1832.6 million
Leverage: 3.7

https://www.edrsilver.com/English/home/default.aspx
https://s22.q4cdn.com/579360173/files/doc_downloads/fact_sheet/Endeavour_8.5x11_FactSheet_June.pdf
131.5 million shares issued
https://finance.yahoo.com/quote/EXK/
$2.67 x .76 CDN/USD
Market Cap: $267 million
https://www.edrsilver.com/English/mining-assets/reserves-and-resources/default.aspx
Total proven and probable: 46,980,000 AG
Total measured & indicated: 22,312,000 ag
Total Inferred: 53,273,000
75.5 million x $17/oz. = $1283 million
Leverage: 4.8

https://www.alexcoresource.com/
https://www.alexcoresource.com/investors/overview-1/
116,994,570 issued and outstanding shares
https://finance.yahoo.com/quote/axr.to
$2.46/share x x .76 CDN/USD
Market Cap: $287 million
https://www.alexcoresource.com/site/assets/files/4272/2019-yma_july_11-2019-_corporate_presentation.pdf
Keno Hill, in Yukon, Canada A former mine, still moving towards production.
83 million oz. silver indicated, 23 million oz. silver inferred, p. 4 x $17 = $1802 million
Initial capital costs of $23.2 M (cdn) p. 5, After-tax NPV5 $101.3 M
Grades: average about 1 kilo/tonne
Estimated to produce 3-5 million oz. of silver per year over a 7 year mine life.
Leverage: 6.3

https://dsvmetals.com/
https://dsvmetals.com/investors/share-structure/
168.6 million outstanding shares
https://finance.yahoo.com/quote/DSV.V/
$.435 x .76 CDN/USD
Market Cap: $55.7
https://dsvmetals.com/site/assets/files/5120/dsv_-_august_2019_final_v2.pdf
p. 5 grades: .06 gold, 19 g/t silver, very very low grades. (How would that be economic?)
Capex: $569.7 million
128 million oz. silver indicated
131 million oz. silver inferred
Total: 259 million oz. silver x $17 = $4403
Leverage: 79
Leverage of MC + Capex ($625 million): 7

https://www.ssrmining.com/ (formerly Silver Standard)
https://finance.yahoo.com/quote/ssrm
$16.87/share on the Nasdaq
Market Cap: $2043 million ($2 billion)
http://www.ssrmining.com/_resources/reserves_resources.pdf
Measured and Indicated: 629.3 million oz. silver, x $17 = $10,693 million
7.59 million oz. gold x $1400 = $10,626 million
Total: 21,319… about 10% more inferred: $23,450.9
Leverage: 11.4

https://www.defiancesilver.com/investors/stock-information
Issued: 132,984,557 shares
https://finance.yahoo.com/quote/DEF.V
$.33/share x .76 CDN/USD
Market Cap: $33 million
San Acacio: 17 million oz. silver x $17 = $289
Tepal: 1.8 million oz. gold x $1400 = $2,520,
https://www.defiancesilver.com/assets/docs/presentations/DEFPPTMayFINAL.pdf
Capital cost $214 million
=$2809 total
Leverage: 85
Leverage (MC + capex = $247 million): 13.1

https://www.avino.com/investors/stock-info/
Issued and Outstanding Shares as of today: 63,337,769
https://finance.yahoo.com/quote/asm.to
$1.02/share x .76 CDN/USD
Market Cap: $49 million
https://www.avino.com/site/assets/files/4950/factsheet.pdf
Silver Production: 1.3 million oz.
Resources: M&I: 26.3 million oz. silver + Inferred 13.6 million oz. silver x $17/oz. = $678 million
Leverage: 13.8

https://www.bearcreekmining.com/
https://www.bearcreekmining.com/investors/corporate-and-share-information/
Issued and Outstanding: 103,085,064 shares
https://finance.yahoo.com/quote/bcm.v
$2.38/share x .76 CDN/USD
Market Cap: $186 million
https://www.bearcreekmining.com/projects/corani/
The 100% owned Corani silver-lead-zinc property
Working on feasibility studies from 2009 to 2017
2018, Permitting, and Financing and initial contruction
NPV: $404 million
Capex: 586 million
Proven and Probable: 225 million oz. silver + 135 million oz. resources. x $17 = $6120 million
Leverage: 32.9

http://www.silverbullresources.com/ (formerly METALLINE MINING)
236,328,214 issued and outstanding shares
https://finance.yahoo.com/quote/SVB.TO
$.155/share x .76 CDN/USD
Market Cap: $28
http://www.silverbullresources.com/projects/overview/
91 million oz. silver Measured and Indicated x $17 = $1547 million
Leverage: 55

=====AD=====

The relatively low leverage in the silver stocks makes my Paid Stock Pick look aweseome! Also, the gold price increased this week, whereas the stock of this company did not. Thus, the leverage increased from 132 to 144.

Paid Stock Pick: as of 8-8-19
Market Cap, $25 million USD.
Resources of 2.4 million oz. of gold at 4g/t.
2.4 million oz. x $1500 gold = $3600 million
$3600 million Resources / $25 million Market Cap = Leverage: 144 to 1.
Project is permitted.
Located in South America.
Project backed by an investor with a net worth of $25 billion.
For the name of this stock send $53 to:
https://www.paypal.me/JasonHommel or
bibleprophesy@yahoo.com

====No known leverage below here=====

http://www.cliftonmining.com/
http://www.cliftonmining.com/file/2c797389-56e9-42e9-8408-2c07755a659b
p. 16: As of December 31, 2018 and 2017 there were 58,770,791 and 58,770,791
respectively of common stock outstanding
https://www.otcmarkets.com/stock/cftn/quote
$.10/share
Market Cap: $5.87 million

http://www.minaurum.com/s/Home.asp
http://www.minaurum.com/s/ShareStructure.asp
312,414,046 shares issued
https://finance.yahoo.com/quote/MGG.V
$.53 x .76 CDN/USD
Market Cap: $126 million very high. 5 projects. No 43-101 compliant resources yet.

Join the conversation

18 Comments

    1. https://aftermathsilver.com/
      https://aftermathsilver.com/share-structure/
      27.8 million outstanding shares
      https://finance.yahoo.com/quote/AAG-H.V
      $.18 x .76 CDN/USD
      Market Cap: $3.8 million
      Does not actually own Challacollo.
      https://aftermathsilver.com/challacollo/
      Historic (not 43-101 compliant)
      Underground.
      Indicated 30.2 million oz. silver at $17 = $513 million
      + 48,000 oz. gold at $1500 = $72 million
      Inferred 6.9 million oz. silver at $17 = $117 M
      + 15,900 oz. gold at $1500 = $24 M
      Total: $726 million
      Leverage: none, as it does not actually own Challacollo.

  1. “Silver Stock Report, July 8th, 2019”

    Shouldn’t that be, “Silver Stock Report, August 8th, 2019?”

  2. Jason would you add DSV.V Discovery Metals to your list. btw would you be willing to do a silver leverage calculation for their Cordero project? tia James

    1. https://dsvmetals.com/
      https://dsvmetals.com/investors/share-structure/
      168.6 million outstanding shares
      https://finance.yahoo.com/quote/DSV.V/
      $.435 x .76 CDN/USD
      Market Cap: $55.7
      https://dsvmetals.com/site/assets/files/5120/dsv_-_august_2019_final_v2.pdf
      p. 5 grades: .06 gold, 19 g/t silver, very very low grades. (How would that be economic?)
      Capex: $569.7 million
      128 million oz. silver indicated
      131 million oz. silver inferred
      Total: 259 million oz. silver x $17 = $4403
      Leverage: 79
      Leverage of MC + Capex ($625 million): 7

  3. I heard today that Gold has broken out in most currencies to all time highs, except the dollar.
    And now we have Trump who wants a weaker dollar.

  4. Thanks for including the link to Australian silver miners on the ASX.
    Do you have an opinion on how some of these companies are positioned to perform in the coming period?
    Some of my SMSF holdings are moving well after being beaten down for a long time, which is deeply encouraging!

  5. Jason – please take another look at the DSV Cordero site. The grades for Ag gm/ton and especially the Ag EQ values published by the company are different than your summary above.

    1. Please correct me if I am wrong Jason. It appears to me that a significant portion of the Cordero resource(about 50%)would be of the economic kind at current silver prices, given the fact that it is near surface and a grade of approximately 40g per ton.

      1. Yes, on page 6, the g/t AGEQ or silver “equivalent” ounces, means to treat the other metals, as if they were silver. Or put all the mineral values into dollars, and then how many dollars of silver would that be? Yes, that about doubles the grades to 40g/t from 19 g/t. That is still some of the lowest grade ore I’ve ever seen. It’s just over an ounce of silver. Or an ounce of silver would be the middle value 31g/t. An ounce of silver is $17. That is very low grade rock. In terms of gold, that would be: 0.3g/t. But as this is multi metals, it gets harder to mine each one. When you have 4 metals, recoveries are significantly lower. Lead is not gold. The lead alone might prevent the project from ever being started. Because lead is toxic, and this particular project is so low grade. Also, the cost of lead is mostly the cost of shipping it, because it’s so heavy and so cheap. The cost of shipping gold is less than 1%. This project has a very slim chance of heading to production, in my opinion.

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