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.
Market Cap: $2 billion
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
$94 million cash and equiv on hand, lost $9 million in the last 6 months
$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.
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
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 with Capex ($305 million): 1.6
99.3M shares issued and outstanding
$1.06 x .76 CDN/USD
Market Cap: $80 million
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
Market Cap: $3.4 billion
Reserves: 567 million oz. silver x $17 = $9,639
$7.60 x .76 CDN/USD
Market Cap: $495 million
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
131.5 million shares issued
$2.67 x .76 CDN/USD
Market Cap: $267 million
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
116,994,570 issued and outstanding shares
$2.46/share x x .76 CDN/USD
Market Cap: $287 million
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.
168.6 million outstanding shares
$.435 x .76 CDN/USD
Market Cap: $55.7
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 of MC + Capex ($625 million): 7
https://www.ssrmining.com/ (formerly Silver Standard)
$16.87/share on the Nasdaq
Market Cap: $2043 million ($2 billion)
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
Issued: 132,984,557 shares
$.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,
Capital cost $214 million
Leverage (MC + capex = $247 million): 13.1
Issued and Outstanding Shares as of today: 63,337,769
$1.02/share x .76 CDN/USD
Market Cap: $49 million
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
Issued and Outstanding: 103,085,064 shares
$2.38/share x .76 CDN/USD
Market Cap: $186 million
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
http://www.silverbullresources.com/ (formerly METALLINE MINING)
236,328,214 issued and outstanding shares
$.155/share x .76 CDN/USD
Market Cap: $28
91 million oz. silver Measured and Indicated x $17 = $1547 million
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:
====No known leverage below here=====
p. 16: As of December 31, 2018 and 2017 there were 58,770,791 and 58,770,791
respectively of common stock outstanding
Market Cap: $5.87 million
312,414,046 shares issued
$.53 x .76 CDN/USD
Market Cap: $126 million very high. 5 projects. No 43-101 compliant resources yet.