A Sneak Peek At What The Insiders Are Saying
“From a pricing standpoint, silver is historically undervalued relative to gold right now, and offers an attractive investment opportunity. We see a picture of silver fundamentals where supply trends cannot keep up with longer-term demand.” — Maria Smirnova, Sprott |
|
![]() |
“On a broad brush perspective, I wouldn’t want to be in stocks, I wouldn’t want to be in bonds, I wouldn’t want to be in real estate. I wouldn’t want to be in crypto. So where do we go? Precious metals.” — David Morgan, the Morgan Report |
“I still think gold is your answer for wealth insurance. But if you’re looking for profit, I actually skew it toward silver, and now might be a very good time”
— Rich Checkan, Asset Strategies International |
Who We Are
The Investing News Network is a growing network of authoritative publications delivering independent, unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety of markets including gold, cannabis, biotech and many others. This means you read nothing but the best from the entire world of investing advice, and never have to waste your valuable time doing hours, days or weeks of research yourself.
At the same time, not a single word of the content we choose for you is paid for by any company or investment advisor: We choose our content based solely on its informational and educational value to you, the investor.
So if you are looking for a way to diversify your portfolio amidst political and financial instability, this is the place to start. Right now.
Silver Outlook 2024
Silver Price 2023 Year-End Review
Silver has had a strong start in 2023, climbing to highs it hasn’t seen since 2020.
With both precious and industrial sides, silver faces demand from various sources. This widespread usage created a record deficit in 2022, and experts are already calling for a large shortfall in 2023; however, prices aren’t necessarily expected to react.
Here the Investing News Network (INN) presents an overview of how silver performed in the first quarter of 2023.
Silver price picks up after 2022’s frustrations
Greg Taylor, chief investment officer at Purpose Investments, told INN silver is off to a decent beginning in 2023 after it was “ignored and forgotten” for the last couple of years.
“I think people were frustrated with silver passively through 2021 and 2022,” he said, pointing to disappointment from investors who expected the precious metal to perform significantly better.
Silver price chart, January 1, 2023, to April 24, 2023.
Chart via Trading Economics.
Silver kicked off 2023 at a strong price of US$24.10 per ounce, and despite dropping to a low point of US$20.04 around the start of March, the precious metal has seen a great recovery. The white metal hit a high for the year of US$25.80 in April.
“When silver goes it really goes,” Taylor said, suggesting that times are changing for silver.
Experts project another big silver deficit in 2023
In the latest edition of its
World Silver Survey, the Silver Institute indicates that it expects a “hefty deficit” for silver in 2023. It’s calling for the market to be underserved by 142.1 million ounces (Moz), down from 2022’s record deficit of 237.7 Moz.
Last year’s deficit was driven by a lack of supply gains due to mining project declines, coupled with a marginal increase in recycling.
“That is a very, very wide deficit for any market to be dealing with,” Shree Kargutkar, managing partner at Sprott (TSX:
SII,NYSE:SII), told INN.
The Silver Institute also notes that when combined with 2021’s silver deficit, last year’s shortfall “more than offset the cumulative surpluses of the previous 11 years.” Even so, the organization doesn’t expect these fundamentals to boost the price in 2023.
Instead, the Silver Institute points out that professional investor activity tends to move the market, and notes that “institutional investment will eventually run out of steam” this year. The researchers see this happening due to a wrong assumption that the US Federal Reserve will cut rates in the second half of 2023.
Kargutkar emphasized the increasing industrial demand for silver, which is being aided in large part by the green energy technology space —
particularly solar panels.
“Given the rapid growth of photovoltaic (PV) installations, the consumption of silver powder has increased significantly over the years,” the Silver Institute states in its latest survey. “Our statistics show that global consumption of PV silver powder in 2022 reached 140.3Moz (4,365t), almost triple the level in 2010.”
The pressure on supply created by this high solar panel demand has helped to sustain the deficit in the silver market.
“There is no magic bullet here to meet the supply deficit that exists in silver right now,” Kargutkar said.
The Sprott expert explained that as investor excitement surrounding the gold builds, silver could see increased attention too.
“When you’re talking about a billion ounce market, trading at roughly US$25 … It does not take a lot of money to create very large, very sustained price moves, especially to the upside,” he said.
Investor takeaway
When it comes to the price of silver, the Silver Institute expects to see an average of US$23 for the year.
“This is based on our view that, even if the interest rate hike pace slows, the hikes will continue through to the middle of this year, and potential rate cuts (if any) will be marginal,” the researchers said.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Additional information on silver stock investing — FREE
Silver Price Update: Q2 2023 in Review
Silver saw ups and downs in 2023, but as the year draws to a close the metal’s price isn’t far from where it started. Find out what trends have moved the market over the last 12 months.
Silver saw a record deficit in 2022, and coming into 2023 some experts had high expectations for the metal.
With strong demand and reduced supply expected to continue, there were calls for silver to outperform gold. But as the fight against inflation continued, the white metal was influenced more by economic and geopolitical factors.
Increased volatility from global events impacted the silver price throughout 2023, with factors such as US banking sector instability, actions from the US Federal Reserve and instability in the Middle East all playing a role. The precious metal also reacted to swings in the US dollar, often trading inversely to the currency.
The metal now looks set to end the year at the same place it began, posting a slight year-to-date gain of 0.33 percent as of December 19. Read on to learn more about what trends impacted the silver sector in 2023.
Silver price in Q1
Silver traded around the US$24 per ounce mark throughout January, but fell significantly at the start of February, impacted by US dollar strength and rising Treasury returns. It hit a 2023 low of US$19.99 on March 8.
However, the downtrend in silver reversed that same day as the US regional banking crisis began. It ultimately led to the failure of three US banks and the bailout of Credit Suisse, with the resulting turmoil sending investors to the safety of precious metals like silver and gold. Silver had risen back to the US$24 range by the end of the month.
Silver price from January 3, 2023, to December 20, 2023.
Chart via Trading Economics.
Silver price in Q2
With the banking crisis continuing to loom, investor confidence in securities still low and the US dollar slumping, the price of silver continued to increase through early Q2 to hit a year-to-date high of US$26.07 on May 4.
Silver started to decline once again in the days after the Fed hiked interest rates to 4.75 to 5 percent on May 3. The white metal reached a quarterly low of US$22.23 on June 21.
Silver price in Q3
Silver remained volatile during Q3. Its first major price move came on July 11, when it spiked following declines in the US dollar; this came on speculation that the Fed would raise interest rates amid stubborn inflation and a flat jobs report. The Fed’s final hike of the year came on July 26, and it brought rates to 5 to 5.25 percent.
Silver and other precious metals declined once again at the start of August as the US dollar strengthened on the back of strong economic news that showed an improving labor market and weaker but more stable manufacturing numbers. While silver fluctuated between US$22 and US$25 for most of the quarter, it ended Q3 on a low note.
Silver price in Q4
The price of silver slipped to US$20.93 on October 4 on the back of instability in the Chinese real estate market. This volatility contributed to a broader rout of the commodities markets, with the S&P GSCI (INDEXSP:SPGSCI) losing 6.3 percent between September 27 and October 4.
On October 7, coordinated deadly attacks by Hamas on Israeli targets and civilians marked a sudden escalation in the long conflict between the two entities. The violence and continued conflict sent investors fleeing for the safety of precious metals once again, driving the price of silver back up to US$23.35 by October 19.
Silver held steady through to the middle of November before spiking once again following remarks from Fed Chair Jerome Powell — some believed his comments indicated that rate cuts could be on the horizon. The metal ultimately reached US$25.48 on November 30, short of its year-to-date high set in Q2.
Silver supply and demand in 2023
Due to its role as both a precious and industrial metal, silver is key for investors looking for a safe haven, as well as the production of many consumer and industrial products. However, its industrial side has been in focus in 2023.
Silver demand is expected to outstrip supply again in 2023, driven primarily by a projected record high in industrial demand. According to the Silver Institute, which works with Metals Focus to provide industry data, industrial demand is set to hit 632 million ounces for the year, while total silver demand will reach 1.14 billion ounces.
The growth in industrial demand has been led in part by silver’s use in photovoltaic (PV) cells, also known as solar cells. Demand from this segment is projected to hit 161.1 million ounces in 2023, up 15 percent over 2022. The metal’s high reflectivity and good conductivity make it particularly useful when it comes to the production of solar cells, which are used to form solar panels. This demand has been driven by multiple factors, including China investing more than US$50 billion in the industry between 2011 and 2022. Large-scale production has pushed the cost for utility-scale solar below that of coal and natural gas, helping strong demand from the retail sector for solar micro-generation.
But it’s not just PV cells contributing to increased industrial demand for silver. Of the 382.3 million ounces of demand the Silver Institute is projecting for the production of electrical and electronic components, 221 million ounces are expected to be consumed by the information technology and telecommunications industries. The metal’s applications there include printed circuit boards and thermal compounds, making silver critical for 5G networks.
Silver has other industrial uses as well, with around 50 million ounces being used annually in brazing alloys and solders. Another 144 million ounces of demand comes from a variety of industries, including another sector that’s driving increased usage: the automotive industry, including the production of electric vehicles.
Of course, while over half of silver demand comes from industrial sources, the metal also sees consistent and strong demand from its precious side. The Silver Institute is forecasting that jewelry demand will reach 182 million ounces in 2023, while silverware will come in at 39 million ounces. Physical investment is projected to end the year down from 2022’s high of 332.9 million ounces, but will still capture 263 million ounces of demand for the white metal.
On the supply side, mines are expected to produce 820 million ounces of silver by the end of the year, a slight decrease from the 822.4 million ounces mined in 2022. Combined with recycled sources, total silver supply is predicted to come in at about 1 billion ounces, creating a deficit of 140 million ounces in 2023. While that’s lower than 2022’s record deficit of 253 million ounces, the Silver Institute notes that it is high by historical standards and is likely to persist into the future.
Silver M&A activity in 2023
Part of the reason silver supply is hard to come by is that the metal is largely produced as a by-product. It is primarily mined with other metals, particularly gold, lead, zinc and copper, with dedicated silver mines accounting for only 27.8 percent of global supply. But that doesn’t mean there isn’t any growth in terms of mine supply.
Hecla Mining (NYSE:HL) is focused on achieving commercial production at its Yukon-based Keno Hill mine, which it received as part of its acquisition of Alexco Resource in September 2022. Keno Hill was previously a longtime silver producer, and the site hosts proven and probable reserves of 49 million ounces of silver. While ramp up at the site has been slower than originally expected, as of the end of Q3 the processing of stockpiles through the on-site mill had produced 894,276 ounces of the metal; throughput is expected to increase substantially moving forward.
Aya Gold and Silver (TSX:AYA,OTCQX:AYASF) has been working on the construction of an expansion to its Zgounder silver mine in Morocco. In its update for the quarter ended on September 30, it announced the project was proceeding on schedule and was 66 percent complete as of mid-November. If everything stays on schedule, commissioning and production ramp up will begin in the first half of 2024, and commercial production will begin in Q3. Once it is fully ramped up, the expansion will bring annual production at the site from 1.7 million to 7.9 million ounces of silver per year.
On the consolidation side, Pan American Silver (TSX:PAAS,NYSE:PAAS) and Agnico Eagle Mines (TSX:AEM,NYSE:AEM) finalized their acquisition of Yamana Gold on March 31. Under the terms of the deal, Pan American assumed control of Yamana’s Latin American assets, adding to its portfolio the El Peñón gold-silver and Minera Florida gold-silver-zinc mines in Chile, and the Cerro Moro gold-silver mine in Argentina. In Q2 and Q3 alone, the three assets produced a combined 4.92 million ounces of silver, with El Peñón and Cerro Moro each contributing over 2 million ounces.
Investor takeaway
While silver experienced plenty of volatility in 2023 due to competing headwinds and tailwinds, it didn’t see the breakout some expected. Instead, it looks ready to end the year in largely the same place in which it started.
Looking ahead to 2024, it’s possible silver will fare better as the Fed prepares to potentially take rates lower. A more positive price environment would in turn help explorers and producers move forward at their operations.
“Many silver miners have been struggling for lack of investor interest, but this has been most pronounced in the silver juniors. It’s a very challenging environment for them, especially with higher interest rates, making capital expensive,” Peter Krauth of the Silver Stock Investor said in an interview with Investing News Network. “Those quality companies that will survive this cycle currently make for extremely compelling investments, as they are true bargains right now.”
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Additional information on silver stock investing — FREE
Silver Price Forecast: Top Trends That Will Affect Silver in 2024
Silver experienced its usual volatility in 2023, ultimately ending the year flat. Will 2024 bring a different story for the white metal?
Silver’s tight supply/demand story had analysts optimistic about 2023, but high interest rates and US dollar strength kept the metal in check. As the year finishes, it looks set to end the period close to where it began.
The start of 2024 isn’t dissimilar. Silver is set to record a large deficit in 2023, but with the US Federal Reserve looking to keep rates higher for longer, the precious metal could continue to face headwinds in the new year.
To find out more about the silver forecast, the Investing News Network (INN) asked experts what they expect moving forward. Read on to find out what they had to say about silver supply, demand and prices in 2024.
What is the silver supply and demand forecast for 2024?
While silver has long been valued as a precious metal, its high reflectivity and very good electrical conductivity have made it indispensable in photovoltaics, as well as electronics and other industrial applications. All told, the Silver Institute expects industrial demand to reach 632 million ounces in 2023 against total demand of 1.14 billion ounces.
The rest of that demand will come from the jewelry and silverware industries, as well as photography and physical investment. With supply set to reach just over 1 billion ounces, a 141 million ounce deficit is anticipated for 2023.
The 2023 silver deficit will be the third in a row, and the Silver Institute doesn’t expect relief any time soon, even with new projects in the works. Those include Aya Gold & Silver’s (TSX:AYA,OTCQX:AYASF) Zgounder mine expansion, which will add about 3 million ounces in 2024 before seeing an increase to 6 million ounces in 2025. Meanwhile, Endeavour Silver (TSX:EDR,NYSE:EXK) is in the process of building its Terronera mine — although it should be complete by the end of 2024, its annual production of 4 million ounces of silver won’t be available until 2025.
Weighing in on supply, Peter Krauth of Silver Stock Investor told INN he doesn’t see much growth in silver production through 2024 and beyond. “Recent research from Bank of America (NYSE:BAC) based on guidance from the largest silver producers suggests that mined silver supply peaked in 2016 and will not match that level again anytime soon,” he said.
The Silver Institute’s Michael DiRienzo told INN the current silver price isn’t incentivizing greenfield exploration. “Much of the development in exploration is seen in brownfield exploration to increase reserves and extend mine life,” he said.
DiRienzo also noted that a change in mining laws in Mexico could further challenge activities. Mining concession length has been reduced from 50 to 30 years, and concessions can be canceled if no work is completed within two years.
For his part, Krauth said companies like Aya Gold & Silver, Dolly Varden Silver (TSXV:DV,OTCQX:DOLLF), Summa Silver (TSXV:SSVR,OTCQX:SSVRF) and Blackrock Silver (TSXV:BRC,OTCQX:BKRRF) have produced strong exploration results; however, these ounces aren’t likely to enter the pipeline soon. “The problem is much of the silver being found will not find its way into production for years and, even then, will only partly offset depleting reserves,” he noted.
Protests, particularly in Latin America, could also impact silver supply. Even though it’s slowed, recent unrest in Panama over First Quantum Minerals’ (TSX:FM,OTC Pink:FQVLF) Cobre Panama copper mine highlights just how quickly situations can turn. “It’s difficult to say if this trend will continue as we cannot predict unforeseen disruption. However, this is a risk in silver supply given that just Peru and Chile comprise 18 percent of global silver output,” DiRienzo said.
Krauth shared a similar sentiment. “The largest single event was probably the four month strike at Newmont’s (TSX:NGT,NYSE:NEM) Penasquito mine in Mexico. Although this is primarily a gold mine, it produces an impressive 30 million ounces of silver per year. That doesn’t sound like much compared to 800 million ounces of silver mine supply, but the market is already in a substantial annual deficit position, so this production loss is material.”
What factors will move the silver market in 2024?
Of course, there’s more to the silver market than supply and demand. As gold’s sister metal, silver is affected by many of the same economic and geopolitical factors that move the yellow metal, and interest rates are at the top of the list.
Inflation took off following COVID-19, and the Fed has set a goal of bringing it back down to the 2 percent level. However, given that the latest consumer price index reading came in at 3.1 percent, it’s still far from that target. And in a December 13 statement, Chair Jerome Powell indicated he doesn’t think inflation will get there until 2026.
He also noted that while the Fed is halting rate hikes for the time being, further increases haven’t been taken off the table as the central bank takes a wait-and-see approach. “While we believe our policy rate is likely at or near its peak for this tightening cycle, the economy has surprised forecasters in many ways since the pandemic, and ongoing progress toward our 2 percent inflation objective is not assured. We are prepared to tighten policy further if appropriate; we are committed to achieving a stance of monetary policy that is sufficiently restrictive to bring inflation down to 2 percent over time and to keeping policy restrictive until we are confident inflation is on a path to that objective,” he said.
DiRienzo sees pricing for silver largely being determined by institutional behavior, which will be influenced by what the Fed decides to do in 2024. “The Fed has indicated that it will only reduce rates by around 25 (basis points) in 2024, while the market expects the Fed to adopt a far more dovish interest rate policy next year. However, we believe that the Fed will maintain its more hawkish policy throughout next year, and as the market shifts towards the Fed’s stance this will lead to investor liquidations, which in turn will weigh on silver, sending it toward the US$20 level,” he said.
On a more positive position, Krauth sees the conditions being right for silver to rally in 2024. “One of the most significant (events) for me was when we saw almost the entire US Treasury yield curve peak above 5 percent in mid-October,” he said. “Since then, we’ve had the US Dollar Index peak at 107. Both of these have fallen considerably since, I believe on the market’s view that the Fed has stopped hiking rates, with the expectation that rate cuts will come sometime in 2024.”
He also made a comparison to the gold market, commenting, “As well, since mid-October silver stocks have been outperforming gold stocks — also a bullish sign for the sector. I expect gold to keep making new highs and for silver to continue to rally well into 2024.” Krauth thinks silver could move close to the US$30 mark in the second half of the year.
Investor takeaway
Silver has slowly been securing its position as an industrial metal over the last decade, but it hasn’t lost its shine as a counterpart to gold. This has at times pulled the metal in opposite directions, and means that in 2024 silver investors will have to watch supply and demand trends, as well as economic and geopolitical forces.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Prismo Metals and Silver North Resources are clients of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Additional information on silver stock investing — FREE
Peter Krauth: “Tremendous” Opportunities in Silver, Price Outlook into 2024
“I think that patience will absolutely be rewarded in this market,” said Peter Krauth of Silver Stock Investor. “It’s an excellent time for people to be doing their research, to start nibbling on some of these companies.”
Peter Krauth, publisher of Silver Stock Investor, spoke to the Investing News Network about silver supply and demand dynamics, as well as where the white metal’s price may be headed for the rest of 2023 and into 2024.
He believes movement is coming, but said investors shouldn’t expect it to happen quickly.
“I think that patience will absolutely be rewarded in this market,” Krauth said during the interview. “It’s an excellent time for people to be doing their research, to start nibbling on some of these companies. There are some really tremendous opportunities out there, so it’s time to really get your homework done and start participating.”
In terms of supply, he said issues in top producers Mexico and Peru will put a dent in output this year.
“The world’s two largest silver-supplying countries are seeing multi-year lows in supply, and the prospects for new silver mines to come on stream — to be discovered, approved, financed, built and come onstream — we’re talking 10 to 15 years these days,” he said.
Meanwhile, the solar sector is supporting demand in the face of weaker buying from investors.
“We cannot underestimate what is happening, we cannot ignore what is happening in the solar sector when it comes to the silver market,” Krauth emphasized. “It really is a huge impact on demand for silver.”
According to the Silver Institute, the market was in deficit by a substantial 237.7 million ounces last year, and the organization is predicting a shortfall of 142.1 million ounces in 2023. When asked if he expects that to play out, Krauth said he believes the Silver Institute will revise this year’s deficit figure upward.
“I think that people really do need to realize that stocks and bonds have had their time … they need to realize that we’re in a new age — it’s an inflation age unfortunately — and to look for the ideal ways to play that. Commodities and precious metals are ideal in this kind of an environment,” said Krauth. “And so don’t be too influenced by the recent past — the future is going to be considerably different from what people have experienced recently.”
Watch the interview above for more of his thoughts on silver supply, demand and prices.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Additional information on silver stock investing — FREE
Rich Checkan: Gold is Insurance, but Silver Has “Amazing” Profit Potential
“I still think gold is your answer for wealth insurance. But if you’re looking for profit, I actually skew it toward silver, and now might be a very good time,” said Rich Checkan of Asset Strategies International.
Rich Checkan, president and COO of Asset Strategies International, shared his thoughts on what it will take for the gold price to rise, saying that right now retail investors just aren’t involved in the sector.
“Central banks are still very strong, but the investors are not in this market,” he told the Investing News Network on the sidelines of the New Orleans Investment Conference. “I don’t see us going above US$2,000 (per ounce) and sustaining prices above US$2,000 without investors in the marketplace — they’re actually right now selling and not buying.”
Explaining his stance, Checkan said gold needs participation from middle-class buyers to move higher. And for that to happen, people who are part of that segment of the market need to feel better about their finances.
That’s unlikely to happen until the US Federal Reserve starts lowering rates after its intense hiking cycle.
“The Fed is breaking banks, they’re breaking the backs of the middle class — they’re doing a lot of breaking, but it’s not dancing,” he quipped. “So where does this change? I think when the Fed starts lowering interest rates. I think that’s when we start to see some relief for the middle class, when we potentially start to see some relief for the banks.”
Looking over to silver, Checkan said that while gold moves first the white metal ultimately tends to outperform.
“If you can catch silver at the lower levels before it outpaces gold, the profit potential is amazing,” he said during the conversation. “I still think gold is your answer for wealth insurance. But if you’re looking for profit, I actually skew it toward silver, and now might be a very good time.”
Watch the interview above for more from Checkan on gold and silver. You can also click here for the Investing News Network’s full New Orleans Investment Conference playlist on YouTube.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Additional information on silver stock investing — FREE
Top 5 Canadian Silver Stocks of 2023
Which silver stocks are the top performers so far this year? We’ve compiled a list of the top TSX- and TSXV-listed silver stocks to guide investors.
The silver market is facing an estimated deficit of 140 million ounces in 2023 as supply falls short of demand.
Even so, silver remained relatively rangebound throughout the year, fluctuating between US$20 and US$26 per ounce. Despite its duality as an industrial and precious metal, silver largely moved alongside the gold price in 2023, with influences including the US banking crisis at the start of the year and the Israel-Hamas war at the end of the period.
Higher interest rates also impacted silver this past year, keeping a lid on the metal’s price and creating a tough environment for silver equities. However, some silver-focused companies did rise higher in 2023.
The five TSX- and TSXV-listed companies below had seen the biggest share price gains year-to-date as of December 8, 2023, and all had market caps over C$10 million at that time. Data was gathered using TradingView’s stock screener.
1. Hercules Silver (TSXV:BIG)
Company Profile
Year-to-date gain 706.25 percent; market cap: C$165.81 million; current share price: C$1.29
Hercules Silver is a junior miner focused on the exploration and development of its namesake asset, which is located northwest of Cambridge, Idaho. Acquired in 2021, the Hercules property hosts a disseminated silver-lead-zinc system that was in production up until 1920. The most recent exploration at the site took place in 1988.
Shares of the company have been on the rise since October 10, when results from the first blind drill hole at the site exceeded expectations, intersecting 185.29 meters of 0.84 percent copper, 111 parts per million molybdenum and 2.6 grams per metric ton (g/t) silver from 246 to 431.2 meters, including 45.33 meters of 1.94 percent copper. The results confirmed the presence of a large system, which Hercules said is the first significant copper porphyry system in Idaho.
Hercules built on these results when it announced on November 1 that near-surface intercepts at the site had revealed a 25.14 meter interval grading 195.2 g/t silver, 0.21 percent lead, 0.33 percent zinc, 0.24 percent copper, 5.9 percent manganese and 302 parts per million antimony. CEO and Director Chris Paul stated in a press release, “What began as a primary drilling target for this season has now evolved into just the upper levels of a much larger system and the presence of critical minerals adds further encouragement from a permitting standpoint in the U.S.”
Following this news, on November 6, the company entered into a non-brokered private placement agreement with Barrick Gold (TSX:ABX,NYSE:GOLD) for C$23.39 million, with Barrick to receive 12.33 percent of Hercules’ issued and outstanding shares on a non-diluted post-transaction basis. Hercules said the investment supports and validates the Hercules property, and will allow the company to leverage Barrick’s experience and technical expertise.
2. Canuc Resources (TSXV:CDA)
Company Profile
Year-to-date gain: 170 percent; market cap: C$18.9 million; current share price: C$0.135
Canuc Resources is focused on the construction of a mine at its San Javier silver-gold project in Sonora, Mexico. The site consists of 28 contiguous claims over 1,052.9 hectares, with the most recent set of claims being acquired on July 11. The company said at the time that this addition to its claim group provides it with comprehensive coverage of an area surrounding the largest magnetic-high anomaly detected during a magnetic survey in 2021.
Aside from San Javier, Canuc also owns the MidTex natural gas project in Texas. The property consists of eight producing natural gas wells that the company uses to provide steady, long-term cash flow.
Shares of the company surged during the May to June period following the May 30 release of Canuc’s interim financial statement for the period ended on March 31. In it, the company notes that its assets had more than tripled compared to the preceding period — it increased them from C$145,131 to C$744,032 while decreasing liabilities.
On July 4, Canuc announced it had raised C$2 million via a private placement. The company said it intended to use the proceeds for exploration at San Javier and to develop its MidTex asset. The improvement in Canuc’s financials was further reinforced through statements released on August 29 and November 29.
3. Gatos Silver (TSX:GATO)
Company Profile
Year-to-date gain: 42.7 percent; market cap: C$559.66 million; current share price: C$8.02
Gatos Silver is a silver-focused production and exploration company. Its flagship asset is the Cerro Los Gatos mine and district south of Chihuahua City, Mexico. The site consists of 14 predominantly silver, lead and zinc mineralization zones.
Shares of Gatos have seen volatility this year, with the largest gains coming on March 30, when the firm released its financial results for the first three quarters of 2022. In the announcement, Gatos indicated that revenue was up 23 percent to US$218.7 million for the period, while net income grew 27 percent to US$53 million. However, the company announced on March 31 that it would be refiling those and other financials and would delay filing its 2022 annual report.
Gatos shares reached a yearly high of C$9.68 on April 10, but began to decline following an announcement on April 17 that the filing of its financial statements would be further delayed until May 15; when that day came, Gatos announced that the filing of its statements for 2021, 2022 and the first quarter of 2023 would be further delayed until May 31.
Shares began to rise again following announcements on June 26 and 27 that Gatos had completed its filings for 2021 and 2022, along with Q1 2023. The company released its financial results for Q2 on schedule on August 8, reporting a 2 percent year-on-year improvement in revenue, but substantially lower net income, down 78 percent.
The company’s share price saw another swing upward starting in late August. On September 6, Gatos released an updated mineral reserve estimate, mineral resource estimate and life-of-mine plan for the Cerro Los Gatos mine. According to the release, the asset’s life was extended by 2.75 years to the end of 2030, with average lifetime annual production pegged at 6.6 million ounces of silver, 65 million pounds of zinc and 47 million pounds of lead.
In its most recent release on November 6, Gatos reported mixed financial results for Q3, including a 9 percent year-on-year decrease in revenue and a 16 percent improvement in net income. The company also said it would increase its full-year 2023 silver production guidance by 16 percent, and noted that it remains debt free with a strong cash balance.
4. Bayhorse Silver (TSXV:BHS)
Company Profile
Year-to-date gain: 12.5 percent; market cap: C$10.22 million; current share price: C$0.045
Bayhorse Silver is a silver-focused company that is currently working to bring the Bayhorse silver mine in Oregon, US, back online. The mine was originally in operation until late 1984, but shut its doors when the price of silver dropped to under US$6. Historic sampling during the 1980s identified grades of 2,146 g/t silver, and a bulk sampling program conducted by Bayhorse in 2014 found bonanza grades of 150,370 g/t silver.
Permits for operating the mine were previously rejected by Oregon’s Department of Geology and Mining Industries, which cited deficiencies in the company’s application. Bayhorse said back in June that it was reviewing the baseline data in the submission and would be reapplying for the permits later in the year.
Shares of Bayhorse have been rising in recent weeks, and the company has said the surge may be tied to positive news from Hercules Silver, whose Hercules project is just 44 kilometers from the Bayhorse site.
Gains were further supported with news on November 14 that the company had begun mobilizing for an underground drilling program at Bayhorse. The initial program will test the 300 foot strike length of the Big Dog target.
5. Aya Gold & Silver (TSX:AYA)
Company Profile
Year-to-date gain: 7.41 percent; market cap: C$1.25 billion; current share price: C$10
Aya Gold & Silver is a mining, exploration and development company focusing on assets in Northwest Africa. Its flagship operation is the Zgounder silver mine located in the Anti-Atlas mountains of Morocco. As of the end of September, an expansion of the mine to boost production to 6.8 million ounces of silver a year was 60 percent complete.
Additionally, Aya has several exploration projects it has been working on this past year: its 85 percent owned Boumadine gold-silver-lead-zinc project and wholly owned Tirzzit copper-silver-gold project, both of which are also located in the Anti-Atlas mountains, and its 75 percent owned Tijirit gold project in Northwest Mauritania.
Aya’s share price saw the biggest gains following news on February 22 that construction of the Zgounder expansion was proceeding on schedule. This was followed with additional news from the site on February 28, when Aya released drill results confirming the extension of high-grade silver mineralization outside of the current resource envelope. The report highlighted an intercept of 9,234 g/t silver over 4 meters within 7.5 meters grading 4,980 g/t silver.
Aya hit a year-to-date high of C$11.28 on March 29 after sharing positive 2022 results. It reported an 11 percent year-on-year increase in revenue to C$38.2 million, and a 28 percent increase in silver sales to 1,935,154 ounces.
Despite the extension of a mineralized trend at Boumadine by 400 meters in July, along with positive exploration results from Zgounder and Tijirit, and the acquisition of the historic Tirzzit copper mine and good Q2 results, shares of Aya slumped through the middle two quarters of the year, reaching a year-to-date low of C$6.75 on October 4. The company saw a slight boost on September 12, when it was recognized by the TSX as a top performer for the third consecutive year.
Aya saw its final big gain of the season following the release of strong Q3 production and financial results on November 14. In the report, Aya said it produced 519,085 ounces of silver during the period. The company also saw a 63 percent year-on-year increase in revenue to C$11.7 million, and reported record cash flow of C$7.7 million for the quarter.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Additional information on silver stock investing — FREE
Credit: Source link