If you’re ready to wade into the silver markets, start with the market leaders. Here are the Top 8 silver mining stocks with the highest analyst ratings. A rating of 1 is a “strong buy.” A rating of 5 is a “sell.”
|Company||Ticker||Analyst rating||YTD return|
|Silver Wheaton Corp.||SLW||1.9||-28.8%|
|Mines Management, Inc.||MGN||2||-40.4%|
|Coeur Mining Inc.||CDE||2.6||-37%|
|Silver Standard Resources Inc.||SSRI||2.6||48.6%|
|Endeavour Silver Corp.||EXK||2.7||-18%|
|Fortuna Silver Mines Inc.||FSM||2.7||-45.7%|
|First Majestic Silver Corp.||AG||2.8||-23.3%|
|Hecla Mining Company||HL||3||-17.5%|
Just one of the stocks above is in positive territory for the year: Silver Standard Resources. And what a year its had leaping up by nearly 50 percent in value.
Here’s the same group of stocks listed by market cap:
|Silver Wheaton Corp.||SLW||$5.5 billion|
|Hecla Mining Company||HL||$834 million|
|Silver Standard Resources Inc.||SSRI||$582 million|
|First Majestic Silver Corp.||AG||$439 million|
|Coeur Mining Inc.||CDE||$438 million|
|Fortuna Silver Mines Inc.||FSM||$305 million|
|Endeavour Silver Corp.||EXK||$173 million|
|Mines Management, Inc.||MGN||$8 million|
What do analysts like about the top 3 stocks on the list?
1) Silver Wheaton Corp. Hands down, Silver Wheaton has my favorite business model in the precious metals industry. Known as a “silver steaming” company, SLW helps other companies fund the development of future mines in exchange for fixed-cost silver when those mines becomes operational. That’s how SLW currently has fixed costs for silver production of $4.36 per ounce.
2) Mines Management, Inc. This one makes me nervous. Mines Management has been in danger of getting de-listed by the NYSE after its share price faltered. Additionally, the company has posted losses over the past five fiscal years. Mines Management did submit a compliance plan to the NYSE, which was accepted. The company has until the end of 2016 to get compliant. It’ll likely need an infusion of cash to do so. The company’s primary asset – the Montanore silver-copper project located in northwestern Montana – holds 166 million ounces of silver per a Canadian National Instrument (NI) 43-101 that was completed in 2011.
3) Coeur Mining Inc. Analysts currently have an average price target of $6.46 on Coeur Mining. That’s 100 percent more than the stock’s current price of $3.22. Coeur did surprise analysts with a smaller-than-expected loss last quarter. The company lost $0.11 per share vs. the consensus estimate of -$0.22. Revenue hit $166.3 million vs. an estimate of $165. “On average, equities research analysts anticipate that Coeur Mining will post ($0.76) EPS for the current fiscal year” (source).
See related: I’m a bull on Silver Wheaton: Here are 3 reasons why.