Ravitaliy
Below is a list (24 stocks) of my favorite gold and silver mining stocks, along with a short paragraph on why I like each one. They are in alphabetical order.
I’m writing these paragraphs today (10/17/2022) mostly from my memory (I had to check a few project names and deposit sizes). I know all of these stocks very well and have followed most of them closely for years.
If you have a stock that should be on this list, please include it in the comments with your reason why. I will give you a reply if it should have been included, or why it is not.
As a caveat/disclaimer, recognize that all gold and silver mining companies are speculative investments due to the high-risk nature of precious metals mining. Only invest what you can afford to lose.
Argonaut Gold (OTCPK:ARNGF)
A mid-tier gold producer. They focus in the Americas, mostly in North America and Mexico. Have built several mines. Management tends to be conservative, but took a big bite with their latest large gold project (Magino in Canada). The cost overruns have crashed the stock and added higher risk. However, Magino should be a game-changer for the company and propel them to a much higher valuation.
Aris Mining (OTCQX:TPRFF)
This is really GCM Mining, which recently acquired Aris Mining and took their name. They have a solid high-grade underground mine (Segovia) in Colombia, which has a long life and generates substantial FCF (free cash flow). They are leveraging that mine to build three more: Toroparu in Guyana (200K production), Maramoto in Colombia (175K production), and Sote Norte in Colombia (225K production). The red flag is potential permit issues in Colombia, which adds risk.
Aya Gold & Silver (OTCQX:AYASF)
They have a fantastic high-grade silver mine (Zgounder) in Morocco. They are currently producing 2M ozs and are on schedule to increase that 8M ozs in 2024. Plus, their second silver mine (Boumadine) could be as large as Zgounder. I like the grade, the team, and the location. I think this company is under the radar.
Chesapeake Gold (OTCQX:CHPGF)
Chesapeake has 18M ozs of gold and 500M ozs of silver. It’s a huge project in Mexico. The problem is the timeline until production and then the additional wait for ramp-up. It is so big that they have to build it in phases. So, full production will not come until around the end of the decade. If you don’t mind waiting, the payoff could be big.
Coeur Mining (CDE)
There are not that many quality mid-tier gold producers in the world. Many investors would laugh at me calling them a quality producer; however, they have quality properties and a very experienced management team. It’s a stock that tends to do poorly during bear markets and well during bull markets. So, it’s a stock I want to own for the coming bull market. Plus, it’s large enough to attract a lot of institutional money when gold blasts off.
Discovery Silver (OTCQX:DSVSF)
Discovery Silver has a huge silver project (Cordero) in Mexico. It has 1.5B oz’s at 60 gpt. It’s low grade, although they will begin mining the higher grade (about 500 million ozs at 90 gpt AGEQ). They will release a feasibility study in 2023 and will find out the capex and how much they will begin mining in phase 1. Development projects are high risk because they can get taken out before first pour, have cost overruns, and various other problems. But I love this project if they can get to first pour.
Dundee Precious Metals (OTCPK:DPMLF)
I like Dundee for mainly one reason, strong FCF. They are a large mid-tier gold producer and have low costs. Plus, they are cheap, with plans to nearly double production. Their mines are not in great locations in Eastern Europe, but they haven’t had any issues so far. Plus, they have large gold resources and a solid management team.
Endeavour Silver (EXK)
It’s becoming difficult to find pure silver miners, with Endeavour Silver one the last ones standing. Plus, they are currently developing two large silver projects, which will lower their costs and make them well-positioned for higher silver prices. Some investors will balk at their current break-even costs, which are over $20 per ounce, but their costs will be coming down. Plus, it will likely be an investor favorite when silver runs. It’s a stock I want to own for the coming silver bull market.
Equinox Gold (EQX)
Equinox is Ross Beaty’s swan song. He wants to build it into a large major, and I think he will succeed. I met with them at the Beaver Creek conference and was very impressed with their properties. They have at least four projects that are basically district-sized, with the potential to add a lot of ounces. This is a company that will be growing in size, both production and market cap.
First Majestic Silver (AG)
Currently, First Majestic actually has more gold revenue than silver revenue. I do not expect that to continue for very long (unless they buy another gold mine). Amazingly, this is growth stock, with production scheduled to jump from 34M AGEQ oz’s to 45M to 50M by the end of 2024. That production growth is not built into their share price. If they can fix Jerritt Canyon (and I think they will), this stock has big upside potential.
Fortuna Silver Mines (FSM)
Fortuna has become primarily a gold miner after their acquisition of Roxgold. They have two gold mines and two silver mines, and are building a third gold mine. The good news is that the gold mines they recently acquired will generate a lot of FCF. Those two mines alone (Yaramoko and Seguela) are worth more than their market cap. But they are in West Africa, where investors are hesitant to invest. This could keep Fortuna’s multiple below their peers. Plus, permit issues at their silver San Jose mine are unresolved.
GoGold Resources (OTCQX:GLGDF)
They have one of the best silver projects in the world at Los Ricos in Mexico. Plus, they are in production at their Parral tailing project, generating FCF to fund Los Ricos drilling and development. The risk with GoGold is waiting for Los Ricos to get built. It will be built in phases, with Los Ricos South first and then Los Ricos North second. Consider this a long-term investment, and let’s hope they don’t get taken out before both phases are built.
Guanajuato Silver (OTCQX:GSVRF)
This is a new company that is off to a terrific start. First, they bought an old producing mine (Pinguico), which has exploration potential in the Guanajuato district in Mexico. Then they bought the El Cubo mine, located next to Pinguico, from Endeavour Silver. Finally, they acquired the San Agnacio and Valencia mines from Great Panther in Guanajuato, along with the Topia mine in Northern Mexico. They are currently producing 3M ozs and plan to ramp up to 6M ozs next year. They have quickly become a player and have aspirations for growth.
Hecla Mining Company (HL)
Hecla has been floundering a bit the last few years, which they tend to do during bear markets. However, they have quality properties, and like Coeur, tend to do well during bull markets. They are a large mid-tier producer and attract money from institutional investors. They tend to be undervalued with high leverage to the silver price, which is true today. Also, their recent acquisition of Alexco improves the company and adds FCF. This is a stock you want to own when silver runs.
Hochschild Mining (OTCQX:HCHDF)
I like Hochschild simply because it is so cheap. It has location risk, with most of their mines in Peru, Chile, and Argentina. Plus, it has some permitting issues. These are the reasons it is so cheap. But they have a solid management team with a lot of experience and very large resources to grow production. I like their leverage to higher gold/silver prices. Like First Majestic, Coeur, and Hecla, they produce a lot of gold to go with their large silver resources. All four of these companies are similar. I want to own all of them and see which ones perform the best.
i-80 Gold (IAUX)
For my next Seeking Alpha article, I was considering doing a single company, and i-80 was the company I had chosen. However, I decided to do this article instead, which I thought added more value. I recently met with i-80 at the Beaver Creek conference and was impressed. All of their properties are in Nevada, which reduces their location risk. Plus, most of their properties are district-sized, with a plethora of drill targets. Like Equinox, who spun-out and created this company, their DNA is aggressive production growth. I’m not sure which company I like better, i-80 or Equinox. Both are impressive and heading in a good direction. All they need are higher gold prices (and time to build their development projects) to reward shareholders.
K92 Mining (OTCQX:KNTNF)
K92 has an amazing high-grade gold property (Kainantu). They currently have 5 million oz at 9 gpt, and it is growing in size. Production will increase to 300,000 oz’s in 2024, but it will keep increasing. They think they will be finding gold for another ten years (100,000 acres for exploration at Kainantu). Their break-even costs are low, and they generate a lot of FCF. They don’t have any debt. It’s a beautiful story. The only risk is the location, which is Papua New Guinea.
Orla Mining (ORLA)
Orla is a relatively new company (the chart goes back to 2018). They have 11 million ozs of gold and are a low-cost producer. They will generate FCF and steadily increase production. They have two large open pit projects. One (Camino Rojo) in Mexico and another in Panama (Cerro Quema). They built their starter pit to produce 100K ozs a year, and now they will grow production. They have 42% insiders. This should keep them from being acquired.
Osisko Mining (OTCPK:OBNNF)
If you have been reading from top to bottom, the one theme you probably picked up on was quality and size. Most of these companies are juicy with a lot of potential to do well at higher gold/silver prices. Osisko Mining has a quality project (Windfall Lake) in a good location in Canada. This project is a slam dunk because of its low cash costs. It’s already 7 million oz’s at 7 gpt and is growing in size. The CEO said it is almost guaranteed to have more than 10 million oz’s. The PEA calls for 300,000 oz’s of production, but it will be increased. The negative is no production until 2025.
Pan American Silver (PAAS)
All of you should be aware of this stock. It is the pre-eminent silver producer. However, currently they have more gold revenue than silver. That could easily change if they are able to restart their large Escobal silver mine in Guatemala, and are able to permit their large Navidad silver project in Argentina. So, if you own this stock, you get the optionality of one of these two projects producing. Plus, they have one of the best management teams, and will find a way to grow production.
Regis Resources (OTCPK:RGRNF)
Regis is a large gold mid-tier producer in Australia. I want to own some Australian gold producers (silver producers are rare in Australia) because I believe they will sell at a premium due to the low-risk location. Regis has large resources, strong FCF, and a good management team. Also, it is not as pricey as some of the other Australian gold producers.
Silver X Mining (OTCQB:AGXPF)
This is the one stock on my list that perhaps is a stretch to be on the best-of-the-best list. They are a small silver miner in Peru and do not have enough resources to become a mid-tier producer at this time. However, they have enough resources to become a 4M oz producer, and I think they will find more silver. Plus, like Guanajuato, they have aspirations to grow production. I don’t know if they will make it to becoming a 10M oz producer, but I think they will come close. So, I want in early, and they are currently cheap.
SilverCrest Metals (SILV)
SilverCrest is juicy because they just began mining. Their Las Chispas mine is one of the best silver projects in the world. They are currently ramping up production and getting ready for their first sale of silver. They will be ramping up to 10 million ozs of AGEQ production, and it is a low-cost mine. Plus, it’s still cheap because of today’s low silver prices. It has 100 million ozs at 600 gpt. They are excellent at exploration, so I expect Las Chispas resources to grow in size. I hope they get an opportunity to grow into a large company and are not acquired by a Major.
Westgold Resources (OTCPK:WTGRF)
Westgold is a mid-tier gold producer in Australia. I think it is important to own several Australian gold producers because of the low-risk location. I think the FCF multiples for these companies could explode. Westgold has large resources and is generating FCF. They have a new management team that seems to have a good plan. I met with them at the Beaver Creek conference and was surprised at how much I liked their potential. I already owned the stock, but I liked it a lot better after that meeting.
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