Silver Linings: Three Companies That Could Benefit From the Silver Boom

Silver spot prices have outperformed gold in 2024, rising almost 20% to test an all-time high of around US$30 at the beginning of the quarter. This rally was driven by geopolitical risks, U.S. interest rate cut expectations, and a rise in global industrial demand for silver to a fresh record high this year, according to the Silver Institute's World Silver Survey. Rising demand from "green economy applications," such as the solar industry, also supported this trend.

Overall, global demand for silver "massively exceeded" supply last year, with that deficit expected to extend into a fourth consecutive year in 2024. Analysts predict silver prices could decrease in the coming weeks after testing the 10-year high of around US$30 per ounce but are forecasted to rise to new all-time highs later in the year, potentially reaching up to US$48 due to ongoing geopolitical issues and significant elections

What Experts Are Saying

Some may be apprehensive about the silver target, but Alex Kuptsikevich, FxPro senior market analyst, isn't one of them. As he told Capex, "Silver does not look overheated, as it is only now entering overbought territory on the RSI on the daily timeframes." He noted that silver could potentially sail towards its all-time high of US$50.

In the same article, the CEO at Mind Money, Julia Khandoshko, commented on the broader bullish momentum in commodities, saying, "Today, all metals, including silver, are growing for a simple reason — cautious sentiment on global economic growth."

The hope that silver can rise beyond its current price is also shared by Michele Schneider, Director of Trading Education and Research at MarketGauge.

As she said to GoldMoney.com, "Silver's value play makes it more attractive than gold." She also stated plainly that "If silver is going to hold 29 and get through 30, I don't see any reason why we can't get to 35 eventually and 40."

Mishtalk.com credits a strong market overall in silver's rise but still notes its place in the upswing, writing, "The U.S. stock markets are all at record highs, gold is at a record high, and silver is at the highest price since 2013. Welcome to the everyone wins the market; no craps allowed."

Mag Silver Corp

MAG Silver Corp. (MAG:TSX; MAG:NYSE American) is recognized in the silver mining sector, particularly for its Tier 1 Juanicipio mine in Mexico.

This project, in which MAG holds a 44% interest, has been exceeding expectations and providing significant financial returns.

Roth MKM analyst Joe Reagor highlighted the company's strong cash position on April 3, noting, "We believe cash distributions are likely to increase in the quarters ahead, allowing MAG to consider paying a dividend by year-end 2024."

The Juanicipio mine has demonstrated impressive performance, achieving silver production and equivalent silver production of 4.5 million ounces (Moz) and 6.4 Moz, respectively, in the first quarter. This robust output underscores the mine's potential for sustained high-grade production.

Ron Struthers of Struthers Resource Stock Report described the Juanicipio mine in April as "a real cash cow" for the company, reflecting its strong financial and operational performance.

Institutions own 70% of MAG, and 30% is retail, according to the company.

Top institutional shareholders include Juanicipio operator Fresnillo Plc. with 9%, BlackRock Investment Management (UK) Ltd. with 10.8%, Van Eck Associates Corp. with 9%, First Eagle Investment Management LLC with 6.2%, and Sprott Asset Management LP with 3%, the company said.

MAG Silver has a market cap of US$1.43 billion. It has 102.97 million shares outstanding, according to Reuters. It trades in a 52-week range of US$13.47 and US$8.20.

Silver Hammer Mining Corp

Silver Hammer Mining Corp. (HAMR:CSE; HAMRF:OTCQB) is focusing on advancing its high-grade silver brownfield projects in Idaho and Nevada, according to its current May 2024 investor presentation.

The company plans to enhance its activities at its Silver Strand Mine, Eliza Silver Project, and Silverton Silver Project. These projects are located in historically productive mining districts and are 100% controlled by Silver Hammer Mining, with no underlying royalties and no further property payments required.

According to the company's most recent press release, Silver Hammer received an acknowledgment of approval of a Plan of Operations application in December 2023 from the U.S. Forest Service (USFS) for its Silver Strand Project, which was applied for in April 2023.

The company also plans on advancing by receiving approval from the USFS for its Eliza High-Grade Silver and Copper project's Plan of Operations application. They anticipate this decision by the second quarter of this year.

According to the release, "The project contains multiple historical previous high grade silver mines never subject to drilling or modern exploration. The company anticipates permitting to be completed by the end of Q2/ early Q3 2024.

As for its Silverton Silver Project, it is already permitted for drilling. With this, Silver Hammer plans to test areas around the previously existing mine in the area.

Management and insiders own ~7% of the company. According to SEDI, President and CEO Peter Ball owns 1,310,000 shares and 600,000 warrants. CFO Alnesh Mohan owns 175,000 shares and 12,500 warrants. Director Ronald Burk owns 75,000 shares, and Director Lawrence Roulston owns 600,00 shares and 50,000 warrants.

According to Reuters, Silver Hammer Mining Corp. has 54.19 million shares outstanding. The company’s market capitalization stands at CA$8 million, and, according to Market Watch, it trades in the 52-week period between US$0.0510 and US$0.2060.

Silver X Mining

Silver X Mining Corp. (AGX:TSX.V) reported strong Q1/24 financial results, reflecting a "trend of operational improvement," according to Red Cloud Securities mining analyst Timothy Lee on May 20.

The company's positive trajectory is driven by higher revenue, lower costs, and substantial operational cash flow, positioning it well for future growth.

"With costs under control, Silver X is strongly positioned to benefit from continued topline growth with production ramp-up in a strong commodity price environment," Lee wrote. Red Cloud reiterated its CA$0.75 per share target price, suggesting a 188% return on investment.

Silver X achieved Q1/24 revenue of US$4.8 million, a 10% increase quarter-over-quarter (QOQ) and 4% year-over-year (YOY). The company produced 298,000 ounces of silver equivalent (Ag eq) and sold 265,000 ounces during the quarter. Operating income improved to US$6,000, a significant turnaround from previous losses, and adjusted EBITDA rose to US$420,000.

Lee emphasized that ramping up production at Nueva Recuperada and the continued lowering of costs position Silver X for a potential stock rerating and increased investor interest.

According to Reuters, Silver X has 200.36 million outstanding shares and 171.82 million free-float traded shares.

Silver X said management and insiders own approximately 14.24% of the company. According to Reuters, President and CEO Jose Garcia owns 7.10% of the company and Vice President Sebastian Wahl owns 7.14%.

The company said institutional investors own 19%. Some listed by Reuters include Baker Steel Resources Trust Ltd. owns 9.7%, US Global Investors Inc. owns 4%, and Sprott Asset Management LP owns 1%.
Retail investors own the remaining.

Silver X has a market cap of CA$54.10 million and a 52-week trading range of CA$0.16−0.41 per share.

Important Disclosures:

1. Mag Silver Corp, and Silver Hammer Mining Corp are billboard sponsor of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Silver X Mining has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Silver X, and Silver Hammer Mining Corp
3. James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee. 
4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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