Silver spot prices have outperformed gold in 2024, rising almost 20% to test the all-time high 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 $48 due to ongoing geopolitical issues and significant elections
What Experts Are Saying
Some may be apprehensive about the target for silver, 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 $50.
In the same article, 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 it's place in the upswing, writing, "The US 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 market, no craps allowed."
Dolly Varden
Dolly Varden Silver is well-positioned to benefit from the increasing silver prices due to its high-grade silver resources and ongoing exploration activities in British Columbia. The company continues to expand its resource base and improve its project economics.
"Dolly Varden's planned 2024 exploration program could be transformational as high-priority areas remain open for expansion while untested regional targets could lead to additional deposit discoveries," wrote Marcus Giannini of Haywood Securities on May 14.
The company's existing high-grade gold and silver resource at its Kitsault Valley project includes omestake Ridge to the north and several silver-dominant deposits to the south.
"Grade, jurisdiction, and upside to resource growth sets these ounces apart from other peers in the space," noted Giannini.
Haywood outlined a production scenario with two underground mines feeding ore to a centralized processing plant, producing about 84,000 ounces of gold equivalent annually for 13.5 years. Estimated costs are US$150 million in initial capex, US$851 per ounce of gold equivalent as the all-in sustaining cost, and US$78 million in life-of-mine sustaining capital.
"Our assumed production scenario may be conservative," Giannini commented.
According to Dolly Varden's investor presentation, 48% of the company is held by institutional investors, including Fidelity Management & Research Company LLC, Sprott Asset Management LP, U.S. Global Investors Inc., and Delbrook.
44% is with strategic investors. 19% is with Fury Gold Mines. 15% is with Hecla, and Eric Sprott owns 10% himself.
The rest, 8%, is with retail and high-net-worth investors.
The company has 283 outstanding shares, a market cap of CA$296 million, and cash of CA$21 million.
According to Market Watch, the company trades in the 52-week period between CA$0.58 and CA$1.16.
Mag Silver Corp
MAG Silver Corp. (MAG:TSX; MAG:NYSE American) stands out in the silver mining sector, particularly with 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 3rd, 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$1.33 billion. It has 102.97 million shares outstanding, according to Reuters. It trades in a 52-week range of US$13.39 and US$8.20.
Silver Hammer Mining Corp
Silver Hammer Mining Corp. (HAMR:CSE; HAMRF:OTCQB) recently announced the acquisition of the Shafter Silver Mine Project in Presidio County, Texas, from Aurcana Silver Corp. The project, historically known for its significant silver grades, was acquired for US$800,000, 23 million shares, and debt settlement.
Peter A. Ball, the President and CEO of Silver Hammer, remarked last September, “The acquisition of the high-grade silver Shafter complex and permitted mine is a transformational point in Silver Hammer’s transition and goal to become North America’s next silver producer. Shafter contains an established mineral resource of approximately 10.8 million ounces of silver in the measured and indicated category and an additional inferred silver resource of approximately 6.3 million ounces.”
At the OTC Markets Metals and Mining Investor Conference, Ball emphasized the company's resilience, stating, "We’re holding our share currency or share price quite well to advance the assets I’m about to talk about.”
Technical analyst Clive Maund named Silver Hammer as a key company to watch, suggesting it is poised for future advancement, particularly if there is an influx of upside volume.
Reuters provided a breakdown of the company’s ownership and share structure, where management and insiders own 4.86% of the company. According to Reuters, former President Morgan Lekstrom owns 1.98% of the company with 1.08 million shares, director Lawrence Roulston owns 1.11% of the company with 0.60 million shares, director Michael R. Dake owns 0.95% of the company with 0.52 million shares, CFO Alnesh Mohan owns 0.32% of the company with 0.18 million shares, advisor Joness Langs owns 0.32% of the company with 0.17 million shares, director Ronald Burk owns 0.14% of the company with 0.08 million shares, and President and CEO Peter A. Ball owns 0.04% with 0.02 million shares.
According to Reuters, institutions in the form of Palos Management Inc. owns 0.55% of the company with 0.30 million shares.
According to Reuters, there are 54.19 million shares outstanding, with 51.56 million free float traded shares. Reuters reports that the company has a market cap of CA$6.03 million, and it trades in the 52 week period between CA$0.15 and CA$0.39.
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 an 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.
