2024 has been positive for silver stocks, as silver prices soared during the second quarter of 2024, breaching the US$30 mark in May for the first time since 2012.
Silver’s gains are being driven by a variety of factors. According to the Silver Institute, demand for the metal is set to outstrip mining supply for the third year in a row, due in part to rising demand from sectors dependent on the energy transition including photovoltaics and electric vehicles.
India in particular has seen demand soar as the country introduced new regulations for domestic production for new solar projects, leading the country to import more silver through the first four months of the year than all of 2023.
How has silver’s price movement benefited silver stocks on the TSX and TSXV? The five companies listed below have seen the biggest gains since the start of the year. Data was gathered using TradingView’s stock screener on July 9, 2024, and all companies listed had market caps over C$10 million at that time.
1. GR Silver Mining (TSXV:GRSL)
Year-to-date gain: 137.5 percent; market cap: C$57.8 million; share price: C$0.19
GR Silver Mining is a small-cap explorer and developer that is working to advance its Rosario Mining District in Sinaloa, Mexico, to production. The district consists of three core mining areas: Plomosas, San Marcial and La Trinidad.
The company’s primary focus has been the development of Plomosas and neighboring San Marcial, a 9,764 hectare land package that hosts a past-producing silver, gold, lead and zinc underground mine.
In March 2023, the company released an updated resource estimate for Plomosas showing total indicated quantities of 97 million silver equivalent ounces, with additional inferred quantities of 53 million silver equivalent ounces.
Shares of GR Silver saw significant gains in the first quarter alongside a rising silver price and a March 4 news release. In the announcement, GR Silver reported that it had started small bulk sampling and test mining at Plomosas.
In an update on June 27, the company provided results from the sampling program. In the report, GR Silver said it had completed 280 meters of development and processed 15,170 metric tons of material. Silver recovery rates from the samples were between 84 and 92 percent. Assays from channel sampling produced high grades, with one sample grading 1,625 grams per metric ton (g/t) silver and 14.1 g/t gold over 2.5 meters.
GR Silver’s share price reached a year-to-date high of C$0.23 on June 2.
2. Defiance Silver (TSXV:DEF)
Year-to-date gain: 108.33 percent; market cap: C$65.32 million; share price: C$0.25
Explorer Defiance Silver is working to advance its district-scale Zacatecas silver project in Zacatecas, Mexico.
The project consists of a 4,300 hectare land package and includes four project areas: San Acacio, Lucito, Panuco and Lagartos. Both San Acacio and Lagartos have seen previous exploration and mining activity.
On January 15, the company announced results from its 2023 drill program at the San Acacio target, reporting well-developed silver and zinc values with elevated gold and copper. This includes a highlighted assay of 223.53 grams per MT (g/t) silver over 12.82 meters with an interval of 306.86 g/t silver over 7.79 meters.
Defiance provided an update on April 15 on a surface-sampling campaign at the Lucita target. The results show widespread high-grade polymetallic mineralization, with Defiance highlighting grades of up to 795 g/t silver from Lucita North and 2,350 g/t silver from Lucita South. The company said the results reinforce the district-scale potential at Zacatecas.
Shares of Defiance reached a rear-to-date high of C$0.425 on May 15.
3. Endeavour Silver (TSX:EDR)
Year-to-date gain: 105.32 percent; market cap: C$1.35 billion; share price: C$5.40
Endeavour Silver is a silver company with two operating silver-gold mines in Mexico — Guanaceví and Bolañitos — an advanced-stage development project and several exploration properties.
Its primary focus for 2024 has been the development of its Terronera project in Jalisco, Mexico, which is under construction. Once complete, the new mine will become the company’s flagship operation. According to a 2023 update to its 2021 feasibility report, Terronera will produce an estimated 4 million ounces of silver per year over a 10 year mine life.
The most recent update from the project came on April 23, when the company announced construction at the site had progressed on the upper plant platform with structural steel in place for crushing, grinding and ore storage elements. The company also indicated it had reached 53 percent completion and that progress remained on schedule for mechanical installation and project commissioning in Q4 2024.
In the company’s Q2 2024 production results released on July 9, Endeavour said that its existing Guanaceví and Bolañitos mines combined for production of 4.4 million silver equivalent ounces over the first half of the year. Production is currently in line with the upper end of the company’s guidance for 2024, which is 8.1 million to 8.8 million silver equivalent ounces.
Shares in Endeavour Silver reached a year-to-date high of C$5.63 on May 27.
4. Avino Silver and Gold Mines (TSX:ASM)
Year-to-date gain: 89.44 percent; market cap: C$182.3 million; share price: C$1.35
Avino Silver and Gold Mines is a precious metals miner with two primary silver assets: the producing Avino silver mine and the neighboring La Preciosa project in Durango, Mexico.
Avino, the company’s only producing asset, features 2,500 MT per day ore-processing capabilities, and according to its management’s discussion and analysis for 2023, was responsible for the extraction of 928,643 ounces of silver, 7,335 ounces of gold and 5.3 million pounds of copper. While within the company’s guidance, there was a 6 percent decrease in silver production over 2022, when it produced 985,195 ounces in the same time frame.
In addition to its mining operation, Avino is working to advance its La Preciosa project toward the production stage. The site covers 1,134 hectares, and according to a February 2023 resource estimate, holds measured and indicated quantities of 98.59 million ounces of silver and 189,190 ounces of gold.
On February 28, the company provided an update for La Preciosa, saying it was preparing for the first phase of production at the Gloria and Abundancia veins. Avino also said it has the equipment needed to commence operations at the site once it receives the necessary environmental permits, which it expects later in 2024.
In the company’s financial highlights released on May 8, Avino reported that silver production for the first quarter of the year had reached 250,642 ounces, representing an increase of 7 percent over the same quarter in 2023. It also reported revenue of US$12.39 million, a 26 percent increase from Q1 2023.
Avino’s share price marked a year-to-date high of C$1.51 on May 26.
5. Gatos Silver (TSX:GATO)
Year-to-date gain: 77.92 percent; market cap: C$342.45 million; share price: C$1.15
Gatos Silver is a silver-focused production and exploration company. Its flagship asset is the Cerro Los Gatos mine and district located south of Chihuahua City, Mexico.
The site consists of 14 predominantly silver, lead and zinc mineralization zones, and is a joint venture with Dowa Metals and Mining, which holds a 30 percent stake in the operation; Gatos owns the remaining 70 percent.
On February 21, the company released its full-year results for 2023, indicating it had produced 9.2 million ounces of silver, marking a decline from the 10.3 million ounces produced in 2022. However, the company said it improved operational efficiencies to offset inflationary pressure, lowering all-in-sustaining costs (AISC) to the lower end of 2023 guidance.
In the release, Gatos also notes that it expects similar production totals for 2024. It is looking for a range of 8.4 million to 9.2 million ounces of silver at an AISC of US$9.50 to US$11.50 per payable ounce. The company anticipates that exploration efforts at the South-East Deeps target will further extend the life of the mine.
The most recent news from the project came on April 25, when Gatos provided an exploration update from the South East Deeps zone, with a highlighted intercept of 338 g/t silver over 8.5 meters, including an intersection of 632 g/t silver over 3.7 meters. It also said it had been working to advance greenfield exploration work at the Portigueño target in preparation for increased drilling beginning in Q2.
In an update on July 9, the company reported that production through Q1 and Q2 was near the top end of guidance with 4.67 million ounces of silver produced, an increase from the 4.43 million ounces produced in the same period in 2023.
Shares of Gatos reached a year-to-date high of C$16.91 on May 30.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
