2024 has been positive for silver stocks. A variety of factors pushed the white metal’s price higher during the second quarter, allowing it to break the US$30 per ounce mark for the first time since 2012.
According to the Silver Institute, demand for silver is set to outstrip mine supply for the third year in a row, due in part to rising consumption from sectors dependent on the energy transition, including photovoltaics and electric vehicles.
India in particular has seen demand soar after introducing regulations for domestic production for new solar projects; that led the country to import more silver in the first four months of the year than all of 2023.
How has silver’s price movement benefited Canadian silver stocks on the TSX and TSXV? The five companies listed below have seen the best performances since the start of the year. Data was gathered using TradingView’s stock screener on August 26, 2024, and all companies listed had market caps over C$10 million at that time.
1. Defiance Silver (TSXV:DEF)
Year-to-date gain: 120.83 percent; market cap: C$71.35 million; share price: C$0.265
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 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 year-to-date high of C$0.425 on May 15.
2. GR Silver Mining (TSXV:GRSL)
Year-to-date gain: 118.75 percent; market cap: C$55.02 million; share price: C$0.175
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 underground 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.
3. Gatos Silver (TSX:GATO)
Year-to-date gain: 99.07 percent; market cap: C$1.22 billion; share price: C$17.06
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, with guidance 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 said it 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 July 23, when Gatos reported continued results from the South East Deeps zone extension drilling alongside an update on regional exploration programs. In the announcement, the company provided a highlighted assay of 214 g/t silver over 3.5 meters.
Results from its ongoing drilling at the Portigueño target included a highlight of 49 g/t silver over 1.6 meters, while results from two holes testing the depth of the San Luis target produced a highlighted intercept more than 150 meters below surface of 66 g/t silver over 8.9 meters, which included 111 g/t silver over 2.5 meters.
In an update on August 6, Gatos reported that silver production through the first six months of 2024 was 4.67 million ounces, up from 4.43 million ounces from the same period in 2023. The company also said it remained on track to achieve 2024 production and cost guidance.
Shares of Gatos reached a year-to-date high of C$19.29 on July 15.
4. Avino Silver and Gold Mines (TSX:ASM)
Year-to-date gain: 95.77 percent; market cap: C$185.09 million; share price: C$1.39
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.
The Avino mine is capable of processing 2,500 MT of ore per day ore, and in 2023 produced 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 period.
In addition to its Avino 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 its Q2 2024 results released on August 13, Avino reported that it had generated record quarterly revenues of C$14.8 million during the second quarter, an increase of 60 percent over the same quarter in 2023. Additionally, the company said it had produced 543,589 ounces of silver through the first half of the year, a 16 percent increase from the 466,755 ounces of silver in the six months of 2023.
Avino’s share price marked a year-to-date high of C$1.51 on May 26.
5. Endeavour Silver (TSX:EDR)
Year-to-date gain: 67.68 percent; market cap: C$1.09 billion; share price: C$4.41
Endeavour Silver is a silver company with two operating silver-gold mines in Mexico — Guanaceví and Bolañitos — plus 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 Terronera came on July 24, when the company announced that construction at the site had progressed, with surface construction achieving 77 percent completion. The company said the upper platform was progressing and should be ready for dry commissioning during Q3 2024 and that it was concentrating on the lower platform with final earthworks and concrete pouring also during the third quarter.
In an update on August 19, Endeavour reported that processing at its Guanacevi mine site had resumed following a failure that occurred at the primary ball mill trunnion on August 12. However, the company noted that processing would be less than half of its 1,200 metric ton per day capacity during a ramp up with temporary modifications. Permanent repairs to return to regular capacity are expected to take 16 weeks for fabrication and installation.
The company said that silver production for the year is estimated to decrease by 900,000 to 1.1 million ounces and has recalculated its 2024 guidance to 4.4 to 4.6 million ounces.
Shares of Endeavour reached a year-to-date high of C$6.80 on July 15.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
