Over the last few weeks, I’ve been pounding on the table that gold and silver are about to enjoy some renewed buying interest and that, as a result, the related miners will enjoy a respite after gold and silver stocks were beaten down so severely in 2013.
In fact, the precious metals mining stocks are one of the only areas left in this market that offer a modicum of value after the Market Vectors Gold Miners (GDX) lost 69% of its value from its high in 2011 to a low in December. Silver stocks suffered similarly.
While the underlying metals are ever-so-slowly recovering, with both gold and silver ETFs pushing away from their 50-day moving averages Friday, the mining stocks are taking flight in a much bigger away. Previous recommendations to my Edge Letter Sample Portfolio include Tower Hill Mines (THM), up 41% since I recommended it on Jan. 2.
Here are three more silver stocks on the move:
Silver Stocks to Buy #1: Endeavour Silver (EXK)
Click to Enlarge Shares of Endeavour Silver (EXK), a decently sized U.S.-listed silver miner, are pushing up and over their 200-day moving average for the first time since September 2012. EXK stock has been consolidating since mid-2012, after plunging a whopping 78% from a high in September 2011.
The company, which has operations in Mexico and Chile, raised its fiscal 2013 production guidance back in September to 6 million ounces of silver, up 20% from previous guidance.
Silver Stocks to Buy #2: Fortuna Silver Mines (FSM)
Click to Enlarge Fortuna Silver Mines (FSM), like Endeavour, is also rushing its 200-day moving average with great momentum and volume. FSM stock lost two-thirds of its value peak-to-trough, but is now on the mend.
Fortuna Silver operates in southern Peru as well as in Mexico. The company was able to maintain profitability this year, in what was a tough period for the entire industry, and is looking to nearly double earnings to 14 cents per share in 2014.
Fortuna reported record 2013 silver equivalent production of 5.9 million ounces, and expects to produce 30% more than this in 2014. The 2013 silver production was a 16% increase over 2012 results.
Silver Stocks to Buy #3: SilverCrest Mines (SVLC)
Click to Enlarge SilverCrest Mines (SVLC) is a smaller operator, with a 209 million market cap, that operates in Mexico and Central America. The company’s primary focus is its Santa Elena Project in Sonora State, Mexico.
SilverCrest, like Fortuna, maintained profitability in mid-2013 in tough market conditions, and is on track to report earnings of 12 cents per share for the full year with 21 cents expected in 2014.
The company reported solid Q4 and full-year production numbers as the digging at the Santa Elena Project goes deeper, reflecting higher-quality ore veins at depth.
That bodes well for the future, especially with silver bullion prices on the mend, as SVLC transitions from open-pit to underground mining.
As of this writing, Anthony has recommended THM to his clients.