The silver market has been on fire this year and silver penny stocks are reaping the benefits as investments pour into the sector. Since the beginning of 2020, silver prices have increased over 50% and hit 7-year highs, but some analysts see the price going higher still.
CIBC just set its silver price target to $32 per ounces for 2021 and sees the price of silver hovering around the $28 mark in the fourth quarter, citing continued low real interest rates, growing government debt, and the upcoming US election as catalysts for price movement.
The economic uncertainty has already sent investors flocking to the gold and silver markets, with Eric Sprott and other precious metals’ enthusiasts making big bets on silver stocks.
If you haven’t gotten in on the silver bull run yet, here are three glittery silver penny stocks to watch this month that could be the perfect addition to your portfolio.
Glittery Silver Penny Stocks to Watch: Endeavour Silver Corp. (NYSE:EXK) (TSX:EDR)
First on the list of glittery silver penny stocks is Endeavour Silver Corp., a mid-tier mining company with three high-grade silver-gold mines in Mexico.
Although Endeavour Silver faced a minor setback in its production during the second quarter due to mandatory mine suspensions throughout Mexico, the company managed to bounce back quickly.
On August 4, Endeavour Silver Corp. reported its Q2 2020 financial results, which included a net revenue of $20.2 million from the sale of 634,839 ounces of silver and 5,218 oz of gold at average realized prices of $17.04 per oz silver and $1,862 per oz gold. The company also finished the quarter with $1.9 million cash flow from operations, a cash position of $30.5 million and $44.6 million in working capital
“I am pleased to report that notwithstanding the suspension of mining operations during the 2nd quarter due to the COVID-19 pandemic, Endeavour was able to reduce its net loss quarter-on-quarter, as each mine generated positive Mine Free Cash Flow thanks to improved operating performance and higher precious metal prices,” said Endeavour Silver CEO Bradford Cooke. “After the mines restarted, we were able to outperform our adjusted mine plans in June. We are now looking for opportunities to enhance safe production in H2, 2020.”
Since the beginning of the year, Endeavour stock has increased by 77% from $2.41 to $4.27 on the NYSE, while the company’s TSX-listed stock is up 83% from C$3.08 to C$5.64. The company has a market cap of $664.8 million, with 154,988,000 shares issued.
Glittery Silver Penny Stocks to Watch: Defiance Silver Corp. (TSXV:DEF) (OTC:DNCVF)
Next on the list of glittery silver penny stocks is Defiance Silver Corp., a junior exploration company focused on advancing its district-scale San Acacio Deposit in the historic Zacatecas Silver District and its 100% owned Tepal gold-copper project in Mexico.
On Wednesday, Defiance announced the closing of a brokered private placement for gross proceeds of C$10 million, which the company plans to use to begin an aggressive exploration program at its Zacatecas projects and for general working capital purposes.
The drill program will focus on a 1.3km by 300m corridor where a hanging wall mineralizing event has been identified, deep targets along strike of the Veta Grande to the immediate southeast and “El Mirador,” part of a multi-kilometer felsic fault structure (La Veta Morada) with visible silver sulfides.
Defiance Silver’s share price is up 158% since the beginning of 2020, increasing from C$0.24 up to C$0.62 and is up 134% on the OTC at $0.47. The company has a market cap of $74 million, with 152,693,000 shares issued.
Glittery Silver Penny Stocks to Watch: Aurcana Silver Corp. (TSXV:AUN)
Last but not least on the list of glittery silver penny stocks is Aurcana Silver Corp., a precious metals mining company focused on developing the Revenue-Virginius mine in Colorado and the Shafter silver project in Texas.
At the end of July, Aurcana closed the second and final tranche of a private placement for total gross proceeds of C$12.25 million, including an oversubscription of 30,000 units.
The company intends to use net proceeds of the private placement to continue to execute its corporate vision, which includes expanding mineral resources and reserves at the RV Mine by proving up extensions of strike length on established vein systems, extending the life of the mine, establishing the optimal strategic and technical path at the Shafter Project to maximize shareholder value, and seeking merger and acquisition opportunities.
Aurcana commenced a 7,000-foot diamond drilling program at the Revenue-Virginius mine in July, which will consist of 10 drill holes. The program will follow and explore the continuation of high-grade silver reserves and resources present on the Virginius vein, along its strike extension into the recently-acquired Blue Grass patented mining claim.
Since the beginning of 2020, Aurcana Silver’s share price has gone up from C$0.30 to C$0.99, which represents a 229% increase. The company has a market cap of C$237.3 million, with 228,910,152 shares issued.
Takeaway
It’s clear that the silver bull run is far from over and that there is still ample opportunity to get in before the price of silver goes even higher.
The aforementioned three silver penny stocks are a great place to start if you’re looking to add some shine to your portfolio, but this list is far from exhaustive. If you want to stay up on the hottest silver stocks on the market, subscribe to our mailing list so you don’t miss out.
Are there any silver penny stocks on your radar? Tell us about them in the comments!
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