Close menu




December 21st, 2020 | 08:53 CET

First Majestic Silver, Silver Viper Minerals, Endeavour Silver - Investing with foresight

  • Silver
Photo credits: Silver Viper Minerals

Compared to the popular crisis currency, gold, silver is somewhat neglected. Silver is in demand from a wide variety of sectors such as electromobility, solar and medical technology. Price increases of the precious metal are, therefore only a question of time. The world's largest silver producer is Mexico, with around 190 million ounces of silver annually. We present three companies that are profiting from Mexico's substantial silver deposits. Who has the greatest potential?

time to read: 2 minutes | Author: Carsten Mainitz
ISIN: CA8283341029 , CA32076V1031 , CA29258Y1034

Table of contents:


    First Majestic Silver - among the TOP 20 of the world's largest silver producers

    First Majestic's beginnings date back to 2004 when it acquired its first mine. Since then, the Company, founded by CEO Keith Neumeyer, has been a success story. The current stock market value of the Canadian Company is CAD 3.6 billion.

    Today, the Company operates three silver mines in Mexico - the San Dimas Silver & Gold Mine, the Santa Elena Silver & Gold Mine and the La Encantada Silver Mine. All three mines are 100% owned. The Company also owns an additional eight exploration and development projects in the silver sector. First Majestic's formula for success consists of several aspects. In particular, it is the acquisition of good assets (mines and non-producing projects) and their further development. Another point is process innovations, which increase the output of raw materials or reduce costs.

    The Company is already among the TOP 20 largest silver producers in the world. This year, First Majestic will produce about 23 million ounces of silver equivalent, a slight decrease from last year's figure due to Covid. Analysts, we think, give the stock a fairly moderate 15% potential upside. Higher silver prices and rising production next year should boost the share price significantly.

    Silver Viper Minerals - impressive news

    Silver Viper Minerals is focused on the exploration of gold & silver deposits in the state of Sonora, in northwestern Mexico. The Company is in a relatively early corporate stage. The core of its activities is the wholly-owned La Virginia Gold-Silver Project. In addition, Silver Viper has an option to acquire 100% of additional claims (Rubi-Esperanza).

    The previous owners of the property have drilled a total of 188 holes totalling 52,000 meters. Silver Viper has used this excellent data to define new targets and has had success in recent months with the discovery of the El Rubi zone, which hosts high-grade precious metals.

    Last week, the Canadians released impressive news with drill results confirming high silver & gold grades at the El Rubi Zone. Further drilling showed a southern extension of the mineralized zone, as well as the continuation of existing mineralization trends. Furthermore, the Company reported that test results should also indicate a high recovery rate of precious metals. First and foremost, new drill data and the advancement of the project will prove to be share price drivers. They will significantly increase the stock market value from the current level of around 30 million over the next year.

    Endeavour Silver - Sale of El Cubo Mine

    Endeavour Silver is a mid-tier silver and gold producer that owns three producing mines in Mexico. The Company intends to continue to increase production and develop mines from its non-producing projects.
    Nevertheless, the Company is also opportunistically taking advantage of opportunities. Last Friday, it reported the sale of the El Cubo mine to VanGold Mining Corp.

    The logic behind this transaction is that El Cubo is a good fit with VanGold Mining's asset the Pinguico, and in perspective, this could become a producing mine. Endeavour will receive cash and shares worth CAD 15 million. Under certain conditions, another CAD 3 million could be added. As a result of the transaction, Endeavour Silver will become VanGold's largest shareholder with 16%.

    Endeavour Silver is currently valued at just under CAD 900 million. Analysts see little upside potential at the current level, given the average price target of CAD 5.99.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may in the future hold shares or other financial instruments of the mentioned companies or will bet on rising or falling on rising or falling prices and therefore a conflict of interest may arise in the future. conflict of interest may arise in the future. The Relevant Persons reserve the shares or other financial instruments of the company at any time (hereinafter referred to as the company at any time (hereinafter referred to as a "Transaction"). "Transaction"). Transactions may under certain circumstances influence the respective price of the shares or other financial instruments of the of the Company.

    Furthermore, Apaton Finance GmbH reserves the right to enter into future relationships with the company or with third parties in relation to reports on the company. with regard to reports on the company, which are published within the scope of the Apaton Finance GmbH as well as in the social media, on partner sites or in e-mails, on partner sites or in e-mails. The above references to existing conflicts of interest apply apply to all types and forms of publication used by Apaton Finance GmbH uses for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and etc. on news.financial. These contents serve information for readers and does not constitute a call to action or recommendations, neither explicitly nor implicitly. implicitly, they are to be understood as an assurance of possible price be understood. The contents do not replace individual professional investment advice and do not constitute an offer to sell the share(s) offer to sell the share(s) or other financial instrument(s) in question, nor is it an nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but rather financial analysis, but rather journalistic or advertising texts. Readers or users who make investment decisions or carry out transactions on the basis decisions or transactions on the basis of the information provided here act completely at their own risk. There is no contractual relationship between between Apaton Finance GmbH and its readers or the users of its offers. users of its offers, as our information only refers to the company and not to the company, but not to the investment decision of the reader or user. or user.

    The acquisition of financial instruments entails high risks that can lead to the total loss of the capital invested. The information published by Apaton Finance GmbH and its authors are based on careful research on careful research, nevertheless no liability for financial losses financial losses or a content guarantee for topicality, correctness, adequacy and completeness of the contents offered here. contents offered here. Please also note our Terms of use.


    Der Autor

    Carsten Mainitz

    The native Rhineland-Palatinate has been a passionate market participant for more than 25 years. After studying business administration in Mannheim, he worked as a journalist, in equity sales and many years in equity research.

    About the author



    Related comments:

    Commented by Fabian Lorenz on May 9th, 2024 | 08:00 CEST

    Stocks facing revaluation! Nel ASA, Bayer, Power Nickel with potential

    • Mining
    • Gold
    • Silver
    • Nickel
    • Pharma
    • renewableenergies

    Relief for Bayer. In the US, the Company has won a victory in the dispute over compensation for illnesses caused by the chemical PCB. Is it groundbreaking and the start of a revaluation of the share? A revaluation already seems to be underway at Power Nickel. Following sensational drilling results, the share price soared. Surprisingly, gold, silver and copper were also found. Against this backdrop, the share appears to be favorably valued. Does this also apply to Nel? After all, the share price has risen by around 20% in just a few weeks. Is there new hope for the hydrogen pioneer? Or are today's figures from industry peer Plug Power threatening a new sell-off?

    Read

    Commented by Stefan Feulner on May 6th, 2024 | 07:00 CEST

    Canopy Growth, Globex Mining and Rock Tech Lithium with strong signals

    • Mining
    • Gold
    • Silver
    • Cannabis
    • Lithium

    Now that the precious metals gold and silver are taking a breather after a rally, other markets are becoming the focus of investor interest. In addition to copper, which is likely to reach new highs in the medium term due to supply shortages, lithium, an industrial metal essential for electromobility, continues to work on bottoming out. However, the highlight of the past week in terms of volatility was cannabis stocks, which are expected to remain in focus in the coming weeks.

    Read

    Commented by Stefan Feulner on April 22nd, 2024 | 07:30 CEST

    After Gold and Silver: Nickel on the Move! Kinross Gold, Power Nickel, Royal Gold

    • Mining
    • Gold
    • Silver
    • Nickel

    The geopolitical uncertainties with the escalation between Iran and Israel helped precious metals to further price surges. Despite being technically overbought, gold was able to hold its ground near the USD 2,400 per ounce mark, while silver closed the week with a further gain of around 3%. In the shadow of this, industrial metals are moving into the spotlight after a weak overall year in 2023. Alongside copper, nickel, an important raw material for many low-carbon technologies, has established a solid base in recent months.

    Read